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Just as a healthy skin requires the proper pH balance to flourish, a strong brand like NIVEA requires a marketing plan that must find the right balance to built consistency all around the world. Beiersdorf the German manufacturer has mastered this balancing act with all the skill of an Olympic gymnast. This has made NIVEA the most recognised skin and beauty care brand in the world NIVEA crème was first introduced by Beiersdorf in the year 1911. Beiersdorf, founded in 1882, has grown to be a global company specialising in skin and beauty care for men and women. NIVEA, one of the oldest and biggest cosmetic brands in the world has successfully transformed itself from a single skin care brand to a trustworthy and contemporary personal care brand for all family types. The brand stretched itself by sub-branding to many new segments, always nursing the core mother brand NIVEA.
NIVEA brand has now extended to more than 15 products ranges extending from sun care to facial moisturisers, deodorants and shower products. Beiersdorf’s (BDF) Cosmic division decide to have an eye the NIVEA brand’s growth since last few years. NIVEA is the largest cosmetics brand in the world and it competes against the major brands from the European markets. South and Central America, Eastern Europe, and Asia were the new targets of company to expand the NIVEA brand. NIVEA had created a number of new sub-brands that broadened the company’s offerings. Sales in Beiersdorf’s cosmic division is primarily driven by NIVEA, grew from â‚¬1.4 billion in 1995 to â‚¬3.8 billion in 2005.Source – http://www.thetimes100.co.uk/
NIVEA is coming up with a new range of MEN care products NIVEA for MEN Q10 range. This report will start with a situational analysis and then will conclude with a marketing plan for NIVEA.
Macro environmental factors for NIVEA are analysed to carry out the situational analysis. The PESTEL factors are:
Foreign trade regulations and taxation policy
Privatization and the Security measures
For NIVEA and skin and beauty care industry the political factors can be:
NIVEA as a skin care industry manufacture must produce safe products that do not contain any harmful substance or are harmful for the consumers. For example SAFETY ASSESSMENTS-The manufacturer or supplier of the cosmetic product is responsible for ensuring it is safe and each cosmetic must be assessed for safety by a duly qualified safety assessor before it is made available to the public.(Ref 1)
Foreign Trade Policies and regulations over the imports/exports of products can act as a barrier for such companies. For example in countries like Iraq there may be high taxes on import of such goods or if the company plans to open a manufacturing unit in a country the political laws may not permit to do so
The political challenge is that NIVEA needs to follow the all the different government leadership styles in various countries where it performs its operations. As in some countries the availability of raw material or some drug content to be used in manufacturing may not be allowed to produce or import.
Unemployment and inflation
For NIVEA and skin and beauty care industry the economic factors can be:
Due to the volatile interest rates and the slump in the financial markets in 2007 most of the companies had to face financial crisis. NIVEA also had to make sure that these factors do not affect the sales and lead to crisis.
NIVEA has to abide by (The Control of Misleading Advertisements Regulations 1988) and follow the rules set by Advertising Standards Authority. Their adverts should be clear and not mislead the consumers.
The rise in the inflation rate resulted in a strong dip in the overall sales of the company.
The pressure on prices generated by increasing competition in the premium skin and beauty care market resulted in reduced prices and hence reduced profits. This was a major concern in the company and also the industry.
Lifestyle changes and Consumerism.
For NIVEA as skin and beauty care product manufacturer the social factors could be:
Consumers have become more cautious about their skin and the way they look. Men/Women both equally are paying more attention towards their looks and are keen to use the products that could help enhance their skins textures.
The income distribution plays a very vital role, NIVEA has tried to target consumers at all the different levels from 18-60.
Deodorants and other facial products are used by customers of 25-50 years of age irrespective of the gender.
Men use after shave and balms to have smooth shaves and looks. On the other hand women use facial creams to have soft skin and glowy looking skin.
Anti wrinkle and crème for aging skin is used to target customers between 40-60 and irrespective of the gender.
Different age groups use different products for their beauty and needs. NIVEA has targeted women from 13-19 with its NIVEA Visage, NIVEA for MEN exclusive men products like shaving gels, roll on, after shave balms etc. A large range of products is available for women from 25 – 45 years of age from NIVEA.
Speed of technology
Rates of obsolescence
Government and Industry focus on technological effort
For NIVEA as skin and beauty care product manufacturer the technological factors could be:
The rate at which the technological advancements take place, companies like NIVEA also has adapted quickly and improved its innovation by using better technologies and doing a lot more research.
It may be possible that due to environmental factors some changes may be done in technology to save environment. For example NIVEA continuously works with its Research and Development team to make products that more useful for consumers and least harmful for environment.
Technological advancements can help NIVEA to work with better manufacturing processes and units.
For NIVEA as skin and beauty care product manufacturer the environmental factors could be:
The ambitious Environmental Protection and Occupational Safety Management System at Beiersdorf’s Chilean Affiliate is being successfully adhered to in practice. This was the result of the review of the Modules I and II during the first ESMAS audit in May 2007.(Ref 3)
Many different Organisations for animals keep a track that in manufacturing of such products animal prosecution is not included or animals are not used for testing purposes. Some countries have even banned these methods and impose heavy dues on the companies who follow those practices. (PETA)
In the 2009 reporting year, the audit team witnessed first-hand the quality of the environmental and occupational safety measures in place at four Beiersdorf locations. During the multi-day Environmental Protection and Safety Management Audit Scheme (ESMAS) audits, the team inspected and certified Beiersdorf plants in Spain, Mexico, Thailand and Indonesia. The results were a success: all production sites were in full compliance with the international ISO 14001 (environmental safety) and OHSAS 18001 (occupational health and safety) standards for environmental and occupational safety management systems. (Ref 3)
Consumer Product Safety Act (1972)
Fair packaging and labelling act (1966)
Federal Trade Commission Act(1914)
Magnuson-Moss Warranty Act(1975)
For NIVEA as skin and beauty care product manufacturer the legal factors could be:
Legal factors may include government laws, labour laws that can affect an organization:
There are many laws that affect the trade practices that all the companies have to follow, NIVEA also follows all the legal issues that do not violate any act.
NIVEA’S CURRENT MARKETING STRATEGY
NIVEA FOR MEN promoted the new launches of its products through a mixture of above the line and below the line promotion. The use of sport was a key element here, NIVEA FOR MEN supported football events at a grass-roots level through its partnership with Power league to build positive relationship with men. This helped create strong Brand Affinity for NIVEA FOR MEN among men and drive the sales. Ref 4.
Above the line promotion included television and cinema adverts, this reached a wide audience. By using links with sport, NIVEA FOR MEN aimed to build a positive male image associated with male facial skin care.
NIVEA has a good reputation and brand name.
NIVEA is a Global Brand with ability to act local.
The Marketing staff with the skills to help promote the above mentioned products effectively.
Target customer and product range relevance was still not established.
The sales and marketing techniques used by NIVEA FOR MEN was not defined clearly.
NIVEA FOR MEN saw a rise in market share, hence an opportunity to increase the market share.
Product line can be extended to procure more market share.
New products could be introduced as men started buying more advanced products.
Women could be targeted as they but products for men.
Cost of products and sales promotions have become the drivers for sales.
Risk of competitors, since some of them have substitute products for support.
Improved R&D have increased the costs of the products.
Lack of innovative products for men.
MARKETIN PLAN FOR NEW NIVEA FOE MEN REVITALISING Q10 RANGE
NIVEA FOR MEN are coming up with NFM Revitalising Q10 Range, which would help them to increase UK male skincare market. In relation to the above, a marketing plan has been developed.
Setting clear objectives results in a successful marketing plan that must fit overall strategy of the company. In terms of NIVEA their goals were clearly defined as to continuously increase the market share in all areas through qualitative growth and to further improve our strong earnings situation. They also intend to achieve these objectives by continuing to successfully implement their “Passion for Success” Consumer Business Strategy.
To expand the current NIVEA FOR MEN
To sell more and more NFM products to women.
To create NFM brand image as a reliable, user-friendly and good value for money product and to strengthen the brand value.
To create oneness in the brand.
Focus on product development combined with an emphasis on consumer needs is a key differentiator for NIVEA FOR MEN.
Strategy would emphasis on promotion of NFM products using the right marketing mix.
Choice of Markets: To grow its market share and develop its product range NIVEA has chosen product development as the growth strategy. NIVEA’s researches have shown that men mainly wanted skincare products that protected the face after shave. Men are willing to buy products that helped calm and soothe irritated skin caused by shaving.
So this is how NIVEA came up with idea to target MEN and develop products that could fulfil the needs of men all over the world.
Sales of male skincare products have grown steadily since the launch for NIVEA for Men in 1998 and 2003. The market in 2008 was worth over 117 million pounds with male facial products worth 49 million pounds.
Segmentation: Nivea for Men has segmented its customers on the basis of age, gender and occupation.
Gender – NIVEA for Men as the name suggests is an exclusive product for men. The range contains all the male products like face wash, deodorants and roll-on, shaving gel, after shave balm, moisturiser, and shower gel.
Age – NIVEA for MEN the new range should be targeted for men from 18- 25, 25-35 and 35 – 55.
Income- All NIVEA for Men products are not very highly priced, keeping in mind the target customers. But some rechargeable shavers are in the premium segment for NIVEA which is targeted on 25-40, young working professionals.
Generally NIVEA has targeted customers who are working professional and they need to socialize in everyday life for their business and they need these products everyday. Shaving gels, post shave balm, roll-ons and moisturisers.
On the basis of segmentation we will target the current customers of NIVEA for Men those who have been using NIVEA products already.
Secondly we will also try to capture new customers who are using the substitute products on the basis of value of NIVEA for Men products and effective prices.
Brand Positioning : The NIVEA for MEN Revitalising Q10 range is for the skin care to look bright , healthy and revitalised. With competitive pricing as compared to the competitors NIVEA for MEN can create a unique position in market. The formula for Q10 range is unique which contains no alcoholic content which gives it an edge over the similar products from competitors in the market.
So NIVEA for MEN can position itself as the only for men exclusive range with reasonable price adding value to customer both in terms of quality and money.
THE MARKETING MIX
The right combination of marketing mix that is Product, Price, Place and Promotion can provide a brand the right strategy to target its customer. Let us define the marketing mix for the new NIVEA for MEN Revitalising Q10 range. The NIVEA for Men is in the launch phase of the Product Life Cycle so the product boundaries and features must have a clear definition.
Product – Customer Solution: The company has made the new NIVEA for Men range more effective and consumer-friendly.
Research Work: To know what its customer wants NIVEA conducts researches through:
Focus groups to listen to customer directly.
Product testing with customers in different markets.
Through their website a special section “WHAT MEN WANT”.
Variety: NIVEA for Men has come up with the fuller range of products for men keeping in mind that what men want. It has NIVEA for Men eye roll-on, face wash, post shave balm, shaving gel and moisturiser.
Quality: NIVEA for Men has come with a product range that provides unique quality of Q10 revitalising coenzyme that is very essential for skin. This provides NIVEA with a competitive advantage to beat the competition.
Packaging: For Packaging NIVEA for Men can go for large packs which use minimum of plastic and that too recyclable. The packaging must include
The packaging includes:
The Company Address
NIVEA has clearly understood the needs and wants of its male customers, there problems and so have come up with a complete solution to customers’ needs with the new NIVEA for Men Q10 Revitalising range of products.
Place – Convenience: For customer’s convenience it is important that the product is in range of customers that is easily approachable. Keeping in mind the target customers NIVEA for Men must aim to use as many as relevant distribution channels.
Using distribution channels as B2B strategy so that the product reaches the point of sale.
Main sales can be retained through large retail store and chains. Already NIVEA has different sources of sale for B2C like Boots, Tesco, Sainsbury’s, Superdrug, Waitrose, ASDA, Wilkinson, Morrison’s, Body Care, and Savers.(Ref 7)
Making availability of NIVEA for Men products at wide range of stores ensures the customer reach to these products hence customer convenience.
NIVEA products are also available on AMAZON.co.uk so even more customers can be targeted through e-marketing and e-sales.
Price – Customer Cost : there are many factors like cost of production and transportation that affect how the product is finally priced in the market. As the product is for consumers so it must provide the right value for money to the customers in the market and attract them to buy these products.
For NIVEA for Men in the launch phase NIVEA should follow the Market Penetration Pricing. The price of NIVEA for Men products would be low initially to attract maximum customers and capture a large market share.
NIVEA for Men can also price its range on competitive base. As competition there are substitutes but are priced highly in the market so a lower price would help NIVEA for Men to gain competitive advantage over its competitors.
Promotion – Communication: With promotion we can tell are customers that what we have for them and persuade them to buy those products. For promotion NIVEA for Men can implement two types of promotions.
Direct Promotion – With the direct promotion that are directly paid NFM can go for TV Advertisements, Newspaper Advertisements.
Indirect Promotion – NFM can organise events for B2C and trade fairs for B2B customers.
With Public Relation NFM can go for Press Releases where NFM can target large audience.
Sponsoring some events like sports, for example NFM can join the LONDON Olympics 2012 specifically targeting the male Olympic Games.
NIVEA can come up promotional campaigns with mobile services company to send promotional texts to all their customers.
Distribution of free samples at beginning stage of product launch.
Association of the brand with social site like facebook and twitter.
Implementation of the Marketing Plan
This is the most important phase of a marketing plan. A marketing plan has a defined time so for the above plan we can recommend a time of 1 to 3 years which will include all the research work and later implementation. So the implementation would start with:
Research Work: Primary Research from Surveys, Questionnaire and Focus Groups that will provide us with Qualitative data.
Secondary Research from the existing data of company; the sale over the year and other promotional expenses.
Financial Statements providing the budget for further market research and marketing plan.
Forecasting the sales and the cost associated with it.
We need to keep in mind the challenges we can face during the implementation of Marketing Plan.
Customers may start avoiding the product in case of excessive promotion.
Customers may perceive NIVEA for Men as a poor quality product as initial prices will be low due to the launch.
Competitors may come up with similar range and price.
In order to properly control our marketing plan we should:
Regularly monitor the progress. Is the plan working or not.
Monitor the sales , revenue generated, Return on our investments, customer satisfaction levels through researches and repeat purchases.
Employees must be rewarded for achieved objectives.
Employees are the main working force behind the plan so employee satisfaction with appraisals and rewards must be done.
Market and customer choices changes every minute so regular market researches would help NIVEA for Men to rate their product in market.
Any plan needs time to succeed; short term failure should not be taken as the final result.
The success of marketing plan depends upon company , people and a smoothened blend between both to achieve the targets. Knowledge of targets and strive to achieve them creates endless possibilities of success.
Sample Advertisement- Ref -8 http://www.youtube.com/watch?v=Kq70_xdZBxw
The main focus during the launch of the new NIVEA for men would be the mindset of the main target market. An efficient promotional activity along with sales promotion would be used for the launch. This will help to increase the market share and also would affect the overall sales of the NIVEA and the NIVEA FOR MEN range of products.
NIVEA has realised that skin care and beauty products that were associated with women, is a thing of past. In today’s world even men have started using these products and there is a major gap in the industry for men products. Hence NIVEA has come up with a all new men’s range and get the maximum share in the market.
Efficient advertisement in all the mediums will be used and so that will help further boost sales and increase the performance and quality perception in the minds of customers which will help also in the positioning product in the marketplace.
Today’s world is a digital world where a small number people can become voice of thousands and millions. So is the dynamic nature of marketing which has changed its face with changing global business environment. No more are the traditional methods of marketing followed. Marketing is totally customer centric where the aim is to get as close as to the customer.
Companies have not limited themselves to a single state, country or a single continent. The greed for progress has made the companies go global. So has the marketing environment and need to market has changed as per the demand and change in customers who are spreaded globally. Companies change their strategies as per the country they are doing business in. For example Mc Donald does not provide beef or ham burgers in INDIA as it is against the choice of the customers.
Keeping in mind the customer’s requirement the apt marketing plan is made. The plan whose outcome matches with what the customer’s desire.
NIVEA as a company provides its customers with Innovative Skin and Beauty care. NIVEA has emerged as the most recognised skin and beauty care brands in the world. Keeping in mind what its customers want NIVEA does regular research work to provide the right value added product to its customers well then let it be NIVEA female range, NIVEA Visage or NIVEA for Men.
Extensive Research and Development, wide range of products, top quality and environment friendly procedure and need satisfying products; these all act as a resource and capabilities of the organization which offers value to its customers.
It’s been an experience to develop a marketing plan for a company. With the development of the marketing plan I have come across the fact that marketing is a critical part of a business plan.
Knowledge Gained – With this assignment I have learned the minute details of marketing.
Customers are the drivers of the market.
How is a customer convinced to buy a product ?
The use of different models to enhance the sales and give value to the product.
VALUE TO CUSTOMERS
Today most of the companies are dropping their brand value dramatically as they are moving away from satisfaction of customer needs and wants. The customers want best value for money and want to be loyal to their brands in this tough economic era. Nivea is continuously trying hard to adapt itself to customers need and offer value to them. They are doing so by launching new range of products and re-launching the existing ones. They are strategising themselves by reaching directly to customers and getting them to test new and improved products. They are focussing on the customers and are trying to create tangible human experiences across all marketing touch points. Their strategy states:
Be honest about who you are and where you sit on the customer-focus spectrum
Listen to your customers-“what is good for your customers” and if you are not valuing them what are you loosing.
In this tough economic climate, resonate your customers and offer relevant value proposition.
Hero your products in order to build ongoing relevance and value with the customers.
Evaluate, Innovate, Listen and Communicate.
The company focuses on the fact that they want their customers to be more of something that could play a role in the consumer’s life than selling a cure for a problem. They want their product to be an integral part of customer’s day to day life. They value their customer’s because they believe that the customer’s warm feeling towards the brand might turn into higher sales down the line. Providing value to customers is like putting money in the bank, this helps in repeat purchases, customer retention and positive word of mouth which ultimately leads to new customer acquisition. This helps the firm to secure their future in the market.
The companies today are adding value to their customers because of the fact that Marketing strategies have changed. Today the focus point is the customer. The difference in today’s marketing strategy and old marketing strategy has been stated below.
SHORT TERM FOCUS.
PRICE AND QUALITY SENSITIVE CUSTOMERS.
ALL CUSTOMERS EQUAL.
LONG TERM FOCUS.
VALUE CONSCIOUS CUSTOMERS.
ALL CUSTOMERS NOT EQUAL.
CUSTOMER LIFETIME VALUE.
Value to customers lead to creating value for products and services. Nivea recognizes the role of its customers in developing its strategy. They believe that working on customer’s insight has led them to explore themselves beyond their existing comfort zone.
It is said that “the more detailed information that has been collected and the more planning that has been done ahead of time, the faster and the more pleasant the trip.” This works well for launch of any product by any company. One of the most fundamental features of any successful Business is creation and implementation of its business plan. We being the future entrepreneurs of tomorrow should have complete knowledge of the “Start-Up” Plans of any business and it was through this module that I learned about writing a Marketing Plan for any product in any business environment. The Marketing Management Module helped me learn ways to write a plan which should be both analytic and fundamental. It made me learn that the Business Plans requires a degree of expertise in Marketing Principles and Forecasting as well as the ability to gather and interpret relevant research data and formatting it the right way. Initially we just had theoretical knowledge about business plans but this module helped us think virtually and bring our knowledge into practical sense. Both module and the assignment proved to be very productive and helped me learn the essentials of a marketing plan. It helped me in bringing out the best through extensive research and exploring the data. A Marketing plan is the base of any business enterprise. Whether it is about launching a new product in the market or expansion of market of an existing product.
A number of steps are involved in writing a Marketing Plan which should necessarily define the target market and should understand its needs as well. While doing this assignment on Nivea I conducted a clear and succinctive market research. I worked well on the collection of data and researched in depth on the techniques of writing a Marketing Plan which were taught to us in the Marketing Management Module. Today I have realised the fact that writing a Marketing Plan is a challenging job but taking up this one was worth the effort. This was the learning experience of a lifetime.
A Marketing Plan runs the gamut from being creative to being pragmatic, but it should be written in a style which will be most receptive for evaluation. I managed to do the same by following all the steps involved in writing a Marketing Plan. Marketing Plan has the following elements which involve Executive Summary, Situation Analysis, Marketing Objectives, Target Markets, Marketing Mix, Marketing Budget and the implementation of the Plan as a whole. The first and the foremost step was introducing my parent company which is Nivea. The introduction defines as to what the company is and where will its product stand in the market. Next was Strategic Analysis of the company which was done using PESTEL analysis and SWOT analysis. SWOT made me understand the Strengths, the Weaknesses, the Opportunities which the company can make use of and the Threats which the company might face in the long run. The PESTEL made me realise the factors which affect the company in its establishment and the working. All these factors are very essential to keep in mind at the initial stages of the launch as ignorance of any of these might result in a number of pitfalls. The next step involved defining the Marketing Objectives of the new product which is to be launched. The marketing strategy helped me define why and how the plan would work in relation to all the factors influencing the business entity. I emphasised upon Product development of the new range and the Marketing Mix it would follow. This involved taking into account the companies resources, finances and controls. I tried not deviating myself from the path by keeping regular reality checks. These reality checks are very important at the time of making the Marketing Plans as this would help the firm overcome any pitfalls at the time of execution of the Marketing Plan.
The last step was the implementation of the Marketing Plan in which I was sure as to what I was actually trying to achieve for my new series. I kept my central aim visible in order to minimise all the distractions and distortions which would frequently arise. Keeping the aim right is the key to success in the implementation of the Marketing Plan. To conclude I can say that I tried bringing together the Uniqueness and the Passion. Uniqueness so that people get what I want to offer them and Passion to enjoy selling what I want to sell. The Marketing Plan for this product would come into action soon and would help the product attain a good market position in the long run. This would surely help the product attract new customers and create wider market for the product. The brand name NIVEA would also be benefited by the launch of this product as this would add to its goodwill. I would conclude by saying that this assignment required a lot of effort but the effort proved to be fruitful.
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