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“Nivea for Men”
In Indian market
Guided By: Prof. R. M. Joshi
Submitted By: Parag Raut Roll No. 86
Nivea is a global skin- and body-care brand, owned by the German company Beiersdorf. The company began in 1911 when Beiersdorf developed a water-in-oil emulsifier as a skin cream with Eucerit, the first stable emulsion of its kind. The company's owner, Oskar Troplowitz, named it Nivea, from the Latin word niveus/nivea/niveum (meaning snowwhite). During the 1930s, Beiersdorf began producing products such as tanning oils, shaving creams, shampoo and facial toners. The trademark "Nivea" was expropriated in many countries following World War II. Beiersdorf completed buying back the confiscated trademark rights in 1997. As one of the internationally leading companies for skin care it is close to consumers, offering them compelling, innovative products. Our brands enjoy universal trust – from NIVEA, one of the world’s largest skin care brands, to other internationally successful brands such as Eucerin, La Prairie, Labello, 8×4, and Hansaplast/Elastoplast. With more than 125 years experience in skin care and one of the world’s most modern research centers, Beiersdorf stands for innovative and highquality cosmetic products.
Globalization is an inevitable process in the 21 st Century, and so is the cross-culturalization. On the one hand, the world is becoming more homogeneous, and distinctions between national markets are not only fading but, for some products, will disappear altogether. This means that marketing is now a world-encompassing discipline. However, on the other hand, the differences among nations, regions, and ethnic groups in terms of cultural factors are far from distinguishing but become more obvious. It is suggested that the claims for “a right to culture” by national states in recent years can be important criteria for trade policy making, intellectual property rights protection, and the resource for national interests. From a marketing point of view it is very important for marketers to realize that as the world becomes globalized the cultural imperative is upon us; markets in the 21st century are world and yet cross-cultural markets. To be aware of and sensitive to the cultural differences is a major premise for the success in the 21stCentury marketplace. Previous research on the global marketing issues has focused on the globalization per se and the homogeneous features of the process, few studies have shed lights on the significance of cultural differences in the global marketing. Understanding cultural borders is especially important for products and industries that are “culture bound”. National culture is one critical factor that affects economic development, demographic behaviour, and general business policies around the world. The globalization of the economic environment had made it increasingly important for today’s marketing mangers to understand how to do business in different cultural context. Effective distribution of products cross-culturally has become a critical factor for success. The impact of culture on marketing is obvious, to study about these impacts we need to probe culture per se first. Culture gives people a sense of who they are, of belonging, of how they should behave, and of what they should be doing. It provides a learned, shared, and interrelated set of symbols, codes, and values that direct and justify human behaviour. In marketing and consumer behaviour research the use of the culture concept has been minimal; it has been common for marketers and consumers to ignore the depth of the concept and its implications for the analysis of human behaviour. Trade today is becoming increasingly global with its outlook today. One of the main reasons for this is technological improvements in transport and communication. Consumers and businesses have access to the best products from different countries. This has also led to increased
competition between multinational firms and countries. In part to accommodate these realities, countries in the last several decades have taken increasing steps to promote global trade through agreements such as the General Treaty on Trade and Tariffs, and trade organizations such as the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and the European Union (EU). Today almost all major corporations are actively involved in marketing their products beyond their original homeland borders. The main challenge involved in the cross cultural marketing is “HOW” to do it. Corporations today are developing strategies to take advantage of the above emerging economic opportunities.
What is Cross Cultural Marketing?
Cross-cultural marketing is defined as the strategic process of marketing among consumers whose culture differs from that of the marketer's own culture at least in one of the fundamental cultural aspects, such as language, religion, social norms and values, education, and the living style. Cross-cultural marketing demands marketers to be aware of and sensitive to the cultural differences; to respect the right to culture by the consumers in various cultures and marketplaces, marketers should understand that they deserved the right to their cultures. If the marketers want to be the winners in the cross-cultural marketing they must create the marketing mix that meets the consumer's values on a right to their culture. It involves recognizing that people all over the world have different needs
Why Cross Cultural Marketing?
From the anthropological perspective all market behaviors are culturebound. Both consumer behavior and business practices are performed to a large extent by the culture within which they take place. Therefore, in order to match the marketing mix with consumer preferences, purchasing behavior, and product-use patterns in a potential market, marketers must have a thorough understanding of the cultural environment of that market, i.e., marketing cross-culturally. However, this is by no means to suggest that in the 21st century all marketers should focus on cultural differences only to adjust marketing programs to make them accepted by the consumers in various markets. In contrast, it is suggested that successful marketers should also seek out cultural similarities, in order to identify opportunities to implement a modified standardized marketing mix. To be able to skillfully manipulate these similarities and differences in
the worldwide marketplaces is one of the most important marketing strategies for businesses in the 21st Century.
Men’s grooming products Industry
The personal care market in India is currently estimated at over Rs 300 bn and growing at a rate of about 12% annually. The major contributor to the size of the market is the soaps and synthetic detergents market of close to Rs 190 bn. Besides, skin care market at Rs 20 bn (including fairness creams at Rs 9 bn); haircare (including hair dyes, hair oils and shampoos) at Rs 26 bn; male grooming and female hygiene market at Rs 11 bn; color cosmetics at Rs 5 bn; oral hygiene (tooth pastes, tooth powder and brushes) add another Rs 26 bn to the overall market. Other important components include perfumes and fragrances, estimated at over Rs 5 bn. Today, men around the world embrace grooming as an essential part of their everyday routines. Once an activity limited to the daily morning shave of the face, grooming is now about the whole body from head to toe. The current market size of the men’s grooming products is $19.8 billion in the world .In India it is Rs 695 crore in and growing at 11 per cent. This industry is growing at a rate double than the women’s grooming products. And there lies huge opportunities and new entrant can easily enter the market and capitalize on first mover’s advantage. The men’s grooming products are no more restricted to shaving and related products. The industry has explored its product portfolio way beyond that. Currently it includes products from hair care to skin care and body care to shower gels. Lots of new companies are entering the market and making this industry intensively competitive which can be observed from the aggressive marketing campaign to get market share. Even consumers are spending a lot on the grooming products from their disposable income. Men’s started spending on the grooming products only on special occasion but now they are regularly spending on it, visiting parlour and spa has been an integral part of men’s also ( same is the response from industry as they are coming up with men’s exclusive and unisex salon and parlour’s).
Generally it is observed being said that women’s give lot of time on their grooming. But a survey was conducted and surprisingly it was found that Men spend an average of 51 minutes each day to groom themselves, compared to 55 minutes for women. With lots of job opportunities at lesser age and good amount of disposable income men’s are spending freely on grooming products. In this modern era men’s no more feel shy of visiting parlour on regular basis and spending freely on the grooming products, which was not the case a decade back. Earlier men were using the grooming products which were specifically meant for the women’s which was revealed by a survey conducted. But now with the availability of men’s grooming products, the men are offered wide range of products. Thus they are choosing the products according to their choice, suitability, usage quantity, purpose.
Earlier men were using grooming products meant for women. Men’s spend 51 minutes each day to groom themselves (Women spends 55 minutes) High disposable income with the younger generation Men’s no more feel shy of visiting parlour on regular basis Price plays a major role in choosing a grooming product
Price has the most influence on what men choose, the research says. More than half of men surveyed feel that price had either a ‘high’ or ‘very high’ influence on their selection of products. This was a substantially higher response rate than for any other factor, although ‘habit/preferred brand’ and ‘ease of use’ also ranked as fairly important influencing factors among men. Men’s grooming products industry is one of the growing industries. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segment. To the erstwhile personal care products for men, namely, shaving cream, body talc and after-shave lotions, others have been added, such as hair styling gels, shaving foams, deodorants, colognes and perfume sprays and eau de toilette. It is estimated that the growth in these products is of the order of 10% a year. The men's toiletries market has, however, been expanding even faster.
Potential of Men’s grooming products in India
The Indian cosmetics industry has seen strong growth during the past few years and emerged as one of the industries holding huge potential for further growth. Rising consumer awareness and affordability are the two main drivers of the Indian cosmetic industry. According to research report
“Indian Cosmetic Sector Analysis (2009-2012)”, the industry is projected to grow at a CAGR of around 17% during 2010-2013. Awareness regarding beauty products & treatments, fashion and grooming is rapidly increasing among consumers. Indians are very well aware about the advantages of plant products and harmful effects of chemical ingredients. As the consumers are shifting their preference for customized products, companies are also catering to the Indian consumers’ demand. The companies are focusing to expand their product portfolio in various ranges of products. Not only product diversification, our study has also identified other emerging market trends in the Indian cosmetics industry. Domestic players have also taken active participation in the market’s stiff competition and upgraded their production quality and technology to remain profitable in future. Ultimately, the whole phenomenon has resulted in high quality cosmetics products at reduced prices. The Indian cosmetics industry has seen strong growth over the past few years and emerged as one of the industries holding huge potential for further growth. In 2009, the cosmetics industry registered impressive sales of INR 356.6 Billion (US$ 7.1 Billion) despite the global economic recession. The sector has mainly been driven by improving purchasing power and rising fashion consciousness of the Indian population. Moreover, the industry players have been spending readily on the promotional activities to increase consumer awareness. According to new research report “Indian Cosmetic Sector Analysis (20092012)”, the Indian cosmetics sector is expected to witness noteworthy growth rate in the near future owing to rising beauty concern of both men and women. The industry holds promising growth prospects for both existing and new players. The baseline for the optimistic future outlook of the Indian cosmetics industry is that the there has been a rise in variety of products offered by the industry players. The companies have started going for rural expansion and are offering specialized products to generate revenues from all the corners. Improvement and strengthening of the Indian economy from 2010 will also pave the way for the Indian cosmetics market over the forecast period. The men’s grooming market—which includes face cleansers, moisturisers, hair gels, body washes, deodorants and shaving products—is estimated at around Rs 1, 500 crore, largely in urban India. Industry players say that
the market has been growing at around 20%, with face care products and deodorants growing at twice the pace. They expect the market to double in size in three years. Grooming has become a must for men. It helps that there are many more products with masculine fragrances today. And men are open to try out new products. Already, several personal care companies get a significant chunk of revenues from male grooming products and they are vying with each other to expand their geographical reach and product portfolio as the market is expected to grow manifold. Male grooming is a growing market internationally. Procter & Gamble recently announced plans to extend its Olay brand to men’s products such as pre-shaving thermal products akin to a hot towel at a barber shop. But there is room for more products and differentiation even in India as the market is expanding and most users try out different brands. Price competition is limited as there is huge opportunity in this under penetrated category and new brand launches will only help the category to grow. Nivea India has 15% of its personal care revenues coming from men’s products, while Fair and Handsome — the first men’s fairness cream to hit the market in the country — alone accounts for 10% of Emami’s personal care revenues. For Ahmedabad-based Paras Pharma, makers of Set Wet hair gel Zatak deodorants, men’s grooming accounts for nearly 70% of its personal care portfolio, which also includes Livon hair conditioners and Recova antiageing cream for women. Overall, this contribution looks very healthy, particularly because these products did not exist in the Indian market five years ago. According to industry players, the male face care and cleansing segment across metros is around Rs 77 crore, while the deodorants segment in Indian metros is estimated at Rs 340 crore, with three-fourths characterised by male products. Geographically, New Delhi and Mumbai are the largest markets for these firms. While the target consumer is strongly rooted in the 20 to 45 years age group, deodorants and hair products take the age bracket lower to 15 years. This growth includes conversion of consumers from existing unisex brands as well as those who had been looking for men-specific fragrances. Even as Fair and Handsome and Axe have held onto their leadership positions in the face cream and deodorants categories, respectively, it is the second position which is being keenly courted by FMCG brands. These
include Paras Pharma, Nivea, Garnier and HUL’s own brand Vaseline Men. These players are taking different routes to lock onto consumer connect. Paras Pharma relaunched its flagship Set Wet brand with international imagery extending it from hair gels and deodorants into shaving care products recently. Its Rs 100-crore Set Wet Hair gel has pipped Godrej Sara Lee’s Brylcreem to become the largest hair gel brand by market share. Mass market deodorant brand Zatak is growing twice as fast as Set Wet because it targets smaller cities in India. Emami’s Rs 100-crore Fair and Handsome is growing faster than the group’s turnover at 20-25%.
European Men’s grooming products Industry
THE EUROPEAN men's market is growing up, and this means that not only has male grooming become an acceptable part of the heterosexual male's daily routine, but also to the manufacturer's chagrin, those sales are levelling out. It seems that manufacturers have succeeded in convincing the European man that there's no shame in looking after their appearance, but haven't really managed to persuade them to part with much cash to do so. In France, the men's market gained about 1% to reach a total value of $973 million in 2005, according to ECM calculations, based on figures from the Federation des Industries de la Parfumerie. Germany's results were more encouraging, with the IKW registering a 4.5% rise to $849 million for the men's grooming market in 2006 and IRI Germany calculating a turnover of $1.4 billion--up 7.3%--for the men's market in 2006 (including deodorants, shower products, shampoo, skin care, shaving preps and fragrance). Italy's results were skewed by the poor performance of the men's fragrance category and an over-estimation of 2004's figures on Unipro's part, which saw the market drop 2.17% as a whole to $770 million. Men's grooming, however, put in one of the few positive performances in the Italian cosmetics and toiletries market in 2005, adding 2.8% in sales to reach $357 million. In sunny Spain treatments and cleansers were out in force, with market value up 31.9% in 2006 to reach nearly $36 million, according to IRI. The perfumery sector was also buoyant, growing 8.1% in value to $113 million.
The more mature UK market reported a less impressive, but nonetheless steady, rise in value--with TNS Worldpanel reporting growth of nearly 2% to $1.2 billion. Across the Big 5 skin care was by far the best performing category in terms of percentage growth--although this is also the newest subsector, and in most cases, still the smallest in terms of value sales. It seems that men are buying into skin care regimes, but this gain has been made at the expense of the more traditional categories.
New is Exciting
The key to men's hearts, it seems, is novelty. When a product excites them, they will invest in it. But should a product become too mundane, they won't shell out more than they have to. This would seem to explain the drop in value experienced by several of the more commodity subsectors across the Big 5's male markets. What unites European men is that they sure are picky. Those who buy their own grooming products aren't afraid to shop around, use the internet to research their purchases and if one retailer doesn't stock what they're after, they will seek it out elsewhere. In other words, men pay almost as much attention to their skin care purchases as they do to their acquisitions of various gadgets. And we all know how long it can take a guy to purchase a new set of irons!
Guys Demand Service
Men seem to prefer a service-led environment when it comes to making their skin care purchases and the perfumery and drugstore channels definitely attract the most customers across the Big 5. In France the selective channel reaps the majority of sales, Italy's perfumery channel is similarly successful when it comes to skin care purchases and Germans like to frequent their drug stores for face creams and perfumeries for face cleansers. British men are the cheapest, shopping overwhelmingly at supermarkets and Boots (a major chemist chain). Yet, Brits still balk at private label products, which lost 4.6% in 2006. Penetration of both shaving preps and skin care products is still wanting, proving that, despite the hype surrounding the budding men's market, real men have yet to catch on. Across the Big 5 just 55% of men regularly use a shaving prep--and those who do average just four uses a week, according to TNS Worldpanel. Even the smoothest operators, the French, only managed a penetration of 62%. Compare this to French women's use of facial skin care products (86% and an average of 18 applications a
week) and men's grooming habits start to look decidedly shabby. Men's involvement in skin care is even less substantial, just 23% across the Big 5 regularly use facial skin care products and 17% use body skin care products. In Italy these figures are as low as 9% and 8% respectively. Germany has the highest penetration within the Big 5.
A Drop in Launches
In terms of product innovation, the fierce NPD activity of the past two years seems to have died down of late. In fact, now that all of the big multinationals have jumped on board, the launch activity has been considerably quiet in the past year, and many of the strong brands in this market have spent the year re-evaluating their offering. Estee Lauder's Lab Series dropped the Aramis tag from its packaging and re-evaluated its product lineup, coming back with a sleeker, more navigable range. In May, stable-mate Origins came up trumps with the brand's first full men's line, with Fire Fighter Plus Beard buster and Easy Slider Pre-shave oil added to the company's pre-existing offering. Shiseido debuted Shiseido Men Shaving Cream with the company's Damage Defense Complex. In the men's fragrance market, launch activity was prolific, as several of the big feminine fragrance launches of 2005 introduced a complementary male fragrance in 2006. Prada (Puig), for example, made a splash with its first male fragrance in September, Burberry (Inter Parfums) followed up Burberry London with Burberry London for Men. Lauder's DKNY license bowed with Red Delicious for Men and Coty introduced Calvin Klein Euphoria for Men. Relatively new to the men's market is the influence that celebrities are having on the fragrance counters. While celebrity licenses have traditionally been inspired by famous women and formulated for women, the men's market has caught on to the enormous marketing potential of this budding market. Thus this year we've seen Sean Combs' Unforgiveable bow onto the European market. Clive Owen is fronting Lancome's Hypnose for men and despite David's hop over the pond to play for an American team, Coty's House of Beckham has seen the footballer launch his second fragrance as part of duo Intimately Beckham. Watch out America!
Behavior of Industry in India ………. Is it Hype?
For the past decade, men’s grooming has been billed as an important source of growth for the beauty industry. To date, however, the sector has failed to deliver gains as large as anticipated. Yet recent innovations,
including men’s makeup, have put the sector firmly back into the headlines, and unlocking potential in developing markets is high on manufacturers’ agendas. At a value of $21.7 billion, according to Euromonitor International, the global men’s grooming sector is sizeable, although it accounts for only 8% of value sales in the cosmetics and toiletries market as a whole and is smaller than price-pressured commodity sectors such as oral hygiene and bath and shower products. In terms of dynamism, the sector grew 5% in fixed exchange rate terms in 2006—approximately on par with the entire cosmetics and toiletries market, and maturation in the traditional men’s grooming areas of shaving products and deodorants, which accounted for 79% of total sector sales in 2006, is holding back growth. Even burgeoning demand from the emerging markets and the niche appeal of newer men’s grooming subsectors—such as moisturizers, exfoliators and hair styling products—is proving insufficient to halt the slowdown.
How culture and age impact growth
Of course, it is now more acceptable for men to take care of their appearance than in decades past. Women, too, are encouraging this notion, with the message that being well-groomed is sexy. Consumer men’s magazines—such as Maxim, GQ, Men’s Health and FHM—educate consumers and give them confidence to make purchasing decisions, while globalization and the spread of Western ideals ensure the popularity of men’s grooming is truly a worldwide phenomenon. That is not to say all men across the globe are using men’s grooming products and at an equal level. The United Kingdom is the chart-topping major market in terms of per capita expenditure at $23, while China is at the other end of the spectrum with less than $1 per capita. In predominantly Muslim countries, where having a beard is considered a sign of religious devotion; men’s grooming is significantly less well established. Saudi Arabia and Egypt, for example, both display per capita spending well below the global average. In the Asia-Pacific, sales are slower in the important shaving category, and despite intensive marketing in the fast-emerging economies of China and India, the two markets sit near the world bottom for per capita expenditure in the category. The spread of metrosexual ideals is evident, though, in the dynamism of what are traditionally macho cultures, such as South Africa, Australia and New Zealand.
South Africa was one of the world’s most dynamic men’s grooming markets, with sales increasing by more than 13% in U.S. dollar terms for the period 2005–2006. While the most widely used men’s grooming products in South Africa are extensions of well-known mainstream brands, there are several premium skin care ranges specifically targeted at men entering the market. Age is also a factor in uptake; the young, having been brought up with the idea, are more accepting of grooming regimens and receptive to new products, while older men are more brand loyal and used to a fairly basic daily hygiene regimen. While this demographic divide is proving hard to bridge, manufacturers are throwing their efforts into the task, and highend labels have already successfully cracked this market. Given the impact of demographics on product uptake, manufacturers must consider the needs of their target consumer group on a market by market basis; products cannot simply be launched on a global platform. For example, due to the conservative grooming habits of Indian males, men’s skin care is unlikely to take off without careful consideration. Most male consumers will not want to be spotted buying a skin care product, as the use of cosmetics continues to be regarded as a female habit. Creating awareness by using a celebrity spokesperson to demonstrate that grooming for men is acceptable and that it serves more of a functional than cosmetic benefit is one way to change this perception.
Room for growth in leading markets
The concept and culture of men’s grooming is most developed in the mature economies of Western Europe, North America and Australasia. Men in some Western European markets have traditionally followed a daily grooming regimen similar to that of women, and the trend is spreading quickly throughout the region. Given that men’s grooming is relatively undeveloped compared to other cosmetics and toiletries sectors, these developed markets returned strong growth figures over the 2001–2006 period, even during the economic downturn in the United States. However, while the sector as a whole is not mature, men’s razors and blades and deodorants are approaching maturity in these markets, and the challenge now is to expand penetration to non-core consumers and add value. In North America, mass-market, sport- and sex-orientated brands are targeting teenage boys and younger men, while premium brands are aimed at aging but more affluent men. Manufacturers are also trying to generate usage of bath and shower products and hair and skin care. There
are definite signs of increasing sophistication in this market, with natural and organic products becoming available and doctor brands appealing to the functional needs of men. In pre- and post-shave products, the key word is “sensitive.” A consumer brand that offers a sensitive post-shave balm, shaving cream, moisturizing lotion and face wash is a good example, with its rapid growth in recent years. Key growth opportunities lie in adding beneficial skin care properties to shave products and in continuing to cultivate acceptance of nontraditional subsectors—such as men’s skin care and bath and shower products—via advertising and editorial coverage in men’s magazines.
Latin American men get skin-conscious
The Latin American men’s grooming sector is one of the world’s most dynamic, with the strong absolute gains of $1.4 billion over 2001–2006 expected to continue in the longer term. As a region, Latin America is appearance-conscious, and it is becoming increasingly acceptable for men to spend money and time on grooming. Here, the key issue affecting growth is price, as opposed to men’s unwillingness to experiment with products or the lack of awareness found in other markets. Manufacturers must convince male consumers to spend on male-specific products rather than gender neutral brands by offering price-competitive products with added benefits. Men’s grooming, however, still has a long way to go in the region. Men’s shaving and deodorants account for almost all sector sales. Men’s bath and shower products, hair care and skin care are still far from falling into mainstream usage, although skin care was the most dynamic subsector 2001–2006, with 35% growth. Brazil and Mexico dominate the Latin American market, accounting for 43% and 20%, respectively, of total value sales in 2006. In Brazil, manufacturers are trying to encourage sales in the less penetrated men’s grooming subsectors with products better adapted to male habits—simple application products and suitable fragrances—with one line offering a combined shampoo/body wash in a portable pack, for example. In the better developed deodorants subsector, the migration of consumers from cheaper pump products—the most commonly used format—to more expensive sprays and roll-on products is a key stimulus to sales. However, keeping prices down will also be essential for future growth. At present, male-specific products cost twice as much as similar female products, negatively impacting sales.
Across Latin America, the key to growing sales is to persuade consumers to trade up to more premium razors, blades and deodorants while also stimulating usage of the less developed subsectors. Celebrity endorsements can help, especially ones that link a product to something manly, such as sports. Soccer star David Beckham’s collaboration with a mainstream razor company, for example, has helped promote both the latest razor and blade designs and penetrate pre- and post-shave subsectors.
The Asia-Pacific region may present the most promising growth prospects for men’s grooming brands. The market is large in terms of population and is comprised of both affluently developed and fastdeveloping countries. Asia-Pacific culture also tends to emphasize the importance of grooming—although, for men, this currently simply means good hygiene and a tidy appearance. There is not yet an established demand for more sophisticated men’s grooming products, such as skin care. Japan dominates the Asia-Pacific, accounting for more than 51% of regional men’s sales in 2006. It is also an anomaly in terms of subsector sales, with hair care far outstripping sales of razors and blades. Coloring hair, particularly to cover gray, has been popular among all Japanese consumers for many years. Japan is also not a particularly hirsute culture. Hair care and razors and blades are set to dominate sales to 2011, and it will become essential to stimulate growth by developing the smaller subsectors as razors and blades reach maturity. Multifunctionality is one way to achieve, stimulate and maintain this further growth. This trend appeals to Japanese men, who would prefer one product to carry out as many functions as possible. New ingredients, and particularly natural ones, could also prove popular, as could convenient packaging and portable designs. Because pensioners make up an increasing portion of the population, products aimed at older men are likely to become more prevalent through 2010. Products such as wrinkle treatments are also likely to do well. South Korea, India and China are the only other men’s grooming markets of significant value in the Asia-Pacific—although the sector is also beginning to generate sales in Malaysia, the Philippines, Thailand and Taiwan. South Korea is quite developed in terms of the metrosexual trend, and the emerging men’s deodorants and skin care subsectors are the key drivers of growth. The influx of new skin care product formats, such as
men’s face packs and masks, is further stimulating sales. The evolution of functional skin care—those with whitening, anti-aging and sunscreen ingredients—is also notable. In addition, manufacturers in South Korea have successfully leveraged the equity of women’s skin care brands by extending products into the men’s market via the addition of the word “Homme” and utilizing more masculine scents and packaging. Some products even verge on cosmetics—notably a facial brightening stick that also provides a matte finish. In India and China, awareness and usage of male-specific grooming products remains at a low level, largely restricted to the urban centers. Indian per capita expenditure in 2006 was the equivalent of $0.50, compared to $12 in Japan. Nonetheless, there are ways to grow both markets by increasing awareness and acceptance of men’s grooming via advertising and smart consumer targeting, such as offering budget-priced disposable razors in rural areas and premium products in affluent urban areas. Optimism reigns Although men’s grooming has not delivered the dramatic growth heralded in 2000, Euromonitor International forecasts the category will increase by $3.5 billion, at a global level, by 2011, and the potential offered by emerging regions is clear. In developed markets, products are becoming both increasingly segmented and sophisticated. In May 2007, U.K. supermarket chain Asda broke new ground by announcing plans to develop sunscreens containing “butch, ultra-masculine” scents—including beer. It will be the first time a mainstream label offers targeted men’s sun care. Men’s makeup line launches, however, generated the most publicity for the sector, with recent headlines focusing on the developments of a mascara and a concealer for men. Self-tan is proving to be big news in men’s grooming, as well.
The current market size of the men’s grooming products is $19.8 billion in the world .In India it is Rs 695 crore in and growing at 11 per cent. In metros alone, it is growing at 12 per cent. It is being predicted that by 2014 the world market size of the industry will increase to $28.5 billion.
Following are the wide range of products offered by Nivea: SHAVING PRODUCTS:
Shaving Gel: Nivea for Men cool kick
shaving gel, Anti-irritation shaving gel(Extreme comfort), sensitive shaving gel, extra moisture shaving gel, antifriction shaving gel (easy cross shave), Revitalising shaving gel (Double action), Skin protection shaving gel (Silver protect), cool kick artic freeze wash and shave gel 2 in 1.
Shaving foam: Nivea for men; Extra
moisture shaving foam, strong beard shaving foam, cool kick shaving foam, sensitive shaving foam, skin protection shaving foam (Silver protect)
Shaving cream: Nivea for men mild shaving cream Electric: Moisturising shaving system
Balm: Nivea for men; cool kick post shave balm, sensitive post shave balm,
replenishing post shave balm, anti-irritation balm, revitalizing double action balm, skin protection after shave balm Fluid/Lotion: Nivea for men; energizing post shave gel fluid, sensitive post shave lotion, replenishing post shave cream, skin protection after shave, cool kick arctic freeze after shave 2 in 1
Nivea for men; Silver protect polar blue, Silver protect Dynamic power, Menergy deo rebellious, Menergy deo wild, cool kick, sensitive protect, Dry impact, fresh active, sport
Shampoo: Nivea for men; Anti- dandruff pure shampoo, Anti- dandruff cool
shampoo, Anti- dandruff power shampoo, Strong power shampoo, intensive control anti- dandruff shampoo, cool kick, Hair recharge shampoo (Anti-hair loss system), Hair recharge tonic (Anti-hair loss system) Gel: Nivea for men; style freeze Elasto power styling gel, Style freeze crackling styling gel, Aqua gel ultra wet look, Speed power styling gel, Real style Natural look paste
Face care: Nivea for men; Rehydrating moisturizer, sensitive moisturizer, oil
control moisturizer, intensive moisturising cream, cool kick moisture gel, gradual
tan summer look moisturizer, Anti-age moisturizer, Active care, Anti-age moisturizer, Revitalising cream, Revitalising eye roll on Face wash: Nivea for men; Oil control facewash, Exfoliating face scrub, Deep cleaning face wash, Sensitive face wash, Revitalising face wash
SHOWER & BODY
Nivea for men (Shower gel body and hair); Sport, Cool kick, Energy, Sensitive, Revitalising body lotion, Active 3, Silver protect, Menergy
Cross Cultural Issues in India
The culture, the economy, the lifestyle, the behavior are different in India than the Europeans and Americans. It can be clearly identified from the lifestyle and consumer behavioral pattern that is persists here in India. Same can be seen in case of grooming products use. European men’s spend considerable amount of their earning on grooming products. They treat grooming to be a part of their day to day life. They often, visit parlour’s and are very conscious about their looks and hygiene. Indian men’s on the other hand are lot different. For them grooming means only shaving, using cold cream and hair oil. Other grooming products like fairness cream, cologne, body shower gel, moisturizer, hair color, hair gel etc are luxury items. The above continues to persist in Indian society because the marketing of these products are done in a way as it is done in European market. Same commercial ads are used in India which makes their feelings strong about the grooming products of being luxury items. Men’s use the grooming products on special occasions like marriage, family functions and parties. People perceive using grooming products as a luxury. But deodorant has some other story of success in India. This has a completely different image and positioning in Indian market. Every 8 out of 10 youngster in urban India, uses deodorant as a daily use grooming product. This is because of strong advertising and positioning of the product especially by “axe” which is a market leader in this category. Deodorant has now become a daily use product. Indian men still treat grooming as a girly stuff, so different approach is needed by the companies to penetrate the Indian market and capitalize on the untapped opportunities lying in the men’s grooming products industry. The main bottleneck coming in the way for MNC’s is the cultural differences, if properly identified and accordingly the strategy is formulated and adopted it will definitely do wonder to both market share and their profits.
With a wide portfolio in its product basket, Nivea is ready to make a huge impact on emerging Men’s grooming products market. If the opportunity is utilized by articulate marketing strategy it will take both Nivea and Men’s grooming products industry to greater heights. Now, its upto the companies, as to how they leverage upon the underlying opportunity.
Key Challenges/ Barriers:
Industry executives say the major challenge in the market is the penetration. The penetration of fairness creams is less than 25 per cent, compared to a category like shampoo, where it is 60 per cent. A face cream is perceived as more cosmetic in nature than, say, a hair product, and hence considered rather unnecessary/a luxury. Garnier, which is a higherend product, has launched Garnier Light and Garnier Men in sachets priced Rs 10 to drive penetration. Pricing is very critical, especially in the context of rural markets such that highend products will find it much more difficult to make a dent. Emami is perhaps the only company in India which sells mainly men's fairness cream. Naturally Fair, its other, older fairness cream, is still available but they have reduced focus on it as “it's difficult to compete in women's fairness cream”. There's no clear differentiator and it's monopolised by Fair & Lovely.
Cross Cultural issues:
1) Grooming products are perceived as luxury because of premium price, Available in big showrooms, malls, available in big package (Small sachets are not available) 2) First time buyers are reluctant to go for bigger pack. 3) Products are not promoted as a mass market product. It still has a exclusivity attached to it. 4) People think that it is beyond their reach. 5) Thus, to introduce the products in the mass market especially in India the middle class forms the largest consumer base. Thus naively this unexplored market need to be targeted.
6) Distribution network is complex in India. Attractive margins need to be offered to the channel partners. 7) Advertisements that are used in India are showcasing this product as a product which has a glamour attached to it. Thus the company is using the same positioning as it is doing in European and American market, which should not be the case in India. 8) It should be positioned to be the product for day to day life, because the target population for the grooming products should be between 20-45 years. 9) Indian men are shy of using the grooming products, they conceive use of grooming products has a feminism attached to it. Also, one conducted by a research firm showed that 30 % of women’s fairnesss cream is used by men. 10) The distribution channel is not upto the mark and is not apt for the Indian market. As of now the Nivea products are available only in big shops, malls, supermarket, hypermarket. Rather the product should be made available in local kirana stores through which large base of potential customers may be targeted. 11) Normally, in India grooming products are purchased by women, so the packaging should be so as to attract both the male and female. 12) The Penetration strategy should be adopted by Nivea by means of sachets sale and low pricing methodology, this will increase the number of men using the grooming products. This method will be very effective for first time user. 13) Giving free samples free with some women’s grooming products, to reach out to the men population. The same strategy was adopted by P&G during their recent Diwali offers in which they were offering a combo pack of healthcare and grooming product, which included one men’s product and other women’s product. 14) The product is not able to create visibility, the industry is not organized. 15) The company has gone for straight adaptation in Indian market wherein they are using the same marketing (Advertising strategy) and communication strategy. 16) Also the company should go for product adaptation in terms of its packaging and availability i.e. the products should be available in small packs, to entice the new consumers (innovators, early adaptors)
17) The company has not explored all the communication channels namely Advertisement, sales promotion, direct marketing, interactive selling and Personnel relations. 18) Although Nivea has the widest range of products in its basket. No other company has reached this widest range and will not reach atleast in near future. The company is not able to capitalize and leverage upon this advantage that it has got , in this budding untapped market.
Cross Cultural Marketing Strategies
1)Know Your Own Cultural Background When we learn about other cultures we often think about it as "us” understanding "them". But when developing a deep understanding about crosscultural issues, we must first start with understanding ourselves or "us" understanding "us". Take a moment and think about how you see the world. How have your education, traveling, gender, faith, children, sexual orientation, hobbies, and/or recreational interests shaped who you are? What celebrations and rituals are important to you? These elements collectively form your unique cultural identity, the lens through which you see the world. In this sense, every encounter we have with another person is essentially a cultural exchange, not just those with someone who obviously speaks, eats, dresses or appears differently. The next time you interact across cultures, share who you are, too. This will help us to learn from each other and not just about each other. 2)Know Your Expertise There are numerous challenges when going overseas. It is vital to understand what your expertise is, and to then find the other expertise that you need to be successful. Don’t be afraid to bring in marketing experts for your target countries. 3) Do Your Homework Spend time researching the culture of the target countries. Learn about communication, negotiation and work styles. Is your target market a high context (for example Latin America) or low context market (US)? What do you need to know about non-verbal communication? 4) Cross Cultural Meetings We all know communication is the key to ensuring good relationships, no matter who we are communicating with. But, when communicating across cultures, it is even more important. If you are having meetings with participants from different cultures, put more of your communication in writing than you normally would. Under each agenda item, put bullet points of topics to covered and key issues
that need discussion. This ensures that everyone (even those with more limited English skills) can feel confident that they understand what is being presented. 5) Use a Celebrity in TV commercials The TV commercial which is currently being showed country wide in India , does not feature a celebrity. A celebrity from Bollywood or cricket should be used to entice and attract the consumer to buy the products. Garnier uses John Abraham a renown Bollywood actor. Also Emani uses Sharukh Khan the king of Bollywood to endorse its product Fair & Handsome. The Advertisement should be informative and persuasive. Advertisment are always seeking “the big idea” that connects with consumers rationally and emotionally sharply distinguishes the brand competitors and is a broad flexible enough to translate to different media markets, and time periods. Television is generally acknowledged as the most powerful advertising medium and reaches a broad spectrum of consumers. 6) Communication Adaptation is the necessity The product should be positioned so as to showcase that it is for the day to day use. The current Communication strategies is depicting that it has a glamour attached to it. And only people from metro and upper class of the society can use it. The attitude can be changed only through adoption of communication strategy which makes them feel that even middle class consumer can afford it. And the product is meant for day to day use. 7) Concentrate on products which has high growth capacity Nivea has the widest range of the products which are mentioned above in the report. It should rather concentrate on some particular products which are doig well for the Nivea and also for the competitors. This would be a good penetration strategy and build brand visibility in Indian market.
From the study it can be concluded that Nivea for Men should go for a communication adaptation strategy in India. Ineffective communication seems to be the major issues faced . In other aspect it is similar to the other companies in the men’s grooming products industry. Analyse and try to learn the Indian culture by doing a study, hiring local employees . This will help the company to formulate the strategy which is conducive to growth in Indian market, where diverse culture persist. It will take years to match the competitors without the need from the Indian’s in every stage of entering the market. Be it learning the consumer behavior, selecting channel partners, trade promotions and consumer promotion. The suggestions
given above should be considered and it is the golden formula to win the Indian consumers mind and be a part of growing Men’s grooming products Industry in India.
Demand for Shaving cream in Past and Future (In Tonnes)
Grooming products Industry Growth Rates
State-wise Per Capita Net State Domestic Product (NSDP) at Current Prices (New Series : 1999-2000) in India - Part I (1999-2000 to 2008-2009)
Andhra Pradesh Goa Gujarat Haryana Karanataka Kerala Maharashtra Panjab Rajasthan Tamil Nadu Chandigarh Delhi Pondicherry All - India Per Capita NNP
23925 66135 28846 37681 24707 29071 32376 32970 16874 27512 79562 54505 43303 23198
26662 78612 34264 41857 28787 33044 36048 36277 18008 31663 88456 60951 52408 26003
30439 87501 39459 50611 31713 37947 41144 39874 21203 37190 100146 70238 71719 29524
35600 105582 45773 59008 36266 43104 47051 46686 23986 40757 110728 78690 78302 33283
40902 NA NA 68914 40998 49316 NA 52879 27001 45058 119240 NA 84625 37490
Year 2000 2005 2010 2015 2020 (In millions)
361 368 370 372 373
604 673 747 819 882
45 51 58 65 76
1010 1093 1175 1256 1331
1) www.wikipedia.org 2) www.niveaformen.co 3) www.beiersdorf.com 4) www.indiastat.com 5) www.economicstimes.com 6) www.businessstandard.com
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