Case study Nivea Essay

NIVEA FOR MEN wanted to increase its sh atomic number 18 of the UK male skincare tradeplace. This case study examines how NIVEA re-launched the NIVEA FOR MEN commit in 2008. This was part of its overall be after to develop the range in the UK. It shows how the order developed a selling political platform for the relaunch and organised its merchandising activities to achieve its aims and objectives. The study centralizees on how a company can respond to changes in consumer expectations, external influences and business organization aims to achieve those objectives.What is a marketing aim?A business needs to set its overall heed for the company through a business plan. This plan sets out how the company is to achieve its aims. The aims and objectives of a business inform and shape its business plan. A indispensable part of the overall business plan is the marketing plan. The relationship between the two plans is shown in the diagram.10532184_NIVEANIVEA STUDY V623/6/091525P age 2Marketing involves identifying, anticipating and satisfying customer needs. A marketing plan stimulates the stated aims and objectives and then puts in place a series of marketing activities to ensure those objectives are achieved. Marketing plans can cover any time period, only normally set out activities for the next one to five days at either a business or speck level. www.thetimes100.co.ukGLOSSARYBrand A name, symbol or design utilize to identify a specific crossway and to stigmatize it from its competitors. wonk analysis Identification and evaluation of the strengths and weaknesses inside a firm and the opportunities and threats in its external environment. Return on investment funds The return on the funds invested in the business. Profits money that is earned in trade or business, after paying the costs of producing and selling goods and services.The principal(prenominal) sections of the plan cover SWOT and competitive analysis to assess where the business or bell ringer is currently and what competitors are doing objectives what the plan needs to achieve the marketing strategy how the objectives get out be achieved gross sales forecast by how much sales are likely to increase budget how much the marketing activities will cost and how the plan will be financed evaluation how outcomes will be monitored and measured. There is no set model for a marketing plan. The structure of the plan and the amount of detail will depend on the size of the firebrand, the timescale involved and how the market and economy is behaving. However, NIVEAs marketing plan for the relaunch of NIVEA FOR MEN follows closely the intimate described here.Assessing the marketThe first step in devising a marketing plan is to conduct an evaluation of the business, its brands and products. This should include an assessment of the brands position and the state of the market. NIVEA FOR MEN needs to know what its male customers want and what competitor products exist. As well as targeting the male consumer, women are also an master(prenominal) target market for NIVEA FOR MEN. This is because women often buy male grooming products for their partners as well as abeting them choose which products to buy. NIVEA FOR MEN utilise a SWOT analysis to helper it assess the market. This takes a detailed look at the internal strengths and weaknesses of the business, as well as external opportunities and threats in the marketplace.NIVEA FOR MEN place several strengths NIVEA FOR MEN was the UK marketleading male facial nerve skincare brand*which gave it strong brand recognition. The company had a sound financialbase, so it had the resources to puttogether a strong marketing campaign. It also had staff with relevant skills researchers with the scientific skills todevelop products that men want andmarketing staff with the skills to helppromote these products effectively.As the leading male facial brand,NIVEA FOR MEN needed also to beaware of any weakn esses Was the product range still relevant forthe target audience? Did it have the right sales anddistribution outlets? Was its market research up-to-date?S WO TOne clear opportunity was thatthe market was growingHowever, as the market for maleskincare products grows, thereare threats NIVEA FOR MEN had seen an increase inthe sales of male skincare products and itwanted a greater treat of this market. The company wanted to take advantageof changing social attitudes. Men werebecoming more open, or certainly lessresistant, to facial skincare products. Consumers were becoming moreknowledgeable and price conscious.They often expect sales promotions suchas discounts and offers. The risk of competitors entering themarket. NIVEA FOR MEN needed todifferentiate its products in order toensure that, in an increasinglycompetitive market, its marketing activitygave prescribed return on investmentin terms of sales and profits.* NIVEA FOR MEN the UKs leading male skincare brand (IRI Data to 27th Dec 2008).Page 3Setting objectivesA successful marketing plan relies on setting clear and relevant objectives. These mustiness 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 goal as toincrease our market share through soft growth. At the same time we want to further improve our sound earnings performance so that we can full our consumers 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 NIVEA FOR MEN relaunch. 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 course of instructions. This helped them set specific target s 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 in force(p) 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 move men from upright 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 part products that are reliable, user-friendly and good value for money. The brands 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.www.thetimes100.co.ukGLOSSARYSMART objectives Frameworkfor constructing objectives in a waythat meets a business aim.Marketing strategies Longterm plans designed to enable anorganisation to identify and meetthe wants and needs of itscustomers.Promotion Making productsand services better known througha range of activities.Marketing strategiesThe 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.Two strategiesThis focus on product development combined with 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 shape up on and develop the approach it had used in the past. In the 1980s, advertising in mens style and fashion magazines along with product take 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. * NIVEA FOR MEN the UKs leading male skincare brand (IRI Data to 27th Dec 2008).10732184_NIVEANIVEA STUDY V623/6/09www.thetimes100.co.ukGLOSSARYAbove-the-line promotionsDirect expenditure on advertising,such as for a TV commercial.Below-the-line promotionscollateral expenditure on promotion,such as through publish gifts, PR orcompetitions.Brand affini ty How wellcustomers identify with the brand.Evaluation A positive processthat seeks to determine the worth,value or meaning of something.Key performance indicatorsFinancial and non-financialmeasures to monitor performanceacross a range of activities within afunction, department or role.1525Page 4It is important to get the promotional balance right. NIVEA FOR MEN promoted the upstart launches of its products through a form 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 Powerleague to build positive relationships 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 mens magazines, making the daily usage of their products more acceptable. Promotions were used to attract new customers. For example, the distribution of free samples encouraged 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 sacred 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 Configurator was created on the website to help customers specify their skin type and find the product that best suits their needs.Conclusion evaluating the planThe Times Newspaper Limited and MBA Publishing Ltd 2009. Whilst every effort has been do to ensure accuracy of information, neither the publisher nor the client can be held responsible for errors of omission or commission.The marketing plan is a cycle that begins and ends with evaluation. The utmost stage in the marketing plan is to measure the outcomes of the marketing activities against the original objectives and targets. Continuous evaluation helps the marketing team to focus on modifying or introducing new activities to achieve objectives.108NIVEA FOR MEN adopted a range of key performance indicators to assess the success of the NIVEA FOR MEN re-launch in the UK. It looked at market share Did the re-launch drive this growth and help achieve its market share objectives? NIVEA FOR MEN is market leader in many countries and is consistently gaining additional market share. overall sales Was this in line with objectives? Internationally, NIVEAFOR MEN skincare products grew by almost 20%. Its sales in the UK market at retail in 2008 were nearly 30 million and in line with expectations. brand image ratings NIVEA FOR MEN was the Best Skincare Range winner in the FH M Grooming Award 2008 for the fifth year running. This award was voted for by consumers. It illustrates that NIVEA FOR MEN has an extremely positive brand image with consumers compared to other brands. product innovation In response to consumer feedback and following extensive product innovation and development, the NIVEA FOR MEN range has been expanded and the existing formulations improved.These results show that, in the UK, the NIVEA FOR MEN re-launch met its overall targets, which was a significant achievement, considering the difficult economic climate. The marketing plan for the re-launch used past performance and forecast data to create a new marketing strategy. This built on the brand and companys strengths to take advantage of the increasing change of male attitudes to using skincare products.Questions1. Describe two pieces of data that NIVEA used when preparing its marketing plan to relaunch NIVEA FOR MEN.2. Explain why NIVEA used football sponsorship to help increase its sales of NIVEA FOR MEN products.3. Using the case study, put together a SWOT analysis of NIVEAs position just before the relaunch of NIVEA FOR MEN.www.niveaformen.co.uk4. Discuss how effective you think the marketing plan for NIVEA FOR MEN has been.