This action might not be possible to undo. Are you sure you want to continue?
Case Study on:
Submission Date: - 20th Aug.’10
Institute of Productivity & Management, Meerut
We have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals support. We would like to extend my sincere thanks to all of them. We are highly indebted to Prof. Sham Sharma sir for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. We would like to express my gratitude towards my parents & member of group for their kind co-operation and encouragement which help us in completion of this project. We would like to express us special gratitude and thanks to Prof. Sham Sharma sir for giving us such attention and time. Ours thanks and appreciations also go to our group in developing the project and people who have willingly helped us out with their abilities.
TABLE OF CONTENT
CONTENT INTRODUCTION Executive summary SWOT analysis CONCLUSION 1. ANS… 2.ANS… 3. ANS…. 4.ANS BIBLIOGRAPHY
1 2 3-4 5 6-9 10 11-12 13 14
The NIVEA brand is one of the most recognized skin and beauty care brands in the world. In 1980 Beiersdorf, the international company owns NIVEA and launched its NIVEA FOR MEN range internationally. NIVEA presents 14 product categories in 150 countries. In 1993 NIVEA FOR MEN developed a fuller range of male skin care products. In 1998 NIVEA FOR MEN brand launched in UK at that time total annual sales of male skin care product in UK were only 68 million pound and in 2008 it reached to 117 million pound. It was the first who launches the balm on the market that did not contain alcohol, which can irritate the skin. Target market includes almost every age and category. The launch of NIVEA FOR MEN is to increase its market share globally. In 2008 it was re-launched as part of a plan to market the full range of products in the UK. To do this, Beiersdorf put together a marketing plan for the re-launch. It decided which marketing activities to use to achieve its aims. Its aims are to understand its consumers in its many different markets and delight them with innovative products for their skin and beauty care needs. This strengthens the trust and appeal of Beiersdorf brands.
Nivea's global platform is based on the idea that beauty is about how consumers feel as well how they look. Andy Fry investigates. The NIVEA FOR MEN team devised marketing strategies to deliver its objectives would be a achieved within the designated budget set by management team. NIVEA sought to build on and develop the approach it had used in the past. In the 1980s, advertising in men’s style and fashion magazines along with product sampling was a major promotional tool. In the 19990s the company used radio, television and press advertising together with sampling. Since 2000, there has been a greater emphasis on consumer needs and an increasing use of experiential activities in the promotional mix. Experimental marketing is about engaging consumer through two-way communication that brings brand personalities to life and adds value to the target audience. This helps build an emotional connection brand and consumer.
Strengths: NIVEA launched aftershave balm. It was the first balm on the market that did contain alcohol, which can irritate the skin. NIVEA FOR MEN was the UK market leading male facial skincare brand which gave it strong brand recognition. The company’s research showed man mainly wanted skincare products the protected the face after saving, so researches staff with scientific skill to develop product that men want. Researches staff with scientific skill to develop product that men want. NIVEA target audience is woman and NIVEA brand now extended to 14 product ranges worldwide from sun care to facial moisturizers, deodorant and shower product. NIVEA marketing always focused on key brands benefits high quality, reasonable price, straight forward approach and mild skin care.
Weakness: NIVEA’s logo is looking too simple and plain for this day and age. The word that come to mind to product are old fashioned and out of date. NIVEA’S target is mainly for woman, they make more products for only woman.
NIVEA not update the product time to time.
Opportunities: Think of the possibility to expand revenue, increase Sales, and boost profit margins, to out to other buyers. 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 wants to take to advantage of changing socials altitude. Men were becoming more open, or certainty less resistant, of facial skincare product.
Threat: Reach out to other buyer because consumer was becoming more knowledgeable and price conscious. This often expects sales promotion such as discount and offers. NIVEA can make the product for all age and increase sales. The risk of competitors entering the market NIVEA FOR MEN needed to differentiate its product in order to ensure that, in an increasingly completive market, its marketing activity gave positive return on investment in term of sales an profits.
1 NIVEA used two pieces of data when preparing its marketing plane to relaunch NIVEA FOR MAN: (1) The marketing plan for the re-launch used past performance and, (2)The marketing team used research data to forecast market trends.
Marketing plan:Successful marketing thus requires companies to have capabilities such as understanding customer value, creating customer value, delivering customer value, capturing customer value, and sustaining customer value. A business plan sets the direction of a company. The marketing plan is part of the business plan. This aims to identify, predict and satisfy customer needs. A marketing plan shows the activities the business needs to do to achieve its targets. The first step in a marketing plan is to look at the business, its brands and its products. This reviews the brand's position and the state of the market. NIVEA FOR MEN needed to know what its male customers wanted and if any competitor products existed. To do this the company used a SWOT analysis. This looks at internal strengths and weaknesses. It also looks at external opportunities and threats in the market. The opportunities
included a positive change in attitude – men were now likely to use skincare products. Beiersdorf wante0d to increase its UK market share for NIVEA FOR MEN, but also wanted greater market penetration for male skincare products. In other words, it wanted not just a greater share of the existing market; it wanted to expand that market. 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. 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. A marketing plan for a small business typically includes Small Business Administration Description of competitors, including the level of demand for the product or service and the strengths and weaknesses of competitors Description of the product or service, including special features Marketing budget, including the advertising and promotional plan Pricing strategy Market Segmentation
The NIVEA FOR MEN team planned marketing strategies to reach targets within the set budget. The strategies focused on product development and consumer needs. NIVEA FOR MEN promoted its re-launch through a mixture of above-the-line methods, such as advertising and below-the-line methods, like free samples. The promotion was linked with sport to appeal to men. Above-the-line promotion included television and cinema adverts, which reached a wide audience. By using links with sport, NIVEA FOR MEN aimed to build a positive male image associated with male facial skincare. The brand also benefited from press advertorials in popular men’s magazines, making the daily usage of their products more acceptable. Promotions were used to attract new customers. For example, the distribution of free samples encouraged trial of NIVEA FOR MEN products which drove purchase. These promotions have helped build up brand awareness and consumer familiarity which reinforce the NIVEA FOR MEN brand presence. There is a dedicated NIVEA FOR MEN website to support its
products and provide information to educate men on their skincare needs. To enhance the brand a tool called a Configurator was created on the website to help customers specify their skin type and find the product that best suits their needs. The marketing plan begins and ends with evaluation. The final stage is to compare the plan's outcome with its targets. Ongoing evaluation helps the marketing team change its strategies if necessary to reach targets.
NIVEA FOR MAN promoted the new launch of its product through a mixture of above-the-line and below-the-line promotion. The use of football was a key element here. NIVEA used football sponsorship to help increase its sales of NIVEA FOR MEN products because Beiersdorf not only wanted to increase its UK market share globally but also wanted greater market penetration for male skin care products. In other words, it wanted not just greater share of the existing market but wanted to expand the market also. Beiersdorf thoughts that in this competitive market or in order to stay in the market football will be an ideal vehicle for field marketing to increase its customer as it have already sponsoring England football team. As we all know that football is world’s famous game. Men will be more attracted towards this product which will be shown by company in TV, newspaper, magazine etc used by their favorite players. NIVE FOR MAN supported football event at a grass roots level through its partnership with power league to build positive relationship with men. This helped create stronger brand affinity for NIVIA FOR MEN among men. It also allowed the brand to build and maintain a consistent with men, which helps to drive sales. Its real long term challenge is to make this sector of male skin care as big as it is currently for women. After the launch of this product NIVEA FOR MEN has hold the market and also giving the profit every year. UK sales of male products have grown by a third in just five years. As NIVEA FOR MEN have adopted the concept of ‘preparation is everything’ to communicate the benefits of looking after our skin with a care.
2 NIVEA is an established name in high quality skin and beauty care products. It is a part of a range of brands produced and sold by indeed a global
company specialization in skin and beauty care. This case study examines how NIVEA re-launched the NIVEA FOR MEN range in 2008. This was part of its overall plan to develop the range in UK. It shows how the company developed a marketing plan for the re-launch and organized its marketing activities to achieve its aims and objectives. As per the case study, we can Analysis NEVIA FOR MEN critically with the help of SWOT analysis:-
STRENGTH: It is a well-known brand and image
Promote the sales and budget not only for market but also for its evaluation. Its products contain large % of natural ingredients.
WEAKNESS: Various products are mainly available for women Old fashioned logo and packaging Research for market requires more studies.
OPPORTUNITIES: As it is well known brand it has great opportunities to develop it market internationally by increasing its product categories. There may be increase in its sales as it did not contain alcohol, which can irritate the skin.
THREATS: Competition is growing because there are n numbers of beauty products in the market. International competitive market must be analyzed time to time.
NIVEA FOR MEN is a leading skin care products in the UK market designed to enhance the skin and beauty of the consumer rather than being medicated to treat skin problems. It is the face care market leader in 14 countries. The company continues to build a successful business by developing new and existing products and market as well as diversifying into new market with new products. The study focuses and shows how the company developed a marketing plan for the relaunch and organized its marketing activities to achieve its aims and objectives.
www.thetimes100.co.uk/downloads/nivea/nivea_ http://www.englishouse.ru/8.English_business/businessenglish_co mpanies_1.html http://www.slideshare.net/adhirock/nivea-case-study http://www.slideshare.net/tarun_arya/nivea-case-study-548106 http://www.coursework.info/International_Baccalaureate/Business _Studies/Nivea_Case_Study_L841740.html http://www.scribd.com/doc/17304945/NIVEA-Case-Study http://ivythesis.typepad.com/term_paper_topics/2010/04/niveacase-study-questions.html http://www.cinescent.com/nivea.html
This action might not be possible to undo. Are you sure you want to continue?