Analyzing NIVEA's Global Marketing Strategy for USA Market Entry

This report provides a detailed analysis of NIVEA's global marketing strategy, focusing on its potential entry into the USA market. It utilizes the PESTLE framework to identify potential threats and opportunities related to political, economic, social, technological, legal, and environmental factors. The report also discusses the challenges associated with market segmentation, targeting, and positioning (STP) and suggests strategies for overcoming these issues. Furthermore, it examines various market entry strategies, recommending partnership with Amazon and direct greenfield investment. The 4Ps of the marketing mix (product, price, place, promotion) are analyzed in detail, along with effective communication approaches to support NIVEA's marketing efforts in the new market. The ultimate goal is to provide a comprehensive understanding of how NIVEA can successfully establish and grow its brand presence in the competitive USA skincare market.

GLOBAL MARKETING

Table of Contents
INTRODUCTION.....................................................................................................................................2
ASSESSMENT 2........................................................................................................................................2
TASK..........................................................................................................................................................2
Analyzing threats and opportunities by using PESTLE analysis in the context of NIVEA......................2
Discussing market segmentation, targeting and positioning problems of new market.............................4
Explaining market entry strategy with justification for market................................................................5
Detailed analysis of how 4ps of marketing mix would be utilize to support marketing of brand in new
market......................................................................................................................................................6
Explaining different communication approaches that could be used by organization to market its goods
.................................................................................................................................................................7
CONCLUSION..........................................................................................................................................9
REFERENCES........................................................................................................................................10

INTRODUCTION
Global marketing term refer to process of conducting advertising activities by marketers
in order to generate brand awareness all over the world. It includes planning, placing, producing
and promoting a venture services or goods. The current study will be based on NIVEA, which
falls under category of the top beauty and skin care brands in the world. The purpose of this
assignment it to identify opportunities and threats in market that firm wants to enter and will
discuss market STP problems of new market. Furthermore, the study will explain market entry
strategy, marketing mix elements and effective communication methods that can be used by
brand to market its items.
ASSESSMENT 2
TASK
Analyzing threats and opportunities by using PESTLE analysis in the context of NIVEA
PESTLE is one of those strategic models or frameworks that has been utilize in the
context of many companies, because it helps to determine certain factors that may emerge as
threat or chances which a brand like NIVEA may consider before entering into new market such
as USA (AKMAN, 2020).
Political factor-
Changes in any kind of political factor like political stability, trade policy, etc. may
occurs as threat which may put negative impact on NIVEA while it attempts to enter into USA
market, to sell male product ranges. For example, low extent political stability in new nation may
negatively impact on success of brand as here government strict guidelines related to personal
care product safety, which is quite important to follow by each company (Yakubu and et.al.,
2021).
Economic factor-
Just like above, fluctuation in this category of factor may directly impact on marketing
plan of NIVEA and its management practices as well. For instance, in USA, high disposable
income of local people may offer the best opportunity to brand in term of increase profitability

after selling quality products, especially produce for male, like Nivea shaving balm and other
men’s skincare items. Management may grab this chance by offering quality and appropriate
quantity products.
Social factor-
In recent time, in each and every nation including USA, male’s focus on using skin care
brands products, as it is now in trend (Michalak, Dmytryk and Chojnacka, 2020). It may provide
opportunity to gain the attention of these kinds of male, who seek to buy those items that make
their skin smooth after shaving and do not irritate when they take step out of home under sun.
NIVEA is one of those companies that may able to offer these forms of items by considering
customers’ needs and concerns.
Technology factor-
Technology advancement drive the attention of population towards usage of technologies
for online shopping in USA which is a great opportunity in the context of NIVEA. For instance,
69% of Americans prefer to shop items online (Online Shopping Statistics, 2021). Company may
offer its male skin care products via online shopping sites, which in return increase its sales even
better than last few years. In this nation, people are highly addicted for online shopping that may
provide benefits to brand in term of maximizing its customer base.
Legal factor-
Federal Cosmetic Act and Fair labelling and packaging act may possess as biggest threat
in regard to Nivea male skin care range success in USA market, because in order to sell products
in new market, company may follow these two major acts which may drive the attention of
management to make current changes within their packaging and labelling process as it may be a
costly procedure, which consumes a lot of time and efforts as well (Rosyida and et.al., 2020).
Environmental factor-
Customers and governments within each country including USA focuses on making
environment sustainable and expect brands to reduce their carbon footprint. It may occur as
growth opportunity for Nivea business because it may take initiative to conduct sustainable
business practices, which build great image in market where consumers seek to buy goods from

those organizations that well-recognized for their performance and Nivea is one of them as it
focusses on prevent nature from harmful factors.
Discussing market segmentation, targeting and positioning problems of new market
STP is defined as three step marketing concept that allow marketer to segment their target
market in term of potential customers and position their offering to each of them. Here, issue
related to each element may discuss that management may take into consideration before
entering into USA market, to sell their male skin care products.
Segmentation-
Market segmentation is procedure of segmenting new customers on the basis of
demographic, psychographic, behavioral and geographic variables. Nivea marketer may choose
specific element to target profitable buyers in new market, USA. The biggest issue that firm may
face related to this component is an algorithmic issue, defined in language of decision making
that is utilize to optimize consumer satisfaction level. It is quite complex to identify suitable
market for management as it requires specific tactic or method.
Targeting-
Market targeting is activity of choosing target market from entire one, it consists of group
of customers to whom Nivea may want to satisfy by offering range of skin care products.
Organization may target male aged 20 to 50 who seek to purchase shaving items continually,
because during this age they may faces skin related issues after shave like redness, irritation, etc.
Firm may face market targeting issue due to lack of understanding about male preferences
(Gupta, 2020).
Positioning-
With this procedure, marketer may set strong brand image in mind of target customers,
which drive their attention towards continuous purchase related to male skin care items like
shaving and facial preparations. For purpose of market positioning, management may use social
media and other promotional tools. In the context of this process firm may face issues like where
is the existing offer going to compete, which customer need is it trying to meet, and what other
item categories serve this need (Pal, Panda and Mukkamala, 2020). These are the most common

problems that each brand may face including questing what are the firm’s competencies to fight
in USA skin care market, especially related to male.
Nivea may answer each question, and consider every factor which made them capable to
successfully target male customers, aged 20 to 50 that may needs shaving products like after
shaving balm, etc. the most instead of other items. They may use demographic, behavioral and
psychographic segmentation and differentiation targeting strategies, while taking decision to
enter into USA market, where organization may obtain a lot of advantages in term of increasing
revenue, productivity, market share, and finally a customer base, that is really necessary for the
management. They may overcome each issue related to segmentation, targeting and positioning
by selecting right tactic.
Explaining market entry strategy with justification for market
In the world of business, there are many companies whether it is small or large has taken
initiatives to enter into profitable and progressive market, which is important and beneficial too.
They conduct this activity or decision into practical manner, by choosing the best entry strategy
and use in systematic manner that are many.
For example, partnering, is one of those strategies that allow a company to enter into a
market where they may tend to sell their products. Along with this, licensing, exporting,
greenfield venturing, franchising and acquisition also covers under this category, which
organizations like Nivea may choose according to their resources and requirements (What are
the four market entry strategies, 2021).
For purpose of market entry in USA, chosen organization may utilize partnership and
direct investment as greenfield tactics, which is quite beneficial for brand success within new
market in term of increasing its profits margin, productivity level and contribute to enlarge
venture even better than its rivals that has operated in cosmetic and skin care section within
United State of America and has already build strong brand image.
Marketer and management may take initiative to conduct collaborative practice with
Amazon, because majority of population in new nation may utilize this site to buy their favorite
and the neediest products online, which is quite convenient for them (Aguzzoli and et.al., 2021).
It helps to save their time and efforts as each person attempts practices to achieve the best

employment and personal career growth. With partnership strategy Nivea may easily enlarge its
customer base, which is not possible to maximize in such an easy manner, because it requires a
lot of hard work and attempts. In recent time, Amazon in world of e-commerce is one of those
brands that ranked as the most popular shopping sites or apps in the USA market (10 AMAZON
STATISTICS, 2021). More than 150.7 million peoples have used this application and accessed,
which is an amazing opportunity for Nivea to obtain. With the help of this tactic, management
may acquire new and profitable customers that contribute to increase revenue and market share
even better than last few years or more than competitors within existing and new segment.
In term of greenfield investment, organization may choose direct investment along with
above one, which bring huge benefits to its venture in term of providing overall control on
business operations in new market that decision is taken by existing stakeholder who conduct
this practice earlier. With this strategy firm may obtain many advantages for example, it may
hold control over brand image, workers, sales and production of quality male skin care products.
Detailed analysis of how 4ps of marketing mix would be utilize to support marketing of brand in
new market
Marketing mix as strategic framework may contribute to increase profitability and
productivity of brand when it may use this in the context of new market entry plan. This model
encompasses 4 elements that are;
Product-
The most important thing that Nivea and its management may do to continuously
maximize its market share globally in male skin care market is products quality. They may take
initiative to concentrate on quality and quantity of men skin care range especially after shaving
balm, which place a great value for customers (Harnvanich, 2020). It may gain the attention of
new consumers towards purchase and bring them back to repurchase the same item, because it
may provide high level of satisfaction to them. Nivea may concentrate on consider skin care
needs of customers, especially male, which enable management to produce each item
accordingly. By offering quality products to male customers in USA market, firm may retain
them forever.
Price-

Another element of marketing mix concept that company may use to support its
marketing in new market such as USA is price. In term of choosing and setting pricing strategy
like price skimming, organization may gain varied advantages. It helps to achieve strategic goals
and objectives of venture in effective manner and lead to increase market share, which is tough
task to conduct and obtain benefits through it. Organization may take good care of its existing
and new customers that they are obtaining more value more than what each customer paying.
When firm take decision to enter into new market, management may take decision to offer after
shaving and other items at higher prices because of new packaging and formula, which made
their goods more valuable and beneficial to users.
Place-
Along with two, organization may use this component in precise manner in term of
selling its male’s skin care products online via making partnership with Amazon or opening own
store in USA market, where rivalry between existing skin care brands were high. The great thing
about online selling is that it allows firm to reach at international customers easily, without
conducting much attempts to attract them. It provides opportunity to each male shopper to buy
Nivea shaving balm and facial item online that means marketers themselves may to take care of
their business promotional activities. Furthermore, when company take initiative to open own
store, it may enable staff’s member to directly communicate with male customers and allow to
get more information about their skin concerns that make selling easy for them.
Each element support marketing of Nivea and its products for men in new market. It may
contribute when management take appropriate action related to product, price and place, because
it is important and useful too.
Explaining different communication approaches that could be used by organization to market its
goods
Product marketing is the most difficulty practice that a marketer conduct, but important
as well because it help to generate revenue, gain customers in new market and help to gain
competitive edge. In corporate world, there are different forms of communication approaches
available that marketer of Nivea may utilize to communicate target consumers and promote
quality male skin care range in market.

Social media channels-
With this method, marketer may interact with new customer in new market, which is
essential for them. Instagram, Facebook and Twitter are the most common, but beneficial
promotional as well as communication methods that firm may take into consideration and use in
term of creating venture account. It considered as the most effective way to communicate with
each customers and share information about products that firm seek to offer to them, according
to need and requirements (Gruss, Kim and Abrahams, 2020). Nivea may use this because in
recent time social media usage for communication and marketing purpose is quite common as it
makes things easy and effortless, which is not possible to fulfil by using traditional marketing
approaches such as TV, newspaper, magazines etc. it can be said that social media channels may
create a whole new and innovative way to communicate with shoppers and promote ventures in
totally new market.
Website creation-
Another way to communicate with new buyers and market male skin care items in USA
that Nivea may adopt and use it its own website, where people may easily reach and get all
information about business and item fully. It can be said that consumers rely on it because this
method give them useful data and permit them take better decision regarding product purchase as
it may help to take judgment and comparison. Without creating own official website, it is
impossible for brand to attract people and increase market share. With this method management
may show their physical presence in new world of cosmetic, where they enter just to satisfy male
customers.
Email-
This approach is also useful as it allows marketer to send all the important information
about offering to customers directly through mail that is simple way to communicate with them.
It also contribute to advertise products, which made people capable to take decision after getting
satisfaction from data.

CONCLUSION
From above analysis, it has been summarized that organization has grabbed key market
or business growth opportunities by developing effective plans, methods and using these in
appropriate manner. Company by choosing the most suitable entry mode has reached at global
level and successfully entered into new market, where its management has social media and
other communication as well as marketing methods. Furthermore, by using price skimming
pricing strategy firm has increased its revenue and market share by selling male products.

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