MARKETING

PLANNING

TABLE OF CONTENT

INTRODUCTION

TASK 1

TASK 2

TASK 3

11

REFERENCES

17

INTRODUCTION

Page 2 of 10

This assignment introduces the concept of relationship marketing with an explanation of

the current trends and development of marketing and customer relations, for the purpose of
guiding the Nivea towards a more beneficial and effective long term marketing strategy. It
provides a detail marketing audit with supporting analyses of the Nivea current situation as
well as suggestions for future marketing strategies.

Task 1

Page 3 of 10

1.1 Changing perspectives in marketing planning

Perspectives regarding marketing planning have changed over the years from when
companies have noticed that there were different ways to appeal to customers, especially
when technologies have been used. Before now companies had relied on sales door to door
and making advertisement in local stores with leaflets and posters, now companies can eadvertise for reaching million of customers with Facebook, email, television and partnership
in marketing with other companies.
Within the years of 1900 people saw changes in marketing from single sale transactions to
marketing relationship; where companies are creating and appreciating the customers values
and are trying to built relationship which are strong with them for valuing the company and
would want to keep coming back, which is resulting in the loyalty of the brand and
relationship on long term.
These new thinking ways about the developed marketing into the concept of Customer
Relationship Management which is suggesting to keep customers for a long life. Because of
the development, planers in marketing is changing and focusing on strategies not on tactics.
The production concept: Nivea holds that consumer with perfect products that are wildly
available. Managers focus on this concept and concentrate on achieving high production
efficiency, low cost and mass distribution they assume that consumers are primary
interested in product availability and low prices. This orientation makes sheens in
developing countries, where consumer is more interested in obtaining the product than in
its features.
The product concept:

This orientation holds that consumers will favor those products

that offer the most quality, performance, or innovative features. Managers focusing, on
this concept concentrate on making superior product concentrate on making superior
products and improving them over time. NIVEA VISAGE Young is a skin care range
targeted at girls who do not want medicated products but want a regime for their normal
skin. Competitor products tend to be problem focussed and offer medicated solutions.
This gives NIVEA competitive advantage. NIVEA VISAGE Young provides a unique
bridge between the teenage market and the adult market.(Nivea, 2014)
The selling concept: This is another common business orientation. It holds that
consumers and business. If left alone, will ordinarily not buy enough of the selling
company product. The organization must therefore undertake an aggressive selling and
Page 4 of 10

promotion effort. Beiersdorf is an international skincare company with leading brands

such as Nivea and Eucerin. They have expanded significantly in the UK market through
effective segmentation that matches consumer needs. The company has become the value
leader in the field, meaning people spend more on Nivea sun protection products than any
other brand.
The marketing concept: It holds that the key to achieving its organizational goals consists
of the company being more effective than competitors in creating, delivering and
communicating customer value to its selected target customers. For example, the
distribution of free samples encouraged trial of NIVEA FOR MEN products which drove
purchase. These promotions have helped build up brand awareness and consumer
familiarity which reinforce the NIVEA FOR MEN brand presence. There is a dedicated
NIVEA FOR MEN website to support its products and provide information to educate
men on their skincare needs.

1.2 The organization capability for planning

The organizational capability is being defined in term of core competence, strengths and
weaknesses, synergistic effects, resources and behavior. Its representing the organization
capacity for using strengths to overcome the business weaknesses and creating opportunities
and facing its external environment.
Is important for Nivea that this first be done by the leaders on the top level because they
are coming with certain conclusions about how the business will be in future. When leaders
from the level on top are deciding to make a plan, this one must be passed on the second level
for determining how this plan will be carried out by the leaders form the top level in the most
appropriate way for achieving the maximum results.
In 2008 NIVEA re-launched NIVEA FOR MEN and prepared market plan to achieve its
objectives. NIVEA developed its marketing plan after the marketing research. Basically
marketing plan of NIVEA used following data to re-launch of NIVEA FOR MEN:A. Past performance data.
B. Forecasting data to create a new marketing strategy.

Page 5 of 10

Marketing team of NIVEA sets smart objectives for the NIVEA for men re-launches. These
are specific, measurable, achievable, and realistic and time constrained. This helped them set
specific targets for increasing sales and it also helped them in growing market share and
improving its brand Image. The NIVEA brand has always stood for good quality products
that are reliable and user-friendly. The brands main vales are security, trust, closeness and
credibility. These values would be strengthened and expanded on with the re-launch, so more
men and women to think of NIVEA as first choice.
The other one for the UK marketing strategy for the re-launch was promotion. NIVEA
develop the approaches it had used in the past. During 1980s, the advertising tools were
fashion magazines and product sampling. In the 1990s the NIVEA used radio, television and
press advertising together with sampling but after 2000 the company started giving more
emphasis on consumer needs and an increasing use of two way communications in the
Promotional mix. Its helps in building an emotional connection between the brand and the
consumers NIVEA for men also adopted a range of key performance indicators to assess the
success of the NIVEA for men re-launch. For example the market shares, overall sales, brand
image ratings, product innovation, etc.
1.3 Technique of a marketing audit
The marketing audit must be used as a tool of reference updating the constant changes in the
internal and external business environment.
PESTLE analysis: this is a macro environmental framework used to understand the impact
of the external factors on the organization and is used as strategic analytical technique.
PESTLE is analyzing the internal and external environment which affects Nivea and it is
also known as macro-environment; PESTEL stands for "Political, Economic, Social,
Technological, Legal and Environmental factors.
Nivea is using information from this environment to determine the marketing strategies
which must be within the country government and to attract people from the region the Nivea
operates and what new technologies must use to respond better to its public.

Page 6 of 10

BCG Matrix: The Boston Consulting groups product portfolio matrix (BCG) is helping the
business to establish their strategic planning in order to consider their opportunities of growth
by reviewing their products and taking a decision regarding where it is good to incest and
develop more products.
The principle is to rank and review the performance of its businesses in an analogous way to
a portfolio of investment.
The matrix is important for Nivea
because a balance of the business is
maintained where each is in a different
stage of competitive power and growth.

Page 7 of 10

SWOT analysis: SWOT stands for 'Strengths, Weaknesses, Opportunities and Threats'. This
is a method of analysis of the environment and the company's standing in it.
The point of a SWOT analysis is to help the Nivea to develop a strong business strategy by
making sure theyve considered all of their businesss strengths and weaknesses, as well as
the opportunities and threats it faces in the marketplace. It has to be done after the technique
described above because that analyses feed into SWOT.
STRENGTHS
A. As NIVEA FOR MEN brand was launched in 1998, they have created a strong base in
UKs market. It had strong brand recognition in UKs market .So they were very
much confident that , re-launching the brand would not affect the company, however
it would help to increase its shares in the UKs male skin care market.

B. The company had a sound financial base, as they were operating successfully in the
UKs market since last 10 years. They were very much aware of the changing demand
of the UKs consumer. So, it had the resources to put together the strong marketing
campaign.

C. It had the strong research and development department with scientific skills to
develop product. As they were the first company to successfully introduce a facial

Page 8 of 10

cream without alcohol, this attracted a large no. of consumer. It also had staff with
relevant skills topromote the product effectively.

WEAKNESS
A. NIVEA FOR MEN introduced the product in limited range; it doesnt fulfil all the
requirements of a man.

B. There were no set model for the marketing plan in NIVEA FOR MEN specifically in
UK, otherwise it would not had been taken 10 years to re-launce the product once
again, they could have done the re-launching several years back to increase the market
share.

C. NIVEA FOR MEN did not have the specially designed outlet for men, they promote
the mens product along with the other womens product in the womens outlet.

OPPORTUNITY
A. NIVEA FOR MEN has seen the increase in the sales of male skin care production, so
there was a great opportunity to re-launch the product and make the maximum profit
out of it.

B. There were great opportunities as men were becoming more open towards the skin
care product.The company wanted to take advantage of changing social attitudes.

THREATS
A. As the demand of the mens skin care products had increased, other companies started
introducing the mens product in the market which could gave a great competition to
NIVEA. Eg.- lotus, Rodial, Dermalogica, Olay.

Page 9 of 10

B. Consumer becoming more knowledgeable and price conscious, they often expect
sales promotion such as discount and offers, it would affect the return on investment
in terms of sales and profit.
With the help of this they were able to conduct and evaluate their business, brands and
products, in such a way so that there would be optimum utilization of the available resources.
1.4 Organizational audit
Macro- environment is including various factors which are influencing the organization
and which are out of the direct control of the organization. There are lots of factors which is
affecting Nivea and for analyzing them there has been used a PESTLE analysis:
Political factors: For maintaining a social market and for being able to provide a health and
stable environment for business to be able to develop economical activities there is one
responsible such as government.
Economic: is affecting the business performance at a level which is local and international
which deals with exchange, interest rates and inflation. The organisation performs its
business in a strongly economical environment which is easily for operating the company
business in an effective manner.
Socio-cultural: is bringing change in the company policies regarding recruitment and location
and is having its base on the organisation beliefs which is following while operating in a
particular region.
Technological: there are various ways through which the organisation is managing and
extending their services regarding communication and promotions. The organisation is
providing products and services to their customers which are being made and sold in various
ways.
Environmental: represent all the factors which are influencing the organisation which are
being determinate from the surrounding environment of the business.
Legal: in order for the organisation to maintain the good running of their operations there are
various regulations and laws which are being supported by the organisation.

Page 10 of 10