NIVEA is now a global umbrella brand with several products for cleaning and skincare of face and body. In this paper, NIVEA's history as well as the South Korean market and a possible marketing plan are examined closely. Due to its wide product portfolio the following paper is focused on the international expansion of its main product; the plain moisturising cream for face and body, the country in question is South Korea.
Beiersdorf, founded in 1880 in Hamburg, Germany, started as a pharmacy and laboratory by Paul C. Beiersdorf. In 1890, pharmacist Oskar Troplowitz took over, specializing in medical band aids. Under Troplowitz's leadership, the company expanded rapidly, prioritizing employee welfare with shortened working hours, paid vacations, childcare, free lunches, and a pension fund. Troplowitz, along with his chemists, developed various products, laying the foundation for iconic brands under Beiersdorf.
Beyond innovative products, Troplowitz focused on global expansion, leading to international distribution by 1914. However, in 1933, the rise of National Socialists threatened Beiersdorf due to its Jewish connections. During World War II, international subsidiaries were confiscated, but Beiersdorf regained global trademark rights by 1997. By the late 1990s, the company had 74 international subsidiaries, generating nearly 70% of its turnover outside Germany.
Today, Beiersdorf is a leading listed company, part of the German Share Index "DAX." NIVEA, a Beiersdorf brand, is managed by an eight-member executive board, with Stefan De Loecker as Chairman. Beiersdorf's journey reflects resilience, innovation, and global success in the skincare and healthcare industry.
Table of Contents
1. Beiersdorf’s NIVEA
1.1 History
1.2 Product
2. South Korean Market
2.1 Business Environment
2.1.1 PESTEL Analysis
2.1.2 Hofstede’s Dimensions
2.1.3 Culture Map
2.1.4 Business Particularities
2.2 Target Group
2.3 Strategic Goals
3. Marketing Plan
3.1 Marketing Mix (4Ps)
3.2 Long-term scope
Research Objectives and Core Themes
This paper examines the strategic market entry of the classic NIVEA moisturizing cream into the South Korean market. It aims to develop a comprehensive marketing plan that considers cultural idiosyncrasies, consumer behavior, and the competitive landscape of the local beauty industry to ensure sustainable brand growth.
- Analysis of the South Korean business environment using PESTEL and cultural frameworks.
- Identification of a specific target audience within the South Korean market.
- Strategic formulation of the marketing mix (4Ps) tailored for localized adaptation.
- Evaluation of long-term scope and sustainable brand establishment in a new market.
Excerpt from the Book
1.2 Product
Beiersdorf’s NIVEA cream, a moisturising skincare was first sold in 1911 in a small, flat, and yellow metal can. As the strongest brand from Beiersdorf, NIVEA was one of the driving engines for the international success of the enterprise. The brand name NIVEA was derived from the Latin word for snow: “nix, nivis” due to the products white colour. The appearance of the flat metal can, NIVEA cream is still typically sold in, was changed to dark blue with white text on it in 1925, six years after Troplowitz death. With minor adaptions over the time the simple design is still recognizable today, as one can perceive in image two. The NIVEA packaging is a great example for a colour trademark. This means, that not only the brand name and logo is protected but also its unique colour: Pantone 280 C.
Summary of Chapters
1. Beiersdorf’s NIVEA: Provides an overview of the company history, its founding as a pharmacy, and the development of the NIVEA brand into a global success story.
2. South Korean Market: Analyzes the political, economic, social, technological, environmental, and legal factors, alongside deep cultural comparisons between Germany and South Korea.
3. Marketing Plan: Outlines the strategic marketing mix for the market entry, focusing on localized product adaptation, promotional strategies, distribution channels, and penetration pricing.
Keywords
Beiersdorf, NIVEA, South Korea, Market Entry, Marketing Mix, PESTEL Analysis, Hofstede’s Dimensions, Cultural Differences, K-Beauty, Consumer Behavior, Strategic Goals, Sustainability, Product Adaptation, Brand Management, Penetration Pricing.
Frequently Asked Questions
What is the core focus of this research?
The work focuses on the strategic market entry of the traditional NIVEA moisturizer into the South Korean market.
Which thematic fields are central to the study?
The study centers on international business strategy, cross-cultural management, and marketing mix optimization within the context of the K-Beauty industry.
What is the primary research goal?
The goal is to develop a functional marketing guideline for NIVEA to successfully enter and establish itself within the competitive South Korean cosmetic market.
Which scientific methods are employed?
The author utilizes PESTEL analysis, Hofstede’s cultural dimensions, and Erin Meyer’s Culture Map to evaluate market conditions and cultural distance.
What topics are covered in the main body?
The main body covers company history, macro-environmental analysis, cultural comparisons, target group definition, and detailed operational strategies for the 4Ps (Product, Price, Place, Promotion).
Which keywords best describe this publication?
Key terms include South Korea, Market Entry, NIVEA, Marketing Mix, Cross-cultural Management, and Consumer Behavior.
How does the author address the cultural barrier regarding the 'loss of face'?
The author recommends that communication, feedback, and business negotiation styles must be indirect and polite to avoid confrontation and respect local cultural norms.
Why is penetration pricing suggested for the Korean market?
Since NIVEA is a new brand in South Korea despite its global success, penetration pricing is recommended to stimulate initial trial and rapidly gain market share.
What role does the 'Country of Origin Effect' play?
The author emphasizes that emphasizing the German origin of NIVEA provides a competitive advantage, as South Korean consumers generally hold high perceptions of German quality.
- Quote paper
- Valentina Weiß (Author), 2021, International Expansion Strategy of NIVEA towards the South Korean Market, Munich, GRIN Verlag, https://www.grin.com/document/1003875
