Henkel KGaA detergents division Global branding issues in the european market

Henkel’s main competitors P &amp. G and Unilever made moves around 1999 towards reorganizing around global brand categories. This helped them to concentrate their resources on a smaller portfolio of global power brands. They also had the support of the retailers. P &amp. G even re-allocated their budgets. These moves had prompted Henkel to sit up and reconsider their international marketing strategy. Hitherto, they had remained committed to a strategy of strong local brands but the global market was changing every day. The consumer wants local brands whereas the retailer wants international brands. Product innovation accelerated at a very high speed in the 1990s. Except for Henkel’s home German market, P &amp. G was leading in most European markets. The purchase and usage habits for detergents significantly differed from country to country. Research showed that a lot depended upon traditions and habits handed down from generation to generation. These were the causes that necessitated that the company derive an alternative solution to improve its market position.
The European market was divided in their requirements. Southern Europeans washed in lower temperatures while the northern Europeans wanted more powerful detergents and washed in hotter water. This led to an innovation market but the compact detergent that was introduced did not work well in southern Europe. The retailers wanted it because it occupied less shelf space for the same or higher price pack.