This report focuses on Nivea for Men, a line of products by Beiersdorf Global, a company that is headquartered in Hamburg Germany. The product analyses the current status of the product and how the company can change the marketing mix to realize market expansion and profitability. It analyzes the critical success factors and how they have influenced the growth of Nivea for Men in the market. The report shows how early entry into the market and a robust innovation system has enabled Beiersdorf Global carve itself a perfect niche in the dynamic market of men skin care products
Table of Contents
1.0 Introduction to Company. 4
2.0 Critical Success Factors and Prioritisation. 4
2.1 Changing Social Attitudes. 4
2.2 Product Diffentiation. 4
3.0 Current Marketing Mix. 6
3.1 Product 6
3.2 Price. 6
3.3 Place. 6
3.4 Promotion. 6
3.5 People. 6
3.6 Processes. 6
3.7 Physical Evidence. 6
4.0 Recommendations. 7
4.1 Recommendations for CSF1. 7
4.1.1 Product 7
4.1.2 Price. 7
4.1.3 People. 7
4.1.4 Physical Evidence. 7
4.2 Recommendations for CSF2. 7
4.2.1 Place. 7
4.2.2 Promotion. 7
4.2.3 Processes. 7
5.0 References. 8
1.0 Introduction to Company
Nivea is a German brand made up of personal care products. It is owned by Beiersdorf Global, a company that is headquartered in Hamburg Germany. The company was founded in 1882 and runs a variety of brands. Breiesdorf ventured into body-care products in the 1930s. During this time, these products were mainly familiar among women. It made its debut in the market with tanning oils, shampoos and facial cleaners. The company later introduced shaving creams and toners. During the World War, the company lost its trademark, especially in countries that cut diplomatic links with Germany. Breiesdorf worked on reclaiming the brand through the years, a fate which it achieved in the 1980s. After the reclamation of the brand, the company expanded its markets. Currently, its products are sold throughout the world (Krech et al. 2010, p. 3).
Beiersdorf’s main competitors include entities and brands such as La Prairie, Eucerin, Hansaplast, Labello, 8X4, and Elastoplast (Blachin et al. 2007, p. 8; Jones 2011, p. 4). One of the advantages that Nivea enjoys as a brand is its age in the market. The brand has existed for almost one and a half centuries, giving it much familiarity and experience of dealing with existing and potential customers. Nivea cream was introduced in 1911 and has been differentiated into a variety of products targeting different sections of the market. Bilgram et al. (2011, p. 36) notes that the company has developed a single cream into 14 types of goods including deodorants, shower products, moisturizers and sun care. Nivea for Men is a global line of products that targets men, a group that had been ignored by many cosmetic developers. One of the initial distinguishing feature of products for men was omission of alcohol, which many men find irritating to the skin after shaving. Men and women have different attitudes towards body care and the necessity of such products (Souiden and Diagne, 2009, p. 99). Therefore, creation of a line of products that is specially meant for men is likely to draw their attention. The men will try out the products to see what is unique for them, giving Beiersdorf an opportunity to expand its market coverage.
2.0 Critical Success Factors and Prioritization
2.1 Changing Social Attitudes
The company has capitalized on changes in social attitudes to introduce more kin care products for men (Wilcox 1997, p. 550 Bumrungkitjareon and Tanasansopin, 2011, p. 4). Men’s skin care products started gaining fame at the advent of the 20th
century Beiersdorf saw the changes as an opportunity and it started making and marketing skin care products for men. This saw the company increase its share in the market. The company took advantage of the changes in social attitudes. Men were becoming open to facial skincare products (Abdullah et al. 2012, p. 3). However, there was need to tailor the products and make them special for men. Nivea carried out this market differentiation by creating products that did not contain alcohol (Bilgram et al. 2011, p. 36).
2.2 Product Differentiation
Nivea has gained competitive advantage through differentiation of products. As more companies got into the Men’ skincare industry, people gained more interest in this category of skincare products (Beiersdorf., 2018, p. 4). They sought more knowledge on the products available in the market. Consumers grew more conscious. Beiersdorf’s competitors are new to the market and are now resorting to strategies such as discounts and offers to penetrate the market (Sukato & Elsey, 2009; Elsey and Sukato, 2015, p. 9). Another threat is the inability to differentiate Nivea Men products from those of its competitors. The making of the products does not entail the use of any special methods. The competitors can make similar products. Therefore, there is need that Nivea Men products are differentiated from the others in the market. In addition, the consumers must be informed of the uniqueness of these products. This can be done through marketing to ensure that sales and profits provide a return to investment.
3.0 Current Marketing Mix
3.1 Product
Figure 1 shows some of the key Characteristics of Nivea for Men products. The products include body lotions, roll-ons, shower gels, shave balm, after shave lotions, moisturizers and shaving gel.
Figure 1: Nivea Men's Anatomy Model
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3.2 Price
Nivea for men products have varying prices depending. The variations stem from factors such as differences in taxation and the cost of labor. Despite these differences, the company is committed to ensuring that the production costs put the price of the products within a range that the target market can afford,
3.3 Place
Nivea for Men is available all over the world. Many stores that sell cosmetics have most of the products. Nivea for Men has also exploited internet marketing. Nivea for Men products can be found online where customers can make orders and have the products delivered to them.
3.4 Promotion
Information on Nivea for men is available on all contemporary advertising channels. They include internet advertising, television, billboards and print media such as magazines. Sime of the promotion strategies are conducted in collaboration with other stakeholders such as supermarkets
3.5 People
Nivea men exclusively targets men. The market is made up of individuals across all age groups. It also stretches beyond Germany to other countries including those in the developing world.
3.6 Processes
Nivea for men are either delivered to the people physically by delivery service providers. This process is unique to online shoppers. Customers, especially the new ones, prefer evaluating whatever is at the store then picking what suits them.
3.7 Physical Evidence
All male products are branded ‘Nivea for Men.’ They are available to customers in blue containers. The packaging has become familiar over the years and loyal customers can notice the product from a distance.
4.0 Recommendations
4.1 Recommendations for CSF1
4.1.1 Product: Nivea should come up with more facial products. More men are becoming open to the experience. Therefore, there should be more products for each market segment
4.1.2 Price-The company should consider reducing manufacturing costs by setting up local plants for each market. Another option is exploiting regions with low labor costs such as China to manufacture the products then ship to the markets.
4.1.3 People: The company should work towards products for men in all age bracket. It can venture into special skin care products for male children.
4.1.4 Physical Evidence: The company should maintain the use of similar features when branding Nivea for Men products. This will encourage customers who only us one of Nivea’s products to try out the other Offers such as discounts ion more than one product will help it achieve this agenda,
4.2 Recommendations for CSF2
4.2.1 Place: The company should increase its presence online by setting up and running online stores in each region.
4.2.2 Promotion: The internet provides a great opportunity for marketing (Tungate 2008, p. 4). Unlike traditional methods, internet marketing can be joined to the website with links where people can easily place orders.
4.2.3 Processes: The company should focus on strengthening relations with suppliers, retailers and distributors to carry out marketing o their behalf. This can be encouraged through inventive such as discounts for retailers who conduct thorough marketing.
5.0 References
Abdullah, B.J., Nasreen, R. and Ravichandran, N., 2012. A comprehensive review of consumption pattern and strategies in cosmeceutical market with a focus on dermaceuticals in Indian market. International Journal of Scientific and Research Publications, 2(2), pp.176-179.
Beiesdorf. (2018). Skincare For Men – Nivea. Retrieved April 18, 2018 from https://www.nivea.co.ke/products/men
Bilgram, V., Bartl, M. and Biel, S., 2011. Getting closer to the consumer–how Nivea co-creates new products. Marketing Review St. Gallen, 28(1), pp.34-40.
Blanchin, A., Chareyron, C. and Levert, Q., 2007. The customer behaviour in men´ s cosmetics market.
Bumrungkitjareon, T. and Tanasansopin, S., 2011. Purchasing Intentions of Young Thai Male towards Men‟ s Skin Care Products.
Elsey, B. and Sukato, N., 2015. A model of male consumer behaviour in buying skin care products in Thailand.
Jones, G., 2011. Globalization and Beauty: A Historical and Firm Perspective. EurAmerica, 41(4).
Krech, E., Stock, E., Hirshfeld, U.m., and Anders, L.(2010).
"Nivea". Deutsches Aussprachewörterbuch. Berlin, New York: De Gruyter.
Souiden, N. and Diagne, M., 2009. Canadian and French men's consumption of cosmetics: a comparison of their attitudes and motivations. Journal of Consumer Marketing, 26(2), pp.97-109.
Sukato, N. and Elsey, B., 2009. A model of male consumer behaviour in buying skin care products in Thailand. ABAC Journal, 29(1).
Tungate, M., 2008. Branded male: marketing to men. Kogan Page Publishers.
Wilcox, S., 1997. Age and gender in relation to body attitudes: Is there a double standard of aging?. Psychology of Women Quarterly, 21(4), pp.549-565.
