RMM assignment

Nivea Case study

Q1: The management of Nivea in India is looking to increase its market share. In the Indian context
define the management decision problem. Comment on whether the problem is structured or
unstructured?
A1: The key management decision problems that Nivea may have been facing are as follows:

As India is a diversified in its population as different culture and sub-culture is present

understanding the complex nature of buyers is a major problem.
Due to India having diversity in their culture it would be tough for Nivea to only run one
advertisement or promotion for all region and religion.
These are all unstructured problems for Nivea

Q2: Do a situation audit assuming the current scenario (you can make assumptions and state them) and
define the research problem for Nivea India?
A2: Situation Audit

Nivea is unsuccessful in building the same image as it had in rest of the world in India.
Customers are not buying the Neiva products.
The economic condition of customers i.e. their purchasing power.is not high.
Tough competition from domestic producer.

Research Problem

Understanding the complex behavior of Indian consumer.

Q3: Define four to five research Objectives and frame Research Questions and Hypothesis for the same
(mentions assumptions if required)?
A3: Research Objective

To assess the influence of Indian consumer spending power over personal care products.
To increase market share of Nivea in Indian market.
To determine how advertising affects the buying behavior.
To find out which segment to target first and understand the different segment of
consumer and their needs.

Research Question

How much an Indian consumer spends on personal care product on an average?

Does huge investment has impact on increasing sales?

What new innovations should be brought in personal care range of Nivea so that Nivea
can increase its market share?
Which personal care products of Nivea are sold most in the market?
How brand loyal are Indian Consumer?
What kind of skin care product do Indian customer use?

Hypothesis

If rate of advertisement of Nivea product is increased then by how much percentage will
it increase Nivea market share.
If new innovation are brought in personal care what effect will it have on customers
If promotional discounts are given how much will it increase Nivea customer base.
If prices are decreased by 2% how much effect will it have on consumers?

Q4: Identify dependent variables and independent variables and control variables
used in each of your hypothesis?
A4:
Dependent variables

Market share
Sales
Customer base

Independent variables

Advertisement
Innovation

Control variables

Price
Cost
Discounts