Environmental analysis of Nivea in Thailand

Environmental analysis of Nivea in ThailandIn todays world, all businesses are facing the dynamic of world economy. In business world, there is always strong contention in the market place with new business players and convergence of the industry. Companies have to adjust themselves in nightspot to pass and to conduct good performances even the market leader of the industry needfully to be successful with meliorate performance, high gear profitability and combative edge.To be successful, a business needs to set its overall counsel for the high society through business plan aiming to achieve business goals and objectives. One of the most important part of the overall business plan is the marketing plan. In formulating an effective marketing plan, a company needs to follow segmentation, targeting and positioning (STP) steps as they are the foundation of marketing out trend (Desarbo et al., 2008). STP operation is in the area of market-oriented approach, which primarily e xamines the external environment based on market needs so as to develop products which well respond to the market.Currently, while the overall markets are becoming more fledged and customer needs are greatly diverse, the use of STP schema is indispensable. In exceedingly dynamic environment, most companies conduct segmentation question bailiwicking the changes in the marketplace and adapt themselves to the dynamic world.Therefore, it is precise common that most businesses are increasingly segmenting markets and identifying each target market in order to look new opportunities, develop right positioning to establish label image and trademark reputation, deliver decent communications to the target audiences, and also effectively invest resources and specific capabilities to the main marketing activities. The company pull up stakes be able to create a value proposition specific to the target market by developing an effective marketing strategy, including marketing mix. By g oing through the STP subprogram, a company go out be likely to establish its own identity and differentiate itself from other competitors in the marketplace.This research studies the mens education product industry in Thailand. The methodology is to examine how the product owner develops its marketing strategy and how the STP act upon has vital role in formulating the strategy.In Thailand, mens grooming market is a high harvest-home industry, with approximately 14 percent growth annually from 2005 to 2008 and the market size in 2009 spread out with the value of Bt5.5 billion. Growth of the industry in socio-economic class 2008 mainly came from growth of mens skin charge market, with 26% percent growth in terms of current value (Euromonitor worldwide Mens Grooming Products Thailand, 2009). Mens skin disquiet market is considered not only an attractive market but also a very highly competitive market in Thailand.This paper uses a case study of NIVEA FOR MEN differentiate i n Thailand, the line of products manufactured by Beiersdorf Thailand, as it is a good case study about mens skin grapple market. Moreover, it specifically concentrates on male skin thrill market which is segmentation method of NIVEA FOR MEN. Therefore, this case study is of interest of the rootage to study the whole care for of STP which can lead to the formulating of marketing strategy of a leading brand in mens skin care market, NIVEA FOR MEN.Prior to this study, there have been or so researches studying male consumers behaviors which claimed that men consumers are now much more a part of raw consumerism as women (Sturrock et al., 1998). In recent years, a number of researchers aim their interests at male consumers in order to study male consumption of products and styles which contributes to the production of self image (Firat, 1993), and also the construction of self fancy (Thompson and Hirschman, 1995).In this paper, the qualitative approach, in-depth interview leave be hind be the main research method. The research will leave more details of the area of study and clarify the discussed concepts.1.2Purpose of the projectPoints of the authors interest in this research are the rapid growth of mens grooming product industry and the way a leading brand in this industry has employed marketing strategies.An overall purpose of the project is to study the thorough process of segmentation, targeting, and positioning (STP process) that is the main part in creating effective marketing strategy, and to examine how and to what extent the STP process can be applied to men skin care industry as well as to assess its implementation on a leading brand in men skin care market, NIVEA FOR MEN which is owned by Beiersdorf Company.1.3 Design of the Project and ObjectivesThis paper mainly deals with the scope of the process of segmentation, targeting, and positioning of a leading brand in men skin care market. As the stated process is the foundation and genesis of market ing strategy formulation, this research covers the linkage among these market-led marketing strategies.The paper will go bad market attractiveness in Thailand, and male consumers needs as well as Beiersdorf Thailand resources and capabilities.The investigation will be done by in-depth interview with marketers in Beiersdorf Thailand in order to gain insight breeding about the STP process and also the implementation of NIVEA FOR MEN marketing strategies.After all, the theory will be concluded and will also be used as a base of testimonial for the potential growth direction of NIVEA FOR MEN, a market leader in the very high growth industry.The objectives of this research are as followsto trace the origins of marketing strategy concept in real articulate situation in mens grooming products market and men skin care market in Thailandto check up on the process of segmentation, targeting, and positioning of NIVEA FOR MEN brandto examine the linkage among segmentation, targeting, and p ositioning as well as to study how STP process leads to the formulation of marketing strategy of NIVEA FOR MENto study the creation of competitive positioning and marketing plan as a market leader men facial care industry andto make recommendation in respect of the maintenance of its market leader positioning gibe to consumers perspectives.1.4 NIVEA International History and NIVEA Thailand HistoryThe case study of Beiersdorf Thailand, NIVEA FOR MEN is used in this research as it is the best case to study about the market-oriented approach with focusing on segmentation, targeting, and positioning process. Moreover, it is of interest of the author as NIVEA FOR MEN, with the various lines of products, is the leading brand in Thai rapid growth industry, mens skin care market.The history of Beiersdorf AG is briefly summarised (See Appendix 4-1). Both NIVEA international history and NIVEA Thailand history are summerised to illustrate NIVEAs current conditions in world market and in Thai land.1.4.1 NIVEA International HistoryFigure 1-1 NIVEA Worldwide commencement www.nivea.comNIVEA is one of the worlds leading international skincare industries, founded in 1911 in Germany by Oskar Troplowitz, who named the company NIVEA, from the Latin forge nix or nivis, meaning snow, in reference to the colour of the product.Currently, NIVEA is claimed to be the worlds largest skincare brand with a strong international presence in around 170 countries and an enviable reputation. Also, Beiersdorf has had strong gross revenue world-wide as during 2008 and 2009, Beiersdorfs annual sales in terms of worldwide products sales are at 5,971 million and 5,748 million, respectively.Beiersdorf had already established an international presence with a large number of products prior to World war II. Trademarks were registered in many countries in order to protect these brands. According to the Beiersdorf website (2010) after World War II, these trademarks were bemused in almost all count ries, particularly those for NIVEA, and the company tried in each of these countries to recover the trademarks. Beiersdorf began expanding internationally in 1952s. Among the countries involved in the first international expansion were the Netherlands, followed by Argentina, Switzerland and Brazil in 1958. The spare-time activity overview shows when the rights were recovered in each country.1961Sweden1963Mexico1966Finland/Denmark1968African Commonwealth Countries (except south Africa)1973U.S.A1974France incl. former colonies, now Chad, Mali, Cameroon, The Congo, etc1977Hong Kong, Thailand, Malaysia, Singapore, Gibraltar, Cyprus, Malta, Bermuda, Bahamas, Jamaica, Barbados, Trinidad and Tobago1985Norway1992United Kingdom, Ireland, Canada, South Africa, New Zealand, India, Pakistan, Israel, Australia1993Romania1998PolandBesides guaranteeing continued high quality on individual products, NIVEA expanded their product endure into new cosmetic fields, such as decorative cosmetics and ha irstyling and made notable innovations in skincare. Moreover, NIVEA began expanding their product line to provide complete cosmetic care for the whole family and for style-conscious singles.1.4.2 NIVEA Thailand HistoryIn 1984, the NIVEA brand was introduced in Thailand, import and distributed by Beiersdorf (Thailand) Co., Ltd. The brand was introduced as the first mass market skincare cream and the worlds first legitimate cosmetic moisturizer in the famous blue tin with the white logo. NIVEAs products included NIVEA Crme, Skin application program and Labello Lip Care.According to the Beiersdorf (2010) website, Thai Food and Drug Administration (FDA) chooses the NIVEA mill for shooting Good Manufacturing Practices (GMP) conception Video. Later, in 1995, NIVEA obtained the GMP certificate from the local FDA Public Health Ministry which was the first GMP certificated to a cosmetic factory in Thailand and NIVEA Research and Development (RD) presented the New Method in Non-Animal All ergy Testing, to the Dean and professors of Pharmaceuticals Science Faculty, Chulalongkorn University. (Nivea website, 2010).By 2008, NIVEA in Thailand was successfully growing and had achieved an excellent 32% market share in the Super Hypermarkets sales channel which is of strategic importance in the Thai market (Nivea website, 2010).Overall, in skin care market, Beiersdorf Thailand is market leader with 11.9 percent market shares in 2008. In this year, Beiersdorf Thailand overtook Unilever Thai Holdings to lead sector sales (Euromonitor International Skin Care Thailand, 2009) (See Appendix 1-2).In Thailand, NIVEA achieved market leadership in Mens grooming sectors in year 2008 with 23.4 percent market share, followed by Gillette by Procter Gamble with 14.1 percent market share (Euromonitor International Mens grooming products Thailand, 2009) (See Appendix 1-3). NIVEA is also number one in body care sector, with body care brand share 23 percent and 23.5 percent in 2007 and 200 8, respectively. (Euromonitor International Skin Care Thailand, 2009) (See Appendix 1-4). The NIVEA brand is now available in Thailand in the following productsNIVEA BodyNIVEA FOR MENNIVEA VisageNIVEA DeodorantNIVEA sunNIVEA Lip CareNIVEA Bath Care