Nivea: Softening and Standardizing Global Markets

The dirts positioning also made it distinct from other overlaps on the merchandise It was a multipurpose cream sold at a wrong that made it available to the masses, rather than to only the upper-class women who were the competitions target merchandise. over the years, credulouss positioning strategy has remained as simple and steadfast as the now- old(prenominal) blue-and-white package. Despite all in all the technological developments the company has Introduced In skin conduct harvest-homes, and all the merchandises it has sold In, credulouss groceryplaceing always foc use ups on key deformity benefits-?high caliber, reasonable price, straightforward approach, and mild skin c atomic number 18.This commitment to the mainstream market and focus on multipurpose applications means that e precise intersection point introduced down the stairs the credulous name has to conform to guidelines which ensure that e trulyone working on the provoker around the field knows w hat it stands for. impartials market strategy is wholesome stated by Roll Sunnis, chairman of the Beresford Group The strategy of concentration on exploiting market potentials and regional egression opportunities is to be continued. The same applies to moves into forward-looking market segments and to change magnitude investment in research and development. Exploiting market potentials means constantly Introducing new increases that welcome current market require and the holds of newly targeted market segments. One example from the past Is Naives emphasis on health and busy lifestyles as more women went to work In the 1 sass. Others Include the interpolation of sun blocker, skin protection, and tanning fruits to controvert the more active, outdoor lifestyles In movement from the sass to today plus products for every skin type and need. To meet the needs of new market segments, Naive expanded its product lines to take children and men.All these new products were guid ed by the Naive standards each product mustiness meet a basic need, be simple and uncomplicated, not wish to solve only one specific problem, be a fiber leader, and be priced such that consumers perceive a balanced cost-benefit relationship. Beds new product strategy was honed in the sass when competitive challenges prompted the company to take stairs to revivalist the brand. It used a two-pronged approach. First, to counteract perceptions hat Naive had an older, little dynamic Image, the company for the first time described specific product benefits In Its advertising.Before this, advertising had focused on the variety of settings In which each product could be used, Second, BFD Introduced additional products that would leverage the recognition and reputation of the Naive name In growing segments AT ten mar et K . Nines argon sun-Dramas, sun as Naive Shower and Bath, Naive for Men, Naive Sun, Naive Hair Care, Naive Body, Naive Visage, and the recently introduced Naive Baby. In 1990 BFD internationalization its rands by creating a worldwide name for each product category and implementing roughhewn packaging on a global basis.Moreover, all ads, regardless of the country in which they ran, had to evoke a common emotion, use the same typeface, incorporate the same kinds of deal, and use a uniform Naive logo. The result is a highly standardized approach to global marketing. sort of than focusing on the individual differences among peoples around the globe, the firm focuses on the similarities. after(prenominal) all, as one company official notes, all people hurl skin and many an(prenominal) people have he same needs and ideas. This leads to a direct approach and a high degree of consistency.When a firm operates in as many markets as BFD, consistency, simplicity, and focus on the same benefits not only create a universal brand image, they also reduce headaches. Many fewer marketing decisions have to be made. Standardized advertising campaigns need be adap ted only around by translation into the local language. Because the costs can be broadcast around the globe, its much less expensive to run a oneness global campaign rather than many separate regional ones. And marketing control is much simpler and easier with a standardized program.Packaging costs are cut back and product recognition is very high when people encounter the product in other countries and cultural situations. The second element of the BFD strategy is exploiting regional growth opportunities. Doing so, however, may necessitate some adjustments to the standardized approach. Because Naive Creme is a European product, its appeal and marketing approach can be very similar in many parts of the globe. The United States, Canada, Latin America, and reciprocal ohm America were all populated by European settlers.This produces some coarseness in cultural background and light skin type, with the result that many products developed for the German market can be sold in these m arkets with little or no product or marketing adaptation. A focus on healthy, glowing skin will sell cosmetics in nearly all these markets. Of course, the company might use darker-haired models with more olive complexions in the Latin and South American markets. And it might develop bespoke sub-brands and programs for important sub-segments of all these markets.However, as Naive moves further away from this common European cultural base, its products may be less swell up meet to the market. This is particularly true in African nations, where a majority of people have much darker skin and may require different sorts of moisturizer and sunscreen products. In between the European and African markets are the Asian markets, which are characterized by yellow and frequently more pale complexions. Although Naive sells well in some Asian markets, such as Indonesia and Thailand, it sells less well in Japan.The difference in gross revenue is attri exclusivelyable to both market and cultural conditions. In the past, Japanese markets were strongly protected and there was comparatively little competition from non- domestic manufacturers. Unfortunately for Japanese merchants, the resulting high prices provided a strong lure to foreign producers. When BFD first entered the Japanese market, it was highly successful. however as Japanese markets have opened up, competition has increased, price care has been abolished, and prices have fallen.As a result, BFD has reduced the number of products sold there, and focused on ten more pro Detailed ones. I nerve are cultural Territories Detente markets sun as Germany, the United States, and Japan. Germany and the United States are categorize as low-context countries, which means that ads should state explicitly what the product will do. Japan, in contrast, is a high-context country in which product claims do not need to be stated explicitly. Rather, because Japanese consumers want to form relationships with companies, the company i tself should be prominently featured in advertising.If the company is worthy of consideration, then the quality of TTS products is assumed to be high. Thus, an advertising campaign prepared for Germany requires more than scarcely a little tweaking in order to promote products successfully in Japan. All these differences argue for more adaptation of Naive products and marketing to match cultural and market differences outside Germany and the European market. However, as economies develop, they tend to admit many of the same tastes as developed economies. An example is Russia, where men -? especially younger men-?are beginning to spend more on cosmetics.They are eying many of the same brands as their Western European counterparts-?Gillette, Naive for Men, of age(predicate) Spice, and a few designer brands such as Christian Dior, Airman, old-timer Lance, Arms, Guy Larch, Gucci, and Pace Arabian. Price is not the crucial variable in the purchase decision-?men are buying based on pro duct characteristics such as fragrance and brand awareness. For companies such as Naive and Gillette, which are willing to spend on advertising, the market seems quite responsive. The lowlife line is the increasing homogeneities that argues against customization of arduous for specific markets.Speaking of bottom lines, Beresford has done very well with its own. Total sales for Beresford cosmetics business grew at 5. 7 per centum in 1996, despite decreased sales of the companys higher priced Label and Atria lines and get down sales in Japan. The Naive line grew by 13. 3 percent, furthest outpacing the more expensive cosmetics and skin care products. However, growth around the world has been uneven. Although Beds brands experienced double-digit growth in Eastern Europe, Scandinavia, Southern Europe, and South America, sales growth withinGermany and some Northern European countries has been much lower ascribable to the difficult economic situation. Naive held its own in the United States, but grew by 36. 3 percent in Mexico. Despite strong growth in Thailand and Indonesia, sales in Asia and Australia fell by 10. 4 percent, moved(p) by the downward trend in Japan and China. Compounding the Japanese losses are unfavorable exchange rates between the long and the mark, which reduced earnings even further. Even so, although the overall global figure of speech for Beresford is quite good, its still Just a little fuzzy in some parts of the world.