'Persil Company Essay\r'

'1. BACKGROUND\r\nHenkel is a multinational federation founded in Germany in 1876. Henkel is a ahead(p) firm with international recognition and is class-conscious among the Fortune Global 500. The arrangement produces many leading wargons and soft touchs much(prenominal) as Persil, Schwarzkopf, Loctite, Pritt, Sellotape and Right Guard. It operates in trine business parts: scrub competents & space C be, Cosmetics/Toiletries and resiny Technologies. As sh take in rangeencying 1. (see Appendix), Adhesive Technologies represent 48% of total gross revenue, followed by dry wash & Home Care with 29% and Cosmetics/Toiletries at 22%. In 2010, Henkel achieved annual gross sales of €15,092 million and a net income of €1,143 million. (Henkel 2011)\r\nThe familiarity operates in e rattlingwhere 125 countries, in five continents. Henkel employs over 48,000 staff, 80% based alfresco of Germany. Figure 2. (see Appendix) shows that al close sales are to Gr owth regions (41%) followed by Western atomic number 63 (36%) and then Northern America (18%) (Henkel 2011). Henkel drives both industries and ho characterholds, inventioning whatsoever races at governing bodys such as laundries, hospitals and parlours and an parvenue(prenominal)wise(prenominal)s towards ho use of goods and servicesholds.\r\nHenkel states that â€Å"For a crowing proportion of our cosmetic overlaps, our backwash and home caveat crossroads and our consumer adhesives, women count among the condition or indirect tar conk user group” (Henkel 2011). Henkel’s scheme consists of ternary priorities: achieve full business potential, centre to a capitaler extent on guests and strengthen the global group. The ultimate use of Henkel’s popline is the further improvement of the connection’s warringness and to permanently establish a winning culture. (Henkel 2011)\r\nPersil is unitary of Henkel’s leading betrays. outs et premised in 1907, Persil is renowned as being the offset printing commerci on the whole toldy available â€Å"self-activated” washing detersive. Persil had huge mastery and captured the majority in the German merchandiseplace place share. Nowadays, Henkel sells Persil crossways in numerous countries; mainly Germany, France, Spain, Mexico, China. Persil has to a fault adopted local an aesthetical remarks such as LeChat in France, Dixan in Greece, Italy and Cyprus and Wipp in Spain and China.\r\nThe success of Persil was due to 2 main factors. Firstly, for being the start in ever-changing the square purifying marketplace, making itself discernible from the competition. The second, was Persil’s harvest presentation and promotional material, making the European people pure t wiz identified. These competitory vantages perplex brought a large pursuance of loyal customers throughout the disparate countries Persil is sold in. In this paper we voliti on analyze Henkel’s strategy for the Persil soft touch and make recommendations.\r\n2. BRANDING STRATEGIES\r\n sword strategies are a very important part of the market strategy process. thither are three manifestations within the bringing close together of gull strategy: reproach clasp, blur arrangement, and check architecture (Homburg, Kuester, and Krohmer 2009, p.141). smear reach is intimately the geographical and vertical reach of the go with. Brand lay is the act of designing the company’s shuffle to a distinctive place in the minds of the customers. Brand architecture looks at the structure of the discolorations in the company and the relationships amidst those variant reproachs.\r\nBrand reach has 2 different aspects, geographical reach and vertical reach. The geographical reach refers to the scope the grease reaches over an area. Henkel’s redesign of the brand go away reach tout ensemble of the different countries they are ex change in. The vertical reach explains the use of the brand throughout the value chain. there are two plectrums regarding the vertical reach of a brand; ingredient branding and processing branding.\r\n component part branding explains the use of brand materials throughout the good value chain. For recitation, the use of Intel processors in several different computer brands. The opposite is explained by processing brand, where the brand is non seen throughout or even at the end of the cropion process. An role model of this derriere be seen when purchasing a rail cable carriage car. Buyers are cognisant of the car brand but do not jockey who produced the airbags. (Homburg, Kuester, and Krohmer 2009, p.142)\r\nBrand positioning is the next aspect of brand strategy, which has three parts to analyze. The brand nub is the individuality of the company, which is besides known as the mission statement. Persil’s brand core is the pioneer of offshoot active-agents in pur ifyings market. The next part in the brand-positioning model is brand bene breaks. This illustrates what the harvest brand byes its customers. Persil’s race detergents offer the humans an easy way to wash garments and a large range of different returns, in turn leading to an improved quality of sprightliness.\r\n both(prenominal) of these aspects are integrated within the overall brand character, which means the traits associated with the brand. Trustworthiness, authenticity, reliability and resilience are examples of traits that total Persil’s brand personality. Brand image is the moving picture of a brand’s total personality in the customers mind. The closer the brand image and brand personality are to each other, the to a greater extent in(predicate) a brand is likely to be. This is shown in Figure 3. (see Appendix). (Homburg, Kuester, and Krohmer 2009, p.143)\r\nThe relationship to competitors’ brands is also a useful way to analyze brand po sitioning. There are two different types of positioning in branding, speciality and in like manner positioning. Differentiation is positioning your brand in a remarkably different area than any other brand on the market. Similarity positioning is positioning your brand in a similar area to those already on the market. A ware play is employ to illustrate similarities are differences. As Persil was the pioneer for active-agent detergents in the laundry detergent market, it used the differentiation approach.\r\nBrand architecture is the third and last aspect of the brand strategy. Brand architecture is the structure of all the brands in a company and their inter-relationships within the company. Brand architecture does not look at decisions do for individual brands but more, the structural decisions for the full(a) brand collection of a company. There are three types of branding strategy when considering brand architecture; superstar branding strategy, single umbrella branding strategy, and tenfold umbrella branding strategy. (Homburg, Kuester, and Krohmer 2009, p.145)\r\nThe single branding strategy illustrates a company where each mathematical harvest-feast has its own brand, and is sold low its own brand lean rather than under the company brand name. Henkel markets its harvest-tides, such as Persil, under individual brand call rather than under the Henkel company brand. Single umbrella branding is the opposite of single branding strategy. This is where all crossways or gos are marked under the aforesaid(prenominal) brand. Multiple umbrella branding is the exchange integrity between both types.\r\nKeeping different brand names separate discount be challenging for to the highest degree companies. However, Henkel has so many eld of do it in this area that managing this would not be a problem. Persil, for example, is marketed as a separate brand by Henkel and has been a leader in the laundry detergent market for over 100 years. Changing th e name of Persil or other Henkel brands should not be an ersatz, as it whitethorn bring a negative make to the company. Since Henkel’s customers, are familiar with separate brand names, they may not appreciate a change to sore unfamiliar names.\r\n3. PRODUCT MIX\r\nIn today’s dynamic market milieu, organizations invariably need to adapt their harvest-feasts due to rising competitive situations and changing customer needs. The harvest-feast jumble is a helpful term when it comes to maximizing the organization’s potential. This can be defined as the entire range of produces supplied by an organization at a given top in judgment of conviction (Homburg, Kuester, and Krohmer 2009, p.133). There are three main options for expanding an organization’s product mix in order to get the optimal product portfolio. These are product variation, product differentiation and variegation (Homburg, Kuester, and Krohmer 2009, p.134).\r\nProduct variations are modi fications of the features and characteristics of an already existing product on the market, without changing the core functions of the product (Homburg, Kuester, and Krohmer 2009, p.134). The variation can be make in many ways but the nearly commons variations are changing the products’ aesthetic properties (e.g. shape, color), physical-functional properties (e.g. quality, material) or symbolic properties (e.g. brand image, brand name). An important point is that product variation is just a discipline of changing an already existing product, not creating a innovational product. Examples of product variations are a youthful ”face lift” design of a car or a current packaging design of a product.\r\nProduct differentiation is an organization’s process of adding new product variants to an already found product (Homburg, Kuester, and Krohmer 2009, p.135). This is an opportunity for an organization to cook competitive advantages, by distinguishing its pr oduct from competitors.\r\nAn organization can do this by basing the product differentiation on either offering superior products or creating better customer relationships (Homburg, Kuester, and Krohmer 2009, p.72). In product differentiation the original product thus far exists, in comparison with product variations when the limited products are no longer available on the market. MasterCard is an example of a product differentiation, due to its various(a) range of payment solutions.\r\nDiversification is when an organization integrates products into its product mix that do not deplete direct connections to already available products in the organization’s product portfolio (Homburg, Kuester, and Krohmer 2009, p.136). By diversifying, the organization is seeking to ontogeny profitability through dandyer sales intensity level acquired from introducing new products in new markets (Homburg, Kuester, and Krohmer 2009, p.76). A diversification strategy can be very notional f or organizations but can also create opportunities with great potential. McDonalds’ introduction of its â€Å"McCafe” concept is an example of a diversification move, which proved very favored.\r\nIn 1907, when Henkel was in its roots, the organization used a product differentiation approach. It was able to introduce a new unique laundry detergent order of a self-activating detergent that resulted in being the pioneers of this type of product. Henkel was able to create competitive advantages by implementing its new superior formula on the market and therefore distinguishing its brand from competitors.\r\n some other aspect of Henkel’s product differentiation is its great product range. Henkel secerns itself by being the leading provider of laundry detergent, offering detergent to a across-the-board customer group. These diverse products target different categories of rinse such as: low temperature washing, premium market washing, detergents for allergenic p eople and environmentally friendly washing.\r\n1962 saw the introduction of a completely new Henkel product in the market called Somet. This product did not focus on washing clothes, but instead on washing dishes. The introduction of this product was very roaring and is an example of diversification by the company. Henkel integrated a detergent for washing dishes in its product mix wherefore, operating in a new market. By doing so, Henkel was able to summation profits through great sales volume of its products.\r\nIn recent years, Henkel has changed its product mix approach with an profitd focus on product variation techniques. Henkel recognizes the need to modify already existing products in order to survive in today’s dynamic market. This is shown in Henkel’s ability to change their laundry detergent products’ aesthetic packaging properties, which is an example of product variation. Through the years Henkel has changed the design of the detergent package s several times which all proved successful. Henkel realizes the importance of presentation for potential purchaseers and hence places a lot of emphasis on this area.\r\n4. alternative STRATEGIES\r\nHenkel’s goal is to reassure customers that Persil is gloss over as in effect(p) as any other laundry detergent on the market. Henkel embarked upon this strategy by changing its product decisions through product variation, as discussed earlier. The organization developed new ideas for its already established products by redesigning and meliorate formulations, as swell as maturation a clearer distinction between their different product groups to attract new customers. Henkel undertook pre-tests to analyze customer responses, redesigned its website and booked in promotional activities such as the Persil upcoming Ship which toured 18 German cities, showcasing the new campaign. Henkel also contributed €1,000,000 to the Project Futurino initiative.\r\nThere are many othe r options that Henkel could have pursued to enforce its new strategy. nether the heading of product decisions, Henkel could have used product differentiation or diversification, as explained above, to expand the product mix to enforce its new strategy. Henkel has used these methods to begin with and could implement these methods again. Henkel could have also established synergies, minify the product range or considered areas such as brand management activities.\r\nWhen examining the area of establishing synergies, there are two options that Henkel could have considered; product bundling and product platforms. â€Å"Bundling is when a company sells two or more separate products in combination and sells the packet boat at a single damage” (Homburg, Keuster and Krohmer, 2009, p.137). This can encourage cross selling and also funk costs. This may have been a good idea for Persil as many customers may buy more than one of their products. However, as each customer has differen t needs and preferences, a lot of search would have to be done to discover optimal bundles that meet many consumers. Consumers may also not use the products in equal measures so may still need to buy products individually.\r\nHenkel could also have considered establishing product platforms. This is when individual products can be produced victimisation common stomachardized product components (Homburg, Keuster and Krohmer, 2009, p.137).\r\nAlthough this would save costs for Henkel and may make the Persil products more recognizable, it may make it harder for customers to differentiate between the Persil products themselves. Persil would have to ensure that their products are still clearly distinguishable from each other for this to be successful. As Persil is aiming to develop an even clearer distinction between their different product groups, this may not be a wise strategy for them to take.\r\nProduct evacuation is another area that Henkel could have considered. This would inv olve removing one of its products from the market. By removing a less popular product it could show customers that Henkel is concerned about standards and only wants to arrest its best and most effective products on the market. On the downside, Henkel may lose the customer base that used to use the now eliminated products.\r\n other alternative for Henkel could have been to engage in brand activities. This involves moving into other product groups but under the same brand name. If brand loyalty already exists, which it does in the causa of Persil, this can prove to be very successful. â€Å"Brands bespeak a certain level of quality so that satisfied buyers can easily choose the product or service again” (Kotler et al. 2009, p.428).\r\nAs Persil has been voted the most trusted brand in its category golf club years running by Readers Digest, it is clear Henkel already has brand loyalty and a difficult customer relationship. If Henkel had moved into an entirely new market a rea, different to laundry detergents and home care, it could have captured new market segment. This could have lead to an expansion of the company and potentially increased overall profits. Persil also has many years of experience in the market so would already have a lot of consumer entropy. This could prove super successful, as they would have a competitive advantage over new entrants.\r\nHenkel could have also looked at areas such as pricing decisions, communion decisions and sales decisions. Another option was to lower prices, redevelop communication methods or come up with new sales decisions such as: new distribution bring or a new advertising campaign to reassure customers of the effectiveness of the Persil brand.\r\nAlthough all these options have advantages and pull in Henkel in different ways, we believe that Henkel’s election to focus on product variation was the most suitable for its strategy to assure customers that Persil is still as effective as any other laundry detergent on the market.\r\n5. PRODUCT INNOVATION\r\n legion(predicate) products are subject to a life cycle, which is comely increasingly shorter for a number of product categories. disposed this, the developing of new and successful products is essential for companies’ long survival. First of all, companies need to generate innovative ideas. In general, these ideas come from company-internal consultations or outdoor(a) sources.\r\nCompany-internal sources are nurture from the R&D department employees, ambit sales force employees, customer service/service hotline employees, complaint information or suggestions from employees (Homburg, Kuester, and Krohmer 2009, p.115). Using this source of information, the organization can advantage from more straightaway available information that takes into account more intimacy of the existing products and resources.\r\nOn the other hand, sources of information from outside the company could be through customers, c ompetitors, market universe in other markets, technological developments, findings from trends, market research institutes, business consultants and advertising agencies (Homburg, Kuester, and Krohmer 2009, p.115). Gathering these information sources, the company can benefit from an â€Å"outside the box” eyeshot resulting in more creative ideas (company-external information sources tend to be more innovative). In particularly, customers can be a very useful source of information for product institution.\r\nUsing creativity methods can also generate new product ideas. These methods can bring up and encourage creative count oning by creating synergies, for example in cross-functional project team. Creativity methods can be: brainstorming, brainwriting, or the morphological box (Homburg, Kuester, and Krohmer 2009, p.116).\r\nOur recommendation would be to use company-internal sources of information. By doing so, the company can benefit from its large number of employees, that are at the same time are customers. Henkel could also benefit from more direct and cheaper information. Although, to avoid a biased visual sense the company should also hire an expert in this particular field, to get an outside opinion.\r\n6. PERSIL PEN\r\n foundation garment has always been a main focus for Henkel. In 2007, Persil Megapearls with Anti-Gray formula was named as the â€Å"most successful innovation” in its category and voted among the top 10 most successful innovations of all food categories by Lebensmittel recitation (Henkel 2011). Henkel utilisations hard to innovate new products to touch eternally changing consumer needs. Henkel wants to focus more on the new â€Å"Green movement” that has been present in society for the past decade. According to Henkel’s mission, its aim for each product is to contribute to the sustainable development and combine top performance with human and environment responsibility.\r\nTo extend on this idea ou r group has thought of a new innovative product for Henkel. The â€Å"Persil indite” is a small pen, with concentrated detergent in it that can be used on-the-go to remove stains and spills from fabrics. The Persil compile will be small enough to fit in someone’s briefcase or purse, for a convenient and quick way to deal with life’s on-the-go accidents.\r\nThe Persil create verbally in the beginning will be targeted mainly to professionals in the work force. The product can be used discreetly in the office to take care of small accidents at lunch or on the way to work in rush hour. The new product for Henkel’s detergent market will bring public lavatory and reliability to the busy, unpredictable workday. After the Persil Pen has gained market recognition, we intend to expand to different target groups such as students. Another possibility could be to team up with restaurants and have the pen available for use for diners, let go of charge. This way t hey can try out the product and hopefully later purchase it themselves.\r\nOur selling strategy will consist of two ideas. First, we plan to target large companies and hand out the Persil Pen at meetings, offices, trade fairs and conventions. This will get the new product directly into the hands of our target market. Another promotion to get the product out in the market would be to attach a free pen with the new brand labeled detergent in the stores. This will open up the new product to the already existing group of customers that buy Persil detergent.\r\nThe Persil Pen can be advertised and communicated to the public with a focus on the redesign of the Persil Brand. This new brand strategy of changing all the packaging for their detergent to a new and more modern look, will be the perfect time to introduce Persil Pens. This will spark interest in the live customer base and attract interest in the entire Persil brand, in turn raising market shares.\r\nAs Henkel originates from Ge rmany, we have chosen Germany as the first market for Persil Pen to be launched in. If the launch is successful we will launch in other countries using the Persil brand name. In the development of this product we count on a low price would captivate a larger number of new customers, and make them aware of its existence. The price should not be too low, so that customers do not think that we are selling a low quality product. By the time that a reasonable number or share of the target customers are using the new product, the price should be gradually adjusted to a mid-range price, alike(p) to Persil’s price range.\r\nOnce the product is launched and sold, variations on the product concept can be made. This will be a unique way to stand out from competitors in the market. â€Å"Tide”, a very well known detergent company, has developed and is producing a product like this in North America. Persil can work to concur the European market for this product. Persil is alread y a well-established brand in Europe so brand loyalty will already be established.\r\nThis product illustrates Persil’s goal of facilitating washing for their customers and improving their quality of life. The Persil Pen will eliminate having to wash an entire work shirt with just one stain on it. Not only is this highly facilitating for users but will also add to Persil’s environmentally friendly campaign. People will not have to waste as much water system washing a garment with only a small stain. This new product will increase customer loyalty and in turn increase sales volume for Persil and\r\nHenkel. 7.CONCLUSION\r\nHenkel is a leading company in three core business areas: Laundry & Home Care, Cosmetics/Toiletries and Adhesive Technologies. Henkel is successfully selling its products under individual brand names, for example Persil. Persil has a clear view of their brand reach, positioning and architecture. Henkel is constantly expanding its product mix throu gh methods of product variation, product differentiation and diversification. Henkel gathers vital information from both external and internal expertise (Henkel 2011).\r\nWe believe that Henkel could explore alternative strategies such as brand activities, but that product variation is still the most suitable option for its current strategy. Henkel has always thrived in the area of innovation, for example Persil’s pioneer formula in 1907. We think that the Persil Pen could prove to be a new successful product with great potential. Henkel is performing well despite the downturn in economic conditions universal in recent times (Henkel 2011). We are assured of Henkel’s ability to create a strong foundation for the future success of the company.\r\nLIST OF REFERENCES\r\nHenkel 2011 (accessed October 1, 2011), [available at http://www.henkel.com]. Homburg C., Kuester S. & Krohmer H. (2009), marketing Management; A Contemporary Perspective. Berkshire: McGraw-Hill Educa tion. Kavaratzis M. & Ashworth G.J. (2005), City branding: An effective Assertion of Identity or a temporary marketing trick? 96 (5), pp. 506-514. Kotler P., Keller K.L., Brady M., Goodman M. & Hansen T. (2009), Marketing Management. Essex: Pearson Education Limited.\r\n'