Segmentation

Introduction
NIVEA is one of the family of brands owned by Beiersdorf, the international skincare company. The range targets
different market segments to meet individual consumer needs. A segment is a slice or smaller part of a market. Each
segment contains consumers with similar tastes. NIVEA products range from female face and body products to men's
shaving gels, deodorants and sun care lines. This case study looks at how NIVEA uses market segmentation to ensure
the success of its sun care products.

Product Segments
The three main ways in which the sun care market is segmented reflect the reasons why people buy sun care products:

* Protection - NIVEA Sun provides products that enable people to protect themselves from the harmful effects of the
sun. It is the market leader by value in this segment*. This segment can be further sub-divided according to skin type
and location (both factors will affect the level of protection needed).
* After Sun - this is a rapidly expanding market segment.
* Self-tan - tanning products used for cosmetic appeal.

Brand vision
NIVEA Sun's brand vision is 'To be the number 1 brand in the UK sun care market in penetration, sales and likeability'.
Penetration means how many potential consumers in a segment actually purchase and/or use the brand; sales are
measured by value or volume and likeability refers to whether the brand is enjoyed. NIVEA strives for the vision by
continually segmenting consumer markets.

Consumer segmentation
Markets are segmented by certain factors. Two important ones are demographics, referring to the different
characteristics of populations, and attitudes, referring to why people buy products. Market research was used to identify
different types of users. People were asked when they used a sun care product (e.g. holiday, garden, sports) and why.
The first relates to the Sun Protection Factor (SPF) required, the second to the type of product (e.g. a spray or a product
for children). There are five main types of buyer:

* Concerned consumers have protection as a priority;

* Sun avoiders, who prefer to stay out of the sun rather than protect against it. This segment needs to be convinced by
easier to use products.
* Sun lovers are consumers who adore sunshine and know about protection. These consumers will show loyalty to a
brand they trust.
* Careless tanners - like the sun but don't protect properly.
* Beauty conscious - want a good sun tan, know protection is important, but don't really understand about SPF's.

Brand strategy
The brand is based on the key proposition of protection. It also concentrates on making sun care simple and educating
about the dangers of sun. Product launches have therefore included spray products that are easy-to-apply (aimed at
men), coloured products to be more fun (aimed at children) and products offering better protection. The education
message is reinforced through advertising and a school educational programme. A 'Sun Sense' primary school pack
goes out to 10,000 teachers each year.

Conclusion
By knowing about its market segments, NIVEA Sun can successfully target them. Segmentation enables NIVEA Sun to
stay as the Number 1 protection and after sun brand in terms of value sales in the UK*.

NIVEA Sun Case Study Summary

Downloaded from The Times 100 Edition 11 - http://www.tt100.biz
* Source: IRI (HBA Outlets, value sales, 52 W/E 24 Dec, 2005)

NIVEA Sun Case Study Summary

Downloaded from The Times 100 Edition 11 - http://www.tt100.biz