Principles of Marketing: Nivea's TOWS Analysis and Strategies

This report provides a comprehensive marketing analysis of Nivea, a prominent player in the skincare industry. It begins by examining Nivea's macro environment, including political, economic, social, and technological factors influencing its operations in various countries. The report then delves into Nivea's micro environment, assessing its strengths, weaknesses, opportunities, and threats. A detailed TOWS analysis is presented, evaluating how Nivea can leverage its strengths and opportunities to mitigate weaknesses and threats. The report also explores critical success factors for Nivea, such as technological innovation and global presence. Finally, the report concludes with a list of references, providing context for the analysis. This analysis highlights Nivea's strategic positioning and market dynamics.

Running head: PRINCIPLES OF MARKETING
Principles of marketing
Name of the student
Name of the university
Author note

1PRINCIPLES OF MARKETING
Table of Contents
Macro environment of Nivea...........................................................................................................2
Micro environment of Nivea...........................................................................................................3
TOWS analysis................................................................................................................................4
Critical success factors....................................................................................................................7
Reference.........................................................................................................................................8

2PRINCIPLES OF MARKETING
Macro environment of Nivea
Political environment  They are having their operations in different countries and thus,
difference in government regulations and political system are
one of the key determining factors for them (Amore and
Bennedsen 2013).
 Nivea produces skin care products. In the recent time,
regulations are becoming stricter due to negative impacts of the
skin care products.
 Barriers in international trade between countries will be
challenging for them in their business operation.
Economical
environment
 Emergence of the global economic crisis causing reduction in the
purchasing power of the customers. This will have negative
implications on their business operation (Singer 2013).
 Presence of huge number of competitors in the global market is
reducing the profitability ratio.
 Business opportunity is more for them in the developing
countries due to the increase in their national economy.
Social environment  Customers are becoming more beauty conscious, which is
increasing the demand for skin care products.
 In the recent time, skin care products are much extensive with
having varied and diverse products (Biesterbos et al. 2013).
 However, there are some sorts of backlash regarding the
consumerism of the aesthetic aspect of human beings.

3PRINCIPLES OF MARKETING
Technological
environment
 Technological development is required in producing innovative
products, which will have more utility to the customers.
 Increased rate of competition is leading to the importance of
technological development to stay ahead in the competition.
 Huge cost is associated for investment in research and
development (Dokukina 2014).
Micro environment of Nivea
Strengths  Positive brand value of Nivea in the global market is helping
them to push their new products in the market.
 Having manufacturing facilities in different countries is helping
them in reducing the cost of export and import.
 Diverse product portfolio ranging from skin lotion to deodorants
helps them in targeting diverse range of customers (Parteka and
Tamberi 2013).
Weaknesses  Some products of them are late movers in the market, which is
causing less market opportunities for them.
 Sales and promotion of them are not specifically targeted to a
certain sector of customers.
 Catering to upper layer of the market compared to their
competitors. Thus, limiting their business and market
potentiality.
Opportunities  Market for skin care products is rapidly increasing. In the recent

4PRINCIPLES OF MARKETING
time, market for the skin care products for male is increasing
much quicker.
 Offering more varied products will help Nivea to cater to more
number of customers.
 There are still various untapped markets remained for them.
Entering in these markets will help them to enhance their market
share along with their brand value and exposure.
Threats  Increasing of social backlash in regards to the beauty products.
 Entry of local competitors in different markets will reduce the
profitability of Nivea further (Mayer, Melitz and Ottaviano
2014).
 Increase in the cost of production will increase the cost of the
end products, which will further reduce the market potentiality of
them.
TOWS analysis
Internal factors
External factors
Strengths Weaknesses
Opportunities  Diversification of the
products.
 Pushing new products
in new markets.
 Investment in research and
development in bringing
innovative products being

5PRINCIPLES OF MARKETING
early entrants.
 Product diversification
should also target the mass
market.
Threats  Having more local
manufacturing
facilities will regulate
the cost of production.
 Leveraging the global
brand value in cutting
off the local
competition.
 Catering to more mass
market to compete with
the local competitors.
 Increase in the sales
volume will reduce the
average cost of
production.
Strength/opportunities  Marketing the diverse products of Nivea according to the
market requirement in different countries will help them to
target the customers effectively.
 The positive brand value of Nivea should be used in further
diversify their existing product portfolio in order to push
new products according to the requirement in the new
market. Thus will ensure that Nivea will be able to
effectively enter and cater to a new market.
Strength/Threat  Nivea is already having number of manufacturing facilities
in different countries. This will further help them in

6PRINCIPLES OF MARKETING
reducing the cost of production. For instance, having
manufacturing facilities in the developing countries will
reduce the cost of production due to less cost of resources.
 The global brad value of Nivea will help them in attracting
more customers over the local brands. This is due to the
reason that, in the skin care sector, brand preferences of the
customers are high.
Weakness/Threat  Catering to the mass market with affordable products will
help to fend off the local competition.
 It will increase the sales volume, which will in turn reduce
the cost of production.
Weakness/opportunities  More investment in research and development will help in
introducing more innovative products in the market, which
will increase the market opportunities.
 Diversification of the products should also be done in terms
of the pricing in order to target the mass market.