CASE 01

1. Describe what is meant by a business being Consumer Led.

Answer: A business being Consumer Led is that way which was basically taken by company
in order to lead the target customers towards their product and accessible through a brand by
providing reachable place to access. In the business term this concept is recognized by
Promotional strategy. The promotional strategy of NIVEA Visage Young was the consumer led.
By the usage of various below-the-line routes, company evaluated several ways for getting views
of teenagers and their mothers. These are as follows:
The key element of companys promotional strategy was to use product samples. This facilitates
customers to smell, touch, feel and try the product at once. In the year of 2008, more than a
million samples of new product of NIVEA has been given away. These samples were accessible
through the samples in stores, websites or through goody bags given at road shows. This whole
was the promotional strategy of company for keeping their products in the view of customers.
The NIVEA Visage Young has launched online magazine named as FYI (fun, young and
independent) in order to enhance brand awareness among people. The central aim for launching
this magazine was to enable confidence to the teenager girls to become younger and enjoy their
brand new independence.
The NIVEA Visage Young has connected with FYI and after that acknowledged the power of
social networking sites among the young audience. After that company has pages on several
social networking sites such as Facebook, MySpace and Bebo. The company was approaching
media as a part of promotional means for growing their business and customers in the market
(NIVEA: The use of the Marketing Mix in Product Launch).

2. What are the key parts of the marketing mix? Explain how each works with the
others.
Answer: The key elements of the NIVEA Visage Young marketing mix are product, price, place
and promotion. These marketing mix key parts played vital role in the establishment of any
product in the market. The first element is the product, which has been redesigned and its
revised feature which was specifically created for the wants and preferences of the NIVEA
Visage Young fragment. The product has been redefined in order to pass a message of social
responsibility and corporate sustainability which was a significant factor for the principles of the
young women. By drastically adopting the formula of including natural elements such as sea
salts and minerals, NIVEA has established its root by creating their product that reflects its
market positioning. The product is the catalyst in the marketing strategy which unifies all other
elements in the marketing mix.
The pricing was constant with the strategies for distribution channel for promoting a majority of
skin products by the means of street retailers. The hike in price also builds an effective price and
quality relationship which differentiated these products from the further skin treatments. After this
marketing element place played a vital role in the marketing strategy. The NIVEA Company has
promoted their range of products at effective places so that customer can easily access their
products. Promotional place has significant impact on the selling of any product.

One of the significant elements of marketing mix is promotion strategy. Promotion of NIVEA
products established an awareness of products range among the customers. These marketing
mix elements have integrated significantly over the development of business. Product, price,
place and promotion are directly or indirectly interconnected with each other. One element
motivates others. These marketing mix tools enable a company to grow in the market by
analyzing the market requirement (NIVEA: The use of the Marketing Mix in Product Launch).

3. Explain why the balance of the marketing mix is as important as any

single element.
Answer: The elements of marketing mix are equally important in order to ensure balance when
the company is focusing on marketing a product in the market. The NIVEA Company has
adopted four Ps of marketing mix in order to identify the strengths and weaknesses of the
combination of these marketing mix tools. It would be very worthy to have magnificent product at
affordable price and located in accessible place with the advanced promotional techniques. In
case, if the products is marketed marvelously at the least possible cost and also have popularity
among public but the product is placed in such a way that nobody can find out in market. For
overcoming these drawbacks it would be vital to integrate each marketing elements with each
other in the balanced manner so that company may grow with the pace of life. The NIVEA
Company designed a new range of products in the market by analyzing the market situations.
The company has established a balance framework among all marketing tools in order to
enhance their business and satisfying their customers in the market. The Company emphasized
on each marketing elements in the balanced way for consistently growing in the competitive era
(NIVEA: The use of the Marketing Mix in Product Launch).

4. Analysis the marketing mix for NIVEA VISAGE Young. What are its strongest
points? Explain why you think this is so.
Answer:The NIVEA Company after market research has re-designed a range of product with
new formula, packaging, design and with the new name in the market. The Company has
focused on the marketing strategy by more emphasizing on the balancing view of marketing mix
tools. This balanced marketing mix given additional advantage to the company for their business
development.
As per the market research younger consumers wanted beautifying benefits rather than a
solution of skin decease. NIVEA Visage Young was introduced for skin care targeted at those
girls who do not want any medicated product. But competitors products were more focused to
the problems. This became an additional competitive advantage to the NIVEA.
The Companys pricing strategy wants to ensure initially a range of products at low prices so that
company can achieve high volume of market share and purchases. With the availability of range
of products at this low price, it encouraged customers to develop a practice of buying. This was a
strong benefit to the company.
The NIVEA Company has emphasized on the place and promotional strategies of the company.
NIVEA has placed their products at that places from where consumers can easily access their
products. It placed their products at retail outlets which is generally accessible by customers.
Along with this for enhancing the awareness of their products among the consumers, Company
has promoted their products by the efficient usage of advanced techniques for promotion. These
were the additional advantages to the company in the market for their business development
(NIVEA: The use of the Marketing Mix in Product Launch).

CASE 02
1. What was the key weakness that Skoda was able to identify?
The SWOT analysis was used by Skoda to identify its weaknesses. One of the greatest
weakness identified, which affect the success of the company is its small market share.
Skoda only holds 1.7 percent market share. Because of this, Skoda remains a small
player in the car manufacturing market. Through the SWOT analysis, management was
able to identify this weakness and also the causes of this weakness. Skodas small
market share, is attributed to negative perceptions of the consumers of the brand.
Skodas heritage as an Eastern European can manufacturer is a subject of outdated,
negative consumer perception. In the past, Eastern European cars had the image of poor
vehicle quality, design, assembly and materials. Because of this consumers do not
purchase Skoda manufactured cars. This poor image also affects Skoda owners.
Because of the negative perceptions of the general public of Skoda cars, owners lose
their trust of the product. In addition, car ownership is look upon as something that
creates an image of the owner. Car ownership is all about image.
Under Volkswagen AG, the Skoda brand was improved. The goal was to create a new
brand image and consumer perception. Skoda cars started to be seen as not low-budget
or low-quality any more. However, it has been found that Skoda still had a weal and
neutral image in the mid-market range it occupies, compared to other players in this area
The persisting weakness of Skoda is unfavorable brand image and poor perceptions of
the cars. Consumers still does not regard Skoda as quality cars. The company needs to
formulate marketing strategies that will focus on the good qualities of the cars and create
a good brand image.

What strength did Skoda use to turn its brand weakness into an opportunity?
The strengths of Skoda were identified and assessed by conducting a SWOT analysis.
The company conducted a research involving consumers in order to find out the
strengths of its products and brand. Surveys were also used. The strength of the
company and its products lie in its focus on experience rather than on sales. Meaning, the
company makes sure that there is human touch in the production and manufacture of
its cars and make sure that the consumers feel it. Because of this strength, Skoda was
listed as one of the top five manufacturers by JD Power. Skoda was also awarded by Top
Gear in 2007, as the number 1 car maker. The results of these surveys seem to testify, that
the strength of Skoda is its focus on

I. What was the key weakness that Skoda was able

to identify?
One of the successful global brands is Skoda, which produces their products in today's strong
competitive market. In order to get more competitive edges and more shares in market, Skoda
identifies their internal weaknesses and tries to reduce them. Internal weaknesses are the things that
business not good at, that it is ineffective at or that it has a poor reputation for. It also includes the
factors that cause losses, hardships, disputes, grievances and complaints for a business.
There are some key weaknesses that Skoda needs to improve such as their market share which is
only 1,7%, with this small market share they cannot compete with their competitors who has more

market shares than Skoda. This is because Skoda is mostly known as very poor vehicle quality,
design, assembly, and materials in Eastern European. That is why customers already have negative
ideas about Skoda's products. Skoda tries to change their negative image from 1999 onwards, under
Volksagon AG ownership. They changed their image and try to prove that Skoda's cars are not low
budget or low quality anymore. They want to show others that they are strong competitors as well.
However, a brand 'health check' in 2006 showed the result which Skoda does not want. The result
was Skoda still had a low image in their market comparing with other brands such as Ford, Peugeot
who already known as high quality products. All in all Skoda is no longer poor quality brand; it did not
have a high image either.

II. What strength did Skoda use to turn its brand

weakness into an opportunity?
Strengths are things that a business and its staff are effective at and well known for. When company's
use their advantages and make more profits than their competitors we call it their strengths. With their
strengths company's lead to confidence in the market and it causes customers to come back again
and they became loyal customers for that business. It sometimes cause other businesses to try to
copy them.
According to Charles W.L.Hill (2002) opportunities are the directions that the business could profitably
take in future because of its strengths or because of the limitation of its weaknesses. This usually
involves a consideration of the business environment from the widest and most creative possible
standpoints.
In this case study Skoda's strategy was focused on their existing strengths and take more advantages
of the opportunities in the market. In order to identify their own strengths and weaknesses Skoda UK
done some research about their products and services from customers. The result of this research
shows that Skoda's customers are very satisfied with their cars and voted Skoda the 'number one car
in the market'. Skoda concentrated on owner experience rather than profits which bring more strength
to the company. Because of their good customer service Skoda's 98% of customers would
recommend Skoda to others such as their family and friends. This is one of the biggest strength that
Skoda has, even the brand known to others with their poor image and low-quality products, their
customer satisfaction would increase their sales more than their competitors who only cares for their
product quality. In other words Skoda's competitors focused on only products and sales that is why
Skoda takes this to their opportunity and focused on their customer satisfaction. Skoda's unique
selling proposition (USP) focused on happy Skoda customers and it enables them to differentiate the
brand from others.

III. How has Skoda strategically addressed external

threats?
Threats are external factors which can be negative effect for your business. Threats to a business
arise from the activities of competitors and from failing to take opportunities or to build on successes.
Threats also come from complacency, a lack of rigors, and from falling profits, perhaps due to rising
costs". Hall et al. p123 (2000)
Understanding and analyzing their treats is very important for the SWOT process. Skoda is competing
very crowded and high competitive environment. That is why they should use strong strategy in order
to get more competitive edges. United Kingdom is big market for car industry, there are fifty different
car brands selling 200 models. In order to survive from this market Skoda makes sure that their
customer segmentation and marketing is really effective and results should be positive. If they cannot
do this other competitors and customers would underestimate Skoda. Another thing that Skoda needs
to do in order to compete in UK is increase their product range. They have seven different cars which
represents Skoda in UK. Each of them are made especially for their customers and priced to appeal
to different market segmentation groups.
Another external threat that Skoda addressed was their Corporate Social Responsibility (CSR)
according to EU legal and environmental regulations. Skoda found their ways to be responsible for the
social. For instance, they were recycling as much as they can and using latest manufacturing
technologies which are not harming the environment. They even got technology to design their cars
with lower noise levels and developed sound quality.

IV. What in your view are the important benefits of

using a SWOT analysis?
One of the most popular and useful analysis for business is SWOT analysis. Most businesses analyze
their current position by using SWOT analysis, which identifies the business's internal strengths and
weaknesses and the external threats and opportunities facing a business. Using SWOT analysis gives
many advantages to organisations.
According to Hall et al. (2000) business analysis is the examination of the 'how, what, why' of
business activity. It helps to organization to analysing the possible internal problems and advantages
that a business has. It might determine the factors external to the business that could affect its
strategy. The outcome of analysis should be to find the organisation's strengths and capabilities, its
commercial and operational advantages and the wider general pressures and constraints on the
business which is really useful for any business. Businesses have a number of methods to carry out
analysis. The main purpose of SWOT analysis is to conduct a general and quick examination of a
business's current position so that it can identify important points and helps organisations to get in
right directions in future. The analysis is often carried out as a brainstorming discussion. It is an
effective way of gathering and categorising information, illustrating particular matters and generating
interest in the business and its activities quickly. (Paul and Yeates 2006). Another benefit for SWOT

analysis is it often used as a method by which marketing departments can plan its marketing strategy.
It is easy way to understands your own mistakes and weaknesses in order to improve your
opportunities using your strengths. Using SWOT analysis would bring a huge success to any
business.

CASE 03 PDF
CASE 04
Q1 PDF
2 Suggest appropriate aims and objectives for a small, medium and large business.
Aim for a small business can "Survival", to survive in the market and look for profits.
Aim for a medium sized business would be to maximize their profits and growth to expand their
current business operations and increase market share.
Aims for Large business would be external growth,i.e taking over their competitors in the market.
Secondly it would be adding value and quality to their products, and finally providing service to
the community in some way, like giving funds to charities and opening up it's branches in
development area where development is required.