Consumer Behavior

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  • Topic: Shaving cream, Shaving, Nivea
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Reginald Jones


Consumer Behavior

Week 7- Course Project “Nivea Active 3”

Market Analysis

As one of the leading international skin care companies we are close to consumers, offering them compelling, innovative products. With more than 125 years of experience in skin care and one of the world's most modern research centers, Beiersdorf stands for innovative and high-quality cosmetic products. Our brands are trusted universally - from NIVEA, one of the world's largest skin care brands (1). The company has introduced a men’s product called NIVEA FOR MEN Active 3. The strategy of the company is to promote a product that is easily accessible and gives the consumer added value by providing added solutions to everyday life.

NIVEA FOR MEN Active 3 is a refreshing shower, a moisturizing shampoo and a foaming shaving gel all combined in one product with a refreshing citrus scent. The revitalizing gel with advanced MICRO TEC-Technology develops into a generous foam that offers mild cleansing for body and hair, allows for a comfortable yet thorough shave and leaves the skin clean and smooth. Thanks to our Micro-Tec technology, this advanced formula combines high-tech polymers and essential nutrients. The caring nutrients are provided by avocado and sunflower oil extracts. These lipids help restore moisture to the skin making it feel smooth. At the same time, the high-tech polymers create a generous lather, which allows the razor blade to glide gently – giving you a comfortable yet thorough shave. (1).

NIVEA for MEN formally announced the new Active 3 June 29 2009, an innovative three-in-one shower agent combining body wash, shampoo and shaving gel in one bottle (2). The introduction of this product can be seen as an induction from a growing trend in men’s use of liquid soap as well as overall personal care. The liquid body soap market grew to $733 million in 2008 from $480 million in 2003, an increase of 53 percent, according to Mintel, which projects revenue will top $1 billion in 2013. Men’s formulas are growing more rapidly than women’s and unisex products, from a 17 percent share of overall category revenue in 2005 to 28 percent in late 2009 (3). Male consumers are paying more attention to their looks. The trend is being driven by male role models which including sportsmen and film personalities. As the gender boundaries are blurring, global firms are increasingly focusing on finding new ways of making profits from the emerging characteristics of men consumer segment. The world market for men's grooming products is projected to exceed $33.2 billion by the year 2015, According to New Report by Global Industry Analysts, Inc. (4) An executive of Nivea’s parent company wisely identifies 2 of its primary competitors in his statement in regards to the Nivea Active 3. “The target we have is slightly older than Axe or Old Spice,” said Mr. Maurer, of Beiersdorf. “We’re talking to a more confident guy that knows who he is and what he stands for, and who is past the trying-to-get-the-girl stage (3).” Axe is the most popular men’s brand, with a 7 percent share of the total body wash market, according to Information Resources, a market research firm. Old Spice, which introduced body wash in 2003 and is a close second to Axe among men’s brands, with 6 percent of the total market, also emphasizes manliness: it is the official body wash of the N.F.L. and Nascar.

As far as the overall market the evoked set of brands in the men’s grooming industry include Procter & Gamble which sits high atop with brands as varied as Head & Shoulders, Gillette and Old Spice, the Cincinnati-based producer accounts for 43% of all industry sales (5). Also, Dove has made a conscious attempt to move from the awareness set to the evoked set with its amid the high-profile entry of Dove Men+Care (6). Finally, Axe is definitely included in this consideration set within an industry that has seen significant growth in the past few years....
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