In 1911, the German consumer goods company Beiersdorf brought the now virtually universally known skin cream named Nivea onto the market. Nivea has now grown to be the largest skin and beauty care brand in the world, selling products in around 200 countries. Nivea Crème was the first true cosmetic moisturiser, and is still Nivea’s signature product. However, to meet ever-evolving customer needs and to further penetrate the personal care and cosmetics market; it has extended the Nivea product range to include among others: Body, Visage, Beauté, Sun, For Men, Hair Care, and Baby (Beiersdorf, 2009). This strong global presence, along with continuous innovation and product development has enabled the brands in the Nivea portfolio to effectively compete among the global leaders in the personal care market. So much so, that Nivea products are used by half a billion people worldwide and are sold 18 million times a year (Brand Republic, 2007). The Readers’ Digest Most Trusted Brands survey (in which over 23 000 people participated) voted Nivea as the most trusted skin care brand every year since 2001 (Readers’ Digest, 2009). This further reinforces Nivea’s brand values of security, trust, closeness, and credibility. I would further assert that this consumer attitude towards Nivea is not only applicable in a European context, but also in a broader international and particularly South African context. Evidence of this exists in the Ipsos Markinor/Sunday Times Top Brands Survey 2008, which places Nivea 8th and 9th in the “Beauty Products for Facial Skin Care” category in 2006 and 2008 respectively (Ipsos Markinor, 2008).
Nivea’s first brand extension was actually outside the skin care category to a complementary category, sun care. Nivea’s suntan lotion was introduced in the 1930’s with the new message of ‘Sun Care Cream for Outdoor Fun’ (AC Nielsen, 2003). Nivea Sun, one of many of Nivea’s specialised brands, is a major player in the international sun care market recognised worldwide as a leader in sun care research and development. There are three main product segments within in the current Nivea Sun range: Protection, After Sun and Self Tan. There is a variety of products in each segment with a variety of Sun Protection Factors (SPF), namely: Protection Moisturising Sun Lotion in SPF 8, 15, 35 & 40, Sun Spray in SPF 5, 10, 20 & 30, Sun Water Spray in SPF 5, Children’s Sun Lotion in SPF 35, 40, 50 & 60, Children’s Coloured Sun Lotion in SPF 40, Baby Lotion in SPF 50, Children’s Coloured Sun Spray in SPF 30 & 40, Anti-Ageing Face Cream in SPF 30, Satin Sheen Sun Lotion in SPF 15, Firming Sun Lotion in SPF 15, Pampering Protection Mousse in SPF 8 & 15 and Sun Oil Spray in SPF 4 & 5; After Sun Lotion, Balm with Insect Repellent, Tan Prolonger, Mousse and Spray; Self Tan Spray, Lotion for Fair Skin, Lotion for Normal to Dark Skin and Aerosol Spray (Retail South Africa, 2009). This extensive range of Nivea Sun products in various SPF’s clearly caters to a variety of consumers within each market segment; and targets children, parents and adults alike, across all age and race groups with particular attention to the white demographic.
The following will explore and analyse the full situation analysis for Nivea in South Africa, the purpose of market segmentation and its role in emerging markets, target market analysis and segmentation techniques, market perception and positioning of the Nivea brand and the success of Nivea’s market segmentation strategy in South Africa.
Situation Analysis of Nivea in South Africa
In order to conduct a situational analysis of Nivea, consideration needs to be taken into account of the marketing environment in which the brand operates. Both the Macro- and Micro Environments and an analysis of the Strengths, Weakness, Opportunities and Threats (SWOT) comprise this. The force that trends and developments in these environments may exert on the brand could have a play a...