Henkel - Building a Winning Culture - Case Study Example

Financially, Henkel profitably generated €15,092 trillion in revenues during 2010 alone. However, Henkel lags far behind the industry leaders, P & G, and Unilever, in terms of revenue generation.Strategic Problem SectionFront Burner Issues1. How to meet the competitors’ daunting marketing challenges. More customers prefer P & G or Unilever products over Henkel because of the competitors’ better marketing strategies. P & G and Unilever offer many competitive products to the transport industry.

Consequently, Henkel’s current revenues show that the company is not enough to surpass the global revenues of P & G or Unilever. 2. How to keep abreast of the global competition. The competitors offer more product alternatives and products than Henkel. The competitors continue to sell new products to the current customers. Consequently, Henkel is left behind in the race to be the top revenue generator in the industry. Henkel’s current product offers pale in comparison with the product offers of the globally accepted competitors like P & G and Unilever.3. How to retain its current clients.

Customers continually have to change needs resulting in a decline in the demand for the current Henkel products. Change is a permanent activity. People continually change their current needs or wants. When the customers change their needs, there is a high tendency that the customer’s new needs or demands are not supplied by Henkel. Consequently, the change in current and future customers’ product demands will lead to a decline in Henkel’s global revenues and net profits.Solution Section (Recommendations)1.

To resolve the above first problem issue, it is highly recommended that Henkel implemented innovative marketing strategies (ads) tailored to each unique country’s customer culture. Henkel must increase its advertising budget to promote the countless benefits to the global target customers.2. To resolve the above second problem issue, it is recommended that Henke increase its research and development activities of the customer’s new product choices.