...Integrated Case study AN ANALYSIS OF THE CASE: BEIERSDORF AG: EXPANDING NIVEA’S GLOBAL REACH Sasipim Viriyajaroen STUDENT ID: C0346RCRC1013 Submitted in fulfilment of the requirements of the Masters’ degree to the London School of Commerce, for the degree of Master in Business Administration (MBA) Supervisor: Dr K V Shenai September 2014 ICS: BEIERSDORF AG: EXPANDING NIVEA’S GLOBAL REACH Contents page Acknowledgements Executive Summary Chapter 1: Introduction 1 Chapter 2: Case brief 4 Chapter 3: Problem statement and Analysis 9 3.1 Statement of the problems in the case 3.2 Relevant literature review 3.3 Proposed plan of analysis 3.4 Sources of data 3.5 Ethical issues Chapter 4: Analysis and Findings 19 4.1 An assessment of the current position 4.2 Alternative future scenarios 4.3 Resource Constraint Evaluation Chapter 5: Proposed solution to Problems 32 5.1 Integrated discussion of the analysis 5.2 Recommendations and proposed plan of action 5.3 Critical assumptions to the analysis 5.4 Implications for stakeholders 5.5 Limitations of the study, scope for further research Chapter 6: Application to another case 38 6.1 Description of the comparator company’s situation 6.2 Testing the recommendations on the comparator company Appendices References Acknowledgements The making of dissertation period is one of the most...
Words: 11790 - Pages: 48
...For years Barilla was successful in selling their brand of fine pastas but when a shift in demand for products resulted in items being sold out, Barilla tried to operate like a responsive supply chain which did not work for this functional product. Based on Fisher’s 2x2 model Barilla’s supply chain should be run as a functional product with an efficient supply chain. Barilla should run a more efficient supply chain which can be achieved through the use of the Just-In-Time-Distribution (JITD) program; effective communication with the distributor will allow Barilla to retailers with proper stock of goods through more accurate forecasting and sales data. The critical elements of the JITD program employ the use of distributors’ shipment data to send only what is needed to the retailer. Each day the distributor will provide information on what is shipped to retailers and current stock levels of each location; essentially the manufacturer would co-manage the inventory with the distributor. By implementing the JITD program the suppliers would receive the right amount of product due to Barilla’s ability to improve their forecasting through current sales data and provide the necessary product to the distributor. They would also be able to manage the shelf-space and material distribution through the use of vendor-created delivery schedules. This program takes the pressure off the distributor to hold inventory they didn’t carry and increase the stock of items they already had. The JITD...
Words: 767 - Pages: 4
...Global Marketing Strategy Aalborg University, 07.09.2015 By: Svend Hollensen, svend@sam.sdu.dk Agenda: Glocalization (Ch 1) & IMS (Ch 8) Hollensen, Global Marketing 6e, © Pearson Education 2015 Hollensen, Global Marketing 6e, © Pearson Education 2015 1-2 Hollensen, Global Marketing 6e, © Pearson Education 2015 1-3 Hollensen, Global Marketing 6e, © Pearson Education 2015 1-4 Hollensen, Global Marketing 6e, © Pearson Education 2015 1-5 Some background information about myself, my university and my books Hollensen, Global Marketing 6e, © Pearson Education 2015 SDU Here I live Hollensen, Global Marketing 6e, © Pearson Education 2015 University of Southern Denmark Sønderborg Hollensen, Global Marketing 6e, © Pearson Education 2015 2001 in 1998 6th ed. came in 2013 in 2004 5th ed. came in 2010 Hollensen, Global Marketing 6e, © Pearson Education 2015 4th ed. came 2007 Chapter 1: Glocalization strategy Hollensen, Global Marketing 6e, © Pearson Education 2015 Global Marketing Strategies Globalization Localization (Standardization) (Differentiation) 100% 100% Global Low-cost Production and Selling Global roll-out of Concepts / High speed Culturally Close to Consumer GLOCAL Low complexity 07-09-2015 Hollensen, Global Marketing 6e, © Pearson Education 2015 Flexible Response to local customer needs Regional and local market penetration 11 ...
Words: 2017 - Pages: 9
...their own brand. The three major leaders, which are P&G, Henkel and Unilever, are keeping their leading position (respectively 27.2%, 20.7%, and 20.3% volume share in June 2011) and the other brands are fighting at the bottom of the graph. However since last year a new competitor is emerging in the laundry industry. As the first graph shows, Henkel is the challenger that have win market share, in December 2010, Henkel have increase his volume to 24.3% rivalling with P&G (26%) and leaving Unilever (17.7). How can we understand the rise of Henkel last year? We will try to explain this main change by comparing data from value share related to the distribution laundry in France. On graph 1 (figure 1), we can find the laundry market represented by curves. In the past (until 2010) the laundry market was largely dominated by our brand P&G, but during the past year (June 2010 to June 2011), the volume of sales has undergone an earthquake. By analysing this graph we can find an emerging challenger to P&G, which is Henkel. On the second wave we can see a conglomerate of minor challengers that are Colgate, NLN, Reckitt Benckiser and other companies. It is always interesting to compare volume with the value share: in the second graph (figure 2), we are staying the leader with a value share view between 31% (June 2010) and 32.7% (June 2011), but concerning our challenger we can easily identify the rise of Henkel against Unilever. It is interesting to understand that the...
Words: 3239 - Pages: 13
...CORPORATE SUSTAINABILITY & HENKEL’S APPROACH There is a growing trend for big companies to use sustainable concepts as core business drivers For decades, many companies have typically responded to sustainability challenges by pursuing incremental operational improvements. But we are beginning to see an interesting new trend – businesses using sustainability as a tactic for long-term offense, rather than just short-term defence. Despite the uncertain economic outlook, leading international companies across diverse sectors are investing heavily in sustainable products and services. Others are making cross-industry partnerships to develop next generation products such as the elusive mass market electric car. Some are even enhancing their business models through mergers and acquisitions that seek to address, and capitalise on, sustainability trends. Drivers of Sustainability A number of factors are driving the adoption of corporate sustainability programmes in the global business community: * Regulatory Mandates: Growing regulatory pressures compel companies to reduce greenhouse gas emissions, industrial effluents, and other environmental hazards. * Operational Cost Efficiencies: Rising raw materials and energy prices incentivize businesses to invest in waste recycling, waste-to-energy, water conservation and related technologies. * Reputational Risks: Increasing scrutiny of corporate conduct induces managers to engage environmental,...
Words: 5144 - Pages: 21
...Procter & Gamble Europe: Vizir Launch 1. Problem: Whether or not launch Vizir and, if so, whether to launch it to Germany or as a “Eurobrand” 2. Issues - How to sell counter-culture? - How to expend liquid detergent of Vizir into a “boil wash” powder detergent washing culture? - How to standardize its product formulation, packaging, advertising, and promotion if it is going to be a “Eurobrand”? - How to control the budget and keep the subsidiaries’ profit opportunities? - How to organize the European operations and coordinate the activities between different subsidies? - How to not hampering the sales of Ariel and resisting from the competitors to copy? -How to respond to the competitor’s imitations and Henkel’s counterattack after the launch? - Should P&G authorize a national launch on the basis of four months of test results? Or should they reconsider it based on the final test-market results of the entire HDL product strategy? 3. INDUSTRY/ MARKET ANALYSIS The liquid detergent has only l% market share in Europe compared with 20% in the United States. HDL market was not seen as very positive due to the different European washing habits. The washing habits in Europe are not only different from America but also different from one country to another in Europe itself. The average European load of laundry is washed at higher temperatures, using more detergent and a significantly longer wash cycle. “Boil wash” (over 60°C) was popular in most countries...
Words: 2066 - Pages: 9
... American consumer goods Company took advantage of this fact and considered Germany as one of the important market according to sales. The outstanding company P&G was founded in 1837 by the candle maker and the other is soap maker, William Procter and James Gamble respectively. P&G was the most well-liked company of America. According to James Collins and Jerry Porras, it belongs to those companies which are built to last. P&G stands for innovative brand management and is known for consumer goods business. History of American FDI in Germany: There were many American firms such as Singer, Harvester or Ford, which were operating in Germany before World War II, but P&G entered in German market in late 1950s with modern marketing...
Words: 2524 - Pages: 11
...Group 3: Himanshu Kamat (22) Hitesh Mahansaria (24) Sahil Gupta (88) Prachi Bansal (84) Kuntal Panja (106) Overview of HUL Distribution Network Sales Force Management Incentives Financial Analysis Maintaining Favorable trade relations Providing innovative incentives to retailers Organizing demand generation activities Logistic Support Evolution of Sales Force Salesman Registered Wholesaler A stock point for company’s products in that market Products manufactured over 40 factories decentralized across 2 million square mile of territory. The operation involves 2000 suppliers and associates. Distribution network consist of 4000 redistribution stockists 6.3 million retail outlets Reaching entire urban population and about 250 million rural consumers Factory Carrying and Forwarding Agent Distributor Urban Area Redistributi on Stockists Star Seller Rural Area Redistribut or Redistribution Stockists Whole seller Family Groceries Retailers Carry and Forward Agents Buffer stock points Resulted in cost saving in terms of direct transportation and reduced time lag delivery Improved customer service to RS Redistribution Stockists Provide distribution units to the company salesman Company Depot Helped in transshipment, bulk breaking, stock point to minimize stock out at the RS level Role by redistribution stockists Financing stock, warehousing facilities...
Words: 2369 - Pages: 10
...CORPORATE SUSTAINABILITY & HENKEL’S APPROACH There is a growing trend for big companies to use sustainable concepts as core business drivers For decades, many companies have typically responded to sustainability challenges by pursuing incremental operational improvements. But we are beginning to see an interesting new trend – businesses using sustainability as a tactic for long-term offense, rather than just short-term defence. Despite the uncertain economic outlook, leading international companies across diverse sectors are investing heavily in sustainable products and services. Others are making cross-industry partnerships to develop next generation products such as the elusive mass market electric car. Some are even enhancing their business models through mergers and acquisitions that seek to address, and capitalise on, sustainability trends. Drivers of Sustainability A number of factors are driving the adoption of corporate sustainability programmes in the global business community: * Regulatory Mandates: Growing regulatory pressures compel companies to reduce greenhouse gas emissions, industrial effluents, and other environmental hazards. * Operational Cost Efficiencies: Rising raw materials and energy prices incentivize businesses to invest in waste recycling, waste-to-energy, water conservation and related technologies. * Reputational Risks: Increasing scrutiny of corporate conduct induces managers to engage environmental,...
Words: 5144 - Pages: 21
...from others because it has distinct features such as competition among a few firms, high concentration ratio and barriers to entry, non price competition, differentiated products and high level of interdependence between firms. The report also outlines and describes why the UK detergent industry which is dominated by a few firms reflects the model of an oligopoly. Several real life examples have been used to confirm the theory of oligopoly. Moreover, the price rigidity observed in an oligopolistic industry has been explained by the kind demand curve theory. The second section of the report examines the case of price fixing by Procter & Gamble, Unilever and Henkel, who are major players in the detergent industry in Europe. It relates the concept of collusion and how it has led the firms to price fixing arrangements in the detergent industry. Finally the economic rationale why Henkel was not fined by the European Competition Commission has been discussed. Market structures may be generally categorised as the following: perfect competition, monopoly, oligopoly or monopolistic competition. These different types of market structures can be differentiated mainly by the number of competitors in a market and their market share. An oligopoly is a form of market structure that has few sellers that dominate the industry and they tend to sell differentiated products. It is also one of the most predominant market structures in the business world. One industry which is likely to be classified...
Words: 977 - Pages: 4
...MARKETING MANAGEMENT MIM Programme M1 ACADEMIC YEAR 2013-2014 TUTORIAL 1 ANTIOCO Michael GUERREAU Olivier GUINTCHEVA Guergana Course Structure Phase 1: analyzing external and internal environment Phase 2: Marketing strategy Planning Phase 3: Marketing Mix Tutorial 1 Detailed • • • • (Mission) & Corporate objectives Defining markets & short exercise Nielsen data Scanning the environment: example Daimler AG Mapping the Business • Daimler AG, Stuttgart, with its businesses Mercedes-Benz Cars, Daimler Trucks, Daimler Financial Services, MercedesBenz Vans and Daimler Buses, is a globally leading producer of premium passenger cars and the global market leader of heavy- and medium-duty trucks as well as busses. The Daimler Financial Services division has a broad offering of financial services, including vehicle financing, leasing, insurance and fleet management. Daimler AG Corporate Mission • As the inventor of the automobile, we have shaped mobility to a great extent with groundbreaking innovations and outstanding vehicles. We aim to continue playing our pioneering role with the ongoing development of mobility – especially in the areas of safety and sustainability. What type of Corporate Objectives are formulated by Organizations? Tutorial 1 Detailed • • • • (Mission) & Corporate objectives Defining markets & short exercise Nielsen data Scanning the environment: example What is a market? • A group of individuals or organizations (i.e., buyers) having...
Words: 1906 - Pages: 8
...climate change). Many consumers now display concern about environmental deterioration. Increasingly often they ask how much impact a product will have on the environment during its lifespan or during its disposal. This is the major impetus for green products and green marketing. A closely related reason is the competitive advantage or sales potential that some corporations now see in green products. Green Marketing is an attempt to characterize a product as being environmentally friendly. In general green products are made from recycled content and/or designed for reuse, recycling, or remanufacturing. They are usually non-toxic, energy efficient, and durable. However, green is a relative term and depends on the individual situation. 2. DEFINITION: Green or Environmental Marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment Conventional marketing involves selling products that satisfy consumer needs at affordable prices. Green marketing must also satisfy customer needs at affordable prices, but green marketing has the additional challenge of defining what is green and developing and selling products that consumers will like. Green products balance environmental compatibility with performance, affordability, and convenience. They are typically durable, non-toxic, recyclable...
Words: 4510 - Pages: 19
...THE BANKING SECTOR IN KENYA ONE: INTRODUCTION 1.1 Background to the study Customer satisfaction within the banking institution is measured by many factors, which may or may not be quality related and is the key determinant as to whether a customer will be loyal to the baking service provider (Taylor and Baker, 1994). Satisfied customer will refer other to the same services by word of mouth. In the contrary, unsatisfied customers will seek better service elsewhere, give negative reference to the poor service provider, and blame their former service providers. Therefore, banks must aim at fostering long-term relations with their customers (File and Prince, 1992). Banks need to proposition their services from the operational to marketing aspects such as retail, business and corporate banking, insurance and investment. In order to satisfy each type of customer segments, the banks prefer to subdivide the tasks in different divisions. The Commercial bank of Africa and Barclays banks are examples of diversified banking institution which have been successful in satisfying customer needs even during current global market adjustments (Qin & Prybutok, 2009). In Kenya, customer satisfaction is a bank’s strategy for increasing revenues, since it signifies the retention of customers which is much economical than drawing new customers. There are varied views about what satisfies a customer, given the operational and product innovations in the market. Pilot studies established that...
Words: 11605 - Pages: 47
...STERN SCHOOL OF BUSINESS NEW YORK UNIVERSITY Global Marketing Management Spring 2015, UB.0064.001 Professor Eileen Fischer E-mail: efischer@stern.nyu.edu Office: KMC 7-100A; Office Hours: Monday and Wednesday 12:30 -3.00 and by appointment Telephone: 646-591-8760 Teaching Fellow: TBA COURSE OBJECTIVE The purpose of the course is to examine the issues involved in developing a global marketing strategy and the challenges of implementing the marketing mix in individual countries. The course is designed to give students an understanding of: * the strategic issues surrounding global expansion and the strategic options for entering international markets * how to assess market opportunities on both Country macro and market related factors * the global competitive landscape that includes strong local competitors * balancing global and local considerations when developing the marketing mix with a focus on the tactical challenges of adapting to specific market needs * the rapidly changing challenges and opportunities in Emerging Markets My objective is to provide you with useful frameworks, tools and ‘rules of thumb’ which we apply to cases in virtually every class. Many cases will be only one or two pages and they focus on a specific question. Our longer cases will deal with multiple issues and will require the application of frameworks and concepts...
Words: 2141 - Pages: 9
...For exclusive use at University of Technology Sydney, 2015 S w W13017 BEIERSDORF AG: EXPANDING NIVEA’S GLOBAL REACH1 Vanessa C. Hasse wrote this case under the supervision of Professor Paul W. Beamish solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2013, Richard Ivey School of Business Foundation Version: 2013-03-04 On April 26, 2012, Stefan F. Heidenreich walked into the conference center in Hamburg, Germany, for Beiersdorf’s annual stockholder meeting. There, he would officially be introduced as the new chief executive of the NIVEA producer and take the reins in a time of transition and complex challenges. His predecessor, Thomas-Bernd Quaas, was to give his farewell speech in front of 800 shareholders. Quaas had been the...
Words: 8147 - Pages: 33
