INSTITUTE OF PRODUCTIVITY & MANAGEMENT, MEERUT

CASE STUDY ON: NIVEA FOR MEN

SUBMITTED TO RESP. PROF. MR. SHAM SHARMA M.A. (LUCKNOW), D.M.M (LONDON)

SUBMITTED BY VIJETA BHARTI. VIKASH KR. SINGH. VINOD YADAV. VISHAL KR. SINGH. GROUP NO: 12, SEM-1ST BATCH 2010-12 NO. OF WORDS: 3552 VIVEK RANJAN. VIVEKANAND RAI.

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ACKNOWLEDGEMENT

We would like to show our gratitude to Resp. Prof. Mr. Sham Sharma, for providing us with the golden opportunity to prepare an intellectual report, on the case study of ³NIVEA FOR MEN´.

We are grateful to Resp. Prof. Mr. Sham Sharma, for guiding us to prepare an aesthetic report on the developing a marketing plan for ³NIVEA FOR MEN´ with the proper information and knowledge. Without his kind support it would have been difficult for us to complete the report, so meaningful and interesting in a short period of time.

We thank him whole heartily for his consent encouragement, warm response and for filling every gap in our personal development and knowledge enlightens and valuable idea that made this assignment successful.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ................................................................................................................ 4 INTRODUCTION ............................................................................................................................. 5 SWOT ANALYSIS ............................................................................................................................ 7 QUESTIONS & ANSWERS ......................................................................................................... 10 QUESTION -1 ............................................................................................................................. 10 QUESTION-2............................................................................................................................... 11 QUESTION-3............................................................................................................................... 13 QUESTION-4............................................................................................................................... 15 CONCLUSION ................................................................................................................................. 19 BIBLIOGRAPHY ............................................................................................................................ 20

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EXECUTIVE SUMMARY

This case study is based on the developing plan of NIVEA FOR MEN. This is the one of the best case we have ever solved as our assignment. In this case study we have written a brief introduction of NIVEA and NIVEA FOR MEN, along with its history. After analyzing the case several times we have prepared the SWOT analysis of the company. We have mentioned two tables which contain the sales figure of NIVEA along with the data of per capita sales of NIVEA in different countries. We have mentioned that how the company developed a marketing plan for the re-launch and organized its marketing activities to achieve its objectives. We have explained the beautiful and effective promotional strategy through with they are able to response to the change in consumer expectation, external influences, and business aims to achieve the objectives. We have presented the data of overall sales of NEVIA¶s skin care product, their growth rate, and the global market share. We have answered specifically all the questions which are mentioned in this case study with the help of best available resources.We have described the data which NIVEA used when preparing its marketing plan to re-launch NIVEA FOR MEN. We have mentioned the different sports sponsorship owned by NIVEA FOR MEN, in order to promote the product in effective way. However we have done the SWOT analysis of NIVEA FOR MEN before the re-launch in 2008 in UK. And finally we have mentioned the effectiveness of its marketing plan in UK.

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INTRODUCTION
Nivea is a Global skin and body care brand own by the gernam company Beiersdorf. The company began in 1911 when Beiersdorf developed the water in oil emulsifier as a skin cream with eucerit. Beiersdorf is one of the internationally leading companies for skin care it is very close to its consumer, offering them compelling, innovative products. Beiersdorf enjoy universal trust ± from NIVEA, one of the world¶s largest skin care brand, to other internationally successful brands such as Eucerin, La Prairie, Labello, 8X4, and Hansaplast/Elastoplast.With more than 125 years experience in skin care and one of the world¶s most modern research centers, Beiersdorf stands for innovative and high-quality cosmetic products. NIvea cream was first introduced in 1911; it has more than 14 different kinds of products from suncare to facial moisturizers, deodorant and shower products. In 1980 Nivea launched NIVEA FOR MEN internationally, and at that point in time it was very popular among the male as this product did not contain the alcohol, which can irritate the skin.

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HISTORY

The history of NIVEA is very interesting. The story began when Hamburgbased Pharmacist Dr. Oskar Troplowitz mixed water and oils into a stable cream. This was achieved through use of an emulsifier called Eucerit. In the same year, he introduced the name Nivea from the latin niveus-which means snow-white. 1911 was the year NIVEA Cream was born. It owes its development to the product ³Eucerit´. After decades of research Dr. Isaac Lifschutz discovered this revolutionary emulsifier, which meant that a product was now available which could combine an active substance, fat and water to give a stable base for ointments. The highly creative Dr. Oscar Troplowitz of the Beiersdof Company used Eucerit, originally discovered for the medical field, as the base for a completely new kind of cosmetic cream that is called NIVEA Cream. Nivea had a brief slump in popularity in the 1920s and underwent a massive re-launch. The result was Nivea Crème-which is now the most polular face cream in the world. Overall, the Nivea brand currently holds 203 number one positions across its 54 country market.

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SWOT ANALYSIS
SWOT analysis of NIVEA for men.

STRENGTHS
A. NIVEA used the one logo since beginning, so for consumer it became easy to recognise the logo. It helps NIVEA to create trust and reliability of their product. B. The products offered are simple and effective in design, as well as economical, in comparison to that of their competitors. By this they gain the competitive edge over their competitors and sustain in the market as a cost leader. C. With increasing marketing share and sales all over the world they have strong financial base. At the same point in time they have strong promotional strategy using ATL and BTL for the promotional balance.

WEAKNESS
A. NIVEA well known as a large global skin and body care brand internationally. But they mainly focuses on beauty care products for women before launching NIVEA FOR MEN brand which basically focuses on the men skincare products. B. NIVEA have not changing their old fashioned looking logo. So, it may be chances that customers distract with the product of that brand.

OPPORTUNITIES
A. NIVEA FOR MEN selling more male skincare products to women because women often buy male grooming products for their partners or help them to choose the product. So, this is the opportunity for NIVEA FOR MEN to increase their sales as well as the market shares. B. Now a day men are very much conscious about their skin, just like women. So, there is a great opportunity for NIVEA to introduce the new product in the market, and diversify the business.

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THREATS
A. There is the stiff competition in the market as the demand of skin care products has increased. Competitive companies are also offering the skin care product for women and men with new offers and discounts. Eg.- lotus, Rodial, Dermalogica, Olay.

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QUESTIONS& ANSWERS
QUESTION -1(Vijeta Bharti, Vikash Kr. Singh, Vinod Yadav)
Describe two pieces of data that NIVEA used when preparing its marketing plan to re-launch NIVEA FOR MEN. ANSWER: Before answering the question we would like to define the marketing plan term, as it says that Marketing plan is a written document which has details of necessary actions to achieve one or more marketing objectives, so it is a vital parts of overall business plan. Marketing plans cover one and five years plan in order to achieve the objectives. A marketing plan can be part of an overall business plan. A marketing plan contains a list of actions, which are identifying, anticipating and satisfying customer¶s needs. In 2008 NIVEA re-launched NIVEA FOR MEN and prepared market plan to achieve its objectives. NIVEA developed its marketing plan after the marketing research. Basically marketing plan of NIVEA used following data to re-launch of NIVEA FOR MEN:A. Past performance data. B. Forecasting data to create a new marketing strategy. Marketing team of NIVEA sets smart objectives for the NIVEA for men relaunches. These are specific, measurable, achievable, and realistic and time constrained. This helped them set specific targets for increasing sales and it also helped them in growing market share and improving its brand Image. The NIVEA brand has always stood for good quality products that are reliable and user-friendly. The brand¶s main vales are security, trust, closeness and credibility. These values would be strengthened and expanded on with the re-launch, so more men and women to think of NIVEA as first choice. The other one for the UK marketing strategy for the re-launch was promotion. NIVEA develop the approaches it had used in the past. During 1980s, the advertising tools were fashion magazines and product sampling. In the 1990s the NIVEA used radio, television and press advertising together with sampling but after 2000 the company started giving more emphasis on consumer needs and an increasing use of two way communications in the

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Promotional mix. Its helps in building an emotional connection between the brand and the consumers NIVEA for men also adopted a range of key performance indicators to assess the success of the NIVEA for men relaunch. For example the market shares, overall sales, brand image ratings, product innovation, etc.

QUESTION-2(Vijeta Bharti, Vishal Kr. Singh, Vivek Ranjan)
Explain why NIVEA used football sponsorship to help increase its sales of NIVEA FOR MEN products. ANSWER: For any brand or product a promotion is a measure tools of its marketing strategies to deliver its objectives. The NIVEA FOR MEN team emphasis too much on its promotional activity it was important for NIVEA FOR MEN, to get the promotional balance while launching its products through a mixture of above-the-line and below-the-line promotion to create stronger brand affinity for NIVEA FOR MEN among the people. As NIVEA used football sponsorship through which they can create a promotional balance on both side of promotion that is ATL and BTL. The use of sports was the key element here NIVEA FOR MEN supported football event at the grass roots level through its partnership with power league to build a positive relationship with men. It allowed the brand to build and maintain a consistent dialogue with men which helps to drive sales. As football is one of the most popular games worldwide, so NIVEA FOR MEN used this as a promotional tool for its new products.Beiersdorf Male Grooming brand NIVEA FOR MEN has signed a multimillion pound four-year deal to become the first official grooming supplier to the England Football team. The Football Association has unveiled its second new commercial partner in the space of a week after announcing a new four-year deal with NIVEA FOR MEN to become the official men¶s grooming supplier to the England football team. The brand¶s range of grooming and skincare will be aligned with the England football team in a multi-million pound deal that lasts until 2014.

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The agreement with The Football Association means NIVEA FOR MEN will be supplying the England football team with grooming products for the changing room. Fans¶ grooming routines will also benefit from the association with the England football team through 3 Lions Crest Nivea for Men grooming gift pack sets.Homing in on players¶ routines and the work that goes on before a game, Nivea for Men have adopted the concept of 'Preparation is everything' to communicate the benefits of looking after your skin with a care regime.Nivea for Men joins Fiat as new supplier partners to The FA following the announcement of the latter deal at the end of last week. Besides football NIVEA FOR MEN is also promoting other sports all over the world.  Motorsports NIVEA FOR MEN sponsors the UAE Motorsports for consecutive 3 years 2005-2007, under the karting endurance challenge.  Rugby NIVEA FOR MEN in Dubai sponsored one of the biggest events, the Dubai Rugby 7S in 2004.  AVP Tour NIVEA FOR MEN signs five years deal to title sponsors to AVP Tour of Volleyball. NIVEA FOR MEN organizes these kinds of events to become popular among the men; they promote their product with the help of these events. By using the links with sports, NIVEA FOR MEN able to build a positive male image associated with the male facial skin care products. It helps to increase the sales of NIVEA FOR MEN product. In this case study we can see the positive change in a very short period of time. It increases from 68 Million Euro to 117 Million Euro. In which the male facial product sector increases from 7.3 Million Euro to 49 Million Euro. These figures show that how effective the sponsorship of sports works in increasing sales.

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QUESTION-3 (Viaksh Kr. Singh, Vishal Kr. Singh, Viveknand Rai)
Using the case study put together a SWOT analysis of NIVEA¶s position just before re-launch of NIVEA FOR MEN. ANSWER: The SWOT analysis done by the NIVEA FOR MAN before the re-launching it, was very helpful in order to prepare the strategy. This takes the detailed look at the internal strength and weakness of the business, as well as external opportunity and threats in the market place. STRENGTHS A. As NIVEA FOR MEN brand was launched in 1998, they have created a strong base in UK¶s market. It had strong brand recognition in UK¶s market .So they were very much confident that , re-launching the brand would not affect the company, however it would help to increase its shares in the UK¶s male skin care market.

B. The company had a sound financial base, as they were operating successfully in the UK¶s market since last 10 years. They were very

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much aware of the changing demand of the UK¶s consumer. So, it had the resources to put together the strong marketing campaign.

C. It had the strong research and development department with scientific skills to develop product. As they were the first company to successfully introduce a facial cream without alcohol, this attracted a large no. of consumer. It also had staff with relevant skills topromote the product effectively.

WEAKNESS A. NIVEA FOR MEN introduced the product in limited range; it doesn¶t fulfil all the requirements of a man.

B. There were no set model for the marketing plan in NIVEA FOR MEN specifically in UK, otherwise it would not had been taken 10 years to re-launce the product once again, they could have done the relaunching several years back to increase the market share.

C. NIVEA FOR MEN did not have the specially designed outlet for men, they promote the men¶s product along with the other women¶s product in the women¶s outlet.

OPPORTUNITY A. NIVEA FOR MEN has seen the increase in the sales of male skin care production, so there was a great opportunity to re-launch the product and make the maximum profit out of it.

B. There were great opportunities as men were becoming more open towards the skin care product.The company wanted to take advantage of changing social attitudes.

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THREATS A. As the demand of the men¶s skin care products had increased, other companies started introducing the men¶s product in the market which could gave a great competition to NIVEA. Eg.- lotus, Rodial, Dermalogica, Olay.

B. Consumer becoming more knowledgeable and price conscious, they often expect sales promotion such as discount and offers, it would affect the return on investment in terms of sales and profit. With the help of this they were able to conduct and evaluate their business, brands and products, in such a way so that there would be optimum utilization of the available resources.

Question-4(Vinod Yadav, Vivek Ranjan, Vivekanand Rai)
Discuss how effective you think the marketing plan for NIVEA FOR MEN has been? ANSWER: A Marketing Plan outlines the specific actions you intend to carry out to interest potential customers and clients in your product and/or service and persuade them to buy the product and/or services you offer.A marketing plan may be developed as a standalone document or as part of a business plan. Either way, the marketing plan is a blueprint for communicating the value of your products and/or services to your customers. Effectivness of the marketing plan of NIVEA FOR MEN Leadership Status presented a Superior Financial Performance, Trust and Reliability. Nivea having 15% market Share In the global Skin Care Product Market. The NIVEA FOR MEN brand was re-launched in the UK in 1998. At that time total annual sales of men¶s skincare products (facial and shaving

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preparations) in the UK were only £68 million with the male facial product sector worth only £7.3 million. Sales of male skincare products have grown steadily since the launch of NIVEA FOR MEN and the market in 2008 was worth over £117 million with male facial products worth £49 million. NIVEA FOR MEN wanted to increase its share of the UK male skincare market. 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. It wanted more men buying skincare products. One key aim was to move men from just considering skincare products to making actual purchases. It also aimed to sell more male skincare products to women. Research had indicated that women were often the initial purchaser of skincare products for men. NIVEA focus on product development combined with an emphasis on consumer need was a key differential for NIVEA FOR MEN. It was the major reason why in the U.K. the brand is still the market leader in the male facial skin care market in U.K. Advertising in MEN¶s style and fashion magazines along with product sampling was a major promotional tool for the re launching NIVEA FOR MEN. NIVEA FOR MEN used this key fact as a way to increase opportunities for sales. Another objective was to develop the NIVEA FOR MEN brand image. The NIVEA brand has always stood for good quality products that are reliable, user-friendly and good value for money. The brand¶s core values are security, trust, closeness and credibility. These values would be strengthened and expanded on with their launch, to get more men and women to think of NIVEA as first choice for skincare.

Beiersdorf has increased the budget set by management in million To improve the point of sale. NIVEA FOR MEN distributes through a variety of outlets and contract vehicles for greater efficiency in delivering to retail online magazine to increase brand awareness and expanding the range of NIVEA FOR MEN products. The firm also uses above-the-line and below-the-line promotional strategies to reflect the lifestyle of its audiences and the range Brand recognition quality performance and price have the most significant influence to

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differentiate its product to make certain internal strengths and weaknesses of industry. Sound financial base for strong compared to competitors with a strong brand presence in the UK wishes and needs with innovations MEN will be able to achieve these goals launch NIVEA FOR MEN. The marketing team set the smart objectives for the NIVEA FOR MEN relaunches. These are Specific, Measurable, Achievable, realistic and time constrained. They had market research to forecast the market trend over next three to five year. This helped them to set specific target for increasing sales, growing market share and improving its brand image. They have used two strategies: A. To improve the formulas of the product B. To extend the NIVEA FOR MEN product range. Also they had market research and repositioned the product successfully. Now the product is doing very well in the market, thus we can say that the marketing plan of NEVIA FOR MEN is very much effective.

NIVEA FOR MEN adopted a range of key performance indicators to assess the success of the NIVEA FOR MEN re-launch in the UK .The success of NIVEA FOR MEN was greatly depending on the following four factors: MARKET SHARE: Beiersdorf states its goal as µto increase the market share of NIVEA FOR MEN through qualitative growth. At the same they want to further improve their sound earning performances in order to fulfil their consumers¶ wishes and need with innovations for today and for the future to achieve strong position within the global competitive environment. With their effective marketing plan NIVEA FOR MEN enjoys a bigger market share and becomes market leader in many countries and is consistently gaining additional market share. OVERALL SALES:It achieves its objective and internationally NIVEA FOR MEN skincare products grew by almost 20%. Its sales in the UK market at retail in 2008 were nearly 30 Million euro. BRAND IMAGE: NIVEA FOR MEN was the Best skincare range winner in the FHM Grooming award 2008 for the fifth running year. This award voted by

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the consumers and this shows NIVEA FOR MEN has a positive brand image among the consumers. PRODUCT INNOVATION: NIVEA FOR MEN range has been expanded and includes extensive product innovation and development as the feedback given by the consumers shows that NIVEA FOR MEN success after re-launch in the UK.

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CONCLUSION
The marketing plan is a cycle that begins and ends with evaluation. The overall conclusion of the case study is that in UK, the NIVEA FOR MEN relaunch met its targets, which was a significant achievement. The marketing plan for the re-launch used past performance and forecast to create the marketing strategy. A. With that NIVEA FOR MEN enjoys 20 years of its success. B. Market leader of face care product in more than 24 countries.

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BIBLIOGRAPHY
A. B. C. D. E. http://www.nivea-international.com/about-us/beiersdorf/history http://www.cmdglobal.com/analysis/brand_experts/Nivea/Smoothly/does/it http://www.authorstream.com/Presentation/pratikkal-440119-presntation-case-study-nivea/ http://www.scribd.com/doc/34764121/Nivea-14-Full http://www.nivea-international.com/about-us/beiersdorf/history

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