-1-Henkel-issue-5-29-xRolandBerger&Partners–InternationalManagementConsultantsBarcelona–Beijing–Berlin–Brussels–Bucharest–Budapest–BuenosAires–Detroit–Düsseldorf–Frankfurt–Hamburg–Kiev–LisbonLondon–Madrid–Milan–Moscow–Munich–NewYork–Paris–Prague–Riga–Rome–SãoPaulo–Shanghai–Stuttgart–Tokyo–Vienna–ZurichProjectnameordocumenttitle(max.twolines)–Typeofdocument–Clientname(max.twolines)Location,dateofpresentation(monthday,year)-2-Henkel-issue-5-29-xThisdocumentwascreatedfortheexclusiveuseofourclients.Itisnotcompleteunlesssupportedbytheunderlyingdetailedanalysesandoralpresentation.ItmustnotbepassedontothirdpartiesexceptwiththeexplicitpriorconsentofRolandBerger&Partners.ContentPageA.Chapter??1.Subchapter??1.1Section??B.Henkelshoulddevelopsuitableruralsellingmodeltoexpanddistributionandestablishefficientandlow-costlogisticsystem??1.Subchapter??1.1Section??C.Henkelshoulddevisesuitableruralsalesmodeltoexpanddistributioncoverage??1.Subchapter??1.1Section??-3-Henkel-issue-5-29-xA.Chapterpage(afterchapterpoint:4"spacebars")-4-Henkel-issue-5-29-xProcessofruralmarketpenetration•Since1995,P&Gbegantodevelopitsruralentrymodelandfocusonruralmarketpenetration•InZhejiang,P&Gsetatrailareatotestthemodelandtrainsalerep.tomasterpenetrationskills•A“roadshow”projectispromotednationwidetoraiseP&Gimageinmajorruralarea•FreesamplingisthemajorpromotiontoolstoattractfarmersandruralretailersDescriptionHavingbeensuccessfulincity,P&GisnowmakingeffortstopenetrateruralmarketInnationalwide,P&GchoosesruralareaswithhighdetergentconsumptionandhighpopulationdensityasitsinitialentryareasForacertainarea,P&GwilldrawaretailingmapaswellastheactionrouteSalesrep.willcallonretailersintermsoftheactionroute,usingfreesamplingtoattractandpersuaderetailersIfretailerisinterestedinP&G’sproducts,salesrep.willtransferthedealtolocalappointeddistributor/wholesaler-5-Henkel-issue-5-29-xMarketshareoftopfivebrandsMarketstructureineachsegment(1999)Fiercecompetitiondrivesindustryconsolidation,andfastgrowthofnationbrandsineachsegmentdecreaselivingspaceofregionalbrands6.8%8.0%13.7%16.7%9.8%8.7%8.3%6.5%7.6%9.3%8.1%6.5%6.8%79.8%73.8%64.8%57.4%57.0%6.0%8.1%5.7%3.8%0.3%0.2%5.5%3.7%5.4%5.7%3.8%2.9%Dec.1995Dec.1996Dec.1997Dec.1998Dec.1999QiqiangWhitecatLibaiTideJiameiOthers•HighendBrandSharePrice(RMB/kg)Tide6.0%12.3OMO2.4%16.4Ariel2.2%15.6Power281.1%10.2•MiddleendBrandSharePrice(RMB/kg)Whitecat7.1%8.6Libai6.8%7.0Jiamei6%7.5DiaoPai2.4%8.5GFL2.2%7.9•LowendBrandSharePrice(RMB/kg)Qiqiang16.7%5.7QuanLi3.8%5.7M&D2.8%5.1FangCao2.5%6.8Minghua2.4%5.2-6-Henkel-issue-5-29-xIntheseyears,Henkelkeepslosingmarketshare*:Persil,MulanandHenkoistoosmalltobecalculatedSource:ACNielsenretailingaudit(1995~1999)MarketshareofHenkel’smajorbrands*2.7%1.1%1.5%0.6%3.3%4.3%2.9%2.1%0.7%2.4%1.8%2.0%1.0%3.3%2.2%1.2%0.9%2.6%3.9%2.4%2.0%0.7%0.6%0.2%0.1%Dec.1995Dec.1996Dec.1997Dec.1998Dec.199911.5%11.5%11.2%11.2%9.4%9.4%8.4%8.4%6%6%-7-Henkel-issue-5-29-xHenkel’sseparatedregionalbrandcannotresistthecompetitionfromnationalbrands(1)Marketshareindifferentregion(1999)Marketshareinmajorregion(1999)TiantianSeagull0.0%4.0%0.0%SouthEastNorthWest4.3%0.5%2.1%1.5%SouthEastNorthWest4.9%3.9%4.2%3.3%2.9%5.0%JanMarMayJulSepNov5.3%4.6%3.8%3.0%1.4%5.6%JanMarMayJulSepNovNorth-8-Henkel-issue-5-29-xHenkel’sseparatedregionalbrandcannotresistthecompetitionfr...
