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
- Beiersdorf's NIVEA
- History
- Product
- South Korean Market
- Business Environment
- PESTEL Analysis
- Hofstede's Dimensions
- Culture Map
- Business Particularities
- Target Group
- Strategic Goals
- Marketing Plan
- Marketing Mix (4Ps)
- Long-term scope
Objectives and Key Themes
This paper examines the international expansion of Beiersdorf's NIVEA moisturising cream into the South Korean market. It delves into the brand's history, product portfolio, and the unique challenges and opportunities presented by the South Korean business environment. The paper also develops a comprehensive marketing plan for NIVEA in South Korea, considering factors like the target audience, strategic goals, and the application of the marketing mix.
- The historical development and global success of Beiersdorf and its flagship brand NIVEA.
- The analysis of the South Korean market environment through PESTEL analysis, Hofstede's cultural dimensions, and Erin Meyer's Culture Map.
- Defining the target audience for NIVEA in South Korea and understanding their specific needs and preferences.
- Developing a comprehensive marketing plan that incorporates the marketing mix (4Ps) and outlines long-term strategic goals for the brand in the South Korean market.
- Addressing recent criticism regarding the use of microplastics and questionable ingredients in NIVEA products and Beiersdorf's commitment to sustainability.
Chapter Summaries
- Chapter 1: Beiersdorf's NIVEA - Introduces the brand's history, tracing its origins from the founding of the Beiersdorf pharmacy in 1880 to its current global presence. This section explores the company's early success with medical band aids, the pivotal role of Oskar Troplowitz in expanding the product portfolio and improving employee conditions, and the challenges faced during the Nazi era.
- Chapter 1.1: History - Provides a detailed account of the company's historical development, highlighting key figures, milestones, and challenges faced by Beiersdorf throughout its existence. The chapter focuses on the company's growth from a small pharmacy to a global enterprise, including its expansion into international markets and the impact of political events on its operations.
- Chapter 1.2: Product - Focuses on the core product of the NIVEA brand - the moisturizing cream. It discusses the origins of the product, the evolution of its packaging design, and its role in the company's international success. The chapter also touches on the brand's broader product catalogue and the recent criticism it has faced regarding ingredient safety and environmental impact.
- Chapter 2: South Korean Market - Explores the specific business environment in South Korea, analyzing key factors that impact market entry and success. This section covers the PESTEL analysis, Hofstede's dimensions, and Erin Meyer's Culture Map, providing insights into the cultural, political, economic, and social factors relevant to NIVEA's expansion into this market.
- Chapter 2.1: Business Environment - Delves into the intricate details of the South Korean business environment, presenting a comprehensive analysis of PESTEL factors, cultural dimensions, and specific business practices prevalent in the market. This chapter provides valuable context for understanding the challenges and opportunities facing NIVEA in South Korea.
- Chapter 2.2: Target Group - Identifies the specific target audience for NIVEA in South Korea, outlining their demographics, psychographics, and specific needs and preferences. This chapter aims to provide a clear understanding of the consumer group that NIVEA needs to reach in order to achieve success.
- Chapter 2.3: Strategic Goals - Defines the key strategic objectives for NIVEA in the South Korean market, taking into account the unique characteristics of the target audience and the competitive landscape. This chapter outlines the brand's long-term ambitions and the specific strategies it will employ to achieve them.
- Chapter 3: Marketing Plan - Presents a detailed marketing plan for NIVEA in South Korea, outlining the strategies and tactics to be employed across the marketing mix (4Ps). This chapter covers aspects like product adaptation, pricing, distribution, and promotional activities, all aimed at achieving the brand's strategic goals in the South Korean market.
- Chapter 3.1: Marketing Mix (4Ps) - Explores the specific application of the marketing mix elements (Product, Price, Place, and Promotion) in the South Korean context. This chapter details how NIVEA will adapt its product offerings, pricing strategies, distribution channels, and promotional campaigns to effectively reach the target audience in the South Korean market.
- Chapter 3.2: Long-term scope - Addresses the long-term vision and strategic goals of NIVEA's marketing plan in South Korea. This chapter discusses the brand's ambitions for sustainable growth, brand loyalty, and market leadership in the South Korean cosmetic industry.
Keywords
This work focuses on international business expansion, market analysis, cultural dimensions, marketing strategy, and the cosmetics industry. Key terms include Beiersdorf, NIVEA, South Korea, PESTEL analysis, Hofstede's dimensions, Erin Meyer's Culture Map, target audience, marketing mix (4Ps), brand positioning, and sustainability.
- 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
