Nivea Case Study

Pages: 4 (1709 words)  ·  Bibliography Sources: ≈ 3  ·  File: .docx  ·  Level: Master's  ·  Topic: Business - Advertising

Nivea Case Study

Describe what is meant for Nivea to be considered 'consumer led' and if they are? (5 marks)

In the context of the case study, it actually has two meanings. The first is that of geographic proximately to their customers. The second way this term is used in the case study is from a perceptual, preference, promotional and messaging standpoint. The point is made that Nivea sees themselves as customer-centric and driven by the preferences and perceptions of their customers in all areas of their business. Examples are given how being "customer led" or customer-centric has redefined the product strategies of the NIVEA VISAGE Young series of skin and beauty products, re-architected distribution channels, and also redefined messaging and public relations efforts as well.

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This customer-centricity also is invaluable in the product concepts NIVDEA VISAGE Young is based on. Moving away from a medication-based message for treating skin problems, Nivea with this new product line addresses the aspirational motivations of younger women and gives them an opportunity to get the same skin treatments as older women. This is an insightful move as aspirational motivations of young girls in the primary target market for NIVEA VISAGE Young are focused on independence and defining their own identities. By offering a skin treatment program that is comprised of its products, Nivea can capitalize on how much these younger women want to emulate the older ones. The decision to change the packaging, concentrate more on eco-friendly messaging, use social network sites and completely change specific promotional channels to be more relevant and interesting for the NIVEA VISAGE Young segments further reflects this commitment and how this value resonates through the company.

6.2 Explain the key competitive forces in Nivea and why they are relevant? (5 marks)

TOPIC: Case Study on Nivea Case Study Assignment

There are several key competitive forces within Nivea that are very relevant to their current sales and future growth prospects as defined in the case. First and most significant is the major shift in the demographics of their target markets, with the 13- to 19-year-old young women representing a growing market. The prevailing mindset of competitive brands in addressing the needs of this market concentrates on medical treatment and a medication-based value proposition. Not only are the demographics of this market segment critical, so are the psychographics and attitudinal values they have. The competitive factors of having skin care products that are consistent with their views of the environment, supporting and sustaining their beliefs in everyone doing their part of minimize the impact on the planet, is key. This is a competitive dynamic that is changing entire industries and will certainly change the skin products supply chain, distribution channels, pricing and promotional strategies as well. With the shift in product formulas away from alcohol to sea salts and minerals, Nivea is sending a message to its target markets that is understands and respects their priorities. Consumer attitudes, preferences and beliefs are very strong competitive forces in any market, and Nivea has wisely taken advantage of them in their product design. Additional competitive factors include the distribution channel implications of re-launching a new skin care products, keeping pricing high to connote a strong price/value message, and defining its promotional strategies, capitalize on the competitive force of social networking with is very prevalent in the market segments served.

6.3 What are the key parts of Nivea's marketing mix? Explain how each works with the others. (10 marks)

The key parts of the Nivea marketing mix are first, the product, as it has been redefined and revised formulas created specifically for the preferences and wants of the NIVEA VISAGE Young segment. The product has also been redesigned to send a message of sustainability and corporate social responsibility, a critical factor for the values of the target market of young women. By changing the product so drastically at the formula level including sea salts and minerals, Nivea earns credibility in the market by making their product reflect their market positioning. The product, in the case of this specific marketing strategy, serves as the catalyst to unify all other factors in the marketing mix.

The pricing is high-end which is consistent with the distribution channel strategies of selling the majority of the skin treatment products through high street retailers. This higher price also serves to create an effective price/quality relationship which further adds to the differentiation fo the skin treatment.

The distribution strategy concentrates on high street retailers and also through traditional multi-tier distribution as well. The high-street retailers are also very effective as a channel for selling to mums who purchase these products for their younger daughters as well. The combining of a direct model to high street retailers and the multi-tier distribution model work given the gross margins that the higher price points allow.

The promotional strategies are the most customer-led of all four aspects of the marketing mix. From the use of social networking sites to promote the skin care products and its benefits to the launch of their own online magazine FYI (Fun, Young and Independent) and promotion on Hit40UK, Nivea has done an excellent job with this component of their marketing mix.

6.4 Explain why the balance of Nivea's marketing mix is as important as any single element. (10 marks)

Trust is what is at stake with the launch of the NIVEA VISAGE Young product line for young women, namely the opportunity to be their trusted advisor for skin care products today and well into the future. The product, pricing, promotional strategies and distribution channel decisions all must be synchronized together for trust to be earned and kept over time. All of these aspects of the marketing mix must also interlock and support the messaging and unique value proposition of the skin care product as well. Consider how effective a well-planned and executed integrated marketing communications strategy is in promoting a brand and increasing sales. Examples from other industries abound, including those of Walt Disney Company, Toyota and others. What Nivea must do is concentrate on keeping each aspect of the marketing mix clearly consistent and complimentary to each other to enable integrated marketing campaigns to be effective over time.

Secondly, the balance of each aspect of the marketing mix must also be maintained, as what is really being sold is not just the skin treatment, but young, healthy skin. The benefits of the skin treatment must be sold even more effectively than the chemical and natural ingredient composition of the product itself. For this reason, the marketing mix must stay in balance. The balanced use of product, price, promotion and place will lead to more consistent product positioning and a reinforcing of the benefits of the skin treatment, not just the features of it.

Third, the identity of the skin treatment as a brand unto itself, specifically NIVDEO VISAGE Young is only as strong as the integration of all the marketing mix components together. When this level of marketing mix integration is achieved, the brand is successfully launched and conveys its own unique identity in the market. The balance of marketing mix components sets the foundation for an effective branding strategy over time.

In conclusion, all elements of the marketing mix must be coordinated with one another to ensure consistency of branding, focus on benefits over just product features, and clarity of communications. When one element of the mix dominates others, the balance of a brand and its identity begin to suffer and eventually become confusing to consumers. Staying clear and on message requires a balanced marketing mix.

6.5 Analyse the marketing mix for NIVEA VISAGE Young. What are its strongest points? Explain why you think this is so. (20 marks)

The product is by far the strongest area of the marketing mix, as the company has invested heavily in the redefinition of product attributes to align to the unique preferences and needs of the young women in the NIVEA VISAGE Young segment. The modifications to the product were more than just to move away from a medication-based positioning it would have had with the alcohol content in the formula; it was necessary to redefine the formula to substantiate the claims made in the promotional strategies and support the premium price as well. Product, as a result, is a very strong catalyst in the overall marketing mix. The changes made to the product made the entire positioning at the high end of the market and the aspirational messaging to younger women effective.

A secondary marketing mix factor is the pricing. Instead of dropping the price and attempting to gain market penetration by undercutting competitors, the company has chosen to pursue a high-end product position by increasing price. This is a very effective strategy for communicating the price/quality relationship inherent in the new product positioning, in addition to providing gross margins to pay for the high street distribution critical to the company's success. The pricing position also defies price elasticity concerns as well, namely choosing to increase prices in an inelastic market. Price increases are more… [END OF PREVIEW] . . . READ MORE

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Nivea.  (2010, October 26).  Retrieved September 24, 2021, from https://www.essaytown.com/subjects/paper/nivea-case-study/643

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https://www.essaytown.com/subjects/paper/nivea-case-study/643.