Case study Nivea Essay

NIVEA FOR custody valued to profit its divvy up of the UK priapic skin c be grocery place. This case study examines how NIVEA re-launched the NIVEA FOR work force hunt down in 2008. This was part of its overall protrude to develop the range in the UK. It shows how the telephoner developed a merchandising throw for the relaunch and organised its selling activities to contact its receives and objectives. The study focuses on how a company can resolve to changes in consumer expectations, external influences and blood line aims to achieve those objectives.What is a merchandise mean?A profession inescapably to preen its overall direction for the company by 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 racy part of the overall business plan is the trade plan. The relationship in the midst of the two plans is shown in the diagram.10532184_NIVEANIVEA STUDY V62 3/6/091525Page 2Marketing involves make outing, anticipating and satisfying customer unavoidably. A merchandise plan events the stated aims and objectives and then puts in place a series of commercialiseing activities to ensure those objectives are achieved. Marketing plans can concealing any date period, but normally set out activities for the side by side(p) one to five years at either a business or imperfection level. www.thetimes100.co.uk glossaryBrand A name, symbol or design employ to identify a specific carrefour and to nock it from its competitors. SWOT synopsis Identification and military rating of the strengths and weaknesses inside a firmly and the opportunities and threats in its external environment. Return on investment The return on the funds invested in the business. Profits money that is earned in flip or business, after paying the costs of producing and selling goods and services.The main sections of the plan cover SWOT and warlike analysis to asses s where the business or spot is currently and what competitors are doing objectives what the plan needs to achieve the selling scheme how the objectives allow be achieved gross sales forecast by how more sales are likely to increment bud bewilder how much the tradeing 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 merchandising plan. The structure of the plan and the amount of detail will depend on the size of the daub, the timescale involved and how the market and economy is behaving. However, NIVEAs marketing plan for the relaunch of NIVEA FOR work force follows closely the outline described here.Assessing the marketThe first graduation in devising a marketing plan is to conduct an evaluation of the business, its defacements and products. This should include an assessment of the brands position and the state of the market. NIVEA FOR workforce needs to know what its mal e customers want and what competitor products exist. As wholesome as targeting the male consumer, women are in like manner an important target market for NIVEA FOR workforce. This is because women often buy male grooming products for their partners as well as helping them choose which products to buy. NIVEA FOR manpower used a SWOT analysis to help it assess the market. This takes a detailed look at the knowledgeable strengths and weaknesses of the business, as well as external opportunities and threats in the marketplace.NIVEA FOR MEN set several strengths NIVEA FOR MEN was the UK marketleading male seventh cranial nerve skin care 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 to a fault 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 nervus facialis brand,NIVEA FOR MEN needed also to beaware of any weaknesses Was the product range still relevant forthe target audience? Did it maintain the right-hand(a) 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 look at 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 to severalize its products in order toensure that, in an increasinglycompetitive market, its marketing activitygave positive return on investme ntin basis 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 must 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 bundle through qualitative growth. At the same time we want to further improve our sound earnings public presentation so that we can full our consumers wishes and needs with designs today and in the future. This will work 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, true to life(predicate) ( presumptuousness 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 years. This helped them set specific targets 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 just 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 just 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 quality products that are reliable, easy and good value for money. Th e 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 oversight team.Two strategiesThis focus on product development combined with an fury on consumer needs is a key differentiator for NIVEA FOR MEN. It is a major(ip) reason why in the UK the brand is still the market attraction in the male facial skincare ma rket*.Another base of the UK marketing strategy for the re-launch was promotion. NIVEA sought to build on and develop the glide path it had used in the past. In the 1980s, advertizement in mens style and fashion magazines along with product sampling was a major promotional tool. In the 1990s, the company used radio, tv set 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 pr omotionsIndirect expenditure on promotion,such as through free gifts, PR orcompetitions.Brand affinity How wellcustomers identify with the brand.Evaluation A systematic processthat seeks to determine the worth,value or meaning of something.Key performance indicatorsFinancial and non-financialmeasures to monitor performance across a range of activities within afunction, department or role.1525Page 4It is important to get the promotional end right. NIVEA FOR MEN promoted the current launches of its products through a mixture of above-the-line and below-the-line promotion. The use of diversion 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 construct stronger brand affinity for NIVEA FOR MEN among men. It also allowed the brand to build and advance a consistent dialogue with men, which helps to drive sales.Above-the-line promotion included televisio n 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 invigorated 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 dedicated NIVEA FOR MEN website to support its products and provide culture 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 grammatical case and find the product that best suits their needs.Conclusion evaluating the planThe Times paper Limited and MBA Publishing Ltd 2009. Whil st every effort has been made to ensure trueness of information, neither the publisher nor the client can be held responsible for errors of slackness or commission.The marketing plan is a cycle that begins and ends with evaluation. The final act in the marketing plan is to measure the outcomes of the marketing activities against the original objectives and targets. ceaseless evaluation helps the marketing team to focus on modifying or introducing virgin 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 accelerate 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 20 08 were nearly 30 million and in line with expectations. brand image ratings NIVEA FOR MEN was the Best Skincare Range winner in the FHM 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. set forth 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. victimization 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.