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Marketing principle

Assignment
Nivea: Marketing Plan Analysis
Submitted to Ms.Pooja trivedi

Executive Summary
Purpose of the Report
The purpose of the report is to describe the marketing process that Nivea has gone through over
the years. In this report we will discuss the history, business portfolio, marketing mix along with
SWOT analysis.
Parent company

Beiersdorf AG

Category

Personal care brands Skin cream

Sector

FMCG

Tagline/slogan

It starts with you/ 100 years of skin care for Life

USP

Makes dry skin smooth and irresistible to touch

Objective
The NIVEA brand has always stood for good quality products that are reliable, user-friendly and
good value for money. The brands core values are security, trust, closeness and credibility. These
values would be strengthened and expanded on with the re-launch, to get more men and women
to think of NIVEA as first choice for skincare. The marketing team set SMART objectives for the
NIVEA FOR MEN relaunch. These are Specific, Measurable, Achievable, Realistic (given the
available resources) and Time constrained (to be achieved by a given date). The marketing team
used research data to forecast market trends over the next three-to-five years. This helped them
set specific targets for increasing sales, growing market share and improving its brand image.

Current Market Situation

Competitors
Competitors

Vaseline

Ponds skin care

Johnson and Johnson Petroleum jelly

Products or Business Portfolio of Nivea


The strategy of Nivea is focused on category extension and product-line extension that it meets
the needs of the customer. Nivea improve their products so that it meets the perspective of the
target customers.
Category
Extension

Product-line extension

Men's Care

Face Cleansing, Face Moisturizer, Shampoo, Shaving Gel, Shaving Foam,


Shaving Cream, Shower gel, Face Cream....

Bath Care

Bar Soap, Liquid Soap, For Men Shower, Cream Shower, Shower Gel

Body Care

Lotion, Cream, Hand Cream, Gel, Nivea soft, Nivea creme, wipes

Deodorants

Spray, Roll-on, Stick

Face Care

Day Care, Night Care, BB Cream, Eye Care, Eye Make-up remover, Face
wash, Scrub, Mask, Nivea Lip Care....

Hair Care

Shampoo, Conditioner

Sun Care

Lotion/gel, Pump Spray, Face Cream, Oil

SWOT

Strengths

Nivea globally is the brand that has its


presence in around 20 product
categories in more than 50 countries.
Nivea has huge brand recall and
equity.
Nivea product contains large amount of
natural ingredients.
Very strong distribution network.
The packs Blue and White color as its
brand element.
Excellent advertising and brand
visibility makes it a top-of-the-mind
brand

Weaknesses

Nivea cream is perceived as a winter


cream because of its thickness and oily
consistency. This restricts the sale of

Nivea skin cream to winters mainly.


Intense competition in skincare

segment
Various products are mainly available

for womens as compare to man.


Old fashion logo and packing
Research for market is not up-to-date

Opportunities

Nivea for men had seen an increase in


the sales of male skincare products and
it wanted a greater share of this
market.
The company wanted to take advantage
of changing social attitudes. Men were
becoming more open, or certainly less
resistant, to facial skincare products.
Well reputed and established global
brand, every chance to grow in the
emerging economies as well
Nivea has an opportunity to increase
market share
Current Distributors
Carrefour
Lulu
union Co-operative
Spinneys

Threats

Popularity of other skin care brands


Fierce marketing from competitors

while Nivea still lies on lazier front.


The risk of competitors entering the
market.

Nivea

for

men

need

to

differentiate its products in order to


ensure

that,

competitive
activity

in
market,

gave

an

increasingly
its

positive

marketing
return

on

investment in terms of sales and profits

Objectives & Issues


Product Failure
The failure of product depends more upon word of mouth. Nivea failed in the roll-on deodorant
category. The people said that spray deodorant is much comfortable than the roll-on and it lasts
longer. The roll-on feels sticky when they apply.
Nivea products in India failed because the market has already been crowded with established
brands. Ponds having more position in the market and extending products Nivea failed to
succeed.

Marketing Strategy
Marketing Mix (4 P's)

Product
The primary element is product.Understanding the business sector and what the business
sector asks from NIVEA is the first stage in building an effective mix. NIVEA did a lot of
market research to get some answers concerning individuals needs from NIVEA. They
do this by various ways such as social event information from customers, product testing,
using focus group and so on. By doing that sort of exploration they discovered that there
is a crevice in the business sector. More youthful ladies needed a product which is more
particular for face care and is gone for their own particular age group. To satisfy this
crevice NIVEA accompanied NIVEA VISAGE YOUNG item which gives those
necessities by focusing at young ladies between "13-19".Beiersdorf test this new item
on a sample group from its target audience before they finalize the range for re-launch.
With this new product range NIVEA turn out to be more successful than they were and
the way that the immediate contenders on NIVEA are engaged to offers cured
arrangement give competitive advantage.

Promotion
Promotion is always very important when a business want to sell its products. Promotion
creates awareness of existence of the products or services offered. With making
promotion NIVEA furnish their customers with data about the product which is valuable
to them and consequently delivers a motivation for their customers to by Nivea's product.

They choose promotional strategies that reflect the lifestyle of their audience. To promote
NIVEA VISAGE Young they utilize the accompanying techniques: Using a product test.
Thusly individuals can touch the item, utilize the item and see in any case and afterward
settle on choice to purchase the item. Additionally NIVEA VISAGE Young thought of an
online magazine which is called FYI. FYI remains for the stands of Fun, Young and
Independent. The motivation behind this magazine is to give youngsters the certainty to
end up a young lady and make the most of their recently discovered freedom. This
magazine is engaged in any case to the experience of youngsters with NIVEA VISAGE
Young. Also promoting on facebook, twitter, MySpace etc. is very essential for NIVEA
VISAGE Young because nowadays most young people use at least one of this social
media networks and its a way to come closer to their customers. Through channels they
can promote their brand, but what you also see is the commercial on TV, especially the
channels that teenagers like to watch like MTV, TMF etc.

Price
This is one of the most important components of the Marketing mix. The main purpose is
to deliver the required level of offers so that NIVEA can accomplish their targets. The
valuing for NIVEA VISAGE Young was higher than already. This was because of the
new formulation, packaging and extended product range. They are also the price leader.
This is effective of course as they are one of the leading skins care ranges that meets the
beautifying needs of the market segment they also have rules to sell their products on
same prices. The retailers are allowed to give the item they cost what they need. What
you see for instance is that a NIVEA VISAGE item in Kruidvat is normally less
expensive than in ETOS. So the retailers are allowed to utilize any methodologies they
take for their business advancement. These promotion activities are aimed to the
customers.

Place

Promotion has the key role of informing the customers where to buy Niveas products.
NIVEA VISAGE Young aims to use many relevant distributions channels as possible to
ensure the widest reach of their products to their target market. For example to make it
easier for customers they can buy NIVEA VISAGE Young products online. Buying
product through the internet means that NIVEA should undertake all the promotional

activities by them self. Decisions about the placement will therefore have an important
impact on the promotional activities for NIVEA. NIVEA sells its products also to
wholesalers who sell it to smaller retailers. The product is widely provided
Targeting, Positioning, Segmenting
Segment
Personal skin care products

BCG

Positioning
Positioned in the platform ofQuestion
"Gentle Care"
Star
Markand " Wellness"

Targeting

Sun care
Skin care
Nivea visage
Deodorants
Nivea
soft
Bath & shower
Middle class all age groups
for skin care
Nivea body
Mens grooming products
Nivea Lip care

Cash cow

Matrix

Baby care

Dog

Color cosmetics
Hair care

Branding Strategy
Branding consists of a set of complex branding decisions. Major brand strategy decisions involve
brand positioning, brand name selection, brand sponsorship and brand development.
Brand Positioning

Attributes: Distinctive with the blue tin and its white capitals.
Benefits: NIVE Crme is an everyday, multipurpose crme which protects and gives

relief from damaged skin, leaving it healthy.


Beliefs and Values: NIVEA stands for values like security, closeness, trust, and reliable
care for all types of skin.

Brand Name Selection

Selection: The brand has derived its name from the Latin word Nivius meaning Snow

White.
Protection: The trademark "Nivea" was expropriated in many countries following World
War II. Beiersdorf the owner of Nivea completed buying back the confiscated trademark
rights in 1997.

Brand Sponsorship

Manufacturers Brand: All the products of Nivea are manufactured brand.


Co-branding: Philips electrical shaver that uses replaceable Nivea for Men cartridges,
containing either shaving lotion or fresh gel.

Brand Development

Line Extension: Nivea guaranteed that


each of its products addressed a
specific need of consumers. Products
in all the 14 categories were developed
after

being

evaluated

on

two

parameters with respect to the Nivea


mother brand. First, the new product
had to be based on the qualities that the
mother brand stood for and, second, it
has

to

offer

benefits

that

were

consistent with those that the mother brand offered.


It can be seen in the figure that there is a central point, which consist of mother brand, along with
an inner circle in which those products are placed that are closely related to core values of Nivea
and an outer circle of brands which are extensions of the inner circle products.

Brand Extension: Nivea extended their


Brand too. In beginning Nivea started
with care products like Nivea cream and
Nivea soft then they went with Hygiene
Products like Nivea face, Nivea hand,
Nivea baby and Nivea lip then they went
for hair products like Nivea shampoo,
Nivea conditioner and Nivea gel and
finally they extended their brand to

makeup products like

Nivea beauty and Nivea

sun.

Multi brands: Besides Nivea there are many other brands of this company such as

Eucerin, La Prairie, Nivea men, Labello, Hansaplast, Florena, 8X4, Tesa and Atrix.
New Brands: Nivea men hair care range, shower gels, Labello in fruit flavors and
cosmetics.

Action Program
The action plan is to gauge the results of the market activities against the goals and objectives.
Evaluation helps the market group to concentrate on altering or acquainting activities to
accomplish the objectives. Nivea for Nivea embraced a scope of key performance to evaluate the
achievement of the Nivea for Men re-launch.
Market share- was the re-launch quicken the development and accomplish the its objectives?
NIVEA FOR MEN is business sector pioneer in numerous nations and is reliably increasing
market share of the overall industry.
Overall sales- Was this in accordance with targets? Universally, NIVEA FOR MEN skincare
items developed by right around 20%. Its deals in the UK market at retail in 2008 were about
30 million and in accordance with desires.
Brand image- NIVEA FOR MEN was the Best Skincare Range victor in the FHM Grooming
Award 2008 for the fifth year running. This recompense was voted in favor of by shoppers. It

shows that NIVEA FOR MEN has a greatly positive brand picture with shoppers contrasted
with different brands.
Product innovation- Because of customer response after broad item advancement and
improvement, the NIVEA FOR MEN range has been extended and the current definitions
progressed.
Nivea for Men re-launch met its general targets, which was a huge accomplishment, considering
the troublesome financial atmosphere. The market plan for the re-launch utilized past execution
and figure information to make another advertising procedure. This based on the brand and
organization's qualities to exploit the expanding change of male mind to utilize skincare items.
Setting clear goals results in a fruitful market plan should fit general methodology of the
organization. As far as NIVEA their objectives were obviously characterized as to consistently
expand the piece of the overall industry in all ranges through subjective development and to
advance enhance income circumstance.

Controls:
Keeping in mind the end goal to appropriately control our promoting arrangement we ought to:
Routinely conduct the advancement. Is the arrangement working or not.
Screen the deals, income produced, Return on our ventures, consumer loyalty levels through
examines and utters shopping.
Representatives must be compensated for accomplished targets.
Representatives are the fundamental working power behind the arrangement so worker
fulfillment with examinations and rewards must be finished.
Market and client decisions changes each moment so general business sector inquires about
would help NIVEA for Men to rate their item in business sector.
Any arrangement needs time to succeed; fleeting disappointment ought not to be taken as the
last result.
The accomplishment of market plan relies on organization, individuals and a smoothened mix
between both to accomplish the objectives. Information on targets and endeavor to accomplish
them makes unlimited potential outcomes of progress.

References:
http://www.slideshare.net/maysiriwan/nivea-marketing-communication-analysis
http://www.nivea.com/pages/int-website-selection
http://mehriibs2.blogspot.ae/