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The International Journal
ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES
ISSN 2345-0282 (online)
http://jssidoi.org/jesi/aims-and-scope-of-research/
2015 Volume 3 Number 2 (December)
ANALYSIS OF MARKETING MIX: NIVEA CASE STUDY
Margarita Išoraitė
Vilniaus kolegija/University Applied Sciences
Didlaukio str. 49, LT-08303 Vilnius, Lithuania
E-mail:misoraite@gmail.com
Received 20 August 2015; accepted 25 September 2015
Abstract.
This article analysis theoretical aspects of marketing mix. Articla also present Nivea background, Nivea history,
Nivea SSGG analysis, Nivea marketing mix. Article submit study data about Nivea marketing mix. The article takles ICT
impact on entrepreneurship by putting emphasis on theoretical aspects of social network, social network marketing. Also
article presents research concerning Nivea marketing mix.
Keywords:
marketing, marketing mix, price, place, product, promotion, Nivea
JEL Classifications
: M31, M37
Reference
to this paper should be made as follows:
Išoratiė, M. 2015. Analysis of marketing mix: Nivea case study,
Entrepreneurship and Sustainability Issues
3(2):173-185. DOI:
http://dx.doi.org/10.9770/jesi.2015.3.2(5)
1. Introduction
Dabija, Dinu, Abrudan, Postelnicu (2014) argue that „retail marketing mix includes assortment, private labels,
price and acquisition finance, customer service, communication, store environment, store location, customer
loyalty policy“. Alipour, Ghanbari, Moniri (2011) state that prior to 1980, studies of marketing organization
focused largely on its role in implementation of the marketing paradigm. Offered 4ps as marketing mix and
introduced that to the scientific centers. He introduced four main factors as effective factors in the marketing
of products. These factors were product, price, place and promotion. According to Jain (2013) „the marketing
mix concept also has two important benefits. First, it is an important tool used to enable one to see that the
marketing manager’s job is, in a large part, a matter of trading off the benefits of one’s competitive strengths
in the marketing mix against the benefits of others. The second benefit of the marketing mix is that it helps to
reveal another dimension of the marketing manager’s job. „ Nivea also has marketing mix. Nivea is an
established name in high quality skin and beauty care products. It is part of a range of brands produced and
sold by Beiersdorf. Beiersdorf, founded in 1882, has grown to be a global company specializing in skin and
beauty care. In the UK, Beiersdorf's continuing goal is to have its products as close as possible to its consumers,
regardless of where they live. Its aims are to understand its consumers in its many different markets and delight
them with innovative products for their skin and beauty care needs. This strengthens the trust and appeal of
Beiersdorf brands. The business prides itself on being consumer-led and this focus has helped it to grow Nivea
into one of the largest skin care brands in the world. Brei, D'Avila, Camargo, Engels (2011) stated that in the
current globalized market, companies have seen the internationalization of their activities as a way to remain
International Centre for
Entrepreneurship Research
174
competitive. Decision-making concerning the international marketing mix has become critical, especially
because of the influence this arrangement has on performance.
Purpose of this article – to analyze Nivea marketing mix.
Object – Nivea marketing mix.
Study methods – literature analysis, case study, questionnaire.
Research problems
arise from research questions “Is Nivea have effective marketing mix?”
Methodology.
Scientific analysis of the literature and literature analysis was performed in order
to reveal theoretical aspects of marketing mix, Nivea marketing mix, Nivea SWOT analysis. Application was
used in order to know respondents opinion about Nivea marketing mix.
2. Discussion and results
The
marketing mix
is a
tool to help understand what the product or service can offer and how to plan
for a successful product offering.
The marketing mix is most commonly executed through the
4 P’s of
marketing
: price, product, promotion,
and p
lace.
In different marketing literature exit 7 P, for example p
rice,
product, promotion,
p
lace
, people, process and physical evidence. S
uccessful use of a balanced marketing
mix, Nivea has managed to create a clear position in the market. It addresses a need felt by a specific niche
segment. Traditional distribution methods are balanced by a unique product and updated promotional
strategies. This ensures that the brand message reaches the right people at the right time in the right way. It is
vital for any company to focus equally on all elements of the marketing mix while planning for a product.
Eventually, there may be a need to divert more resources towards one variable such as strong distribution
channels over promotional activities. But this needs to come after a clear plan and strategy has been decided
upon. An effective marketing mix can mean the difference between a flash in the pan product or one that is
bound to become a well-loved classic.
3. Theoretical aspects of marketing mix
Marketing has evolved beyond traditional economic analysis and is now applied in resolving problems beyond
the boundaries of the firm and in attaining societal goals (Lazer 1969). As the marketing function recognized
its interface with society, the fields of business ethics and management were independently developing
stakeholder theory (Parmar
et al.
2010; Freeman 1984). Marketing sometimes is defined as marketing mix.
Marketing mix is the set of interrelated actions and solutions that meet customers' needs and achieve business
goals. Marketing mix consist 4 P: product, price, place, promotion. Product understood as the actions and
decisions touching upon meeting the needs of the product development and production, its formatting,
packaging, and brand name, warranty, etc.. Element "price" includes all activities related to the product pricing,
regulation, and other concessions, price application forms. Element "place" - includes all activities related to
the selection of channels, and the transfer of goods into a user-friendly place. Element “promotion” covering
the actions and decisions aimed at informing customers about products and persuade them to buy the goods.
Satit, Tat, Rasli, Chin, Sukati (2012) stated that here is sufficient evidence that the 4Ps have a major impact on
the decision making process in today’s competitive market. The concept of 4Ps is an input component of the
customer decision-making model. This model operates on the premise that external influences serve as a
valuable source of information about particular products, thus influencing customers’ product-related values,
attitudes and behaviors.
According Al-Debi, Mustafa (2014) marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large. It is important for customers to know Nivea value. Riaz, Tanveer (2012) argue that marketing
mix and brand building process are highly interlinked. All stages of brand building process are dependent on
marketing mix, which is product, price, promotion and place. To create brands, firms need to design the
marketing mix in such a way so that it creates the desired image and position in customers’ minds and generate
positive response which then could be converted into a strong long lasting relationship.
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As stated Naik, Raman, Wine (2005) brand managers need to account for interactions between marketing
activities and interactions among competing brands. By recognizing interaction effects between activities,
managers can consider interactivity trade-offs in planning the marketing-mix strategies. Kotler (2011) stated,
that “‘marketing will have to reinvent its practices to be environmentally responsible”. At present, marketing
managers’ decision -making is typically framed around the traditional concept of the marketing mix, which
addresses the needs of individual consumers, but provides little guidance on operating more sustainably, for
the benefit of society at large.
In 2004, the American Marketing Association (AMA) adopted the following as its official definition of
marketing (Marketing News, 2004):“Marketing is an organizational function and a set of processes for
creating, communicating and delivering value to customers and for managing customer relationships in ways
that benefit the organization and its stakeholders.” In 2007, the AMA adopted the following as its new official
definition of marketing (Marketing News 2008): “Marketing is the activity, set of institutions, and processes
for creating, communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large.
Alipour, Darabi (2011) noticed, that the marketing strategy means the regulating and applying the marketing
mix. Tools and tactics in marketing are the marketing mix. The marketing mix, mixed marketing,cmarketing
tools and marketing tactics are all the words which are used for translating the marketing mix. Mittal, A. (2014)
stated, that the marketing mix concept also has two important Roles. First, it is an important tool used to enable
one to see the marketing manager’s job is, in a large part, a matter of trading off the benefits of one’s
competitive strengths in the marketing mix against the benefits of others. The second role of he marketing mix
is that it helps to reveal another dimension of the marketing manager’s job. Doyle (2000) claims that the
marketing mix approach leads to unprofitable decisions because it is not grounded in financial objectives such
as increasing shareholder value. According to Doyle it has never been clear what criteria to use in determining
an optimum marketing mix. According Owomoyela, Olasunkanmi, Oyeniyi (2013) marketing mix is a business
tool that used by the management of organizations which enable them to remain in global competitive
environment. Marketing mix involve the four major areas of decision making (4 P) in the marketing process
that are blended and mixed to obtain the results desired by the organization to satisfy the needs and wants of
customers. Pour, Nazari, Emami (2013) stated, that marketing mix of traditional management models over -
comes dynamic market, where the beggar works, alongside other methods of Anderson and the theoretical
parameters of a system developed by the University of Copenhagen in Europe. Methods such as vision of a
new product, functional vision are faced with such geographical perspective. As Grönroos (2006) state
„marketing is a process , which the updated definition acknowledges, although it seems to include only
processes internal to the firm, and hence marketing should be defined as a process and not merely as a structure,
in other words not pre-dominantly relying upon a list of decision-making variables. This means that the process
nature of marketing should be the backbone of a marketing definition and structural aspects should only
provide support to the facilitation of that process. In particular, three elements of the updated definition are
discussed: (1) the customer value concept; (2) marketing as managing customer relationships; and (3)
marketing as an organizational function. In addition, (4) an intermediate stage between what is done and what
should be achieved covering the how aspect of marketing is discussed.
Yasanallah,
Vahid,
(2012)
stated
“marketing
mix
was
dominated
the
market
since 1940. In 1964, McCarty developed this idea and revised them as principles recognized as 4Ps today.
Marketing mix includes four elements namely product, price, promotion and place”. Akroush (2011) stated
that literature has revealed that the 4Ps of the marketing mix have come under criticism by many marketing
scholars
from
different
perspectives
e.g.,
services
marketing
and
relationship
marketing scholars. For services businesses, the traditional marketing mix framework should be
expanded to include the other 3Ps (people, process and physical evidence) as strategic elements, which affect
companies’ performance. Marketing involves a number of activities. To begin with, an organization may
decide which of its target group of customers to be served. Once the target group is decided, the product is to
be placed in the market by providing the appropriate product, price, place and promotion. These are to be
combined or mixed in an appropriate proportion so as to achieve the marketing goal. Such mix of product,
price, distribution and promotional efforts is known as marketing mix‘(Mei 2011). Bamigbola, A.A. (2013)
noticed, that marketing strategy is a well-structured plan that highlights the organization’s goals and quest and
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the specific process of achieving those set of goals. Marketing strategy is important element which help
company to achieve objectives.
Singh (2012) noticed, that the marketing mix is a set of controllable variables that the company can use to
influence the buyers responses.Thus marketing manager decides the level of marketing expenditure in order
to achieve marketing objectives of the firm and after finalizing the market budget it is decided that how to
divide total marketing budget among various tools in the marketing mix. Marketing decisions are categories
provided below in the Table 1.
Table 1
. Elements of 4 P’s (Singh 2012)
Product
Price
Promotion
Place
Design
Technology
Usefulness
Value
Convenience
Quality
Packaging
Branding
Warranties
Retail
Wholesale
Internet
Direct sales
Peer to peer
Multi
channel
Strategies
Skimming
Penetration
Psychological
Cost -plus
Loss leader
Special offers
Endorsements
Advertising
User trials
Direct mailing
Leaflets/posters
Free gifts
Competitions
Joint ventures
These marketing mix elements helps companies better understand their customers and market, to satisfy
customer needs. Lee Goi (2009) stated that marketing mix is not a scientific theory, but merely a conceptual
framework that identifies thee principal decision making managers make in configuring their offerings to suit
consumers’ needs. The main reasons the marketing mix is a powerful concept are It makes marketing seem
easy to handle, allows the separation of marketing from other activities of the firm and the delegation of
marketing tasks to specialists; and - The components of the marketing mix can change a firm’s competitive
position (Grönroos 1994). Palade (2011) argues that ingredients for a good marketing are the 4P’s: product,
price, promotion and placement. An effective marketing program combines harmoniously all elements of the
marketing mix. Marketing mix is the main instrument of the company for obtaining strong positioning on the
concerned markets.
4. Nivea background
4.1. History of Nivea
Nivea is a global skin and body care brand, owned by the German company Beiersdorf. In 1882 Pharmacist
Carl Paul Beiersdorf establishes the company on March 28. The company began in 1911 when Beiersdorf
developed a water in oil as a skincream with Eucerit, the first stable emulsion of its kind. The company’s
owner, Oscar Troplowitz named it Nivea, from the latin word niveus/nivea/niveum (meaning snow-white).
Under Oskar Troplowitz ownership, the company developed several of its own products, including Nivea
leukoplast, labello and other. The company Nivea originated from Poland and was bought by Germany
investors. During the 1930s, Nivea (Beiersdorf) began producting products such as tanning oils, shaving
creams, shampoo and facial toners. In 1911 Nivea cream was born. Soon after its discovery Nivea cream was
found in tin yellow box. Imaginative decorative green edge held popular trend in the art of that time. In 1959
logo Nivea cream with characteristics words “cream“ first appeared on the Nivea box. This logo known
for completely blue box. A successful logo is retained in an unchanged form until today. Their slogan in 1928
was “skin care“ and in 1931 “ for the house and sports“, but they were no longer necessary since the Nivea
gained status and internationally renowned classical brand. In 1980 Nivea expanded European market with
cosmetics for men, with men balm that has used after shaving, and was not harmful to the skin but also relax.
In 1998 Nivea innovation presented with areas of cosmetics: anti-wrinkle ingredient Q 10, and daily care
cream. Nivea visage anti-wrinkle Q 10 quickly became a bestselling anti-wrinkle product in the world. (Table
2).
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Table 2.
Beiersdorf development
1882
Pharmacist Paul C. Beiersdorf establishes the Company.
1890
Pharmacist and businessman Dr. Oscar Troplowitz purchases the Hamburg-based
Company from its founder, Paul C. Beiersdorf. He modernizes the production processes,
makes first international contacts, and significantly enlarges the Company.
1900
Patent application for Eucerit, (lit. "beautiful wax"), an emulsifying agent. Made from
lanolin, found in sheep’s wool, Eucerit is the basis for Eucerin and, later on, for NIVEA
Creme.
1911
NIVEA is born. Working closely together with chemist Dr. Isaac Lifschütz and
dermatologist Prof. Paul Gerson Unna, Dr. Oscar Troplowitz develops the first stable skin
cream based on a water-in-oil emulsion, using the emulsifying agent Eucerit.
1920
NIVEA takes its first steps: NIVEA Creme's first commercial film is shown in German
cinemas.
1932
Beiersdorf employs more than 1,400 staff on its 50th anniversary.
1943
The air raids on Hamburg cause heavy damage to both production plants and administrative
buildings. At the end of the Second World War, most of the Hamburg production plants
and administrative buildings have been destroyed. During the war, most Beiersdorf
affiliates in countries at war with Germany are expropriated. Beiersdorf also loses its
NIVEA trademarks here. Soon after the war, Beiersdorf begins to buy back the trademarks.
1950
PH5 Eucerin 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. It is the basis for the Eucerin consumer brand.
1963
NIVEA milk – liquid NIVEA Creme in the form of an oil-in-water emulsion – is introduced
for all-over body care. A large number of affiliates and licensees expand Beiersdorf's
international business in the course of the 1960s.
1972
Main entrance to the Beiersdorf headquarter in Hamburg. Beiersdorf employs more than
10,000 people worldwide.
1982
Launch campaign NIVEA Visage, Belgium.
Launch of NIVEA Gesicht (later NIVEA
Visage). Start of the steady expansion of NIVEA as a brand for skin and beauty care
through a large number of subbrands with an international focus.
1991
La Prairie advertisement
.
Acquisition of the La Prairie brand, which originated in the
famous "La Prairie" clinic in Montreux, Switzerland.
2001
The new strategy allows tesa to become an independent affiliate, enabling it to react more
flexibly to consumers and industrial customers.
2002
Florena Creme.
Florena, based in Waldheim in Saxony, becomes a wholly-owned
Beiersdorf affiliate. The two companies originally cooperated under a "licensed
production" agreement before the fall of the Berlin Wall in 1989, and intensified their ties
following the reunification of Germany.
2003
Tchibo becomes Beiersdorf's majority shareholder.
In October a long struggle for the
Allianz stake in Beiersdorf ends happily for the Company. Tchibo Holding AG increases
its shareholding from 30.3% to an initial 49.9%, becoming Beiersdorf’s largest
shareholder. This prevents Beiersdorf AG from being split up. In order to ensure that
Beiersdorf remains in Hamburg, the city also temporarily acquires a 10% stake. A new
functional organization focusing on the areas of brands, supply chain management,
finance, and human resources replaces the previous divisional organization.
2004
The Beiersdorf Research Center in Hamburg. The new Skin Research Center opens in
Hamburg. With more than 450 scientists, this is one of the largest and most advanced
research centers in Germany, and one of the most important in the world.
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2006
Beiersdorf CEO Thomas B. Quaas and Hamburg's mayor Ole von Beust.
The world's first
"NIVEA Haus" is opened on the Jungfernstieg street in the heart of Hamburg. Beiersdorf's
sales exceed €5 billion for the first time.
2007
Slek advertisement, China. In the year of the Company´s 125th anniversary, Beiersdorf
acquires an 85% stake in C-BONS Hair Care, one of the leading companies in the Chinese
hair care market with a well-developed sales network in China.
2008
Beiersdorf joins the DAX!In December 2008, Beiersdorf is included in the leading German
equity index, the DAX, which comprises the 30 leading listed companies in Germany.
2009
Beiersdorf opens the NIVEA Haus on Berlin’s famous “Unter den Linden” boulevard. This
is the world’s third NIVEA Haus following the ones opened in Hamburg and Dubai in
2006 and 2008 respectively. In line with the needs of its metropolitan customers, the
NIVEA Haus in Berlin, on a space of over 500 sqm, provides brief cosmetic applications
for short-term relaxation and recovery.
2010
Beiersdorf introduces the new Eucerin AQUAporin ACTIVE moisturizer, developed using
a Nobel Prize-inspired technology. As of fall the aquaporin technology is step by step being
integrated in various NIVEA products.
2011
Beiersdorf developed after intensive research, along with textile experts from the
prestigious International Textile Institute Hohenstein, a deodorant that reduces stains:
NIVEA Invisible for Black & White, the most successful deodorant launch in the history
of Beiersdorf.
2011
Happy Birthday NIVEA! With celebrations around the world and a special campaign the
NIVEA Creme celebrates its 100th anniversary.
2012
Stefan F. Heidenreich is taking over from Thomas-B. Quaas as CEO of Beiersdorf AG.
Mr. Heidenreich has been a member of the Executive Board since January 2012.
2013
50 years after launch of the very first bodylotion in 1963 NIVEA transforms body care
again with the launch of its In-shower Skin Conditioner range – a hassle-free way to
moisturize while in the shower.
4. 2. Nivea SWOT analysis
Nivea first of all assessed the market. It understood what its male customers wanted. A study of the
environment confirmed men were willing to buy a product that would calm and soothe their skin irritated by
shaving. An SWOT analysis looked at the internal and external strengths of the business in fulfilling the need,
and included an assessment of the brand’s position and the state of the market. The company already had a
strong presence in women’s skincare products, and could easily use the same production, distribution, and
promotional set-up for its men’s products. The team used research data to forecast market trends over the next
three-to-five years, which helped them set specific targets for sales, market growth, and improving brand
image. The analysis also considered the state of competitor products in the market. The company used celebrity
driven radio, television, and press advertising, adopted experiential activities that engaged consumers through
two-way communications, and provided free samples. Such initiatives brought brand personalities to life and
added value to the target audience. The focus on product development combined with an emphasis on needs
analysis helped Nivea retain in position a market leader in the male facial skincare market, especially in UK
(Table 3).
Table 3.
Nivea SWOT analysis
Nivea
Parent Company
Beiersdorf AG
Category
Personal care brands – Skin cream
Sector
FMCG
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Tagline/ Slogan
It helps protect your skin; 100 years of skin care for Life
USP
Makes dry skin smooth and irresistible to touch
STP
Segment
Personal skin care products
Target Group
Middle class all age groups for skin care
Positioning
Positioned in the platform of "Gentle Care" and " Wellness"
SWOT Analysis
Strength
1. Nivea globally is the brand that has its presence in around 20 product
categories in more than 50 countries.
2. Nivea has huge brand recall and equity.
3. Very strong distribution network
4. The packs ‘Blue and White’ color as its brand element.
5.Excellent advertising and brand visibility makes it a top-of-the-mind
brand
Weakness
1. Nivea cream is perceived as a winter cream because of its thickness and
oily consistency. This restricts the sale of Nivea skin cream to winters
mainly.
2. Intense competition in skincare segment
Opportunity
1. Well reputed and established global brand, every chance to grow in the
emerging economies as well
2. Nivea has an opportunity to increase market share
3. Entry in men’s segment by focused products
Threats
1.
Popularity
of
other
skin
care
brands
2. Fierce marketing from competitors while Nivea still lies on lazier front.
Competition
Competitors
1.Vaseline
2.Ponds skin care
3.Johnson and Johnson Petroleum jelly
4.3. Nivea marketing mix
In 1911 the German consumer goods company Beiersdorf brought the now very famous skin cream named
Nivea into the market. Nivea has now grown to be one of the biggest skin care brands in the world, selling
products in some 150 countries. The Nivea brand encompasses a wide range of body care products. Its
assortment includes baby care, bath care, body care, cosmetics, deodorants, face care, hair care, hair styling,
hand care, lip care, mature skin care, men′s care and sun care. Nivea has clearly been successful in creating
strong attributes which people associate with the Nivea product and especially with the blue tin and its white
capitals. Nivea has created the image of being genuine, environmentally friendly and offering good quality at
a reasonable price. Offering a wide range of products and serving all generations it suggests being an ideal
choice for the entire family. In order to analyse how Nivea has achieved this position in consumers′ minds,
this essay will be looking at the marketing mix and how Nivea has dealt with the four P′s.
Product.
Panyachokchai, K. (2013) stated, that today consumers focus more on trusted brands that provide
credibility and benevolence that deliver benefits to consumers in terms of the results of using. Moreover, a
brand needs to concern about a customer in terms of its reputation, personality, and also the focus on
180
satisfaction and personality traits of users of a customer to improve the brand strategy and reserve the long
term relationship with a customer through brand loyalty. Kotler (2005) defined product as anything that can
be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. The
Nivea product is generally a product of good quality. However different the range of Nivea products may be
they all embody gentle care for all generations (Table 4). To ensure this certain quality standard research and
development becomes an important issue. On their webpage it is indicated that over 150 dermatological and
cosmetic researchers, pharmacists and chemists are constantly working to improve established products and
come up with new ones. Especially with the product line Q10, which involves anti-skin aging and anti-cellulite
products, Nivea strives to proof its dermatological expertise. The first stage in building an effective mix is to
understand the market. Nivea uses market research to target key market segments which identifies groups of
people with the same characteristics such as age/gender/attitude/lifestyle. The knowledge and understanding
from the research helps in the development of new products. Nivea carries out its market research with
consumers in a number of different ways. These include: using focus groups to listen to consumers directly;
gathering data from consumers through a variety of different research techniques; product testing with
consumers in different markets.
Table 4
Nivea products
Description
Brand
NIVEA.
Our most important brand has enjoyed over 100 years of success and is today
one of the world’s largest skin care brands.
Eucerin.
Pharmacists, dermatologists, and consumers around the world trust in
Eucerin’s medical skin care competence.
La Prairie.
Luxurious, state-of-the-art anti-aging skin care based on over 35 years of
research expertise.
NIVEA MEN.
The modern and effective products of the NIVEA MEN brand are
leading in the international men’s skin care market.
Labello.
Labello is synonymous with lip care and at the same time the market leader
in numerous European countries.
Hansaplast.
Today a globally successful brand, Hansaplast revolutionized the plaster
and wound care market over 90 years ago.
Florena.
Products that stand for naturalness and uncomplicated skin care with select
and natural ingredients that are processed in an exceptionally gentle way.
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8x4.
8x4 deodorants for women and men have been combining individual fragrances
with long-lasting protection for more than 60 years
.
Price
. On their webpage Nivea claims that their products are of a quality level that some competitors offer for
ten times the price. Here we clearly see that Nivea goes for the strategy of positioning their products as being
of quality at affordable prices ("More for the same"). This is coherent with the idea of Nivea being the perfect
choice of the whole family. Caring mothers and fathers who want to provide their families with good quality
products can still afford doing so by buying Nivea skincare. This goes along with the fact that discounts on
Nivea products are often found (see Boot′s current offer of buying three Nivea deodorants for the price of two).
In terms of price Nivea products always appear competitive with brands, such as Dove, Johnson & Johnson or
Labortoire Garnier, which may be situated next to them in the shops. However, among these the brand takes
care that it does not appear to charge less so that the image of being a quality brand remains believable for
customers. Lots of factors affect the end price of a product, for example, the costs of production or the business
need to maximize profits or sales. A product's price also needs to provide value for money in the market and
attract consumers to buy. There are several pricing strategies that a business can use:
cost based pricing this can either simply cover costs or include an element of profit. It focuses on the
product and does not take account of consumers;
penetration price an initial low price to ensure that there is a high volume of purchases and market
share is quickly won. This strategy encourages consumers to develop a habit of buying;
price skimming an initial high price for a unique product encouraging those who want to be 'first to
buy' to pay a premium price. This strategy helps a business to gain maximum revenue before a
competitor” product reaches the market.
Place
. Nivea products are virtually found everywhere. They are located on the shelves of high-
status retailers, like Boots and Lloyd Pharmacy in line with EL′VITAL or Pantene. But they are also found in
supermarkets, such as Co-op, or discount pharmacies, such as Schlecker, next to the shop′s own cheap brand.
Through this distribution strategy Nivea appears as a brand that is easily available for all kinds of people and
of course all kinds of families who care for good quality, whether they buy at Boots or Schlecker. Place refers
to:
how the product arrives at the point of sale. This means a business must think about what distribution strategies
it will use where a product is sold. This includes retail outlets like supermarkets or high street shops. It also
includes other ways in which businesses make products directly available to their target market, for example,
through direct mail or the Internet. Nivea distributes through a range of outlets that are cost effective but that
also reach the highest number of consumers. Its distribution strategies also consider the environmental impact
of transport. It uses a central distribution point in the UK. Products arrive from European production plants
using contract vehicles for efficiency for onward delivery to retail stores.Beiersdorf does not sell direct to
smaller retailers as the volume of products sold would not be cost effective to deliver but it uses wholesalers
for these smaller accounts.It does not sell directly through its website as the costs of producing small orders
would be too high. However, the retailers, like Tesco, feature and sell the NIVEA products in their online
stores.
Promotion
. Kotler (2002) defines promotion as the activities a company performs in order to communicate to
its existing and potential customers. Multiple channels are used to communicate to different parties
(Distributors, customers) and different means could be used to do promotion. Nivea adverts are found in all
kinds of magazines and newspapers, on television on all channels at regular intervals. It is through these adverts
that the image is mainly conveyed. It is an image that suggests favoring family values, standing for health and
genuineness and communicating this "close to touch" human togetherness. Smiling faces of genuine looking
people of all generations, from babies over teens and young parents to 60 year-olds, help bring this message
across. Promotion is how the business tells customers that products are available and persuades them to buy.
Promotion is either above-the-line or below-the-line. Above-the-line promotion is directly paid for, for
example TV or newspaper advertising. Below-the-line is where the business uses other promotional methods
to get the product message across. Promotional activities include: Events or trade fairs help to launch a product
182
to a wide audience. Events may be business to consumer (B2C) whereas trade fairs are business to business
(B2B).
Direct mail can reach a large number of people but is not easy to target specific consumers cost-effectively.
Public relations (PR) includes the different ways a business can communicate with its stakeholders, through,
for example, newspaper press releases. Other PR activities include sponsorship of high profile events like
Formula 1 or the World Cup, as well as donations to or participation in charity events.Branding a strong and
consistent brand identity differentiates the product and helps consumers to understand and trust the product.
This aims to keep consumers buying the product long-term.Sales promotions, for example competitions or
sampling, encourage consumers to buy products in the short-term. Nivea chooses promotional strategies that
reflect the lifestyle of its audience and the range of media available. Nivea realises that a 'one way' message,
using TV or the press, is not as effective as talking directly to its target group of consumers. Therefore Nivea
does not plan to use any above-the-line promotion for Nivea visage young.
5. Research data analysis
The research was conducted in September in 2014. Objective of the study - to investigate the Nivea marketing
mix. The study was reconnaissance. 56 respondents participated in the survey, which 18 percent were men and
82 percent - women. 89 percent of respondents were 18 - 25 years age, 11 percent - 26 - 40 years age. As can
be seen from the study, the participants in the study were enough young people. 77 percent respondents earning
until 800 Litas, 18 percent - 801 - 1000 Litas, 4 percent - 1501-2000 Litas. 2 percent - 2001 Lt and and more.
84 percent respondents used Nivea products, while 16 percent respondents said that does not use Nivea
products. The survey showed that the vast majority of respondents use Nivea products. Respondents were
asked "How often do you buy Nivea products?”. 16 percent respondents said that they buy Nivea product once
a month, 37 percent - once every three months, 19 percent - once every six months, 28 percent - once a year.
The study shows that the majority of respondents buy Nivea products every three months (Table 5).
Table 5.
Respondents answer to question "How often do you buy Nivea products?” opinion distribution
How often do you buy Nivea products?
Percent
once a month
16
once every three months
37
once every six months
19
once a year
28
The respondents were asked the question "Where you buy Nivea products?" 86 percent respondents said that
they bought in supermarkets, 20 percent – in special stores, 4 percent indicated other. The results show that
the vast majority of respondent buy Nivea products in supermarkets. Respondents stated, that the Nivea
products are extensive and constantly updated. 50 percent stated yes, they are, 9 percent no, and 41 percent
respondents said that they had no opinion. Respondents were asked question "Which price category to assign
most of the Nivea products? 9 percent respondents argued that Nivea products are the low prices, 86 percent -
average prices, 5 percent - higher prices. It can be concluded that the vast majority of respondents said that
Nivea products depends on the average price category.
In response to the question whether the price of Nivea products is consistent quality, and it is attractive to
customers, 68 percent respondents said that they are, 7 percent – no and 25 percent respondents did not have
an opinion. Results showed that the vast majority of respondents said that Nivea products comply with the
quality and the price is attractive to the customer. Respondents answer to question "What are the most common
discount used Nivea?”. 54 percent respondents said that seasoning discount, 36 percent - festive discount, 29
percent do not use rates (Table 6).
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Table 6.
Respondents’ answer to question "What are the most common discount used Nivea?”
What are the most common discount used Nivea?
Frequency
Percent
Seasoning discount
30
54
Festive discount
20
36
Do not use discount
16
29
The respondents know about Nivea products from newspapers (18 percent), magazines (34 percent), internet
(41 percent), television (59 percent), other (21 percent.). The results show that most of the respondents were
aware of Nivea products from television and internet. The respondents were asked the question "Does Nivea
products advertising is attractive?". 52 percent respondents said that it is attractive, 5 percent argued that an
unattractive, 43 percent respondents replied that they do not know.
6. Conclusions
Nivea products include: physical attributes – how the product appeals to a consumer; utilities; brand, packaging
and labeling; design, color, size, shape, style, finish and beauty; price; services; company image; safety to
users – buyers are not interested in what the product contains, but what the product satisfies them with. Nivea
is known for the high standard of quality products that it produces. This makes it stand different among other
cosmetic brands. The milk lotion product that it had launched earlier in the market demonstrates an example
regarding Nivea and its constant improvement in quality. However, as people complained that the milk lotion
felt too sticky when applied to the body, Nivea changed the product by improving the quality and instead of
the milk lotion, it introduced a body lotion, which was non – sticky and was available in different types for all
skin types, which was not a feature of the milk lotion earlier. This proves the fact that they really work hard in
order to improve their quality of the product to gain customer satisfaction and brand loyalty. Along with color
and quality, Nivea‘s packaging is also very attractive as it comes in different shapes and sizes. Nivea’s prices
are reasonable compared to its competitors. Everybody can afford Nivea, as its products are not targeted to
any particular segment of the market.
Place means the areas where Nivea is distribute and spread out. It should be distributed so that it is within the
reach of normal customers also. Nivea products are available at all supermarkets, mostly at all grocery stores
and shopping malls too. Big and popular supermarkets have separate counter only for Nivea products with a
promoter standing beside the counter in order to promote the product. All variables are interlinked where the
main ingredient of promotion and advertising plays an important role in the success of Nivea sales other than
other elements such as quality, packaging, etc.
Promotion is an important element in an organizations marketing mix, which is, used to inform and persuade
the market regarding the organization’s products and services. The main goal of promotion is to change the
pattern of demand for the product in order to have the same distance between the products and its customers.
Whereas, advertising consists of the activities involved in presenting to a group, oral / visual, openly sponsor
identified message regarding a product – service – idea. An advertisement is disseminated through one or more
media and is paid for by the identified sponsor. Nivea promotes its products through different kinds of media.
This includes television, newspapers, billboards, magazines, brochures and a number of stalls at popular malls
and supermarkets.
Nivea gives huge quantities of free samples of its products. Nivea’s promotion campaign
includes attractive
packages with mind blowing offers.
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Margarita IŠORAITĖ.
Doctor of social science in Vilnius Gediminas technical university, name of associated professor was given
in Mykolas Romeris University in Lithuania. Associated professor in Vilnius kolegija/ University Applied Sciences. Research interests:
human resource management, strategic marketing, marketing management, advertisement.
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