Introduction
Nivea is a company that manufactures and sells various skin care and beauty products. Some of the products sold by the company include lotions and perfumes used by a wide range of individuals. The target consumers that the company focuses on include individuals from all demographics and income levels. Recently, the company undertook a research and discovered a need in the target market. The need encompassed young individuals aged between 12-19 years, who wanted beauty products that are not medicated. To address the existing need, the company developed a product that met the expectations of young individuals known as ‘Nivea VISAGE Young’. The company employed the elements of the marketing mix in its attempt to develop a product that matched the need. Promotion and price are some of the marketing mix elements employed by the company. Additionally, other marketing mix elements used by the company in product development included place and product. Therefore, the study evaluates and recommends the current marketing mix, usefulness of the brand, the vital elements of the marketing environment that determine success, and new product development approach for Nivea Company.
Assembly of Nivea Marketing Mix on the Existing Product Offering and Recommendations for Its Optimization
The current marketing mix used by Nivea Company in marketing its product offerings is effective as it targets the required clients. By using the 4Ps in its marketing, a company develops products that match customer expectations, prices them in accordance with their purchasing power, promotes them successfully, and distributes them to the required places (Kanagal, 2011). In the study, it is clear that Nivea Company undertook a research and identified the needs of their potential clients. The discovery from the research was very critical in ensuring that the company developed products that not only met the needs of the target clients, but also were environmental friendly. A critical analysis on the utilization of the marketing mix elements used by the company reveals their successful assembly.
To optimize the effectiveness of the elements and gain traction of the customers, the company should apply the concepts of product development and its life cycle. The company should also undertake a continuous marketing research and evaluation on the product. Continued evaluation and study of the product life cycle helps the company to be in line with the trendy and dynamic preferences of clients.
Importance of the Brand in Future Growth and Strategies for Continued Success in the 21st Century
The extent of the brand’s significance in future growth of the company is minimal and short-lived. Evidently, the implication of minimal and short life of the brand is due to the ever-changing consumer preferences. While the brand can help the company achieve benefits like consumer loyalty and increased sales, the benefits can quickly diminish if the company does not engage in continued research. Nayeem (2012) asserts that modern consumers are quality oriented, and therefore, purchase products that provide an exceptional value, which is in line with their cultural preferences. Absence of continued research can render the company incapable of identifying market changes, deliver products that do not match client expectations, and experience a decline in the number of its consumers. Since competitors, who provide substitutes and similar products to clients at lower prices are present in the market, reliance on company’s brand alone cannot be sufficient in attainment of continued success in future.
Some of the recommendations that the company should undertake to ensure continued success in the 21st century encompass an extensive marketing research and a study of the marketing environment. An extensive marketing research helps the company deliver products that are high-end and cost effective to the potential clients (Pham, Hung & Gorn, 2011). The research also leads to supply of customer-oriented products. Conversely, an understanding of the prevailing marketing environment is supreme in ensuring that the company delivers products that are in tandem with technological, environmental, legal, and social requirements.
Elements of the Marketing Environment That Need Analysis and Comparison Regarding Future Marketing Plans and Protection of the Current Market Position
The elements in the marketing environment that the company needs to analyze and compare with regard to developing future marketing plans comprise elements in the micro and macro environments. Principally, the elements in the micro marketing environment are within the company’s control and management. These elements comprise intermediaries, the community, the business entity, and suppliers. Dmitrovic and Vida (2010) explain that the elements in the macro environment are beyond the control or management of the company and entail environmental, technological, legal, political, and social elements. Therefore, to ensure that the company achieves sustained future growth and success, it needs to undertake an intensive analysis and comparison on the elements because they determine the performance of organizations in a competitive market.
To protect its position as the market leader, the company has to engage in factors, which entail continuous changes, diversifications, and adjustments on its products. A well-designed execution of these factors leads to sustained growth and long-term customer satisfaction. The ability to satisfy consumers in the long-term transpires from continued modifications, adjustments, and diversifications made in accordance with the feedback obtained from the extensive marketing research (Soliman, 2011). For instance, after its research, Nivea Company identified a need among teenagers and developed Nivea VISAGE Young, which match client requirements.
Company’s Approach to New Product Development and Improvement of Its Success Rate for Future New Products
The company’s approach for new product development, Nivea VISAGE Young, was productive and successful. Lovett, Peres, and Shachar (2013) elucidate that a good new product development approach focuses on factors such as customer needs, market dynamics, and competition. Since Nivea Company utilized an approach that employed these factors, its approach was exceptional in realizing the success of the new product. In the study, the company undertook a research, identified a need, and transformed the need into a tangible product as expected by the target clients.
To improve its success for future new products, the company should perform a continuous and comprehensive approach that stresses on the nature of the market and customer satisfaction. By emphasizing on customer satisfaction and the nature of the market, the company can easily outsmart its competitors and increase its share of consumers. Moreover, the focus helps the company deliver products that match consumer demands. Customer satisfaction also facilitates increased sales and revenues in the company because satisfied clients market the company’s products through word-of-mouth-marketing.
Conclusion
Nivea Company manufactures and sells skin care and beautification products. Presently, the main products that the company sells include perfumes and lotions. After a research, the company discovered that there was a need among teenagers, who wanted a product that improved their overall appearance and beauty. The discovery compelled the company to undertake a product development approach, which focused on transforming the need into a product that the target customers expected in the market. Nivea VISAGE Young was the new product that the company developed and launched in the market using a range of marketing mix elements. The use of marketing mix elements and a study on the nature of the marketing environment are among the key factors that augmented the performance of the new product in the market after its launch. To increase success and future growth of new products, Nivea Company should ensure that it embarks on a continuous market research. Continued market research enables the company identify the market dynamics, consumer demands, and deliver products required by potential consumers.
References
Dmitrovic, T., & Vida, I. (2010). Consumer Behavior Induced by Product Nationality: The Evolution of the Field and Its Theoretical Antecedents. Transformations in Business and Economics, 9(1/19), 427–444.
Nayeem, T. (2012). Cultural influences on Consumer Behavior. Marketing Management Journal, 7(21), 1-217.
Soliman, H. (2011). Customer Relationship Management and Its Effect on Marketing Performance. International Journal of Marketing and Social Sciences, 2(10), 166-182.
Kanagal, N. (2011). Role of Relationship Marketing in Competitive Marketing Strategy. Journal of Management and Marketing Research, 1-17.
Lovett, M., Peres, R., & Shachar, R. (2013). On Brands and Word of Mouth. Journal of Marketing Research, 427–444.
Pham, M., Hung, I., & Gorn, G. (2011). Relaxation Increases Monetary Valuations. Journal of Marketing Research, 48, 1-49.