2. • Henkel is a family business founded by Fritz Henkel in 1876.
60% of sales is overseas (outside Germany).Product line divided by 8 product
types.
1. Detergents and cleaning agents
2. Personal care
3. cosmetics
4. Household cares
5. Adhesives
6. Inorganic chemical
7. Foodstuffs
8. packaging
3. • 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.
Consumer Business
Beauty Care and Adhesive Technologies
Industrial Business
Laundry & Home Care
4. UMBRELLA BRANDING
• “Developing an integrated strategy for the marketing of a variety of
products under each of the brand names”.
• An umbrella brand is a single brand that sells multiple products
under its brand name. These products are typically related to each
other in some way. For example, the Apple brand sells a number of
items that are marketed as Apple products, such as the iPhone, Mac,
iPad, Apple Watch, and so on.
5. Umbrella branding
pro
• 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.
Cons
• 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.
6. Pattex Brand
• Pattex is especially good for bonding wood materials with laminates,
rubber, leather, cork, felt, rigid PVC, soft foam, metal and much more.
• 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 over65% sales
come from outside Germany
• Total Sales were approximately DM 66 million worldwide
7. Pritt Brand
• Pritt is a brand of adhesives, tapes, Kids Art, correction, and fixing products
designed and marketed by Henkel. Pritt invented the world's first glue stick, also
known as the Pritt Stick
• Pritt Stick has provided a quick, clean and accurate way to glue paper, cardboard
and photos.
• Launched in 1969 as the first Glue stick to serve a special purpose “paper
sticking”
• 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, Kids Art, correction and fixing products are part of the Pritt
range.
8. Additional products
• From 1972-1981, five additional products were introduce dunder 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
9. Umbrella strategy and Evaluation
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 Stated harmonization “conveys confidence” and display higher quality product
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
10. Global standardization
• 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
11. Problems and Recommendation
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
RECOMMENDATION
• Should create points-of-parity and points-of-difference in extension category
• Must recognize competitive reactions
• Should enhance points-of-parity and points-of-difference of parent brand
• Should maximize the advantages and minimize the disadvantages of brand extensions
• Focus on further towards umbrella brands, especially in Adhesives division
• Expanding global brands and supporting top brands with strong innovations and focused
marketing investment
