Questions
Nivea Sun Protection Products: A Case Study in Market Segmentation A careful market segmentation is critical...

Nivea Sun Protection Products: A Case Study in Market Segmentation

A careful market segmentation is critical to successfully selling products; you need to understand what makes different consumers tick and how best to reach them. Skincare giant Nivea conducted an impressive market research campaign that can be modeled by other firms.

First, a little background: Beiersdorf is an international skincare company with leading brands such as Nivea and Eucerin. They have expanded significantly in the UK market through effective segmentation that matches consumer needs. The company has become the value leader in the field, meaning people spend more on Nivea sun protection products than any other brand.

One important product line for Nivea is sun-related skincare products, worth upwards of £173.6 million in the United Kingdom alone. Nivea’s reputation in this broad segment is bolstered by robust scientific research and development focused on providing the best protection possible from the sun’s skin-damaging rays.

The key was to further segment the sun protection products market by two important factors: Skin type and the climate where the products are used. Skin types include very light, fair, normal, dark and children (who tend to have thinner, lesser developed skin) while the climates include moderate, hot and very hot. The level of protection is measured by SPF, which stands for Sun Protection Factor. The lighter the skin and the higher the temperature, the higher the SPF that is needed. SPF 20 may be adequate protection for a fair-skinned person in the UK, but SPF 40 might be recommended for the same person if they were in a more tropical environment.

The company’s market research revealed significant demographic differences between men (who go for convenience), women (who gravitate towards more luxurious products) and children (a market reached through adult parents, mostly mothers). Through the use of surveys and focus groups, Nivea was able to determine the attitudinal differences between distinct segments of consumers.

They discovered concerned consumers who were not at all concerned about getting a tan but instead were more focused on protection from sun damage. Sun avoiders don’t buy these products at all because they avoid high-exposure situations, although with education they may be convinced of the need for sun protection product purchases. Conscientious sun lovers love being out in the sun but are concerned about protection. Careless tanners, on the other hand, don’t worry about the sun at all and buy low-SPF products if they buy any at all. Finally, the naïve beauty conscious people are the ones who want to have a good tan but don’t adequately understand the relation between SPF and protection.

Nivea used this research to develop their unique brand positioning that includes making sun care as simple as possible, providing education about the importance of protection and finding ways to reinforce that protection message. One product innovation that came from this research was a product that offered full and instant protection from both UVA and UVB sunrays because many consumers fail to apply such products in the necessary time frame for effectiveness (20-30 minutes before exposure). Other product innovations have included sprays that are easy to apply, colorful products for children and water-resistant products for both children and adults. Advertising for children’s products targets the mothers of children with a protection message.

Through targeted research, Nivea develop an understanding of customer segments that takes buying habits and motivations into account. Using this segmentation, product development and messaging both become more effective and sales and revenue increase.

Questions:

  1. What are the different market segments identified in this case Study? Explain in detail with the help of the content given in the case. (You are supposed to find all the segments)
  2. What are the techniques Nivea company has adopted for collecting customer information?
  3. How Nivea company is improving its brand positioning through the information they get from customer research?

In: Operations Management

Suppose that you are invested in a software development firm that designs automotive radar software for...

Suppose that you are invested in a software development firm that designs automotive radar software for robotics systems in cars. Your offices and most of the key employees who helped to start the company are in Tampa, but given expansion plans, your current location is no longer sufficient, and you need to decide on a location for your new headquarters. Now, your business is faced with a difficult decision: where do you locate your new headquarters?

Option 1: Lansing, Michigan You could move to Lansing, Michigan to be closer to the demand for your product for such as the Ford assembly plants in Dearborn, Flat Rock, and Wayne, Michigan, and the General Motors assembly plants in Detroit, Flint, and Lansing, Michigan.

Option 2: San Jose, California You could move to San Jose, California to be closer to other technology companies in the Silicon Valley area and benefit from agglomeration economies. Additionally, you would be closer venture capital in nearby San Francisco which may be necessary to fund your expansion.

Option 3: Tampa, Florida You can stay in Tampa where your key employees will most likely be happiest. Although Tampa does not offer the comparative advantages of demand conditions, agglomeration economies, or the factor condition of capital, it does have a relatively good quality of life, and is home to your current employees.

Which option is the best fit for the business and what factors would be most important in making the decision? Specifically comment on the comparative advantages that the location you chose has to offer.

Explain Why?

In: Operations Management

When you have the total cost (TC) curve and the total revenue (TR) curve of a...

When you have the total cost (TC) curve and the total revenue (TR) curve of a company, think about a situation with a single break-even point an another situation with two break-

even points and clearly explain what cause the difference is.

Think about a linear programming model with multiple optimal solutions and clearly explain what cause this to happen? A graph cannot be your explanantion.

In: Operations Management

1. How has NAFTA impacted the U.S.? Overall, do you believe that it was a positive...

1. How has NAFTA impacted the U.S.? Overall, do you believe that it was a positive move for the U.S.? Why or why not?

In: Operations Management

In the selection process, a right-holder can apply three different ways to select an organizer: please...

In the selection process, a right-holder can apply three different ways to select an organizer: please list and briefly explain them.

In: Operations Management

The owner of a greenhouse and nursery is considering whether to acquire additional land to grow...

The owner of a greenhouse and nursery is considering whether to acquire additional land to grow a new variety of rosebush. She can either acquire a small garden at $7000 and can produce up to 4,000 rosebushes or a large garden at $10,000 and can produce up to 8,000 rosebushes. The owner could sell each rosebush for $5, and per-unit variable cost would be $3.

a) What would the profit be if she were to produce and sell 6,000 rosebushes?

b) How many rosebushes would she have to produce and sell in order to break even with a large garden?

c) The owner forecasted the demand between 3600 and 4800 rosebushes. Which alternative(s) is/are profitable?

In: Operations Management

2. A. An infeasible linear programming model is caused by the (a) objective function (b) constraints...

2.

A. An infeasible linear programming model is caused by the

(a) objective function (b) constraints (c) Both (a) and (b) (d) None of the above

(b) Which of the following nations is least active in entrepreneurial activities?

                        (a) China (b) Japan (c) Thailand (d) Canada

c. Name two reasons and clearly explain how they have contributed to the huge number of  

small businesses in the United States:

In: Operations Management

8 hour shift                                         &

8 hour shift                        

                               

Stage A 20 cars per hour               Initial set up time of 20 minute when changing the car model or size

Stage B 20 cars per hour               Must be shut down for maintenance and cleaning for 30 minute after every 90 minute of operation

Stage C 18 cars per hour               More customization, but no setups

                               

                               

PART A Single car model              

                Stage A is already set up               

                How many cars can be produced by the system in an 8-hour shift?           

                How much idle time is there in this stage during such a shift?      

                Which stage will you add capacity to? And by how much? Why?

In: Operations Management

21. The James Charities annual fund-raising drive is scheduled to take place next week. Donations are...

21. The James Charities annual fund-raising drive is scheduled to take place next week. Donations are collected during the day and night, by telephone, and through personal contact. The average donation resulting from each type of contact is as follows:

Phone

Personal

Day

$2

$4

Night

$3

$7

The charity group has donated enough gasoline and cars to make at most 300 personal contacts during one day and night combined. The volunteer minutes required to conduct each type of interview are as follows:

Phone (min)

Personal (min)

Day

6

15

Night

5

12

The charity has 20 volunteer hours available each day and 40 volunteer hours available each night. The chairperson of the fund-raising wants to know how many different types of contacts to schedule in a 24-hour period (i.e. 1 day and 1 night) to maximize total donations.

Formulate the linear programming model for this problem first and then solve it using Excel.

In: Operations Management

I want to write an executive summary of this whole report and list of illustrations for...

I want to write an executive summary of this whole report and list of illustrations for COMMUNICATION MANAGEMENT.

"Regina man ordered by SGI to turn in 'MAGAUSA' licence plate"

Rod Kletchko believes surrendering his “MAGAUSA” vanity plate to Saskatchewan Government Insurance (SGI) would be the equivalent of selling his soul for 30 pieces of silver.

The plate, which is a reference to President Donald Trump’s “Make America Great Again” campaign slogan, was approved by SGI and put on Kletchko’s Mercedes SL550 in May.

Regina man ordered by SGI to turn in 'MAGAUSA' licence plate

Last Thursday, Kletchko said he was told by SGI that the plate was no longer approved. He has 30 days to turn the plate in or it will be cancelled. According to the Crown, plates with political slogans are off limits. SGI has offered to refund the cost of the plate and cover the price of a new one.

Kletchko is conflicted. As a supporter of Trump and a proponent of freedom of self-expression, the thought of giving the plate up doesn’t sit well.

“I feel that my integrity is at stake here. So if I capitulate, how good is that for me when I tell everybody to fight for the right of free speech?,” said Kletchko, who operates a point-of-sale equipment and supplies business.

According to SGI, Kletchko should never have been issued the plate in the first place. The Crown does not permit vanity plates with slogans that have political connotations, derogatory terms or references to drug use. SGI plates are the property of the Crown, and are not meant to be political in nature.

“It’s important to us that we stay politically neutral, understanding that politics of any sort can be quite divisive in the community. So our objective is to maintain neutrality,” said SGI’s VP of Licensing, Customer and Vehicle Services J.P. Cullen during a phone interview.

Cullen said SGI became aware of the plate after getting three or four complaints. He said Kletchko’s plate was approved “in error.”

“We recognize the inconvenience that we’ve caused this gentleman,” he said.

Kletchko said getting the plate was a nod to the friendly banter between him and his real estate agent, who despises Trump and jokingly refers to Kletchko by the nickname “MAGA.”

Kletchko has a different view of the president.

“Anyone who does their research would know the guy’s not an evil guy. He’s villified,” said Kletchko, who was born in Regina but briefly lived in Dayton, Ohio during his childhood.

A Mercedes-Benz, belonging to Rod Kletchko, wears a Saskatchewan license plate bearing the letters MAGAUSA. BRANDON HARDER/Regina Leader-Post

Although he isn’t an American, Keltchko has an affinity for American values and the concept of freedom of speech.

He said he’s never been confronted or experienced any hostility over the plate. He’s baffled by why someone would be so offended that they would contact SGI.

“Are we not supposed to be an open society with freedom of expression and free speech? And now I have to sell my soul, my integrity, for 30 pieces of silver.”

Kletchko understands the plate is the property of the government. However, he doesn’t agree with the policy of not permitting political slogans.

“Anything could be a political slogan. I mean, if you assume that a licence plate means something because you choose to assume that, that’s up to you. I mean, if you choose to be offended, I’m offended that you’re choosing to be offended,” he said.

Cullen said Kletchko has the right to express himself; he just can’t do it through a government-issued licence plate.

“He can use a bumper sticker, he can shrink-wrap his car, he can do all sorts of things. But the fact remains that the licence plate is Crown property, and we don’t allow political slogans on that property,” said Cullen.

Kletchko has yet to decide if he’ll turn the plate in.

“I’m going to think about it. I’m going to see what I should do and what I shouldn’t do. But in giving the plate back for 30 pieces of silver, that goes against every bit of freedom of choice and freedom of speech that I hold dear.”

I am writing a report for SGI so i need to write summery and illustrations.

In: Operations Management

Consider the following history of supply and demand transactions for a particular part: Month Number of...

  1. Consider the following history of supply and demand transactions for a particular part:

Month

Number of items Received

Demand during Month

January

50

220

February

180

200

March

150

70

The starting inventory at the beginning of January is 100 units.

  1. Assuming excess demand is back-ordered, what is the number of back-orders in March?

Answer:

  1. (Assuming excess demand is lost, what is the number of lost sales in March?

Answer:

(show your calculations)

  1. Assuming excess demand is lost, what is the closing inventory at the end of March?

Answer:

In: Operations Management

Managing Diversity for Success: The Case of IBM When you are a company that operates in...

Managing Diversity for Success: The Case of IBM When you are a company that operates in over 170 countries with a workforce of over 398,000 employees, understanding and managing diversity effectively is not optional—it is a key business priority. A company that employs individuals and sells products worldwide needs to understand the diverse groups of people that make up the world. Starting from its early history in the United States, IBM Corporation (NYSE: IBM) has been a pioneer in valuing and appreciating its diverse workforce. In 1935, almost 30 years before the Equal Pay Act guaranteed pay equality between the sexes, then IBM president Thomas Watson promised women equal pay for equal work. In 1943, the company had its first female vice president. Again, 30 years before the Family and Medical Leave Act (FMLA) granted women unpaid leave for the birth of a child, IBM offered the same benefit to female employees, extending it to one year in the 1960s and to three years in 1988. In fact, the company ranks in the top 100 on Working Mother magazine’s “100 Best Companies” list and has been on the list every year since its inception in 1986. It was awarded the honor of number 1 for multicultural working women by the same magazine in 2009. IBM has always been a leader in diversity management. Yet, the way diversity was managed was primarily to ignore differences and provide equal employment opportunities. This changed when Louis Gerstner became CEO in 1993. Gerstner was surprised at the low level of diversity in the senior ranks of the company. For all the effort being made to promote diversity, the company still had what he perceived a masculine culture. In 1995, he created eight diversity task forces around demographic groups such as women and men, as well as Asians, African Americans, LGBT (lesbian, gay, bisexual, and transgender) individuals, Hispanics, Native Americans, and employees with disabilities. These task forces consisted of senior-level, well- respected executives and higher-level managers, and members were charged with gaining an understanding of how to make each constituency feel more welcome and at home at IBM. Each task force conducted a series of meetings and surveyed thousands of employees to arrive at the key factors concerning each particular group. For example, the presence of a male-dominated culture, lack of networking opportunities, and work-life management challenges topped the list of concerns for women. Asian employees were most concerned about stereotyping, lack of networking, and limited employment development plans. African American employee concerns included retention, lack of networking, and limited training opportunities. Armed with a list of priorities, the company launched a number of key programs and initiatives to address these issues. As an example, employees looking for a mentor could use the company’s Web site to locate one willing to provide guidance and advice. What is probably most unique about this approach is that the company acted on each concern whether it was based on reality or perception. They realized that some women were concerned that they would have to give up leading a balanced life if they wanted to be promoted to higher management, whereas 70% of the women in higher levels actually had children, indicating that perceptual barriers can also act as a barrier to employee aspirations. IBM management chose to deal with this particular issue by communicating better with employees as well as through enhancing their networking program. The company excels in its recruiting efforts to increase the diversity of its pool of candidates. One of the biggest hurdles facing diversity at IBM is the limited minority representation in fields such as computer sciences and engineering. For example, only 4% of students graduating with a degree in computer sciences are Hispanic. To tackle this issue, IBM partners with colleges to increase recruitment of Hispanics to these programs. In a program named EXITE (Exploring Interest in Technology and Engineering), they bring middle school female students together for a weeklong program where they learn math and science in a fun atmosphere from IBM’s female engineers. To date, over 3,000 girls have gone through this program. What was the result of all these programs? IBM tracks results through global surveys around the world and identifies which programs have been successful and which issues no longer are viewed as problems. These programs were instrumental in more than tripling the number of female executives worldwide as well as doubling the number of minority executives. The number of LBGT executives increased sevenfold, and executives with disabilities tripled. With growing emerging markets and women and minorities representing a $1.3 trillion market, IBM’s culture of respecting and appreciating diversity is likely to be a source of competitive advantage.

DISCUSSION QUESTIONS

1. IBM has been championed for its early implementation of equality among its workforce. At the time, many of these policies seemed radical. To IBM’s credit, the movement toward equality worked out exceptionally well for them. Have you experienced policy changes that might seem radical? Have these policies worked out? What policies do you feel are still lacking in the workforce?

2. If you or your spouse is currently employed, how difficult would it be to take time off for having a child?

3. Some individuals feel that so much focus is put on making the workplace better for underrepresented groups that the majority of the workforce becomes neglected. Do you feel this was the case at IBM? Why or why not? How can a company ensure that no employee is neglected, regardless of demographic group?

4. What types of competitive advantages could IBM have gained from having such a diverse workforce?

In: Operations Management

A New York company is planning to decide about advertisements. He invites executives from a local...

A New York company is planning to decide about advertisements. He invites executives from a local newspaper, a local TV station, and a local radio station to make a presentation.

The newspaper executive claims to be able to provide an audience of 10,000 customers at a cost of $4,000 per ad. The breakdown of audience:

Male

Female

Young

2000

1000

Senior

4000

3000

The executive from the local TV station claims to provide an audience of 25,000 customers at a cost of $15,000. The breakdown of audience:

Male

Female

Young

5000

10000

Senior

5000

5000

The executive from the local radio station claims to provide an audience of 15,000 customers at a cost of $6,000. The breakdown of audience:

Male

Female

Young

4500

7500

Senior

1500

1500

The company has the following policy:
            a. Use at least twice as many radio commercial as newspaper ads
            b. Reach at least 100,000 customers
            c. Reach at least twice as many young people as senior citizens
            d. Make sure that at least 30% of the audience is female.

Available space limits the number of newspaper ads to seven. The company wants to know the optimal number of each type of advertising to purchase to minimize the total cost.

a. Formulate a linear programming model first and then solve this using Excel.

b. Suppose another local radio station approaches and indicates that its commercial can reach 18,000 customers at a cost of $7,500 with a demographic breakdown:


Male

Female

Young

4000

8000

Senior

2400

3600

If the company considered this station along with other media alternatives, how would this affect the solution?

In: Operations Management

Micromedia offers computer training seminars on a variety of topics. In the seminars each student works...

Micromedia offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micromedia is currently planning a two-day seminar on the use of Microsoft Excel in statistical analysis. The projected fee for the seminar is $600 per student. The cost for the conference room, instructor compensation, lab assistants, and promotion is $9600. Micromedia rents computers for its seminars at a cost of $60 per computer per day.

a) Develop a model for the total cost to put on the seminar. Let ? represent the number of students who enroll in the seminar.

b) Develop a model for the total profit if ? students enroll in the seminar.

c) Micromedia has forecasted an enrollment of 30 students for the seminar. How much profit will be earned if its forecast is accurate?

d) Compute the breakeven point.

In: Operations Management

Discuss how equal employment opportunity (EEO) influences HR decision making as it relates to compensation.

Discuss how equal employment opportunity (EEO) influences HR decision making as it relates to compensation.

In: Operations Management