Study Case NIVEA

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    B T M W 4 0 1 2 : T E C H N O L O G Y E N T R E P R E N E U R S H I P Page 1

    INTRODUCTION

    1. What is NIVEA?NIVEA is a well known in high quality skin and beauty care products. It is a part of a range of

    brands produced and sold by Beiersdorf that founded in 1882.

    2. Why NIVEA re-launching the NIVEA VISAGE YOUNG (NVY)?The company re-launched the NVY in June 2007 because further optimizing its position in

    the market. Optimized means the product has new formula, new design, new packaging and

    a new name.

    PRODUCT

    1. How Nivea redesign the product?To understand the target market, Nivea identified group of people with the same

    characteristics (age/gender/attitude/lifestyle). NIVEA carries out its market research with

    consumers in a number of different ways. These include:-

    i. Using focus groups to listen to consumers directly.ii. Gathering data from consumers through a variety of different research techniques.iii. Product testing with consumers in different markets.

    2. How research can improve the product?Market research of Beiersdorf has identified younger consumer wanted more specialised

    face care that offered a beautifying benefitaimed at their own age group, rather than a

    solution to skin problems. This gives NVY provides unique bridge between teenage market

    and adult market.

    3. How corporate responsibility can influence consumer to buy the product?Nowadays, most consumers concern about the product that reflects to environment. For

    instance, reduce packaging and waste, use natural resource in the formula, and increase

    opportunity for recycling.

    STRATEGIES

    1. How use Marketing Mix in Nivea Visage Young (NVY) product launch?The uses of the marketing mix in product launch, NIVEA VISAGE emphasis on 4Ps. They are

    Product, Price, Place and Promotion.

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    2. Product strategy?The company improve the product to make it more effective and more consumer-friendly.

    The testing resulted in a number of changes in existing products. These improvements

    includes changing the formula of the some products, introduce completely new products,

    new modern design to appeal to younger woman, and lastly change the size of the products.

    3. Pricing strategy?Usually business uses 3 pricing strategies. There are cost based pricing, penetration price

    and price skimming. NVY is the leading skin care and effectively price leader, which set the

    price level that competitors will follow or undercut. Nivea needs regularly review prices to

    ensure its pricing remains competitive.

    4. Place strategy?NVY focused on many distribution channels as possible to ensure the products delivered to

    the target market. The main channels are retail outlets where consumers expect to find skin

    care and also distributed to large grocery chains like ASDA, Tesco and Sainsburys.

    5.

    Promotion strategy?NVY is consumer-led promotion. Nivea identifies ways of talking to teenagers and their

    mother directly. Nivea provide products samples that allow the consumer to touch and feel

    the products. NVY also launched an interactive online magazine called Fun, Young,

    Independent (FYI) to raise awareness of brands.

    CONCLUSIONS

    It is very important to understand the customer needs in order to make a product successful. NIVEA

    shown that its understand its consumers by produced differentiated product range in order to meet

    their needs. By using the Marketing Mix, NVY reached the targeted consumer in the right way by

    using both traditional method and more modern method.