- Henkel is a family business founded in 1876 that operates across 8 product types, with 60% of sales overseas. It has three business units focused on consumer goods, beauty/adhesives, and industrial products. - Henkel uses umbrella branding, developing a single brand to sell multiple related products. This provides uniformity while being economical, but risks affect all brands if one fails. - Pattex and Pritt are two of Henkel's most successful adhesive brands, achieving high brand awareness and sales globally since the 1950s and 1960s. Henkel faced challenges in extending these brands too broadly with unsuccessful new products in the 1970s-1980s. - Moving forward, Henkel's strategy was

1. Umbrella branding and
globalization

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