Unit 19 - Marketing Planning Assignment HND Business and Marketing Level 5

Table of Content
M
A
R
K
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PAT
HW
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UNI
T 19
MAR
KETI
NG
PLA
NNI
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STU
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Avnish Kirit Hirani
Unit 19 Marketing Planning Student Number - 10710
Task 1 Compiling Marketing Audits......................................................................3

1.1: Changing Perspectives in Marketing Planning.............................................3
1.2: Capability of Planning Future Marketing Activity.........................................3
1.2.1: Managerial Capability............................................................................3
1.2.2: Financial Capability............................................................................... 4
1.2.3: Operational Capability...........................................................................4
1.2.4: Human Resource Capability..................................................................4
1.2.5: Brand Capability.................................................................................... 4
1.3: Techniques for Organisational Auditing and Factors That Affect Marketing Planning
........................................................................................................................... 5
1.3.1: SWOT Analysis....................................................................................... 5
1.3.2: PESTLE Analysis.................................................................................... 6
1.3.3: Porters 5 Forces....................................................................................7
1.4: NIVEA Organisational Audit.........................................................................8
Task 2 Barriers to Marketing Planning.................................................................9
2.1: Assessing the Main Barriers to Marketing Planning.....................................9
2.2: How Organisations Overcome These Barriers............................................10
2.2.1: Tactical and Strategical Confusion.......................................................10
2.2.2: Isolating the Marketing Function from Operations...............................10
2.2.3: Confusion Between Marketing Function and Marketing Concept.........10
Task 3 Formulating a Marketing Plan.................................................................11
3.1: Writing a Marketing Plan............................................................................11
3.1.1: Executive Summary............................................................................11
3.1.2 - Analysis of the Market........................................................................11
Needs by Segment..................................................................................... 11
Segment Potential...................................................................................... 11
Analysis of Current and Potential Competitors...........................................12
3.1.3: Planning for Marketing........................................................................13
3.2: Essentiality of Marketing Planning in Strategic Planning...........................14
3.3: Techniques for Product Development........................................................15
3.3.1: Product Strategy..................................................................................15
3.3.2: Product Development Processes and Techniques................................16
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Fuzzy Front End Process............................................................................. 17
Ansoffs Matrix........................................................................................... 17
3.4: Pricing Strategy (Financials), Distribution Channels and Communication Mix
18
3.4.1: Pricing Strategy...................................................................................18

Financials................................................................................................... 19
3.4.2: Distribution Channels and Transport...................................................19
3.4.3: Communication Mix............................................................................. 20
3.5: Factors Affecting Implementation of Marketing Plan.................................22
Task 4 Ethical Issues in Marketing.....................................................................24
4.1: Ethical Issues and How They Influence Marketing Planning.......................24
4.1.1: Ethics of the Marketing Mix.................................................................24
Product....................................................................................................... 24
Price........................................................................................................... 24
Place........................................................................................................... 25
Promotion................................................................................................... 25
4.2: How Organisations Respond to Ethical Issues...........................................25
Child Labour.................................................................................................. 25
Transparency................................................................................................. 26
4.3: Effect of Consumer Ethics on Marketing Planning.....................................26
References......................................................................................................... 28
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Task 1 Compiling Marketing Audits
1.1: Changing Perspectives in Marketing Planning
NIVEA is one of the worlds most recognised skincare and beauty brands, introduced in
1911. In 1998, NIVEA for Men was launched exclusively for male skincare products and in
the 10 years leading from its launch, the market for such products was worth 117million.
Unfortunately, the value of male skincare products was worth only 49million for NIVEA.
That is why, in 2008, NIVEA went through a complete re-launch of the brand and
subsequently went through a whole new marketing campaign (The Times 100, 2009).
Planning for a new marketing strategy or plan involves taking aims and objectives of the
organisation and forming a series of activities which makes sure that the aims and
objectives are met sufficiently. The length of time for a marketing plan can depend on the
aims and objectives of the company but usually activities spanning the next one to five
years are implemented and planned for. A marketing plan usually consists of the
following:
SWOT Analysis to assess the brand or business
Objectives of the business or brand
Marketing strategy for how the objectives will be accomplished
Sales forecast how much the sales is expected to increase by after the
implementation of the marketing plan
Budget all the activities and figure out the financing of the plan
Evaluation of how the outcomes of the plan will be measured and monitored for
future eventualities
There has been a shift in the marketing strategies for NIVEA. In the 1980s, their focus on
marketing for male skincare products was primarily fashion magazines and free samples
due to the limited use and lack of technological means. Soon after in the 1990s there
was a greater availability of the technology and hence NIVEA started to market their
products through radio and television in cohesion with press advertising and product
samples (BusinessCaseStudies, 2009). One of the biggest changes for NIVEAs rebrand
was a mix of above and below the line techniques, one of which was forming a
relationship with major sporting leagues such as the Power League, to create a positive
image for male skincare.
1.2: Capability of Planning Future Marketing Activity

NIVEA has built up a very strong foundation since its inception in 1911. With regards to its
capability of planning any future marketing activity, we can break it down into 5
categories, which can give an insight into how capable NIVEA may be in planning any
marketing activity that occurs as follows:
1.2.1: Managerial Capability

As part of their Corporate Governance, NIVEAs managerial capability rests on the
managing capabilities of Beiersdorf, whose managerial structure starts with two
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executive management boards Executive and Supervisory, providing both a dual
management and supervisory structure as well as efficiency between these boards being
based on continuous communications (Beiersdorf, 2016). Shareholders also have a say
during the general meetings that happen annually and they get to have a say in the
company decisions. As far as marketing capabilities are concerned, they have a solid
foundation on which to report the marketing functions and strategies and the above
bodies are equally committed to that.
1.2.2: Financial Capability

Financial capability is all about having sufficient financial resources to run the operations
of a company. Beiersdorf have an extensive internal control system where their accounts
and financial figures are independently monitored and the financial statements are made
as reliably as possible to reflect the appropriate progress of the company (Beiersdorf,
2015). They also have a financial risk monitoring through customer relations monitoring
as well as active accounts receivable management.
A total of 125m Euros were spent on their research and development during their period
of financial reporting and their sales and operating margins were 23m Euros higher than
previous years and 12.6% respectively.
All in all, NIVEA have sufficient funds and financial systems in place to protect their
investments in marketing as well as having appropriate cost structures to carry out their
marketing plans and strategies in the future.
1.2.3: Operational Capability

NIVEA, together with an umbrella of companies, report their operations to Beiersdorf, who
publish their sales and profits each year. Earlier in 2016, Beiersdorf reported a 15%
increase in their profits due to the strong sales of NIVEA products (Emmerentze, 2016).
These figures were obtained during a period of challenging economic conditions. All
regions where these products are sold reported of excellent sales figures with the highest
performer being in Latin America.
1.2.4: Human Resource Capability

Beiersdorf, the owners of NIVEA, have a human resource policy based on the Blue Agenda
an agenda which defines the course being adopted to solve challenges in the future
and using them to reach the goals (Heidenreich, 2013). As well as this, the role of their
employees is emphasized for the long term success of the company and all human
resource decisions are taken in line with their Core Values, which unite all employees
across various functions, countries and hierarchies.
They also encourage the promotion of a working environment for employees to show not
only their skills and potential but also how they can develop opportunities further (Pllath,
et al., 2015). This is something that encourages employee commitment and helps to
make NIVEA and all the other companies under the Beiersdorf umbrella one of the most
reliable and reputable employers in the industry.
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It is for this and the above reasons that NIVEA have a more than capable human resource
capability to continue to market their products using a suitable marketing plan in the
future.
1.2.5: Brand Capability

NIVEA has been established for over 100 years as a reputable skincare and beauty brand
and it is because of this reputation that they will have a brand capability to setup any
future marketing plans for their future products. They have sound brand values and these
are incorporated under all that they do and make.
1.3: Techniques for Organisational Auditing and Factors That

Affect Marketing Planning
An organisational audit is a formal activity, aimed at reviewing the systems and
mechanisms of a business. Rather than looking for errors, the organisational audit is
aimed at improvement and risk management of the systems and mechanisms of the
business (BNG, 2014). Various techniques are used to carry out such an audit and quite
frequently, involve breaking down the organisation into categories or lists, just like the
following 3 techniques:
1.3.1: SWOT Analysis

One of the most commonly used techniques used by organisations during audit is SWOT
analysis. This is considered the first stage of planning for marketers and it helps during
times where they need to focus on key issues. SWOT is an acronym made up of 4
headings:
Strengths Positive internal factor
Weaknesses Negative internal factor
Opportunities Positive external factor
Threats Negative external factor
The purpose of this analysis is to give organisations a chance to turn their weaknesses
into strengths and their threats into opportunities (MarketingTeacher, 2013). Doing so will
not only enable organisations to have a better picture of their operations but will also
increase the value for consumers of the organisation, thereby increasing their
competitive advantage.
There are several rules to follow when carrying out a SWOT analysis which can help make
it more effective to implement:
Apply the analysis in relation to the organisations competition

Keep the analysis short and simple. Over complicating will create problems
Strengths and weaknesses of the organisation should be realistic
Distinguishing between where the organisation currently is and where it will be in
the future is important during SWOT analysis
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As common as this technique is for an audit of an organisation, SWOT analysis has a

number of limitations which can be resolved using POWER SWOT (MarketingTeacher,
2013):
Personal Experience The perceptions of the marketing manager alone will impact
SWOT as well as the experiences, skills and knowledge bought to the audit
Order In some situations, marketing managers will reverse SWOT such that
strengths and opportunities and threats and weaknesses are grouped together. The
reason for this is that the line between internal strengths and weaknesses and
external opportunities and threats is difficult to spot.
Weighting Quite often, the 4 headings of a SWOT analysis are not weighted.
Some aspects will be more controversial than others so it is important to weigh the
factors out using percentages.
Emphasizing Detail The level of detail and reasoning is usually absent from a
SWOT analysis. In most cases, there are one word analyses of each heading. For
example, consider opportunities under this heading, the organisation writes
discounting. This is not enough to explain why discounting is an opportunity for
the organisation. Explaining the context of each subheading will help to score and
weigh each element according to how important each one is.
Rank and Prioritise The addition of explanations for each heading leads on to
giving the SWOT analysis a deeper meaning. In other words, the organisation
should select specific factors which will greatly influence the objectives of the
organisation with a mix of strengths, weaknesses, opportunities and threats.
o Primarily, there is a ranking system that is needed, in which SWOT headings
are ranked highest to lowest.
1.3.2: PESTLE Analysis

Another method useful for auditing an organisation is PESTLE analysis. Many external
factors may have an impact on operations of a business and as such, the implications of
these factors must be understood. PESTLE is an acronym, comprised of the following
headings (FME, 2013):
Political are there any key political factors?

Economic are there any important economic changes that could impact the
business?
Sociological will a change in culture bring about a change in the business
operations?
Technological will technological advancements affect the way that the
organisation runs?
Legal is there any current or future legislation that may impact the business?
Environmental does there need to be a consideration for the environment?
Unlike SWOT analysis, the idea of categorising and ranking does not have much
importance here. The aim of PESTLE is to list as many factors as possible. It could be that
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a factor falls under two of the PESTLE headings, but the important thing here is to
consider the impact, rather than dwelling on trivial matters such as that. In the context of
a wider picture, PESTLE can be combined with external micro-environmental factors and
internal drivers to be classified with opportunities and threats in a SWOT analysis.
Considering that this method involves listing factors that affect the business, there is still
a step by step method to adopt when using the PESTLE method. This is known as the
PESTLE Analysis Process and it entails the following (FME, 2013):
Brainstorming and listing key issues not within the control of the organisation
Generically identifying implications of each issue
Rating each of them to the importance of the organisation (critical, important,
moderate, insignificant)
Ranking the likelihood of each one occurring (certainty, extremely likely, likely,
remote possibility, impossible)
Considering implications of the issues if they did occur
With any method of auditing an organisation, there are advantages and disadvantages to
consider whether it is the most suitable method for the organisation to use (FME, 2013):
Advantages
Simple and easy to use
framework of analysis
Reduces impact and effects of
potential threats to the
organisation
Provides a mechanism for the
organisation to identify and
implement new opportunities
Encourages strategic thinking
within the organisation
Disadvantages
Organisations run the risk of
oversimplifying the information
used in making decisions
This process is one that should be
implemented on a regular basis
organisations often do not do this
Access to decent information is
lacking if organisations would not
want to spend the time or the
money to collate it
Users of a PESTLE analysis should
not gather too much information so
as to forget about the objective of
using such an analysis tool
1.3.3: Porters 5 Forces

Another method of auditing an organisation is to use Porters Five Forces Model.
Developed by Harvard Business Schools Michael E. Porter in 1979, this model looks at 5
very specific factors that help to determine if a business can run in profit compared to the
other businesses in the industry. In other words this model is based on analysing other
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businesses in relation to the organisation competition is a big aspect of this model. In a
Harvard Business Review article, Porter emphasized the importance of this model:
Understanding the competitive forces, and their underlying causes, reveals
the roots of an industrys current profitability while providing a framework for
anticipating and influencing competition (and profitability) over time (Porter,
2008)
The five forces of Porters model crucially give understanding of the competitive forces
and the industry structure for effective decision making. Those five forces are as follows
(Arline, 2015):
1. Competitive Rivalry this forces analyses how large or intense the competition
is in the market, which is largely determined by the number of competitors and
their capability to carry out business. High rivalry occurs when there are very few
businesses selling the same product, the industry is expanding and when the
consumer seeks out an alternative competitor for a fraction of the cost
2. Bargaining Power of Suppliers this force looks at how much power a supplier
has and how much control they have over raising its prices which may lower the
profit levels of a business
3. Bargaining Power of Customers this force looks at the power of the consumer
which could affect pricing and quality. When consumers are in short quantity, they
have a greater power to influence price and quality, but when there are lots of
sellers, it makes it easier for the consumer to switch to another business to fulfil
their needs
4. Threat of New Entrants this force looks into how easy or how difficult it is for
new businesses to enter the market. The greater the level of easiness in entering
the market, the more risk there will be of the market share of a business depleting.
5. Threat of Substitute Products or Services this force studies the level of
easiness for consumers to move from a businesss product to a competitors
product. Again, the force looks at how many competitors there are, how the price
and quality compare and how much profit they are raking in.
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1.4: NIVEA Organisational Audit

NIVEA is a company running their operations under the Beiersdorf umbrella of companies.
The following PESTLE analysis is intended to give a bigger picture of their operations
under each of the headings and to give an overall idea of what the business environment
and their impacts are like:
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Task 2 Barriers to Marketing

Planning
2.1: Assessing the Main Barriers to Marketing Planning
As organised as a business may be in planning for its marketing strategies, there are
several barriers that may hinder the overall process of formulating a marketing plan. A
barrier is typically defined as something that slows or hinders the progress of a businesss
operations and is usually considered to have a significant on the business. In a paper
written in the Journal of Marketing Management, 10 of these barriers were detailed and
explained, of which the top 3 main barriers are explained here (McDonald, 1989):
Tactical and Strategical Confusion this is something that often causes a great
deal of confusion among marketers and PR functions to name a few. Such is the
problem that the meaning for the word strategy has lost all meaning as in the
modern day, everything has become a strategy. Such examples could be:
o Social Media Strategies
o Mobile Marketing Strategies
o Customer Engagement Strategies
These are in fact tactics to help support the Business Strategy. In other words,
the main strategies are what will help to support the overall objectives of the
business and the ways in which the achievement of these objectives will occur
(Coleman, 2012).
Isolating the Marketing Function from Operations One of the biggest
problems facing the failure of marketing planning is the belief that marketing is a
function done by a marketer. Often is the case that the appointment of a
marketing person is seen as a last minute, last-ditch exercise to resolve all issues.
o The appointment a new marketing person now means that, regardless of his
skills and aptitude for marketing, the control over the marketing function
rests with other people in different departments i.e. product development,
customer service and pricing to name a few.
o This means that whatever is left of the promotional mix, the new person is
responsible for those which is hardly anything, considering that the role of
the marketer is to handle the majority of the marketing function.
Confusion Between the Marketing Function and the Marketing Concept
this particular barrier is one which is made of several smaller barriers. McDonald
had close contact with 2000 senior managers a year and came to the conclusion
that there is a large depth of ignorance surrounding what marketing is. The
following are smaller barriers between the main barrier:
o Confusion with Sales an example of this is when a managing director
proclaimed that marketing was not needed unless sales were noticed in the
business without understanding that marketing is a key aspect in
increasing sales.
o Confusion with Advertising quite a popular misconception among many
annals of businesses. Companies like Dunlop and British Airways have
delivered award winning advertisement campaigns but have failed to deliver
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the product. Many businesses still believe that expenditure in advertising is
all that is needed to tackle any marketing related problem
o Confusion with Customer Service a phenomenon known as the Have a
Nice Day phenomenon is one that is prevalent in all companies that deal
with customers on a daily basis, yet the biggest corporations like banks and
public service centres are pumping millions into training programs to make
staff more customer friendly only to keep them closed when the consumer
needs them the most.
2.2: How Organisations Overcome These Barriers

Also in his landmark paper, McDonald recommended ways to overcome these barriers to
marketing planning. The above three barriers to marketing planning are some of the
biggest obstacles that organisations may come across and there are solutions to
overcome these barriers so that more effective marketing planning can take place
(McDonald, 1989):
2.2.1: Tactical and Strategical Confusion

Confusion between tactics and strategy can often confuse a tactical marketing plan with
a strategic plan. To overcome this confusion, it is recommended to develop the strategy
first, so that a detailed analysis of the external environment can be carried out. This
means carrying out Porters Five Forces analysis, SWOT analysis, PESTLE analysis along
with many other models. The reason for this is simple the organisation should identify
very early in the process, the forces present in the external environment and should
develop mini strategic responses spanning all levels of management to avoid out leaving
important factors and effects on the environment.
McDonald goes on to say also that the strategic plan should cover a time period of
between three to five years and only when this is finalised and agreed upon, the tactical
marketing plan should be enforced and carried out within a year. One of the biggest
mistakes an organisation can make is to write the actual marketing plan and extrapolate
the data in order to market the goods effectively McDonald states that this should be
avoided at all costs to eliminate the risk of any confusion arising in the process.
2.2.2: Isolating the Marketing Function from Operations

Keeping the marketing function from the overall operations can also be a big mistake that
organisations make. The general misconception here is related to what marketing
actually is. The absence of a corporate driving force dealing with customer satisfaction
means that marketing arguments are useless. McDonald reiterated that when the highest
management is thrown into the customer satisfaction process, their mistake is to
separate the function from the overall operations of the company. The recommendation
here is to keep the marketing as near to the consumer as possible. In other words, focus
the marketing on the consumer since that will reiterate what marketing is all about and
wherever possible in the organisation, marketing and sales should be reported to the
same person to avoid separating the entire marketing function from the operations of the
business.
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2.2.3: Confusion Between Marketing Function and Marketing Concept

Deemed as one of the biggest barriers to marketing planning, no organisation can form a
marketing plan without knowing what marketing is. The solution to this can be taken from
the dictionary definition of marketing. McDonald states that knowing what marketing is
lays the foundations for the marketing plan and without it, the organisation will fail in
their marketing strategy.
He states that marketing is a process of management where resources of the entire
company are used to meet the needs of the consumers to fulfil the objectives of the
parties involved. That being said, he adds that marketing is the attitude of mind rather
than a series of functional activities. This means that in order to clear the confusion
between function and concept, it is important to establish the link between the two and
to understand the deeper meaning behind marketing as a whole.
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Task 3 Formulating a Marketing

Plan
3.1: Writing a Marketing Plan

3.1.1: Executive Summary
Tennis is a big part of British sporting history, with Britain being the host of the most
prestigious tennis event in the world the Wimbledon Championships. A mix of players
from all around the world come to play and compete in these championships, with both
men and women competing to win the coveted Wimbledon Trophy. As a result of this,
NIVEA will be the sponsors of the 2017 Wimbledon Championships and will be creating a
new marketing plan to integrate their skincare products with sport, with the development
of a new range of sunscreen creams. NIVEA will incorporate the following sections in their
marketing plan and will hope to execute a successful marketing campaign after
implementation of this plan.
3.1.2 - Analysis of the Market

Segmentation Approach There are several ways in which NIVEA can work out a suitable
segmenting method. Segmentation of the market involves breaking down the chosen
market into segments that would make it easier for the organisation to narrow down and
pick the ideal market to target their products or services. There are many methods out
there that organisations can use to carry out this activity (Bennett, 2014):
Products Offered
Profession
Industry
Lifestyle
Demographics
Interests
Geographically
For the purposes of the event being marketed for, NIVEA is better off choosing to
segment their market demographically and by interests. The Wimbledon
Championships are of interest to tennis fans who come under both a male and
female category with each person in that market having various lifestyles and
interests. It would appeal less to the demographics of adults with children as there
are already a range of products available to suit the needs of families with small
children.
Needs by Segment
The Wimbledon Championships take place during July annually, which means that
it takes place during the summer season. In terms of the brand, NIVEA is a large
skincare and beauty products company, who target the mixed gender market i.e.
both men and women alike, so it is important to market their brand to suit both
male and female skincare needs. Having the Wimbledon Championships in the
summer means that the weather is likely to be very warm and hence it is important
to know which customers are most vulnerable to sunlight during the games. People
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with a high vulnerability to sunlight are more likely to use the sun cream whilst
people who perspire in the heat are more likely to use the deodorants.
Segment Potential
Wimbledon Championships are catered to people who can afford to go out of their
way and buy tickets to the games. In the 2017 Wimbledon Championships, ticket
prices have been calculated in range with centre court tickets starting at 56 for
the first day, increasing to 190 by the last day of the games (Wimbledon, 2016).
This shows that the ideal market segment of consumers are those who are well off
and those who can afford them. This is idea because NIVEA can price their products
accordingly, and target the segments more closely, rather than just by product.
The buying powers of consumers in the market segment is high, with prices in and
around Wimbledon being quite expensive as said before, the consumers are well
off and they can afford to buy items in and around Wimbledon, so NIVEA has a
chance to enter this market and successfully market their products.
Analysis of Current and Potential Competitors

There would be no such thing as a functioning market if there were no competitors,
so it is important for NIVEA to have a clear understanding of what they are up
against in the market for sun creams and deodorants. To help them, the following is
a competitors analysis to show NIVEA the companies that may hinder their
success for their marketing campaign:
Garnie
Lynx
Dove
NIVEA
r
Also
One of
known
Started
as Axe
the
as a
around
worlds
A
laborat
the
most
ory but
world,
personal
recognis
Ove
acquire
targeted
care
ed
rvie
d by
at the
brand
skincare
w
beauty
young
owned
and
giant
male
by
beauty
LOral
demogra
Unilever
brands,
in the
phic.
introduc
1970s.
Owned
ed in
by
1911.
Unilever
Co
All their
Monopoli
Using
NIVEAs
mp
product
stic
culture
competit
etiti
s have
propositi
to
ors offer
ve
Active
on of the
highlight
medicat
Adv
Natural
brand
their
ed
ant
Ingredi
name
products
solutions
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age
Targ
et
Mar
ket
Mar
ket
Sha
re
Mar
keti
ng
Stra
tegi
es

, offered
NIVEA a
ents
gap in
the
market
NIVEA
Women
Males
aged
18 Males
and
Women
35,
aged 16Females
aged
middle
18 and
aged 1835+/mi
to high
over.
34. High
ddle
income.
Targets
income
and
the
groups
NIVEA
higher
teenage/
and
for Men
socioyoung
upper
Men
econo
males
middle
aged 18mic
demogra
class
35,
status
phic
consume
middle
rs
to high
income
Under
42.75%
LOral,
from the
5.2%
19.6%
top three
Worldwid
in
share
in UK
Wester
e 6.5%
worldwid
(Lynx,
n
e
Sure,
Europe
Dove)
(2015)
Biggest
Line
Advertisi
In the
strateg
extensio
ng
past
y is
n brand
campaig
revampe
their
strategy
ns
d NIVEA
adverti
(new
centred
for Men
sing
forms of
on
in 2008
executi
the
women
by
on.
same
to bring
improvin
Celebri
brand
loyalty
g the
ty
name)
and trust
formulas
endors
to the
of
Multied
brand.
products
brand
without
Lowering
and
strategy
too
of
extendin
much
product
g the
individ
range to
product
ual
avoid
range
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Pro
duc
ts
Offe
red
(Su
n
Cre
ams
and
Deo
dor
ants
)
Prici
ng
and
Prici
ng
Stra
tegi
es

confusio
person
n among
a
consume
rs
22
No sun
Ambre
products
creams
74
Solaire
in the
offered.
Sun
deodora
products
20
Cream
nt
in the
antipers
Range
category
deodora
pirant
(13
, no sun
nt
sprays,
product
cream
category
18 body
s)
products
, 41
sprays in
Deodor
to offer
products
the UK
ants for
as they
in the
and
Women
are
sunmore
(24
oriented
cream
than 200
product
towards
category
worldwid
s)
bathing
e
products
1.65 1.50 1.20 1.60 2.80
6.00 in
5.00 in
2.50 in
in most
most
most
most
superm
superma
superma
superma
arkets
rkets for
rkets for
rkets for
for
deodora
deodora
deodora
deodor
nt
nt
nt
ant
No sun
No sun
8.50 8.50 creams
creams
11.00
11.00
on offer
on offer
in most
in most
superma
superm
rkets for
Penetrati
At first,
arkets
sun
on
it was
for suncream
Pricing
Penetrati
cream
(based
on
A mix of
on
Pricing
Value
innovativ
quite
Cost
Pricing
e
high
Based,
(based
product
prices,
Penetrati
on
strategy)
but now
on and
perceiv
it is
Skimmin
ed or
Value
g Pricing
estimat
Pricing,
e value
as they
17 | P a g e
Avnish Kirit Hirani
Dist
ribu
tion
Cha
nnel
s
SW
OT
Pro
file

know
in the
their
eyes of
custome
custom
r base
ers)
Supermarkets, Company Website, Amazon, Healthcare and

Drug Stores
Streng
ths:
Strong
R&D
capabili
ty,
excelle
nt
distribu
tion
networ
k
Weakn
esses:
Less
market
share
due to
late
entry
into
market
s,
higher
price
compar
ed to
other
brands
Oppor
tunitie
s:
Strengt
hs:
Advertisi
ng that
targets
the
youth,
good
distributi
on
channels
Weakne
sses:
Limited
to the
urban
market,
controve
rsial
advertisi
ng
leading
to legal
issues
Opport
unities:
Tie-ups
with
hotel
chains
and
large
Strengt
hs: High
market
share,
strong
marketin
g
campaig
ns
Weakne
sses:
Expensiv
e
marketin
g costs,
strong
competit
ion
Opport
unities:
growth
of target
markets,
product
line
extensio
ns
Threats
: Decline
in
bathing
Strengt
hs: A
clear
brand
image
(Blue
and
White
motif),
exponen
tial
brand
growth
Weakne
sses:
Seasonal
sales of
winter
creams,
competit
ion from
rival
manufac
turers
Opport
unities:
Expansio
n in
emergin
g
economi
es,
18 | P a g e
Avnish Kirit Hirani

reputatio
Deman
organisa
n allows
d for
tions,
for the
natural
limited
increase
cosmet
edition
in
ics,
products
market
entry
share
into
products
Threats
rural
, risky
: Sales
Threats
market
strategy
are
:
s
in their
seasonal
Popularit
Fit or
and
y of
Fabulous
Threat
extreme
competit
s: Price
competit
ors i.e.
campaig
compet
ion from
Dove,
n
ition
premium
Garnier
among
compani
etc.,
brands,
es like
fierce
existin
Burberry
marketin
g
and
g tactics
compet
Body
by other
ition
Shop
brands
3.1.3: Planning for Marketing
The above analysis has given a clear idea of what NIVEA should expect to
implement into their marketing strategy and the important points they should think
about when marketing the two new products at Wimbledon 2017. The below points
are an indicated summary of the above analysis, known as the description of
opportunity:
Needs: The appeal of Wimbledon is to males and females who have an interest in
tennis. Demographically and interests are two of the segmentation approaches to
be used where it was found that creams can be targeted at women aged 18-35 and
deodorants can be targeted at men aged 18-25. Also the weather is likely to be
very warm in the season so products can be ideally marketed to these people
Potential of Market: Tickets at Wimbledon are fairly expensive, so it can be
expected that the ideal target market will purchase the two products within the
price range allocated. They are also able to afford the products due to their middle
to high income socio-economic status. Given these circumstances, it can be said
that the buying power of these consumers is high as many of the merchandise and
food available to purchase around Wimbledon are also quite expensive
Product Concept: NIVEA has now come up with two brand new products in different
types. The first is a sun-cream targeted at women and the second is a deodorant
targeted at males. It is hoped that NIVEA will set aside these products from the rest
of their product line and it is also hoped that these products will become big sellers
19 | P a g e
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not just in Wimbledon but also in the future if the marketing plan is to be executed
successfully.
3.2: Essentiality of Marketing Planning in Strategic

Planning
Before going into the product development techniques that NIVEA could utilise, it is
important to know why marketing planning is essential in the overall strategic
marketing process for a large organisation such as NIVEA.
Strategic planning is a concept that is made for organisations to achieve specific
goals and objectives, hence the overall purpose of this process is to identify both
internal and external effects and internal and external opportunities that could be
used in creating a new tactic or strategy (Richards, 2015). Marketing planning is
essential in overall strategic planning because it can help to pick out new market
opportunities and competitive threats in the potential target for the business or
organisation.
Strategic planning sets out to discourage businesses from making rash and
impulsive marketing decisions. Just like a marketing plan, the strategic planning
process for marketing involves collection of information and then integrating that
information into an analysis that can help to define long term marketing goals
(Asadi, 2014). Companies, like NIVEA, come under an umbrella company like
Unilever, who usually have several strategic business units (SBUs) i.e. NIVEA is an
SBU of Unilever, Garnier is an SBU of LOral etc.
An integral part of strategic planning processes is the determining of the pats of
the business that should be sold or supported and one such approach is the BCG
(Boston Consulting Group) approach. This approach looks into two dimensions of
SBUs how well the industry is doing and how well the brand within the company
is performing, also known as market growth rate and relative market share
respectively (Friedman, 2011).
20 | P a g e
Description and
Features
A revolutionary new deodorant that msks and protects from bad odours
whilst maintaining natural smells of ingredients
Free of harmful chemicals linked to cancer and other diseases, otherwise
prevalent in 95% of other deodorants. 48 hour hold and sweatproof. Natural
ingredients such as Aloe Vera
Quality Strategy
Using the Pricing-Quality matrix devised by Kotler in 1988, the quality of the
product will be high, whilst maintaining a medium to high price range.
The high quality of the product will come from the ideas of using natural
ingredients in the final product, which will reduce the negative health effects
that other deodorants can have
Service Strategy
The service strategy will entail around the Wimbledon Event in that there will
be employees working in the stalls for NIVEA asking for customer feedback
There will also be an element of free samples to promote the deodorant and
this will create an element of 'try before you buy'
Competitive
Positioning
Already it can be seen that NIVEA has the competitive edge - deodorants,
just like sun creams in the news have been the subject of controversy,
highlighting heavy use of chemicals
NIVEA has designed a product with zero primary chemicals and more natural
ingredients - something which most deodorants rarely have
Estimated Costs
According to costs in supermarkets of sun creams, NIVEA's deodorant should

be estimated to cost 2.50 - 4.00. According to the buying power of
consumers it should be suitable in this price range because people who
watch Wimbledon live are expected to pay high prices
21 | P a g e
Product 2 - All
Natural Long
Lasting Deodorant
According to costs in supermarkets of sun creams, NIVEA's sun cream should

be estimated to cost 8.50 to 15.00
According to the buying power of consumers it should be suitable in this
price range because people who watch Wimbledon live are expected to pay
high prices
Already it can be seen that NIVEA has the competitive edge - sun creams in
the news have been the subject of controversy, highlighting heavy use of
chemicals
NIVEA has designed a product with less than 5% primary chemicals and
more natural ingredients - something which most sunscreens do not have
Estimated Costs
Competitive
Positioning
Description and
Features
A high intensity sun cream designed to act as a 3-in-1 cream that

moisturises, soothes and protects skin from the intense power of the sun
Less than 5% Oxybenzone, otherwise prevalent in 95% of other suncreams.
24 hour hold and sweatproof. Natural ingredients such as coconut oil and
shea butter
Quality Strategy
Using the Pricing-Quality matrix devised by Kotler in 1988, the quality of the
product will be high, whilst maintaining a medium to high price range.
The high quality of the product will come from the ideas of using natural
ingredients in the final product, which will reduce the environmental impact
of chemical usage
Service Strategy
The service strategy will entail around the Wimbledon Event in that there will
be employees working in the stalls for NIVEA asking for customer feedback
There will also be an element of free samples to promote the cream and this
will create an element of 'try before you buy'
Product 1 - All
Natural SPF 50
Sun-Cream
Product development for NIVEAs two new products can be carried out in several
ways, but before that, a product strategy will follow. Since NIVEA is planning to
3.3.1: Product Strategy
3.3: Techniques for Product Development

Avnish Kirit Hirani
Avnish Kirit Hirani

market yeo products, it is important to know, in detail, the descriptions and various
product features of each:
Now that the product specifications and concepts have been identified, there are
several approaches to product development that can be used in the development
of the above products.
3.3.2: Product Development Processes and Techniques
Product development is the process of making a product and marketing said

product to the general public. It entails a long and arduous process, which covers
all aspects of product development from generating ideas and concept testing to
the actual development and commercialisation of the product. In this modern day
and age, a business may choose to follow a standard order of product
development, but in terms of marketing planning, there are some alternatives that
a business could use to create a better product development procedure. Standard
processes of product development are the process of eight stages and the fuzzy
front end process:
1. Eight Stage Process: This process is comprised of the eight stages necessary to
successfully develop a product. It is a process that details an approach unlike any
other that ensures the needs of customers are met as well as meeting financial and
business objectives (Linton, 2012) and an implementation of such a process
reduces risk of failure and reduces the time and resource wastages. The eight
stages are summarised below (Brands, 2014):
a. Idea Generation This involves carrying out basic internal and external
SWOT analyses whilst also analysing current trends and keeping the new
product development process as simple and nimble as possible.
b. Screening the Idea This is where the setting of criteria takes place, by
singling out ideas that should be dropped or continued. Being critical is key
here, as any bad or unintelligible ideas should be scrapped.
c. Testing the Concept This involves asking a random sample of the target
group to test the concept. Instead of things like patent research and other
legal aspects aligned to new product development, knowing where the
messages that are being conveyed will work is a big part of testing.
d. Business Analytics At this stage of the process, the development team
for example, will build a measurement system to measure various stages of
the process such as average times for each stage, sales volume expected
etc. These figures should provide useful feedback and the organisation
should be in agreement of these figures.
e. Beta Testing A physical prototype of the product is generated and the
formation of test panels can help to tweak the product with last minute
recommendations and improvements.
f. Technical and Product Development This is the main stage in the
process where the product is produced, distribution plans are made and
finance is bought together to introduce the product. This is all dependent on
whether technicalities can be perfected without alterations to post-beta
products.
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g. Commercializing At this stage, it is all about keeping the distribution lines
and channels for your product open and running because by now,
consumers will have been purchasing your product and technical support
will continually monitor progress. Changing up marketing and advertising
plans also helps to keep the brand name in the mind of the consumer and
will help to strengthen the brand loyalty
h. Post Launch Reviewing and Perfect Pricing This stage aims to help
review the entire process, and look for improvements continually. This
includes differentiating consumer needs based on how the product changes
and improving distribution and delivery processes.
Fuzzy Front End Process
Another such process is known as the Fuzzy Front End process, which is somewhat
similar to the eight stage process, except this process centres around fixing and
eliminating the common front-end failures of a marketing campaign or strategy.
The name of the process comes from the idea that making the management of
these failures complicated and magnified leads to a fuzzy outlook on the overall
picture. Many of these challenges happen at the first stage of the strategic
innovation process and the word fuzzy is appropriate since there is no other stage
of the process where a future context of innovation is complex and uncertain
(Mootee, 2011).
1.
2.
3.
4.
5.
6.
7.
This fuzzy front end of the process has seven phases, many of which are similar to
the eight stage process mentioned above:
Uncover Customer Insights
Develop Strategic Foresights
Sense Making and Mapping Opportunity
Concept Development
Concept Prototype
Customer Co-Creation
Brand and Market Assessment (Mootee, 2011)
Ansoffs Matrix
The Ansoff Matrix, also known as a Product-Market Expansion Grid, is another tool
that organisations use for new product development. First published in the Harvard
Business Review in 1987, the Ansoff Matrix details 4 strategies that can be used,
which can also help with analysing the risks involved with each. Moving from
strategy to strategy means that the risk of embarking upon each one increases.
Shown below is a standard Ansoff Matrix, which consists of the four quadrants,
each with a different strategy:
Products
and
Services
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Avnish Kirit Hirani
Existing
New
New
This
is the
riskiest
of the
four
strategies
a new pro
This is where an existing product is thrown into an entirely
brand
new
market,
which
can
be risky,because
but not always.
Fi
Markets
This is the safest of the four strategies. Expanding sales of the product
the existing
market
is market
the key penetration
point here. At
This is in
slightly
more risky
than
as thi
an
Existing
In terms of NIVEAs product development, the process that applies best here is the
eight stage process. The reason for this is because they do not at present have any
pre-development failures to improve upon and so they would not have to deal with
the Fuzzy Front End Process. On the Ansoff Matrix, NIVEA would be bringing a new
product into an existing market i.e. sun creams and deodorants into Wimbledon. It
is arguable that NIVEA may be carrying out a diversification strategy but since they
have sponsored other sports in the past (Power League), Ansoffs Matrix says that
NIVEA is more towards the Product Development Strategy i.e. they will not know if
the product has worked unless they successfully carry out a marketing strategy to
meet their goals and objectives as well as satisfying the needs of consumers.
Figure 1 - Ansoff's Matrix/Product-Market Expansion Grid (Ansoff, 1957)
3.4: Pricing Strategy (Financials), Distribution Channels

and Communication Mix
This final section of the marketing plan will look at the execution of the overall
strategy for NIVEAs products in Wimbledon 2017. Executing a market plan is
essentially down to three factors:
Pricing at what cost will the products be sold and how much will it cost to make
and execute the overall marketing plan?
Distribution through which outlets will the product be sold i.e. supermarkets,
shopping centres, local stores etc.?
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Avnish Kirit Hirani

Communication how will the message of the overall marketing campaign be
conveyed to the audience intended for the product i.e. adverts, TV commercials,
YouTube videos, posters, billboards etc.?
The combination of the above three factors is what separates a successful
marketing plan from a marketing failure, and NIVEA will have to think carefully
about the ways in which these factors will play into the marketing of their sun
cream and deodorant.
3.4.1: Pricing Strategy
From the product strategy and competitors analysis, it was found that the target
consumers at Wimbledon 2017 will be those who can afford to buy items priced
relatively high compared to ordinary supermarket prices for the same items. A
ticket at Wimbledon 2017 is expected to cost between 56 for the first day to 190
for the final match hence it is sensible to price the NIVEA sun cream and
deodorant at a higher price than supermarkets. The NIVEA All Natural SPF 50 Sun
Cream is expected to cost between 8.50 and 15.00 according to analysis of
current NIVEA sun creams and the All Natural 24hr Hold Deodorant is expected to
cost between 2.50 and 4.00 according to analysis of current competitors
deodorants.
Price is an element of the 4Ps of marketing and is one that should support the rest
of the elements of the marketing mix. It is considered the most difficult of the 4Ps
and must be adhered to with the demand and supply relationship. For NIVEA to set
a price for their products, they should take into account the following five factors of
pricing (LearnMarketing, 2011):
Fixed and Variable Costs
Competition in the Market
Objectives and Goals of the Company
Positioning Strategies
Target Group and Buying Powers
Most of the time, pricing will be based on the corporate objectives of the company,
but sometimes, a strategy should be adopted on a company by company basis as
not all organisations will have objectives to work with in a marketing plan. NIVEA
will base their cost of the goods mainly using competition pricing, which means
setting the price either higher, the same or lower than the market competitors of
the industry (LearnMarketing, 2011). With supermarkets pricing sun cream at near
15.00 on the high end and deodorants at 4.00 on the high end, NIVEA can
choose to lower their prices to oversee the competition or they can price it higher
than the competition to keep up the buying powers of consumers.
Another technique they could use is value based pricing. This is where the price of
the product is considered whilst thinking about the consumer and whether that will
give them any benefit, convenience or usefulness (LearnMarketing, 2011). NIVEA,
being a beauty and healthcare company, would use this simply because they are
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marketing goods at a time where sun creams and deodorants are necessary for
consumers i.e. Wimbledon takes place in July 2017 where the peak of the summer
season begins so there would be a need for these products where consumers will
feel that there will be convenience and health benefits to using the products.
Financials
Costs for marketing the goods will vary from organisation to organisation, as they
all have different needs and strategies in marketing goods. A typical marketing
plan will range from as low as 1% of sales to as high as 30% or even 50% for new
companies. The most common method for formulating a marketing budget is to
use a percentage of sales this means that a portion of the sales revenue from the
company will go towards the budget for advertising and marketing (Morrow, 2009).
According to the latest 9 monthly report by Beiersdorf for January to September

2016, NIVEA reported a 3.6% rise in sales (Beiersdorf, 2016), and that figure is just
for nine months. It can be predicted that sales during Wimbledon will contribute to
a further growth in the sale of products. Given that the daily attendance at
Wimbledon is 39,000 which is a total 546,000 people in 2 weeks (Wimbledon,
2016), it is clear that there is a sizeable audience for NIVEA to endorse the product
to.
Supposing that the sun cream was bought by 10,000 for example, that would mean
a sales revenue of 150,000 (assuming that the price was the upper limit of
15.00). If the deodorant was purchased by the same amount, that would be sales
revenue of 40,000 (assuming that the deodorant was sold at the upper limit of
4.00). That would be a total of 190,000, or an average of 13,500 per day.
In light of the competition faced by NIVEA, most of their competitors choose to
have penetration pricing as their strategy for pricing goods and services which
could be an issue for NIVEA. Penetration pricing involves setting a lower than
expected price for the product to allow consumers to switch to that particular
product because of the lower price. NIVEA pricing their goods according to buying
powers and the cost of the Wimbledon Championships Event 2017 may rock their
sales at first but once consumers realise the quality and benefits of the new
product they will continue to buy the brand and become loyal to it, raising the
brand profile further.
3.4.2: Distribution Channels and Transport
In the discipline of marketing, a distribution channel is a method of getting the

product from the producer to the consumer. There are typically three types of
distribution channel in which a product can reach a consumer (Riley, 2015):
Producer Wholesaler Retailer
Producer Retailer Consumer
Producer Consumer
Consumer
26 | P a g e
The ideal distribution channel is dependent on the organisation and their

circumstances. For most businesses, the second of the three distribution
channels are used to sell and distribute products. The only types of
business that may use the first one above would be supermarkets in which
there are many product sectors like dairy, meat, baked goods etc. where it
would be necessary for such distribution channels to be implemented.
Transport also plays a huge part in distributing products successfully.
Generally road transport is the most popular mode of transport for
distribution of products as many warehouses and wholesalers are located
within a vicinity that is driving distance from the supermarket or store.
What the organisation chooses is dependent on their budget for the
overall marketing campaign but generally it is up to them how they
choose to distribute their products. Many organisations who rely on their
products coming as imports from abroad usually have hub locations such
as warehouses or freight terminals and airports where it is common for
products to be shipped.
NIVEA would use the second of the three distribution channels above as
they are not a company that requires a wholesaler. As Wimbledon will be
the retailer during the event, there is no need for the intermediaries such
as wholesalers, and its not going to be a massive supermarket type
retailer, but rather a stall or booth which acts as a base or foundation for
the sampling and purchasing of the products.
Transport would be minimal as the event is small scale compared to major
retailers like Sainsburys, ASDA or Tesco. The event in Wimbledon is only
for two weeks and so it is likely that the cost of transport will be minimal. If
all goes well for the event, NIVEA have the chance to expand into other
distribution channels like supermarkets. But that will all depend on the
sales performance at Wimbledon and the reactions from consumers.
3.4.3: Communication Mix
The most important segment of a marketing plan is the communication

mix, also known as the promotional mix. This is in essence, the ways in
which the message of the product or service of an organisation will reach
the consumer. There are 5 elements to a communications mix for a
standard marketing plan:
Advertising
Personal Selling
Public Relations
Direct Marketing
Sales Promotion
Not all organisations will use all of these elements and it will depend
entirely upon the nature of their marketing campaigns. NIVEA will be one
of those organisations who doesnt need to use all elements of the
promotional mix and as such will be using advertising and direct

marketing to help endorse and market the sun cream and deodorant.
In the past, NIVEA have been able to use the promotional mix in the
launch of NIVEA Visage Young back in 2005. Advertising for this product
was carried out through billboards, TV advertisements, internet ads etc. as
well as using sales promotion to target a niche market properly. For
NIVEAs Wimbledon campaign, they could benefit from using online and
social media advertising.
Broadcast rights for the Wimbledon Games primarily belong to the BBC,
who dont incorporate advertisements unless they are TV trailers for their
programmes hence TV advertising will not be much of an option. Internet
advertising is better in this case as Wimbledons official website can list
NIVEA as a sponsor and hence allow for them to sell during the games.
NIVEA should also base their marketing campaign according to the
lifecycle of the product, or more so lifecycle of the event. As it is only a 2
week event, most of their advertising and promotion would be done before
the start of the event to make sure that there is sufficient time for the
ideal target market to become aware of the products.
In the opening of the Wimbledon Championships, their marketing and
strategy should be very direct, trying to build a relationship with the
consumers, by advertising the products at a moderate price to draw them
in, and as the Championships continue, the products should change in
price, assuming that the target market is still in capability of buying the
products. The chart below demonstrates this concept well:
In
summary, the chart shows how NIVEA would plan their marketing strategy,
from before the event to the end of the event:
Pre Event teaser posters around the vicinity of the city, independent
internet advert
Opening Event Stall outside the centre court to attract the attention of
those within the grounds, leafleting, set prices moderate
During the Event (First Week) It is expected that the target segment of
consumers will have had enough exposure to the marketing material for
the product that demand rises
During the Event (Second Week) The final week of Wimbledon will mean
more people statistically as people are more inclined to buy tickets to the
final games hence more sales
Penultimate Days (Semi Finals and Finals) NIVEA would scramble for last
minute sales before the event closes. Promotional tactics such as offers
and loyalty discounts could be useful here
Post-Event Marketing (2 Weeks to a Month After) After the event, NIVEA
would determine whether the marketing campaign was a success and
would ideally make plans to expand their new product line to
supermarkets and health stores for the rest of the summer and holiday
season
3.5: Factors Affecting Implementation of Marketing

Plan
Formulating a marketing plan can take up a fair bit of an organisations

time and resources and it is important to realise that there are factors
which can hinder or affect the implementation of a marketing plan as a
whole. A combination of financial and non-financial factors can affect the
way in which a marketing plan is carried out, as well as the variety of
methods available for evaluating and controlling the marketing plan.
Two major factors that may limit the implementation are time and cost. If
the organisation creates a marketing plan without taking into
consideration the cost, they will have difficulty financing the whole plan.
As well as this, many elements of the marketing plan require much
research and time to execute and put together, and if the organisation is
unable to commit the time and money into formulating a plan, they should
consider putting the marketing planning on hold until they can arrange for
suitable methods of financing.
Similarly to cost, another factor is financial performance measures. Ideally
an organisation should assess their financial performance over the last 2-5
years to determine whether or not they should embark on carrying out the
process of planning for their marketing strategy. If the organisation are not
in a financially fit position, and they choose to carry out marketing
planning, it may result in either a failure or a waste of resources among
other reasons.
It may also be that an organisation has the necessary time and money to
carry out the resources but doesnt have access to a suitable market to
target their sales at. In other words, the demographic studies of various
countries can affect the controlling and evaluation of the marketing plan.
The USA for example is divided into 4 population groups baby boomers,
Generation X, Millennials and Generation Z. Each of these groups have
various impacts on the marketing plans and strategies of companies
(Andre, 2015):
Baby Boomers Post World War II baby boom produced baby boomers
(born between 1946 and 1964), who have been the most powerful forces
for marketing environments
Generation X Boomers followed by births Generation Xers (born
between 1965 and 1976). They are considered an overlooked consumer
group and are the most educated to date, with heavy buying powers
Millennials Millennials make up a group who is more financially strapped,
with high debts and high unemployment rates. Technology is their way of
life i.e. rather than being marketed by advertisements and physical
marketing materials, they have engaged with brands in a whole different
way using social media or mobile technology
Generation Z any people born after the year 2000, this population group
include those boys and girls spending an average of $43bn of their own
money and influencing a $200bn market of their parents spending in the
USA. From a marketing stance, these teens will form new brand
relationships that extend into the markets of the future
Looking at the above population groups, it can be seen that Baby Boomers
and Generation X have the most marketing power with Millennials and
Generation Zers having less and less physical marketing power.
The UK population, as an example, of Millennials and Generation Zers is
becoming better educated, with more and more students opting for postsecondary education this will significantly affect what people buy and
also how they will buy.
Another similar factor that could affect the implementation of a marketing
plan is market segmentation. Segmentation is the process of breaking the
market up into different sections which can help to find the ideal market
that the organisation wants to target. However, as useful as this technique
is, it does have some weaknesses which could affect the overall planning
and there are three distinct weaknesses (Mack, 2013) which are:
Poor Segmentation Segmentation relies on looking into criteria such as
age, region, gender and income level among others. However, too much
focus on one of these criteria over the others will mean the difference
between success and failure of the implementation of the marketing plan.
Over Segmentation Sometimes, when an organisation targets too much
of a specific group, this could result in groups that are too small to create
profits. If a segment that small has very few members, this will result
smaller potential revenues and an unclear idea of the success of the
marketing plan.
Lack of Data Businesses, especially small ones, do not have the same
access to market research data like large corporations, so the analysis of a
market during the segmentation will be tough. The less detailed and less
rich the data is, the more mistakes that are likely to be committed during
segmentation.
NIVEAs past performance under the Beiersdorf umbrella of companies,
has seen a 38% rise in sales over the last 3-4 years, with NIVEA becoming
the best performing company for Beiersdorf. This shows that NIVEA has
the time, resources and evidence of past solid financial performance to
carry out a marketing plan with success.
NIVEA has also successfully carried out a segmentation analysis to combat
the demography factors that affect the marketing plan. They have chosen
to target males and females aged 18-35, hence they will have a clear
picture of how that segment will purchase and what their buying powers
will be.
Taking these factors into account will mean that NIVEA will be able to
implement their marketing plan at Wimbledon 2017 easily and with full
capability.
Task 4 Ethical Issues in

Marketing
4.1: Ethical Issues
Marketing Planning
and
How
They
Influence
No matter how an organisation markets their products using a marketing

plan, they should always aim to be ethical in their approaches for every
stage of the marketing campaign from the marketing mix and general
market research to the pricing, promotion and distribution, it is important
to have an ethical perspective. In the global marketplace, there are
hundreds of different cultures, traditions and management environments
that each have a set of rules and regulations that need to be adhered to.
For marketing of products, the same concept applies organisations
should be aware how they are marketing their products and whether they
are doing it ethically or unethically.
Finding common ground in the global marketplace is one of the most
important steps in becoming an ethical organisation. Entering the
marketplace on a global scale means thinking globally conveying
messages and communicating in general and direct ways and breaking
down the barriers of language to really understand the prospective buyers
of products (Stell, 2008). For marketers, it is important to carry out enough
research on the cultures and ways of the potential segment of buyers who
will be drawn to buying their organisations products as they do not want to
offend those cultures where a certain product may be considered
offensive.
Every aspect of a marketing plan should be ethically correct in order to
succeed in getting the word out to consumers. Each part of a marketing
plan should be approached and brainstormed with ethics in mind to ensure
that the cultural and ethical needs of consumers are met.
4.1.1: Ethics of the Marketing Mix
The marketing mix, also known as the 4Ps of marketing, can each be
individually managed to help organisations create an overall ethical
understanding of product, price, place and promotion. Organisations who
put an ethical stance on their marketing mix will lead to an improvement
in brand equity, but those that dont risk their brand becoming
proverbially tried in a public place (Gimesy, 2012) i.e. their brand will
lose consumers loyalty.
Product
Many marketers research their ideal market segment before going out to
market their products, because this will ensure the highest level of sales
as well as decent brand equity. To ensure the ethics of this are met, the
organisation will think of the following questions:
Are the companys explicit values aligned with the products?

Does the product fulfil or undermine the mission statement of the
company?
Are the elements of the products packaging appropriate?
Are all warranties and guarantees promised or inferred and are they
deliverable?
As it turns out, an organisation who answers no to the above questions will
show that they have misled their consumers and all relevant stakeholders.
Price
The pricing model of a product should also be the best the one that
increases sales and profit, however, from time to time, the setting of a
price can have major ethical implications for the organisation, internally
and externally. Pricing to increase profits means that consumers with low
income will miss out on buying the product as their buying powers will be
low, and also, where the product is a necessity of life, it puts those
consumers in an unfair and unjust position (Gimesy, 2012).
Place
The placement of a product can also bring up ethical issues. If the

accessibility of a product is too easy, there are ill consequences. An
example of this is tobacco and alcohol, which can cost a lot and damage
health. On the other hand, if the accessibility of the product is little or low,
there is the unfairness and unethicality for consumers. For example, if an
agricultural industry makes a pest resistant crop and makes it available to
many developed countries and not third world countries, it poses an
unethical situation, particularly if the third world countries have little or no
access to these products.
Promotion
In terms of promotion, two terms can cause confusion in many aspects

bad taste and unethical. Bad taste is referred to as something
inappropriate or defiant of cultural norms whereas unethical is something
that breaks rules and or has negative connotations (Gimesy, 2012).
Promoting a product that creates a false promise or shows to cause
physical or emotional harm is said to be unethical. Advertising is said to be
the one aspect that attracts the most attention and whilst this has
significant ethical consequences, there are other aspects such as to whom
that an organisation will promote. As said before, it may be unethical to
market the product to vulnerable or low income consumers as they may
not have the sufficient funds to help to fund their purchase of that product.
4.2: How Organisations Respond to Ethical Issues
Ethical issues are defined as those issues that have a moral right and
wrong answer. In other words, they are those issues which could either be
good for an organisation or bad for an organisation. Many of these ethical
issues are dealt with under the Codes of Conduct that organisations
stipulate in their mission statement or corporate governance statements.
NIVEA as a company, use the code of ethics stipulated by the Beiersdorf

Group, who have written a Code of Conduct, a guide to following ethical
guidelines for the greater good of the environment and society. They use
their core values to emphasize their ethical guidelines and have put in
place, rules and regulations to combat ethical issues and avoid conflicts in
ethical situations.
Child Labour
Child labour, although prevalent in the 19 th and 20th century, is still around
nowadays, with 168 million children still in child labour activities globally
(UNICEF, 2013). Many organisations have made child labour processes
illegal in their production of products and goods and many of them
continue to promise the abolishment of all forms of child labour.
A famous example is Nike, who were involved in a large child labour
scandal back in the 1990s, and were accused of employing and exploiting
children to produce soccer balls and Converse shoes (TED, 1999). They
were accused of employing people in horrendous conditions, many of
whom were children under the age of 15. Since then they have raised the
wages of workers and have become more transparent about its labour
practices (Lutz, 2015).
Beiersdorf has stated in their Code of Conduct that they do not tolerate
any form of illegal labour by children under the age of 15 and do not
accept any forms of slave trade (Beiersdorf, 2016). This is further
expressed in their Ethics and Human Rights statement, where they state
that the protection of human rights is a priority and that they do not
tolerate stand for any type of forced labour. For example, in their Supplier
Code of Conduct, the use of punishments in forced labour as well as verbal
abuse is prohibited under the ILO Conventions 29 and 105 (Beiersdorf
USA, 2016).
Transparency
Transparency is the idea that organisations should be honest and open

about their financial reporting and accounting methods as well as their
everyday business operations. For those organisations that are public, this
includes accurate and complete reporting on financial reports and for
small to large businesses, this includes communicating effectively so as
not to cause misinterpretation and clearly convey the intentions of the
company. Ethically, this is a business ethics technique which is key in the
performance of a company and could mean the difference between the
gain or loss of a company.
The infamous Enron scandal of 2001 really emphasized the ethical issue of
transparency. By keeping huge debts off their balance sheets, Enron
shareholders lost $74 billion, resulting in the loss of thousands of
employee and investor retirement accounts as well as thousands of jobs
(AccountingDegree.org, 2012). For an organisation, transparency is the

most important factor in shaping the relationships and links with
shareholders and consumers and many companies establish these links
and build these relationships to build a strong loyalty with the consumers
and shareholders.
Beiersdorf, working closely with all its partner companies, including NIVEA,
have stated that transparency and informing the shareholders and public
as soon as possible are top priorities in their statement of corporate
communications (Beiersdorf AG, 2016). They release annual and quarterly
reports and these are prepared in line with IFRS and in accordance with
the countrys commercial code.
Just like Beiersdorf, NIVEA also have a duty to be transparent. Being a
producer of creams and deodorants with chemicals and natural
ingredients, they have a duty to be honest and open with the potential
side effects of their products to avoid putting the health and safety of its
consumers at risk. Also they have to be honest and open about the
benefits of their products to ensure that they do not engage in unfair
trading with other manufacturers of creams and deodorants. In other
words they should describe their benefits as impartially as possible so
consumers know where their brand loyalty is positioned.
4.3: Effect of Consumer Ethics on Marketing

Planning
Consumer ethics is centred around the morality and consideration of

buying products and items. More specifically, consumer ethics means
buying with environmental and ethical issues in mind. Examples of
consumer ethics are great in number and can have a major effect on
marketing planning for companies like NIVEA. As is with most
organisations, they know that a marketing plan will be successful if the
plan in consumer-centric keeping the consumers rights and
responsibilities in mind is what constitutes a good marketing strategy.
Hence, if the consumer carries out an illegal or unethical activity, this
could hurt the brand image of the company as well as harming the overall
relationship between the company and the consumer.
Such examples of unethical consumer activity includes:
False Claims
Redistribution of Products
Voucher Counterfeiting
NIVEAs marketing planning in the future should include ways to combat
unethical activity by consumers. False claims would entail consumers
making unnecessary complaints about the products they have bought
this would affect marketing planning because it would affect the company
legally when they make the product. If a consumer carries out a false
claim, it could generally hurt any sales and potential revenue that may
have been possible, and also, a false claim may mislead consumers that a
product is bad for you when it is just a misrepresentation of the product

and its benefits.
Consumers may also buy products and redistribute them for 150-200%
mark-up as a means of making money. This is seen as an illegal practice in
many organisations and NIVEA is no exception. If products were marked up
after being once sold already, this means that secondary consumers are
paying more than what they should be paying. Usually, companies that do
this would state clearly that the RRP (recommended retail price) of the
product is one cost, but they would also clearly state that the price it is
being sold for is less. Marketing planning would be affected because this
would lead to lost sales and lost consumers once they find out the
companies have been double selling their products. As with false claims,
the brand image will be hurt and the brand loyalty will disappear as
reselling products as a business gives way to trademark abuse which
could also affect the overall market segmentation approach when
consumers are being searched for by the company no-one will want to
buy products that have been resold.
Voucher counterfeiting (also known as voucher mis-redemption) is another
unethical practice where consumers may redevelop and copy vouchers to
get discounts for the same product over and over again. NIVEA may be
most at risk with this unethical practice their marketing planning
procedures detail how they would approach consumers and increase the
sales of their products. However, starting a loyalty program in NIVEA may
lead to voucher counterfeiting in which consumers will want discounts on
NIVEA products again and again, which could create losses for the
company as well as affecting their advertising ratings. At most risk also
will be NIVEAs magazine advertorials prining vouchers in popular health
and beauty magazines will lead to consumers buying multiple magazines
for the same vouchers over and over and there is a risk of them
reproducing these vouchers, which may be unethical for the company.
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html

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Table of Content

Avnish Kirit Hirani

Unit 19 Marketing Planning Student Number - 10710

Task 1 Compiling Marketing Audits......................................................................3

Avnish Kirit Hirani

3.4.1: Pricing Strategy...................................................................................18

Avnish Kirit Hirani

Unit 19 Marketing Planning Student Number - 10710

Task 1 Compiling Marketing Audits

1.1: Changing Perspectives in Marketing Planning

1.2: Capability of Planning Future Marketing Activity

1.2.1: Managerial Capability

Avnish Kirit Hirani

1.2.2: Financial Capability

1.2.3: Operational Capability

1.2.4: Human Resource Capability

Avnish Kirit Hirani

Unit 19 Marketing Planning Student Number - 10710

1.2.5: Brand Capability

1.3: Techniques for Organisational Auditing and Factors That

1.3.1: SWOT Analysis

Apply the analysis in relation to the organisations competition

Avnish Kirit Hirani

Unit 19 Marketing Planning Student Number - 10710

As common as this technique is for an audit of an organisation, SWOT analysis has a

1.3.2: PESTLE Analysis

Political are there any key political factors?

Avnish Kirit Hirani

1.3.3: Porters 5 Forces

Avnish Kirit Hirani

Avnish Kirit Hirani

Unit 19 Marketing Planning Student Number - 10710

1.4: NIVEA Organisational Audit

and their impacts are like:

Avnish Kirit Hirani

Unit 19 Marketing Planning Student Number - 10710

Task 2 Barriers to Marketing

2.1: Assessing the Main Barriers to Marketing Planning

Avnish Kirit Hirani

2.2: How Organisations Overcome These Barriers

2.2.1: Tactical and Strategical Confusion

2.2.2: Isolating the Marketing Function from Operations

Avnish Kirit Hirani

Unit 19 Marketing Planning Student Number - 10710

2.2.3: Confusion Between Marketing Function and Marketing Concept

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Unit 19 Marketing Planning Student Number - 10710

Task 3 Formulating a Marketing

3.1: Writing a Marketing Plan

3.1.2 - Analysis of the Market

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Analysis of Current and Potential Competitors

Avnish Kirit Hirani

Unit 19 Marketing Planning Student Number - 10710

Avnish Kirit Hirani

Unit 19 Marketing Planning Student Number - 10710

Avnish Kirit Hirani

Unit 19 Marketing Planning Student Number - 10710

Supermarkets, Company Website, Amazon, Healthcare and

Avnish Kirit Hirani

Unit 19 Marketing Planning Student Number - 10710

3.1.3: Planning for Marketing

Avnish Kirit Hirani

3.2: Essentiality of Marketing Planning in Strategic