MARKETING MANAGEMENT
The NIVEA label is among the most acknowledged beauty and skin care lines in the sphere. Nivea jelly was first initiated in 1991, and its brand now expands to 14 international commodities, which range from facial moisturizers to sun care, shower products, and deodorants. In 1980, Beiersdorf, an international firm that possesses Nivea initiated its NIVEA FOR MEN variety globally, which broke the current base with its after crop balm product. It was the initial cream in the market without alcohol and could irritate the derma. It turned out to be extremely popular with customers (Hitt, Ireland & Hoskissson, 2007, p. 46). In 1993, NIVEA FOR MEN generated a variety of men skincare commodities. It indicated the flourishing social adoption of these commodities with the male customers. The label was in a position to make the most of its understanding of the derma care market. The firm’s research indicated that men mostly wanted derma care products that shielded the physiognomy after shaving. Males were ready to purchase products that assisted soothe and calmed irritated derma that is generated by shaving (Perrey, Freundit & Spillecke, 2105, p. 35).
The NIVEA FOR MEN label was initiated in the United Kingdom in 1998. During this time, annual sales of men’s derma care products, which included shaving and facial preparation in the United Kingdom, were just $68 billion with the men facial commodity sector value being just $7.3 billion. Selling of male derma care commodities has grown consistently since the initiation of NIVEA FOR MEN. In 2008, the value was over $115 billion with men facial commodities value being $49 billion. However, NIVEA FOR MEN desired to raise its share in the United Kingdom derma care market. NIVEA competitors include Johnson and Johnson Petroleum jelly and Ponds skin care (Trost, 2013, p. 19).
SWOT Analysis
The SWOT analysis is the process of identifying the business’ weaknesses and strengths and assessing the threats and opportunities that might have some influence on the owners. SWOT analysis could be applied to analyze the company and its setting. Conducting a SWOT study can assist a businessperson to recognize changes that could be created to improve their business. The primary purpose of conducting a SWOT analysis is to divulge positive forces working together and future problems that require to be identified and possibly tackled (Swett, 2013, p. 27).
Strengths
1. Nivea is an international label that has about 20 product brands in more than 60 countries.
2. Nivea has high brand equity and recall.
3. A powerful distribution network.
4. The box white and a blue pigment as its label element.
5. Outstanding brand and advertising visibility that makes it a leading brain brand.
Weaknesses
1. Nivea balm is seen as a cold season cream due to its oily and thickness consistency. It limits the selling of Nivea derma balm mostly to winters.
2. Intense competitiveness in derma care segment.
3. An urban market phenomenon
4. High pricing that decreases the target market
5. Controversial marketing that often prompts to legal matters
Opportunities
1. Well established and reputed global label, every opportunity to expand in the unfolding economies also
2. Nivea has the opportunity to enlarge market share
3. Entrance in men’s sector by focused commodities
4. Powerful positioning in fast developing anti-aging commodities markets
5. Focus on tactical initiatives for unfolding cosmetics markets
Threats
1. Fame of other derma care labels
2. Fierce vending from competitors while Nivea yet lies on the sluggish front.
3. Growing counterfeit products market
4. Currency fluctuations
5. Intense competition prompting to increased functioning expenses
In the SWOT scrutiny, strengths explain the core capabilities of deals, strategic components that might make a definite project more probably to thrive and sectors where the trade might have benefits over other equivalent businesses. Strengths are also the aspect of the trade, which permits a person to function more successfully than his competitors. A businessperson obtains information about strengths from their perspectives and their customers’. Honesty and realism must prevail. For instance, if a well-known Nivea company intends to initiate a new commodity, brand recognition may be recorded as an advantage. Traders that are enlightened about their advantages are better competent to exploit and improve them to their benefit (Keler, 2008, p. 62). Nivea has a powerful distribution network because of its popularity and the excellent marketing and brand conspicuousness that make it the leading brain brand. Nivea outstanding brands and advertising visibility makes it a leading of the brain brand as well (Keller, 2008, p. 62).
Weaknesses are issues that could make a definite project less probably to triumph. They are sectors that a firm is specifically lacking as well. When weaknesses are pinpointed, a trader takes measures to lower the effect to change them to strengths. Weaknesses are sectors that are capable of enhancement. For example, the Nivea lotion is seen as a cold season cream due to its oily and thickness consistency hence its sales are restricted mostly to winters. Due to its high prices, its market target is decreased drastically. Nivea is not popular among the rural people hence, is regarded as an urban market phenomenon. Nivea controversial marketing strategies often prompt legal matters with its competitors (Ramaswamy, 2009, p. 40).
Opportunities are issues with the potential to grow benefit, profits, or productivity of businesses in several ways. These opportunities include changes in regime regulations that could make it simpler for a trader to make earnings, new technology, new markets, and unfulfilled customer needs. Taking and recognizing the advantage of the chances are important features of operating a victorious business. Nivea is a well-established and reputed international label hence creating every opportunity to enlarge in the unfolding economies. Therefore, it has a chance to raise the market share as well. A focus on tactical initiatives for unfolding cosmetics market, powerful positioning in fast developing anti-aging commodities market are among the opportunities facing Nivea firm (Leeman, 2010, p. 30).
Threats have the power to destroy a business. They could be internal or external, and refer to factors that affect the business adversely. External threats can be new legislation, new competitors, or inflation in the market while the internal threats can include staff and skills shortage in the organization. For instance, if a person runs a Nivea company in town, the likelihood that a current competitor will start a business and take some of the customers is considered as a threat. The fame of other derma care and currency fluctuations are considered as threats to Nivea products. Increased competition facing Nivea is also a threat since it prompts to more functioning expenses. Another threat is the high growth of counterfeit commodities market. Customers end up buying fake products due to counterfeit ones. Fierce vending from competitors is another threat facing the Nivea Company. Unfavorable amends to higher taxes, laws, and amends in customer preferences are other potential threats. Recognizing a threat could assist the Nivea manager to restrict its impact (Cuyvers, 2001, p. 23).
Bibliography
Perrey, J., Freundt, T., & Spillecke, D. 2015. Power Brands Measuring, Making and Managing Brand Success. Weinheim, Wiley-VCH.
Cuyvers, L. 2001. Globalization and social development: European and Southeast Asian evidence. Cheltenham, UK, Edward Elgar Pub
Kapferer, J.-N. 2008. The new strategic brand management: creating and sustaining brand equity long term. London, Kogan Page.
Leeman, J. 2010. Supply Chain Management: fast, flexible supply chains in manufacturing and retailing. Düsseldorf, Institute for Business Process Management.
Ramaswamy, V. S., & Namakumari, S. 2009. Marketing management: the global perspective, Indian context. [Delhi], Macmillan.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. 2007. Strategic management: competitiveness and globalization; [concepts and classes]. Mason, Ohio [u.a.], Thomson South-Western.
Keller, K. L. 2008. Best practice cases in branding: lessons from the world's strongest brands. Upper Saddle River, NJ, Pearson/Prentice-Hall.
Swett, P. 2013. Selling under the Swastika Advertising and Commercial Culture in Nazi Germany. Palo Alto, Stanford University Press.
Trost, E. 2013. Social media marketing in BRIC countries: examining case studies of BMW, Adidas, and NIVEA.
