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Environmental Analysis of Nivea: Case Study

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    This report aims to examine the environmental analysis of men’s grooming products in general and analysing their trends. The report will also focus on Nivea for men’s target customer profile and will analyse its marketing strategies. However, some of the new, emerging sectors, including men’s skincare and men’s haircare have gathered pace. Men are definitely showing a greater interest in looking after their personal appearance, although for many this means following a simple grooming regime (Mintel March 2006) SOCIAL CULTURAL FACTORS A sudden change has been noted in the way men have taken an interest indulging with personal care products.

    It has now become socially acceptable that men can moisturise just like women do although some men still think that grooming is for women. Social acceptance has given men the confidence to visit the spa – it is as if men have been given the permission to enjoy a treatment without being ridiculed. (VLM magazine. com 2004) A growing influence of feminine values in the work place, communication, management has resulted in the revolution of a metro sexual male. Men are taking care of the way they look than in the past. That is also driven by career pressure and society putting more pressure in the way people look.

    There have been some trends of men spending more on grooming products. According to market researchers Mintel group, metrosexuals are a world wide $8 billion-a-year industry, with the US accounting for more than $2. 4 billion. Department stores alone sold $86 million worth of male grooming products in the first nine months of 2003. (www. fool. com) Recent trends have affected that use of male care products. Reports from national statistics show that heavy drinking is common amongst young men (31%) and (22%) for the girls under that age of 16 to 24.

    Since heavy drinking has become more common men are likely to go to places like pubs and would want to impress by looking good. In echoes the fact that there has been a rise in exploitation of events, with the example to University student Unions offering different events for students that encourage heavy drinking. Most people that go to such events are considered by the society as cool people, cool people always want to look presentable. Figures from national statitics show that life expectancy has reached its highest. Men aged 65 could expect to live further 16. years and women a further 19. 4 years if mortality rates remained as they were in 2003-05. (www. nationalstastitics. gov. uk) As people are expected to live longer, they are exposed to the new living lifestyle and will definitely want to look good by taking care of themselves. Figure 1 shows the life expectancy rate. Figure 1 Source: National Statistics TECHNOLOGY Most companies have recently started to invest more on researching on its male products with an aim of focusing the male customer needs. Research is done finding out what men feel about purchasing grooming products.

    Technology has become more sophisticated with the introduction of targeting customers using online database and loyalty cards. Some companies have taken a step ahead by investing in different machines that can be used to test different types of skins. Nivea for men has the configurator, where men can discover which product best suit their skin and what routine they can follow. UK is now experiencing better logistics goods are easy to export faster and quicker. The operation is driven by demand consumers are becoming more sophisticated and have specific needs. This makes it easier companies that manufacture male products.

    POLITICAL The politics surrounding the ingredients in some male grooming products can affect the whole environment in general. Suncreams, moisturisers and shampoos are being blamed for an alarming epidemic of skin complaints that include rashes, swelling and itching. European commission scientists believe that the chemical called methydibromo, glutaronitrile found in products from Boots, Nivea, Pantene, is responsible for the raise in reports of allergic skin reactions. The chemical is said to affect Eczema suffers and even those without the condition. ECONOMIC According to national statistics, retail sales grew by 0. in quarterly 3. It shows that consumers are spending quite an amount in retail shop, this also suggests that consumers have a high disposable income. The results showed that in 2004 London had a largest disposable income. Inner London west with areas such as Kensington had ? 22. 000 per head. If people have a higher disposable income it means that they can afford to buy grooming products which includes men. NIVEA’S TARGET CUSTOMER PROFILE GEOGRAPHIC Mostly in the United Kingdom and EU countries DEMOGRAPHIC 16 to 65 year olds Nivea’s initial targeting was from 16to 35 as this group tend to use a wide range of grooming products.

    Grooming habits start young, so it is in the interest of men’s toiletries manufacturers to keep teenage boys’ interest as they become more mature and their brand preferences more sophisticated (Mintel 2006). There has been a shift in the UK population as a fewer babies are being born, with the biggest growth occurring in the 55-64. Life cycle: Young and the older men. There is growth in life expectancy rate. Gender: male and gay men Nivea for men has been made especially for men. This product also targets gay men. Income: Nivea for men products are more affordable costing from ? 2. 59 to ? 7. 80.

    The men targeted obliviously have an average income because the products are cheap. PSYCHOGRAPHIC: Social : The customers are of middle class Lifestyle: Most of these men like to impress the opposite sex so they have to make sure they look good. Metro sexual male living in or within easy reach of a metropolis – because that’s where all the best shops, clubs, gyms and the hairdressers. Urban young people that more outgoing BEHAVIORAL: Occasions: These products are mostly used by men that go to social gatherings for example parties. Office working environment, most companies require its employees to dress and look good.

    Benefits: Skin looks healthy, smooth and protected. Other benefits are safety, with high risk of skin cancer men are prone to use sun screen lotions and other face products that can protect their skin. Usage rate: Heavy moisturiser users, Nivea has the highest market share of moisturisers of about 87%( business source premier) Usage rate for male grooming products is still low. Loyalty status: The loyalty status of men buying men products is still low, the only men who are loyal to the product are the ones who have used other brands of Nivea and may want to try other extended brands. ANALYSIS OF THE MARKETING STRATEGIES

    Nivea managed to reinforce the brand’s heritage on the men’s products. Nivea is known as an honest brand which has managed to maintain the original colours of white and blue. All of Nivea’s advertisements depicts images are related to ‘skin care’ and ‘unpretentious human life’. The company decided not to use celebrity endorsements as part of its marketing strategy for its men’s products. Its competitors such as Gillett uses celebrities like David Beckham to market their men’s products, but Nivea did not respond to that kind of strategy. The company’s current marketing strategies have changed compering to its original strategies.

    When Beiersdorf first launched nivea for men in the US, it used TV ads and used humour to disarm viewers. Current Nivea TV ads don’t use the same humour tact, but do make one thing clear: “Use this product and you’ll have better luck with the girls. ” An ad for the new oil control line features a young male and talks about removing the shine from his skin so “she’ll pay attention” (business source premier, 2006). Its target customer profile is young men who are out going, therefore, by using such TV ads Nivea is showing a great link with its target customer.

    In 2006, the company announced ‘passion for success business strategy 2010’. It announced that its current market and competitive challenge include increasingly critical consumers, aggressive competition and private labels. (Business source premier 2006). The outlook of the men’s brands future marketing strategies shows that the brand has a great future. Nonetheless, other analysts have a different view,” there are no revolutions, only evolutions. It is also a brand with a great future because there many areas the brand can still develop. ” Sport is such a strong marketing key because it is a masculine area.

    Part of Nivea’s marketing strategies has been diverted to this area targeting men that love sports. Nivea for men manager was quoted in the Sunday times commenting that “You have to reach guys where they feel comfortable. It is probably easy to convince a metro or gay men that skin care is important but to reach guys who don’t believe they need it can be a lot difficult. ” ( www. sundaytimes. co. uk) Nivea also sponsors Chelsea football club’s website. Most male fans like checking their teams websites for a number of reasons and male fans can be reminded of nivea products every time they visit the website.

    Their marketing strategies have gone as far as knowing the right message for all of its different target customers. Consumer testing showed that men disliked terms like “anti aging” and “anti- wrinkle”. During the launch of Active firming moisturiser, Nivea pointed out that it will not speak to men with the same language that its competitors are using which is similar to the language used when talking to women about anti aging. The reasons were that these are feminine topics and would not be suitable for men. For that reason the brand went with the name Active firming. Business source premier) Nivea has made use of the opportunity of the ageing population. The ageing population of male market opens up specific marketing opportunities as men get older, some find out that their beard growth becomes heavier, with associated problems such as in-growing hair. (Mintel) Nivea is using cancer epidemic to get involved and at the same time raising awareness of its products. Nivea joined cancer research in the campaign which urges men to step up their fitness levels to cut down the chances of getting the disease.

    It offers advice on its website about to keep feet and how to take care of their skin. The web pages stresses that their concern in men’s health. This campaign depicts Nivea as a company that has concern on its male’s health and not just generating sales. The company makes use of its website as part of its marketing strategy. On its web page, it has blue club area that offers coupons and savings in return of a completed questionnaire about user skin care needs. The questions shows that Nivea want to understand especially what visitors are looking for. In return Nivea gets to build a targeted mailing list.

    Nivea has recently given Cognito one of the biggest advertising agencies in London, to handle their advertising. The agencies task was to implement and create a national campaign on sampling activities. This is a more appropriate way to target its customer because it can get an instant response from them. The company also adopted the global – local strategy. To globalize the brand, the company formulated strategies with the help of a team of international experts with local expertise. This strategy added strength to its nivea for men brand. Below is the Ansoff matrix used to incorporate Nivea’s marketing strategy. Existing products| New products| Existing markets| Market penetration: * Usage rate for nivea is increasing with the use of different promotions. * It took the top spot in 2005, with double increase in sales. It generated $30. 9million * It has managed to eliminate its competitiors in moisturiers, it has 87% market share. | Product development:Exfoliating face scrub has been changed to invigorating face scrub. The product is of the same purpose only the packaging has changed. It can take away existing demand as some men might still be looking for the old one.

    Hard to tell if this product is catering for men’s needs. It ‘s disadvantages are that the granules are too coarse ( www. ciao. co. uk/nivea)| New markets| Market development * Nivea developed a new market and segment in Australia. Australian marketers are finding out that that older men love their moisturisers. * The new market development has also opened doors for Nivea’s competitors: L’Oreal. | Diversification * Concentric strategy. In May 2005, the new sensitive face wash and lotion was distributed with the already existing sensitive shaving gel and after shave. 0% of their consumer response said it had sensitive skin. * It is the only company in the mass market that has products for men’s different skin types. (business source premier 2005)| A SWOT analysis has been used for Nivea for men Figure 2 SWOT ANALYISIS Strengths| Weaknesses| * Strong brand * Has a wide range of male products of different skin types than its competitors. * It has a strong Research and development| * Has dominance in US and Europe, but has not fully targeted other parts of the world like Africa. | Opportunities| Threats| * The growth in male grooming products. Demographic trends in the US, which has the most high sales * The growth of the ageing population| * It has a big competitor Gillette in the shaving applications sector. Gillette uses a well known celebrity David Beckham to promote its product. * Pricing pressures from private label brands such as boots. * Complaints of chemicals such methyldibromo and glutaronitile in their products that causes skin irritation and affect eczema sufferers. | Nivea’s marketing strategies using the 4 P’s PRODUCT Nivea has always been a strong brand, nivea for men was first launched in 1998 and has ever since followed the same heritage.

    The visual colour has always been the same, white stands for external cleanliness and blue for harmony. Nivea is the only company that offers different types of male skin products with different skin types. For example, moisturiser face wash is for normal dry skin, purifying face wash is for oily skin. It has done a number of brand of brand innovations, the recent one is the exfoliating face scrub that was changed to invigorating face scrub. The new active firming moisturiser, which makes the skin look young has managed to close the unfilled gaps in its customer profile.

    It now has products for all its target customers from 16 to 65, balancing their profile. The positioning of the products is more of people with a lifestyle. PRICE The prices range from ? 2. 80 to ? 10. 00 and more affordable to its average earnings of the customer it targets. It uses the price skimming method. Its pricing has an unique effect, because it has a wide range of products that its competitors don’t have. The end benefit of the product affects its pricing as most of its products have what men need PLACE Nivea markets its products on its website.

    Their website is easy to navigate and allows people to view products by choosing the country of their choice. The internet has all sorts of products and has a configurator that men can use to check their skin type. The internet is more appropriate to the young targeted customers and not the 35 to 65. It also uses personal care retail outlets such as Boots. This place is more balanced with all of its profile target customers this is a place that all age groups visit. Nivea uses places where men usually hand out, such as at football stadiums. The company once sponsored the world cup, and it now sponsors superbolw league.

    Such places can have a mass market coverage, which can also result in non product users to think of giving it a try. PROMOTION Nivea has managed through its promotional campaigns to target its customers. It has a good website that has ball games for men such as Football mania. This type of promotion is in balance with its target customers mainly the 16 – 35, at the same time not in balance with the older age group who hardly play games online. It uses radio coverage. When Nivea launched sensitive skin for men it teamed up with Talk sport radio’s coverage of Euro 2004.

    Since Nivea launched its products in 1998, Nivea for men has always used football to promote their brands by advertising using perimeter boards and premiership grounds. Nivea makes use of TV adverts a lot. When it first launched Nivea for men in 1998, it used a TV ad. TV ads are a more efficient it they are done well because they guarantee a mass awareness of the product because all age groups watch the TV. REFERENCES (2007) ‘BEWARE OF THE PINK’ http://www. ciao. co. uk/Nivea_Exfoliating_Face_Scrub_for_Men__Review_5622414 (2007) March 2006 ‘men’s toiletries in the UK’ http://acadamic. mintel. om/sinatra/academic/search_reasults Nivea for Men. Drug Store News, 6/26/2006, Vol. 28 Issue 8, p144-144, 1/7p; (AN 21470808) Industry Update. MarketWatch: Personal Care, Jun2006, Vol. 5 Issue 6, p2-3, 2p; (AN 21261037) Keeping men smooth is a $9m business. By: Alarcon, Camille. B&T Weekly, 6/30/2006, Vol. 56 Issue 2570, p4-4 ADS PEOPLE PLAY. By: Gerdes, Lindsey. Business Week, 12/4/2006 Issue 4012, p16-16, 1/4p, 1c; (AN Nivea Overhauls Men’s Line. By: Evans, Matthew W.. WWD: Women’s Wear Daily, 2/17/2006, Vol. 191 Issue 37p9-9, 1/3p, 1c; (AN 20027390) Nivea for Men steps up direct investment.

    Precision Marketing, 1/13/2006, Vol. 18 Issue 11, p5-5, 1/6p; (AN 19980842) www. statistics. gov. uk www. nivea. co. uk brandstrategy (2006) ‘comfortably creme’ http:www. mad. co. uk/main/comments/articles 2003 ‘male obesity upper cancer risk’ http://nutraingredients. com/news/ng. asp? id=36127 2006 ‘nivea for men’ www. articlefinders. com/p/articles/mi_m3374/is_8_28/ai_n16533884 Dalby D. (2005) ‘men finally learn how to play the beautiful game – marketing’ www. sundaytimes. co. uk (2005) BIBLIOGRAPHY: www. emeraldinsight. com/insight/veiw www. marketresearch. world. net www. marketwatch. com www. guardian. co. uk

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