...Robert Kurtz IOM 483 W/M Noon March 6th, 2013 Henkel Henkel Iberica (Question #4) What does an Everyday Low Price (EDLP) strategy mean? What are the costs and benefits of this strategy? An Everyday Low Price strategy is a retail strategy that will consistently have low prices without the need for sales or promotions. One of the best examples of this pricing strategy is Wal-Mart, and it is even in their minimal advertising campaigns. Some of the benefits of EDLP are that it can reduce variability in sales for the year. Consumers are no longer waiting for a sales promotion to be advertised. Another benefit that it produces is how it greatly lowers the advertising costs for a company. If a company is known as having an EDLP strategy, minimal advertising is required to increase or maintain sales. Similar to less advertising, implementing an EDLP can indirectly lower labor costs. There is less need for employees to make new signage on a daily basis due to the lack of price changes. Another benefit, as mentioned in the Henkel case, is that manufactures reap some benefits as well by not having to change the packaging that the product is shipped in. One of the problems in the Henkel case was that due to the vast amount of promotions offered, they were constantly changing container graphics, or content size, which increased packaging costs. One could also argue that it can, in some cases, increase consumer loyalty to a store because the consumer will have more...
Words: 445 - Pages: 2
...Shoud Unilever sell its underperforming Flora margarines business and buy more personal care companies? Jiayin Lyu, University College Dublin Executive Summary Flora is a famous brand of margarine. Sold in most places over the world. It is produced by Unilever and sold in other parts of the world under the brand name of Becel. However, people start to doubt about the safety of margarine. And in this essay, it will be analyzed that why Unilever should sell the Flora margarines business but purchase personal care brands especially high-end personal care companies. Health The initial problem of Flora margarines was called health crisis. Initially, Unilever claimed that Flora is absolutely healthy. Even its slogan said “Flora love your heart”. However, is that really means Flora, which is man made butter good for people’s health? Expert hold different opinion. In Dr. John Briffa’s essay The facts about why margarine is worse for us than butter. Margarine is made from chemically processed vegetables oils which have generally been bleached, coloured, deodorised and flavoured to make them ‘edible’. That means it is not a very proper food for people have it in daily life. The recent Food and Chemical Toxicology study seems to be nothing more than the usual pro-margarine propaganda. (John, 2006) So the advice of John is do not eat any Flora Margarine. Initially, even though the Food and Chemical Toxicology study found margarine had lower cholesterol levels. But that does not...
Words: 1776 - Pages: 8
...Dove Brand Analysis * Brand Description Dove is the world’s number one personal care brand owned by Unilever, selling products such as beauty bar, deodorants, hair care products and facial cleansers in more than 80 countries. Brand History Dove launched its first product — beauty bar in 1957 and then became a leading brand. In 2000, Dove became a Masterbrand of Unilever and expanded to personal care category. Since then Dove started series of new revolutionary campaigns such as “ the Campaign for Real Beauty”, which triggered hot social discussion and attracted considerable social attentions. Product Characteristics Functional: Dove’s products are characteristic of mild, moisturizing, and one-quarter cleansing cream. Dove stays with the claim not to dry skin the way any other personal care products do and is widely endorsed by dermatologists. Emotional: Consumers can become more beautiful on their own way, feel more confident and self-esteem, and celebrate their individuality and unique real beauty. Brand Values and Personality Dove values real beauty, self-esteem, inclusion and diversity, and social responsibility. Dove tries to change the traditional way society views beauty and highlights real beauty. Dove wants to be considered as a real, confident, innovative, and unique brand. In consumers’ minds, Dove is always associated with naturalness, purity, sincerity, youth, high self-esteem and real beauty on own way. * Consumer Description Target Audience ...
Words: 612 - Pages: 3
...Research and Markets: Understand Hindustan Unilever Limited's Strengths, Weaknesses, Opportunities and Threats Along with Business Strategy Business Wire, Jan 24, 2008 • 1 • 2 • Next DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c80475) has announced the addition of "Premium Company Profile: Hindustan Unilever Limited" to their offering. Introduction Hindustan Unilever Limited (HUL), a subsidiary of Unilever, is a fast moving consumer goods (FMCG) company based in India. The company focuses on efficient delivery to consumers with an improved supply chain, brand building initiatives and innovation, which has helped the company to sustain its leadership position in the overall FMCG category in India. Scope Contains corporate strategy, value chain presence and SWOT Analysis Provides detailed business description, segment analysis, 5-year financial trends, key products and key competitors Includes information on suppliers/ partners, shareholding structure and key employees with biographies Highlights Hindustan Unilever Limited (HUL) is a packaged mass consumption fast moving consumer goods (FMCG) company based in India. It offers foods, beverages, home care, and personal care products. Its operations are divided into seven reportable divisions: soaps and detergents, personal products, beverages, foods, ice creams, exports, and other operations. Its brands are spread across 20 consumer product categories. Hindustan Unilever...
Words: 269 - Pages: 2
...The Role of Housekeeping Quality The responsibilities of housekeeping quality are to achieve the maximum possible efficiency in ensuring the care and comfort of the guests. The aims are to: a) Establish a welcoming atmosphere and ensure courteous, reliable service from all the staff of the department. b) Ensure a high standard of cleanliness and general upkeep in all areas for which the department is responsible. c) Provide linen in rooms, food service areas and maintain an inventory for the same. As we know, housekeeping department has four main functions which are to do the cleaning and maintenance, training of its personnel, requisition and control of the necessary supplies and equipment and to provide the paperwork, schedules and reports. These four principal functions must have its own quality that may affect to the customer satisfaction. According to Sudhir Andrews, author of "Hotel Housekeeping: Training Manual," the housekeeping department is vital to attracting and keeping guests through its role of maintaining top quality decor, cleanliness and service. The quality of housekeeping in every hotels are efficiently managed to ensure the cleanliness, maintenance, and aesthetic appeal of lodging properties. The housekeeping department not only prepares clean guestrooms on a timely basis for arriving and staying guests, it also cleans and maintains everything in the hotel so that the property is as fresh and attractive as the day it opened for business. The tasks...
Words: 521 - Pages: 3
...Topics: Discus how strategy evaluation criteria may be employed to review the strategy of Unilever Bangladesh Ltd. “We meet everyday needs for nutrition; hygiene and personal care with brands that help people look good, feel good and get more out of life” Since Unilever was established in the 1000s brand with a social mission have been of the core of their business and new corporate responsibility underpins their strategy. * Unilever Bangladesh: Over the last four decades Unilever Bangladesh has been constantly bringing news world class products of the Bangladesh people to remove the daily Budgetary of life. UNILEVER AT A GLANCE Introduction to Unilever Bangladesh Unilever Bangladesh (UBL) is the leading Fast Moving Consumer Goods Company in Bangladesh with a heritage of 50 years and products that are present in 98% of Bangladeshi households. UBL started its journey in Bangladesh with the production of soaps in its factory in Kalurghat, Chittagong. Over the years the company introduced many affordable brands which won the hearts of consumers across the country. Today, our brands are present in almost every household in the country. UBL is the market leader in 7 of the 8 categories it operates in, with 20 brands spanning across Home Care, Personal Care and Foods. Its operations provide employment to over 10,000 people directly and indirectly through its dedicated suppliers, distributors and service providers. 99.8% of UBL employees are locals...
Words: 831 - Pages: 4
...Ursprünglich stammt der Begriff „Portfolio“ aus dem Bereich des Bankwesens und bedeutet dabei ein Bündel von Investitionen. Die Grundlage der heutigen Portfolio-Planung stammt aus der Finanzwirtschaft und wurde von Harry M. Markowitz (US-amerikanischer Ökonom, Nobelpreisträger) im Jahre 1952 mit seiner „Portfolio Selection Theory“ geschaffen. Außerdem/In einem zweiten Zusammenhang wird „Portfolio“ in der Unternehmensplanung verwendet. Hierbei handelt es sich um die Portfolioplanung, ein allgemeines Instrument der Strategischen Planung eines Unternehmens, das dazu dient die Ziele eines Unternehmens bestmöglich zu erfüllen. Bei der Portfolioplanung gibt es mehrere klassische Ansätze. Die wichtigsten sind dabei zum einen die Matrix der Bosten Consulting Group, auch Boston-I-Portfolio genannt und der McKinsey&Company Ansatz, bekannt unter dem Namen Marktattraktivitäts-/Geschäftsfeldstärken-Portfolio. Neben diesen beiden wichtigsten gibt es noch viele weitere Ansätze die auch wie die Beratungsgesellschaften „auf den Absatzmarkt des Unternehmens abstellen und lediglich die externe und interne Dimension des Portfolios anhand anderer Kriterien bestimmen.“ (S. 480, H. Hungenberg, Strategisches Management in Unternehmen). Hierbei könnte man beispielsweise die Produktlebenszyklus-/Wettbewerbspositions-Portfolio Methode nach Arthur D. Little erwähnen. Bei der Anwendung des Portfolio-Konzeptes auf die strategische Unternehmensplanung ist es zunächst wichtig, das Gesamtunternehmen in verschiedene...
Words: 438 - Pages: 2
...1. Einleitung Diese Fallstudie hat das Ziel, das Geschäftsportfolio der Henkel-Gruppe zu illustrieren. Auf der historischen Entwicklung der Henkel-Gruppe aufbauend, werden die unterschiedlichen Geschäftsfelder der Gruppe kurz vorgestellt sowie deren Bedeutung für den Konzern aufgezeigt. 2. Vorstellung der Henkel-Gruppe 2.1 Historische Entwicklung Den Grundstein der Henkel-Gruppe bildet die im September 1876 in Aachen von Fritz Henkel und zwei weiteren Kaufleuten gegründete „Universalwaschmittelfabrik“ Henkel & Cie. Bereits 1878 verlegte Fritz Henkel seine Firma nach Düsseldorf, wo heute noch der Sitz des Konzerns ist. Ab 1907 eroberte Henkel & Cie mit dem „selbsttätigen“ Waschmittel Persil die unangefochtene Führung auf dem deutschen Waschmittelmarkt. Der Erfolg von Persil ließ die Mitarbeiterzahl von 494 im Jahre 1909 auf 1799 im Jahre 1918 ansteigen und prägte das Unternehmen insgesamt als Markenartikelhersteller. In den ersten Jahrzehnten seines Bestehens wurde das Unternehmen durch die Entwicklung der Geschäfte im Deutschen Reich dominiert, wobei Fritz Henkel frühzeitig die Chancen und die Bedeutung einer länderübergreifenden Geschäftsausweitung erkannte. Von Beginn an (1878) verkaufte Henkel seine Waschmittel im Ausland, was auf der einen Seite durch firmeneigene Außendienstmitarbeiter erfolgte. Auf der anderen Seite schloss Firmengründer Henkel Verträge mit ausländischen Firmen ab, die die Erzeugnisse aus Düsseldorf importierten und auf den jeweiligen ...
Words: 977 - Pages: 4
...Case Henkel Ibérica (A) The case tells about the big conglomerate Henkel KgaA and its challenges in highly competed business area, the fast moving consumer goods (FMCG). Henkel Spain, the Spanish subsidiary of the German company Henkel KgaA, has noticed that the skyrocketing level of sales promotions and the complexity of the laundry detergent portfolio have seriously taxed their sales, production, and distibution systems. Stock keeping units (SKU) have almost tripled in five years because of new product launches, brand variations, and special product packaging. Now Esteban Garriga, customer service director at Henkel Iberica, is questioning whether Collaborative Planning, Forecasting, and Replenishment (CPFR) would help manage retail promotions and limit their impact on the stock-outs and obsolete inventory. Many in the organization also believe that the company should abandon or cut back promotions and adopt an everyday low pricing strategy. Henkel uses special promotions, instead of straight price promotions, such as more product for the same price, specially bundled products, and coupons or free items attached to the package. These promotions are retailer-specific, therefore there is a need for a wide variations of different kind of packagings. The product offerings have become more complex and Henkel and retailers find it more difficult to develop an accurate sales forecast and demand planning systems, which lead to higher levels of obsolete and out-of stock items...
Words: 304 - Pages: 2
...Case Henkel Ibérica (A) The case tells about the big conglomerate Henkel KgaA and its challenges in highly competed business area, the fast moving consumer goods (FMCG). Henkel Spain, the Spanish subsidiary of the German company Henkel KgaA, has noticed that the skyrocketing level of sales promotions and the complexity of the laundry detergent portfolio have seriously taxed their sales, production, and distibution systems. Stock keeping units (SKU) have almost tripled in five years because of new product launches, brand variations, and special product packaging. Now Esteban Garriga, customer service director at Henkel Iberica, is questioning whether Collaborative Planning, Forecasting, and Replenishment (CPFR) would help manage retail promotions and limit their impact on the stock-outs and obsolete inventory. Many in the organization also believe that the company should abandon or cut back promotions and adopt an everyday low pricing strategy. Henkel uses special promotions, instead of straight price promotions, such as more product for the same price, specially bundled products, and coupons or free items attached to the package. These promotions are retailer-specific, therefore there is a need for a wide variations of different kind of packagings. The product offerings have become more complex and Henkel and retailers find it more difficult to develop an accurate sales forecast and demand planning systems, which lead to higher levels of obsolete and out-of stock items...
Words: 466 - Pages: 2
...To be completed by students (typewritten) MODULE NUMBER | | MODULE TITLE | Managerial Accounting | SEMESTER | Fall 2012/2013 | SESSION | | ASSIGNMENT NUMBER | | SUBMISSION DATE DUE | 13.03.2013 | ASSIGNMENT TITLE | Financial performance evaluation of Henkel | INSTRUCTOR’S NAME | Goran Vasilev | To be completed by the front desk secretary or the course administrator SIGNATURE | DATE SUBMITTED | HOUR SUBMITTED | MATERIAL SUBMITTED | | | | Report Diskette/CD | | To be completed by the instructor SIGNATURE & DATE | MARK * | MARK AFTER ORAL (if applicable) | SUBMISSION | | | | On Time Late | | * fill in the slot in the covered area if blind second marking is required Other comments: STUDENT NAME(s) | Elena Donevska | Declaration: All sentences or passages quoted in this coursework from other people's work have been specifically acknowledged by clear cross referencing to author, work and page(s). I understand that failure to do this amounts to plagiarism and will be considered grounds for failure in this coursework and the module examination as a whole. STUDENT REG. NUMBER(s) | 9654 | To be completed by the 2nd examiner (if applicable) SIGNATURE | MARK | | | AGREED FINAL MARK | | STUDENT SIGNATURE(s) | | To be completed by students (typewritten) MARK | | to be completed by instructors...
Words: 3408 - Pages: 14
...What is your definition of a winning culture and does this case support that definition? Why or why not? Winning Culture - the Company in which all the employees are working towards high productivity. Main thing about winning culture is excelling in whatever you do. This case does not support winning culture at all. -CEO was not satisfied with the employees - 95% of the work was always not completed on time -LOGO of the company was off it was not appealing to consumers -Company never involved in interaction with consumers. What do you like about Rorsted’s approach? The Rorsted’s approach had few important points -Design of new logo -Research about the consumers need -Tapping the potential market -Clear direction were given to all the employees whether they want to work with full devotion or they might leave the team. -Aiming to communicate more by more transparency with customers. What are the risks? -Potential loss if things did not go as planned -Bad Credibility in the market -Brand reputation in risk -Risk from competition Assuming that the 2012 EBIT margin goal is achieved, how should Rorsted motivate high performance over the next five years? If the 2012EBIT margin goal is achieved he should motivate high performance by -Giving rewards to better performing employees in some cases increase in rank or position -Providing incentives -Giving all the employees an open platform to discuss all their ideas. -Taking and giving positive feedback. -By scheduling...
Words: 252 - Pages: 2
...TAPAN BAJAJ 2601 SW Archer Rd, Apt. H329A Gainesville FL 32608 (352) 870-7967, tapanbajaj@ufl.edu Education May 2016 UNIVERSITY OF FLORIDA GAINESVILLE, FL MS - Information Systems and Operations Management, Hough Graduate School of Business * Member – UF - Association for Information Systems (Volunteer Committee) * Volunteer – Sustainable UF * Temporary Retail Associate – UF Bookstore (Reitz Union) June 2010 MIDDLESEX UNIVERSITY BSc (Hons) – Business Information Systems LONDON, UK * Developed an Educational Interactive Software for Dyslexic Children. Technical Skills * Operating Systems: Windows XP/Vista/7,Unix * Microsoft Applications: Office 2010/2013, Visio, Project, Power Point * Database Systems : SQL Experience 2014 OCEANEERING INTERNATIONAL INC CHANDIGARH, INDIA Facilities Administrator Planned and coordinated essential central services such as admin, maintenance, security, reception, catering, transport, mail, waste disposal and cleaning. * Supervised a sixteen member team including admin and reception employees. * Worked alongside the IT department to ensure smooth functioning of systems...
Words: 331 - Pages: 2
...Executive Summary Henkel AG is a worldwide company, which headquarter is located in Düsseldorf, Germany. Since 1876, holds a well-known leading market positions in both industrial and consumer businesses. It employs around 47,000 people, from at least 6 different areas worldwide. The company has brands and technologies which focused in three globally operating areas: Laundry & Home Care, Beauty Care and Adhesive technologies (Henkel AG & Co. KGaA, 2012). From 2012 their sales values has recorded 3.410 million euros, gross profit of 1.073 million euros and a net income which had a major increase from 32 million euros made in 2011 to 591 million euros en 2012, following (Henkel AG & Co. KGaA, 2012). Fortunately, with a constant increase that the company have been having from its current assets, potential investor might be tempted to follow from close the progress of Henkel. This essay is also gives Henkel AG a much closer look of some of the financial values of the company in order to explain its progress to help having a better perspective of how are the performance management being a support for its evolution to incentive even more current and potential investors. Table of content Introduction 4 Cost of Equity 5 Market Beta 7 Cost of Debt 14 Weighted Average Cost of Capital (WACC) 17 Conclusion 18 References 19 Appendix 21 Introduction Due to the current economic status quo of business markets worldwide...
Words: 4435 - Pages: 18
...S. laundry-detergent market and 85% of the profits.” P&G has dominated; especially, in the laundry detergent brand for long period of time in the U.S. This has helped them to dominate in negotiating with the large retailers including Wal-Mart in the prices. For example, Last year, P&G raised the prices on some Tide varieties also reducing the amount of detergent and number of loads per container very effortlessly. This can be changed if Persil can capture at least close to half percentage of the Tide market shares. Persil is a very popular brand in Europe; however, it is unheard in the U.S. market. A strong European company named Henkel owns it, which is based in Germany. P&G has restructured its organizations as global brand categories, while Henkel has marketed several local brands to accommodate cultural differences in European region. So, Henkel must create a plan to standardize globally and adapt globally to get success in U.S. market. I. PESTEL Analysis: A. Political and Legal factor: Each country in Europe has its own independent and separate economic data, however the whole European countries are viewed as a “unique economic and political partnership between 27 European countries that together cover much of the continent.” Furthermore, each countries have their own currency, yet one currency, the Euro, has been adopted in whole Europe and the trade between all of these countries have been made very flexible. All of these rules and regulations are made by EU(Europe...
Words: 1080 - Pages: 5
