Mark Owen Penrose
Business career
The challenge, as Global Vice President Sales and Country Management, for Kärcher
Context:
- Vast majority of Kärcher's consumer business derived from its leadership of niche Pressure Washer market.
- An underleveraged brand had difficulty penetrating or creating new markets.
- Weak 'go-to-market' structure and processes left powerful retailers in the driving seat, limiting value capture.
Objectives:
Accelerate profitable growth; Develop strategic capability; Trade in compliance with EU competition law.
Strategy:
- Sell-in consumer-centric Pressure Washer range backed by major advertising.
- Focus resources to 6 times larger Indoor cleaning market. Create brand new window vac market through aggressive marketing
- Transform Sales Department from support function to country-cluster strategic partner with international key account leadership.
- Lead overhaul and renegotiation of trading terms across Europe.
Results:
- 33% growth for Kärcher's consumer business world-wide 2015 vs 2011
Window Vac- A hero product created through
audacious execution
The growth (as indicated) would have been even greater had it not been for major losses caused by exchange rate fluctuations around the world. Business Unit profitability was held steady however through mix improvement and country turnarounds.
The challenge for Kärcher UK
Context:
- Kärcher UK had 60% share of the Pressure Washer market but was in the grip of the big box retailers who refused to to range product above £100, a price at which the Division barely broke even. Prices had not been increased for ten years.
- Pressure Washers constituted over 90% of the business. Two recent vacuum cleaner launches had failed and stock was still stuck in trade. Retailers were not waiting for Kärcher's latest line extension.
- The advertising budget was at 1% of sales. Exchange rate decline plunged Division into a serious loss.
Objectives:
Turnaround Consumer Division around to drive 10% growth and a positve bottom line
Strategy:
- Launch a £200, 'outstanding value', profitable Pressure Washer backed by advertising, tagged with stockists.
- Increase prices in two 12% increments 6 months apart in 2009.
- Continue building brand where it was strong (Pressure Washers) in 2010. Launch new DIY vac underpinned by personality-endorsed, programme sponsorship on Discovery Channel and bespoke Argos catalogue pages.
- Expand share of voice through high-profile PR 'Kärcher cleans Britain'
- Launch steam cleaners in 2011 and window vac with blockbuster advertising campaign in 2012.
Results:
- 38% growth between 2011 vs 2008 at 6% operating income. By 2015, turnover was £100m, over 3 times bigger than when I took the reins in 2008.
- The attention-grabbing 'Celebration' commercial and media 'cherry-pick' strategy won bronze from the Institute of Practicioners in Advertising (IPA).
The highly impactful 'Celebration' advert created by HMDG made a small media budget go a long way, enabling sales of the special jubilee package at double the average pressure washer retail price and turnover growth of 25% in 2009
Full mix activity from: International rugby hoardings; national press strip advertising; new packaging for the Jubilee package and brand-asset leveraging, on-pack labels for the rest of the range; retailer catalogues and new merchandising put Kärcher UK turnover on a steep climb upwards whilst significantly improving profitability.
Brand enhancing PR
Kärcher cleans Britain was designed by Shine Communications to put a bit of fun back into cleaning and drive high profile media coverage. Voting on facebook for which street should be cleaned, presentation by Phil Spencer and the reverse graffitti of Will and Kate was featured on prime time local TV and radio news.
New category launch - DIY multi-purpose vac
Kärcher's consumer business was heavily reliant on pressure washers and needed a successful entry into the wet and dry vacuum cleaner market. The repositioning, the endorsement of Tommy Walsh, the sponsorship of DIY programming on Discovery with HMDG idents, enhanced packaging labels, retailer catalogue pages and web activity brought the category to life at a level of investment which generated payback
The challenge as Marketing Director of Dunlop Slazenger UK
Context:
- Dunlop Slazenger had stagnated in the UK; brand decline having confined sales to the budget segment.
- Sports like cricket had been neglected. Advertising budgets were tight.
Objetives:
Turn company around and put it on a trajectory for sustained growth.
Strategy:
- Grow tennis, especially premium rackets, by tapping into the emotion of sport, the charisma of the stars and the excitement of Wimbledon with adventurous PR and video.
- Grow cricket with advertising and innovative media showing the advert featuring the Slazenger batsman who was actually batting at the crease at the time.
Results:
- Sustained growth with 5% year 1, 11% year 2 and a strategy for 15% growth in year 3. Double digit category growth in cricket.
Media week award for the targetted media of the Cricket campaign; Slazenger ball man walked the queues outside Wimbledon gates; competitions to win premium Henman rackets.
The challenge as Consumer Power Tool Marketing Manager of Black & Decker France
Context:
- Power tools was a complex business with an 18 product group portfolio. B&D was a prolific innovator and led the market with 34% share. Constant focus on novel innovations was driving a gimmicky image for the brand.
Objectives:
- Deliver 5% turnover and 1% share growth at constant gross margin whilst improving brand image.
Strategy:
- Analyse portfolio media investment with Boston matrix and lifecycle techniques and redirect spend.
- Launch Wallpaper Stripper with heavyweight campaign. Abandon Alligator and Powerfile TV. Reduce Screwdriver spend with shorter formats and innovative merchandising. Reinvest in cordless drill to combat brand image decline.
- Enhance toughness in below-the-line imagery. Team up with 'tough' brands to enhance brand positioning.
Results:
- Planned 5% turnover at constant Gross Margin achieved. 1% share growth took B&D share to 35%
- Wallpaper Stripper achieved year 1 sales of 150,000 pieces.
The Wallpaper Stripper launch success was featured in LSA. Nielsen numerical distribution statistics showed that complaints about stock-outs were unfounded but that the small boxes were getting lost at the back of the shelves. Gondola-end towers and the first sprung-loaded merchandising kept the screwdriver visible, enabled media reductions and shorter formats and prepared the way for putting cordless drills back on TV. Drill advertising, departure from pristine catalogues to show products at work and the Land Rover sweepstakes, put the 'tough' back into the brand positioning "Tough tools for tough jobs"