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Case
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Reference no. IMD-5-0561
Subject category: Marketing
Published by: Institute for Management Development (IMD)
Originally published in: 2000
Version: 30.04.2003
Length: 29 pages
Data source: Field research

Abstract

In June 1999, Leif Abildgaard, the Managing Director of Akzo Nobel UK, was faced with a difficult decision: he had to figure out how to revive the company''s Trade business. Akzo Nobel UK had two principal lines of business: the Retail business, which sold paint to the domestic, do-it- yourself market, and the Trade business, which sold paint to professionals using a network of traditional paint merchants, builders merchants, and the company''s own distribution outlets. Abildgaard, along with some of his more senior managers decided in 1999 to reduce the number of brands in the Trade business portfolio. Although Akzo Nobel had successfully reduced the number of brands in its Retail business portfolio, no attempt had ever been made to drop brands from the Trade portfolio. Because the Trade business consisted of professionals who tended to be brand loyal, Abildgaard knew that any decision he made would likely alienate some of his customers. Nevertheless, Abildgaard pressed ahead in his efforts and had to decide which brands to discontinue.
Location:
Industry:
Size:
973 employees, FRF667 million sales in 1997
Other setting(s):
1999

About

Abstract

In June 1999, Leif Abildgaard, the Managing Director of Akzo Nobel UK, was faced with a difficult decision: he had to figure out how to revive the company''s Trade business. Akzo Nobel UK had two principal lines of business: the Retail business, which sold paint to the domestic, do-it- yourself market, and the Trade business, which sold paint to professionals using a network of traditional paint merchants, builders merchants, and the company''s own distribution outlets. Abildgaard, along with some of his more senior managers decided in 1999 to reduce the number of brands in the Trade business portfolio. Although Akzo Nobel had successfully reduced the number of brands in its Retail business portfolio, no attempt had ever been made to drop brands from the Trade portfolio. Because the Trade business consisted of professionals who tended to be brand loyal, Abildgaard knew that any decision he made would likely alienate some of his customers. Nevertheless, Abildgaard pressed ahead in his efforts and had to decide which brands to discontinue.

Settings

Location:
Industry:
Size:
973 employees, FRF667 million sales in 1997
Other setting(s):
1999

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