Nivea is the number one brand in the world for its skin and body care products and cosmetics.
Nivea belongs to Beiersdorf, a German company that represents 70% of its turnover in the market.
The brand Nivea was created in 1911 when Dr. Oskar Troplowitz got the first emulsion of oil in water. A dermatologist recommended him to add several ingredients such as citrus fruits, lavender and rose. Oskar Troplowitz named this cream Nivea, from the Latin "nix nivis", which means snow.
In this first part of our report, we will focus on Nivea's environment. The way a brand functions is mostly defined by its environment, which can be internal or external (demographic, political, economic, natural and cultural). Firstly, we will focus on the external environment of this brand.
[...] Nivea uses a different marketing strategy than its retailers. The product is sold to retailers at a very unique price, but it can also use sales promotion strategies. This sales promotion strategy includes the loss (the fact that a product is sold at a lower price than its original cost, in order to attract a lot of consumers) or the discount (putting in place specials offers: one get one free” or for The Nivea Visage Young's strategy explains of the total sales in the market. [...]
[...] Nivea was boycotted. Today, Nivea sells its products in 170 countries out of 220. The brand is very popular but still, the occidental market is stagnating. Nivea entered new industrialized countries to be in new markets such as in China. Its objective now is to reinforce the brand in these countries where brand awareness has to be developed, and also for its internationalization in more countries. With its impressive range of products, Nivea satisfies the numerous demands of customers. It can satisfy the needs of customers of any age group (babies, teenagers, adults, seniors), and also of any gender and of many applications (sunscreen, sensitive skin, hair care). [...]
[...] The marketing strategy Market segmentation criterion Market segmentation splits the market into smaller groups depending on different criteria. To determine good market segments, the segments should have the following features: measureable, homogeneous, heterogeneous, substantial, accessible and operational. Nivea could measure the size and the potential profit of the segment for Nivea Aqua Sensation, thanks to its important part of research and to its past products sold by Nivea Face Care. The homogenous aspect within the market and heterogeneous aspect between the markets are well treated for this product because Nivea Face Care's consumers are similar within Nivea Face Care and different from Nivea for Men. [...]
[...] It's quite an affordable brand, because Nivea is not a luxury brand such as Guerlain or L'Oréal, but it enjoys a really good brand image. The economic environment: The brand was developed during the first part of the 20th century. In developed countries, it was the beginning of mass consumption. Nivea has been able to take advantage of customers' new needs. With the economic development of the 20th century, and with the improvement in the standards of living, potential customers seem to be increasing. [...]
[...] The main strategy of Nivea concerning the growth development of its SBUs is to be open in order to enter and develop in new markets. Nivea is currently developing and investing in unexploited markets, such as, young people, seniors, babies and men markets. But still, Nivea for men will be given more attention: the market of beauty care for men is very promising: there are many opportunities to generate turnovers and it's quite a new market. The marketing process for the company‘s offer of Nivea Aqua Sensation This product was launched in February 2006. [...]
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