MIP Final

Marketing In Practice Individual Assignment
Marketing in Practice Individual Assignment
Name
: Dimitri Wu (CB002549)
Module Code
: BLB10151_2
Module Title
: Marketing in Practice
Assignment Title
: Individual Assignment
Intake Code
: HF0831BIT
Name of Lecturer
: Mr. Marlon Gunasekara
Date Assigned
: 7th April 2008
Due Date
: 30th June 2008
Asia Pacific Institute of Information Technology
Acknowledgement
I would like to take this opportunity to thank my lecturer Mr. Marlon Gunasekara for providing
his guidance and knowledge and also for spending his precious time with me throughout this
project period and for giving me the opportunity to improve my knowledge in the world of
marketing.
I would also like to thank my colleagues and my friends of senior batches who provided their
expertise and knowledge to develop this project.
I would also like to thank APIIT Lanka (Pvt) Ltd for providing the necessary tools, books and
equipment in developing this project.
Table of Contents
1.0 Executive Summary ................................................................................................................ 5
2.0 Background of the Company ................................................................................................. 6
3.0 The Internal and External Environmental Influences ........................................................ 7
3.1 Micro Environment ............................................................................................................... 8
3.2 Macro Environment............................................................................................................. 10
4.0 Competitive Environment .................................................................................................... 12
5.0 SWOT Analysis ..................................................................................................................... 15
6.0 Marketing Objectives ........................................................................................................... 16
7.0 Market Segmentation ........................................................................................................... 17
8.0 Targeting Strategy ................................................................................................................ 18
9.0 Positioning Strategy .............................................................................................................. 20
9.1 Conceptual Map .................................................................................................................. 22
10.0 Marketing Mix .................................................................................................................... 23
10.1 Product .............................................................................................................................. 23
10.2 Price................................................................................................................................... 24
10.3 Place .................................................................................................................................. 26
10.4 Promotion .......................................................................................................................... 28
11.0 Budget Allocation ................................................................................................................ 30
12.0 Gantt Chart ......................................................................................................................... 31
13.0 Controls ................................................................................................................................ 32

14.0 Conclusion ........................................................................................................................... 33
15.0 Abstract ................................................................................................................................ 34
15.1 Marketing Research Process ............................................................................................. 34
15.1.1 Problem Definition ..................................................................................................... 35
15.1.2 Research/Design Methodology................................................................................... 35
15.1.3 Data collection method ............................................................................................... 36
15.1.4 Time Frame................................................................................................................. 38
15.1.5 Budget ......................................................................................................................... 39
15.1.6 Implementing the research.......................................................................................... 40
15.1.7 Data Analysis .............................................................................................................. 40
16.0 Appendix A .......................................................................................................................... 41
17.0 Appendix B .......................................................................................................................... 43
18.0 References ............................................................................................................................ 47
1.0 Executive Summary

The Nivea Company offers a wide range of product and services for the cosmetic industry. It is a
company that has established themselves worldwide and also has lived up to good customer
expectations which bring them their superior brand image. Even though they started only by
producing womens products we can see that they have come up with various mens products
recently in order to capture that part of the market as well. Even though its an international
company it has a similar customer base in Sri Lanka as opposed to other countries. The company
was founded in 1890s and since then it has been able to fulfill customer needs through their
products which enables them to capture the hearts and minds of customers.
When considering the Nivea Fresh product, it has been developed with the basic idea of
eliminating body odor. The product is targeted for the affluent females in the society and
therefore will have aspects such as style and prestige.
The objective of the company is to grab majority of the target market by winning the hearts and
minds of its customers. This could be done by positioning the product with style, class and
prestige. The company also wishes to increase its sales by 30% within a period of 12months.
In reaching these objectives the market segments were selected and a targeting and position
strategy was decided upon. A mass promotion campaign is also planned and will include
television and magazine advertisements, E-Flyers, posters etc
The allocated budget for the entire marketing plan and activities is 200,000 USD. A breakdown
of all costs will be done which will help us gain a rough idea of the costs incurred for each
activity. A control activity will be carried out to make sure that the marketing plan is
implemented in the proper manner in order to make the project a success.
2.0 Background of the Company

Dr. Oscar Troplowitz had acquired Beiersdorf in Hamburg, Germany, from its founder Paul C.
Beiersdorf in 1890. Until NIVEA Creme was invented, Troplowitz successfully developed and
produced the first technical adhesive tapes along with medical plasters and the first adhesive
rubber. His scientific adviser, Prof. Paul Gerson Unna, also had a sure eye for development and
progress. He had been the one who had drawn Dr. Troplowitz attention to the invention Eucerit,
which had been the basis for the NIVEA Creme.
1911 was the year NIVEA Creme was born. It owes its development to the product Eucerit.
After decades of research Dr. Isaac Lifschtz discovered this revolutionary emulsifier, which
meant that a product was now available which could combine an active substance, fat and water
to give a stable base for ointments. The highly creative Dr. Oscar Troplowitz of the Beiersdorf
Company used Eucerit, originally discovered for the medical field, as the base for a completely
new kind of cosmetic cream: NIVEA Creme.
Just shortly after its invention, in December 1911, NIVEA Creme was sold in a yellow tin. The
fanciful decoration of green tendrils reflected a popular artistic trend of the period, Art Nouveau
(French for 'new art'), characterized by intertwined and ornamental shapes found in nature. In
accordance with the custom of giving Latin names to pharmaceutical products, Dr. Troplowitz
called his snow-white cream NIVEA, derived from the Latin adjective niveus/nivea/niveum,
meaning snow white. As the core product of the NIVEA universe its formulation has changed
little since its first years.
At the beginning of the century the company Beiersdorf, located in Hamburg (Germany) had
already been successful not only with the NIVEA Creme but also with other innovative products
such as technical adhesive tapes, medical plasters and the first adhesive rubber plasters. In 1914
the company did business with 34 countries worldwide and 42% of sales were generated abroad.
(http://www.nivea.co.uk/history - accessed on 20th June 2008)
3.0 The Internal and External Environmental Influences
(http://www.finntrack.com/marketing_centre/kotler.htm - accessed on 22nd June 2008)
The marketing environment is all the micro and macro factors and forces that affect the ability of
marketing management to develop, maintain and sustain successful transactions with its target
customers. The marketing environment can be divided mainly into two sectors. That is the,
Micro environment
Macro environment
3.1 Micro Environment

Micro environment is the forces that are close to the company which affect its ability to serve its
customers. When carrying out this study we must take the following into consideration,
The Company
When taking the Nivea company into consideration it is clear to us that the leaders of the
company has had a very good vision and product and marketing strategy in developing all of
their products which sets their standards at a very high level. Since the company has a very good
structure and is flexible the decision making is at the very best. The available resources in the
company will play a major role in carrying out these decisions. The company should have a very
good support staff because they are vital to the company when considering the strengths and
weaknesses both in the short run and the long run. Since technology changes at a high rate in
todays world and new technology is introduced almost every day it is a must that the company
has a watchful eye on the world of technology and make arrangements if necessary. This will
help the company to be effective and efficient. The company should be focused on getting their
products in the market to the top, in order to gain the desired profits.
Suppliers
The suppliers play a major role in the companys overall customer value delivery system. Since
the suppliers are responsible for providing the resources needed by the company to produce its
good and services any delays or shortages will directly affect the production and sales in the
short run which will cause customer dissatisfaction which therefore will leave a tarnished image
of the company in the customers mind.
Marketing intermediaries
These are the people that help the company to promote, sell and distribute its goods to the final
buyer. Therefore it is important to have a good understanding and relationship with these
intermediaries. Such intermediaries include resellers, physical distribution firms, marketing
services agencies and financial intermediaries.
Customers
Since the companys main goal is to create customer satisfaction through its products the
company needs to study its customer markets closely. These markets are the consumer markets,
business markets, reseller markets, government markets and international markets. Since Nivea
is a large and multi-national company it is important to have good relationships in these markets
in order to delight their customers. When taking our new product Fresh into consideration the
company must work towards gaining the attention and winning the hearts of the affluent females.
Competitors
The direct competitors of Nivea would be deodorant producers such as Fa, Dove, LOreal,
Rexona and Olay. To gain the hearts and minds of its customers Nivea has to provide a greater
value to its customers than its competitors. Therefore it is necessary that they carry out a research
process on their competitors behavior and be well aware of them.
Publics
This is where any group that has an actual or potential interest or impact on an organizations
ability to achieve its objectives. A few of these publics are media, banks, government, stock
holders, general public and internal publics, local publics. Since they have an impact on the
ability to achieve company objectives, the Nivea Company should pay a considerable amount of
attention to these publics.
3.2 Macro Environment

The macro environment consists of the larger societal forces that affect the ability to serve its
customers. We must take the following into consideration in carrying out this study,
Demographic environment
This is the study of human population in terms of size, density, location, age, gender etc since
this involves people it should be of great interest to the company because of the fact that people
make markets. Because the Nivea Fresh is for the affluent female market it is considered as a
niche market and therefore the distribution must be limited only to the cities and urban areas of
the country.
Economic environment
These are the factors that affect consumer buying power and spending patterns. The company
should pay close attention to major trends and consumer spending patterns both across and
within their world markets. Changes in income and changing consumer spending patterns are
some of these major economic trends. When taking the Sri Lankan market into consideration we
can say that a deodorant product that is produced for the affluent female market could survive in
the market and generate a favorable amount of sales.
Natural environment
The natural resources that are needed as inputs or that are affected by marketing activities. Since
Sri Lanka is a tropical country and has a warm and sunny atmosphere most of the time
throughout the year it is quite clear that a product such as deodorant will be of great interest to
the people. Therefore in this case for the Nivea Fresh product the natural environment will have
a considerable amount of impact in the sales of the product.
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Technological environment
This consists of the forces that create new technologies, creating new product and market
opportunities. Since Sri Lanka is a developing country the technology cannot be matched to
those of a developed country. But since the product is a deodorant it is quite suitable for the
current market situation in Sri Lanka.
Political environment
We have to take the political situation in the country into consideration in this factor, and since
the target market of the Nivea Fresh is the affluent females the political environment proves to be
suitable. In producing and selling this product the company does not violate any laws,
government agencies or pressure groups thus proving that a suitable situation persists in the
country.
Cultural environment
Since the product is targeted for the affluent females and since Sri Lanka has a rich culture and
history it is important that the company understands this when launching the product. A
considerable amount of research should be done to understand the mindset of the women in Sri
Lanka as well as the culture and history of the country.
Social environment
In this sector the company should understand the behavior of the Sri Lankan society. The values
and beliefs of the society have to be taken into consideration when launching the product. Since
the target market is the affluent females the company should have a thorough understanding of
their behavior and mindset for the product to be successful in the market.
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4.0 Competitive Environment

Porters Five Force Analysis
(www.kzero.co.uk/blog/?p=1553 accessed on 26th June 2008)
Rivalry
Firms strive for a competitive advantage over their rivals. The rivalry among firms could be
measured in intensity and it varies across industries. Since the product is a deodorant there are
many players in the market and hence the industry will be changing rapidly. Since the Nivea
company is a large player in the industry it need not worry about the small players but however
they must be vigilant about the other large players in the market because they impose a direct
threat to the company if and when they introduce new products to the market. In this case the
Nivea Company should do whatever means necessary to keep the Nivea Fresh alive in the minds
and hearts of its customers.
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Threat of substitutes
In Porters model substitute products refer to products in other industries. A threat of a substitute
exists when a products demand is affected by the price change of a substitute product. A
products price elasticity is affected by substitute products. As more substitutes are available
there will be an increase in demand thus creating more alternatives for customers. In this
scenario if a substitute product reduces its price in comparison to the Nivea Fresh product
there will be a reduction in sales. With the ongoing inflation rate and increasing prices of Sri
Lanka, consumers are price conscious and therefore will bring a direct threat to the sales of the
Nivea Fresh product.
Power of buyers
The power of buyers is the impact that customers have on a producing industry. In general when
buyer power is strong the relationship to the producing industry will be a market in which there
are many suppliers and one buyer. Since the Nivea Fresh is for the affluent females and is a
Niche market the decision of the buyers will determine whether the sales of the product will
maximize or minimize.
Power of suppliers
In a producing industry raw material is a major requirement. Usually these are supplied by
suppliers which lead to buyer supplier relationships. The supplier can wield an influence on the
producing industry if they are powerful. For an example the supplier can sell the raw materials at
a higher price in order to capture some of the firms the profits. Therefore the Nivea Company
should be aware of this and should have a close a relationship with its suppliers and keep them in
good books.
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Threat of new entrants

If a new competitor enters the market it will impose a direct threat upon all of its competitors.
For example if a new company that produces deodorants enters the market it will be a threat for
the Nivea Company. Since there are early adopters in the market who like to try out new
products will try out the new product by the new entrant and if it provides a better service and
value they will settle for it. It will not be an easy task to regain these customers. Therefore the
Nivea Company should keep a lookout for the new entrants and do necessary changes from time
to time to keep the product alive in the market.
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5.0 SWOT Analysis
(www.esmgolf.com/onsitereviews.html - accessed on 26th June 2008)

When considering the Nivea Company the Strengths are as follows,
Leading brand name

Strong distribution channel
High production quality
Good customer loyalty/relationships
The Weaknesses are,

Only a small portion of the market could be targeted
The Opportunities are,

Technological advances
Competitor weaknesses
New entry into the market
The Threats are,
Changes in consumer taste

Government interventions and policies
Tax increases
Disagreements within the company departments
Refer Appendix A
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6.0 Marketing Objectives
To create awareness of the high quality product offered to the affluent females
To gain this objective we must position the product in a very high class manner. We can do this
by means of creating high quality advertisements. For an example we can relate the product with
a well recognized and highly recommended female that is accepted by the society. Instruments
such as the media, brochures and internet advertisements could be used to do this. We must
create an image in the hearts and the minds of the customers that if you use Nivea Fresh you
will be accepted and recognized in the society for what you are and that the day to day activities
will be so much easier because it will keep you fresh all day long. Since the product is for the
affluent females we can take advantage over their need for social recognition. The price of the
product could be set to a fairly high rate and make it available only in a few exclusive
supermarkets in major cities in order to give the product a sense of exclusiveness.
To attract customers of different age groups in the target market and gain majority
In order to do this we must first do some research in order to find out how females think in
different age groups. For example if the affluent females in the age group of 21-30 like to use
deodorant sprays and females in the age group of 31-40 like to use deodorant sticks, then we can
develop the Nivea Fresh in different categories. A few of these categories will be deodorant
sprays, sticks and roll-ons. A major promotion scheme will be carried out in major shopping
malls and super markets in order to capture the mindshare of the target market and gain the
majority.
To increase sales by 30% within a period of 12 months
In order to achieve this we must carry out an appropriate sales plan. This plan should clearly
specify how, when and where the sales are going to be done. The sales should be analyzed on a
monthly basis. The necessary decisions should be made after the analysis is done, whether the
company is going to continue with the same plan and strategy or whether any changes are to be
made.
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7.0 Market Segmentation

Market segmentation is where we divide the market into distinct group of buyers with different
needs, characteristics or behavior who might require separate products or marketing mixes. Since
the Nivea Fresh product is for the affluent female market the following segmentation bases were
chosen.
Geographic segmentation
This is where we divide the market into different geographical units such as nations, states,
regions, cities etc In this scenario we have to focus on the cities and suburban areas of Sri
Lanka. Since most of the high class and middle class working population lives in the cities and
suburb areas we must make our products available in those areas. We could use exclusive super
markets and a few exclusive outlets in distributing the product and which will also give a high
class look to the product.
Demographic segmentation
This is where we divide the market into groups based on the factors such as age, sex, income,
occupation etc The main factor that we have to take into consideration would be the sex
because the product is for females. Since the target market is the affluent females we also have to
take the income level into consideration which also leads to the consideration of the occupation.
These sectors could be used in understanding the high class females and their behavior in the Sri
Lankan society.
Psychographic segmentation
This is where we divide a market into different groups based on social class, life style or
personality characteristics. Since the product is for the affluent females we have to focus on these
aspects. As our target market is the affluent females we must understand that they think a lot
about their social status and the products they use count a lot when they are trying to reach a high
level of social status. Therefore it is very important that we fully understand the lifestyles and
personality characteristics of the affluent females in Sri Lanka.
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8.0 Targeting Strategy

The target marketing process involves the following four steps which are identifying the markets
with unfulfilled needs, segmenting the market, targeting specific segments and positioning the
product through the marketing strategy. The process is illustrated below.
Identifying
Markets with
unfulfilled
needs
Determining
Market
Segmentation
Selecting a
Market to
Target
Positioning
Through
Marketing
Strategies
When taking the research factors into account the company will be going for a mass marketing
strategy within the target market because the company will be producing only one product for
the entire target market. Since the company has identified the target market as the affluent
females the research statistics show that the majority of the potential customers have similar
expectations from the product which we can use as an advantage towards making the product a
success. As mentioned above in the marketing objectives the company has decided to categorize
the product mainly into three sections. We have decided to have 60% sprays, 30% roll-ons and
the rest as sticks. The following graph shows us the breakdown.
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The company plans on developing more categories such as the powder, balm and the compact
version (which is small in size and easy to handle) and testing with them for further
enhancements. The research statistics also show that hygiene is a key factor that consumers are
worried about. Therefore the company has decided develop the product based on this and which
will also keep the consumers fresh and free of body odor for 24hours a day.
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9.0 Positioning Strategy

Positioning has been defined as the art and science of fitting the product or service to one or
more segments of the broad markets in such away as to set it apart meaningfully from
competition (Belch & Belch, 2001, pg 52). Positioning is important as it affects how customers
perceive the store image and what attributes that come to customers minds in relation to the
brand. The positioning strategy is determined by addressing the following areas determined in
the diagram.
Competitor
Identification
Analyzing Consumers
insight of
Competitors
Monitoring
the Position
Making the
Positioning
Decision
Determining the
Position of
Competitors
Analyzing the
Consumers
Preferences
When we are identifying the competitors we can divide them into two main sections. That is
direct competitors and indirect competitors.
The Direct Competitors are,
Oriflamme
Fa
Dove
LOreal
Olay
The Indirect Competitors are,
Rexona
Desire
Goya
Soaps
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Rexona, Desire and Goya were identified as indirect competitors because there products are
differentiated and they do not cater wholeheartedly to the affluent female market. A few soaps
offer the services of preventing body odor and giving fragrance. Even though this is true since
they do not fall under the deodorant category we have identified them as indirect competitors.
In positioning the brand image of Nivea Fresh, the main aim is to position the brand as
exclusive and high class. The promotional campaign will aim at distinguishing the exclusivity of
the products and also to create awareness of the value added services of the company, especially
the concept categorization of the product. All advertising which consists of media, magazine
advertisements and web-marketing will strive to achieve the above objectives. The slogan of the
company for deodorant products Gentle Effective Protection All Day Long will help the
customer to better understand the product and associate exclusivity with Nivea.
The above positioning strategy is suitable for Nivea as the management aims to build a strong
brand image that is based on exclusivity and style. This brand image will help to improve the
competitive positions of Nivea with regard to its direct competitors. Furthermore Nivea also
possesses the financial resources needed to build their brand image.
A mechanism is needed to monitor the success of the promotional efforts undertaken by Nivea
and to monitor changes in the customer needs and perceptions in the market. A questionnaire
will be administered in the leading stores where the Nivea Fresh product is sold, semi annually
to identify customer perceptions and changing needs.
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9.1 Conceptual Map

Prestige
Ideal match
Niveas current status
Fragrance
Hygiene
Style
As we can see in the conceptual map above it clearly identifies the current situation of the
product when analyzing it with aspects such as fragrance, hygiene, style and prestige. The ideal
match will be the perfect position for the product and the company should work towards
minimizing the gap between these two.
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10.0 Marketing Mix

10.1 Product
A product is anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a want or need. (Kotler, 2006, pg232)
As stated before, Nivea focuses mainly on the exclusiveness and high class style. The categories
that Nivea deals with are sprays, roll-ons and sticks. Since the product is new we can use the
brand image of the company to a great extent when grabbing the attention and mindshare of the
target customers. For the new product Nivea Fresh fragrance and hygiene will be the key
which holds the factor of grabbing the attention and mindshare of the target customers. Also the
factors such as 24hour freshness, prestige and style will be a part of the promotion and
positioning strategy which will help us to win the hearts and mindshare of the affluent females.
Core Benefit
Augmented Product
Basic or Actual Product
Core Benefit
The core product refers to the use, benefit or problem solving that the consumer is really buying
when purchasing the product. For an example when a consumer buys a vehicle core benefit
would be transportation because thats the ultimate motive of buying a vehicle. In this scenario
since its a deodorant product the core benefit would be the elimination of body odor. Aspects
such as hygiene, 24hour freshness and prestige also arise as sub categories when using the
product.
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10.2 Price
Price is the only element of marketing mix that is directly linked to revenue levels. This is the
only element that brings revenue to the organization. The pricing should be done in away where
the cost incurred could be covered and profits could be made. It is also very important to be fair
to the customers when setting the price of the product. When deciding the price the company
should focus on these viewpoints in addition to the appropriate blending of the other factors of
the marketing mix.
There are three main approaches to pricing,
Cost based pricing
Value based pricing
Competitor based pricing
Cost based pricing is where the pricing is done according to the costs incurred in developing the
product where as value based pricing is where we set the price of the product based on the
perceived value to the customers, rather than on the actual cost of the product. Competitor based
pricing is where we set the price of the product based upon prices of similar competitor products.
When taking these factors and research factors into consideration we can say that it is best to
carry out a cost based pricing approach for the Nivea Fresh product. The company will have to
take the factors such as shipping cost, transport expenses, duties and taxes into consideration
when setting the price because we have to import the product. Since the Nivea Fresh is for the
affluent females we must not set the price at a low level. The price should be set at a balanced
level, which is not too high or too low in order to capture the target market. The following table
will show us the breakdown of the costs incurred in developing the product.
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Cost incurred in developing deodorants in the main three categories. All figures are in Sri
Lankan Rupees (LKR)
Spray
Roll-on
Stick
Manufacturing Cost
175
150
125
Transport Cost
100
100
100
Shipping Cost
85
50
60
Import Duty
230
230
230
Profit
50
60
60
Total
640
590
575
As we can see the cost of the deodorant spray is high when compared to others. The reason for
this is because the manufacturing cost and the shipping cost is high in relation to the other two
product categories. The reason for this is because the company has decided to have aluminum
bottles rather than plastic because the formula inside should be in a safe environment and also
because it will give the product a look of style and prestige. The shipping cost is high because
the packaging of the deodorant spray is larger when compared to the stick and roll-on. Since the
shipping companies charge according to the gross weight or volume weight either way, the
shipping charges will be high in relation to the other two categories.
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10.3 Place
Place determination is those related with channels of distribution that serve as the means for
obtaining the product to the target customers. Under this mix we have to make decisions such as,
distribution channels, market coverage, channel members, inventory management, warehousing,
distributing centers etc
Distribution Channel
This study will help us gain a rough idea on how to supply the finished goods from the place of
manufactory to the end consumer. The following graph will show our channel of distribution.
Place of Manufactory the Nivea Fresh product will be manufactured in one of the
main Nivea plants situated in China. This plant is one of the largest manufacturers for the
Nivea Company in the region of Asia. They will be producing the product under the
license of the main Nivea Company which is Beiersdorf AG in Hamburg Germany.
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Export Agent after the production is complete the export agent will take care of
exporting the products to its destination which is Sri Lanka.
Import Agent after the goods arrive in Sri Lanka the import agent will be involved
doing all the clearance such as customs and duty clearing.
Local Distributor after the clearing is done and all expenses paid the goods are handed
over by the import agent to the local distributor. In this case it will be MSJ Industries
(Ceylon) Limited because they have the license to manufacture and distribute certain
Nivea products in the country. They will be responsible in distributing the goods in Sri
Lanka.
Retailer super markets and other excusive outlets which have been chosen to sell the
product will act as the retailer in this case. The product will be available in a few chosen
places such as all ODEL outlets and only in main Cargills and Keels Super outlets
situated in major cities such as Colombo, Kandy and Galle etc....
Customer the affluent females who will purchase the product for final use.
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10.4 Promotion
A concept of marketing communications planning that recognizes the added value of a
comprehensive plan that evaluates the strategic roles of a variety of communication disciplines.
For example general advertising, direct response, sales promotion and public relations combines
these disciplines to provide clarity, consistency and maximum communications impact. This is
important as it specifies the promotional mix that Nivea should use to accomplish its objectives.
Television Advertisements
A television advertisement will be made with a well known young female figure in Sri Lanka
who will also be the brand ambassador for Nivea in Sri Lanka. The advertisement will be
broadcasted in major television broadcasters such as Sirasa, Swarnavahini and MTV etc
Web Intro
A short video clip has been suggested to be screened on the current website making people aware
of the product and giving them a virtual layout of the product which is descriptive and will give
the customer a rough idea about the product.
E-Flyers
Since Nivea is interested in marketing itself through the internet, E-Flyers will be designed for
this purpose. The E-Flyers will be colorful and attractive and will carry the basic information
about the product.
Poster Campaign
A poster campaign will be carried out in the cities and suburban areas in Sri Lanka to create
awareness amongst customers.
Magazine Advertisements
Print advertising is a mass market advertising technique that organizations use and very popular
due to the low costs incurred. This type of advertising is mainly limited to Newspapers and
Magazines. Due to Niveas high end clientele base which is the affluent females promotional
methods will only focus on Magazine Advertisements and that too those appropriate for the high
end market.
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Direct Mailers
This is where the company is directly connecting with its customers. This is usually done to grab
the attention of the selected high end potential customers. E-mails and post mails could be used
in this manner to get the job done.
Event Sponsorship
Nivea is planning on sponsoring a few major events in order to capture the target market. These
events will be those which are especially involved with the affluent females.
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11.0 Budget Allocation
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12.0 Gantt Chart
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13.0 Controls
Even though we have made a marketing plan and it is put into action we must make sure that
objectives and goals mentioned are achieved in relation to the product. A set of control activities
will be followed to measure and evaluate the effectiveness of the marketing plan. The activities
are as follows,
A review and feedback of the product every 2months.
A monthly review on the sales of the product.
Carrying out R&D activities such as customer satisfaction surveys and evaluating them
for any further improvements.
Gathering data on sales from each retail outlet and monitor them. If they are not up to the
expected standard, get feedback from them and apply necessary solutions.
A competitor analysis is to be done every 3months.
An analysis on market trends is to be carried out every 6 months.
The above mentioned activities will be followed in order to keep the product in control of the
marketing plan.
32
14.0 Conclusion
A marketing plan is a gateway to products subsistence in the market place thus a well structured
marketing plan would denote the competitive advantage and the pre-eminence of the product.
Throughout the treatise the enormity and the application of a marketing plan were exemplified
meticulously.
Nivea Fresh is an inimitable product which may dictate the market with its unique features and
benefits. The main purpose of this product is to gratify the basic human need of elimination of
body odor. However it is a known fact that even the most pioneering of products needs high
quality promotion in order to succeed in the highly animated cut throat corporate environment.
Compiled above is the marketing plan for Nivea Fresh. It consists of the marketing mix plan as
well the research process for the product. It also encompasses other promotional activities Nivea
will engage in order to increase brand awareness as well as market share of the product.
The campaign has also been evaluated in order to depict its benefits and shortcomings so that the
organization can foresee predicaments and to take measures to overcome the obstacles and
reinforce the proposed campaign. On a final note, it should be noted that there are infinite
number of economical, organizational, social, and political aspects which can sway the success
of the product, hence it should be acknowledged that the marketing plan is only one of the
moderating variables which influences the success/failure of any given product.
33
15.0 Abstract
15.1 Marketing Research Process
The primary objective of conducting a marketing research is to understand the inner most needs
and desires of the target customers and to provide a superior product and service.
First we must decide on the ways in which we are going to gather data. Decisions should me
made whether its going to be primary data or secondary data, or a mixture of both.
A breakdown of the allocated time period and expenses should be done. This will help us plan
our research process and will therefore be successful.
The implementation of the research process should be carried out.
Finally after all data gathering is done we must analyze them and gather information in order to
make the decision making process a success.
Definition of Marketing Research
The systematic design, collection, analysis and reporting of data relevant to specific marketing
situation facing an organization. (Kotler, 2006, pg108)
The following graph will give us a basic look at the structure of the marketing process.
Design Methodology
Problem Definition
Identify sample
Choose research method
Design questionnaire
Capture Data
-
Gather data
Analyze data
Report and recommendations

-
Interpret the findings

Develop strategic
recommendations
34
15.1.1 Problem Definition

Problem definition is the precise statement of the objectives of the research to be conducted. We
have to identify the problems persisting in the market at this stage. Since this is a novel product
the main problem we face is in how we are going to capture the majority of the market of the
target customers. The company should mainly focus on gathering information on what they need
to know rather than what they would like to know. There are however three main research
methods. These are,
Descriptive research
Exploratory research
Casual research
Research objectives are very important to researches as it explains the purpose of the research in
measurable terms and defines standards for what the research should accomplish. The research
objectives are as follows.
Measure the demand amongst affluent females towards Nivea Fresh.
Identify what drives people towards deodorant products.
Identify what substitutes are available in the market in relation to deodorant products.
Identify tastes and preferences of the affluent females.
Identify the preferences for deodorant products in the target market.
Optimal distribution, pricing and promotional methods.
Identify direct and indirect competitors of the company.
15.1.2 Research/Design Methodology

A research design is the determination and a statement of the general research approach or
strategy adopted for the particular project. It is the overall plan for collecting and analyzing the
information obtained to determine the solution.
35
15.1.3 Data collection method

According to the statistics the research designed a wide variety of methods of collecting
information to be considered. They were classified into two i.e. primary (surveys, observations
and experiments) and secondary sources of data. As the researchers for the Nivea Company we
used secondary data as well as primary sources in the form of questionnaires, interviews when
conducting the research. Secondary data usually consists of a vast amount of information.
Secondary data when compared to primary data is easy to access and is more economically
feasible. Since it contains a vast amount of information it should be analyzed very closely
because it may contain information of no use to the organization.
Source of the Data
Primary Data
- Surveys
- Questionnaires
- interviews
Secondary Data
-
Published data
Secondary sources such as past reports of the company, websites, supplier feedback and
magazines and newspapers published by the company as well as the competitors will be used to
gather data. Even though some data could be gathered by these sources it clear to us that its not
sufficient enough. Therefore we have decided to gather primary data through questionnaires,
surveys and interviews in order to get the job done. Please refer to appendix B for a structure of
the sample questionnaire.
36
The questionnaire will contain the following characteristics,
Questions relevant to the subject
Shortness
Understandability
Specificity
After the questionnaire is prepared with the above characteristics and finalized we must select a
group of customers to whom we are going to present the questionnaire to. When taking the Nivea
Fresh into consideration our target market is the affluent females and therefore we have
decided to present it to the ladies who are working and earn a salary of 25,000/= and over per
month and also who are under the age category of 21-50.
We are also planning to carry out a brief interview session with the customers in the outlets
where the product is sold. Samples will be handed out in order to grab the customers attention
and to give them a good understanding of the product in prior to the interview.
37
15.1.4 Time Frame

Component
Achieved
Time (in days)
Background information about Nivea
Comparative view on competitors
Literature review
Problem definition and research objectives
Interviews
Questionnaire development
Coding the questionnaire
Distribution of questionnaire
Collection of questionnaire
Calculation of data collected
Analysis of data
10
Interpretation of data
Completion of report
When considering the above table we can see that it will take 49 days which approximately is
about 1 months, to complete the research process for our new product.
38
15.1.5 Budget
Component
Cost Rs.
Background information about Nivea
4000
Comparative view on competitors
6000
Literature review
7500
Problem definition and research objectives
2500
Interviews
2000
Analysis of exploratory research
3500
Questionnaire development
5000
Coding the questionnaire
Distribution of questionnaire
4500
Collection of questionnaire
5000
Calculation of data collected
Analysis of data
Interpretation of data
Completion of report
3000
Miscellaneous expenses
4000
Total expenses
47,000
According to the above mentioned table the total cost incurred for this marketing research is
47,000 /= Rupees which is approximately around 434.50 USD given that the exchange rate of a
dollar is 108 /=.
39
15.1.6 Implementing the research

In this stage the research process should be implemented in order to achieve the above
mentioned objectives. We must try our level best not to go astray of our plan. Since our product
is a deodorant designed for the affluent female market we must approach all people who fall
under this category. We will not be taking any other category of people into consideration
because it will be a waste of time and money.
15.1.7 Data Analysis

The descriptive research carried out by the Nivea Company focuses mainly on the questionnaires
which were distributed. There were a total of 536 respondents from which the questionnaires
were analyzed and the information used for the research.
It was evident that 60% of the sample population to which the questionnaires were distributed
consists of women who like to use the deodorant spray. 30% of the questioned liked to use the
roll-ons and the rest which is 10% liked using the stick. Furthermore 60% of the questioned
considered the hygiene factor as the most important aspect as opposed to the other 40% who
considered the fragrance factor to be the most important aspect. Since the product is for the
affluent females the majority of the women interviewed had similar expectations from the
product and needed the satisfaction of prestige attached to the product.
40
16.0 Appendix A
SWOT Analysis
(http://commons.wikimedia.org/wiki/Image:SWOT_en.svg accessed on 25th June 2008)

SWOT analysis is basically the analysis of the strategic environment which gives us a
classification of the internal environmental factors which are usually the Strengths and
Weaknesses and the external environmental factors which are Opportunities and Threats. In
conducting the strategic planning process a scan of the internal and external environmental plays
an important role.
Strengths A firms strengths are its resources and capabilities that can be used as a basis for
developing competitive advantage. Some of these strengths are,
Patent rights over products
Good customer reputation
Strong brand names
Favorable access to distribution networks
41
Weaknesses The absence of certain strengths could be viewed as a weakness. Examples

include,
Lack of patent protection
Poor reputation amongst customers
Weak brand name
Lack of access to key distribution channels
Opportunities The external environmental factors that help in new opportunities for profit and
growth. Some examples of such opportunities are,
New technology introduced to the market
An unfulfilled customer need
Removing of international trade barriers
Threats Changes in the external environment that may bring threats to the firm that maybe
harmful in achieving the firms objectives. Examples of such threats are,
Shifts in consumer tastes away from the firms product
New government regulations
Emergence of substitute products
The SWOT analysis will be a powerful tool which will help us to identify the Strengths,
Weaknesses, Opportunities and Threats in developing the new product, Nivea Fresh.
42
17.0 Appendix B
Questionnaire
This questionnaire has been created to identify the customer perceptions in the cosmetic industry.
Please be kind enough to participate in this research by filling out the questionnaire.
1. What kind of deodorant do you prefer?
Spray
Roll-on
Stick
2. Do you use deodorant?

Yes
No
3. If yes whats the most preferred brand?

Dove
Fa
Oriflamme
LOreal
Olay
Rexona
Other
..
43
4. Whats the average amount of consumption of deodorant for a month?

1 month
2 months
3 months
4 and more
5. What is your expectation in purchasing a deodorant product?

24hour freshness
Fragrance
Prestige
Hygiene
Other
6. Which of the following places do you consider convenient in buying a deodorant product? (Rank
according to preference)
Keels Super
Cargills
Odel
44
7. Which criteria is the most important when you consider buying deodorant?
Price
Style
Quality of the product
Exclusivity
8. How often do you switch between brands?

Weekly
Monthly
Yearly
Other
..
You have now reached the final part of the questionnaire. Please fill in the following information. The
following questions are required for classification purposes only.
18. Monthly household income level

Below Rs. 25 000
Rs. 25 000 500 000
Rs. 50 000 - 100 000
Rs. 100 000 & Above
45
19. Age
20 - 25
25 - 30
30 - 40
40 - 50
20. Sex
Male
Female
Your contribution for this research is very much appreciated. Thank You.
46
18.0 References
http://commons.wikimedia.org/wiki/Image:SWOT_en.svg
http://www.finntrack.com/marketing_centre/kotler.htm
http://www.nivea.co.uk/history
www.esmgolf.com/onsitereviews.html
www.kzero.co.uk/blog/?p=1553
Principles of Marketing 11th edition Philip Kotler and Gary Armstrong Prentice Hall
(ISBN- 81-203-2825-6)
Marketing Management Millennium edition Philip Kotler Prentice Hall (ISBN-81-2031609-6)
Word Count
Total 7698 words
Executive Summary to Conclusion 5655 words
47

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Marketing In Practice Individual Assignment

Marketing in Practice Individual Assignment

: Mr. Marlon Gunasekara

: 7th April 2008

: 30th June 2008

Asia Pacific Institute of Information Technology

Marketing In Practice Individual Assignment

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13.0 Controls ................................................................................................................................ 32

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1.0 Executive Summary

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2.0 Background of the Company

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3.0 The Internal and External Environmental Influences

(http://www.finntrack.com/marketing_centre/kotler.htm - accessed on 22nd June 2008)

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3.1 Micro Environment

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3.2 Macro Environment

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4.0 Competitive Environment

(www.kzero.co.uk/blog/?p=1553 accessed on 26th June 2008)

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Threat of new entrants

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5.0 SWOT Analysis

(www.esmgolf.com/onsitereviews.html - accessed on 26th June 2008)

Leading brand name

The Weaknesses are,

The Opportunities are,

The Threats are,

Changes in consumer taste

Marketing In Practice Individual Assignment

6.0 Marketing Objectives

To increase sales by 30% within a period of 12 months

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7.0 Market Segmentation

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8.0 Targeting Strategy

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9.0 Positioning Strategy