Essay on Tilting Windmills: Sanex Tries to Conquer Europe

1009 Words Feb 16th, 2010 5 Pages
Course: Marketing Management Case Study: “Tilting Windmills - Sanex Tries to Conquer Europe

1st Question: What were the reasons for the success of Sanex in Spain? The product Sanex, or moreover the Sanex concept, became a success in Spain because the company responsible for it, CVL, and it’s local President, Mr. Martin Muñoz, carried out one of the first rules of Marketing: they invented a Consumer’s need and provided the right answer for it. Mr. Muñoz was able to find a gap in the Household and Personal Care (HPC) Market, and namely in the Bath & Shower Products Market, where we could only find, in the mid 1980’s, 2 types of products: Cosmetics and Pharmaceuticals. After studying this market along with his management team, Mr. Muñoz
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This was the Sanex concept. A whole new different concept. With the correct Marketing Mix, Sanex was launched in Spain in 1985 and became a winner almost instantly. Followers appeared with “substitute” products beginning in 1986, but Mr. Muñoz used its 1st mover advantage and continued investment of revenue in strong advertising support, year after year, to ultimately achieve a Share of Voice of 37% in 1990 and continued leading market share throughout those years.

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2nd Question: Do you think the reasons for success and the strategies used in Spain can migrate to other countries? Being a concept that didn’t exist in many other countries, Sanex had all odds in favor in order to replicate the success it had in Spain in other countries. That way, the reasons for success were all there. In fact, Mr. Muñoz was invited by Sara Lee/DE headquarters, the mother company of CVL, based in the Netherlands, to roll out Sanex throughout Europe as a coordinator. Mr. Muñoz’s firm beliefs were that the objectives, product policy and marketing policy of introducing Sanex should be identical for all the countries, and replicated exactly as done in Spain. Initially the different subsidiaries in countries such as Denmark, the Netherlands, France, Belgium, UK and Greece were quite unfavorable, namely due to the name of the brand and product characteristics. In the Netherlands, France and Denmark, management’s disbelief was confirmed by initial market research and local product testing

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