Akzo Nobel Uk

Leif Abildgaard, managing director of Akzo Nobel UK needed to make several key decisions in order to ensure the success of the firm’s Trade business. Looking at the business which targets professionals through traditional paint merchants, building merchants, and Nobel’s distribution outlets, there is room for improvement. In my opinion, Akzo Nobel’s brand portfolio in the UK includes too many brands targeted at trade customers.

In deciding whether to delete brands from the Trade portfolio, Akzo Nobel should first look at all of the brand’s in the company’s trade portfolio, analyzing key metrics such as global market share, annual sales, geographic regions where those brands are being sold, and brand perception among its intended consumer targets.

In order to streamline the portfolio, I would take steps to retain only those brands that are number one or number two in their segments, as measured by market share, profits, brand perception and intended target. Based on set criteria such as “is the #1 performer in terms of market share amongst it’s competitors,” we can assign qualitative rankings to the brands such as “strong” or “weak” brands, making it easier to decide which to delete. Additionally, brands that are more profitable than others can be considered “cash cows” in a typical BCG matrix could remain in the portfolio.

Among the 6 brands within the trade business, two brands stand out as brands that should be kept. Overall, I would keep both Crown Trade and Sandtex because as the case shows, they are both strategic national brands for the firm that fit well with the retail business, but for slightly different reasons. According to Exhibit 11, Crown Trade requires the most expenditure, but it is considered one of the firm’s strategic brands since it appeals to generalists with it’s sub-brands Colorfects and Timonox. Though the case does not mention it, it could be the case that