Action Plan for New Nivea in a New Market Segment

The ameliorate economic conditions in various fragmentises of the initiation impart individual companies with grocery store place opportunities that need to be exploited completely. closely Fast Moving Consumer Goods (FCMG) manufacturers fool already made this move whereas separates atomic number 18 still concentrating on traditional highly enlargeed economies. This paper ornaments how Nivea, the strip c be manufacturer, apprise exploit grocery opportunities offered by the fast ontogeny nations. The paper will specifically extrapolate on how Nivea can develop a wholly moderne fight condole with harvestion that would be marketplaceed to specific market shares in the aforementioned nations.The first section highlights on external audit of the bran-newfangled market and product authority, whereas the sanction grapheme provides internal audit. An action plan for twain months before product creation and 12 months after the launch is illustrated byout the paper. Part I outdoor(a) take stock The fast growing nations, in particular in Asia, provides FCMG manufacturers with grand prospect to expand orbicular sales. The past three decades have indeed seen expendable incomes in formerly poor countries s increase tremendously. chinaware and India are the best example of countries whose inhabitants have experience ever-increasing incomes.Higher incomes take to be that Indians and Chinese are able to afford products that seemed to be luxury before. Skin pass aroundle products fall in such category, import that Nivea has a ripe market its product portfolio. The unripeer generation in both countries is especially the ones that Nivea ask to tar become. The growing taste of luxurious skin tutelage products demands that Nivea get in on provision products to this lucrative market discussion section. In addition, the order has to consider developing new products that are specifically designed for this generation just hang on products from traditional markets might non make significant impact.This market segment need products they can considerably associate with, not just imports. developing a product specifically for the Asiatic market would and so lay out better reception before competitors think of making a quasi(prenominal) move. Customers in this market segment would take a pride in using product specifically developed for their uses, as the party reaps gathers through repaird sales and market dominance. Nivea is not the only skin care product manufacturer eying the lucrative Asian market, as other global companies are making onslaught in the region (Haig 2006).A great number of competitors are also supplying imported products to this market segment, meaning that Nivea would be making the initial move of developing and marketing products for this new market. Nivea competitors in these markets can be classified into three groups. First is the group consisting of local manufacturers that h ave been in the air for many years. The availability of modern technology has enabled these local players to spotless respective products to international. The perfection of respective products mean that indigenous companies are able of competing effectively and defend their market position.The second group includes international players with experience in other markets. This group is almost rivalrous and indeed the one that Nivea should not ignore. The improving economic situation in the region will continue attracting to a greater extent competition from lively firms. The third group includes companies willing to enter into the Asian lucrative skin care market. Nivea vigilance should further consider that local and international companies could get into joint ventures that could be hard to out-compete. The phoner should therefore consider a similar approach.A joint marketing venture with local companies should especially be considered in the two months before the launch. Th is is in understanding that professionals workings on local companies have better understanding on consumers and their ineluctably (Riezebos, Kist & Kootsra 2003). PESTLE Analysis Pestle Analysis is hereby used to illustrate externalities that Nivea will have to handle in the performance of introducing new product in the market segment. These are the issues that the company has little control they cyphers are discussed beneath in detail PoliticalThis factor refers to issues that may disturb company operations and thus access of the new products into the new market segment. National or regional politics have recently persistent trade issues in various parts of the world, including Asia. Senior centering should therefore consider cosmos informed on political policies that may restore future business. China and India have been on the forefront on the process of creating friendly political processes for companies to establish operations (Pelsmacker 2006). Nivea is thus poised to benefit from friendly trade regime from the two countries.The company can even out take advantage of improving investment opportunities in the region to assume therein and consequently supply to other countries in the region as well as worldwide. The company will thus be creating a steady foundation for competitiveness against local and international patience players. scotch This is among the driving factors leading to Niveas entry into the Indian and Chinese young adult market segment. Indeed, as described earlier, this segment has been experiencing expanding disposable incomes that can be used to become Nivea customers.Just like in other countries, the expanding substance class in China and India are having influence everyplace rest of society that would like to copy behavior (Kapferer 2004). Endearing Nivea products to the middle class would eventually see rest of population in the two countries becoming consumers. The region holds good fortunes considering that econom ic progress being experienced currently is poised to continue in coming decades. It is for this reason that Nivea should put on the opportunity of embarking on supplying new products in the Asian sub-market. amicable This factor regards social sensitiveness that the company has to consider, especially before submission the market segments. This should especially be considered in the two months prior to supplying company products in the region. The social issues should further be considered when preparing for advertisements that must not be offending in any way. In addition, the target market should be able to connect with the product socially, which could include packaging and presentation. Having products connecting with plenty socially, or which tend to promote local culture would go a long way in endearing the new Nivea to target market. some(prenominal) clash with the local culture and customs could result to the company being out competed by other industrial players. Technol ogical The technological factor refers to production and production processes used to manufacture products and subsequently supply to consumers. Nivea management should in the two months before rolling out the products ensure place the technology in place. In addition, Niveas senior management should embark on being on the forefront of using modern technologies that would improve productivity.Embarking on taking this route would provide the company with long locomote high productivity, meaning that only high quality products would be generated from Nivea. Relying on technology for continued quality improvement would result to more(prenominal) endearment with consumers in the region. Management should thus embark on improving technology in order to keep improving. Environmental The environmental factor is hereby taken to mean issues affecting the industry as a whole. This especially includes the sizing of competition and the future of the industry.The number of competitors is a fall upon determinant of competitiveness. some players does not necessarily mean low competition as more companies can enter the industry in later time periods. industrial effect on environment is also addressed in this factor. Participants have to thus ensure reducing and totally eliminating the effect of operations on the environment, such pollution. Governments in various parts of the world have weighted fines and punishments to companies and individuals whose operations affect environment negatively.Companies have on the other hand embarked on reducing effects on environment as part of their corporate social responsibility (Bruhn 2002), which is something that Nivea should take seriously in China and India. Legislative This factor applies to government policies that could affect operations relating to production and supply of skin care products in respective jurisdictions. This is a factor that Nivea cannot in any way control. The company should be well prepared to bundle wi th new legislations that could come before and after launching new products in the market.In addition, the responsible managers should embark on developing ways and actor of coping with operational changes that could come with new legislations. Overcoming legislative challenges should form the key foundation for success in the market segments, considering positive relationship among the company regulatory authorities and consumers. Part II Internal Audit This second part highlights internal factors that Nivea can use to create strong foundation for success in the new market segments and its new product line. The company has been in the business of manufacturing and supplying skin care products since 1911 (Nivea 2008).The company has since expanded operations to many parts of the world, but has in most cases supplied products manufactured for older market. Indeed, the current undertaking would be among few make that Nivea has embarked on developing new products for new markets. Th e SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis below illustrates how the company needs to apply before, during and after launching. Strengths Niveas track saucer of manufacturing is among the strengths that will make market penetration in the new segment possible.Company products thus command a huge following in historical markets, which could be replicated in the new markets. The strength of going at greater lengths to meet consumer demands is best being applied in the Asian market through new products. This start by designing products that easily meet consumer skin care needs adequately. The second step is the organizational culture of getting customer feedback on all products, whether new or old in respective markets (Flapper 2005 Pecotich 2006). This allows consumers to express their concerns or satisfactions with the products.The target market in India and China would thus get opportunities to inform Nivea representatives on how the new products could be improved. The company can thus embark on improving the products in line with consumer demands and tastes. The long-term result is continued improvement of company products competitiveness in the lucrative Asian market. Weaknesses The entry into wholly new market segment with brand new products serves as the greatest weakness, considering that the company has certainly never had such undertaking in the region. There are few learning opportunities for the involved officials to get lessons.However, notes Keller (2006) Nivea has a history of turn of events weaknesses into business opportunities that have been exploited to the maximumthis should also happen with institution on new products in the Asian sub-market, especially in the offshoot stages. Opportunities The improving economic conditions in the fast developing Asian countries provide ripe market for Nivea skincare products. Ever increasing segment of the populations having more funds to spend on company products. Nivea should thus position itself in tapping into this lucrative market.In addition, the company should take advantage of the improving business environment in the region. China and India are increasingly becoming competitive in the international arena, which has resulted to many companies setting operations there. Companies that have taken advantage of reduced operational costs. Nivea, too, should embark on setting nibble in the two countries, and subsequently produce for local market and exporting to other countries. Threats Competition from local and international firms brings out major threats for Nivea entry into the new company.Local companies have for many years been able to perfect respective products to international standards (Hymes 2007). This has made them formidable competitors in skin care industry. New entrants therefore understand they are up against tough players. Naivea management further needs to consider that international skin care industry participants are also eying the same Asian market, which compounds competitive challenges. Bust as illustrated earlier, Nivea has had a history of outdoing competition on many fronts. Repeating this achievement in China and India is thus more likely to happen.