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Persil in Walmart

In: Business and Management

Submitted By uhd123
Words 1080
Pages 5
Analysis of Situation:
Wal-Mart has struck a deal with the most popular premium priced laundry soap brand, “Persil” in European countries to introduce it to in the U.S. In fact, it has stacked up this brand on store shelves right next to the Tide detergent, which is the most popular brand in the U.S. “Driven by Tide, P&G accounts for 60% of all sales in the U.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 Union). Moreover, “the EU...

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