Nivea Case Study
Marketing Foundations Professor: Vernette Sinaise Nandy Nedd 1. A Marketing plan is defined as a plan to identify and then meet consumers’ requirements. NIVEA FOR MEN developed its marketing plan after doing a market research. Two pieces of data that NIVEA used when preparing its marketing plan to re-launch NIVEA FOR MEN are: a.
Past performance data of NIVEA FOR MEN in the UK to see how the brand was performing and the promotion they used and who was buying the product, they were able to determine that women were buying for the men which allowed them to shift their focus to really targeting the men so they would not only look but buy the products b. Forecasting data so that they would be able to create a new marketing strategy. Due to their research they were able to determine that men are becoming much more interested in male skin products and that there was a demand for them which allowed them to be even more innovative in their product. . NIVEA used football sponsorship to help increase its sales of NIVEA FOR MEN products because it helped create stronger brand affinity (how well customers identify with the brand) among men. It also allowed the brand to build and maintain a consistent dialogue with men, which help drive sales. Research had indicated that women were more likely to buy skin care products than men. NIVEA needed to build a positive male image to associate with its products; football was a likely choice since it’s the most popular sport in the world.
They promoted their product through a mixture of above- the- line (direct expenditure on advertising such as television and cinema adverts) which reached a wide audience and below-the-line (indirect expenditure such as free gifts, PR or competitions) promotion. The strategy worked because sales grew from 68 million pounds to over 117 million in ten years from 1998 to 2008. 3. SWOT analysis of NIVEA’s position just before the re-launch of NIVEA FOR MEN Internal| Strengths| Weaknesses| 1.
NIVEA FOR MEN was the leading male facial cream brand in the UK market which gave them strong brand recognition, because of this re-launching the brand would not affect the company but will help increase its shares in the UK’s male skin care market. 2. The company has a strong financial base since it was in operation for ten years so it has the resources to put together a strong marketing campaign 3. They had well educated staff with relevant skills and researchers with the scientific skill to develop products that men want and marketing staff with the skills to help promote the products effectively| 1.
NIVEA FOR MEN introduced the product in a limited range since their focus was mostly women. 2. They had no special outlets just for the men’s product 3. There is no set model for marketing | External| Opportunities| Threats| 1. There has been an increase in demand for male skin care products. 2. Men are becoming more open to facial skin care products| 1. As demand for male skin care products increase, more competitors are entering the market to take advantage of that. 2. Consumers are becoming more knowledgeable and price conscious, they expect sales promotions like discounts and offers which could affect profit. SWOT Analysis Summary| This would help to better evaluate the business and products so that the resources can be better utilized. | 4. The marketing plan for NIVEA FOR MEN was very effective because the re-launch met its overall target despite the economic climate. The performance indicators show the success of the re-launch. The company wanted to increase their market share and as of 2008 NIVEA FOR MEN is the market leader in many countries and is gaining additional market share; sales in the UK for NIVEA FOR MEN grew from ? 68 million to ? 117 million with the male facial product growing from ? . 3 million to ? 49 million; NIVEA FOR MEN has an extremely positive brand image with the consumers compared to the other brands as they have voted them Best Skin Care winner five years running in the popular men magazine FHM; and the company has expanded the product range and improved the existing formulations based on consumer feedback and following extensive product innovation and development. The company’s use of great above-the-line and below-the-line promotions focusing on sports with its football sponsorship really helped them reach their target market i. . men, in a very personal way and built a positive image associated with male facial skin care. Conclusion: Nivea for men is still riding on a wave of success winning many awards for its male skin care products, their website is a place where men can go to find everything they need for proper grooming, and they even show you how to shave. The re- launch was a brilliant idea. Reference: http://www. niveaformen. co. uk/index. html MARKETING FOUNDATIONS CASE STUDY PROFESSOR: VERNETTE SINAISE STUDENT: NANDY NEDD NIVEA FOR MEN SUCCESS
