Case Study

Subject: Consumer Behavior and Marketing

Management

Student: Nino Kvaratskhelia

Lecturer: Tamar Chilachava

Tbilisi, 2020
 Case concept
Beiersdorf

NIVEA ELASTOPLAST ARTIXO EUCERIN …

The UK sun care market ( worth 173.6m) NIVEA Sun’s vision:

“To be the Number 1 brand in the UK sun care market penetration, sales and
NIVEA Sun has likeability.”
17.5% 17.5% value
market share. Brand strategy:

• making sun care simple

• educating that protection can lead to safer tanning
• Reinforcing the immediate protection message
 Case Questions
1. Identify the right segments of customers;

2. Match sun protection products to each segment.

Product portfolio: Three main product segments:

Moisturising Moisturising Firming Sun Sensitive Sun Pampering Children’s Moderate Hot Very Hot
Sun Lotions Sun Sprays Lotion SPF6, Lotion SPF30, Protection Sun Lotion Temperature Temperature Temperature
SPF4, 8, 12, 20, SPF6, 10, 15, 15 50+ Mousse SPF8, SPF25, 40, 50+
30, 40, 50+ 20, 30, 50+ Satin Sheen 15 Sun Spray
SPF 30 SPF 40 SPF 50+
Sun Lotion SPF20, 30, 40
SPF8,15 50+,
Sun Oil SPF4 Baby Sun SPF 20 SPF 30 SPF 40
Lotion SPF50+
SPF 15 SPF 20 SPF 30
Moisturising Cooling After After Sun Tan Regenerating
After Sun sun spray Prolonger After Sun
SPF 15 SPF 15 SPF 30
Lotion Balm
200/400ml SPF 30 SPF 50+ SPF 50+
Sun Touch Sun Touch Sun Touch Sun Touch Sun Touch
Lotion Normal Caring Spray Face Cream Aerosol Spray Wipes
to Dark or Fair Normal to Normal to
Skin Dark or Fair Dark or Fair
Skin Skin
 Case solution 1
The most important characteristics to identify right segment for “NIVEA Sun” are demographic, psychographic and geographic.

Demographic factors - customer behavior varies depending on demographic factors. Man’s, women’s and children's need and awareness towards sun care products are
different, that’s why they behave differently. Hence, segmentation in terms of demographic ( Age, Gender ) characteristics are: Male, Female and children.

Psychographic factors – why do people purchase the product? Psychographic factor - attitude, can be the answer to this question. By observing customers attitude it is
possible to do right segmentation. Depending on the purpose for which the product is consumed, the following target categories can be distinguished:
Psychographic

Diligent sun/tan lover - Conscious customer, who love sunshine and has understanding of its danger. This group is using product for skin protection.

Cosmetic users – they consume, but don’t have clear understanding of product needs/features. They consume luxury products.

Conscious customer - Health is number one priority for this group of people. They protect skin from harmful solar radiation.

Sun escapers - They do not get tan and always try to avoid sun. In rare occasion, they have necessity of using sun care products.

Careless sun/tan lover – sun/tan admirer, result-oriented group, who does not pay attention to the way how they are getting suntan. They don’t pay much attention to skin protection and sun’s
harmful effect. No details like SPF are observed during consumption.

“Caring parent “ - skin protection is important for children but since they are not conscious about it, decision makers are parents. Product with a high SPF is important for them.

Sensitive skin customers – this group of people can be included in abovementioned categories but in addition they need more specific product to protect their skin.

These categories characterize both women and men consumers, but in case of men additional consideration should be how convenient is the product to use. Therefore,
they won’t be consumers of all types of product.

Geographic factor, in particular location, and skin type are essential consideration in segmentation. As the level of temperature changes, so does the SPF of the product
needed to protect skin. Hence, NIVEA’s three main product segments “Moderate”, “Hot” and “Very hot” has a different skin type: light, fair, normal, dark, children’s -
matching SPF.
Diligent sun/tan lover & conscious
customer (Female/Male) – for
Case solution 2
attentive customers who wants to Caring parent - This
get healthy tan. This portfolio has product portfolio is
Skin Type Moderate Hot Very Hot
wide range of products and SPF and designed for children. It
Temperature Temperature Temperature
is suitable for different types of skin. offers wide range products
with high SPF.
light SPF 30 SPF 40 SPF 50+

Moisturising Children’s
Sun Lotions white SPF 20 SPF 30 SPF 40 Sun Lotion
SPF4, 8, 12, 20, Normal SPF 15 SPF 20 SPF 30 SPF25, 40, 50+
30, 40, 50+ Sun Spray
Dark SPF 15 SPF 15 SPF 30 SPF20, 30, 40
Sun escapers & Cosmetic users 50+,
(Female/Male) - This portfolio Children SPF 30 SPF 50+ SPF 50+
Baby Sun
has wide range of products Lotion SPF50+
Moisturising and SPF and is suitable for
After Sun different types of skin. Since Careless sun/tan lover Cosmetic users
Sensitive skin customers
Lotion Sprays are ease to use this (Female/Male) - For (Female/Male) - For
– ( Female/Male )
200/400ml portfolio of products are customers who don’t customers who need
conscious customers
mostly concentrated for Male investigate further in luxury skin care
Sun Touch with sensitive skin type.
customers. User friendliness is details and don’t use product.
Lotion Normal specific features like SPF.
to Dark or Fair an incentive. Sensitive
Skin Pampering
Moisturising Firming Sun Sun Lotion
Protection
Sun Sprays Lotion SPF6, SPF30, 50+
Mousse SPF8,
SPF6, 10, 15, 15
15
20, 30, 50+ Satin Sheen
Sun Lotion
SPF8,15
Sun Oil SPF4
Regenerating
Cooling After After Sun Tan After Sun
sun spray Prolonger Balm

Sun Touch
Sun Touch
Sun Touch Sun Touch Aerosol
Wipes
Caring Spray Face Cream Spray
Normal to Normal to
Dark or Fair Dark or Fair
Skin Skin
 Summery

As a result of case analysis market segmentation of sun care product was performed.
Segmentation enables “NIVEA Sun” to meet all potential customers individual needs.
Right segmentation will result in competitive advantage and successful performance,
that will enable brand to follow its vision: “To be the Number 1 brand in the UK sun care
market penetration, sales and likeability "and strategy.