Product: NIVEA carries out its
- 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.
Competitor products tend to be problem-focused and offer medicated solutions. This gives NIVEA a competitive advantage. NIVEA VISAGE Young provides a unique bridge between the teenage market and the adult market.
The company improved the product to make it more effective and more consumer-friendly. Beiersdorf tested the improved products on a sample group from its target audience before finalizing the range for re-launch. This testing resulted in a number of changes to existing products. Improvements included:
- Changing the formula of some products. For example, it removed alcohol from one product and used natural sea salts and minerals in others.
- Introducing two completely new products.
- A new modern pack design with a flower pattern and softer colors to appeal to younger women.
- Changing product descriptions and introducing larger pack sizes.
Price:
There are several pricing strategies that a business can use:
- Cost-based pricing
- Penetration price
- Price skimming
On re-launch, the price for NIVEA VISAGE Young was slightly higher than previously. This reflected its new formulations, packaging, and extended product range. The pricing strategy for NIVEA is not the same as that of the retailers. It sells products to retailers at one price. However, retailers have the freedom to use other strategies for sales promotion. These take account of the competitive nature of the high street. They may use:
- loss leader: the retailer sells for less than it cost to attract a large volume of sales, for example by supermarkets
- discounting – alongside other special offers, such as ‘Buy one, get one free’ (BOGOF) or ‘two for one’. 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. 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. NIVEA VISAGE Young aims to use as many relevant distribution channels as possible to ensure the widest reach of its products to its target market. The main channels for the product are retail outlets where consumers expect to find skincare ranges. Around 65% of NIVEA VISAGE.
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.
Promotion
Below-the-line is where the business uses other promotional methods to get the product message across:
- Events or trade fairs help to launch a product to a wide audience.
- Direct mail can reach a large number of people.
- Public relations (PR) includes the different ways a business can communicate with its stakeholders, though.
Branding
Sales promotions
NIVEA chooses promotional strategies that reflect the lifestyle of its audience and the range of media available. It realizes that a ‘one way’ message, using TV or the press, is not as effective as talking directly to its target group of consumers.
The promotion of NIVEA VISAGE Young is consumer-led. Using various below-the-line routes, NIVEA identifies ways of talking to teenagers (and their mums) directly.
- A key part of the strategy is the use of product samples. These allow customers to touch, feel, smell and try the products.
- NIVEA VISAGE Young launched an interactive online magazine called FYI (Fun, Young & Independent) to raise awareness of the brand.
- In connection with FYI, NIVEA VISAGE Young has recognized the power of social network sites for this young audience and also has pages on MySpace, Facebook, and Bebo.
Conclusion
NIVEA VISAGE Young is a skincare range in the UK market designed to enhance the skin and beauty of the teenage consumer rather than being medicated to treat skin problems. As such, it has created a clear position in the market. This shows that NIVEA understands its consumers and has produced this differentiated product range in order to meet their needs.
To bring the range to market, the business has put together a marketing mix. This mix balances the four elements of product, price, place and promotion. The mix uses traditional methods of place, such as distribution through the high street, alongside more modern methods of promotion, such as through social networking sites. It makes sure that the message of NIVEA VISAGE Young reaches the right people in the right way.
Answer to question:
- Analyze the marketing mix for NIVEA VISAGE Young. What are its strongest points? Explain why you think this is so.
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