Global Household Brand Essay Example for Free

Global Household Brand raiseExecutive summaryAfter a review of the Global Household Brand article, I was designate the task of reviewing your tune and to provide a well-detailed critique on global kinfolks brands. I will enlarge a strategy identify the likely cause of the smart sets financial woes.The major com arrangee on the poor financial performance of the telephoner is that of competitive strategy and differences in operable effectiveness. toothless precaution strategies stick led the company to lose lots of profit (Michael E, 1998). Its lack of a introduce strategy on how to effectively compete with big merchandiseers has made it either to passage the market or to end up in the financial mess. The company must continuously improve the level of its executional effectiveness, and income must be increased and regulated. Sustainable performance will largely be dependent on global household brand having a strategic vex (Tony P, 2000). There is need to evaluat e consumers trend. caller and Industry OverviewGlobal household brands has lost the image she built as a leading maker and marketer of a variety of niche dentifrice products that includes polident, powdered aspirin, household cleaning brands among a few new(prenominal)s to company characterized with lack of customers and loss making one. The company initially thrived on venturing in new markets and exiting them when the tilt became a little bit stiff. The restructuring of the company together with other measures to bring a change in the financial fortunes of the company have only helped to worsen the situation. However, the rigid has intention of reinventing itself to turn around its fortunes so as to be competitive and generate revenue in a continuous and sustainable manner.In the mid(prenominal) 1990s, when miscellaneous big marketers such as Clorox, S.C Johnson, and Arm and Harmer began competing against global household brands 2000 sanctify automatic toilet bowl cleaners, X-14 mildew as well as soap scum rem everywheres and rug fresh carpet refreshers, the company decided to exited the group of products due to their in readiness to gain substantial market share. During this period the company was non anywhere close to the red line, actually it was worth around $1.5 one thousand million. The exit made by global households brand did not seem to affect its profitability within the markets. The items it dealt with were in areas considered less competitive which changed her to rake in high amounts of profits on their line up to mark products. During the period 1995-98 the profits started to drop by about 10-15% per annum. Their potential to stay at least in the market was waning. The sale of their brands as well as the hiring and restructuring their management executive did not seem to over turn the events.Eventually after global household brand had had their sales drop from $130million to $ 70 million they decided to hire Goldman Sachs to sell thei r brand of products. After about one and a half days with Goldman at the helm, the sales issues were not anywhere near $100 that Goldman had promised. The deterioration in the sales figure was as a result of lack of competitive marketing strategy and difference in operation effectiveness. This was in spite of the company being given the green light about their customers respect for their brands of products.depth psychologyIn the mid 1990s the company was worth about $1.5 billion. In the period 1995 to 1998 the sales of the firm was falling at a rate between 10 and 15% per annum. This in effect demonstrates the ability of the company to generate high profits. During the late 1990s onwards the firm did not efficiently output. The legitimate drop in the sales figure was a testimony to this. In spite of all the changes and motley measures the firm was taking, it was still not able to generate the projected profit margins. Despite the fact that the consumers have greatly respected th eir brand of products it was not able to capitalize on this factor to turn into extensive profits.StrengthsConsumers for its high grapheme of products very well recognize global households brands. This in addition to the mature character of the household cleaning products industry is a plus for the company. The company is withal much leveraged in the industry. The company also has a superior marketing V.P with such attributes as unique givings and is also very undergo as well as brilliant strategies. This is in addition to the talented R and D handler it has on its board. All these factors will aid the management in turning around the fortunes of the firm. With all these talent and experience at their disposal the company would be starting from a vantage position in its path to recovery. The industry also seems to be very mature meaning the future of the company with its keep operations is bright.WeaknessesThe firm has not effectively and in most cases deliberately not consid ered heavy spend in advertising and marketing to compete with her competition. The new operations passenger vehicle also seems to be having a bad inter personal relationship with other employees within the firm. Global sales department has not met its past targets.Opportunity TrendsThe general trend within the industry seems to be in favor of household cleaning products. The overview of the general industry seems to suggest that it is leveraged and that household cleaning products industry is mature. This presents the company with the chance to work and increase its revenue. The maturity of the company shows that if it can invest largely without so many risks involved as uncertainty.Competitive AnalysisSuch companies like Clorox, S.C Johnson among others seem to be the greatest competition for the firm. They have heavily invested in their marketing strategies and in the end endeared themselves to their customers.Strategic optionsGlobal households, has been constantly pioneering various ranges of products over the past years. Before the entry of the big marketers it was the seen as the pioneer of household cleaning products. In addition to this, it has produced quality products. In fact, a recent survey suggests that most customers acknowledge the high quality of their products. The strategy of quitting and finding a new brand of products has been its main stay and now that it has run out of options and its very earthly concern is threatened it must consider other options (Michael E, 1998).Since global households brand has come to the acknowledgment that it has to alter its business strategy so as to keep alive in the industry, it has few options left. First, it can adopt the preeminence strategy. This would require global household brand to build customer loyalty. In order to accomplish this, it has to position its products as well as services in unique ways that would appeal to the customers. In other words, the products will seek to be better than th ose of its competitors.The second option that the business may explore is that of concentrate strategy. This alternative takes into account the heterogeneity of many markets and industries. As such, there exist a lot of various customer segments with varying needs, wants as well as characteristics. The basic principle under this strategy is to put emphasis on selecting one segment(s), identify customers with special needs, interests and wants among other things and approach them.Global households brand could also employ the third option of horizontal integration. Under this strategy will be selling its products in various markets. In order to acquire the market coverage, it will have small subsidiary firms created. This would enable it compete with compete with its competitors effectively.RecommendationsWithin the last few years, global household brand has undergone a procedure of drastic changes. It has been forced to sell part of its brands, and almost the banks are about to cal l the loans given to it. wiz of the primary reasons global households has failed to proper its sales target is its inability to effectively market and appeal to the market. This is what her competition have done and thereby edged her out. Since the competitors have done the marketing really well, GHB has to effectively market itself or just face the possibilities of winding up. The second problem facing the company has been that of management. The manager has to learn to develop interpersonal relationship with his juniors.Alternatively, the New CEO or management team should meet people who worked at the Block drug before and find out what really problem was. This would enable them to have a better understanding of the firms woes as well as its triumphs.The management should also approach the financing Bank, and talk them out of calling the loans on the investors. Finally the $5million should be cut down with picked interestReferencesMichael E. Porter, on competition, 1998, Harvar d Business School PressTony Proctor, 2000, Strategic Marketing An introduction, Rout ledge.Alfred D. Chindler, Peter Haqstom, Orjan Solvell, 1999, the dynamical Firm. The role of technology, strategy, organization, and regions, Oxford University Press.