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Group no: 01

MARKETING
MANAGEMET
Case Study on:

Submission Date: - 20th Aug.10


Institute of Productivity & Management, Meerut
Acknowledgement

We have taken efforts in this project. However, it would not have been
possible without the kind support and help of many individuals support. We
would like to extend my sincere thanks to all of them.

We are highly indebted to Prof. Sham Sharma sir for their guidance and
constant supervision as well as for providing necessary information
regarding the project & also for their support in completing the project.

We would like to express my gratitude towards my parents & member of


group for their kind co-operation and encouragement which help us in
completion of this project.

We would like to express us special gratitude and thanks to Prof. Sham


Sharma sir for giving us such attention and time.

Ours thanks and appreciations also go to our group in developing the project
and people who have willingly helped us out with their abilities.
TABLE OF CONTENT

CONTENT PAGE NO.

INTRODUCTION 1

Executive summary 2

SWOT analysis 3-4

CONCLUSION 5

1. ANS 6-9

2.ANS 10

3. ANS. 11-12

4.ANS 13

BIBLIOGRAPHY 14
INTRODUCTION

The NIVEA brand is one of the most recognized skin and beauty care brands
in the world. In 1980 Beiersdorf, the international company owns NIVEA and
launched its NIVEA FOR MEN range internationally. NIVEA presents 14
product categories in 150 countries. In 1993 NIVEA FOR MEN developed a
fuller range of male skin care products. In 1998 NIVEA FOR MEN brand
launched in UK at that time total annual sales of male skin care product in
UK were only 68 million pound and in 2008 it reached to 117 million pound.
It was the first who launches the balm on the market that did not contain
alcohol, which can irritate the skin. Target market includes almost every age
and category. The launch of NIVEA FOR MEN is to increase its market share
globally.
In 2008 it was re-launched as part of a plan to market the full range of
products in the UK. To do this, Beiersdorf put together a marketing plan for
the re-launch. It decided which marketing activities to use to achieve its
aims. Its aims are to understand its consumers in its many different markets
and delight them with innovative products for their skin and beauty care
needs. This strengthens the trust and appeal of Beiersdorf brands.
EXECUTIVE SUMMARY

Nivea's global platform is based on the idea that beauty is about how
consumers feel as well how they look. Andy Fry investigates.
The NIVEA FOR MEN team devised marketing strategies to deliver its
objectives would be a achieved within the designated budget set by
management team. NIVEA sought to build on and develop the approach it
had used in the past. In the 1980s, advertising in mens style and fashion
magazines along with product sampling was a major promotional tool. In the
19990s the company used radio, television and press advertising together
with sampling. Since 2000, there has been a greater emphasis on consumer
needs and an increasing use of experiential activities in the promotional mix.
Experimental marketing is about engaging consumer through two-way
communication that brings brand personalities to life and adds value to the
target audience. This helps build an emotional connection brand and
consumer.
SWOT analysis

Strengths:-
NIVEA launched aftershave balm. It was the first balm on the market
that did contain alcohol, which can irritate the skin.
NIVEA FOR MEN was the UK market leading male facial skincare brand
which gave it strong brand recognition.
The companys research showed man mainly wanted skincare
products the protected the face after saving, so researches staff with
scientific skill to develop product that men want.
Researches staff with scientific skill to develop product that men want.
NIVEA target audience is woman and NIVEA brand now extended to 14
product ranges worldwide from sun care to facial moisturizers,
deodorant and shower product.
NIVEA marketing always focused on key brands benefits high quality,
reasonable price, straight forward approach and mild skin care.

Weakness:-
NIVEAs logo is looking too simple and plain for this day and age.
The word that come to mind to product are old fashioned and out of
date.
NIVEAS target is mainly for woman, they make more products for
only woman.
NIVEA not update the product time to time.
Opportunities:-
Think of the possibility to expand revenue, increase Sales, and
boost profit margins, to out to other buyers.
NIVEA FOR MEN had seen an increase in the sales of male skincare
products and it wanted a greater share of this market.
The company wants to take to advantage of changing socials altitude.
Men were becoming more open, or certainty less resistant, of facial
skincare product.

Threat:-

Reach out to other buyer because consumer was becoming more


knowledgeable and price conscious. This often expects sales promotion
such as discount and offers.
NIVEA can make the product for all age and increase sales.
The risk of competitors entering the market NIVEA FOR MEN needed to
differentiate its product in order to ensure that, in an increasingly
completive market, its marketing activity gave positive return on
investment in term of sales an profits.
1

NIVEA used two pieces of data when preparing its marketing plane to
relaunch NIVEA FOR MAN:

(1) The marketing plan for the re-launch used past performance and,

(2)The marketing team used research data to forecast market trends.

Marketing plan:-

Successful marketing thus requires companies to have capabilities such as


understanding customer value, creating customer value, delivering customer
value, capturing customer value, and sustaining customer value. A business
plan sets the direction of a company. The marketing plan is part of the
business plan. This aims to identify, predict and satisfy customer needs. A
marketing plan shows the activities the business needs to do to achieve its
targets. The first step in a marketing plan is to look at the business, its
brands and its products. This reviews the brand's position and the state of
the market. NIVEA FOR MEN needed to know what its male customers
wanted and if any competitor products existed. To do this the company used
a SWOT analysis. This looks at internal strengths and weaknesses. It also
looks at external opportunities and threats in the market. The opportunities
included a positive change in attitude men were now likely to use skincare
products.

Beiersdorf wante0d to increase its UK market share for NIVEA FOR MEN, but
also wanted greater market penetration for male skincare products. In other
words, it wanted not just a greater share of the existing market; it wanted
to expand that market. It wanted more men buying skincare products. One
key aim was to move men from just considering skincare products to making
actual purchases. It also aimed to sell more male skincare products to
women. NIVEA FOR MEN used this key fact as a way to increase
opportunities for sales. Another objective was to develop the NIVEA FOR
MEN brand image. The NIVEA brand has always stood for good quality
products that are reliable, user-friendly and good value for money. The
brands core values are security, trust, closeness and credibility.

A marketing plan for a small business typically includes Small Business


Administration Description of competitors, including the level of demand for
the product or service and the strengths and weaknesses of competitors

Description of the product or service, including special features


Marketing budget, including the advertising and promotional plan
Pricing strategy
Market Segmentation

Market strategies:-
The NIVEA FOR MEN team planned marketing strategies to reach targets
within the set budget. The strategies focused on product development and
consumer needs. NIVEA FOR MEN promoted its re-launch through a mixture
of above-the-line methods, such as advertising and below-the-line methods,
like free samples. The promotion was linked with sport to appeal to men.
Above-the-line promotion included television and cinema adverts, which
reached a wide audience. By using links with sport, NIVEA FOR MEN aimed
to build a positive male image associated with male facial skincare. The
brand also benefited from press advertorials in popular mens magazines,
making the daily usage of their products more acceptable.

Promotions were used to attract new customers. For example, the


distribution of free samples encouraged trial of NIVEA FOR MEN products
which drove purchase. These promotions have helped build up brand
awareness and consumer familiarity which reinforce the NIVEA FOR MEN
brand presence. There is a dedicated NIVEA FOR MEN website to support its
products and provide information to educate men on their skincare needs.
To enhance the brand a tool called a Configurator was created on the
website to help customers specify their skin type and find the product that
best suits their needs.

The marketing plan begins and ends with evaluation. The final stage is to
compare the plan's outcome with its targets. Ongoing evaluation helps the
marketing team change its strategies if necessary to reach targets.
NIVEA FOR MAN promoted the new launch of its product through a mixture
of above-the-line and below-the-line promotion. The use of football was a
key element here. NIVEA used football sponsorship to help increase its
sales of NIVEA FOR MEN products because Beiersdorf not only wanted
to increase its UK market share globally but also wanted greater market
penetration for male skin care products.

In other words, it wanted not just greater share of the existing market but
wanted to expand the market also. Beiersdorf thoughts that in this
competitive market or in order to stay in the market football will be an ideal
vehicle for field marketing to increase its customer as it have already
sponsoring England football team. As we all know that football is worlds
famous game. Men will be more attracted towards this product which will be
shown by company in TV, newspaper, magazine etc used by their favorite
players. NIVE FOR MAN supported football event at a grass roots level
through its partnership with power league to build positive relationship with
men. This helped create stronger brand affinity for NIVIA FOR MEN among
men. It also allowed the brand to build and maintain a consistent with men,
which helps to drive sales. Its real long term challenge is to make this sector
of male skin care as big as it is currently for women. After the launch of this
product NIVEA FOR MEN has hold the market and also giving the profit every
year. UK sales of male products have grown by a third in just five years. As
NIVEA FOR MEN have adopted the concept of preparation is everything to
communicate the benefits of looking after our skin with a care.

NIVEA is an established name in high quality skin and beauty care products.
It is a part of a range of brands produced and sold by indeed a global
company specialization in skin and beauty care. This case study examines
how NIVEA re-launched the NIVEA FOR MEN range in 2008. This was part of
its overall plan to develop the range in UK. It shows how the company
developed a marketing plan for the re-launch and organized its marketing
activities to achieve its aims and objectives.

As per the case study, we can Analysis NEVIA FOR MEN critically with the
help of SWOT analysis:-

STRENGTH:-

It is a well-known brand and image


Promote the sales and budget not only for market but also for its
evaluation.
Its products contain large % of natural ingredients.

WEAKNESS:-
Various products are mainly available for women
Old fashioned logo and packaging
Research for market requires more studies.

OPPORTUNITIES:-
As it is well known brand it has great opportunities to develop it
market internationally by increasing its product categories.
There may be increase in its sales as it did not contain alcohol, which
can irritate the skin.
THREATS:-
Competition is growing because there are n numbers of beauty
products in the market.
International competitive market must be analyzed time to time.
CONCLUSION

NIVEA FOR MEN is a leading skin care products in the UK market designed to
enhance the skin and beauty of the consumer rather than being medicated
to treat skin problems. It is the face care market leader in 14 countries. The
company continues to build a successful business by developing new and
existing products and market as well as diversifying into new market with
new products. The study focuses and shows how the company developed a
marketing plan for the relaunch and organized its marketing activities to
achieve its aims and objectives.
BIBLIOGRAPHY
www.thetimes100.co.uk/downloads/nivea/nivea_

http://www.englishouse.ru/8.English_business/businessenglish_co
mpanies_1.html

http://www.slideshare.net/adhirock/nivea-case-study

http://www.slideshare.net/tarun_arya/nivea-case-study-548106

http://www.coursework.info/International_Baccalaureate/Business
_Studies/Nivea_Case_Study_L841740.html

http://www.scribd.com/doc/17304945/NIVEA-Case-Study

http://ivythesis.typepad.com/term_paper_topics/2010/04/nivea-
case-study-questions.html

http://www.cinescent.com/nivea.html