Case study Nivea Essay
NIVEA FOR MEN wanted to increase its portion of the UK male skin care market. This instance analyze examines how NIVEA re-launched the NIVEA FOR MEN scope in 2008. This was portion of its overall program to develop the scope in the UK. It shows how the company developed a selling program for the relaunch and organised its selling activities to accomplish its purposes and aims. The survey focuses on how a company can react to alterations in consumer outlooks. external influences and concern purposes to accomplish those aims.
What is a selling program?
A concern demands to put its overall way for the company through a concern program. This program sets out how the company is to accomplish its purposes. The purposes and aims of a concern inform and form its concern program. A critical portion of the overall concern program is the selling program. The relationship between the two programs is shown in the diagram.
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Marketing involves placing. expecting and fulfilling client demands. A selling program takes the stated purposes and aims and so puts in topographic point a series of marketing activities to guarantee those aims are achieved. Marketing programs can cover any clip period. but usually put out activities for the following one to five old ages at either a concern or trade name degree. World Wide Web. thetimes100. co. United Kingdom
Trade name: A name. symbol or design used to place a specific merchandise and to distinguish it from its rivals. SWOT analysis: Designation and rating of the strengths and failings inside a house and the chances and menaces in its external environment. Return on investing: The return on the financess invested in the concern. Net incomes: money that is earned in trade or concern. after paying the costs of bring forthing and selling goods and services.
The chief subdivisions of the program screen:
• SWOT and competitory analysis – to measure where the concern or trade name is presently and what rivals are making
• aims – what the program needs to accomplish
• the selling scheme – how the aims will be achieved • gross revenues forecast – by how much gross revenues are likely to increase • budget – how much the selling activities will be and how the program will be financed • rating – how results will be monitored and measured. There is no set theoretical account for a selling program. The construction of the program – and the sum of item – will depend on the size of the trade name. the timescale involved and how the market and economic system is acting. However. NIVEA’s selling program for the relaunch of NIVEA FOR MEN follows closely the lineation described here.
Measuring the market
The first measure in inventing a selling program is to carry on an rating of the concern. its trade names and merchandises. This should include an appraisal of the brand’s place and the province of the market. NIVEA FOR MEN needs to cognize what its male clients want and what rival merchandises exist. Equally good as aiming the male consumer. adult females are besides an of import mark market for NIVEA FOR MEN. This is because adult females frequently buy male training merchandises for their spouses every bit good as assisting them take which merchandises to purchase. NIVEA FOR MEN used a SWOT analysis to assist it measure the market. This takes a elaborate expression at the internal strengths and failings of the concern. every bit good as external chances and menaces in the market place.
NIVEA FOR MEN
identified several strengths
• NIVEA FOR MEN was the UK market
taking male facial skin care brand*
which gave it strong trade name acknowledgment.
• The company had a sound fiscal
base. so it had the resources to set
together a strong selling run.
• It besides had staff with relevant accomplishments –
research workers with the scientific accomplishments to
develop merchandises that work forces want and
marketing staff with the accomplishments to assist
advance these merchandises efficaciously.
As the taking male facial trade name.
NIVEA FOR MEN needed besides to be
aware of any failings
• Was the merchandise scope still relevant for
the mark audience?
• Did it hold the right gross revenues and
distribution mercantile establishments?
• Was its market research up-to-date?
S WO T
One clear chance was that
the market was turning
However. as the market for male
skin care merchandises grows. there
• NIVEA FOR MEN had seen an addition in
the gross revenues of male skin care merchandises and it
wanted a greater portion of this market.
• The company wanted to take advantage
of altering societal attitudes. Work forces were
going more unfastened. or surely less
resistant. to facial skin care merchandises.
• Consumers were going more
knowing and monetary value conscious.
They frequently expect gross revenues publicities such
as price reductions and offers.
• The hazard of rivals come ining the
market. NIVEA FOR MEN needed to
distinguish its merchandises in order to
guarantee that. in an progressively
competitory market. its selling activity
gave positive return on investing
in footings of gross revenues and net incomes.
* NIVEA FOR MEN the UK’s taking male skincare trade name ( IRI Data to 27th Dec 2008 ) .
A successful selling program relies on puting clear and relevant aims. These must associate straight to the business’ overall purposes and aims. In other words. the selling program must suit with the overall company scheme that is set out in the concern program. Beiersdorf states its end as ‘…to
increase our market portion through qualitative growing. At the same clip we want to further better our sound net incomes public presentation so that we can ful?l our consumers’ wants and demands with inventions today and in the hereafter. This will give us a strong place within the planetary competitory environment. ’
The selling squad set SMART aims for the NIVEA FOR MEN relaunch. These are Specific. Measurable. Achievable. Realistic ( given the available resources ) and Time constrained ( to be achieved by a given day of the month ) . The selling squad used research informations to calculate market tendencies over the following three-to-five old ages. This helped them put specific marks for increasing gross revenues. turning market portion and bettering its trade name image. Beiersdorf wanted to increase its UK market portion for NIVEA FOR MEN. but besides wanted greater market incursion for male skin care merchandises. In other words. it wanted non merely a greater portion of the bing market ; it wanted to spread out that market. It wanted more work forces purchasing skin care merchandises.
One key purpose was to travel work forces from merely sing skincare merchandises to doing existent purchases. It besides aimed to sell more male skin care merchandises to adult females. Research had indicated that adult females were frequently the initial buyer of skin care merchandises for work forces. NIVEA FOR MEN used this cardinal fact as a manner to increase chances for gross revenues. Another aim was to develop the NIVEA FOR MEN trade name image. The NIVEA trade name has ever stood for good quality merchandises that are dependable. user-friendly and good value for money. The brand’s nucleus values are security. trust. intimacy and credibleness. These values would be strengthened and expanded on with the re-launch. to acquire more work forces and adult females to believe of NIVEA as first pick for skin care.
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Smart aims: Model
for building aims in a manner
that meets a concern purpose.
Marketing schemes: Longterm plans designed to enable an
administration to place and run into
the wants and demands of its
Promotion: Devising merchandises
and services better known through
a scope of activities.
The NIVEA FOR MEN squad devised selling schemes to present its aims. These schemes set out how the aims would be achieved within the designated budget set by the direction squad.
This focal point on merchandise development combined with an accent on consumer demands is a cardinal discriminator for NIVEA FOR MEN. It is a major ground why in the UK the trade name is still the market leader in the male facial skin care market* .
Another basis of the UK selling scheme for the re-launch was publicity. NIVEA sought to construct on and develop the attack it had used in the yesteryear. In the 1980s. advertisement in men’s manner and manner magazines along with merchandise sampling was a major promotional tool. In the 1990s. the company used wireless. telecasting and imperativeness advertisement together with sampling. Since 2000. there has been a greater accent on consumer demands and an increasing usage of experiential activities in the promotional mix. Experiential selling is about prosecuting consumers through bipartisan communications that conveying trade name personalities to life and add value to the mark audience. This helps construct an emotional connexion between the trade name and the consumers. * NIVEA FOR MEN the UK’s taking male skincare trade name ( IRI Data to 27th Dec 2008 ) .
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World Wide Web. thetimes100. co. United Kingdom
Direct outgo on advertisement.
such as for a Television commercial.
Indirect outgo on publicity.
such as through free gifts. PR or
Brand affinity: How good
clients identify with the trade name.
Evaluation: A systematic procedure
that seeks to find the worth.
value or significance of something.
Cardinal public presentation indexs:
Fiscal and non-financial
steps to supervise public presentation
across a scope of activities within a
map. section or function.
It is of import to acquire the promotional balance right. NIVEA FOR MEN promoted the new launches of its merchandises through a mixture of above-the-line and below-the-line publicity. The usage of athletics was a cardinal component here. NIVEA FOR MEN supported football events at a grass-roots degree through its partnership with Powerleague to construct positive relationships with work forces. This helped make stronger trade name affinity for NIVEA FOR MEN among work forces. It besides allowed the trade name to construct and keep a consistent duologue with work forces. which helps to drive gross revenues.
Above-the-line publicity included telecasting and film adverts. which reached a broad audience. By utilizing links with athletics. NIVEA FOR MEN aimed to construct a positive male image associated with male facial skin care. The trade name besides benefited from imperativeness advertorials in popular men’s magazines. doing the day-to-day use of their merchandises more acceptable. Promotions were used to pull new clients. For illustration. the distribution of free samples encouraged test of NIVEA FOR MEN merchandises which drove purchase. These publicities have helped construct up trade name consciousness and consumer acquaintance which reinforce the NIVEA FOR MEN trade name presence. There is a dedicated NIVEA FOR MEN web site to back up its merchandises and supply information to educate work forces on their skin care demands. To heighten the trade name a tool called a ‘Configurator’ was created on the web site to assist clients stipulate their tegument type and happen the merchandise that best suits their demands.
Conclusion – measuring the program
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The selling program is a rhythm that begins and ends with rating. The concluding phase in the selling program is to mensurate the results of the selling activities against the original aims and marks. Continuous rating helps the selling squad to concentrate on modifying or presenting new activities to accomplish aims.
NIVEA FOR MEN adopted a scope of cardinal public presentation indexs to measure the success of the NIVEA FOR MEN re-launch in the UK. It looked at:
• market portion – Did the re-launch accelerate this growing and assist accomplish its market portion aims? NIVEA FOR MEN is market leader in many states and is systematically deriving extra market portion.
• overall gross revenues – Was this in line with aims? Internationally. NIVEA
FOR MEN skin care merchandises grew by about 20 % . Its gross revenues in the UK market at retail in 2008 were about ?30 million and in line with outlooks.
• trade name image evaluations – NIVEA FOR MEN was the Best Skin care Range victor in the FHM Grooming Award 2008 for the 5th twelvemonth running. This award was voted for by consumers. It illustrates that NIVEA FOR MEN has an highly positive trade name image with consumers compared to other trade names.
• merchandise invention – In response to consumer feedback and following extended merchandise invention and development. the NIVEA FOR MEN scope has been expanded and the bing preparations improved.
These consequences show that. in the UK. the NIVEA FOR MEN re-launch met its overall marks. which was a important accomplishment. sing the hard economic clime. The selling program for the re-launch used past public presentation and prognosis informations to make a new selling scheme. This built on the trade name and company’s strengths to take advantage of the increasing alteration of male attitudes to utilizing skincare merchandises.
1. Describe two pieces of informations that NIVEA used when fixing its selling program to relaunch NIVEA FOR MEN.
2. Explain why NIVEA used football sponsorship to assist increase its gross revenues of NIVEA FOR MEN merchandises.
3. Using the instance survey. set together a SWOT analysis of NIVEA’s place merely before the relaunch of NIVEA FOR MEN.
World Wide Web. niveaformen. co. United Kingdom
4. Discourse how effectual you think the selling program for NIVEA FOR MEN has been.