Tuesday, May 31, 2011

Nivea's Promotion within the marketing mix REDO

                                     
Nivea is off course a big brand in the industry of cosmetics. Nivea is part of Beierdorf which started in 1882. The company is selling skin and beauty care products all over the world. Nivea is the most important brand of Beierdorf, of the total sales from Beierdorf is 86% of the sales coming from nivea products. The brand nivea started in 1911. The name nivea is coming from a Latin word niveum, which means snow. The name snow because of the white appearance of nivea. The company Beierdorf is always trying to find new gaps in the market. They first developed a crème for older woman which was meant for wrinkles, scrubby and dry skin. They did not had a product for the younger generation between 13 and 19. They saw a gap in the market. Which they wanted to for fill. They made a new crème which was called Nivea Visage young. The new target group became younger girls between 13 and 19 who wanted to have a proper skin. Which was helping their skin keep fresh, proper and beautiful. They wanted to do this without a shiny look. Beierdorf needed to have a good marketing strategy which needed to accomplish in the right order. The marketing mix can you divide roughly into four chapters. Well known as place, product, promotion and price
In the marketing strategy the product is an important factor but not the most important of the four. First the name of the new product. Nivea Visage Young are three simple words but it is very attractive for customers because the word nivea is all ready worldwide known as a skin product. Visage is French for face so now it is all ready saying that the product is a face product. With the word young they want to attract the young generation because that is there target group.
The company Beierdorf found the gap with research which was resulting in Nivea Visage young. Beierdorf did three different types of research:
·        Focus their self what their focus group is by listening directly to the customers
·        Get data by different kind of research techniques
·        Test their products on different kind markets
With the researches came out that more younger people did not wanted to have a product which was for medication but to help their skin fresh, proper, and beautiful as I explained as well in the introduction. The big advantage of this product was that at that time they did not had any competitors because they had a new and unique concept. This was nivea giving a blue ocean in the market.
Within the product they used instead of alcohol natural ingredients like sea shells and minerals, they also did not test it on animals. Beierdorf also wanted to show that was better for the environment they did this by reducing the packaging, and recyclable flacons. The package of the product needs to attract the customers because the first impression of the product is off course the package of the product. This is why they use patterns of the sea shells and patterns of nice flowers. The patterns are showing that it are very natural products, which are healthy for your skin. With all these points Nivea Visage young is showing that is for the right target group.
The role of promotion for the product within the marketing mix :
Nivea  needed to show in the marketing mix what the crème does and what kind of effect it has. The people all ready know the brand because it all ready exist since 1882 and is all ready familiar for a lot of people. The target group for Nivea with this crème is the younger generation between 13 and 19 years old. The promotion for the product needs to show this, so with a fresh colours on the flacon for example.
A lot of factors are affecting the price of Nivea Visage Young. With factors I mean like costs of production, target marketing, and the company objective.  They made a price which is covering all the costs of the production and they make a good profit on it. The price is the only factor in the marketing mix with is producing revenue for a company. The competitors need to have the same price or be under the price of Nivea because Nivea has got something unique. If they are making a price they need to consider the target group. Which are young girls but also mums who will buy the product in the supermarket probably for their daughter(s). Nivea let the people think that the amount of money which you pay for the product is worth for the quality. There are also two other reasons. The new product couldn’t be too low as well because then people think maybe there is something wrong with the product or the product is not good enough. The other way around could happen as well that the price is too high because than people would discourage to buy the product. You only can ask a lot of money for your product if your product has a good status. Giving a good status to your product is what you can do also with like good promotion and having a good reviews on internet. The place where the target group buy nivea visage young is high street shops and supermarkets. If they choose a higher price than normal, they would lose in the end of the competitor because they can offer their product much cheaper. They still be the price leader in the skincare  market because they are identifying there self as the inventor of the beautiful care products. The competitors will need to follow their prices or offer their prices lower to get more market share.
The role of promotion for the price within the marketing mix :
Nivea could make this product expensive because it is something which people were looking for a while, it is a gap in the market. It you make something expensive the automatic link which people have is that it is good quality. I wouldn’t focus on price too much because if you make commercials with 2 get 1 free people make a link that the product isn’t good in combination  with the quality.
The place of Nivea visage young needed to be on a place where the customer can buy it at the desired moment. Nivea visage young can you find in high street shops, in supermarkets, and on internet because these are the most common places where people would like to skincare products. The products are lying in supermarkets because parents mostly buying the skin products for their daughters. Nivea did also research that a lot of teenagers got influence on their parents, it is also logical that they have off course because they are their children. The internet is also a very smart thing of Nivea because then you can cut the chipping costs of the product and you make more profit on the product. 
The role of promotion for the place within the marketing mix :
The place in the marketing mix is important because people need to know where they need to get the product, only a lot of people are using all ready Nivea so they think automatically they get the new product as well in the same shop. But I would say something about the place in the marketing mix for the people who didn’t use Nivea yet. What Nivea do needs to consider is that they have their product in the shelf’s. Otherwise the people are coming because they see it on commercials and then the shops doesn’t have it.
Businesses use promotion to give information about new products/services to customers. There are different kind of ways of promotion. Like magazines, TV, radio, flyers, etc. For knowing which kind of promotion you need, you need to know what your target group is. Nivea visage young used the promotion by organizing events around the world. Beierdorf set up an event to promote the brand awareness that they invented a new product and it was healthy. The event was meant for customers between the age of 13 and 18 from different schools in Dubai. With this they can have direct contact with their target group. The set up of those schools were learning the students to express their creative mind , and their talent. The event was about fun and make healthy lifestyle choices. In this way the students and the Nivea Visage young both had an advantage. By Nivea Visage young they also give free samples to customers, so they can try them out and see what they think of it. They give them away on websites, on the street, exhibitions, etc.
The role of promotion for the promotion within the marketing mix :
This is the most important factor in the marketing mix because Nivea made a total new product for a total new  market. The people need to know that they developed something new and nobody else has it.
If I had to rate the marketing mix in 1 till 4 I would say:
1.      Promotion (unique concept, people need to be aware)
2.      Product (it needs to show what the product has to offer)
3.      Place (people need to be remind of where they need to get the product)
4.      Price (May not to be too expensive, people will discourage to buy the product. It may not to be cheap otherwise they think the combination between quality and price isn’t right.