Introduction
NIVEA is one of the leading brands produced by Beiersdorf. The firm was founded in 1882. It has expanded to become a leading marketer of beauty care and skin products. In 2005, Beiersdorf launched a new product targeted young women. The name of the product is NIVEA VISAGE Young (NIVEA, 2010). The product targets females between 13 and 19 years. The product can keep one’s skin beautiful and healthy. The case study explores how NIVEA has been using the 4Ps of marketing (Promotion, Place, Price, and Product) to achieve its business potentials.
Case Summary
NIVEA’s goal in the United Kingdom is to ensure every customer has access to its products. The firm’s innovative products are aimed at fulfilling the needs of the targeted customers. Beiersdorf embraces a consumer-led strategy in order to support its brands. The approach has increased its presence in the globe. The firm creates new products that can address different gaps in the market. A good example is the NIVEA VISAGE Young. The “major strategies used to identify new market needs include focus groups, data gathering, and product testing” (NIVEA, 2010, para. 7). New products are properly priced. However, retailers are allowed to allocate the right prices for their products.
NIVEA VISAGE Young is marketed using appropriate distribution channels. The leading outlets “include large high street shops” (NIVEA, 2010, para. 15). Some of these shops include Superdrug and Boots. Other outlets include Sainsbury’s, Tesco, and ASDA. The firm does not market to retailers directly. As well, NIVEA does not use its website. The company focuses on the lifestyles of the targeted buyers. NIVEA does not use above-the-line methods such as televisions and newspapers. Promotion is also consumer-led (NIVEA, 2010). The firm also gives free samples to its potential customers. NIVEA also launched an online magazine to support its NIVEA VISAGE Young (NIVEA, 2010). Social media networks are also being used to support the company’s marketing strategy.
Statement of the Problem
NIVEA wants to become a market leader by delivering quality beauty products to different customers. The company embraces powerful approaches to identify the existing gaps in the market. The case study shows clearly that NIVEA is currently focusing on a single product to achieve its potentials. As well, competition is still evident in the market. Many experts still believe that a better marketing approach will be critical towards supporting the firm’s future goals (Singh, 2009). This is the case because the current marketing mix has not been able “to gain the required traction with the potential customers” (NIVEA, 2010, para. 23). The company fails to supply its products to different retailers. The approach has affected its distribution strategy. The other problem is how NIVEA should implement better marketing practices.
Causes of the Problem
The changing market landscape is the main cause of the above problem. The article explores how NIVEA has been using appropriate strategies to achieve its goals. It designs quality products that have the potential to fulfill the targeted gap in the market. The firm also uses proper promotional and pricing approaches. The firm’s failure to identify new locations has also contributed to this problem (Martisiute, Vilutyte, & Grundey, 2010). The firm is also not using an inclusive promotional strategy in order to produce the best outcomes. Market changes and emerging consumer expectations have also contributed a lot to NIVEA’s problems (NIVEA, 2010). NIVEA has not been using its website. These issues might affect its future performance.
Marketing MIX
The case study shows clearly that NIVEA has been using the best approaches in order to market its new products. The use of a powerful marketing mix has made it possible for the company to market its NIVEA VISAGE Young. The marketing mix embraces the 4P approach in order to deliver the product to the targeted customers. To begin with, NIVEA uses the existing gaps and needs to develop new products. The firm used this strategy to come up with the NIVEA VISAGE Young. Pricing is also done in a proper manner (Martisiute et al., 2010). The product is usually marketed at a higher price. This makes it more appealing to more customers.
NIVEA has also been using different channels to inform more people about its products. The promotional approach embraces the use of social media networks and online magazines. More customers have therefore been informed about the benefits of the product. Road shows and radio events are also used to promote this beauty product. The firm uses proper distribution networks and locations in order to achieve its goals. For instance, NIVEA collaborates with companies such Tesco in order to achieve the best goals. The firm also uses other shops such as Superdrug and Boots (NIVEA, 2010). However, the marketing mix has not been able to gain the required traction.
That being the case, some recommendations are critical towards promoting the best practices. To begin with, the firm can create better products for the same market segment. Such products will “widen the options of the targeted customers” (Singh, 2009, p. 48). Consumers should also be allowed to present their suggestions in order to improve the products. The company “should also identify new distribution channels in order to ensure the products are delivered to more customers” (Yasanallah & Vahid, 2012, p. 196). For example, the firm should begin to include different retailers in its supply chain. New outlets can also be opened across the country. Such outlets will increase the confidence of every customer. The firm can also collaborate with other marketers and shopping malls in order to market the product to more customers.
The company’s online magazine has been raising awareness. It will therefore be appropriate for the firm to identify more channels in order to inform more individuals about the benefits of the product. Social media networks are also being used to support the company’s marketing strategy (Yasanallah & Vahid, 2012). The firm can therefore employ more online marketers in order to achieve the best outcomes.
The other critical issue arises from pricing. NIVEA allows different retailers to fix their own prices. This approach can be harmful because more customers will be discouraged. Many retailers “will most probably market the products using extremely high prices” (Yasanallah & Vahid, 2012, p. 197).The firm should therefore review and harmonize its prices in order to have a sustainable growth. The prices can also be lowered further in order to attract more customers. New marketing avenues such as learning institutions and busy streets can be identified in an attempt to increase the company’s profitability (Francis, 2007). The use of televisions and newsprints should be encouraged in order to inform more people about the company’s products.
Brand and strategy
NIVEA has been a successful company. It has been relying on a single brand in order to achieve its business potentials. This case study shows clearly that the company relies on its NIVEA VISAGE Young to emerge successful. The current marketing strategy has been focusing on the best approaches. However, it would be agreeable that the brand might not be appropriate for NIVEA’s future growth (Lamp, Hair, & McDaniel, 2014). The case study shows clearly that NIVEA is facing much competition from different companies in the same industry. This situation can threaten the company’s future survival. NIVEA’s competitors can produce better products and eventually threaten this single brand.
Several strategies can be formulated in order to ensure the company achieves its goals in the 21st century. To begin with, new brands can be introduced in the market to support the company’s growth efforts (Francis, 2007). Such new products should be able to address the emerging needs of many consumers in the market. The firm can also target other segments in the market in order to increase its sales. For example, the firm can produce a new product targeting young men. Many youths are “using beauty products than ever before” (Chinta, 2006, p. 68). Men are also using various products in order to have admirable skins. This gap presents a new opportunity for this leading company. The products should be able to address specific needs in the market.
After introducing such new products, NIVEA should also identify more markets in different parts of the world. Many people in different parts of the world use foreign beauty products (Vesanen, 2007). This is the case because “they believe such products are superior and effective” (Vesanen, 2007, p. 412). The company’s marketing manager should therefore identify potential markets in countries such as China, India, and Latin America. These emerging markets will make it possible for the company to achieve its business goals.
Every product will also require a customized marketing approach. A proper marketing strategy will also be required for every segment. Individuals in a specific market segment tend to have similar behaviors and attitudes. The marketing approach will therefore encourage members of the targeted segment to purchase the product. New studies should be conducted in order to understand the changing needs of many people in the market (Kotler & Keller, 2011). Such results will be used to identity new practices towards having a successful business strategy. The firm should exhaust every opportunity in order to remain successful.
Marketing environment and marketing future
NIVEA should “analyze the market in order to come up with better marketing plans” (Kotler & Keller, 2011, p. 86). Several elements should be considered in order to develop appropriate marketing plans. Such plans will eventually deliver the best goals. To begin with, the firm should examine the current and future needs of different populations. This knowledge will make it easier for the company to segment the market. A powerful marketing approach will therefore be essential for every market segment (Vesanen, 2007). A customized marketing approach can make it easier for an organization to increase its sales. This is possible because the targeted product will be aimed at addressing the needs of every customer.
The other element to consider is the nature of competition. NIVEA should be aware of the strengths and weaknesses of its immediate competitors. This knowledge will encourage the company to create superior products and embrace the best marketing strategies. The firm will also establish a powerful marketing mix in order to deliver more products to the targeted customers (Grewal & Levy, 2011). Every demographic change can have significant implications on the company’s marketing strategy. The managers at the company should therefore undertake frequent analyses in order to develop better plans.
The above practices will “make it easier for NIVEA to protect its position as the market leader” (Yasanallah & Vahid, 2012, p. 197). NIVEA should always consider new changes in the market environment. The marketing managers should also make accurate decisions. New plans should be devised in order to attract more customers. The firm should also embrace the concept of Research and Development (R&D). This concept is essential towards developing better products that can address the changing needs of different customers. The firm should be aware of every new technology in the market. Such strategies will make it easier for NIVEA to attract more customers. New marketing decisions are required in order to make the company more successful.
New development of the product and future
NIVEA uses market research to identify new opportunities, needs, and gaps. The company has also been identifying new market changes and needs. The firm produces suitable products in order to deal with competition. Product improvement is something taken seriously at this company. Product development methods are usually executed in accordance with “the changing environmental and social responsibility requirements” (NIVEA, 2010, para. 5). The firm has also been using recyclable containers. Such product development initiatives have been essential towards supporting the company’s business goals.
According to this case study, NIVEA embraces the best approaches in order to develop new products. After developing the new NIVEA VISAGE Young, the company continued to analyze the changing needs of different consumers. Such observations also made it easier for the firm to improve the product after two years (NIVEA, 2010). These practices have been relevant towards making NIVEA a market leader. The firm should consider numerous changes and requirements in the market (Grewal & Levy, 2011). Such changes offer new incentives thus promoting the best products.
That being the case, NIVEA should use similar approaches whenever developing its products. The strategy will address the beauty needs of every targeted market. New practices can also be embraced in order to produce better results. For instance, NIVEA can produce different sub-brands of the same product (Grewal & Levy, 2011). Such brands will be critical towards addressing the needs of specific individuals. The variants “can be differentiated through taste, packaging, and flavor” (Singh, 2009, p. 74). The company can also embrace the use of modern technologies. Such technologies will improve the quality of products marketed to different consumers. Extensive researches can also be done in order to produce superior products. Such new products will eventually produce the best results. This approach will attract more customers and stakeholders.
More stakeholders should be involved in every product development process. Such “stakeholders will ensure the products are of the highest quality” (Grewal & Levy, 2011, p. 93). The company “can undertake numerous studies in order to add new ingredients to its products” (Grewal & Levy, 2011, p. 93). The firm’s packaging and transportation practices should also promote the concept of social responsibility. This practice is necessary because many people want to live in a sustainable environment. These strategies will eventually improve NIVEA’s success rate for its future products.
Reference List
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