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Nivea case study
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3. COMPANY OVERVIEW
• Nivea is a global body care brand that is owned by German company
Beiersdorf.
• The Company was founded on March 28 1882, by Pharmacist Carl
Paul Beiersdorf.
• Beiersdorf ranked fifth in global beauty and personal care market in
2013, with a value share of 3%.
4. Umbrella Brand
Nivea is the Queen of mega brand franchises.
It’s parent company, Beiersdorf, had built Nivea into the worlds number
one personal care brand
6. • NIVEA comes from Latin word meaning snow-white. The name does
justice to the idea of beautiful skin, that the brand spreads through its
product.
• NIVEA Creme was introduced to the world in December of 1911. At
that time it was found in a tin yellow box.
• The brand presents itself as a skin care solution for both men and
women.
9. • Nivea applies the principle of point of difference.
• Nivea continuously changes its core values with constant product
innovation.
• Nivea internationalize sub-brands by creating a universal name.
• Nivea focuses heavily on research to develop new products that
caters to growing needs.
10. Direct Marketing
• Period mailings
to more than
one million
database
Non Tradition
Marketing
• Nivea beach ball
European
beaches each
summer
Event Marketing
• Sponsored
beauty events
contests in
diverse markets,
Poland, UK,
Thailand
11. Market
Segmentation
Geographic
Operating in
western countries
always thinking
about where can
expand
Demographic
NIVEA has products
within its range for
everyone from kids
to young men &
women to mature
and old people
Psychographic
Big range of products
for Different target
groups based on their
different needs and
wants
Behavioral
It is a brand that looks
after personal and
skincare needs of
people.
12. Target Market
The target market for
Nivea consist of upper
strata of the society,
mainly middle class, all
age groups for skin care.
Positioning
Nivea develops
innovate skincare
products to help
individual obtain a
healthy, youthful and
non-surgical of skin
perfection.
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14. PRODUCT
Nivea employs extensive market research to target
key market segments. The knowledge and
information from the research assists in the
formulation of new products. Nivea arranges and
implements its market research efforts with
consumers in a number of different ways. Three
strategies are applied. Firstly, the company uses focus
groups to collect feedbacks from consumers directly.
Secondly, the company gathers data from customers
via different research techniques. Lastly, the company
launched product testing activities with customers in
different geographical locations.
15. Price
As a price leader, the company sets the price
benchmark that competitors will either follow or
undercut. However in the future, Nivea needs to
constantly review prices if any competitor joins the
market at the ‘market growth’ stage of the product
life cycle in order to ensure that the products are
competitively period.
16. Place
Nivea distributes through a variety of outlets that are
cost effective, while at the similar time, able to reach
the largest possible amount of consumers. In fact, the
company’s distribution strategies also take into
account the environmental effects due to transport.
The company employs a central distribution system in
UK. The company does not distribute directly to
smaller retailers because the volume of products sold
cannot justify the high costs to do so. Indeed, the
company uses wholesalers for these smaller retailers.
Not only that, the company also decided not to sell
directly through its corporate website as the costs of
producing and distributing small orders would be too
impractical.
17. Promotion
Nivea selects promotional techniques that appeals to
the tastes of its target market through the range of
mass media available .The company believes that one
way advertising methods are less effective if
compared to communicating directly to the
customers. Therefore the company does not plan to
use any above the line promotion techniques. The
company arranges the promotional techniques to be
consumer-led through below the line promotion. By
employing various below-the-line routes, the
company implements ways of communicating to
teenagers and their mothers as well directly. One of
the critical parts of this strategy is the distribution of
products samples. These enable the prospective
consumers to touch, feel, smell, and test the
products.
18. Promotional
Strategies
NIVEA sees its responsibility to promote skin
protection and the association between healthy skin,
general fitness and well being.
NIVEA adopted separate ad campaigns for each sub-
brands, but a common message of quality and care
exist in all ads.
19. NIVEA has partnered with many Hollywood and Bollywood
actors to promote and endorse its brand.
This Photo by Unknown Author is licensed under CC BY-NC
20.
21. Presented By
D. Govardhan Reddy
CSE,MVSR Engineering College
Guided by:
Prof. SAMEER MATHUR IIM , Lucknow