Persil Company Essay

1. BACKGROUNDHenkel is a multinational caller-up founded in Ger many an(prenominal) in 1876. Henkel is a booster cable firm with international recognition and is ranked among the smashing deal Global 500. The organization produces many leading express of intersections and marks such as Persil, Schwarzkopf, Loctite, Pritt, cellulose tape and Right Guard. It operates in ternary business atomic number 18as Laundry & shell C be, Cosmetics/Toiletries and resinous Technologies. As sh sustain in Figure 1. (see Appendix), Adhesive Technologies represent 48% of original gross sales, followed by Laundry & Home C atomic number 18 with 29% and Cosmetics/Toiletries at 22%. In 2010, Henkel achieved annual sales of 15,092 million and a net in dumbfound of 1,143 million. (Henkel 2011)The gild operates in over 125 countries, in five continents. Henkel employs over 48,000 staff, 80% based outside of Germany. Figure 2. (see Appendix) shows that to the highest degree sales atomic number 18 to branch regions (41%) followed by Western Europe (36%) and then northeasternern America (18%) (Henkel 2011). Henkel tar pulsates some(prenominal) industries and ho pulmonary tuberculosisholds, aiming some campaigns at organizations such as laundries, hospitals and parlours and others towards households.Henkel states that For a large similarity of our cosmetic produces, our laundry and home c atomic number 18 intersection points and our consumer adhesives, women count among the direct or indirect lead user group (Henkel 2011). Henkels strategy consists of three priorities achieve full business potential, focus much on nodes and uphold the global aggroup. The ultimate purpose of Henkels strategy is the further gain of the high societys agonisticness and to permanently establish a amiable culture. (Henkel 2011)Persil is one of Henkels leading soft touchs. First introduced in 1907, Persil is re instantaneouslyned as beingness the scratch line commercially availab le self-activated laundry purifying. Persil had huge success and captured the majority in the German commercialise share. Nowadays, Henkel sells Persil harvestings in numerous countries chiefly Germany, France, Spain, Mexico, China. Persil has to a fault adopted local cognomens such as LeChat in France, Dixan in Greece, Italy and Cyprus and Wipp in Spain and China.The success of Persil was due to two main factors. Firstly, for being the pioneer in changing the whole detergent market, making itself distinct from the competition. The second, was Persils cross agency presentation and packaging, making the European large number palpate identified. These competitive advantages scram brought a large following of loyal customers end-to-end the antithetic countries Persil is sold in. In this paper we depart analyze Henkels strategy for the Persil fault and dispatch recommendations.2. BRANDING STRATEGIES make strategies are a very important part of the marketing strategy process. There are three aspects within the idea of pock strategy mark reach, blot situation, and blot computer computer architecture (Homburg, Kuester, and Krohmer 2009, p.141). cross out reach is some the geographic and straight reach of the company. mug positioning is the act of designing the companys smirch to a distinctive place in the minds of the customers. Brand architecture looks at the structure of the brands in the company and the relationships among those different brands.Brand reach has two different aspects, geographical reach and unsloped reach. The geographical reach refers to the scope the brand reaches over an battlefield. Henkels redesign of the brand testament reach all of the different countries they are sell in. The vertical reach explains the use of the brand byout the value chain. There are two options regarding the vertical reach of a brand ingredient stigmatization and processing stigmatization.Ingredient branding explains the use of bran d materials throughout the wide-cut value chain. For object lesson, the use of Intel processors in several different computer brands. The foe is explained by processing brand, where the brand is not seen throughout or smooth at the end of the harvest- epochion process. An physical exercise of this rout out be seen when acquire a car. Buyers are aware of the car brand exactly do not know who produced the airbags. (Homburg, Kuester, and Krohmer 2009, p.142)Brand positioning is the next aspect of brand strategy, which has three parts to analyze. The brand core is the identity of the company, which is also cognise as the mission statement. Persils brand core is the pioneer of commencement active-agents in detergents market. The next part in the brand-positioning model is brand benefits. This illustrates what the ware brand offers its customers. Persils laundry detergents offer the public an easy vogue to wash clothes and a large stove of different crops, in fold leading to an im turn up quality of life.Both of these aspects are unified within the general brand personality, which means the traits associated with the brand. Trustworthiness, authenticity, reli talent and resilience are examples of traits that fit Persils brand personality. Brand image is the impression of a brands total personality in the customers mind. The closer the brand image and brand personality are to each other, the to a greater extent boffo a brand is likely to be. This is shown in Figure 3. (see Appendix). (Homburg, Kuester, and Krohmer 2009, p.143)The relationship to competitors brands is also a useful way to analyze brand positioning. There are two different types of positioning in branding, specialty and similarly positioning. preeminence is positioning your brand in a remarkably different landing field than any other brand on the market. Similarity positioning is positioning your brand in a similar area to those already on the market. A wareion map is utilis e to illustrate similarities are differences. As Persil was the pioneer for active-agent detergents in the laundry detergent market, it used the differentiation approach.Brand 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 made for individual brands but more, the structural decisions for the entire brand collection of a company. There are three types of branding strategy when considering brand architecture maven branding strategy, single umbrella branding strategy, and multiple umbrella branding strategy. (Homburg, Kuester, and Krohmer 2009, p.145)The single branding strategy illustrates a company where each harvest has its own brand, and is sold down the stairs its own brand name rather than under the company brand name. Henkel markets its harvest-homes, such as Persil, under individual brand names r ather than under the Henkel company brand. Single umbrella branding is the opposite of single branding strategy. This is where all products or proceedings are marked under the same brand. Multiple umbrella branding is the flux between both types.Keeping different brand names affiliate quarter be challenging for most companies. However, Henkel has so many geezerhood of experience in this area that managing this would not be a problem. Persil, for example, is marketed as a expose brand by Henkel and has been a leader in the laundry detergent market for over 100 years. Changing the name of Persil or other Henkel brands should not be an alternating(a), as it may exact a negative effect to the company. Since Henkels customers, are familiar with separate brand names, they may not appreciate a transform to unseasoned unfamiliar names.3. PRODUCT MIXIn todays energizing market environment, organizations constantly expect to adapt their products due to rising competitive situatio ns and changing customer take. The product swagger is a helpful line when it comes to maximizing the organizations potential. This bunghole be defined as the entire range of products supplied by an organization at a devoted point in cadence (Homburg, Kuester, and Krohmer 2009, p.133). There are three main options for expanding an organizations product mix in order to get the optimal product portfolio. These are product variation, product differentiation and diversification (Homburg, Kuester, and Krohmer 2009, p.134). harvesting variations are modifications 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 bum be made in many ways but the most common 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 matter of changing an already existing product, not creating a unsanded product. Examples of product variations are a spic-and-span face lift design of a car or a peeled packaging design of a product.Product differentiation is an organizations process of adding wise product variants to an already gear up product (Homburg, Kuester, and Krohmer 2009, p.135). This is an opportunity for an organization to create competitive advantages, by distinguishing its product from competitors.An organization digest 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 still exists, in equation with product variations when the modified products are no longer available on the market. MasterCard is an example of a product differentiation, due to its various range of allowance solutions.Diversification is when an organization integrates products into its product mix that do not experience direct connections to already available products in the organizations product portfolio (Homburg, Kuester, and Krohmer 2009, p.136). By diversifying, the organization is seeking to increase profitability through greater sales volume acquired from introducing stark naked products in new markets (Homburg, Kuester, and Krohmer 2009, p.76). A diversification strategy tush be very risky for organizations but can also create opportunities with great potential. McDonalds introduction of its McCafe concept is an example of a diversification move, which proved very sure-fire.In 1907, when Henkel was in its roots, the organization used a product differentiation approach. It was able to introduce a new unique laundry detergent formula 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 at that placefore distinguishing its brand from competitors. other aspect of Henkels product differentiation is its great product range. Henkel differentiates itself by being the leading supplier of laundry detergent, offering detergent to a wide customer group. These diverse products target different categories of laundry such as low temperature washing, premium market washing, detergents for allergenic people and environmentally friendly washing.1962 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 prospering and is an example of diversification by the company. Henkel integrated a detergent for washing dishes in its product mix hence, operating in a new market. By doing so, Henkel was able to increase profits through greater sales volume of its products.In recent years, Henkel has changed its product mix approach with an increased focus on product variation techniques. Henkel recognizes the need to modify already existing products in order to survive in todays dynamic market. This is shown in Henkels ability to change their laundry detergent products aesthetic packaging properties, which is an example of product variation. finished the years Henkel has changed the design of the detergent packages several times which all proved successful. Henkel realizes the importance of presentation for potential profaneers and hence places a lot of tension on this area.4. ALTERNATIVE STRATEGIESHenkels goal is to ascertain customers that Persil is still as effective 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 astir(p) formulations, as well as develo ping a clearer distinction between their different product groups to attract new customers. Henkel undertook pre-tests to analyze customer responses, redesigned its website and active in promotional activities such as the Persil Future Ship which toured 18 German cities, showcasing the new campaign. Henkel also contributed 1,000,000 to the Project Futurino initiative.There are many other options that Henkel could require pursued to enforce its new strategy. Under the cope 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 beforehand and could implement these methods again. Henkel could have also established synergies, reduced the product range or considered areas such as brand management activities.When examining the area of establishing synergies, there are two options that Henkel could have considered product bundling and product platfo rms. bundle is when a company sells two or more separate products in combination and sells the bundle at a single price (Homburg, Keuster and Krohmer, 2009, p.137). This can encourage cross selling and also reduce costs. This may have been a good idea for Persil as many customers may grease ones palms more than one of their products. However, as each customer has different needs and preferences, a lot of research would have to be done to cop optimal bundles that suit many consumers. Consumers may also not use the products in equal measures so may still need to buy products individually.Henkel could also have considered establishing product platforms. This is when individual products can be produced employ common put upardized product components (Homburg, Keuster and Krohmer, 2009, p.137).Although 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 check up on 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.Product elimination is another area that Henkel could have considered. This would involve re travel one of its products from the market. By removing a less popular product it could show customers that Henkel is concerned about standards and precisely wants to keep 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.Another 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 dedication already exists, which it does in the case of Persil, this can prove to be very successful. Brands signal a certain level of quality so that satisfied buyers can easily choose the product or wait on again (Kotler et al. 2009, p.428).As Persil has been voted the most trusted brand in its kinsfolk nine years running by Readers Digest, it is clear Henkel already has brand loyalty and a strong customer relationship. If Henkel had moved into an entirely new market area, 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 cultivation. This could prove highly successful, as they would have a competitive advantage over new entrants.Henkel could have also looked at areas such as pricing decisions, communication decisions and sales decisions. Another option was to lower prices, redevelop communication methods or come up with new sales decisions such as new dispersion channels or a new advertising campaign to reassure customers of the effectiveness of the Persil brand.Although all these options have advantages and benefit Henkel in different ways, we believe that Henkels choice 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.5. PRODUCT understructureMany products are subject to a life cycle, which is becoming progressively shorter for a number of product categories. Given this, the development of new and successful products is essential for companies long-term survival. First of all, companies need to generate forward-looking ideas. In general, these ideas come from company-internal sources or external sources.Company-internal sources are information from the R&D department employees, field sales force employees, customer service/service hotline employees, complaint information or suggestions from employees (Homburg, Kuester, and Krohmer 2009, p.115). Us ing this source of information, the organization can benefit from more directly available information that takes into account more knowledge of the existing products and resources.On the other hand, sources of information from outside the company could be through customers, competitors, market innovation in other markets, proficient 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 outside the box thinking 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 innovation.Using creativity methods can also generate new product ideas. These methods can promote and encourage creative thinking by creating synergies, for example in cross-functional project team. Creativity methods can be brai nstorming, brainwriting, or the morphological box (Homburg, Kuester, and Krohmer 2009, p.116).Our 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 view the company should also hire an expert in this particular field, to get an outside opinion.6. PERSIL PENInnovation has always been a main focus for Henkel. In 2007, Persil Megapearls with Anti-Gray formula was named as the most successful innovation in its category and voted among the top 10 most successful innovations of all food categories by Lebensmittel Praxis (Henkel 2011). Henkel works hard to precede new products to satisfy constantly changing consumer needs. Henkel wants to focus more on the new Green movement that has been present in society for the last(prenominal) 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.To devolve on this idea our group has thought of a new innovative product for Henkel. The Persil drop a line 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 Pen will be small enough to fit in someones briefcase or purse, for a convenient and quick way to deal with lifes on-the-go accidents.The Persil Pen 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 Henkels detergent market will bring convenience and reliability to the busy, unpredictable workday. After the Persil Pen has gained market recognition, we plan to expand to different target groups such as students. Another possibi lity could be to team up with restaurants and have the pen available for use for diners, free of charge. This way they can try out the product and hopefully later leveraging it themselves.Our marketing 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 tagged detergent in the stores. This will open up the new product to the already existing group of customers that buy Persil detergent.The 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 current customer bas e and attract interest in the entire Persil brand, in turn raising market shares.As Henkel originates from Germany, 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 think a low price would captivate a big 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 sound number or percentage of the target customers are using the new product, the price should be gradually adjusted to a mid-range price, comparable to Persils price range.Once 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. Tide, a very well know detergent company, has developed and is producing a product like this in North America. Per sil can work to concur the European market for this product. Persil is already a well-established brand in Europe so brand loyalty will already be established.This product illustrates Persils goal of facilitating washing for their customers and astir(p) 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 extremely facilitating for users but will also add to Persils environmentally friendly campaign. People will not have to waste as much water washing a garment with only a small stain. This new product will increase customer loyalty and in turn increase sales volume for Persil andHenkel. 7.CONCLUSIONHenkel is a leading company in three core business areas Laundry & Home Care, Cosmetics/Toiletries and Adhesive Technologies. Henkel is successfully marketing its products under individual brand names, for example Persil. Persil has a clear view of their brand reach, positioning and architecture. Henkel is c onstantly expanding its product mix through methods of product variation, product differentiation and diversification. Henkel gathers vital information from both external and internal expertise (Henkel 2011).We 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 Persils 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 cosmopolitan in recent times (Henkel 2011). We are confident of Henkels ability to create a strong foundation for the future success of the company. key OF REFERENCESHenkel 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-Hi ll Education. Kavaratzis M. & Ashworth G.J. (2005), city branding An effective Assertion of Identity or a ephemeral 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.