Nivea External Analysis

Topics: Economics, United Arab Emirates, Law Pages: 2 (441 words) Published: January 28, 2009
Situational Anaylsis:

External Environment:pestal trend, 5 forces.


Political and legal analysis:
The Nivea brand and its product FaceWipes will not face any major political or legal issue as such. We hope to sell the product in accordance and conformance to the UAE laws. All prohibitive ingredients will not be utilized in preparing the product. Other than that the cosmetics industry is not subject to a lot no political constraints and legal regulations.

Economic Factors:
Even though FaceWipes provides cleaning of facial oil at convenience, with the current global economic crisis, consumers might be unwilling to pay for expensive wipes. With Nivea being a premium brand, consumers might opt to purchase a substitute product which might be of lower quality and price.

It is widely known that product categories that are weaker on the technology dimension are particularly vulnerable to competition from both new products and foreign competition. On the contrary, FaceWipes strength lies in its superior product quality, design and innovation. Nivea scientists have successfully combined skincare ingredients with its unique tissue to come up with this product. Further more to optimize design and performance, Nivea labs have conducted extensive studies to understand the consumers, both male and females in terms of how they use tissues on wipe facial oil, how wipes perform under different conditions.

One of the most apparent demographic trend in UAE is the high rate of young people in coming in who are mostly aged between 20-35. They are conscious about how they look and want to use the latest skin products. This creats a huge potential to exploit this opportunity. Keeping in mind the hot weather during the days, especially in the summers,FaceWipes has been introduced for the UAE to cater to the need for convenience and care while cleaning the face off oil remains of paramount importance.

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