Marketing and Management for Company Beiersdorf-assignmenthelp

Question: Discuss about theMarketing and Management for Company Beiersdorf. Answer: Introduction NIVEA is an international brand that delivers high quality skin and beauty care product. The company was founded in 1882 by a German skin and beauty care company Beiersdorf. The companys market research identified a gap in the market that resulted in the launch of NIVEA VISAGE Young in 2005. The product targets the girls between the age group of 13 to 19. They are launching this line of product in the UK market and follow the cost based pricing. This report will identify the potential problems that the company might face in their re-launch of the product. It will also consider identifying the cause and symptoms and provide recommendations for the company to overcome the situation. Statement of the Problem NIVEA is re-launching their new line of product for the UK market. The Problem the brand is currently facing is the competitive challenge from the other similar products. Another problem that can be identified from the case is the pricing of the product. It is higher than the previously launched product. The last problem that might occur for the company is in the promotion as they promote their product through their FYI magazine and sample testing. Causes and Symptoms The biggest competitive challenge faced by NIVEA in the UK market is from The Body Shop. They have a wide range of products for all age group in the biggest advantage for the competitor company. NIVEA on the other hand is introducing their new line of skin product for the teenagers under the brand name of NIVEA VISAGE Youth. It is the re-launch of their similar product with some modification in the product and packaging while considering the corporate responsibility to increase their brand value (Daellenbach, 2014). Cost based pricing sets the price of the product according to the production expenditure. This pricing strategy is unfit for launching a new product in the market. This will make the company lose their opportunity for generating profit from the product launch. The company has opted for the promotion through their FYI magazine and sample distribution which is no doubt a brilliant way for promoting their product. However, the modern day teenagers show greater attachment in the social networking that limits their contact with the paper magazines. Moreover, the mothers of these teenagers also tend to purchase these beauty products for their children who also represent attachment with the social networking. The influence of the social networking has minimized the use of magazine that is the opted mode of promotion for the product. Placement selected for the product on the other hand is through the retailer that is a cost effective and can potentially decrease their profit margin. Case Analysis According to Rajni, Modi and Singla (2015) the social networking is the best possible way of promoting products in modern market. The product introduced by NIVEA is a skin care product for the teenage girls. Hence, the brand can gain an additional advantage if they use social network marketing along with their traditional marketing process. Baykaso?lu, Glck and Akyol (2017) propose the use of price skimming strategies for the new launches that can gain possible success in the market. The cost based pricing that the brand is currently using is incompetent for a new product launch in the market. The skimming process will generate more revenue from the product in its initial stage. Placing the product between the competitors in the market is the biggest challenge for the company to launch a new product line (Rahmani, Emamisaleh Yadegari, 2015). NIVEA plans to place their products in the high street stores and the supermarkets that are cost effective. Alternative Recommendation Though NIVEAs business and marketing strategies are beneficial for the company in the present day market, they clearly need to modify their strategies to attain a sustainable growth in the market. The company is currently following the cost based pricing for their new product, which is ineffective for the creating customer base in the market. It is essential for them to follow the penetration pricing strategy that places the product with initial low pricing. It helps the company to draw customer and enables the company to develop market share within a short period of time. Moreover, it facilitates in developing the product habit in the customers. The company can later increase the price accordingly without hampering the customer loyalty. The new product launched by the company is for the teenagers of the UK market. The product is different from other similar products in the market as they use sea salt instead of petroleum. However, these hardly matters for the teenagers as they only seek for the products that will make them look beautiful. However, a large number of mothers of the children buy these products where they will definitely get advantage. Moreover, they are selling their product in a new large packaging. The company should also introduce a pocket pack as the primary target segment for the product is the teenage girls. It will make it easy for the girls to buy a small product and carry it with them. Small packaging also means high profit that can be the primary medium for the company to generate revenue. The company should use the social network marketing for their product for promoting their product. It will decrease their promotion cost and increase the number of addressed audience. Conclusion NIVEAs business and marketing strategy is gaining them profit in the current market. However, they will require modification in their strategies with the developing changes of the market to hold their position. The recommended modification is set accordingly with the changing market of UK that counts the modernization and technology in the companys business and marketing strategy. Reference Daellenbach, U. (2014). Competitor Analysis.Wiley Encyclopedia of Management. Baykaso?lu, A., Glck, ?., Akyol, D. E. (2017). A fuzzy multiple-attribute decision making model to evaluate new product pricing strategies.Annals of Operations Research,251(1-2), 205-242. Rajni, M., Modi, S. K., Singla, B. B. (2015). AN EMPIRICAL STUDY ON PRODUCT PROMOTION ON SOCIAL NETWORKING SITES: A REVIEW. Rahmani, K., Emamisaleh, K., Yadegari, R. (2015). Quality Function Deployment and New Product Development with a focus on Marketing Mix 4P model.Asian Journal of Research in Marketing,4(2), 98-108.