PRESENTATION
AND
CASE STUDY
ON
NIVEA
MADE BY
RISHAB GOENKA
ROLL NO.26
AND
SONA SHYAMSUKHA
ROLL NO.32
NIVEA
Nivea is a global skin- and body-care brand, owned by the German
company Beiersdorf. The company began in 1911 when Beiersdorf
developed a water-in-oil emulsifier as a skin cream with Eucerit, the
first stable emulsion of its kind. The company's owner, Oskar
Troplowitz, named it Nivea, from the Latin word
niveus/nivea/niveum (meaning snow-white).
During the 1930s, Beiersdorf began producing products such as
tanning oils, shaving creams, shampoo and facial toners. The
trademark "Nivea" was expropriated in many countries following
World War II. Beiersdorf completed buying back the confiscated
trademark rights in 1997.
Internationalisation during the 1980s propelled the Nivea brand to a
wider global market
NIVEA NEW PRODUCTS
LAUNCHED
LIGHTNESS CHILDREN SUN ENERGY SAVER
SUN CREAM SPRAY SPRAY
NIVEA ROLL ON SHOWER
GEL
NIVEA NEW RANGE
NIVEA FOR MEN
The innovative light, fast absorbing formula with Coenzyme
Q10 & soothing Chamomile: Soothes the skin after shaving
Supplies whole face with 24h moisture and energy
Revitalising Cream
Supplies the skin cells with long lasting
energy Strengthens the skin’s resilience
against daily stresses Revives the skin’s
natural regenerative process
Absorbs quickly with no greasy residue
The new improved formula contains double
the concentration of skin’s own Coenzyme
Q10 which supplies the cells with long
lasting energy. While Vitamin E, Provitamin
B5 and special UVA / UVB filters strengthen
and protect the skin.
Skin Compatibility Dermatologically
Approved
REVITALISING EYE ROLL ON
Revives tired eyes with a cooling effect
Reduces dark circles, puffiness and fine lines
Absorbs quickly with no greasy residue
The cooling roller ball dispenser makes it quick and easy to
apply the serum directly onto the skin.
The light fast absorbing formula contains skin’s own
Coenzyme Q10 which supplies the skin cells with energy.
Suitable for those who wear contact lenses and glasses
Compatibility Ophthamologically Approved
Revitalising Energy Gel
Supplies the skin cells with long lasting energy
Cools the skin and wakes up the senses
Revives the skin’s natural regenerative process
Absorbs instantly with no greasy residue
The light gel formula contains skin’s own Coenzyme
Q10 which supplies the cells with long lasting energy
and Mint Extracts to cool the skin and wake up the
senses.
Skin Compatibility Dermatologically Approved
SHAVING GEL
The high performance gel is formulated
with skin’s own Coenzyme Q10
• Close and comfortable shave • Energises
skin while shaving
FACE WASH
Effectively removes dirt and excess oils
without drying out the skin
Stimulates the skin and wakes up the
senses
Softens the beard hair to improve shaving
results
BRAND HISTORY
The Beginnings
Right from its beginnings in 1911, the NIVEA brand was
fueled by a positive mixture of research, creativity, and
business know-how. In 1890, Dr. Oscar Troplowitz had
purchased Hamburg-based company Beiersdorf from its
founder, Paul C. Beiersdorf. Troplowitz’s scientific adviser,
Prof. Paul Gerson Unna, who would go on to become one
of the most prominent dermatologists in Germany, had an
eye for innovations. He brought Troplowitz’s attention to a
completely new kind of emulsifying agent called Eucerit (lit.
“beautiful wax”). Using this, it was possible to develop the
world’s first stable – and therefore industrially producible –
oil-and-water-based cream: NIVEA.
The name NIVEA alluded to the creme’s pure white appearance, derived from the Latin
word “nix, nivis” meaning snow. Apart from Eucerit to bind the oils with water, it also
contained glycerin, a little citric acid and, to lend it a delicate scent, oil of rose and lily of
the valley. Even though NIVEA Creme has been continually updated in line with the
latest scientific developments, the essence of the recipe has changed little in almost
100 years.
The Blue Tin
However, NIVEA Creme's image underwent a change only 14 years after
its market launch. The "Golden Twenties" were a period of social change
that led to a new spirit of the times. After their drastic wartime experiences,
people had a zest for life, "youth" and "leisure" were popular concepts, and
technical innovations increased the pace of living. NIVEA responded to this
feeling of a new lease on life – and adapted its brand profile to fit.
The dainty art nouveau design of the original NIVEA tin was replaced by a
much simpler look: The blue tin with the word NIVEA in white celebrated its
debut in 1925.
The NIVEA range was expanded substantially in the 1930s. Products such
as shaving cream, shampoo, and skin oil were added and NIVEA also
became a real sales hit at an international level.
Heuss-Knapp recognized the positive associative power of the brand
colors, blue and white, which she deployed in a masterly fashion in her
advertising spots.
In the 1950s NIVEA Creme had long since achieved classic brand status
and a large number of skin care products were launched under the NIVEA
umbrella.
The Umbrella Brand
In the 1980s Beiersdorf recognized the growth potential offered by the
NIVEA brand. European studies had revealed that NIVEA enjoyed a high
level of trust and that consumers would accept new products under the
umbrella of the NIVEA brand. In line with these consumer expectations,
NIVEA introduced a large number of products offering its customary high
level of quality.
This expansion strategy in the 1980s was systematically continued in the
1990s with the launch of subbrands such as NIVEA Hair Care, NIVEA
Beauté, and NIVEA Bath Care. As globalization increased, NIVEA's
focused brand management allowed it to develop into the largest skin
care brand in the world.
Today, NIVEA Creme is a large brand family with more than 500 different
products. The NIVEA umbrella brand successfully unites product lines
such as NIVEA Visage (since 1993), NIVEA Vital (1994), NIVEA Beauté
(1997), NIVEA Hair Care (1991), NIVEA for Men (1986), NIVEA Sun
(1993), NIVEA Hand (1998), NIVEA body (1992), NIVEA Bath Care
(1996), and NIVEA Deo (1991).
Business Strategy
Our Strategy: Passion for Success
Our goals are clearly defined: to continuously increase our market share
in all areas through qualitative growth and to further improve our strong
earnings situation. We intend to achieve these objectives by continuing
to successfully implement our “Passion for Success” Consumer
Business Strategy.
Superior Brands: We aim to offer our consumers tailored, high quality
products, which is why we work continuously on innovations. Excellent
point of sale displays, advertising, and the efficient use of our marketing
and sales expenditures strengthen our brands and clearly distinguish
them from the competition.
Superior Supply Chain: We manage our global activities centrally in
our global Consumer Supply Chain, which is tailored to our structure,
partners, and markets. This makes us fast, flexible, and cost-effective.
We offer our retail partners tailored solutions and deliver products to
consumers even faster.
Clear Geographical Focus: We ensure we stay close to
our markets worldwide and assign clear priorities. In
addition to Western Europe, our activities focus in particular
on regions with above average growth rates. These include
Asia, Eastern Europe, and Latin America – and especially
the countries of China, India, Russia, and Brazil.
Superior Talent In Lean Organization: We demand and
encourage performance, innovation, and optimization at all
levels of the Company. Our strengths include efficiently
aligned, central decision-making and management
structures.
REASON TO INVEST
• A world leading skin & beauty care company
• Clear focus on a few strong brands with top market positions
• Unique expertise in research & development
• Superior marketing and distribution approach: global strategy and
perfect local execution
• Outstanding financial and operational track record
• Attractive growth opportunities through strong position in growth
categories and huge potential in developing markets
FACTS AND FIGURES
2007 2008
Sales 5,507 5,971
Change in % (adjusted for
9.1 10.6
currency translation effects)
Change in % (organic) 9.1 7.5
Change in % (nominal) 7.6 8.4
Consumer 4,661 5,125
EBITDA 738 911
Operating result (EBIT) 616 797
Operating result (EBIT,
684 696
excluding special factors)
Profit after tax 442 567
Return on sales after tax in % 8.0 9.5
Earnings per share in € 1.93 2.48
Total dividend 159 204
2007 2008
Gross cash flow 477 520
Capital expenditure
(including non-current 110 161
investments)
Research and
127 149
development expenses
Employees (as of
21,101 21,766
December 31)
Shareholder Structure
Annual Document
In accordance with § 10 of the Wertpapierprospektgesetz (German
Securities Prospectus Act, WpPG) listed companies are obliged to
provide the general public annually with a document containing or
referring to all information published or otherwise made available in
the previous twelve months by the company to the general public as
per capital market requirements ("Annual Document"). In addition, the
"Annual Document" must be filed with the Bundesanstalt für
Finanzdienstleistungsaufsicht (German Federal Financial Supervisory
Authority). Beiersdorf has decided to publish the "Annual Document"
on its website to provide the interested public with easier access to
the corresponding financial information
NIVEA Houses
Themed with “moments of well-being in the centers of a bustling
metropolis” a strong team of experts offer a little pampering or simply
advice to everyone who feels in need of a short burst of uncomplicated
relaxation and well-being.
The “NIVEA Houses” will be offering a whole host of treatments revolving
around the brand’s product families, from facials and haircare to
manicures, complexion advice, and shiatsu and reflexology massages. It
will turn the NIVEA brand into a unique experience.
ANALYSIS OF CASE STUDY
AND ANSWERS TO
RELEVENT QUESTIONS
CONSUMER LED IN MARKETING
what is customer-led marketing?
In a broad sense it’s a guiding philosophy, whereby a ‘known customer’ is
placed at the heart of every decision a company takes. The principle of a
known customer is crucial, as Chris Lindsay, general manager
Broadband, VoIP and Software Services Propositions, BT Business,
explains: ‘By this we mean a type of customer you regard as valued. The
key to customer-led marketing is deciding who this type of customer is,
then focusing all your activity around them.’
The main concern of customer-led marketing is focused around what your
valued customer has to say about your company and, more importantly,
what your valued customer has to say to potential customers about your
company. Dr Paul Marsden, says, ‘It’s a concept that focuses on
achieving increased growth by putting the voice of your customer at the
centre of business decisions. ‘It’s all about how likely your customer is to
recommend you to a friend; that’s the acid test everything has to improve
recommendability.’
MARKETING MIX
When marketing their products firms need to create a successful mix of:
• the right product
• sold at the right price
• in the right place
• using the most suitable promotion.
To create the right marketing mix, businesses have to meet the
following conditions:
• The product has to have the right features - for example, it must look
good and work well.
• The price must be right. Consumer will need to buy in large numbers to
produce a healthy profit.
• The goods must be in the right place at the right time. Making sure that
the goods arrive when and where they are wanted is an important
operation.
• The target group needs to be made aware of the existence and
availability of the product through promotion. Successful promotion
helps a firm to spread costs over a larger output.
The product range and how it is used is a function of the marketing mix.
The range may be broadened or a brand may be extended for tactical
reasons, such as matching competition or catering for seasonal
fluctuations. Alternatively, a product may be repositioned to make it more
acceptable for a new group of consumers as part of a long-term plan.
The price
Of all the aspects of the marketing mix, price is the one, which creates
sales revenue - all the others are costs. The price of an item is clearly an
important determinant of the value of sales made. In theory, price is really
determined by the discovery of what customers perceive is the value of
the item on sale. Researching consumers' opinions about pricing is
important as it indicates how they value what they are looking for as well
as what they want to pay. An organisation's pricing policy will vary
according to time and circumstances. Crudely speaking, the value of water
in the Lake District will be considerably different from the value of water in
the desert.
The place
Although figures vary widely from product to product, roughly a fifth of the
cost of a product goes on getting it to the customer. 'Place' is concerned with
various methods of transporting and storing goods, and then making them
available for the customer. Getting the right product to the right place at the
right time involves the distribution system. The choice of distribution method
will depend on a variety of circumstances. It will be more convenient for
some manufacturers to sell to wholesalers who then sell to retailers, while
others will prefer to sell directly to retailers or customers.
The promotion
Promotion is the business of communicating with customers. It will provide
information that will assist them in making a decision to purchase a product
or service. The razzmatazz, pace and creativity of some promotional
activities are almost alien to normal business activities.
The cost associated with promotion or advertising goods and services often
represents a sizeable proportion of the overall cost of producing an item.
However, successful promotion increases sales so that advertising and other
costs are spread over a larger output. Though increased promotional activity
is often a sign of a response to a problem such as competitive activity, it
enables an organisation to develop and build up a succession of messages
and can be extremely cost-effective.
CORELATION IN THE 4P’S OF MARKETING MIX
For example, the company nivea has developed new nivea cream for
teenaged girl “NIVEA VISAGE”- the product element is the new product
itself, getting the price right involves examining customer perceptions and
rival products as well as costs of manufacture, promotion involves
engaging in a range of promotional activities e.g. competitions, product
tasting etc, and place involves using the best possible channels of
distribution such as leading supermarket [Link] product is the central
point on which marketing energy must focus. Finding out how to make the
product, setting up the production line, providing the finance and
manufacturing the product are not the responsibility of the marketing
function. However, it is concerned with what the product means to the
customer. Marketing therefore plays a key role in determining such
aspects as: the appearance of the product - in line with the requirements
of the market
the function of the product - products must address the needs of
customers as identified through market research.
Use the balanced marketing mix for
your business
Marketing is all the activities you undertake to promote and sell your
products or services. There are four key elements to the marketing
mix - product, price, place and promotion (the four Ps). Determining
the relative importance of each to you is critical to the success of your
business...
What’s in it for you?
Keeping customers happy and making money means you’ve got to come up
with a winning formula that works time and time again.
It's not just a matter of having a brilliant product and hoping it will sell itself.
And being the cheapest may not be enough either. Even with a world-
beating product at just the right price, if people do not know about it and
can't get hold of it you'll never be able to turn a healthy profit.
Getting your marketing mix right - ensuring that the four main components
complement and support one another - is the only proven route to long-term
business success.
Begin by looking at your business and deciding which of
the four Ps matters most to you:
It’s important to know how your customers tick and what elements
influence their buying behaviour. Think about cars, for example. Any make
can get you from A to B and they all look pretty much the same: four
wheels, engine under the bonnet, windscreen, etc. So why do customers
opt for luxury models that often cost so much more than the bottom of the
range cars? The answer is that they are buying status as well.
Depending on the service or product you are offering and the market that
you are operating in, often customers presume that cost is directly
proportional to quality, i.e. more expensive means higher quality and vice
versa.
Assuming that you do have a good product, you need to think through
how much you will charge for it. Remember, though, that your customer
has no interest in how much it costs you to make or buy or how much
profit you want. They are only concerned with what they think it is worth
to them. In other words, what value they put on it.
The salient point is that you need to provide access to your customers in a
way that suits their habits and choices. In a 24/7 world, customers are no
longer prepared to be restricted to your choice of opening hours
ANALYSIS OF MARKETING MIX
OF NIVEA VISAGE
When the marketing mix or the 4p’s been analyzed it seems the
company has very carefully balanced all the 4p’s that has provided a
platform for the company in launching and relaunching the product.
For instance the 4p’s of the marketing that are important are
Price
Place
Product
Promotion
The company started with the first p i.e. product
It carefully carried out it marketing research which included
• using focus groups to listen to consumers directly
• gathering data from consumers through a variety of different research
techniques
• product testing with consumers in different markets.
Beiersdorf’s market research identified that younger consumers wanted
more specialised face care aimed at their own age group that offered a
‘beautifying’ benefit, rather than a solution to skin problems. NIVEA VISAGE
Young is a skin care range targeted at girls who do not want medicated
products but want a regime for their normal skin.
Then moving to the next “p” of marketing mix i.e. price
Though NIVEA VISAGE Young was slightly higher than previously.
This reflected its new formulations, packaging and extended product
range. However, the company also had to take into account that the
target market was both teenage girls and mums buying the product for
their daughters. This meant that the price had to offer value for money
or it would be out of reach of its target market. As NIVEA VISAGE
Young is one of the leading skin care ranges meeting the beautifying
needs of this market segment, it is effectively the price leader.
This means that it sets the price level that competitors will follow or
undercut. As it is the price leader the higher price can be
overlooked.
Next the place strategy refers to were the product is sold
NIVEA VISAGE Young aims to use as many relevant distribution channels
as possible to ensure the widest reach of its products to its target market.
The main channels for the product are retail outlets where consumers
expect to find skin care ranges. Around 65% of NIVEA VISAGE
Young sales are through large high street shops such as Boots and
Superdrug. Superdrug is particularly important for the ‘young-end’ market.
The other 35% of sales mainly comes from large grocery chains that stock
beauty products, such as ASDA, Tesco and Sainsbury’s. Market
research shows that around 20% of this younger target market buys
products for themselves in the high street stores when shopping with
friends.
Next the PROMOTION,how the product is promoted to get the popularity
NIVEA chooses promotional strategies that reflect the lifestyle of its
audience and the range of
media available. It realises that a ‘one way’ message, using TV or the
press, is not as
effective as talking directly to its target group of consumers. Therefore
NIVEA does not plan to
use any above-the-line promotion for NIVEA VISAGE Young.
The strongest points in the marketing mix followed by NIVEA is
Product mix and promotion mix.
Product mix is the strongest because it is being used in a most effective
manner.
It has effectively identified the target consumers and their demand which is
most imp to create a product and to sell it to the customers with a profit to
survive. Before the launch of the product its has tested the product to a
group of people and made the specified changes that were required acc.
To the demand of the people before launching it on the large scale in the
market.
The company improved the product to make it more effective and more
consumer-friendly. Beiersdorf tested the improved products on a sample
group from its target audience before finalising the range for re-launch. This
testing resulted in a number of changes to existing
products. Improvements included:
• Changing the formula of some products. For example, it removed
alcohol from one product and used natural sea salts and minerals in
others.
• Introducing two completely new products.
• A new modern pack design with a flower pattern and softer colours to
appeal to younger women.
• Changing product descriptions and introducing larger pack sizes.
Each of these changes helped to strengthen the product range, to
better meet the needs of the market.
Promotion mix is also used in the best possible way. One thing that I liked
most is it being consumer led strategy
Using various below-the-line routes, NIVEA identifies ways of talking to
teenagers (and their mums) directly.
• A key part of the strategy is the use of product samples. These allow
customers to touch, feel, smell and try the products. Over a million
samples of NIVEA VISAGE Young products will be given away during
2008. These samples will be available through the website,
samples in stores or in ‘goody bags’ given out at VISAGE roadshows up
and down the country.
to enjoy their new-found independence.
• NIVEA VISAGE Young launched an interactive online magazine
called FYI (Fun, Young & Independent) to raise awareness of the
brand. The concept behind the magazine is to give teenage girls the
confidence to become young women and
Communication channels are original and engaging to enable teenagers
to identify with NIVEA VISAGE Young. The magazine focuses on ‘first
time’ experiences relating to NIVEA VISAGE Young being their first
skincare routine. It is promoted using the Hit40UK chart show and the
TMF digital TV channel.
• In connection with FYI, NIVEA VISAGE Young has recognised the
power of social network sites for this young audience and also has pages
on MySpace, Facebook and Bebo. The company is using the power of
new media as part of the mix to grow awareness amongst the target
audience.
