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Explain How and Why Groups of Customers Are Targeted for Selected Products

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The Nivea Company manufactures products with fall into the skin and personal care section with items such as lotions, deodorants, creams, soaps and shaving material. This company was founded in 2007 and is based in Mumbai.

Nivea is currently owned by a German company named Beiersdorf which was founded in 1882 by pharmacist Carl Paul Beiersdorf. In 1900 the new owner developed a water-in-oil emulsion which was then used as a skin cream, this emulsion was the first stable one of its time and proved to be the basis for Nivea.

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Nivea have a wide range of products in several different areas such as:

  • Bath care.
  • Body care.
  • Deodorants.
  • Face care.
  • Lip care.
  • Men’s care.
  • Nivea cream.
  • Nivea soft.
  • Sun care.

Nivea provide products which are created to and appeal to people of different ages and genders. Nivea have created sun care for parents to buy to protect their children from sunburn, they also have lip, face and body care which they have attempted to direct towards both men and women.

They also have a section for men’s care which provides things such as shaving cream, facial wash and men’s shower gel.

The Nivea company’s target market are adults of both genders but by increasing the variety of their products they have increased the amount of situations where people of the general public would want to have one of
their products. They have items used for bath, body, lip, face, hygiene and protection from the sun which contain areas that both men and women may have concerns or issues. Although Nivea do not have a particular target audience they do have branches of their company which do target people of specific genders and ages; such as ‘NIVEA VISAGE’ which carries the strength and support of the ‘NIVEA’ brand and image to the target market of girls aged 13-19.

BIC is a company which is based in Clichy, France. It was created by Baron Marcel Bich in 1945 and has become infamous and well known for its creation of disposable consumer products such as ballpoint pens, shaving materials, magnets and lighters.

BIC sell a variety of disposable items including:

  • pens.
  • pencils.
  • highlighters.
  • lighters.
  • lighter cases.
  • shavers.

A majority of these items are directed towards men but BIC have incorporated items such as women’s shavers as an attempt to appeal to females and increase their target audience.

BIC have recently attempted to appeal to the females of the general public by incorporating a new selection of ‘pens for her’; unfortunately, this attempt at increasing their target audience failed with a huge backlash from their targeted group.

The target audience for BIC is and has always been the average/low income families which require reliable products at a price which they are able to afford. The majority of BIC’s products are in the lower range of retail pricing. It could also be assumed that another part of BIC’s target audience are males as a large majority of their products are directed towards males.

Market segmentation

Market segmentation is a marketing term which refers to the dividing of a large group of people depending on particular characteristics or information about them such us needs, wants, gender, age, interests, and hobbies. This grouping of people with similar interests is done by businesses to determine what new product or method they will release to certain target markets in the public. The businesses will also need to ensure that these people react positively to this particular market action.

Nivea market segmentation

Nivea began to research the attitudes that the general public has towards sun lotion and segmented them into 5 groups which share similar opinions on sun care. This research was conducted using a nationally respresentative sample which were required to fill out questionnaires, These groups are as follows:

  • Concerned consumers: These are the people that are concious of the harmful effects of the suns rays. This group of people are likely to purchase sun lotions which contain high sun protection factors.
  • Sun avoiders: This group of people generally avoid sunbathing and the use of sun protection as they feel as though it is a chore. People from this segment are unlikely to purchase sun lotion; although through extensive research, they may consider purchasing a product which is easy to apply such as sprays.
  • Careful sun lovers: These people love the sunshine and prefer to use a brand which is trustworthy and has suitable protection factors. These sun lovers have a good knowledge of sun care products and will use this to purchase products which are perfectly suited for their skin.
  • Careless tanners: This group of people enjoy sunbathing and tanning but do not protect against the sun’s harmful rays. The main priority of this group is tanning whereas protection is not a concern. Since this group of people do not have any concerns about the long-term damage that their skin will face they will most likely purchase a low SPF product, if any at all.
  • Naive beauty concious: These people like to have a good tan and they also recognise that protction from the sun is important but they do not acknowledge the use of ‘Sun Protection Factors’ (SPF). These consumers may be interested in the main features of a sun protection product and will be more likely to purchase an added value offering such as a mousse.

With these results, NIVEA have created a new brand strategy to appeal to people in the segments which aren’t likely to be purchase a NIVEA product or one which will be useful to them personally.

BIC marget segmentation

BIC have their own approach towards segmentation of consumers and looking at their behaviour or wants when it comes to stationery products. BIC have conducted research and concluded that there are three distinct groups when it comes to the purchase of a writing instrument.

  • Best Value for money: People which fall into this category are generally offices and households which frequently require writing instruments and have one in virtually every room. Since these pens are generally allowed to be used by anyone there will not be a great issue if one is misplaced. Households which purchase these instruments tend to seek pens which are lower in price but regularly make new purchases when it is required.
  • Seeking specific benefits: This segment generally concerns customers which seek out a more personalised item which they would concider to be their own pen. This pen would generally be kept in a private place which belongs to the owner, this person also may be reluctant to borrow this item to anyone else. Research stated that the key features that are looked for by the consumers in a pen is a comfortable hold and the ability to produce smooth handwriting which reflects the individual.
  • Impulse buy: These kind of purchases are unplanned and will generally be achieved by the use of attractive and innovative designs. This generally attracts people in the segment as they are buying for pleasure rather than specifically requiring the item.

After the results of this research BIC created a new product portfolio to adhere to the apparent wants and needs of the consumers. BIC aim to:

  • Provide reliable, high value for money products which are aimed towards regular household purchasers.
  • Provide premium, high quality products for the consumer which wants or needs ‘something special’.
  • Provide attractive and inciteful products which sometimes have a short life cycle.

Cite this Explain How and Why Groups of Customers Are Targeted for Selected Products

Explain How and Why Groups of Customers Are Targeted for Selected Products. (2016, Oct 27). Retrieved from https://graduateway.com/explain-how-and-why-groups-of-customers-are-targeted-for-selected-products/

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