Nivea for men is one of the highly recognised beauty and skincare brands all over the world. The brand for men was launched in 1980 by Beiersdorf company. By 1993 the company had developed different varieties of male skin care products. In the UK, Nivea for men was launched in 1998. It was the first brand that did not have alcohol in the market and hence could not irritate the skin. The target market for Nivea includes almost every age bracket in the world. Through its two critical success factors, Nivea for men has been able to claim a wide market share in the men’s skin care industry. An effective marketing mix has seen the product maintain and develop innovations that best suit the consumers’ needs. However, some alterations need to be considered on the product’s marketing mix to ensure that Nivea for men leads in both customer satisfaction and market dominance.
Table of Contents
1.0. Introduction ……………………………………………………………….…………………5
1.1.Men’s Skin Care Industry and Nivea for Men (NFM)…………………….………….5
1.2.Nivea for men competitors…………………………...…...…………………………...5
2.0.Customer segmentation…………………………………………...…...………………………5
2.1.Gender………………………………………...……………………………………….6
2.2.Age………………………………………………………………...…...………….......6
2.3.Income……………………………………………...…………………...….………….6
3.0.Critical success factors……………………………………………………......…………….…6
3.1.The Brands (CSF1) ...…………...……………………………………...…...……...…7
3.2.Digitalization (CSF2) ……………….………………………...……………………...7
4.0.The NFM marketing mix……………………………………………………...…...…….……8
4.1.Product……...…………………………………………………………...…………….8
4.2.Place………………………………………………………...…...…………………….8
4.3.Price…………………………………………………………………….…………......8
4.4.Promotion……………………………………………………………………...……....9
4.5.People……………………….………………………………………………...…….…9
4.6.Process…………………………………………………………………...….…...……9
4.7.Physical evidence…………………………………………………..…………….……9
5.0.Recommendations………………………………………………………….……………...…10
5.1.Three of the 7Ps altered for CSF1……………………………………………….…...10
5.2.Four of the 7ps altered for CSF2………………………………………………….….10
6.0.Conclusion……………………………………………………………………………......….10
7.0.Reference list……………………………………………………………………………...…12
1.0. Introduction
1.1. Men’s Skin Care Industry and Nivea for Men (NFM)
Over the past decade, the men’s skincare industry has developed considerably. Previously, only women products were available in many varieties. Either, currently, men products are on the increase ranging from moisturisers to aftershaves. More and more companies are joining the industry as there are no barriers to entry. As a result, there is an increase in competition which has led to more developed and innovative men skin care products. Among the dominating companies in the industry is the Beiersdorf company of Germany producing Nivea for Men. Though its effective customer segmentation, critical success factors, and appropriate marketing mix, the Nivea for Men products are widely being used and preferred over other substitutes (Shahrokh and Dadvand, 2014).
1.2. Nivea for Men Competitors
Though Nivea is primarily determined to expand its global coverage, other skin care brands are attacking its strength to achieve its goals. The two dominant competitors include Johnson and Johnson cream and ponds cold cream. Just like Nivea, they both have excellent distribution coverage and deep pockets. However, Nivea has used advanced market research tools to compete favourably with these competitors (Bartlett and Beamish, 2018).
2.0. Customer Segmentation
Driven by the Nivea for Men marketing objectives, which include to expand, sell more and creating a user-friendly brand, Nivea marketing researchers have developed a right customer segmentation. They first identified that men wanted a care product that would protect their skin after shaving. To encounter this, they developed NFM solely to fulfil men’s needs globally. Moreover, the customers of Nivea for men have been segmented by occupation, gender and age (Athavale, 2015).
2.1. Gender
As the name suggests, Nivea for men is a product exclusively for men. It consists a range of products including deodorants, roll-ons, face wash, moisturiser, shower gel and shaving gel.
2.2. Age
The Nivea for Men products targets men within the age brackets of 18-25, 25-35, and 35-55.
2.3. Income
Most of the Nivea for men products are not highly priced due the consideration of the age bracket of the targeted customers. However, for the 25-40 segment. There exist some premium products since most of the customers are young working professionals.
In general, Nivea targets both young and working professionals who currently use Nivea products as well as those who use substitute products on the basis of effective prices.
3.0. Critical Success Factors
The critical success factors are the limited conditions, variables or characteristics that seriously have a positive impact on the efficiency, viability, and effectiveness of an organisation. Two of the Beiersdorf company critical success factors that have seen the company realise market dominance in the sale of Nivea for Men products include brands and digitalisation.
3.1. The Brands (CSF1)
With over twenty brands in the global market, the company is more closest to satisfactorily meeting all the male customer needs. This significantly contributes to achieving the company’s goals and objectives of serving the customers. The brands are of quality, consistency and trust (Steenkamp, 2017). The highly rated NFM brands include Nivea for Men Post Shave Balm, Nivea for Men Active 3 Body Wash, and Nivea for Men Hair and Body Wash. However, recognised efforts have been put to see the other brands make it through the competitive industry. Slogans such as “it starts with you” have been used to promote these brands.
3.2. Digitalization (CSF2)
Digitalization in the company has been a priority for all the years. The global digital presence has led to increased communication with male customers hence strengthening brand loyalty. The co-operation with the e-commerce platforms has enabled Nivea for Men products gain more recognition and thus an increase in sales. For instance, in 2017, market business over e-commerce platforms grew by over 40% particularly on Amazon and La Prairie (Athavale, 2015). These online platforms have provided the company with a wide base of customers all over the world making Nivea for men products achieve a 15% total increase in sales in 2017.
The digitalisation, as well as the availability of various NFM brands, have made the Beiersdorf company achieve qualitative growth and significantly expand its revenue base.
4.0. The NFM Marketing Mix
The appropriate combination of marketing mix provides a product with the appropriate strategy to reach the target group (Rüth and Netzer, 2016). The Beiersdorf company has a developed mix that suits Nivea for men, the target market and meets the business’s objectives.
4.1. Product
Beiersdorf has made Nivea for men products more consumer friendly and effective. It has continuously conducted researches to identify the customer needs. This has been done through focus groups that listen to consumers, product testing in various markets, and more specifically in their website section named “what men want.” The company has developed different products concerning men’s needs ranging from the roll on, face wash, shaving gel and many more others. To own competitive advantage in the market, the company has launched a unique quality product of Q10 revitalising coenzyme which is very significant for the skin (Cahill, 2017).
4.2. Place
The company has been involved in the use of distribution strategies such as the B2B strategy to ensure that their products are conveniently available to the male customers. Main sales are retained through retail chains and stores and also in the e-commerce websites such as Amazon hence improving on customers’ convenience (Reddy and Reinartz, 2017).
4.3. Price
The penetration pricing of Nivea for men products has seen the company attain a large market share and maintain a maximum number of customers. This enables the products to beat their substitutes in the market.
4.4. Promotion.
The company selects promotion uses promotional strategies that reflect its audience lifestyles. It incorporates both direct and indirect promotional services. Directly, NFM products are advertised in Tv’s and newspapers and indirectly through events and trade fairs.
4.5. People
The existence of over twenty varieties of the NFM products is a true justification that Beiersdorf has prioritized fulfilling customer needs. This has been achieved through extensive market research and led the male products to own competitive advantage over other substitutes in the market.
4.6. Process.
The Beiersdorf company has been keen on reducing the working capital particularly in 2017 to maximise profits and reduce costs of production. Also, it has increased the number of sale agents and developed efficient payment systems to ensure the continued flow of business operations (Steenkamp, 2017).
4.7. Physical Evidence
The company also has retail stores that are equipped with Nivea products and service individuals who directly talk to the clients. Also, they have sale agents in major supermarkets representing their products. Moreover, through websites, the social media and blogs, the company has improved the awareness of the NFM varieties (Steenkamp, 2014).
5.0. Recommendations
5.1. Three of The 7Ps Altered for CSF1
The company should ensure that the NFM brands available in every part of the UK and the world at large to reach all male customers. (place). Also, they should ensure that they provide all the brands in their retails and other supermarkets for the customers to choose the brand that best fits their needs (people). More significantly, their advertisements should cover each brand separately to enhance effective customer choice (promotion).
5.2. Four of The 7Pz Altered for CSF2
More research should be done through online questionnaires and other mechanisms to collect data that can be used to develop more products fitting the customer needs, (product). Moreover, the company should establish a 24-hour support team on their websites to ensure that client concerns are responded to immediately (process). Furthermore, discounts should be introduced for mass buying in e-commerce sites since it is one of the growing markets for products, thus creating fair prices as well as increasing sales (price). The company should also create an NFM website where only the male products are promoted and increase activity on social media and blogs (physical evidence).
6.0. Conclusion
Nivea for Men products has attained a significant position in UK market as well as the Global one. Through the production of different varieties, the company has proved that it best understands and addresses the male skin needs adequately. By putting together an effective marketing mix, Beiersdorf has brought a range in the market. However, more needs to be done to address the above recommendations to serve the male customer best.
7.0. Reference list
Athavale, S., 2015. Study of case studies based on innovative marketing methods followed by companies and retailers globally. PARIDNYA-The MIBM Research Journal, 3(1), pp.73 85.
Bartlett, C.A. and Beamish, P.W., 2018. Transnational management. Cambridge University Press.
Cahill, J., 2017. Making a Difference in Marketing: The Foundation of Competitive Advantage. Taylor " Francis.
Reddy, S. and Reinartz, W., 2017. Digital transformation and value creation: Sea change ahead. GfK Marketing Intelligence Review, 9(1), p.10.
Rüth, R. and Netzer, T., 2016. Successful cooperative marketing: Leveraging a powerful and diverse marketing tool. The Marketing Review, 16(4), pp.405-418.
Shahrokh, Z.D. and Dadvand, A., 2014. Investigating the relationship between brand development and company image;(case study: Nivea products). Kuwait Chapter of the Arabian Journal of Business and Management Review, 3(10), p.23.
Steenkamp, J.B., 2014. How global brands create firm value: the 4V model. International Marketing Review, 31(1), pp.5-29.
Steenkamp, J.B., 2017. Global Brand Strategy: World-wise Marketing in the Age of Branding. Springer.
