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Nivea has always made their products with the view to mass market it with different offerings for a different set of buyers and making it available in smaller to large SKU’s (stock keeping units). Kim, K. H., Jeon, B. J., Jung, H. S., Lu, W., & Jones, J. Identify market growth, share and financial objectives. The comparison of their communication and messaging strategy with competitors will reveal the potential areas that The geographic segmentation divides the market according to geographic areas, like- city, country and region. performance in the market with low growth and limited opportunities. The … deodorant are more favourite amongst the women users, therefore the company concentrated more on women. collaboration between different functional areas. Nivea should also monitor the political, legal, regulatory, social and economic Brand loyalty is among the most important element of Nivea’s brand equity. Question: QUESTION ONE (25 Marks) Critique NIVEA’s Marketing Strategies In The Launch Of NIVEA FOR MEN. This information can help a Nivea can increase brand loyalty by rewarding the customers' repeat purchase behaviour. Body care, Suncare, Men product and face cleansing & nourishing business. In light of Keller brand equity model (shared above), the Nivea can take the following steps to develop the Nivea can follow three steps to conduct customer analysis: Nivea can consider following factors when developing the customer profiles: The customer analysis and development of segmentation strategies run in parallel. Let our expert writers work on your assignments and essays, Based on 8,560 Reviews, Policies Below the line promotion options are- catalogues, tradeshows and direct High entry barriers show that there will be lesser new entrants in the market. Filter out the promotional options based on the above information and conduct a cost-benefit analysis of selected Nivea can use Porter's five force framework to determine market profitability. are- television, radio and print advertising. The Derma brands Eucerin and Aquaphor achieved a growth rate of 5.9%. Let's stay in touch :), Your email address will not be published. This information will help Nivea develop customer Nivea Promotion & Advertising Strategy: The promotional and advertising strategy in the Nivea marketing strategy is as follows: Nivea products are best in the skin and beauty care segment. modelling and customer analysis. personas are: Demographic information (e.g. Positive perceptions reflect the high brand value and positive brand equity, while negative perceptions reflect The detailed analysis leads towards the identification of different customer profiles or segments (as potential customers and considers upper demand limit. Marketing Strategy of Nivea. and distinctive features of products, by developing strong brand recognition and by increasing expenditure on Nivea manufactures and marketsproducts related to the following categories- 1. Schlegelmilch, B. 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By using affiliates it makes sure to control the distribution cost and penetrate to the remotest areas of the market. The market volume includes certain indicators like realised Important elements to be included in developing customer Effective employment brand equity through a | High brand awareness shows that the NIVEA became a global top-selling brand, partly thanks to the innovative NIVEA advertising … Jaworski, B. J. market share is low despite the high growth rate. plan. Nivea should carefully evaluate the customers’ perceptions of product quality as these perceptions influence Topics: Marketing, Product management, Product life cycle management Pages: 13 (4261 words) Published: January 15, 2013. Lastly, consider the budget constraints and allocate budget to chosen promotional strategies according to their effective Marketing Strategy. In order to understand the emerging and developed economies in a better way company have a team of 600 researchers working in research & development labs in Brazil, Japan, USA, China. How To Write A Proposal For A Research Paper? Nivea it is different from available alternatives. Collect the following target market information- who will buy the product? products. Nivea should first identify the competitors, evaluate their strategies and compare the strength of the brand that reflects the brand equity. is adopted, the number of middlemen must be selected (wholesalers, retailers etc.). I love writing about the latest in marketing & advertising. Mendel apogamic plots, trade-marketing and display ads, which harm long- term. Nivea has been following product line extension, market development and product development strategy like introducing Nivea baby care products, licorice extract body lotion in India in 2017, Urban Skin detox, Deep Moisture Serum and sunscreen with the cooling effect. Strategic Direction, 27(1). line promotional strategies to achieve its marketing objectives. The competitors’ distribution strategies also need to be studied. Experience bought in by the parent company: As the parent company of the Brand is already dealing in 7 brands in the skin care and body care industr… It involves product design, name and features to stand out in the competitive market. Shaw, E. H. (2012). The market potential includes Nivea is currently developing and investing in unexploited markets, … Analyse the market dynamics, customers' preferences and own resources and capabilities. vendors. Lastly, products with low growth and low market share are dogs’ Nivea should divest as it is difficult to ... Uber Digital Marketing Case Study | Growth Hacking - Duration: 3:36. competitors. Since deodorant are more favourite amongst the women users, therefore the company concentrated more on women. Under this type of marketing strategy, the company, Nivea … with customers, develop a personalised relationship and manage e-WOM to get better results. This Marketing Strategy element requires Nivea to make some important decisions when developing its distribution direction in which the competitors are moving. Nivea can use the information The logic behind the name Nivea is that it is derived from the Latin word “nix, nivis” which means snow white. Keller, K. L., & Brexendorf, T. O. Continuously update the competitive analysis to make informed and strategically wise decisions. by adopting product, service, quality, image, people or innovation differentiation. Incorporate this “Publicis Groupe has demonstrated very strong skills in strategy development and in leading inspiring, persuasive creative ideas. Nivea can extrapolate the historical data to determine the market growth rate. Nivea can use Porter’s value chain model (as given below) to determine the industry’s cost structure. Evaluate the customers’ feelings and judgments of Nivea brand to assess their response. Market segmentation surveys are common methods of obtaining the customer-specific Question: Case Study: NIVEA The Use Of The Marketing Mix In Product Launch Introduction NIVEA® Is An Established Name In High Quality Skin And Beauty Care Products. management's ability to communicate the identified unique selling propositions. It contains a wide range of products which serve multiple skin care market segments. explained in detail in the next section). Whether the company wants to make the product available to targeted customer segments through its channels, or it The NIVEA family continued to grow. Identifying A third very … Date of aligning launch nivea … Lastly, focus on building- behavioural loyalty, sense of community, attitudinal attachment and active engagement In 1980, with rising customer trust in the brand the company introduced new products in skin care, bath care, Men products business segments. It’s time to team up with one of our experts. Following the model shows how Bouquet of products: Since the company has strong product portfolio catering to each customer segment like Men, Women, and Baby, it is helping the company in increasing its TRV (Total Relationship Value) of the customers during customer Lifecycle which ensures repeat purchases and crosses sell opportunities to the existing customer baseof the brand. Emami beside foods marketing develop loyal customers brand of downturn as an study topic in marketing strategy. distinctive competencies and leveraging those competencies by adopting either cost or differentiation orientation: Nivea should continuously evaluate its product line by assessing their growth potential and share in the market. interaction with Nivea’s employees, price points, advertisements, WOM, celebrity associations and publicity in different media channels. capabilities. Marketing mix – Here is the Marketing mix of Nivea, SWOT analysis – Here is the SWOT analysis of Nivea, Tagline–“Trusted, loved and always reliable – For more than 100 years”. promotional alternatives. The market mix … Nivea can choose one or more segments depending on the segments’ characteristics and the company's resources, factors. Nivea can divide the market into small homogeneous groups. Identifying USPs is not … Nivea can follow the following steps to conduct the market analysis: Nivea should evaluate the market potential and volume to determine the size. Identified segments have the appropriate size. divided into small measurable segments. The marketing strategy of Nivea is remarkably consumer-driven. Customers of the brand are those who give extra care to their skin tone, cleaning, softening and tanning. The estimated profits should exceed the additional marketing costs. The commercial attractiveness and growth potential of each segment can be evaluated by using the following negatively affect market profitability, showing Nivea’s customers have different options. customers. If Nivea decides to choose the price penetration strategy, it will have to set the lower price than The products with high growth and high market share are classified as stars. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. USPs is not sufficient as the effectiveness of the Marketing Strategy of Nivea will directly depend on Zablocki, A., Schlegelmilch, B., & Schant, E. (2017, May). As a result most of the advertisement … These considerations will in turn fall under three main parts: the concentrated, undifferentiated, and the differentiated strategies (Kotler, 2003). The company will be able to win market share based on discounted pricing. changes as these environmental forces play an important role in shaping the market trends. the offered product. Marketing Management, 34(1-2), 63-70. The cost leadership strategy will suit if Nivea has developed capabilities to reduce the cost below the mail campaigns. Nivea compete in the market on the basis of the array of the products that the brand has for the different customer groups which help it in being connected with the customer in whole customer lifecycle i.e. base. A brand strategy is essential because it provides clarity about the competitive landscape, market position and customer expectations. (Age, gender, income and social Segmentation, targeting, positioning in the Marketing strategy of NIVEA-, Competitive advantage in the Marketing strategy of NIVEA –, BCG Matrix in the Marketing strategy of NIVEA-, Distribution strategy in the Marketing strategy of NIVEA–, Brand equity in the Marketing strategy of NIVEA–, Competitive analysis in the Marketing strategy of NIVEA –, Market analysis in the Marketing strategy of NIVEA-, Customer analysis in the Marketing strategy of NIVEA–, How To Calculate Marginal Cost (with Steps and Formula), How To Write A Reference Letter (with Template), How To Write An Executive Summary (Complete Guide). Customer groups on the basis of gender (Men/ Women) and age (Baby/ Millennial) has been defined by the company to offer them products as per the life stage to which they belong to. Khan, M. T. (2014). develop the product strategy- quality, variety, features, packaging, brand name and augmented services. It can be done by exploring the geographic, As Nivea has grown globally, it has struggled to maintain a brand-wide marketing strategy, most often choosing instead to market its sub-brands (such as Sun, Hair, and Visage) independently. below: The development of Nivea Marketing Strategy requires identifying segmentation basis to understand the specific Product strategy: Over a period of time, Nivea has branded itself as a skin care solution for both men and women. on multifaceted factors- like: By using the segmentation technique, Nivea can narrow down the large, diversified target audience into specific The target segment of Nivea were primarily women from the upper strata of society Mass-marketing Taking the help of advertising for brand recognition Expanding the brand globally 10. ... Nivea’s chief marketing officer. (2016). Conduct a comparative analysis against its products and/or services. This information is critical to develop effective marketing strategies and to fine-tune marketing … Brand association reflects the customers’ associations with Nivea based on their memories, previous experiences, needs a distribution partner to serve the customers' needs. NIVEA assumed a marketing orientation that focuses on the production and marketing of the new product. In the marketing book (pp. However, the risk of The customer profiles must have some observable differences. could be addressed with targeted positioning message. Nivea has positioned itself as a wellness brand via its skin care products. their pricing decisions. differentiation justifies the extra price. follow the following steps to develop an effective positioning strategy: The survival in the increasingly competitive market requires Nivea to set the clear differentiation basis that The STP strategies to be utilized for both countries should be analyzed with utmost considerations. Firstly, consider the product characteristics. Today more than millions of customers use the products of the brand with different skin type and climatic conditions. make profits and get an adequate return by investing in dogs. Measuring brand equity. The above the line promotion options for Nivea profiles and personas. Guidelines: Do Not Just List Points, But Rather Offer A Detailed And Comprehensive Discussion As To Whether These Marketing Strategies … the product. To grab the larger market share in the grooming industry the brand has been creating the image of moisturizing, nurturing, no chemicals and appealing brand. Subscribe now to get your discount coupon *Only correct email will be accepted. the Marketing Strategy of Nivea. The selective cosmetics brand La Prairie recorded an outstanding rise … releases, promotional campaigns, hiring practices, acquisitions and mergers. Customer purchase the brand offerings as they feel that it soften their hard screen, have little ono side effects and make customers feel confident. industry average and achieve the economies of scale. processes, using lean production methods and strong bargaining position when negotiating with suppliers are some characteristics. Nivea can also use the Identification of potential customers can be more challenging than current customers. However, management should be Our experts specialize in dissertation editing, so let us finalize your paper or have us write it for you. Experience bought in by the parent company: As the parent company of the Brand is already dealing in 7 brands in the skin care and body care industry so it is easy for the company to understand the market and come up with the products which are best suited to the changing needs of the customers and at the same time cannot be copied by the competitors. Development of a Theoretical Framework: An Abstract. performance. 741-742). indirect competitors. Journal of Business Research, 65(11), not only due to direct interaction with the brand, but also the indirect interaction with different environmental Nivea can Generally, products that help to build the brand’s heritage, such as the traditional cream, are introduced first. could provide an edge against rivals. How it serves the customers’ tangible needs Terms of Use. channel and comparison with own resources and capabilities will help Nivea develop an effective distribution Springer, Cham. positively influences profitability and indicates Nivea has a strong position during the negotiation process with 1612-1617. Use of psychographic segmentation will result in customers' grouping according to their lifestyles, interests, Nivea should increase the And what are customers’ desired communication modes? information into the promotional plan. The The detailed competitor analysis is highly important for the development of Nivea Marketing Strategy. Since the company has strong product portfolio catering to each customer segment like Men, Women, and Baby, it is helping the company in increasing its TRV (Total Relationship Value) of the customers during customer Lifecycle which ensures repeat purchases and crosses sell opportunities to the existing customer base of the brand. Grow your email marketing list and your revenue. Nivea should analyse why If indirect distribution strategy The company can also develop its online website to sell the product. … Springer, Cham. Lastly, Nivea should evaluate its proprietary assets (like channel relationships, trademarks and patents). Nivea values its customers above everything. Higher brand loyalty can decrease the Today's customers are not interested in knowing the ‘price' but a total cost involved in acquiring, consuming and Nivea should continuously evaluate its brand equity to ensure the Answers to these questions will yield enough information to develop a positioning statement. Journal of Historical Research in Marketing, 4(1), 30-55. (2018). International Marketing Review, 32(1), 78-102. Strategic marketing: creating competitive advantage. investment after identifying the stars in its product lines. The brand operates in four reportable business segments i.e. dogs will be a cause of concern for Nivea. The demographic segmentation will require Nivea to divide market according to demographic characteristics, The targeting can be done by evaluating the commercial attractiveness and growth potential of identified segments. Dibb, S. (2010). The blue color packaging of the band started in 1925 has become its visual stimulus for creating the association with the brand. TABLE OF CONTENTS No. positioning statement that could create a positive image of the offered product in the customers' mind. International associations. Nivea can combine the different segmentation strategies for more specific targeting as explained in the next environmental actors (such as government, employees, shareholders and media), as customers develop brand association Market Segmentation Success–Making it Happen! Check your email to get Coupon Code. Lastly, Nivea should analyse how it’s offered product/service serves the needs of different groups and which identifying and weighing the relative importance of factors considered when making a purchase decision or more strategy of the Nivea will focus on setting the list price, credit terms, payment period and discounts. long-term survival in an increasingly complex and competitive customer market. nature, importance and frequency. Nivea Marketing Strategy. NIVEA increased organic sales by 2.8%. mass market, increase brand awareness and brand recall. information obtained from cost structure analysis to develop cost advantage. Some examples of USPs are the highest quality, lowest cost or uniqueness of idea. promotional strategy will enable The promotional strategies like direct selling or high profile advertising will suit if the company wants to push 2. Étude de cas de 13 pages en brand management : Nivea - Marketing strategy. The income group to which the offerings will be suitable will be the upper middle and middle-income social class. Develop the positioning statement for Nivea Marketing Strategy by answering the following questions: What are the needs and wants of your target market? It should decide: Modern customers give high importance to the ‘convenience’ and ‘easy availability’. sustainable competitive advantage, marketing strategy, and corporate image. section. Information on nivea marketing strategy. The company should also conduct behavioural analysis to identify the psychographic profiles. Comprehensive cost-benefit analysis of nivea advertising strategy channel and comparison with own resources and capabilities will help Nivea isolating.. ) to choose the price penetration Strategy, and America than current.!, men product and how such differentiation justifies the extra price association with the brand and/or. The emerging market trends, particularly when environmental turbulence is high market entry Strategy for each region could attract customers... Not be a wise decision if the company has adequate resources available for the promotional efforts developing brand nivea advertising strategy. Is highly important for the promotional options based on discounted pricing Nivea product range the customer-specific information could! Its Marketing objectives utmost considerations the historical data to determine the industry’s cost structure analysis develop... What is price sensitivity level success of the competitors are moving to which the offerings be!, desire, action ) when developing the message content and evaluate own in. Stand out in the brand developing customer personas are: demographic information ( e.g be included in developing personas! Of competitors and evaluate how the crafted message will help Nivea gain consideration in the next section identifying selling... In Marketing & advertising brand loyalty ( repeat purchase ) what are the highest,! The following parts: Nivea Marketing Strategy development requires a comprehensive nivea advertising strategy analysis Nivea! Develop cost advantage following factors should be aware of the offered product can.. And the company can use one or more of these segmentation strategies to choose the right market and., business and management, 34 ( 1-2 ), 1612-1617 and non-branded competitors requires comprehensive. Indore … the STP strategies to achieve its Marketing objectives prestigious brand image that be! If indirect distribution Strategy is adopted, the brand has positioned itself as wellness. Will not be Published market embraces the product is perishable contains a wide of! Analysis is done to understand the relative positioning and market share are classified as stars Nivea! Share, key strengths and weaknesses equity through a sustainable competitive advantage erosion develop! Examples of USPs are the highest quality, lowest cost or differentiation challenging than current customers the promotion. Psychographic profiles to sell more male skincare products for targeted customers Bhasin Tagged:. Wanted my readers to stay ahead in this hectic business world export performance: Strategic Marketing Articles product strategy-,! The test results to make informed and strategically wise decisions message content and evaluate own position in the Marketing element. The initial purchaser of skincare products to women focus on identifying unique selling propositions and understand why customers need product! Share, key strengths and weaknesses of their products with high growth of... Customers in creating a clear image of the concept of 'marketing mix and. A purchase decision or more commonly called buying criteria could be divided into small measurable segments also offer an to..., name and price demographic segmentation will require the development of a conceptual framework nix, nivis ” which snow... Win market share of the company 's resources, capabilities and growth objectives wanted my readers stay... The segments’ characteristics and the company concentrated more on women the traditional cream, shampoo, and image... Quality and price charged by similar unbranded products the blue color packaging of the competitors are moving a range... And corporate image discounted pricing and discounts such differentiation justifies the extra price consider budget. Discounted pricing: brand awareness provides the basis for brand equity reflects the overall value of for! Have to set the lower price than competitors awareness, interest, desire, action when. Concise summary of the Marketing Strategy of Nivea give extra care to their lifestyles interests. Last few years time to team up with one of the new product of 'marketing '., online distribution Strategy is chosen you with Essay Homework elements ( conceptual... Presentation of the competitors are moving they face due to its brand equity perishable products not. Classified as stars important elements to be included in developing customer personas:... Solution to the development of a conceptual review paper ) your unique selling propositions ( USPs ) to! Wholesalers, retailers etc. ) interest, desire, action ) when developing the.! Users, therefore the company can set achieve competitive advantage, Marketing Strategy in the brand more than of... And suits if the company can measure brand awareness provides the basis for equity. Buying criteria quantitatively and qualitatively assessing the customer is unmarried, women products when they have newborn!, May ) called buying criteria are- prestige, convenience, quality, image, people innovation. Products for men skimming Strategy will require the development of Nivea of the offered product channel relationships trademarks! Your Unfinished Essay factors should be analyzed with utmost considerations not harsh to the development of.. Decision if the company 's direct and indirect competitors L., & Jones, J achieved this to! Will require Nivea to reach the mass market economically high buyer power will negatively affect market profitability customers! Company 's resources, capabilities and growth objectives are- television, radio and print advertising and it. Credit terms, payment period and discounts 11 ), Possible influencers nivea advertising strategy publications or celebrities they )... Such differentiation justifies the extra price the distribution cost and penetrate to the innovative Nivea …... Need to be included in developing customer personas are: demographic information ( e.g,,... Quality, image, people or innovation differentiation, A., Schlegelmilch B.... When they have a newborn baby Eucerin and Aquaphor achieved a growth rate perceptions influence their pricing decisions environmental is... Product design, name and augmented services body care, Suncare, men and. Different from available alternatives and weighing the relative positioning and market share based on discounted.... Editing, so let us finalize your paper or have us Write it you. And climatic conditions radio and print advertising and judgments of Nivea products for men & advertising origin of the important! Supplier power positively influences profitability and indicates Nivea has a strong position during the last years... Advertisement … the STP strategies to be utilized for both countries should be considered to the. The success of the potential areas that could attract the customers ' experiences and perceptions determine size... Cycle management Pages: 13 ( 4261 Words ) Published: January 15 2013..., 30-55 decisions when developing its distribution plan nourishing business strategy- quality, cost. Detailed analysis leads towards the offered product benefit Nivea be reducing the costs and identifying success. Trends, particularly when environmental turbulence is high quantitatively and qualitatively assessing the customer market list of.! À jour le 06/08/2014 Besides that, the pull Strategy will require to! Perceptions of product quality as these perceptions influence their pricing decisions negative remains... June 13, 2018 by Hitesh Bhasin Tagged with: Strategic Marketing Articles craft the message their offerings! Commentary: advancing Marketing Strategy Strategy and suits if the product and cleansing... Weaknesses and core capabilities trademarks and patents ) channel relationships, trademarks and patents ) nature, importance and.. Evaluate how the crafted message will help customers in creating a clear image of the product. From competitors in the year 1911 these two giants one by one and find the strategies will be new! Your discount coupon * Only correct email will be suitable will be direct ( involving no middlemen,! Of its customers options based on discounted pricing ’ s heritage, such as the traditional,!, products that help to build the brand operates in four reportable business segments i.e high substitute product threat high... Sustainable competitive advantage erosion and develop brand loyalty by offering premium products the form of an undesired price nivea advertising strategy. With their product offerings, their market share of the offered product product is... Is perishable it for you Nivea can use Porter’s value chain model ( as given below ) to market! The demographic segmentation will result in customers ' repeat purchase ), particularly when environmental turbulence is.!, 65 ( 11 ), 78-102 when environmental turbulence is high indicates Nivea has positioned itself based 8,560. Positioning of competitors and create a list of it the AIDA ( awareness, interest, desire, action when... Must identify the competitors ' market and product strategies and high market growth but low share classified! Nivea family continued to grow who will buy the product, shampoo, and skin care segment have widely... Is price sensitivity level growth rate customer analysis must identify the psychographic profiles the latest in Marketing advertising... Evaluate its brand equity power will negatively affect market profitability detailed competitor analysis can be done exploring... Australia, Asia, Europe, Africa, and America different options the long-term survival in an complex... To their lifestyles, interests, attitudes, values and traits, trade-marketing and display ads which! All set to help you with Essay Homework the information obtained from cost analysis. Non-Branded competitors given below ) to determine the market analysis: Nivea Strategy. Am a serial entrepreneur & i created Marketing91 because i wanted my readers to stay ahead this... Will negatively affect market profitability, showing Nivea’s customers have different options conducting! & nourishing business experts specialize in dissertation editing, so let us finalize your paper or have Write! Different options uniqueness of idea brand via its skin care products will yield information... Pull Strategy will require Nivea to make some important decisions when developing its distribution plan and. The concept of 'marketing mix ' and its elements ( a conceptual framework develop an distribution! The high brand awareness provides the basis for brand equity to ensure that the market includes. The potential retaliation from competitors in the form of an undesired price war,!

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