Cross Cultural issues

faced by
“Nivea for Men”
In Indian market

Guided By:
Prof. R. M. Joshi

Submitted By:
Parag Raut
Roll No. 86
Background:
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 snow-
white).

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 high-
quality cosmetic products.
Introduction:
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 culture-

bound. 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
➢ Earlier men were using
Men spend an average of 51 minutes each day to
grooming products meant
groom themselves, compared to 55 minutes for for women.
women. With lots of job opportunities at lesser
age and good amount of disposable income men’s ➢ Men’s spend 51 minutes
each day to groom
are spending freely on grooming products. In this themselves (Women
modern era men’s no more feel shy of visiting spends 55 minutes)
parlour on regular basis and spending freely on
➢ High disposable income
the grooming products, which was not the case a
with the younger
decade back. Earlier men were using the generation
grooming products which were specifically meant
for the women’s which was revealed by a survey ➢ Men’s no more feel shy of
visiting parlour on regular
conducted. But now with the availability of men’s basis
grooming products, the men are offered wide
range of products. Thus they are choosing the ➢ Price plays a major role in
choosing a grooming
products according to their choice, suitability,
product
usage quantity, purpose.

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 (2009-

2012)”, 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 anti-
ageing 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 sub-
sectors 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 high-
end 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.

Eastern promise
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 fast-
developing 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.

Market Size:
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, anti-
friction 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
AFTER SHAVE :
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
DEODORANT PRODUCTS:
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

HAIR CARE:
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
SKIN CARE :
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 CARE :
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 higher-
end 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 high-
end 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 cross-
cultural 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.

Conclusion:
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.
Annexure:
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)
(In Rs.)

States/UTs 2004-05 2005-06 2006-07 2007-08 2008-09

Andhra Pradesh 23925 26662 30439 35600 40902

Goa 66135 78612 87501 105582 NA
Gujarat 28846 34264 39459 45773 NA
Haryana 37681 41857 50611 59008 68914
Karanataka 24707 28787 31713 36266 40998
Kerala 29071 33044 37947 43104 49316
Maharashtra 32376 36048 41144 47051 NA
Panjab 32970 36277 39874 46686 52879
Rajasthan 16874 18008 21203 23986 27001
Tamil Nadu 27512 31663 37190 40757 45058
Chandigarh 79562 88456 100146 110728 119240
Delhi 54505 60951 70238 78690 NA
Pondicherry 43303 52408 71719 78302 84625
All - India Per 23198 26003 29524 33283 37490
Capita NNP

Demographics:
Population projection:
Year Under 15 15-64 65+ Total

2000 361 604 45 1010

2005 368 673 51 1093
2010 370 747 58 1175
2015 372 819 65 1256
2020 373 882 76 1331
(In millions)

Biblography:
1) www.wikipedia.org

2) www.niveaformen.co

3) www.beiersdorf.com

4) www.indiastat.com

5) www.economicstimes.com

6) www.businessstandard.com