anjalicutek
Anjali Khurana
Nivea is a global skin- and body-care brand, owned by the German company Beiersdorf. The company began in 1911 when Beiersdorf developed a water-in-oil emulsifier as a skin cream with Eucerit, 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, Beiersdorf began producing products such as tanning oils, shaving creams, shampoo and facial toners. The trademark "Nivea" was expropriated in many countries following World War II. Beiersdorf completed buying back the confiscated trademark rights in 1997.
Internationalisation during the 1980s propelled the Nivea brand to a wider global market.
1882: Pharmacist Carl Paul Beiersdorf establishes the company on March 28. The company Nivea originated from Poland and was bought by German investors. The date of the patent document for the manufacture of medical plasters is taken as the date of the company’s formation.
Carl Paul Beiersdorf produces ljkgutta-percha plasters in his laboratory on the basis of his patent, laying the foundations for modern plaster technology.
1890: Pharmacist Dr. Oskar Troplowitz 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 Eucerit, an emulsifying agent. Eucerit is the basis for Eucerin and, later on, for NIVEA Creme.
1906: The first overseas branch is established in London.
1909: Labello is launched on the market. It is the first lip care product in sliding tube packaging. The term Labello is derived from the Latin for "beautiful lip" (labeo = lip; bello = beautiful).
1911: NIVEA Creme – the first stable water-in-oil emulsifier – is introduced. The emulsifying agent Eucerit is made from lanolin, found in sheep's wool, and is the key to NIVEA Creme's unique properties.
It is said that the main ingredient of Helena Rubinstein (HR) product also comprises sheep's wool in Australia.
1918: The deaths of Oskar Troplowitz and his partner Otto Hanns Mankiewicz result in the formation of a stock corporation (limited company) on June 1, 1922.
1922: Willy Jacobsohn 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.
* In 1924, Nivea remodelled its cream in a blue tin with a white logo.
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.
Marketing mix
Product
Price
Place
Promotion
PRODUCT
To understand the market Beiersdorf researched key market segments using:
Focus group.
Gathering data from customers.
Product testing
Research & Improvement
The market research identified that the young girls do not want medicated product but want their regime for their normal skin.
IMPROVEMENTS:
Changing the formula for some
products.
Introduced two completely new
product.
A new package design.
change in product description.
Introduced larger pack sizes.
Corporate Responsibility
Reduce packaging and waste.
Use of more natural products.
Increase opportunities for recycling.
Pricing
Pricing strategies include:
Cost based price : to cover cost plus a profit element.
Penetration price: initially set low price to ensure a high volume of sales.
Skimming price : initially set high price for a new and unique product
Price leader
Nivea sets the price level that competitors will follow or undercut.
The pricing strategy for Nivea is not same as that of the retailers. Retailers may also use promotional pricing:
loss leaders - selling at less than cost to attract volume sales
discounting - reductions and promotional offers.
Nivea visage young’s pricing strategy now generates around 7% of Nivea visage sales
Place
Place refers to:
How the product arrives at the point of sale.
Where a product is sold. It includes retail outlets, direct marketing etc
Distribution Channels
Main channels for product are retail
outlets.
65% sales – high street shops such
as boots and superdrug.
35% sales – large grocery chains
such as ASDA, Tesco and sainsbury.
research shows that around 20% of younger target market buys products in the high street shops while shopping with friends
Promotion
Promotion is telling the customers that products are available and persuade them to buy.
above-the-line - directly paid for, such as TV advertising
below-the-line - using other methods like events, trade fairs, direct mail and the strength of the brand.
*
Promotional activities
Events or trade fairs
Direct mail
Public relations
Branding
Sales promotions
Consumer-led Promotion
NIVEA visage young uses various below - the – line routes:
Use of product samples at events and through the website.
It set up an online magazine called FYI (Fun, Young and Independent)
Has pages on social network sites such as MySpace, Facebook and Bebo
During the 1930s, Beiersdorf began producing products such as tanning oils, shaving creams, shampoo and facial toners. The trademark "Nivea" was expropriated in many countries following World War II. Beiersdorf completed buying back the confiscated trademark rights in 1997.
Internationalisation during the 1980s propelled the Nivea brand to a wider global market.
1882: Pharmacist Carl Paul Beiersdorf establishes the company on March 28. The company Nivea originated from Poland and was bought by German investors. The date of the patent document for the manufacture of medical plasters is taken as the date of the company’s formation.
Carl Paul Beiersdorf produces ljkgutta-percha plasters in his laboratory on the basis of his patent, laying the foundations for modern plaster technology.
1890: Pharmacist Dr. Oskar Troplowitz 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 Eucerit, an emulsifying agent. Eucerit is the basis for Eucerin and, later on, for NIVEA Creme.
1906: The first overseas branch is established in London.
1909: Labello is launched on the market. It is the first lip care product in sliding tube packaging. The term Labello is derived from the Latin for "beautiful lip" (labeo = lip; bello = beautiful).
1911: NIVEA Creme – the first stable water-in-oil emulsifier – is introduced. The emulsifying agent Eucerit is made from lanolin, found in sheep's wool, and is the key to NIVEA Creme's unique properties.
It is said that the main ingredient of Helena Rubinstein (HR) product also comprises sheep's wool in Australia.
1918: The deaths of Oskar Troplowitz and his partner Otto Hanns Mankiewicz result in the formation of a stock corporation (limited company) on June 1, 1922.
1922: Willy Jacobsohn 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.
* In 1924, Nivea remodelled its cream in a blue tin with a white logo.
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.
Marketing mix
Product
Price
Place
Promotion
PRODUCT
To understand the market Beiersdorf researched key market segments using:
Focus group.
Gathering data from customers.
Product testing
Research & Improvement
The market research identified that the young girls do not want medicated product but want their regime for their normal skin.
IMPROVEMENTS:
Changing the formula for some
products.
Introduced two completely new
product.
A new package design.
change in product description.
Introduced larger pack sizes.
Corporate Responsibility
Reduce packaging and waste.
Use of more natural products.
Increase opportunities for recycling.
Pricing
Pricing strategies include:
Cost based price : to cover cost plus a profit element.
Penetration price: initially set low price to ensure a high volume of sales.
Skimming price : initially set high price for a new and unique product
Price leader
Nivea sets the price level that competitors will follow or undercut.
The pricing strategy for Nivea is not same as that of the retailers. Retailers may also use promotional pricing:
loss leaders - selling at less than cost to attract volume sales
discounting - reductions and promotional offers.
Nivea visage young’s pricing strategy now generates around 7% of Nivea visage sales
Place
Place refers to:
How the product arrives at the point of sale.
Where a product is sold. It includes retail outlets, direct marketing etc
Distribution Channels
Main channels for product are retail
outlets.
65% sales – high street shops such
as boots and superdrug.
35% sales – large grocery chains
such as ASDA, Tesco and sainsbury.
research shows that around 20% of younger target market buys products in the high street shops while shopping with friends
Promotion
Promotion is telling the customers that products are available and persuade them to buy.
above-the-line - directly paid for, such as TV advertising
below-the-line - using other methods like events, trade fairs, direct mail and the strength of the brand.
*
Promotional activities
Events or trade fairs
Direct mail
Public relations
Branding
Sales promotions
Consumer-led Promotion
NIVEA visage young uses various below - the – line routes:
Use of product samples at events and through the website.
It set up an online magazine called FYI (Fun, Young and Independent)
Has pages on social network sites such as MySpace, Facebook and Bebo