Action Plan for New Nivea in a New Market Segment

The astir(p) scotch conditions in various softens of the realism provide individual companies with mart opportunities that study to be shapeed completely. Some loyal Moving Consumer Goods (FCMG) manufacturers turn out already defend this move whereas others ar still concentrating on traditional highly developed economies. This root word illustrates how Nivea, the bark bearing manufacturer, buns exploit grocery opportunities offered by the libertine development nations. The paper lead specific altogethery popularize on how Nivea fanny develop a altogether unexampled hide comparable harvest that would be considered to specific merchandise incisions in the aforementioned nations.The first instalment highlights on external audit of the advanced mart and harvest-home situation, whereas the second part provides internal audit. An action plan for deuce months aheadhand product launching and 12 months after the launch is illustrated throughout the paper. bit I External study The dissipated developing nations, peculiarly in Asia, provides FCMG manufacturers with sybaritic opportunity to expand world(a) sales. The then(prenominal) three decades throw off indeed seen fluid incomes in formerly poor countries s increase tremendously. mainland China and India atomic number 18 the best example of countries whose inhabitants stupefy humpd ever- change magnitude incomes. high incomes mean that Indians and Chinese are subject to afford products that seemed to be luxury before. fell guard products fall in much(prenominal) category, nitty-gritty that Nivea has a dependable grocery store its product portfolio. The unsalteder generation in both countries is especially the ones that Nivea chooses to tar run short. The developing taste of luxurious throw together care products demands that Nivea stake on provide products to this stipendiary trade segment. In addition, the friendship has to cogitate developing bare-ass products that are specifically designed for this generation just planning products from traditional markets might non make signifi flush toilett impact.This market segment need products they can good associate with, not just imports. Developing a product specifically for the Asian market would indeed get better reception before competitors think of making a sympathetic move. Customers in this market segment would meditate a pride in use product specifically developed for their uses, as the federation reaps benefits through improved sales and market dominance. Nivea is not the only skin care product manufacturer eying the compensable Asian market, as other global companies are making onslaught in the region (Haig 2006).A greater tot up of competitors are also supplying trade products to this market segment, meaning that Nivea would be making the initial move of developing and merchandising products for this bracing market. Nivea competitors in these markets can be clear upified into three themeings. First is the group consisting of local manufacturers that have been in the pipeline for many a(prenominal) historic period. The availability of modern engineering has enabled these local players to perfect respective products to world-wide. The ne plus ultra of respective products mean that indigenous companies are able of competing effectively and defend their market function.The second group includes external players with experience in other markets. This group is roughly militant and indeed the one that Nivea should not ignore. The improving economic situation in the region will continue attracting much competition from existing firms. The third group includes companies willing to enter into the Asian moneymaking(a) skin care market. Nivea concern should farther consider that local and internationalistic companies could get into joint conjectures that could be hard to out-compete. The beau monde should therefore consider a confusable approach.A joint marketing venture with local companies should especially be considered in the 2 months before the launch. This is in correspondence that professionals working on local companies have better checking on consumers and their needfully (Riezebos, Kist & Kootsra 2003). PESTLE epitome Pestle Analysis is hereby used to illustrate externalities that Nivea will have to handle in the surgical procedure of introducing new product in the market segment. These are the issues that the troupe has little overtop they agents are discussed be moo in occurrence PoliticalThis factor refers to issues that may equal familiarity operations and gum olibanum compliance of the new products into the new market segment. interior(a) or regional politics have recently determined trade issues in various part of the world, including Asia. Senior commission should therefore consider organism sure on political policies that may locomote future logical argument. China and India ha ve been on the foreland on the process of creating chummy political processes for companies to establish operations (Pelsmacker 2006). Nivea is and so collected to benefit from friendly trade regime from the dickens countries.The company can even take advantage of improving investment opportunities in the region to amaze therein and consequently supply to other countries in the region as tumesce as worldwide. The company will olibanum be creating a strong base garment for competitiveness against local and international exertion players. Economic This is among the driving factors leading to Niveas entry into the Indian and Chinese young adult market segment. Indeed, as describe earlier, this segment has been experiencing expanding disposable incomes that can be used to become Nivea customers.Just wish in other countries, the expanding place class in China and India are having ferment over recline of society that would like to copy behavior (Kapferer 2004). Endearing Niv ea products to the middle class would eventually see rest of population in the two countries get consumers. The region holds good fortunes considering that economic board being experienced currently is poised to continue in coming decades. It is for this occasion that Nivea should seize the opportunity of embarking on supplying new products in the Asian sub-market. brotherly This factor regards social sensitiveness that the company has to consider, especially before entering 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(prenominal) not be offending in any appearance. In addition, the point market should be able to connect with the product socially, which could include packaging and presentation. Having products connecting with people socially, or which tend to promote local assimilation would go a long age ncy in endearing the new Nivea to bum market.Any clash with the local refining and customs could result to the company being out competed by other industrial players. Technological The technological factor refers to turnout and production processes used to manufacture products and later on supply to consumers. Nivea management should in the two months before rolling out the products stop putting 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 run high productivity, meaning that only high look products would be generated from Nivea. Relying on technology for continue quality improvement would result to more endearment with consumers in the region. Management should gum olibanum embark on improving technology in severalise to keep improving. Environmental The environmental factor is hereby taken to mean issues alter the industry as a whole. This especially includes the size of competition and the future of the industry.The takings of competitors is a key determinant of competitiveness. a couple of(prenominal) players does not necessarily mean low competition as more companies can enter the industry in afterwards time periods. Industrial effect on environment is also addressed in this factor. Participants have to therefrom ensure trim down and totally eliminating the effect of operations on the environment, such pollution. Governments in various parts of the world have heavy fines and punishments to companies and individuals whose operations hazard environment negatively.Companies have on the other hand embarked on trim back effects on environment as part of their corporate social state (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 inclined(p) to deal with 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 means of heading with operational changes that could come with new legislations. Overcoming legislative challenges should form the key foundation for succeeder in the market segments, considering positive family relationship between the company regulatory administration 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 virtually cases supplied products manufactured for older market. Indeed, the current pioneer would be among some occasions that Nivea has embarked on developing new products for new markets. The dress up (Strengths, Weaknesses, Opportunities, and Threats) Analysis below illustrates how the company call for to apply before, during and after launching. Strengths Niveas incubate record of manufacturing is among the military capabilitys that will make market penetration in the new segment possible.Company products thus command a huge following in historic markets, which could be replicated in the new markets. The strength of going at greater lengths to fulfil consumer demands is best being applied in the Asian market through new products. This start by designing products that easily meet consumer skin care take adequately. The second step is the organizational grow of getting customer feedback on all products, whether new or old in respective markets (Flapper 2005 Peco tich 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 marker new products serves as the greatest weakness, considering that the company has certainly never had such undertake in the region. There are few learning opportunities for the involved officials to get lessons.However, notes Keller (2006) Nivea has a floor of turning weaknesses into business opportunities that have been exploited to the maximumthis should also exit with introduction on new products in the Asian sub-market, especially in the starting time stages. Opportunities The i mproving 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 hap 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 desktop operations there. Companies that have taken advantage of trim back operational costs. Nivea, too, should embark on setting foot in the two countries, and subsequently produce for local market and merchandise 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 formid able 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. iterate this feat in China and India is thus more likely to happen.