Nov 14, 2020 in Analysis

The Analysis
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Abstract

This course of study tries to examine the way NIVEA made a re-launch of NIVEA FOR MEN in 2008. This marked a part of the holistic plan for development of the range in the United Kingdom. The study shows the way the company came up with an effective marketing plan. The paper highlights various marketing activities that were carried out to achieve the companys objectives. The paper goes further to focus on how the company responded when there was a change in consumer expectation. External influences of the enterprise have also been discussed. In order for the profit to be realized, there must exist an interaction between the parties. It is also of great importance to note that a particular commodity or a service may have a large number of manufactures. This implies that there exist a huge number of similar goods and services in the market. These goods may be branded differently, but they satisfy a similar need. This situation usually necessitates applying effort and strategies to make the commodity stand tall. This is known as marketing.

 

The Analysis

Introduction

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The principles of marketing require a marketing management that will be successful in its role. Several bases of marketing management have been identified. They include understanding of market insight, linking with the customers, strong brands, market shape up, communicating and delivery of value, creation of growth in the long run, and creation of marketing plans and strategies. It has already been shown that a business entity will only survive by offering goods and services that people are able and willing to purchase (Hollensen 2011). This has the implication that the firm must ascertain the consumer demand. Ascertaining overall consumer demand in the economy is necessary for business viability in the future. This will also dictate the existence of the entity as a going concern. This paper contains the analysis of marketing principles and strategies that were applied in launching and selling of NIVEA brand.

The Profile of NIVEA

NIVEA is a global limited company which deals with body care and skin lotions. The brand NIVEA belongs to another huge Germany company called Beierdorf. The company was founded on the 28th of March,1882. The founder of the company was Carl Beierdorf Paul, a pharmacist by profession. At the beginning of the 19th century, Beierdorf sold the company to Twoplowitz Oskar. The new owner developed an emulsion, which was a water in the oil skin cream. The emulsion, which contained Eucerit, was named Eucerin. Eucerin later changed its name to NIVEA. This is a Latin name meaning snow white. During the Second World War, NIVEA was one of the major trademarks that were expropriated in the whole world. Meanwhile, Carl Beierdorf Paul started manufacturing products such as shaving cream and facial toners. Carl Beierdorf Paul bought the trademark back in 1997.Today, the trademark has expanded into the international market. By 1914, NIVEAs products were not only produced in Hamburg, but also in Mexico, Copenhagen, New York, Moscow, Sydney, and Paris. This kind of swift expansion was not heard of in the industry of skin care.

Target Market

As a science, marketing involves selection of target market from market analysis and a segmentation report. Scientifically, it involves studying and understanding customers buying behavior. This aims at providing a brand of superior value to the customers. Together with targeting the male customers, NIVEA FOR MEN brand also needed to target women. The reason behind targeting women is that women often purchase grooming products for their male partners. This implies that the effort was placed to achieve a larger share of the ready market and also to expand the existing market for the product (Keegan & Green 2005). One of the most specific goals seeks to make men consider skin care products and to make them do the actual purchasing. A research, which had been conducted prior, has shown that women were mostly the ones doing skin care buying for men. This made it vital to aim women as a target market for the brand NIVEA FOR MEN. This study was used as a key opportunity to increase the sale.

The Four Ps and the Communication Strategy

Advertising and marketing areas are the reasons behind the rise in the sale of NIVEAs products. The four Ps include product, price, place and promotion

Product is the main idea of any marketing plan. The overall selling points of NIVEA include utilities, design, size, shape, physical attributes, for example, how the product is perceived by the customer, services, companys image, and price. The companys collection of products comprises of lively like eye shadows and lipsticks. NIVEA is recognized for the high standards of quality products. The milk product the company previously launched indicates an example concerning its improvement in quality (Hansen, 2001). As consumers complained of the milk lotion qualities, however, the company altered the product by improving the quality and replaced the sticky lotion with non-sticky one that was accessible in various types for all types of skin. This was not a characteristic of the previously launched lotion. In addition to its quality and color, the packaging is also quite attractive as its products come in various sizes and shapes.

The companys prices are reasonable and fair to its competitors. Every individual can afford NIVEAs products, as they are not intended for any specific market segment. The prices are ranged in the following way:

Place. represents the areas the company serves. Its products are spread in all the grocery stores, shopping malls, and supermarkets. Large and well-known supermarkets have unique counters for NIVEA products only in order to encourage the products sales. All variables are interconnected, where the major ingredient of advertising and promotion plays a crucial role in the success of the brand sales and other components such as packaging and quality.

Promotion is where the company informs customers that products are available and convinces them to purchase these products. There are several promotional activities the company has employed, which include trade fairs or events that assist to establish a product to a broad range of audience. Direct mail goes as far as reaching a bigger number of customers. Public Relations includes the different ways the NIVEA company can communicate with the stakeholders through press releases and newspapers, sponsorship of specific events, like the World Cup, or taking part in charity events. Branding a robust and consistent product differentiates the product and assists the customers to realize the need for and trust the product. This enables maintenance of long-term customers. Sales promotions, for instance, sampling or competitions, persuade customers to purchase the products in the short-run. The company picks on promotional strategies that replicate the range of media present and the lifestyle of its audience. It also recognizes the effectiveness of talking directly to its targeted consumers.

 
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NIVEA Brand Competition

It was established that NIVEA FOR MEN brand had the following strengths, NIVEA FOR MEN brand for men's skincare was a top brand in the United Kingdom. This gave the new brand a strong recognition in the market. The mother company for NIVEA FOR MEN was well established financially, having a strong financial background. This helped a lot in management of competition. The mother company also had well-trained and skilled workers. This enabled application of scientific skill in the product development. Through the analysis, NIVEA FOR MEN brand was found to be having two main opportunities to thrive (Blythe 2006).

There was a general change of attitude in men. This led to men becoming less resistant to caring about facial beauty. Despite NIVEA FOR MEN brand having various strengths and opportunities, it faced both threats and weaknesses. The main weakness was the fact that it was difficult to tell whether other NIVEA products were relevant to the market. The following threats were seen as the major drawback to the success of the product. The customers increasingly became conscious of prices and quality. There already existed a stiff competition, as similar commodities were available. This called for extra investment in order to differentiate the NIVEA FOR MEN brand (Hollensen, 2011). The marketing objectives went further to state that the company was seeking to improve its earnings in order to fulfill the customers desires through innovations. This would arguably give a boost to the companys strategic position in the global competition. The team doing the marketing for the NIVEA FOR MEN brand set up objectives, which were achievable, measurable, realistic, and specific.

Product Marketing and Distribution Strategy

Before any NIVEA product arrives on the market shelves, there are several stages of development involved:

1. Idea Generation Research and Development. At this initial point, the NIVEA R&D department attempts to source fresh ideas for potential products. Before anything else, they may try to carry out a capability or a SWOT analysis that can assist to discover, where the company has unique or strong ability. The fresh ideas may be created, following the initiatives from within the workforce.

2. Product Screening. Not all designs proposed will be appropriate for the launch. It may be simply that the product is either uneconomical, impractical to produce, or that time is not yet right to produce the product (Hansen, 2001).

3. Concept Development. The responsibility of NIVEA at this point is to use the idea to compare with the requirements of the possible consumer. The company has collected quality data on the personal care requirements of the consumer. The challenge is to come up with products that are attractive to that section.

4. Feasibility Study. It is crucial for the company to evaluate the commercial feasibility in terms of potential profitability, investment, production costs, and market support. The major steps in this process is where the production section evaluates whether the company has adequate production competence, or whether it will need to establish new firms, subcontract the new product, or take over a competitor (Hansen, 2001). It is also the point, where the marketing section introduces new packaging that will attract the targeted market, and, at the same time, the point, where scientists attempt to compare the ingredients to the consumer demand.

5. Prototype Development. If the response from the feasibility assessment is positive, the NIVEA company will demand the development of a small quantity of the new product or products. The product that will finally be established in the market will rely on the response from the brands test marketing (Hansen, 2001).

6. Test Marketing. The product stands to lose if the market reacts negatively immediately after the product is launched. Therefore, it is crucial that NIVEA involves in test marketing prior to mass production. Market researchers discuss with the customers their reaction to the test of the product and return the outcome. If the reaction indicates that alterations are to be made to either the packaging or the product, the company acts accordingly.

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Pricing Strategy

As for pricing, a unique pricing strategy was adopted. This made the prices of NIVEAs products manageable. The pricing was partly cost-based. In this case, the price of the product only covered the cost. The company applied only a small markup. The penetrating pricing strategy was applied to make the initial prices low. The company applied this strategy to increase the sales volume. The NIVEA company adopted a large number of distribution channels in order to ensure the widest penetration of the product. On-street sales and use of retailers were quite successful in the effort to penetrate the market. As pointed out earlier, NIVEA applied various promotional methods to ensure that a great outreach. While launching, trade fairs and exhibitions turned out to be highly effective. Direct mails and public relations provided the consumers with information about the new product in the market. Sales promotions, including free samples, were used to motivate customers to buy the products (Hollensen, 2011).

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