1. Problem:

Whether or not launch Vizir and, if so, whether to launch it to Germany or as a “Eurobrand”

2. Issues

- How to sell counter-culture?

- How to expend liquid detergent of Vizir into a “boil wash” powder detergent washing culture?

- How to standardize its product formulation, packaging, advertising, and promotion if it is going to be a “Eurobrand”?

- How to control the budget and keep the subsidiaries’ profit opportunities?

- How to organize the European operations and coordinate the activities between different subsidies?

- How to not hampering the sales of Ariel and resisting from the competitors to copy?

-How to respond to the competitor’s imitations and Henkel’s counterattack after the launch?

- Should P&G authorize a national launch on the basis of four months of test results? Or should they reconsider it based on the final test-market results of the entire HDL product strategy?

3. INDUSTRY/ MARKET ANALYSIS

The liquid detergent has only l% market share in Europe compared with 20% in the United States. HDL market was not seen as very positive due to the different European washing habits. The washing habits in Europe are not only different from America but also different from one country to another in Europe itself. The average European load of laundry is washed at higher temperatures, using more detergent and a significantly longer wash cycle. “Boil wash” (over 60°C) was popular in most countries in Europe. However, based on the results of four months of market research, the “Boil wash” is decreasing. The lower temperature washing is increasing instead. European washing machines have low water usage compare with American washing machine. Europeans use more cotton and less synthetic than Americans and tend to wear clothes longer between washes that the average washing frequency is less than United States. The market structure and the competitive environment were also very different from the US and varied widely within Europe. As said in the case in Germany, concentration ratios among retailers were among the highest in the world, TV commercial time was limited, and laws made incentivizing with coupons/offers/refunds impossible.

It doesn’t fit the environment, if it doesn’t fit why force it.

There are important executive concepts that help us understand organizations as a whole. Spirit (contributions, ethics, ambition, communication),

productivity (information, relationships, concepts),

management (execution, people, marketing, innovation),

expansion and growth (geography, market, competence, vertical),

resources (knowledge, financial, information)

governing principles (purpose, assummptions, beliefs, values)

performance (profit, revenues, roi, cash flow)

2 of the 7 critical enterprise competencies are systematic innovation and execution. Si deals with the planning and opportunism that goes in place with the products, processes, markets, business, corporate governance…ect). For effective Execution, efficiency and effectiveness using information and highly engaged people.

Test results seemed to go well with numbers surpassing target expectancy for the first 3 months of the shipments and launch in berlin test markets. Consumer research results also did fairly well.

Intro-

To launch or not to launch-

Eurobrand and adaptation versus standardization-

--advantages and disadvantages

Product/ promo/ pricing/ packaging

A way forward- organizational change