P R E S E N T
MM6016
Branding and Marketing Communication
ING AND D N A R B A UMBRELL TION DECISIONS ZA GLOBALI
29111311 Haidir Afesina 29111363 Wirania Swasty 29111384 Chairunnisa M. 29111387 F X Kresna Paska 29111398 Aqsa Adhiperwira 29111400 Fajar Liem
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FACTS
Henkel is a family business founded by Fritz Henkel in 1876 60% of sales is overseas (outside Germany) Product line divided by 8
Detergents and cleaning agents
Personal care and cosmetics
Household cares
Adhesives
Inorganic chemical
Foodstuffs
packaging
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Consumer Business Laundry & Home Care
Beauty Care
Industrial Business Adhesive Technologies
three Business Units show a strong ability to win in markets. To leverage full business potential of three Business Units, they made clear choices on what to do and what not to do on a category / regional level.
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FACTS
(ADHESIVES) by 1980 has 800 product lines Sales about DM 1.2 billion Adhesives make up 57% of sales
Industrial adhesives
Leather and Textiles auxiliaries
HD/BC (craftsmen, household, other)
STRATEGIC FRAMEWORK Vision Vision
Values Values
Strategy Strategy
A global leader in brands and technologies
Customers
Outperform
People
Financials
Globalize
Sustainability
Simplify
Family
Inspire
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CURRENT MARKETING PROBLEM Domestic
• Customer have no product knowledge small communication budget on low expenditure per capita item
International
• Heterogeneous market - Small market give low purchase frequency and deep segmentation in product line
Competition
• Face aggressive competition from Uhu, launched Uhu Greenit adhesive
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DOES UMBRELLA BRANDING MAKE SENSE FOR HOUSEHOLD ADHESIVES?
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UMBRELLA BRANDING “Developing an integrated strategy for the marketing of a variety of products under each of the brand names”.
UMBRELLA BRANDING FOR HENKEL
UMBRELLA BRANDING FOR HENKEL CONT’D
PRO
CONS
easy to identify the new brand under umbrella branding gives uniformity to all the brands through one designated approach of advertising, promotion, packing etc. very economical strategy the best way to enter into new segments or introduce a new product to market.
If one product under umbrella branding does not do well then it can affect the overall brand Different brands in umbrella branding will have different qualities if there is negative publicity it can affect the other brands under umbrella branding.
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DOES IT MAKE SENSE? Yes, it does! • Because Henkel own 80% of contact adhesive market in Germany • Pritt Brand own 40% of all purpose adhesive
Market leader
challenger
follower
niche
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EVALUATE THE UMBRELLA STRATEGY PROPOSED FOR PATTEX
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PATTEX BRAND Launched in 1956 held the “strength adhesive” positioning for the professional market Advertising campaign of DM 2 million In 1980, held 80% of the contact adhesive market in West Germany Brand awareness in West Germany topped 80% and over 65% sales come from outside Germany Total Sales were approximately DM 66 million worldwide New Brand : Stabilit Rasant
UMBRELLA STRATEGY 1. Re-market ‘Stabilit Rasant’ as Pattex Super Glue •
Since CA is popular market, rebranding the product under Pattex is a good idea
2. Develop Pattex brand into “hot melt” market •
Since Pattex is the market leader, using brand name will help market penetration of new product.
3. Market a new generation two-component glue, a special purpose glue, under Pattex name. •
It is important in using Pattex Branding in a new market that is slow moving. Bad odor need to be communicated with customer.
EVALUATION It can be successful if it done correctly • Pattex brand is powerful and have good image Brand is appeals to me 10 9 well-known brand
8
Brand which is sold everywhere
7
Brand conveys confidence
in association with adhesives
Pattex test group score 1-10, 10 being the strongest
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EVALUATE THE UMBRELLA STRATEGY PROPOSED FOR PRITT
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PRITT BRAND Launched in 1969 as the first Glue stick to serve a special purpose “papersticking” Advertising campaign of DM 3 million In 1980, become Henkel’s most successful brand internationally Sales revenue of DM 80 million Pritt provides products for home, school and office use. Adhesives, tapes, KidsArt, correction and fixing products are part of the Pritt range.
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5 ADDITIONAL PRODUCTS From 1972-1981, five additional products were introduced under the Pritt brand name: 1. Pritt Alleskleber 2. Pritt Allesklebe Crème 3. Pritt Hafties 4. Pritt Alleskleber (bottle) 5. Pritt Klebepads “We have created so many flops; we are losing money on them and everybody is mad at us”, said Von Briskorn
UMBRELLA STRATEGY 1. Save or re-market flankers products • (Pritt Alleskleber,
Pritt Allesklebe Crème, Pritt Hafties, Pritt Alleskleber (bottle),
Pritt Klebepads) • Re-design package, testing customer’s reaction to new design
2. Convey “modern” image 3. Survey stated harmonization “conveys confidence” and display higher quality product
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EVALUATION 1. It is very risky • From 1972-1981, already launched 5 failures products under Pritt brand 2. Flankers can hurt Pritt Brand in (intangible and tangible) 3. Consumer prefer Uhu products for all-purpose adhesive. •
Survey - Uhu is more well-known than Pritt
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PRITT (HARMONIZED) VS UHU
Offer useful adhesive
Sold Everywhere For general purpose
Conveys confidence 10 8 6 4 2 0
High Quality Pritt Glue Reliability
Well-Known Brand
Uhu
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WHAT DO YOU THINK ABOUT STANDARDIZING THE UMBRELLA STRATEGIES INTERNATIONALLY?
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GLOBAL STANDARDIZATION Exhibit 7 showed the mean score that Pattex name is a range of a well-known brand.
Develop new product to make Pattex’s name image strong. Make the Hot Melt market with affordable price and Pattex no mix
research to reduce “bad smell” of Pattex No Mix New design for Pritt Glue Stick and Pattex to be accepted and “modern” The standardizing in multiple products under the brand umbrella. Focus on regions with high potential enter in selected growth markets
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WHAT PROBLEMS DOES VON BRISKOM FACE IN IMPLEMENTING HIS PROPOSED STRATEGY? WHAT SHOULD HE DO ABOUT THEM?
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PROBLEMS
How he could get the strategy sold within Henkel Would also have to convince those with profit center responsibility in the affiliated foreign companies to implement the plan
RECOMMENDATIONS create
Should points-of-parity and points-of-difference in extension category • Must recognize competitive reactions
enhance
Should points-of-parity and points-ofdifference of parent brand
maximize
Should the advantages and minimize the disadvantages of brand extensions focus on further aligning portfolio towards umbrella brands, especially in Adhesives division expanding global brands and supporting top brands with
strong innovations and focused marketing investments.
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