Marketing Management | NIVEA | | | | Deanne Dharmai | 5/20/2012 | |
TABLE OF CONTENTS
1. Executive Summary … 3
2. Introduction … 4
3. Marketing Mix … 5
4. Ansoff Matrix … 8
5. BCG Matrix … 12
6. STP … 13
7. Promotion Strategies … 14
8. Conclusion … 16
9. Reference … 17
EXECUTIVE SUMMARY
Nivea as is a leading skin care brand in the world. This report is based on how Nivea uses the various marketing strategies to improve their sales, create a brand name and promote their products.
Its starts with a brief introduction of what Nivea is. It further goes on to give the history of Nivea, and how Nivea has evolved
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These market segments groups the people with the same characteristics such as gender, age, lifestyle etc. Nivea carries out market research through various different ways such as testing the products with customers in different markets; they also use focus groups to listen to what consumers want directly.
The market research team came to conclusion that the younger customers wanted skin care products that were beautifying in nature rather that give them medicated solutions. Most of the product in the market at time mainly focused on the problems that a young girl would face. This gave Nivea a market edge.
Nivea re launched Nivea Visage Young with many changes which help boost the sales to a great extent. These changes included changing of the ingredients in the products. It removed alcohol and used more natural products like mineral salts and sea salts keeping in mind that the youth preferred more natural and organic products. The packaging of the product was also changed; they used softer colors and floral prints which would appeal to the younger women.
All these changes helped Nivea strengthen their product in order to meet the needs of their target market.
PRICE
The price of any given product is based on a number of factors. The cost of production and operations is one of the major factors affecting the price of any
Companies across the world are determined to compete for the survival of their brands. The magnitude of success of the marketing and advertising strategies of a new or existing product is majorly depended upon the organization itself. As a matter of stated facts when an organization advertises its products in the market they first have to identify the relevant answers of some questions like what is the product aiming at? What benefits will the user seek by this product? How the organization plans to position itself within the market and what differential advantages will the product offer over the competitors. Because the bottom line of all marketing and advertising campaigns, is to provide the suitable collection of benefits to the end users of the product. Successful companies are usually recognized as iconic brands. Success of a
Thirdly, at the product activity level, the two Operations costs are likely to vary mainly with the Number of Units Produced and the three Sales costs are also likely to vary mainly with the Number of Units Produced.
The price comes from how much the product should sell for. In considering prices, the organization should consider the "product, customers, competitiveness, and quality."(Purdue, 2007)
5) The bargaining power of suppliers: The cost of factors of production (e.g. labor, raw materials, components, and services such as expertise) provided by suppliers can have a significant impact on a company's profitability. As such suppliers may refuse to work with the firm or charge excessively high prices for unique resources.
Consumers always base their decisions on price. The price of an item is important as it can influence consumers to purchase the product or not. If a product is out of their price range most people aren’t likely to purchase the product unless
When trying to determine the correct price, a number of factors must be considered: the market and its segments, the size of each segment, the ability to reach each segment, what distribution channels to target, whether to vary price by segment, the usefulness of promotional offerings, and whether the goal is to skim or penetrate each market.
Demand for the product is determined by many factors, like pricing, quality, advertising and distribution.
Nature Care products recognizes the unique expectations from individual consumers and have developed its niche product lines, such as make up, perfume, body deodorant, nail polishing, lipsticks, hair dyes, etc. These products intend to solve customers’ skin problems with the quality to offer specific therapy and cosmetics solutions. With the demands of various consumers Nature Care products main marketing objective is to provide a product range in each niche to fit various customers ' needs.
The quest for beauty is an endless endeavour at all times. Despite the old saying cautioning us that beauty is only skin deep, billions of dollars is spent on skin care products every year for men and women, young and old alike. In this multi-million-dollar industry, every company tries hard to maximize their profit. One of the most common methods they apply is market segmentation.
Competition within the industry as well as market supply and demand conditions set the price of products sold.
Above is the reason why Neutrogena’s positioning is to built on a “kind to the skin,” residue-free soap formulated for pH balance (distinct from soap that can be commonly found in the market by looking like a drug co). It advertises in medical journals, sends direct mail to doctors, attends medical conferences, and performs research at its own Skincare Institute. To reinforce its positioning, Neutrogena originally focused its distribution on drugstores and avoided price promotions.(the way it implemented its strategies)
The prices of drugs by Pharmaceutical companies are dependent on various costs such as Production, Cost of R&D, Marketing & Distribution and Demand for the Drug4.
Cosmetics fall into their own marketing arena. It is the only other product, besides food, that consumers are in constant need of because cosmetics are used in our everyday lives. Cosmetics, in order to have any type of customer base, are made with great quality in mind. With all these different brands offering the same types and qualities of products, Dove had to branch out into another important segment of this cosmetics market. Cosmetics are being used just as much by men as they are used by women, and it is important that a cosmetics product line can compete in the market of men’s products as well. Dove’s main competitors, Nivea, L’Oreal, and Garnier, have not crossed into making men’s products. The lack of men’s products gives Dove a competitive advantage in their arena. Dove has dominated in this category through their marketing and different direction.
Many cosmetic brands are popping up recently, perhaps, due to the increasing consumers of products that beautify and enhance the physical appearance of a person. Even though the market is already full of the said cosmetic brands, the company L’Oreal Groups could still be considered as the leading supplier of cosmetics and hair-color. This study is a brief overview of the marketing concepts and strategy of the said company. The company profile will be presented to be able to give a clear view of the market to which the company belongs to. An internal and external (SWOT) analysis of the company will also be provided in this paper. Another area will be specifically devoted to