GfK Restructures After Tsunami Loss

The GfK Group has announced a donation of EUR 300,000 in memory of missing Board Member Heinrich A. Litzenroth to a post-tsunami rebuilding project, and have reluctantly agreed a restructuring of the board to reflect his loss. The Group's five business divisions will give way to a new structure with three key leaders, all longstanding GfK employees.

The Supervisory Board acknowledged that there is now 'very little chance of Heinrich A. Litzenroth being found' and expressed its 'profound sense of shock'. It added that 'The loss of the Management Board Member responsible for the business division with the highest revenues placed the GfK Group in a very difficult situation'. The interim solution adopted in January is now formally ended and in accordance with legal formality, Litzenroth's Management Board appointment has been withdrawn and his responsibilities reallocated.

Litzenroth, who began his professional career with GfK in 1978. As a co-initiator of the development of BehaviorScan test markets in Germany and France and in his work to expand the services of test market research, his contribution was considerable. He was appointed MD of GfK Marktforschung in 1993 and since 2000 was the Management Board member with responsibility for the Custom Research business division.

GfK's business operations, previously organized in five business divisions, are now allocated to three areas of responsibility. One reason for this was to 'create comparable areas of responsibility in terms of size'. The three are:

• Custom Research: Point Of Marketing Decisions - the largest business division with EUR 252.1 million (provisional) and just under 2,000 employees, this relates mainly to custom-tailored information and advisory services. Petra Heinlein, previously responsible for the Media business division, will take over Custom Research, for which Heinrich A. Litzenroth was formerly responsible. Heinlein started as project manager with GfK Marktforschung in 1985.

• Retail And Technology: Point Of Purchase Decisions - supplies information and advisory services for the development of price, range and distribution structures in the technical consumer goods markets. With sales of EUR 187.0 million (provisional) and almost 1,700 employees, this is the second largest GfK business division, and continues under the guidance of Dr. Gérard Hermet. Dr. Hermet started with GfK in 1984 as MD for GfK France.

• Consumer Tracking/Media: Point Of Consumer Decisions - And The Specialized Division, Healthcare - these three divisions had 2004 sales totalling EUR 224.7 million (provisional) with just under 1,440 employees. Wilhelm R. Wessels, previously responsible for Consumer Tracking and HealthCare, will take over responsibility for these. Wessels began his career with GfK in 1978, became Managing Director of GPI Gesellschaft für Pharma-Informationssysteme in 1986 and later Managing Director of pharmaceutical and healthcare research subsidiaries operating in Germany.

Christian Weller von Ahlefeld, 46, becomes the new Chief Financial Officer (CFO) from 1 June 2005. von Ahlefeld began his career in 1983 at J. P. Morgan, worked at SBC Warburg from 1995-6 as Executive Director, with a seat on the Management Board, for Siemens AG from 1996 to 2000, and since then for the Tele München Gruppe.

Dr. Klaus L. Wübbenhorst will continue in his capacity as CEO and from June will concentrate on Group strategy, contact with committees and boards, R&D, Public Affairs and Communications, Investor Relations, IT services and management resource development strategy.

The company is online at www.gfk.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.