The market position of Nivea for men in UK Essay

The market position of Nivea for men in UK - Essay Example (Euromonitor, 2010) Bargaining power of suppliers (Low): Nivea has a high bargaining power with respect to its suppliers because of its diverse portfolio and generating economies of scale (Beiersdorf AG , 2010). Bargaining power of buyers (High): Customers of men grooming products have high bargaining powers due to low switching costs, price sensitivity to grooming products etc (Kay, 2006). Threat of Substitutes (Medium): Nivea for men has a high threat of substitutes from general grooming products, natural products such as olive oil etc. (Heijden, 2005) SWOT Analysis for Nivea For Men In order to fully understand the competitive advantages and vulnerabilities of Nivea, (Beiersdorf AG, 2011)we conduct the following SWOT analysis for Nivea for men: The Boston Group Matrix The overall market growth of the men’s grooming market is 3% (2009-2014 CAGR) (Euromonitor, 2010) and the relative market share of Beiersdorf (Nivea for Men) is low. Market share of Beiersdorf AG is 5.3% (2011 ) as compared to 32% of P&G (Euromonitor, 2010). With a low market growth and low market share, Nivea for Men falls into the Dogs enterprise position, which indicates that Business is a cash trap (BRS Inc). The best thing that Nivea for Men can do is to focus on short term, avoid risky investments and look into niche segments. Where do we want to be? (Strategy Formulation) This stage of marketing strategies planning describes the objectives and aims of Nivea’s marketing plans, the strategy formulation for its brands’ growth and identification of â€Å"the business we’re in†. Before defining the objectives of Nivea’s marketing strategies, we must recollect the competitive advantages that Nivea for men... This research describes the Situation analysis or Market Audit for Nivea in the men’s grooming market in UK considering both External and Internal perspectives. Nivea currently holds the #2 spot in men’s grooming category for the UK market. The ‘Nivea-for-men’ case-study details the challenges that Nivea for men is having in the men’s grooming market in UK. Upon extensive analysis of the market and competition, it is evident that Nivea-for-men even though is a leading and important brand for both Beiersdorf and overall market, it’s sales still lag behind the flagships products of P&G and Unilever. The growth opportunity that is seen for Nivea for Men is the growing skin care segment with a CAGR (2004-2011) of 17.8%. Owing to the iconic branding of Nivea in skin-care products, Beiersdorf possess a competitive advantage in penetrating and increasing the skin-care market for men. In order to do so, they should segment their consumers on attribute s of age and shopping behavior. Target segments identified for Nivea for men are Adult adopters, midlife adopters, senior adopters, and midlife experimenters. The various attack strategies that Nivea for men can use are products bunding, progressive promotions and pricing. The various defence strategies that should be implemented by Beiersdorf are flanking defense and position defence. With proper risk management in place with respect to the implementation and control of marketing plan, it is bound that market share of Nivea for men will increase in the UK market.