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Nivea: For Men Case Analysis Add in library

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Question:

Expain Nivea - For Men Case Analysis?
 
 

Answer:

Introduction:

Nivea is actually a Global brand for skin as well as body care products owned by a German firm named Beiersdorf. This company began in the year 1911 when Beiersdorf developed water in the oil emulsifier as a proper skin cream along with the excerpt. Beiersdorf is also amongst internationally leading firms for the skin care and it is even very close to all its consumer, as its offers them compelling, and highly innovative goods and services each time. Beiersdorf enjoys a universal trust right from the NIVEA, which is one amongst world’s largest and vast skin care good’s brand, to some other globally successful brands like Eucerin, and La Prairie, plus Labello,8X4, as well as Hansaplast or Elastoplast. Along with above 125 years of skill and experience in the skin care field and being amongst the list of firm’s having world’s extra modern research and development centers, the firm Beiersdorf is known for all its innovative as well as high-quality goods plus cosmetic products (Ahmad, 2013). The Nivea cream also was first brought and introduced in the year 1911 and had more than some 14 different types of goods ranging from the one related to sun care till the one about facial moisturizers, and deodorant as well as shower products like shower gel and others. In the year 1980 Nivea also launched a product named NIVEA FOR MEN globally, and at this point it was extra popular among male because it did not include alcohol, which generally was thought to be irritating to the skin after men shaved.

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History

The past of the firm NIVEA is also very much interesting. Its story started when the a pharmacist who was Hamburg-based named as Dr. Oskar Troplowitz combined water as well as oil into some stable cream which was later was achieved through using an emulsifier named as Eucerit. In same year, the same pharmacist introduced name as Nivea from Latin word niveus-that actually means snow-white. As the product was made only for men and there was no other product in the market Nivea enjoyed the privilege of first mover (Berkowitz and Berkowitz, 1992). In the year 1911 NIVEA Cream actually was born and it owes its total development to product named as Eucerit. Just after decades of the research carried there was another study done by Dr. Isaac Lifschutz and then he discovered such revolutionary emulsifier that meant to be a product which was by then available and which could get mixed with a lively substance, fat as well as water and would give out a very stable base intended for the ointment use. The extremely creative person Dr.Troplowitz of Beiersdorf Company utilized Eucerit, and discovered for medical field, as a base for totally new type of cosmetic which was called as NIVEA Cream. The brand Nivea had very brief slump within popularity in year 1920s as well as it underwent a very massive-launch. The outcome for this was that Nivea Crème, now most popular as face cream in world. Overall, Nivea brand presently holds some 203 number one posts all across its approximately 54 nation market.

 

Discussion

Describe plus evaluate usefulness of the two pieces of information and data that the firm NIVEA used while preparing the marketing plan for re-launch of Nivea For Men

The NIVEA at that time brand was amongst the list of most recognized and well-known skin care as well as beauty products brands in world; it also was first to get introduced in the year 1911. There even were many of the reputed product and brands or bases utilized to market otherwise advertised such brand but owner seemed too look disappointed towards market otherwise advertisement of such brand (Bertelsen, 2012). There even were used and old market plans towards making this brand extra attractive as well as responsible for customers .Also several different strategies in fact were used towards preparation of marketing plan for the firm NIVEA. The initial one was through improving the formula used in products and next was to extend NIVEA’S market towards men and try to attack new segment of the society by also launching new product range. In fact in some other words it can also be said that these two were the strategies that the firm used towards re-launching NIVEA and targeting the male segment. By using the two strategies this product of NIVEA got re-launched by firm. It also was used as the first data within this case (Böhm, 2009).

NEVIA easily and without any hurdle re-launched its product through the two strategies otherwise plans or even the two pieces of information. Through re-launching the Quality the firm was also on the safer side and there even was no actual effect upon the quality. But then NEVIA took a step and continuously it made its quality extra perfect because it always wanted its user to be extensively satisfied and happy. This focus upon the product development mixed along with emphasis upon consumer requirements and needs was the key differentiator of NIVEA. Because they liked while using such product by the females, males must also have a brand loyalty along with NEVIA. Thus the firm took steps towards developing quality of product. They even extensively used SWOT & PEST evaluation of the market towards re-launch otherwise towards development of quality of the product (Bryson, 1995). The firm also identified many strength, and weaknesses, opportunities as well as threats so that they would easily be prepared for the circumstances and thereby the problems would never last longer with the firm. The firm through past analysis was able to see the future and thereby got prepared for whatever was going to happen. This saved time and money for the firm and proved to be of great advantage (Cateora, 1983).

Second piece of the data was used towards making the market plan as well as re-launching of NEVIA and was used towards looking at all target markets for attracting customers and making customers brand loyal to vast extent. The firm also used two different ways to make or advertised NEVIA.

  • Above Line endorsement- It is even known as direct spending for an advertising that was also utilized by Nivea to sell its product. By this approach the firm, easily marketed product through T.V channels etc.

  • Below the Line endorsement- Such endorsement also named as the indirect spending upon promotion was also used and TV channels otherwise commercials were used. They helped the firm reach good number of customers in less time and attain greater market share (Cohen, 1995).

By the two ways all the customers were becoming extra knowledge as well as price aware, As NEVIA actually had the uncommon price otherwise lesser cost than other skin care products. There also were sales of the male skincare goods and even had vast share in market. But because of the lack of the benefits and advantage of ever altering social believes and attitudes, and men even were also becoming extra open, otherwise certainly less fighting to the facial products for skin care. After marketing or advertisement of NIVEA and use of above strategies the outcome demonstrated that within UK NIVEA also re-launched and met all its targets as well as this even built on brand plus firm’s strength towards taking advantages of enhancing change of the male attitudes towards use of skincare goods. When the firm wished to re-launch its brand, the product of the firm that was Nivea for men, the firm took use of the two data's like SWOT analysis plus a proper business plan (Collins, 1989).

Marketing experts of the firm also laid down SMART objectives for Nivea that was meant for the firm’s product made for men and re-launch of the same. These objectives and the two pieces used were realistic, measurable, achievable, and specific and also time bounded. They helped the firm to abide by some definite rules and thereby helped Nivea to re-launch in better was. Analysis of past sales helped in forecasting future sales and analysis of the market helped to know and understand demands of people and their liking as well as dislikes. The brand through these plans and strategies stood as a good and reliable brand and made its place in minds and hearts of people. Nivea also developed the approaches it had used in the past and they proved to be beneficial ones for the firm because they were tested one and it was known that they would bring in success for the firm (Collins, 2001). Nivea enjoyed the place of market leader and use of the older strategies helped it save both time as well as money and thereby transfer the saved cost to the pole or the users which made it a cost leader as well. These plans and strategies helped the firm in building emotional connection with the buyers and thereby developed the firm and its reputation to vast extent. This helped the product Nivea made for men to re-launch itself successfully and attain a good market share. The overall sales, brand rating, image and also innovation capacity of the firm rose to greater extent (Dealtry, 1992).

In a nutshell both the pieces of plans and strategies used by the firm were highly successful ones and they helped the firm in great works and attainment of success as well.

Explain why the firm NIVEA used the football sponsorship towards helping in increase of its sales for NIVEA INTENDED FOR MEN?

Any business requires setting all its general direction intended for the firm through a good and effective business plan. Such a plan would help the organization to set out the way in which the firm is to attain its objectives. The main aims plus objectives of the business informs as well as shapes its overall business plan. For the market as well as advertising of the product NIVEA also undertook certain steps towards some other paths of the marketing plan or else selected the proper target market, also while knowing relationships amid two plans like weather planning for market of the product or towards getting the good will within the market (Fang and Rogerson, n.d.).

NIVEA also wanted to anyhow build a proper plus everlasting as well as good relationships plus even liked to maintain it and keep goodwill in market, thus it advertised its product to vast extent. Marketing team of the firm set goal otherwise objective for product of nivea named NIVEA FOR MEN which was also called a smart objective that was specific, measureable, and achievable as well as realistic. Also after creating a good relation with customers the product NIVEA which was intended towards men became a market leader for several nations and then consistently gained additional share in the market. Thus it could be said that customers had affinity with brand (Fine, 2009).

This firm emphasized a lot on promotional activities to attain a promotional balance while launching the product via a proper mix of above line plus below line promotions to build stronger affinity for the brand and the product as well. Thus the firm used football sponsorship via which it created a good promotional balance on the both sides of the promotion that is ATL and BTL (Forster, 2002).

Use of the sports ads was the main element for the firm which supports football event at grass roots via the partnership with the power league towards building a very positive relation with the mean as the product was targeted to the male segment. It even allowed brand to create plus maintain a proper as well as consistent dialogue along with the men that helped to drive the sales of the product.

When owner of firm looked towards goodwill of company as well as wanted to market product, he took steps intended for extra publicity of quality of the product (Giles, 1990). The firm also choose football towards sponsorship for the brand because people in the nation loved this game plus they knew and understood that within those days the football was centre of attraction and in UK it was liked by people to the most extent and was an all time played game otherwise a game which was loved by citizens’. That’s the firm knew that through this way the product NIVEA intended for men can properly and easily be marketed.

Football being the most popular and loved game in the nation and was one that was watched by mostly men, the firm through football sponsorship attained special benefit and was able to capture better market share. The multimillion pound and a four year agreement or deal made the firm to become the first and foremost one to supply to the football team. Football association also unveiled its 2nd novel commercial partner within time of just a week following an announcement of a novel four-year agreement with the firm Nivea to become official men’s grooming supplier to England football team. Many followers of the game got attracted to the cream as they saw the team members and the celebrities using the cream and advertising for the cream (Giles, 1985).

The agreement with the football team simply meant that the firm will supply product of Nivea intended for men to the team members of the group which they would use in the changing rooms. Thus fan’s grooming routine would even change and benefit from association along with the football team via 3 lions crest Nivea for the men grooming sets.

By above points it can easily be understood that the causes of the sponsorship with the football was to increase sale and it actually attained its aim very easily. The agreement or the sponsorship with Football Association meant that the product NIVEA FOR MEN would be supplying UK football team all the grooming products for changing room which would ultimately affect their fans as well as and the fans would also tend to buy the products of Nivea (Grünig, Kühn and Kühn, 2005). Fan’s grooming would also take place and they would be exposed to a new product. Nivea intended for Men also adopted idea otherwise concept of the fact that 'Preparation is everything' towards communicating all the benefits and advantages of looking after and taking care of ones skin with proper care regime. Nivea intended for Men also joined a Fiat like novel supplier partners towards football association following announcement of latter deal at end of the last week. Also besides football the firm Nivea for the product Nivea intended for men was also promoting some other sports throughout the globe. The sponsorship provided the firm with several advantages and they were as follows:

  1. The firm was able to capture a good market share

  2. Nivea was capable of supplying products to football team

  3. The firm went for a celebrity endorsements which benefited the firm in many ways

  4. Rugby NIVEA FOR MEN within Dubai sponsored a big event, Dubai Rugby 7S within the year 2004 (Haines, 1995).

The firm organized such types of events towards becoming popular amongst men; they also promoted their products and services along with help of such events. Through using these links with the sports, this product was capable to build very positive male brand image linked or associated with male facial and skin care goods. It also helps towards enhancing the sales for NIVEA which was intended towards men. This sponsorship brought in positive change within a very small time period (Holloway, 1986).

 

Using case study set a proper SWOT analysis for NIVEA’S position merely before re-launch of the NIVEA FOR MEN.

NIVEA for its new product intended for men used the SWOT analysis towards helping itself to access market in a superior way. This also took a very detailed look and analysis of internal strengths as well as weaknesses of business plus the external opportunities as well as threats in market place (Hopkins, 1981).

Strengths:

    • As the firm for product named Nivea for the men was actually launched in the year 1998 and they created a very strong base within the market of UK. It also had a very strong recognition within the UK’s market.

    • The firm had extra confidence within itself and this helped the firm in the long run

    • Re-launching was the best step undertaken by the firm

    • The firm was capable of increasing its market share

    • The firm identified much strength.

    • NIVEA intended for men was UK’s market leading product and was well known as facial plus skincare brand that also gave the firm a very strong recognition for the brand.

    • The firm had a very sound economic base thus it had recourses towards putting together a very strong market promotion (Hussey, 1992)

    • The firm had some staffs with relevant knowledge and skills researchers along with scientific skills towards developing product which men want as well as marketing staffs helped the firm with skills towards helping the product to promote such product effectively and efficiently.

    • The firm had very strong research plus development department that helped the firm to bring in new product each time

    • The firm was the first one to introduce a facial or beauty product for men, and thus enjoyed the privilege of the first comer in the market.

    • The firm’s Nivea that was intended for men was the first cream in the market that did not contain alcohol, this helped the firm to advertise in better way and the firm capture good place in the buyer’s mind and heart.

    • The firm had all the skills and knowledge of the market

    • The tools used for analysis helped the firm to attain better knowledge of the market.

    • The firm properly evaluated the market well.

    • The firm had a good and well known brand name that helped the firm to get recognized in the market by the consumers (Kempf and Kreuzberg, n.d.)

    • The good research team helped the firm to undertake new experiments and later bring out proper superior and novel product each time.

    • Nivea was the first comer in the market of beauty products for men and thus enjoyed the market share and attained a better share as compared to competitors(Wood, 2003)
 

Weaknesses:

More brand for men needed to be aware about weaknesses that the firm had as a drawback.

    • Risk for the target audience while the product range was still relevant otherwise not.

    • The firm didn’t know whether it had right sales plus distribution outlets otherwise not.

    • The firm was unaware of the fact that its market research was updated otherwise not.

    • The product was introduced in a very limited range and did not fulfil all the needs for men(Lamb, Hair and McDaniel, 2002)

    • There were actually no properly set model intended for marketing plan within the Nivea intended for men particularly in the UK market, otherwise it could not have been taken some 10 years towards re-launching of the product again, they can also have done re-launching many years back which would have enhanced the share in the market.

    • The firm did not have any specially designed outlet only for men

    • The firm promoted the men’s product along with the ladies product in the common outlet.

    • The firm targeted men’s segment but never attempted to promote the product specially to men

    • Nivea’s re-launch of the product for men could have been done some days earlier so that the firm could have enjoyed the benefit quite early.

    • The marketing plan did not build any plan for attainment of penetration in the market (Kotler and Armstrong, 1991).

Opportunities:

  • The enhancing and growing chances in the market was clear opportunity

  • Better and specific outlets for only men could have been launched to attain better market share

  • There was an increase in sales for the male beauty and skin care goods, thus there was vast opportunity towards re-launching product as well as making maximum benefit from it (Lindbo, 2013)

  • There were competitors making such products, thus opening doors for maximum research and developments in the filed

  • There were opportunities because men were getting opened to skin care and beauty brands and products as well (Wodarski and Dziegielewski, 2002).

  • The firm wanted advantage of altering plus changing the social attitude and carry out.
  • NIVEA FOR MEN also had seen very much increase within sales of the male skincare products as well as it wanted very greater share in the market.

  • The firm wanted to attain a proper advantage of the ever changing social beliefs and attitudes (Luther, 2001).

  • Men are actually not extra open otherwise certainly are less resistance towards facial skincare goods thus the firm needed to go for extra promotions and advertisements.

Threats:

  • The main risk was of competitor’s that they can enter market of beauty products for men which was needed to anyhow differentiate the product for ensuring that in very enhancing competitive market all its marketing activity and actions gave a very positive return otherwise investment regarding sales as well as profits.
  • It was total new market for the firm and it was the first comer in the field so had no prior experience (Marketing Intelligence & Planning Volume 10 Issue 8, 1992)
  • Consumers were becoming extra knowledgeable as well as price conscious and they generally expected the sales promotions like discounts as well as offers.

From all above points it can be easily understood that the SWOT Analysis merely before re-launch of the product of Nivea intended for men and the analysis helped the firm to attain a better and good market share and penetrate into the market in a superior way (Westwood, 1998).

Discuss how efficient and effective was marketing plan made for NIVEA specifically for the product intended for men?

It is known that NIVEA is actually amongst the most recognized and well-known skin plus beauty care products and brands in world, which was introduced within the year 1911 plus the NIVEA brand presently extends to some 14 goods ranges worldwide right from the sun care till the facial moisturizers and deodorant as well as shower products. The product NIVEA intended for men was a brand launched in UK in the year 1998. At this time the total yearly sales of the men’s skincare goods in UK was just 68 million along with male facial goods sector that was worth just 7.3million pound (Mintzberg, 1994). The sales of the skin care goods have also grown steadily from launch of the Nivea for the men and market in the year 2008 was also worth over some 17 million along with the male facial goods worth about 49 million pound. The marketing plan was extra effective and efficient and also proved to be a helping hand for the firm (Westwood, 2011). The overall marketing plan outlined all the specific activities and actions that the firm intended to carry out towards interest potential consumers as well as clients in the product otherwise services as well as persuade the consumers to buy the product plus services that the firm offered. This plan was developed like a standalone document and was a part and parcel of the business that helped the firm to maintain its reputation in the market. The firm was also able to communicate with the market in a better way through this plan and a good communication mix was developed and made and was used to interact with the market. Actually the whole plan was a proper blueprint for the communication and the value of the firm’s product to its consumers (New Strategic Plan, 2004). Effectiveness of marketing plan for the firm’s leadership status actually presented a very superior economic performance and trust plus reliability. Nivea had 15% market share in global skin care goods market and the plan enabled the firm to enhance the market share. This re-launching plan enabled the firm in several ways and they were as follows:

Enhancing the market share

Making people more aware about the product and the brand

Enhancement in the brand image

Reaching better number of customers (Payton, 1987).

Attaining good market penetration in the market

The re-launching was extra successful for the firm

The firm was able to undergo proper research through the market plan

The firm established new opportunities and the firm had many chances to undertake new tasks and make novel products(Thompson, 1984)

The marketing team utilized the whole research data towards forecasting the market trend in the next 3 to 5 years which helped them to set all specific as well as general targets intended for enhancing sales as well as growing market and also improving whole brand image. It also wanted extra men buying the skincare goods.  Also a main aim of the plan was to shift men from merely considering the skincare goods towards making the real purchase (PlesnicÌŒar and Zaletel-Kragelj, n.d.). It even aimed towards selling more too male than female and increasing market for men’s beauty products. The plan also indicated that ladies were generally the initial buyer of skin care products than men. The firm thereby focused on the product development mixed with the emphasis upon the buyer need that was the main differential for the firm and the product designed for men. This was the main reason why within UK the whole brand was till date market leader for the male facial and skin care product. Advertising within the man’s style as well as fashion magazine and articles with the product sampling actually was a vital promotional tool intended for re-launching the Nivea product men (Pride and Ferrell, 2008).

The firm used the plan as a path towards enhancing the opportunities for sales. It also used it as a means to develop the brand as an image for products made for men and targeting male segment. This brand always stood for its good quality and excellence and this plan maintained the image and did not ever hamper the image of the firm (Svensson, 2005). The brand’s core value and trust as well as credibility was properly maintained via this marketing plan which helped the firm in almost all aspects of business and marketing and enabled the firm to attain better success within the process of the re-launch. All the values of the firm was expanded and strengthened to get extra men as well as women get linked with the brand as thinking of Nivea as first and foremost choice of the beauty product (Ratnasingam, 2006).

Also the plan enabled the firm to maintain a good budget without any loss to the firm and this proper budget took the firm to long way through the process as well as success. Both below line and above line promotional activities that were undertaken by the firm within the plan helped the firm to reflect on lifestyles of the buyers and brand recognition as well as the quality performance plus price being most significant factors that influenced the firm to differentiate it from the competitors. Sound economic base also enabled the firm to strongly compare it with rivals and thereby made extraordinary plans for the fir which helped to attain extraordinary success (Robins, 2003).

The plan used two strategies and they were:

To improve formulas for the product- that helped the firm in the process of research and development.
 
To extend Nivea intended for men as a new product range- that enabled the firm to capturenew market withnew type of customers belonging to novel segment (Steiner, 1979).
 

Conclusion

Overall understanding-

The whole marketing plan of the firm acted as a cycle which started and then ended up and gave the firm a good result. The general and overall conclusion of case study can be said that within UK, NIVEA which was intended towards Men was re-launched and it actually met its aims and targets. The marketing plan proved to be a vast success for the firm and was a vital achievement as well. Marketing plan intended for re-launch actually used two fields and they were past performance plus the forecast of future towards creating proper marketing strategy. With these two approaches the firm was capable of attaining success and enjoyed the market for above 20 years. Also Nivea with this plan became the market leader amongst face care goods and cosmetics in about more than 24 nations. The firm attained all that it wanted and its strategy otherwise plan nowhere lacked and proved to be a vast support for Nivea in the re-launch that it underwent. NIVEA used its logo since the beginning, and thus for all the consumers it became very easy to consider and recognize logo. It also helped NIVEA towards creating a proper trust and good reliability of its goods and services. Though there were some drawbacks but the advantages and benefits attained after the re-launch actually covered all the gaps and made the firm attain better success.

Success or failure-

The data and information presented here prove that the re-launch was a vast success for the firm and also helped the firm to enhance the overall sales of the firm’s skin care goods. Also their rate of growth and global market share enhanced after this plan. The specific emphasis of the firm on Men helps it attain a new market share as well and being a cosmetic brand it became famous in the new segment also (STRATEGIC PLAN — 1989: PLAN STRATEGIQUE — 1989, 1989).

 

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