Nivea (1911)

Nivea (1911) is a worldwide body-skin wield puff up known brand. A German keep party named Beiersdorf, which is founded on 1882, owns it. Nivea is a Latin word (niveus/nivea/niveum), which means Snow White 1. The most authorised aims of Beiersdorf is to need its harvest-times as close as possible to its consumers and understand them in its many different trades and satisfy them with skin-body beauty cope advanced products 1. In return, Beiersdorf is gaining the trust and appeal from its customers.Case synopsis Beiersdorf is one of the companies that seeks continuous and first-string grocery softenment. Market can be developed by decision the open frame (need) in the market and trying to fill the gap by developing a impertinent product (satisfying the need by means of market-oriented approach), or through product-oriented approach by creating good quality product and embark it to the market. Beiersdorf market explore have identified a market gap which led to NIVEA w arrant boylike (product) introduction in 2005 to the market in order to fill the this gap (market-oriented approach).After developing a fit and effective market mix the company re-introduced the NIVEA VISAGE boyish put in 2007 where the product had new formula, new design, new behaveaging, and new name. program line of the problem Beiersdorf market query have identified a market gap which led to NIVEA VISAGE teen (product) introduction to the market in order to fill this gap (market-oriented approach) 2. The company needed to develop a balanced and effective marketing mix (product, footing, place, promotion) in order to well suit the product, target market, and to meet its own objectives.Causes of the problem Beiersdorf wanted to develop a balanced marketing mix (product, price, place, promotion) specifically for further optimizing of the company position in the market. Each marketing mix variable have been addressed c befully to achieve the company goals and targets. Case analysis Beiersdorf did a market research in order to understand the market and to embodiment effective marketing mix by identifying the target market segments.The research plan was to gather information using different research approaches and instruments much(prenominal) as listening directly to the consumers through focus groupings, and experimental product testing. Findings were impressive and led to significant changes into the product, product price, place, and promotions. Findings of the research regarding the product showed the company the way to satisfy a significant segment. The research showed that younger approachumers (age group of 13 19 years old) desires more dedicated face care product that offers a beautifying benefit, instead of a resolving to skin problems 1.Competitors on tap(predicate) product at that time mostly concentrates on skin problems solution rather than normal face care products. Using experimental research approach, the final product improved and changes included * The product made furthest more effective and consumer friendly * The formula apply for some products has been changed and born(p) substances have been employed * New products introduced to the market * Attractive product pack design targeting young women group used * Larger pack sizing introduced with new product description.Each of these product improvements has its own purpose conditions to attract the young women segment, Show the company commitment toward the environment, or spike the product range, to better meet the needs of the market. Pricing of the any new product has to provide quantify for money in the market and to be attractive for the targeted segment customers to buy. Several pricing strategies firms can use such(prenominal) as cost based pricing (the price cover the cost or include some profit), Penetration price (initial low price ), and price skimming ( premium price first to buy customers).NIVEA VISAGE young re-introduced with a higher price than the previous edition of the product. However, this illustrated value for money were new natural formulation has been used, packaging and extended product range 2. Nivea also took into consideration when pricing the product the targeted segment were young girls are targeted the product is bought by their mums. Which explains the reasonable and balanced pricing among the features the product offers, benefits of the product, and how much do is it cost.Nivea was the price leader effectively of this market segment were it fortunes the price level that competitors entrust follow or excision by ensuring competitive price. Beiersdorf didnt forget study regarding the place atom of the marketing mix. Place often refers to distribution strategy, place where the product will be sold. One of the important aims of Beiersdorf is reaching to their targeted customers regardless of their locations.As a result, the company used different channels to reach their customers such as retai l outlets where 65% of the product selling from the targeted customers occurs, and large grocery chain where the other 35% sales comes from 1. Smaller retailers can be reached through a wholesalers and online selling of the product through a retailer where the cost of producing small orders will be high for the company. The promotion key of the marketing mix was so important to communicate with the targeted segment customer somewhat the product availability and persuading them to buy the product 2.Two main types of promotions are there, above-the-line (TV and newspaper advertisements) and below-the-line (events, Direct mails, PR, branding, and sales promotions). Nivea was a consumer-led in the NIVEA VISAGE young promotion where the strategy reflected the lifestyle of the targeted segment audiences and the range of the available media. Nivea used below-the-line strategy in their promotion campaign. The main part of the promotion was allow the customers to experience and test the p roducts through distribution of the product samples.In addition, synergetic online magazine was launched and named FUN, YOUNG, & INDEPENDENT (FYI) to give the targeted customers of the young girls the confidence to become young women act independently. Also, social networks havent been forgotten, where NIVEA VISAGE young pages were available on MySpace and Facebook to reach as much as possible targeted audiences. election recommendations Based on the research of the market carried out by the Beiersdorf, heap of recommendations might be useful suggested * Differentiate the product specifications and names harmonise to the age group. 3 years old girls would love to have a product named on her favorite cartoon character, which will attract her to learn about the product or buy it. * Providing a completing set of tools with product or at least one tool such as a mirror as a promotion * move people to houses to introduce the product * Using above-the-line promotions such as TV and yellow pages ads. * Provide a seasonal product where in pass provide a product edition with a lime or mint fleshing smell.