Questions
1. What were the key steps in maintaining Nivea's
leading position in the global facial care market?
Answers
Answer:
Mini Case Study Presentation on
2. Introduction • a German personal care brand that specializes in skin- and body-care. • one of the subset of brands manufactured and offered by Beiersdorf, and also one of the largest skin care products providers in the world.
3. History
4. Why BLUE? • This strategic program is focused on strengthening our brands, increasing our innovative power, expanding our presence in the emerging markets, and on our dedicated employees.
5. Umbrella Brand Nivea is the Queen of mega brand franchises. It’s parent company, Beiersdorf, had built Nivea into the worlds number one personal care brand.
6. One the market segment is identify, the company create a products to target these segment of consumers. Later, the company design and carried out mutually consistent and internally supportive marketing mix to deliver the value proposition, and products to the end users. The marketing mix is designed to position the company attractively and appeals to the young teenagers. Overall, the process of STP and the framework of marketing mix (i.e., the four Ps of marketing) are successfully implemented by the company.
7. Nivea employs extensive market research to target key market segments. The knowledge and information from the research assists in the formulation of new products. Nivea arranges and implements its market research efforts with consumers in a number of different ways. Three strategies are applied. Firstly, the company uses focus groups to collect feedbacks from consumers directly. Secondly, the company gathers data from customers via different research techniques. Lastly, the company launched product testing activities with customers in different geographical locations.
8. PRICE As a price leader, the company sets the price benchmark that competitors will either follow or undercut. However in the future, Nivea needs to constantly review prices if any competitor joins the market at the ‘market growth’ stage of the product life cycle in order to ensure that the products are competitively priced.
9. Nivea distributes through a variety of outlets that are cost effective, while at the similar time, able to reach the largest possible amount of consumers. In fact, the company’s distribution strategies also take into account the environmental effects due to transport. The company employs a central distribution system in UK. The company does not distribute directly to smaller retailers because the volume of products sold cannot justify the high costs to do so. Instead, the company uses wholesalers for these smaller retailers. Not only that, the company also decided not to sell directly through its corporate website as the costs of producing and distributing small orders would be too impractical.
10. Nivea selects promotional techniques that appeals to the tastes of its target market through the range of mass media available. The company believes that one way advertising methods are less effective if compared to communicating directly to the customers. Therefore the company does not plan to use any above-the-line promotion techniques. The company arranges the promotional techniques to be consumer-led through below the line promotion. By employing various below-the-line routes, the company implements ways of communicating to teenagers and their mothers as well directly. One of the critical parts of this strategy is the distribution of product samples. These enable the prospective consumers to touch, feel, smell and test the products.
11. What were the key steps in maintaining Nivea's leading position in the global facial care market?
12. • Nivea changed its logo, packaging appearance to look modern and global. • It adapted ergonomic designs to comfort its consumers for using. • Nivea increased length of its product line by introducing its products in new areas. It switched from being a skin cream to being skin and person care & cosmetics, for both genders. • I0