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2. What are the key parts of the marketing mix? Explain how each works with the
others.
Answer: The key elements of the NIVEA Visage Young marketing mix are product, price, place
and promotion. These marketing mix key parts played vital role in the establishment of any
product in the market. The first element is the product, which has been redesigned and its
revised feature which was specifically created for the wants and preferences of the NIVEA
Visage Young fragment. The product has been redefined in order to pass a message of social
responsibility and corporate sustainability which was a significant factor for the principles of the
young women. By drastically adopting the formula of including natural elements such as sea
salts and minerals, NIVEA has established its root by creating their product that reflects its
market positioning. The product is the catalyst in the marketing strategy which unifies all other
elements in the marketing mix.
The pricing was constant with the strategies for distribution channel for promoting a majority of
skin products by the means of street retailers. The hike in price also builds an effective price and
quality relationship which differentiated these products from the further skin treatments. After this
marketing element place played a vital role in the marketing strategy. The NIVEA Company has
promoted their range of products at effective places so that customer can easily access their
products. Promotional place has significant impact on the selling of any product.
One of the significant elements of marketing mix is promotion strategy. Promotion of NIVEA
products established an awareness of products range among the customers. These marketing
mix elements have integrated significantly over the development of business. Product, price,
place and promotion are directly or indirectly interconnected with each other. One element
motivates others. These marketing mix tools enable a company to grow in the market by
analyzing the market requirement (NIVEA: The use of the Marketing Mix in Product Launch).
4. Analysis the marketing mix for NIVEA VISAGE Young. What are its strongest
points? Explain why you think this is so.
Answer:The NIVEA Company after market research has re-designed a range of product with
new formula, packaging, design and with the new name in the market. The Company has
focused on the marketing strategy by more emphasizing on the balancing view of marketing mix
tools. This balanced marketing mix given additional advantage to the company for their business
development.
As per the market research younger consumers wanted beautifying benefits rather than a
solution of skin decease. NIVEA Visage Young was introduced for skin care targeted at those
girls who do not want any medicated product. But competitors products were more focused to
the problems. This became an additional competitive advantage to the NIVEA.
The Companys pricing strategy wants to ensure initially a range of products at low prices so that
company can achieve high volume of market share and purchases. With the availability of range
of products at this low price, it encouraged customers to develop a practice of buying. This was a
strong benefit to the company.
The NIVEA Company has emphasized on the place and promotional strategies of the company.
NIVEA has placed their products at that places from where consumers can easily access their
products. It placed their products at retail outlets which is generally accessible by customers.
Along with this for enhancing the awareness of their products among the consumers, Company
has promoted their products by the efficient usage of advanced techniques for promotion. These
were the additional advantages to the company in the market for their business development
(NIVEA: The use of the Marketing Mix in Product Launch).
CASE 02
1. What was the key weakness that Skoda was able to identify?
The SWOT analysis was used by Skoda to identify its weaknesses. One of the greatest
weakness identified, which affect the success of the company is its small market share.
Skoda only holds 1.7 percent market share. Because of this, Skoda remains a small
player in the car manufacturing market. Through the SWOT analysis, management was
able to identify this weakness and also the causes of this weakness. Skodas small
market share, is attributed to negative perceptions of the consumers of the brand.
Skodas heritage as an Eastern European can manufacturer is a subject of outdated,
negative consumer perception. In the past, Eastern European cars had the image of poor
vehicle quality, design, assembly and materials. Because of this consumers do not
purchase Skoda manufactured cars. This poor image also affects Skoda owners.
Because of the negative perceptions of the general public of Skoda cars, owners lose
their trust of the product. In addition, car ownership is look upon as something that
creates an image of the owner. Car ownership is all about image.
Under Volkswagen AG, the Skoda brand was improved. The goal was to create a new
brand image and consumer perception. Skoda cars started to be seen as not low-budget
or low-quality any more. However, it has been found that Skoda still had a weal and
neutral image in the mid-market range it occupies, compared to other players in this area
The persisting weakness of Skoda is unfavorable brand image and poor perceptions of
the cars. Consumers still does not regard Skoda as quality cars. The company needs to
formulate marketing strategies that will focus on the good qualities of the cars and create
a good brand image.
What strength did Skoda use to turn its brand weakness into an opportunity?
The strengths of Skoda were identified and assessed by conducting a SWOT analysis.
The company conducted a research involving consumers in order to find out the
strengths of its products and brand. Surveys were also used. The strength of the
company and its products lie in its focus on experience rather than on sales. Meaning, the
company makes sure that there is human touch in the production and manufacture of
its cars and make sure that the consumers feel it. Because of this strength, Skoda was
listed as one of the top five manufacturers by JD Power. Skoda was also awarded by Top
Gear in 2007, as the number 1 car maker. The results of these surveys seem to testify, that
the strength of Skoda is its focus on
market shares than Skoda. This is because Skoda is mostly known as very poor vehicle quality,
design, assembly, and materials in Eastern European. That is why customers already have negative
ideas about Skoda's products. Skoda tries to change their negative image from 1999 onwards, under
Volksagon AG ownership. They changed their image and try to prove that Skoda's cars are not low
budget or low quality anymore. They want to show others that they are strong competitors as well.
However, a brand 'health check' in 2006 showed the result which Skoda does not want. The result
was Skoda still had a low image in their market comparing with other brands such as Ford, Peugeot
who already known as high quality products. All in all Skoda is no longer poor quality brand; it did not
have a high image either.
analysis is it often used as a method by which marketing departments can plan its marketing strategy.
It is easy way to understands your own mistakes and weaknesses in order to improve your
opportunities using your strengths. Using SWOT analysis would bring a huge success to any
business.
CASE 03 PDF
CASE 04
Q1 PDF
2 Suggest appropriate aims and objectives for a small, medium and large business.
Aim for a small business can "Survival", to survive in the market and look for profits.
Aim for a medium sized business would be to maximize their profits and growth to expand their
current business operations and increase market share.
Aims for Large business would be external growth,i.e taking over their competitors in the market.
Secondly it would be adding value and quality to their products, and finally providing service to
the community in some way, like giving funds to charities and opening up it's branches in
development area where development is required.