NIVEA is an established name in high quality skin and beauty care products. It is part of a range of brands produced and sold by Beiersdorf. Beiersdorf, founded in 1882, has grown to be a global company specialising in skin and beauty care. In the UK, Beiersdorf's continuing goal is to have its products as close as possible to its consumers, regardless of where they live. Its aims are to understand its consumers in its many different markets and delight them with innovative products for their skin and beauty care needs. This strengthens the trust and appeal of Beiersdorf brands. The business prides itself on being consumer-led and this focus has helped it to grow NIVEA into one of the largest skin care brands in the world. Beiersdorf's continuing programme of market research showed a gap in the market. This led to the launch of NIVEA VISAGE Young in 2005 as part of the NIVEA VISAGE range offering a comprehensive selection of products aimed at young women. It carries the strength of the NIVEA brand image to the target market of girls aged 13-19. NIVEA VISAGE Young helps girls to develop a proper skin care routine to help keep their skin looking healthy and beautiful. -------------------------------------------------
Market orientation and product orientation
Page 2: Product
The first stage in building an effective mix is to understand the market. NIVEA uses market research to target key market segments which identifies groups of people with the same characteristics such as age/gender/attitude/lifestyle. The knowledge and understanding from the research helps in the development of new products. NIVEA carries out its market research with consumers in a number of different ways. These include: * 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.
How research improved the product
Beiersdorf's market research identified that younger consumers wanted more specialised face care aimed at their own age group that offered a 'beautifying' benefit, rather than a solution to skin problems. NIVEA VISAGE Young is a skin care range targeted at girls who do not want medicated products but want a regime for their normal skin. Competitor products tend to be problem focussed and offer medicated solutions. This gives NIVEA 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 finalising 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 colours to appeal to younger women * changing product descriptions and introducing larger pack sizes. Each of these changes helped to strengthen the product range, to better meet the needs of the market. Corporate responsibility
Some of these changes reflect NIVEA's commitment to the environment. Its corporate responsibility approach aims to: * reduce packaging and waste - by using larger pack sizes * use more natural products by including minerals and sea salts in the formula * increase opportunities for recycling - by using recyclable plastic in its containers.
Page 3: Price
Lots of factors affect the end price of a product, for example, the costs of production or the business need to maximise profits or sales. A product's price also needs to provide value for money in the market and attract consumers to buy. Pricing strategies