Nivea Marketing Project

Only available on StudyMode
  • Download(s) : 352
  • Published : March 2, 2011
Open Document
Text Preview
PRICING:
NIVEA which is truly a global brand has not met with success in India because the target segment of NIVEA were primarily women from the upper strata of society.Its products especially men care products are very costly. The price of all its products which are used on a daily basis like Deodorants, talcum powder and soaps are of the same price as that of the competitors. But other products like lip care and Men care are highly priced compared to that of its competitors.

The pricing strategy that NIVEA uses for its premium products is Price Skimming i.e. an initial high price for a unique product encouraging those who want to be ‘first to buy’ to pay a premium price. This strategy helps a business to gain maximum revenue before a competitor’s product reaches the market.

On re-launch the price for NIVEA VISAGE Young was slightly higher than previously. This reflected its new formulations, packaging and extended product range. However, the company also had to take into account that the target market was both teenage girls and mums buying the product for their daughters. This meant that the price had to offer value for money or it would be out of reach of its target market.

As NIVEA VISAGE Young is one of the leading skin care ranges meeting the beautifying needs of this market segment, it is effectively the price leader (it sets the price level that competitors will follow or undercut). NIVEA needs to regularly review prices should a competitor enter the market at the ‘market growth’ point of the product life cycle to ensure that its pricing remains competitive.

The pricing strategy for NIVEA is not the same as that of the retailers. It sells products to retailers at one price. However, retailers have the freedom to use other strategies for sales promotion. These take account of the competitive nature of the high street. They may use: • loss leader: the retailer sells for less than it cost to attract large volume of sales, for example by supermarkets

• discounting – alongside other special offers, such as ‘Buy one, get one free’ (BOGOF) or ‘two for one’.

On their webpage NIVEA claims that their products are of a quality level that some competitors offer for ten times the price. Here we clearly see that NIVEA goes for the strategy of positioning their products as being of quality at affordable prices ("More for the same"). This is coherent with the idea of NIVEA being the perfect choice of the whole family. Caring mothers and fathers who want to provide their families with good quality products can still afford doing so by buying NIVEA skincare. However, the brand takes care that it does not appear to charge less so that the image of being a quality brand remains believable for customers.

Deodorants:

NAMEPRICE(in Rs.)QUANTITY

Pearl and Beauty Roll On16550ml
Dry Comfort Deo149150ml
Energy Fresh Deo164200ml
Dry Impact (Men)164150ml
Fresh Active (Men)164150ml + 50 ml Free
Cool Kick (Men)149150ml

Talcum Powder:

NAMEPRICE(in Rs.)QUANTITY

Musk Talc39100gm
Pure Talc39100gm

Face Wash and Soap:

NAMEPRICE(in Rs.)QUANTITY

Advance Whitening (Men)209100gm
Oil Control215100gm
Oil Regulating9975ml
Crème Soft Soap2768gm

Moisturiser and Body Lotions:

NAMEPRICE(in Rs.)QUANTITY

Oil Control Moisturiser (Men)9915ml
Repair and Protect Moisturiser9515ml
Moisturising Body Lotion8475ml
Body Milk Lotion9975ml
UV Protection Body Lotion198250ml

Lip Care

NAMEPRICE(in Rs.)QUANTITY

Fruity Shine Lip Balm1294.8 gm
Hydro Care Lip Balm1394.8 gm

Creams:

NAMEPRICE(in Rs.)QUANTITY

Crème6560ml
Crème Soft7950ml

Others:

NAMEPRICE(in Rs.)QUANTITY

Cleansing Milk159125ml
Oil Regulating Toner149125ml

Competitors:

Deodorants:

NAMEPRICE(in Rs.)QUANTITY

Dove Silk Dry160167ml
Dove Go Fresh160169ml
Garnier Absolute Dry150150ml

Talcum Powder:

NAMEPRICE(in Rs.)...
tracking img