The market position of Nivea for men in UK Essay

The market position of Nivea for work force in UK - Essay Example(Euromonitor, 2010) Bargaining power of suppliers (Low) Nivea has a steep 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 fecundation products have high bargaining powers due to down(p) 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 chromatic 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 mens grooming market is 3% (2009-2014 CAGR) (Euromonitor, 2010) and the relative market share of Beiersdor f (Nivea for Men) is low. trade 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 opening move 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 assure into niche segments. Where do we want to be? (Strategy Formulation) This stage of marketing strategies planning describes the objectives and aims of Niveas marketing plans, the strategy formulation for its brands growth and identification of the business were in. Before defining the objectives of Niveas 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 mens grooming market in UK considering both External and Internal perspectives. Nivea currently holds the 2 spot in mens grooming category f or the UK market. The Nivea-for-men case-study details the challenges that Nivea for men is having in the mens 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, its sales still lag behind the flagships products of P&G and Unilever. The growth chance 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 attributes of age and shopping behavior. Target segments identified for Nivea for men are great(p) adopters, midlife adopters, senior adopters, and midlife experimenters. The various attack strategies that Nivea for men can use are products bunding, progressive promotions and pr icing. The various defence strategies that should be implemented by Beiersdorf are flanking self-denial 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 bequeath increase in the UK market.