Nivea: Softening and Standardizing Global Markets

The grasss positioning withal make it distinct from other yields on the grocery place It was a multipurpose cream exchange at a worth that make it available to the masses, rather than to sole(prenominal) the upper class wowork force who were the competitions target merchandise. Over the years, fleeceables positioning outline has remained as simple and steadfast as the now- familiar blue-and-white package. Despite either the scientific rise upments the company has Introduced In splutter electric charge harvest-tides, and all the markets it has sell In, unreserveds marketing unceasingly foc engrosss on key blot benefits-? superior quality, reasonable price, straightforward approach, and mild hide c be.This commitment to the mainstream market and focus on multipurpose applications government agency that any fruit introduced under the Naive name has to align to guidelines which ensure that ein truthone working on the brand slightly the world knows what it stan ds for. Naives marketing dodging is well stated by honk Sunnis, chairman of the Beresford Group The strategy of minginess on exploiting market potentials and regional harvest-festival opportunities is to be continued. The similar applies to moves into upstart market segments and to increased investment in look into and development. Exploiting market potentials means constantly Introducing new convergences that meet current market motif and the necessarily of newly targeted market segments. un coupleable example from the past Is Naives emphasis on health and active lifestyles as more than than women went to work In the 1 sass. Others include the Introduction of sunscreen, fell protection, and tanning products to match the more active, outdoor lifestyles In elan from the sass to today plus products for every scratch up type and need. To meet the needs of new market segments, Naive deal out its product lines to include children and men.All these new products were guide by the Naive standards each product must meet a canonic need, be simple and uncomplicated, not post to solve only one peculiar(prenominal) problem, be a quality leader, and be priced such that consumers perceive a equilibrize cost-benefit relationship. Beds new product strategy was honed in the sass when competitive challenges prompted the company to gravel steps to revivalist the brand. It used a two-pronged approach. First, to counteract perceptions hat Naive had an older, less(prenominal) dynamic Image, the company for the first sequence described specific product benefits In Its advertizing.Before this, advertising had focused on the commixture of settings In which each product could be used, Second, BFD Introduced additional products that would leverage the recognition and study of the Naive name In suppuration segments AT ten mar et K . Nines atomic number 18 sun-Dramas, sun as Naive Shower and Bath, Naive for Men, Naive Sun, Naive Hair C atomic number 18, Nai ve Body, Naive Visage, and the tardily introduced Naive Baby. In 1990 BFD internationalization its rands by creating a worldwide name for each product category and implementing roughhewn incase on a ball-shaped basis.Moreover, all ads, regardless of the country in which they ran, had to chide a common emotion, use the akin typeface, incorporate the same kinds of people, and use a uniform Naive logo. The result is a highly regularise approach to world-wide marketing. Rather than focusing on the someone contraventions among peoples around the globe, the firm focuses on the similarities. later on all, as one company prescribed notes, all people have skin and more people have he same needs and ideas. This leads to a range approach and a high microscope stage of consistency.When a firm ope judge in as many markets as BFD, consistency, simplicity, and focus on the same benefits not only fabricate a universal brand image, they also reduce headaches. Many fewer marketing dec isions have to be made. Standardized advertising campaigns need be adapted only slightly by translation into the local anaesthetic language. Because the costs can be spread around the globe, its over a lot less overpriced to run a single spherical campaign rather than many assure regional ones. And marketing control is much simpler and easier with a standardized program.Packaging costs are decrease and product recognition is very high when people encounter the product in other countries and pagan situations. The bet on element of the BFD strategy is exploiting regional harvest-tide opportunities. Doing so, however, may necessitate some adjustments to the standardized approach. Because Naive Creme is a European product, its collecting and marketing approach can be very similar in many parts of the globe. The join States, Canada, Latin America, and sec America were all populated by European settlers.This produces some commonality in cultural background and light skin typ e, with the result that many products developed for the German market can be sold in these markets with little or no product or marketing fitting. A focus on healthy, glowing skin provide sell cosmetics in to the highest degree 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 tailored 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 well suited to the market. This is particularly true in African nations, where a majority of people have much darker skin and may require distinguishable 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 In through with(p)sia and Thailand, it sells less well in Japan.The difference in gross gross gross revenue is attributable to some(prenominal) market and cultural conditions. In the past, Nipponese markets were plasteredly protected and there was relatively little competition from non- domestic manufacturers. unfortunately for Nipponese merchants, the resulting high prices provided a smashed lure to foreign producers. When BFD first entered the Japanese market, it was highly successful. But as Japanese markets have opened up, competition has increased, price maintenance 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 tiny ones. I nerve are cultural Territories Detente markets sun as Germany, the United States, and Japan. Germany and the United States are classified as low-context countries, which means that ads should state explicitly what the product will do. Japan, in contrast, is a high-context country i n which product claims do not need to be stated explicitly. Rather, because Japanese consumers hope to form relationships with companies, the company itself should be prominently featured in advertising.If the company is proper of consideration, then the quality of TTS products is assumed to be high. Thus, an advertising campaign prepared for Germany requires more than retributory 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 acquire many of the same tastes as developed economies. An example is Russia, where men -? especially younger men-?are send-off to spend more on cosmetics.They are eying many of the same brands as their westerly European counterparts-?Gillette, Naive for Men, Old Spice, and a few designer brands such as Christian Dior, Airman, Bo ss Lance, Arms, Guy Larch, Gucci, and gait Arabian. Price is not the crucial protean in the purchase decision-?men are buying based on product 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 bottom line is the increase 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 percent in 1996, despite decreased sales of the companys higher priced Label and Atria lines and lower sales in Japan. The Naive line grew by 13. 3 percent, far outpacing the more valuable 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 Norther n European countries has been much lower due to the tight 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, bear upon by the downward trend in Japan and China. Compounding the Japanese losings are unfavorable exchange rates between the yen and the mark, which reduced payment even further. Even so, although the overall global picture for Beresford is quite good, its still Just a little fuzzy in some parts of the world.