Marketing Assignment
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Transcript of Marketing Assignment
INTRODUCATION
Nivea is a global skin – and – care brand, owned by the German
company Beiersdort. The company began in 1911 when
Beiersdorf developed a water – in – oil emulsifier as a skin
cream with Excerpt, the first stable emulsion of its kind. The
company’s owner, Oskar Troplowitz, named it Nivea, from the
Latin word niveus/ nivea/ niveum (meaning snow – white).
During the 1930s, Beiersdort began producing products such as
tanning oils, shaving creams, shampoo and facial toners. The
trademark “Nivea” was expropriated in many countries
following World War ll. Beiersdorf buying back the confiscated
trademark rights in 1997.
Internationalisation during the 1980’s propelled the Nivea
brand to a wider global market.
OVERVIEW
28. The company Nivea originated from Poland and was bought
by German 1882 – Pharmacist Carl Paul Beiersdorf establishes
the company on March investors. The data of the patent
document for the manufacture of medical plasters is taken as
the date of the company’s formation.
1890 – Pharmacist Dr. Oskar Troplowits takes over the
company.
1892 – The first international cooperation agreement is
concluded with US trading company Lehn & Fink for
the USA.
1900 – Patent application for Excerpt, an emulsifying agent.
Excerpt is the basis for Euchring and, later on, for NIVEA
Crème.
1906 – The first overseas branch is established in London.
1911 – NIVEA Crème – the first stable water – in –oil emulsifier
– is introduced. The emulsifying agent Excerpt is made
lanolin, found in sheep’s wool, and is the key to NIVEA
Crème’s unique properties.
It is said that the main ingredient of Helena Rubinstein (HR)
product also comprises sheep’s wool is Australia.
1918 – The DEATHS OF Oskar Troplowitz and his partner Otto
Hans Mickiewicz result in the formation of a stock corporation
(limited company) on June 1, 1922.
1922 - Willy Jacobson takes over as Chairman of the Executive
Board of the newly formed stock corporation. The first self –
adhesive plaster is introduced under the name Hansaplast
1925 – NIVEA is relaunched in blue packaging. The new design
and communication lead to the crucial breakthrough for the
NIVEA brand. The distinctive blue and white tin starts its
successful history.
1933 – Under the pressure of National Socialist propaganda,
the Jewish members of the Executive Board step down. Willy
Jacobson, the former Chairman of the Executive Board, heads
the foreign affiliates from Amsterdam until 1938.
By adopting a policy of “honourable tactics”, the Beiersdort
Executive Board, under the leadership of Carl Clauses,
succeeds in steering the company through the Nazi period
despite a large number of malicious campaigns by competitors.
Although Beiersdort retains its own business culture, it must
still cooperate with the regime.
1945 – At the end of the Second World War, a majority of the
Hamburg production plants and administrative buildings have
been destroyed.
1950 – ph 5 Euchring is launched on the market. This
innovative ointment focuses on the importance of the skin’s
own natural protective acid barrier in maintaining good skin
health.
1951 – The first deodorizing soap is introduced under the name
of 8x4. The brand is extended into a product family during the
1950s and 1960s.
1955 – Beiersdorf launches a protective hand cream on the
market under the name of atria.
In 1956, a customer claimed that using a Nivea product had
dissolved his/her hair and caused it to fall out. The claims were
dismissed within weeks.
1963 – NIVEA milk – liquid NIVEA Crème in the form of a water
– in – oil emulsion – is introduced “for all – over body care”.
1973 – The images in the “Only Me” NIVEA advertising
campaign illustrate how NIVEA Crème optimally bundles all
aspects of skincare into a single product. The campaign defines
the looks of NIVEA Crème advertising in the 1970s and 1980s.
1989 – Change of strategy: start of the implementation of a
strategic reorientation process focusing on the core
competencies of skin care, wound care and adhesive
technology.
1991 – Acquisition of the la prairie brand. The company
originated in the famous La Prairie clinic in Monteux,
Switzerland.
1992 – Launch of NIVEA’s BLUE HARMONY advertising
campaign, which is still running today. It adapts to the current
spirit of the times with emotionality.
1995 – Acquisition of the FUTURO brand. The company was
founded in Ohio, USA in 1917 by Georg Jung, a German and
produced bandages right from the start. The “Future” brand
with its black and yellow packaging was born in 1936.
2001 – The new strategy enables Tessa to become an
independent affiliate. Tessa AG is formed as a wholly owned
affiliated of Beiersdorf, enabling it to react more flexibly to
consumers and industrial customers.
Professional wound care is spun off in line with the new
strategy and contributed to a joint venture between Beiersdort
and Smith & Nephew. BSN medical, domiciled in Hamburg, is
founded.
2002 – Florida becomes a wholly owned Beiersdoft subsidiary.
The cooperation dates back to 1989 and was intensified
following the reunification of German.
2004 – The new skin research centre opens in Hamburg,
underscoring the innovative strength of the globally successful
Beiersdorf group.
2009 – It is rumoured that Nivea are set to launch their latest
and most revolutionary advertising campaign in mid – 2009. A
spokesperson for the company has allegedly stated that movie
star Robert Patterson will be the new face of Nivea.
FINANCIAL STATMENT
Beiersdorf, the German based cosmetics giant and owner of the
Nivea brand, has reported second quarter results that have
exceeded analysts’ expectations, as sales rose nearly 6 per
cent.
The second quarter marked an improvement in the company’s
first quarter performance in which sales had been largely flat.
For the quarter ending June 1.19 billion in 2004, to reach 1.26
billion for this year.
For the full six month period sales grew from 2.36 billion in
2004 to reach 2.43, a rise of 3.0 per cent, including
adjustments for currency chances.
The increase in sales was also reflected in the EBITDA operating
results, which was up 11.4 per cent for the quarter, from 157
million. For the six month period was up 7.6 per cent to reach
357 million.
Analysts said they were encouraged by the results beat their
expectations. Shares in the company have risen 3 per cent on
the previous week to 96.11 as a result.
The performance has come despite sluggish economies in
many of Beiersdort’s key European markets, and in particular
the domestic market, where the economic woes have curbed
consumer spending. However, the company managed to buck
the trend in Germany, achieving a sales increase of 2.5 per
cent, despite the flat personal care market there.
In the European markets the picture was more mixed. Eastern
Europe returned to digit sales growth, after a difficult 2004, but
sales in Western Europe rose just 1.0 per cent, reflecting
restrained consumer spending across the board. Spain and
Belgium were earmarked as showing strong growth, but the
Nordic countries, France and Switzerland were weaker than in
the first half of 2004.
MARKETING STRATEGIES
The NIVEA FOR MEN team devised marketing strategies to
deliver its objectives. These strategies set out how the
objectives would be achieved within the designated budget set
by the management team.
This focus on product development combined with reason an
emphasis on consumer needs is a key differentiator for NIVEA
FOR MEN. It is a major reason why in the UK the brand is still
the market leader in the male facial skincare market*.
Another cornerstone of the UK marketing strategy for the re-
launch was promotion. NIVEA sought to build on and develop
the approach it had used in the past. In the 1980s advertising
in men’s style and fashion magazines along with product
sampling was a major promotional tool. In the 1990s, the
company used radio, television and press advertising together
with sampling. Since 2000, there has been a greater emphasis
on consumer needs and an increasing use of experiential
activities in the promotional mix. Experiential marketing is
about engaging consumers through two – way communications
that bring brand personalities to life and add value to the target
audience. This helps build an emotional connection between
the brand and the consumers.
It is important to get the promotional balance right. NIVEA FOR
MEN promoted the new launches of its products through a
mixture of above – the – line and below – the – line promotion.
The use of sport was a key element here. NIVEA FOR MEN
supported football events at a grass – roots level through its
partnership with Power league to build positive relationship
with men. This helped create stronger brand affinity for NIVEA
FOR MEN among men. It also allowed the brand to build and
maintain a consistent dialogue with men, which helps to drive
sales. Above – the – line promotion included television and
cinema adverts, which reached a wide audience. By using links
with sport, NIVEA FOR MEN aimed to build a positive male
image associated with male facial skincare. The brand also
benefited from press advertorials in popular men’s magazines,
making the daily usage of their products more acceptable.
Promotions were used to attract new customers. For example,
the distribution of free samples encourages trial of NIVEA FOR
MEN products which drove purchase. These promotions have
helped build up brand awareness and consumer familiarity
which reinforce the NIVEA FOR MEN brand presence. There is a
dedicated NIVEA FOR MEN website to support its products and
provide information to educate men on their skincare needs. To
enhance the brand a tool called a ‘Configuration’ was created
on the website to help customers specify their skin type and
find the product that best suits their needs.
OBJECTIVES
A successful marketing plan relies on setting clear and relate
directly to the business overall aims and objectives. In other
words, the marketing plan must fit with the overall company
strategy that is set out in the business plan. Beiersdorf states
its goals as’… to increase our market share through qualitative
growth. At the same we want to further improve our sound
earnings performance so that we can fulfil our consumer’s
wishes and needs with innovations today and in the future. This
will give us a strong position within the global competitive
environment.
The marketing team set SMART objectives for the NIVIE FOR
MEN re – launch. These are Specific, Measurable, Achievable,
Realistic (given the available resources) and Time constrained
(to be achieved by a given date). The marketing team used
research data to forecast market trends over the next three –
to – five years. This helped them set specific targets for
increasing sales, growing market share and improving its brand
image.
Beiersdorf wanted to increase its UK market share for NIVEA
FOR MEN, but also wanted greater market penetration for male
skincare products. In other words, it wanted not just a greater
share of the existing market; it wanted to expand that market.
It wanted more men buying skincare products. One key aim
was to more men from just considering skincare products to
making actual purchases. It also aimed to sell more male
skincare products to women. Research had indicated that
women were often the initial purchaser of skincare products for
men. NIVEA FOR MEN used this key fact as a way to increase
opportunities for sales. Another objective was to develop the
NIVEA FOR MEN brand image. The NIVEA brand has always
stood for good quality products that are reliable, user – friendly
and good value for money. The brand’s core values are
security, trust, closeness and credibility. These values would be
strengthened and expanded on with the re – launch, to get
more men and women to think of NIVEA as first choice for
skincare.
I am agree with each stage has been managed in Beiersdorf
Corporation. Because is it a cosmetic product, an organization
focus to both female and the male product but Beiersdorf more
focus to male product to build and maintain a consistent
dialogue with men. Beiersdorf also produces well and services
that satisfy the requirements efficiently and effectively to the
customers orientation. Beiersdorf are made understanding the
customer target and what customer need, so that can create a
product values and remand the value can be benefit. So that
Beiersdorf Corporation are practicing to develop of the new
marketing plans to respond for the creating a value marketing.
Beiersdorf also follows all the rules that government give
to the company. For example, Beiersdorf not use any animals
to do the cosmetic product or test on animals. By using the
management cycle, Beiersdorf can manage the challenges with
the competition. The management cycle is planning,
organizing, directing and controlling. This every management
cycle is important and very useful for the Beiersdorf Company.
It makes the jobs become more easily. For the example,
Beiersdorf create new product with new idea and come out with
new creation and development their product around the world.
Year by year, Beiersdorf develop their product and they
level. The Beiersdorf Company come out with popular men’s
magazines, making the daily usage of their products and
increase the sales. Under the management they make a
planning and make some target to earn minimum of European
1.2 billion for this year. Beiersdorf Company has further
development in future.
However, Beiersdorf also practice some rules. For example
all Kat’s skill educated to the employees. Because they belief
that this Kat’s skill educated and motive the employees and
produce ideal of employees. The skills are technical skills,
human skills, and construal skills. The technical skills very
important because the employees have to create new logo or
new creativities by use computer. Human skills also important
because without human skills, Beiersdorf can’t develop the
sales. The capability of the Beiersdorf employees will
mostivate and educated by using this skills. In additionally,
Beiersdorf giving the best practices, studies and skills, research
and training programmers to the employees.
Beiersdoft face many problems when the World War II. These
problems are May not challenges for Beiersdorf. Beiersdorf
open the first branch in London and now Beiersdorf branch in
Asia and other country. In the 1917, the FUTURO brand
Company was found in USA nut the company not so successful
and the company go under Beiersdorf because Beiersdort
become global company and the FUTURO Brand Company can’t
develop as Beiersdorf Company.
Beierdorf Company have their own marketing strategies.
The two strategies is to improve the formula of the products
and to extend the NIVEA FOR MEN product range. The
Beiersdort come out with men product because men not take
care about their face but NIVEA FOR MEN aimed to build a good
and positive male image associated with male facial skincare.
This is one of the successful products in UK. Beiersdorf also
have it own Skin Research Centre. They also have own website
to help customers specify their skin type and find the product
that best suits their needs.
They also give free samples encouraged trial of NIVEA FOR MEN
products which drove purchase. These promotions have helped
build up brand awareness and customer familiarity which
reinforce the NIVEA FOR MEN brand presence. The company
also continues to successfully exploit the Nivea brand with the
new Nivea Sun Series and the Nivea Deo Pure both proving
successful in Europe.
I alternatively approaches and suggest in management
cycle is planning. Because, planning is a set up firms goals plus
and the way to an accompling the objects. Without planning
this Beiersdorf cant success. Planning also setting an
organization to high level and low level jobs and to an achieve
the objective. Planning is way to make the job become easier
coordinate and helpful. It’s also preventing the conflict between
the company and the employees. By the planning, a manager
easily can respond on controlling, organizing and directing.
Without planning, we don’t be success in any fields.
Because manager is responsibility to carry out the
management process to become reality and success. In
additionally, without the planning the company can’t make any
sense of marketing plan. Planning also can be key of the
success and approached objective of the company. The
Beiersdorf Company become their first products such as
tanning oils, shaving creams, shampoo and facial toners but
now the Beiersdorf company have many products such as baby
product, body lotion, lip blame and etc. Year by year, they have
planning to achieve the marketing strategies to give something
new things for men’s
So far they make a planning to face all challenges to be
successful company compare to other company. They have
many competitor company but they planning all things and
become successfully company today. So from my own option,
suggest planning is rolling and coordinating the job and the
work of employees easily.
Secondly important function I suggest is controlling.
Controlling is an art more than science but not easy work to be
manager. Controlling is monitoring the organization progress
towards the objective and taking corrective action toward the
achievement. Something we can make some mistake, by this
controlling, we can correct our mistake and it will help us to
learn from the mistake.
Controlling is the job function of the manager to control all
function of the his or her department