Developing a glocalisation strategy: Experiences from Henkel's product launches in the Middle East and Europe

Abstract

The glocalisation strategy strives to achieve the slogan, ‘think globally but act locally’, through dynamic interdependence between headquarters and subsidiaries and/or local intermediaries around the world. Companies following such a strategy coordinate their efforts, ensuring local flexibility while exploiting the benefits of global integration. The challenge is to balance local knowledge with global reach. In the case of Persil Abaya Shampoo (for the Middle East market) and Persil Black Gel (for the European market), Henkel chose a strategy that successfully benefited from the ‘economies of scope’ in the purchasing department as well as in production and packaging. But by using an adapted product communication, plus individualised packaging designs, product positioning and marketing communications for the two regions, Henkel honoured the cultural heterogeneity of its target markets and used Persil Abayas’ particular significance in the Arab world to its advantage. The results document that it has been possible for Henkel's Persil to gain competitive advantages in terms of higher market shares, with the ‘glocalisation strategy’ in the (Middle East) liquid detergent market.