Nivea for Men

NIVEA FOR MEN

GROUP NO.9 WORD 3148

I P

MPGDM SEMESTER 1st [Class of 2010]

ASSIGNMENT ON NIVEA FOR MEN

SUBMISSION DATE: 20th SEPT. 2010

INSTITUTE OF PRODUCTIVITY AND MANAGEMENT, MEERUT

SUBMITTED TO:

RES.PROF.SHAM SHARMA

M.A (Lucknow), D.M.M (London)

SUBMITTED BY:

RITESH KR PRASAD

RAKESH KR SINGH

RAKESH ROUSHAN

RASHIKA GAUTAM

RASMI VEARMA

NIVEA FOR MEN

Acknowledgement

We take immense pleasure in thanking Prof. Sham Sharma Sir

for having permitted us to carry out this assignment.

We wish to express our deep sense of gratitude to our internal

integration of our group members for Internal Guide, for able

guidance and useful suggestions, which helped us in completing

the assignment, in time.

Needless to mention that Prof. Sham Sharma, who had been a

source of inspiration and for his timely guidance in the conduct of

our assignment.

Words are inadequate in offering our thanks to all the resources

from which we have been crossed, and the encouragement and

cooperation in carrying out the project.

Finally, yet importantly, we would like to express our heartfelt

thanks to our beloved parents for their blessings, our

friends/classmates for their help and wishes for the successful

completion of this assignment.

THANK YOU


NIVEA FOR MEN

ContentsAcknowledgement..................................................................................................2

Executive Summary..................................................................................................4

Introduction.............................................................................................................5

MARKETING PLAN....................................................................................................7

SWOT ANALSIS.........................................................................................................8

STRENGTH.........................................................................................................8

WEAKNESS........................................................................................................8

OPPURTUNITY..................................................................................................9

THREAT............................................................................................................10

Q.1) Prepared by: Rakesh kr singh, Rakesh Roshan & Rashika Gautam.................11

Two pieces of data that Nivea used while preparing its marketing plan to relaunch Nivea for men........................................................................................................11

Q.2) Prepared by: Rakesh Kr Singh, Rashmi verma & Ritesh Kr Prasad..................12

Reason for sponsoring football that increase its sales for NINEA FOR MEN..........12

Q.3) Submitted by: Rakesh Roshan& Rashmi Verma.............................................13

Using the case study , put together a SWOT analysis of NIVEA’s position just before the relaunch of NIVEA FOR MEN................................................................13

Q.4) Submitted by: Ritesh Kr prashad & Rashika Gautam......................................15

Effective marketing plan for NIVEA FOR MEN........................................................15

Conclusion..............................................................................................................17

BIBLIOGRAPHY.......................................................................................................18


NIVEA FOR MEN

Executive Summary:

Young generation, timeless beauty and accomplishment of perfection is the first aim of every company’s agenda. In case of skincare products need of every customer is to get perfect. The beauty industry is a billion dollar enterprise, positioning them to take advantage of increasing interest in cosmetic advancement and improvement. Aesthetic plastic surgery in 2003 in American society proclaimed that 8.3 million voluntary cosmetic surgeries were performed; 3.7 million were on women from the ages 35-40 years, which we believe is a big market. Every age group is represented with some special type and significant market data; therefore we believe that Nivea to take part in the era of cosmetic transformation. We believe by taking existing Nivea product rich in healing and moisturizing properties & enhancing it with these two additional ingredients. Nivea has an existing loyal , international customer base & they are ready for a product to progress with them as their needs change in the twenty first century.


NIVEA FOR MEN

Introduction

The Nivea brand is one of the most recognized skin and beauty

care brands in the world. Nivea cream first came in the market in

1911 and the NIVEA brand now extends to 14 product ranges

worldwide from suns care to facial moisturizers, deodorant and

shower products. When in 1980 Beirsford launched its Nivea for

men internationally, it came up with its after balms shave balm

product, as it was the first balm in the market that didn’t contain

alcohol, which can irritate the skin so it became very popular

among its customer. Now the customers were looking for those

product which protected the face from irritation after shaving and

that could give the calm and sooth irritating after shave.

The Nivea had launched its product Nivea for men in the UK

market in 1998. At that time total annual sales of men's skincare

products (facial and shaving preparations) in the UK were only

£68 million with the male facial product sector worth only £7.3

million. Sales of male skincare products have grown steadily since

the launch Nivea for men and the market in 2008 was worth over

£117 million with male facial products worth £49 million.

The success of Nivea was possible because of its planning and

marketing strategy. The company had set its goal and objectives

and implemented its task accordingly. One of the reason for the

success of its product was that it adopted the promotional activity

through sponsoring the football game in UK. This case also deals


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with the consumers’ expectations, and fulfilling their demand by

launching new product.


NIVEA FOR MEN

MARKETING PLAN

Every business has its goals and objectives and this can be

achieved through a business plan. The company makes its

business plan and they implement on it. the success or the failure

ultimately depends on it. one of the essential part of the business

plan is the marketing plan ,on the basis of which the survival of

the product depends. Marketing involves identifying, anticipating

and satisfying customer needs. A marketing plan takes the stated

aims and objectives and it works according to marketing activities

to ensure those objectives are achieved. The time period for

marketing plan is not constant or fixed but for the brand level it

can take from 1 to 5 years. Marketing plan can be either for

product or services, a brand or the product line. Marketing

strategy is the backbone of marketing plan, the action is

performed on its sound basis.

In this case study Nivea had used marketing strategy,

promotional strategy, pricing strategy to attract more and more

customers towards their product, different marketing plans were

adopted by the company before launching its product in the

market. It had also used all its marketing plan so that its product

can survive in the market.

The marketing plan consists of the following :-

S W O T Analysis The implementation on plan Marketing strategy Sales forecast


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Budget Evaluation

SWOT ANALSISSWOT or the competitive analysis is done to know the current position of the business, and what are the internal and the external factor that is affecting it.

STRENGTH:

Nivea for men had identified several strengths in UK market leading male facial skincare brand which gave it strong brand recognition. Sound financial base, so it had the resources to put together a strong marketing campaign. Researchers with the scientific skills to develop products that men wanted. It had the brand recognition before relaunching of the product. The other strength of Nivea for men was as:-

First company to launch non-alcoholic after-shave balm. It had well known logo. Giving emphasis on cost leadership strategy Promotional strategy Product category and over 300 products The product available in more than 150 countries


NIVEA FOR MEN

WEAKNESSAs the leading male facial brand, Nivea for men was also having some weakness. Today the customers are very price sensitive, so if any change in price can lead to its sales declination. If any change in quality is made than the customer taste may change and they may switch over to other product. Today most of the product are online but Nivea have not quoted its price in its website so here the customer can’t buy the product online and this can hamper the sales volume of the company. The following weakness are also some of the weakness:-

Continuation of old fashionable logo and product Not emphasizing on the product development Price of the product not available online Change in the quality of the product Inexactness of market research

OPPURTUNITYOne clear opportunity was that the market was growing NIVEA FOR MEN had seen an increase in the sales of male skincare products and it wanted a greater share of this market. The company wanted to take advantage of changing social attitudes. Men were becoming more open, or certainly less resistant, to facial skincare products. Nowadays women do shopping in behalf of men so it have the opportunity to capture the attention of both genders, as it produces the product for both. The sales volume can be increased by affective advertisement as today the men are attracting more towards the facial product. Earlier it had the advantage that it was the only one company to produce male creams and balms. So it have the maximum market share. Some other opportunity are:-

Brand image Reach out to other buyer Have a new modern look


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Worldwide promotion Sponsoring football

THREATHowever, as the market for male skin care products grows, there are threats that consumers were becoming more conscious of different substitutes products. They were also very conscious about the price of the product. They often expected sales promotions such as discount and offers. Risk of competitors entering in the market, Nivea for men needed to differentiate its products in order to ensure that in an increasingly competitive market, its marketing activity gave positive return on investment in terms of sales and profit. The following are some of the threats:-

increasing global competitors people may prefer traditional look rebranding may downfall the sales volume consumers becoming more price conscious


NIVEA FOR MEN

Q.1)Preparedby:

Rakeshkrsingh,RakeshRoshan&RashikaGautam.

Two pieces of data that Nivea used while preparing its marketing plan to relaunch Nivea for men.

The data which Nivea used during relaunch of its product was based according to the customer expectation. Their marketing plan involves analysing identifying and satisfying their customers. Their marketing plan was to capture a big share in market and explore its product internationally.

When we wanted to relaunch the brand, Nivea for men we took the use of two data’s namely:-

S W O T analysis Business plan

A swot analysis is, as the name indicates, analysis that shows a company’s strengths and weaknesses, the opportunities it has and the threats it phases, and it used to measure how the company can grow the current status of the company. Strengths and weaknesses are the company’s micro environment while opportunities and threats are micro environment. We can state this environment as the condition close to a company, such as suppliers, customers, competitors and so on.

The second data that company used was the business plan, it is that plan which is used to study the future activities of the company. This can be over financial, marketing, production plans and so on. It also used those past performance data for marketing plan and it was of tremendous benefit in analysing about the market situation

The company wanted to increase its market share in the present skincare market but simultaneously it also aimed at expanding its


NIVEA FOR MEN

market globally. As it has been mentioned that company also focussed in selling its male skincare product to female. It also made good packaging of its product which differentiated its product with its competitors.

The strategies adopted by company were during relaunch:-

Promotional strategy : by the help of mass media such as print media as well as ad agencies.

Branding and packaging Innovation in that product Emphasis on sales volume as well as capturing market

share. Creating image on the mind of the customer

Q.2) Prepared by: Rakesh Kr Singh, Rashmiverma&Ritesh Kr Prasad

Reason for sponsoring football that increase its sales for NIVEA FOR MEN.Everyone is aware of that Nivea used football players to promote Nivea for men, and they might conclude that the output of the promotion had been very positive. They used football players because the product line of cosmetic products from the slide of men were very low. Analysis and surveys showed that women are likely to purchase cosmetic product for their partners, and therefore Nivea supported football events across UK to build up the positive relationship with men. As before maintained this created acknowledgement for Nivea for men among men, this we usually call brand affinity. Beside this, the promotion also created conversation between Nivea and men, where women were an intermediary before.The other reason was with the help of football sponsorship definitely people will become more familiar with their product .As football is largest playing game all over the world .Worldwide people like to watch this


NIVEA FOR MEN

game ,so with the help of this game definitely NIVEA will be getting recognition, value and exposure in the market. So, for achieving above targets NIVEA FOR MEN supported football events at a grass- roots level through its partnership with power league to build positive relationships with men.

Macro environment, the condition that affects the company, such as politics, economical, natural and so forth. These are condition which the company do not have an influence on. As Nivea was on the verge to new launch its product for men .And football is men oriented game so definitely this sponsorship will help them to promote their product among men.

Q.3) Submitted by: RakeshRoshan&RashmiVerma

Using the case study, put together a SWOT analysis of NIVEA’s position just before therelaunch of NIVEA FOR MEN.

Swot analysis of Nivea’s position just before the relaunch of Nivea for men

STRENGTH

the logo is very familiar - Nivea has well known branded name so it was easy for them to target audience and was easily trustworthy.

Simple effective design- The design of the logo is simple and effective and easy to recognize.

Cost leadership strategy- Their cost was comparably lower than their competitors so this was the reason they were able to sustain in their market. the strategy of the company is to gain the competitive advantage in taking consideration of the price of those of its competitors in that product line.

WEAKNESS


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Focus purely on women- Their weakness was that earlier they focussed only women skincare products.

OPPORTUNITIES

The increase in sales volume- Think of the possibility to expand revenue, increase sales, and boost profitmargins. To give Nivea a sophisticated new look.

Out to other buyers-Nivea largely targets its products towards woman It did not focussed on men. Men nowadays care about their attire just as much if not more so aswoman do. So there was a demand for men skin care product in the market.

THREAT

Sales may be affected by rebranding- One of the wrong perception by the company is that rebranding of a product is not necessary that it will increase its sales, there is high risk involved in rebranding

People may preferred to earlier look- introducing new product look may hamper the sales volume of the company, as the customers had the image of the previous logo and the change on it can affect in various ways.

Emerging Competition- Other competitors in the market was a major threat to them.

Q.4) Submitted by: Ritesh Kr prashad&RashikaGautam

Effective marketing plan for NIVEA FOR MEN

After going through the case study we think that the output of the relaunch has been very positive, and therefore also the


NIVEA FOR MEN

marketing plan.we think it has been very effective because Nivea has achieved the goals and objectives they had set, for example in 1998 before the relaunch the male facial market was only worth £ 68 million and in 2008 after the relaunch the total sales of men skincare products were £ 117 millions of this £ 30 million for Nivea for men. This shows that they have achieved what they have desired. And this has done through effective marketing strategies and the innovative ways to implement them. Marketing plan has also helped the Nivea for men in many ways like:-

Focus on product development combined with an emphasis on consumer needs which was resulted as the key differentiator for Nivea for men.

It created strong brand affinity. In another words it helped its brand to build and maintain a consistent dialogue with men, which helps to drive sales.

Promotions were helpful in attracting the new customers. Nivea for men website was also dedicated to support its products and provide information to educate men on their skincare needs which not only helped in attracting new customers but also to retained its customers.

Experiential marketing two way communications had brings the brand personalities to life and add value to the target audience. This helps to build an emotional connection between the brand and the consumers.

Nivea for men also supported the football events for its promotion like partnership with power league which helped in building positive relationship with men.

The distribution of free samples encouraged trial and helped to build up brand awareness and consumer familiarity which reinforce the Nivea for men brand presence.

Innovative ideas like targeting the men who only considers the skin care products but doesn’t purchases it and the women who also purchases these products for their male


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member of the family which helps the Nivea for men to increase its market, market share and so profit.


NIVEA FOR MEN

Conclusion From this case, we have come to know the different marketing plan as well as business plan of Nivea, during the relaunch of Nivea for men. Here we have come to know that how the strategy adopted by Nivea had helped to increase its sales volume. In this case the promotional strategy as well as sponsorship was also responsible for the upliftment of the product. we have also found the perfect combination of market segmentation of this segmentation.

We have concluded this case study by observing the various facts and figures which Nivea used to forecast from the previous marketing plan, and used it while making the business plan of Nivea FOR MEN. They also focused on male customer who was considering the male skincare product but not purchasing them, this helped them in increasing the market. They also aimed at female customer who bought the male product for their partners. The whole marketing strategies not only helped them in increasing their market share but was also helpful in increasing the whole market of men skin care products.


NIVEA FOR MEN

BIBLIOGRAPHYwww.niveaformen.co.uk

www.niviacasestudy.com

www.niveaproduct.com

www.nivea.com

www.goole.co.uk

Marketing management (Philip kotler)


http://www.goole.co.uk/

http://www.nivea.com/

http://www.niveaproduct.com/

http://www.niviacasestudy.com/

http://www.niveaformen.co.uk/

Nivea for Men

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