P R E S E N T

MM6016

BrandingandMarketing 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

A global leader in brands and technologies

Values Values

Customers

People

Financials

Sustainability

Family

Strategy Strategy

Outperform

Globalize

Simplify

Inspire

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CURRENT MARKETING PROBLEM

Domestic

Customer have no product knowledge small communication budget on low expenditure per capita item Heterogeneous market - Small market give low purchase frequency and deep segmentation in product line

International

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 CONTD
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 Since Pattex is the market leader, using brand name will help market penetration of new product.

2. Develop Pattex brand into hot melt market

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 7 Brand which is sold everywhere

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 Henkels 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 Crme 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 Crme, Pritt Hafties, Pritt Alleskleber (bottle),

Pritt Klebepads) Re-design package, testing customers 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

Conveys confidence 10 8 6 4 2 0

Offer useful adhesive

High Quality Pritt Glue Reliability Uhu

Sold Everywhere For general purpose

Well-Known Brand

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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 Pattexs 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
Should points-of-parity and points-of-difference in extension category Must recognize competitive reactions Should points-of-parity and points-ofdifference of parent brand 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

create

enhance

maximize

strong innovations and focused marketing investments.

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