Nivea for Men: Marketing Planning - Assignment Example

NIVEA FOR MEN Nivea for Men AC1 Reviewing changing perspectives (viewpoints) in marketing planning. Marketers previously designed their plan on the assumption of zero and infinite environmental effects. Following the growing recognition of the infinite resources besides higher environmental costs, there is an urgent need for planners to re-evaluate their practices and theory. Policies attached to product development, distribution, pricing and branding need to be altered. The recent financial crisis added another challenge since consumers tend to adjust lifestyles towards lower levels of spending and income (Philip, 2011). The Companies must balance carefully their developmental goals with the sustainability pursuant. AC1.2 Evaluate the organization’s capability for planning its future marketing activity The firm can plan for future marketing activity following its previous success. The Company seems to understand its customers and the market well as it has been able to respond adequately meeting the Consumer’s requirement by producing a non-alcoholic skin care product that do not irritate the skin. In addition, the firm has also help protect the face after shaving following the revelation that men wanted required products that calmed and soothed irritated skin resulting from shaving. AC1.3 Examine techniques for organizational auditing and how to analyze external factors that affect marketing planning. The techniques for verification will be SWOT analysis, PEST analysis, and Porter’s Five Force analysis. The SWOT analysis will give both internal and external factors that affect the firm’s performance. The threats and opportunity (external) noted strengths and weakness (internal) shows the current position of the company based on its marketing strategy and dictates possible changes. About PEST analysis, it purely identifies the external factors such as political, economic, social and technological factors affecting the firm. Through PEST analysis, the company determines its position and readjusts accordingly. Finally, Porters Five Forces Analysis (Bargaining Power of Buyers, Bargaining Power of Suppliers, Competition among the Existing Firms, Threats of New Entrants and Threats of Substitute Products and Services) help the firm design a marketing plan that help compete favorably in the market. To the SWOT analysis particularly, Threats and Opportunities will reveal the external factors that affect the company. In this context, the Nivea firm has many opportunities for more men and women requires the non-alcoholic skincare products. Threats noted are the intensive completion from the competitors’ products. In snapshot, the firm has more opportunities than threats and hence can launch its products. AC1.4 An organizational audit and analysis of external factors that affect marketing planning in a given situation Based on the increase in market for male skin care products threats accompanied the firm. Consumers become knowledgeable and price conscious and hence expect sales promotions accompanied by offers and discounts. The risk of competitors entering the business hence the firm should differentiate its products to ensure the positive return on investment based on sales and profits despite an increasing competitive market. However, the analysis of opportunities for the firm overrides these threats as the market is growing, and NIVEA FOR MEN skincare product sales besides need for increased market share. The Company should take the advantage of changing social attitudes as men needs more products by being open and indeed less resistant to facial skincare goods. Task 2: Understand the main barriers to marketing AC2.1 Assess the main barriers to marketing planning Change Management Change managing is a major stumbling towards a successful marketing strategy employed by firms. Implementation of anything new poses a significant threat to marketers. Strategies designed to cross-channel digital strategy customer experience qualifies to be an organizational change. Much consultation must be proactively be done through consultant firms on how to implement and train the marketers based on their new roles (McDonald, 1989). In managing change, some skills do remain intact but a greater number are altered by the proposed changes. Ethical issues Firms must have effective marketing policies to govern their pricing, research, advertising and competitive strategies. These marketing ethical issues affect the marketing mix based on associated issues with pricing, promotion, products and placement. These ethical issues need to satisfy and suit the needs of the customers, suppliers, and business partners. Unethical behaviors such as selective advertising, deceptive marketing and price wars negatively depicts the brand image and the company’s relationships. Recent trends in marketing points out that consumers like ethical companies since ethical itself is a selling point as well as a component of a corporate image. Marketers must remain ethical in their bid to attract more customers and to penetrate new markets (Bateman, Fraedrich and Iyer, 2001). Firms must remain socially responsible by avoiding the adverse perspective of marketing where consumers are rather being exploited than being informed of new products, qualities, prices as well as the side effects and the usability of the commodities. The rules outlined by the government as business laws to govern and guide the marketers in order to remain ethical in their practices are restricted to marketing. However, marketers would always want to find something new so as to be a competitive advantage. In order to remain in frontline, marketers must break these rules. Resources Personnel skills and knowledge about marketing are critical barriers to effective marketing. Inability of firms’ to acquire adequate skilled marketers or appropriate budget (financial support). Companies are challenged since it is hard to obtain digital strategists and marketing analysts. Marketer must employ data-driven decisions in order rationally and efficiently compete. Instinct-based marketing is the principle for innovation, but it poses a challenge as it has to be tested with analytics to ascertain the best solution. Digital strategist that drive effective marketing are hard to find. There is inadequacy of brains that can drive both technical and marketing issues. For those organizations moving out of silo-channel, marketing must obtain skilled digital strategists. A digital strategist is required to integrate both technical and marketing strategies to come up with the best portfolio that balances across the channel in order to actually meet the target audience. In addition, the digital strategists are beneficial in determining how the technical implementation and Human Resource skills required to achieve the integrated portfolio of both marketing and technology strategies. The digital strategist also helps in designing the analytic methods and techniques rational enough to prove the success of both instinct-driven and data-driven marketing strategy. On the other hand, financial resources constraints (restricted budgets) also a barrier to effective marketing. The inability of marketers to start from the perspective of corporate objective when faced with budget restriction is a major setback to effective marketing. The corporate goal outlines whatever the marketing objectives are and how they will achieve the corporate objective. The difficulty crops in where marketers must proactively show how the intended digital strategy adopted will impact the marketing objectives. The marketers must display the marketing helps the executive’ bottom line and build a business case analysis. AC2.2 Examine how organizations may overcome barriers to marketing planning. Firms must uphold ethical practices in their marketing planning. More consumers prefer ethical companies and hence customer’s retention. About barriers to change management, much consultation must be proactively undertaken by consultant firms on how to implement and train the marketers based on their new roles. About the resource constraints, companies must acquire skilled digital strategist and avail enough financial backup needed for marketing planning. The organizational cultures also need to be a collaborative design in order to make each stakeholder feel part of the company hence putting all efforts towards the achievement of marketing objectives outlined AC3.1 Marketing plan for a product or a service. The marketing research will be carried via the SWOT and PEST analysis to uncover the firm’s performance. Market analysis will aid to find out the ethical requirement by the consumers and based on the consumer research findings Beiersdorf skin Research Center (650 study). The marketing strategy to be applied in launching the new product will entail, to improve the formula of the products and to extend the NIVEA FOR WOMEN product range based on the new re-launch and high quality products (20+) products. The product to be re-launch will face cleansing, shaving, aftershave and face care product. The product will be marketed based on particular segment through target positioning. The click-and-mortar strategy will be used to help attract and maintain new customers. In addition, electronic customer relationship management will also help keep in touch with the customers and thus benefit from the incorporation of the customers feedback resulting from the re-launch in order to make the product appealing to both potential and loyal customers. Evaluation will be carried based on the analysis of the market performance based on SWOT analysis to help the firm uncover its position within the market. AC3.2 Explain why marketing planning is essential in the strategic planning process for an organization. Marketing plan is the blueprint for the success of the firm. The firms’ strategic planning would be in vain in case of ineffective marketing plan. Firms may produce quality goods but without proper marketing plan, the inventory will accumulate without sales. Increasing customer’s relationships with business and the promotional campaigns for firm’s image determines whether a company will succeed. Companies that lack effective marketing planning are outstripped in the ever changing competitive environment hence loses. Growth and expansion of companies solely lies with the marketers since firm’s market share, performance, and power all stem from marketing planning. A success-oriented company like Nivea must, therefore, keep pace with the competitors actions through ensuring up to date marketing plan in order to achieve its strategic planning goals. AC3.3 Examine techniques for new product development for Nivea. The Company starts by identifying the gaps in the market through marketing research and sets adequate object to make. The Company carries SWOT analysis, PEST and Porter Five Forces to analyze the market. The Company thus undertakes ethical marketing research and incorporates consumer ethical requirements. The Company develops a new product development through the two strategies; to improve the formulas of the product and to extend the NIVEA FOR MEN product range. The Company thus uses a new re-launch formulas or new high-quality products for producing 20+ products (Face Cleansing, Shaving, after shave and Face Care) AC3.4 Justify recommendations for pricing policy, distribution and communication mix. Predatory pricing policies is active as consumers always yawns for low-priced commodity attached to quality. Communication mix is critical promotional campaigns. With the world’s digitalization, firms should massively use internet and social and mass media to appeal to their customers. The distribution mix for the products should entail a variety of outputs where customers can choose from based on particular niche or segment. Firms need to tailor their products based on positioning targeting so as to serve individual noted taste and preference. AC3.5 Explain how factors affecting the efficient implementation of the marketing plan have been taken into account. The Company firm has engaged in thorough marketing research to uncover the barriers and design response strategies for ensuring ethical marketing by producing products that are non-alcoholic and hence help protect the body from soothing and irritation after saving. The firm also managers change through the proactive incorporation of each stakeholder’s ideas and efforts making stakeholders feel part of the Company and hence work towards the achievement of one goal. Both behavioral and organizational culture have embraced collaborative design that is thus moving away from traditional command to non-command leadership. Task 4: Understand ethical issues in marketing AC4.1 Explain how ethical issues influence marketing planning. Ethical challenges in marketing arise from the disagreement and conflicts. Each stakeholder in a marketing plan transactions presents a set of expectations regarding how the firm’s relationships will exist as well as how the operations will be conducted. Each facet of marketing is attached to ethical danger points as illustrated as affects the whole process of marketing planning. Market Research Marketing planning is based on the proactive and efficient market research. Some ethical problems in market research are the invasion of privacy and stereotyping. Stereotyping occurs due the fact that any analysis of real populations requires to make approximations and categorize individuals into cohorts. Inappropriate market research leads to stereotyping resulting from a variety of ethically undesirable outcomes. Market Audience Selective marketing is employed to discourage demand from the undesirable market sectors and disenfranchise them altogether. Unethical market exclusions such as past industry attitudes to the gay, plus-size markets and ethnic minority. These factors affect marketing planning as the marketers must proactively consider these ethical issues before finally design a marketing plan. In addition, ethical issues associate to vulnerable audiences within emerging markets particularly in the developing nations since the public are unaware of the skilled marketing ploys. Ethical in Advertising and Promotion Marketing planning must take into consideration the need to uphold ethical standards with respect to the proposed approach to promotion and advertisement. Marketing plan in the past adversely lied during the advising and development as Tobacco was advertised and promoted to be a health promoting product. Currently, due to strict restrictive ethical standards, marketer planning development must weed out such uncalled for exploitative promotion and tell truth about a particular products to be launched or re-launched as these unethical marketing strategies offends against morality as well as laws guiding business practices. Despite the fact that laws permit puffery, the difference between fraud and mere puffery is a slippery slope. Sexual innuendo is a mainstay of promotional and advertisement contents yet is described as a form of sexual harassment. In addition, violence is an issue with respect to an notice involving children and adverts that are likely to be watched by children and hence marketing planning must take these unethical barriers to advertising into consideration. Certain commodities advertising may offend some individual while simultaneously interesting others. For instance, feminine hygiene products and hemorrhoid as well as constipation medication adverts fall in this category. The marketers of condoms have become acceptable in the interest of AIDS-prevention while others view this as a source to promote prostitution. Via the negative adverting techniques, the advertiser outlines the cons of a competitor commodities rather than the pros of their products. Marketing planning is thus required to uphold the ethical standards that are conventionally accepted so as not to hurt the image of a particular firm as consumers prefer ethical companies. Deceptive Advertising and Ethics Deceptive marketing is not specific to particular target market and thus go unnoticed by the public. Deceptive marketing planning hurts the consumers, and it is unethical. Deceptive marketing can be presented to consumers in several ways. The application of humor has majorly been applied to advance deceptive marketing. Humor offers an escape from some types of human constraint hence advertisers thrive to exploit the consumers through taking advantage of possibility of escape through deceptively designing marketing plans the advance deceptive adverting commodities the potentially alleviate the noted human constraint through humorous moments. Anti-competitive practices Marketing planning must consider anti-competitive marketing practices. Bait and Switch is a fraud in which customer are baited by through advertising for a commodity at low prices and the consumer later discover that marketed commodity is not available which makes them Switched to a costlier commodity. Planned obsolescence policy help designs a commodity with a restricted useful life hence it becomes unfashionable, or malfunctions within a while leaving the consumer with no option but to purchase again. Pricing Ethics Bid rigging strategy is a fraudulent act of promising a commercial contract to a particular firm prior to the bidding and unethically allowing other disadvantaged firms to present their bids for the sake of appearance. In addition to bid rigging, predatory pricing, a strategy in which a product is sold at very low price in order to outstripped competitors out of the market besides creating barriers to entry for potential firms viewed as competitors. These practices are however, unethical practices and hence marketing planners must always be proactive and strictly keep pace with the competitors marketing planning strategies at the same considering being ethical as research has attached more consumers to ethical firms. AC4.2 Analyze how organizations (Nivea and others) respond to ethical issues including a few examples Major Companies fear the reputation damage of their brand image arising from the press revelation of their hidden unethical marketing planning practices. Companies have thus utilized ethics as a marketing tactic (Luther, 2011). Marketers are quick to perceive the market’s preference for ethical firms that often move faster and explore the advantage of the shift to consumer taste and preference. Such a strategy culminates into the propagation of ethics itself as a selling point as well as a component of a corporate image. Marketing ethics outlines the guidelines for good marketing practices. Firms thrive to design marketing plans that advance ethical marketing by recognizing that all marketing decisions and efforts are required to meet and suit customers’ needs and those of business partners. The mindset of firms is that their concern is for population and environment where they operate. Firms marketing planning response to ethical issues is that they must remain socially responsible to stakeholders, places and things within their spheres of influence. AC4.3 Analyze examples of consumer ethics and the effect it has on marketing planning. Consumers are attached to ethical companies. Firms that are ethical based on pricing, quantities, and information about positive and side effects of product attract more customers. Marketing planners must take into consideration of these ethical issues in order to meet the ethical customers’ requirements. A consumer expects the firm to engage proactively in goods that are legally accepted and sell the right quality and quantity. In addition, consumers expect the firm to promote non-discriminative employment accompanied by better treatment and working conditions for employees. Some consumers value environment and thus buy from such companies that produce environmental friendly commodities. Ethical marketers must conduct research on ethical requirements of consumers and incorporate and leverage the capital of their ethical decisions. Ethical marketing planning culminates to a balance between company’s self-interest and social responsibility (Auger, Devinney and Louviere, 2003). Reference Philip Kotler (2011) Reinventing Marketing to Manage the Environmental Imperative. Journal of Marketing: July 2011, Vol. 75, No. 4, pp. 132-135. Bateman C. Fraedrich J. and Iyer R. (2001). Journal of Business Ethics 36: 119-140. Auger P. Devinney T. M. and Louviere J. J. (2003). Journal of Business Ethics 42(3): 281-304. Shaw D. and Shiu E. (2003). European Journal of Marketing 37(10): 1485-1518. Brinkmann J. (2004). 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