In 1911 a German consumer company named, Beiersdorf brought out the now the very famous Nivea cream. Nivea Cream was the first true cosmetic moisturiser to be released upon the market, and is still Nivea’s signature product. Since then, the company has grown to be one of the largest skin care brands throughout the world, selling a range of products in over 150 countries.
However, to meet the ever evolving customer needs and to further penetrate into the personal care and cosmetics market; Nivea extended its product range to include: body moisturisers , sun care, Nivea for men, hair care, and deodorants to name but a few. 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.
Macro-Environmental and PEST Analysis
The macro-environmental analysis is going to be based on Nivea sun care, as this product is aimed towards the greatest target market as its geographical position can now be seen in many shops worldwide.
To gain a full understanding into the brand Nivea, a PEST analysis is going to be conducted, this will show an in depth explanation of some major factors which have occurred over the past few years.
Whilst researching on the Mintel Oxygen website, one statistic which was very significant in the overall sale figures of Nivea was;
“Poor summer weather has contributed to the 2% decline in total Nivea sun care value sales between 2009 and 2011. According to Cancer Research UK, people still need UV protection when the sky is cloudy as clouds are not a good shield against UV radiation. If consumers can be convinced that sun protection is still necessary when the weather is overcast, volume use of sun care would increase considerably.” (Source: Ricky Lakhani, Personal Care Analyst http://oxygen.mintel.com/sinatra/oxygen/search_results/show&/display/id=545546) Whilst looking into this point further, you can gain a great understanding as to why Nivea’s sales have declined by the 2% other than just ‘poor summer weather.’
Below you will find a PEST table, which gives examples of; Political, Economical, Social and Technological factors regarding that of Nivea, there is more detail about each point later on in the assignment.
•The Government stated that it is okay to use a sun cream under the advised 30SPF (sun protection factor). Dr Ike Iheanacho, (the editor of the Drug and Therapeutics bulletin stated: “NICE’s (Governments health watchdog) recommendation is a blunder that overlooks key evidence and is not in the best interest of public health.” (Source: http://www.bbc.co.uk/news/health-13601433)
Even though the comment made does reflect negatively upon Nivea, the company could turn this into an opportunity, by investing money into their advertising and marketing to get the point across that a higher factor is needed to be safe.
•The decline of the world’s economy.
One economical factor which could be seen as a threat and could contribute to the overall decline in the demand of Nivea sun cream is the economic downfall the world is currently witnessing. (Source:
One threat which Nivea could face being a premium brand is that consumers might opt to purchase a substitute product which might be of lower quality and price. Therefore Nivea need to find an opportunity in this downfall. For example, they could invest in their sales promotion. i.e, having the factor 30 sun creams on offer, such as a ‘buy one get one free,’ this may encourage potential custom, as people may feel like they are getting a good deal.
•Bad publicity regarding the kids range of sun cream.
A recent report has stated that some sun care...