KHLloreda
How would you assess the current situation of KH Lloreda? Why does the company have to expand internationally?
KH LLoreda has enjoyed great success in the Spanish market with their range of niche products.
They are the market leader in the degreaser and stain-remover product categories in the Spanish home care market. As of 2011, they had a sales turnover of over €44 million (a 33% increase on
2009 figures) with a net income of €930,000 (a drop of 60% from 2009). This drop in net income can be attributed to the long term vision of KH Lloreda with their increasing investments in the advertising and promotional budget.
KH Lloreda has a very flat organisational structure across 7 key management areas. They also have a unique culture focused on 4 corporate values (Teamwork, Work Well Done, Commitment and
Innovation). There is significant emphasis on teamwork and innovation. The chairman had also created an environment for all employees to come up with the new ideas driving future growth.
They had a wide range of household cleaning products. Two major products, the
KH-7 Degreaser and the
KH-7 Stain Remover, together accounted for over 80% of total corporate revenues in 2011.
They also had an unconventional marketing approach with significant budgets allocated for A&P purposes (37.8% of total revenues in 2011). KH Lloreda were highly efficient in purchasing, packaging and logistics etc to fund this marketing budget. A&P was focused on TV advert campaigns which were innovative, ground breaking and paradigm shifting. Although controversial due to their sexual overtones, the campaigns differentiated the KH-7 range and increased the brand awareness.
KH-7 brand equity was also boosted by strategic sponsorship of Catalan motorsports personalities.
They also reached an agreement with the HRT Formula 1 team which would further help in improving visibility in international markets.
Reasons to expand internationally:
Exports to other European countries accounted only for 1%
KH LLoreda has enjoyed great success in the Spanish market with their range of niche products.
They are the market leader in the degreaser and stain-remover product categories in the Spanish home care market. As of 2011, they had a sales turnover of over €44 million (a 33% increase on
2009 figures) with a net income of €930,000 (a drop of 60% from 2009). This drop in net income can be attributed to the long term vision of KH Lloreda with their increasing investments in the advertising and promotional budget.
KH Lloreda has a very flat organisational structure across 7 key management areas. They also have a unique culture focused on 4 corporate values (Teamwork, Work Well Done, Commitment and
Innovation). There is significant emphasis on teamwork and innovation. The chairman had also created an environment for all employees to come up with the new ideas driving future growth.
They had a wide range of household cleaning products. Two major products, the
KH-7 Degreaser and the
KH-7 Stain Remover, together accounted for over 80% of total corporate revenues in 2011.
They also had an unconventional marketing approach with significant budgets allocated for A&P purposes (37.8% of total revenues in 2011). KH Lloreda were highly efficient in purchasing, packaging and logistics etc to fund this marketing budget. A&P was focused on TV advert campaigns which were innovative, ground breaking and paradigm shifting. Although controversial due to their sexual overtones, the campaigns differentiated the KH-7 range and increased the brand awareness.
KH-7 brand equity was also boosted by strategic sponsorship of Catalan motorsports personalities.
They also reached an agreement with the HRT Formula 1 team which would further help in improving visibility in international markets.
Reasons to expand internationally:
Exports to other European countries accounted only for 1%