NIVEA Marketing Mix Concept Samples for Students †MyAssignmenthelp.co

Question: Discuss about the NIVEA Marketing Mix Concept. Answer: Introduction Convincing business operation requires that a firm strives for uniformity in itsmarketing mix wherever and whenever possible, while noting that the differences in the cultures may demand some of the accommodation, if the products or service is to remain competitive. NIVEA is the brand with established name in the beauty and a high quality care product. Beiersdorf was founded in 1882, specializing in the skin and beauty care products. Nivea brand is one of the brands that Beiersdorf produces and sell. The ongoing goal of the Beiersdorf Company in the United Kingdom is to make the product so close to the users irrespective of the place of the residence. The main aim of the Beiersdorf is to understand different market segment and pleasure the clients with an innovative product for their skin and beauty care. Customer driven is what makes the company to pride for, and enable to grow as one of the largest company producing the skin care brands in the worldwide. In the process of the Beiersdorf continuance in the market research program shown a gap in the market segment. It led to the launching of the NIVEA VISAGE Young offering a range of comprehensive selection of the products in 2005 for the young women. NIVEA VISAGE brings the NIVEA brand image to the target market of the girls in the age bracket of 13 to 19years(Jolibert, Mhlbacher, Flors, Dubois, 2012). Brand new NIVEA product enables young girls to keep their skin looking beautiful and healthier. Due to the market gap, NIVEA was able to launch the NIVEA VISAGE, using the price, promotion, product and place as their sufficient balance. Product orientation involves creating the product and introducing to the market. Market orientation approach is the process of finding the gap in the market and developing product so as to satisfy the consumers need. Therefore, the company need to balance 4psmarketing mix to achieve the best results. In the case of the Beiersdorf, developing of the mark eting mix to suit the market target and the product, and meeting of the company objectives was crucial in the growth strategy. Marketing mix concept Product Products are either intangible services or tangible commodity that meets the customers demand and need. All the products follow the product life cycle(Baker, 2014). Therefore, it is necessary for the marketers to understand and adequately plans for the various stages and their respective unique challenges. Studying of the unique selling proposition of the products, benefits it offers, and understanding of its features is also crucial(Kotler, 2012). Moreover, it is imperative to understand the problems that the product tries to solve. Identifying and Understanding the buyers of the goods and services is very vital. Product life cycle (Kotler, 2012) Price The actual amount the customers pays for the products is what constitutes the price. There is a difference in the linkage of the customer perceived value of the product and the objection costing of the services or products on offer. Pricing of the products will directly determine how it sells. The product will be priced higher than its objective monetary value if there is positive customer value(Wright Watkins, 2010). Conversely, the product will be underpriced, if the customers value is negative. Price affects the value chain cost, distribution plans and the competitors pricing of their product. Promotion There is a difference between marketing and advertising. Marketing communication techniques and strategies include special offers, public relations, sales promotion and advertising (Wright Watkins, 2010). The selection of the channel of communication should be relevant to the product, price and target customers. Promotion is the communication characteristic of the whole market purpose. Place The place strategy determines channel of use in delivering the product to the user. Hence, distribution is the key element in the placement of the product. The predictable marketing mix concentrates on the physical asset (Wright Watkins, 2010). Perceiving the services as a product is vital for the customer offering. Supplementing 8ps marketing mix to cater for the challenges of the services is also necessary. Physical evidences Physical evidence is the reassurance and proof that there was a performance of the service. Physical evidence can mean the customer's perception of the product in the market. In service industries, deliverance of the services should have a particular place. For instance, if one thinks of the sport, the Adidas and Nike come into their mind(Kotler, Keller, Manceau, Hmonnet-Goujot, 2015). Additionally, when one thinks of fast food, one thinks of the McDonalds. Thus, there is consumers manipulation of the perception. Process The methods of the execution and deliverance of the services to the customers constitute the process. The process and the systems of the organization affect the service execution. People People are employees who deliver the services to the users. Through research, one can determine if there are enough individuals in the target segment that have demand for particular type of the product or the services(Pruitt Adlin, 2010). Employees are valuable in the delivery of the services. So, it is important to hire and train peoples to deliver the excellent work. Additionally, there will be honest feedback about the business and input their passions, and thoughts which can grow and scale the business to a greater height. Partnership Partnership marketing involves the collaboration of two or more organization with the intention to meet both mid-term and long-term business goals. Business marketing enables the company to increase the product distribution, customers acquisition, program funding and creation of the brand awareness. Involvement of stalk holder in the production of the product or delivery of the services comprise the partnership in the marketing mix. NIVEA marketing mix hybrid framework (Wang Pizam, 2011) Product NIVEA utilizes the market research to identify the market segment with a group of the people with the similar characteristic like the gender, age, lifestyle, and attitude. In the market research, NIVEA uses different ways such as focus groups to directly listen to the customers. NIVEA product tests their product with users in different market (Wang Pizam, 2011). Finally, the company uses different research techniques to collect and gather the information from various consumers. According to the market research of Beiersdorf, young consumers wanted the specialized face care at their age bracket which would beautify their face not offering the medical solution to the skin problems. NIVEA VISAGE Young target the girls who want healthy skin and not the medication purpose of the products (Wang Pizam, 2011). NIVEA gets a competitive advantage as a result of the competitor concentrating on the drug solution rather focuses on the problem of the particular consumers. Before finalizing launching of the product to the market, NIVEA did test the products with a sample group of their target customers. Results of the analysis made company to make changes to the existing product such as changing of the product formula, removing and replacing the alcohol with natural sea salts and mineral(Peter Donnelly, 2011). NIVEA also did introduce two new products in the market. There was modern packing design with soft colors and flower pattern to have an appeal to the young girls. NIVEA did introduce a large pack size and product descriptions. The business need to maximize the sales or profits, and the cost of production is factors that determine the price of the product. Pricing strategies includes; Penetration price- its aims to have a high volume of the purchase and capturing of the significant market share so as to develop the habit of the consumer buying. Cost based pricing- focuses on the product and does not show the importance of users. Pricing skimming- involves the setting of high price to a unique product which encourages the first to come to buy at a premium price(Nagle Hogan, 2010). The strategy works best if the marketer wants to make high revenue before the competitors products spread to the market. NIVEA VISAGE Young is the price leader because of leading in the beautifying need in the market segment. Therefore, it sets the price level which the competitors will undercut. For the company to avoid the difficulties in the product life cycle of the product, the company should reviews the price regularly. NIVEA sells its product at the same prices to the all retailers, and therefore, their pricing strategy is not the same as those in the retailers. However, the retailers can sell the product at a less cost to attract significant volumes sales, especially in a supermarket. Retailers can also use (BOGOF) buy one get one free as methods of giving a discount to the users. Place To reach many customers, NIVEA VISAGE aims to use various channel of the distribution. The retail outlet is the primary channel of distribution of the NIVEA VISAGE where customers get their skin care products. Large Street shops like Boots and Superdrug constitutes around 65% of the NIVEA VISAGE Young sales. Large grocery chains also stock the beauty product such as Sainsbury, ASDA, and Tesco, comprising 35%(Kapferer, 2012). Research shows that parents buy the beauty products for their children while grocery shopping in the supermarket. Research also shows that teenagers purchase the products in the high street stores for themselves with friends. NIVEA uses central distribution point and distributions strategies to consider the environmental impact as result of transport. NIVEA utilizes the cost effectiveness of using a range of the outlet so as to reach highest numbers of the users. Beiersdorf sells the product to the wholesalers and not the retailers in order to be profitable. Similarly, it does not sell through the websites as the cost of producing small quantities cannot be economical. Nevertheless, some companies such as Tesco sell the NIVEA product through the online stores. Promotion is how the marketers tell the customers of the availability of the products and how to persuade them to buy(Morgan, Pritchard, Pride, 2011). Below the line is the promotional method where the company uses promotional methods to put the message of the goods across; public relation, trade fairs or events, branding and sales promotions. NIVEA Company selects the promotional strategy that reveals range of the available media and lifestyle of the target audience. NIVEA does not plan to use the line promotion for NIVEA VISAGE Young like the press or TV because of the ineffectively to reach the group target. Because the NIVEA VISAGE Young is consumer driven, NIVEA identifies the methods of talking directly to the teenagers and their parents. One of the strategies NIVEA uses is to a give a chance to customers to have a touch, smell, feel and try the products samples. In 2008, over million NIVEA VISAGE Young samples were given away. The samples were available in the sample stores, websites and around shows down and up the country. The purpose of the launch of NIVEA VISAGE Young online magazine called FYI (fun, young and independent) was to create the brand awareness. The aim of the magazine concept was to create confidence among the teenagers on how to become young girls. The channel of communication of NIVEA VISAGE Young is engaging and original so as to identify the products with the teenagers. TMF digital TV channel and Hit40 UK chart show promote the NIVEA VISAGE Young magazine. Physical evidence Physical evidence includes where the customers and the business interact and the physical component that enables the communication of the products. The brand image of the NIVEA VISAGE Young is well with the teenagers between the ages of 13-19 years(Wang Pizam, 2011). Some of the physical evidence include; building, signs, building, business reports, annual accounts, websites, business cards and brochures. The product of the NIVEA VISAGE is in the large grocery, high street, online through the TESCO companies, Boots, and Superdrug. To enjoy economies of the scale, NIVEA does not sell to the retailers because of the large production of the products. People People are all human factors that participate in the delivery of services or products, and thus they have influence in the consumers perception such as customers and firm personnel(Hoffman Bateson, 2010). NIVEA has various classes of loyal clients with different age bracket. Due to the market gap of the teenagers between 13-19 years, there was a need to produce and launch the NIVEA VISAGE Young product to cater for their skin care needs. Process The process comprises the mechanisms, procedure, and flow of the operation to deliver the goods or services to the consumers(Sheth Sisodia, 2015). NIVEA Company has a simplified process in the delivery of the service to the users. For instance, in order to sell large quantities of the products, the company does not sell the product to the retailers, and therefore it can enjoy massive economies of the scale. Partnership Companies such as Boots, ASDA Sandburg and Tesco help in the marketing and delivering of the product to the consumers. For example, TESCO advertises the NIVEA products through online. For NIVEA to create brand awareness globally, the companies have a various charitable organization in countries such as Vietnam, Balkan Republic, and France. TMF digital TV channel and Hit40 UK chart show support the NIVEA VISAGE Young magazine(Kotler, Berger, Bickhoff, 2015). Contemporary issues Corporate social responsibility Apart from generating revenues due to the product development, NIVEA company has NIVEA blue libraries which promote and improves the reading skills of the Vietnamese children; fragile educational infrastructure in these poor regions. NIVEA delivers over 1000 books per schools to deliver inspiration so as to enhance literacy(Rosenbloom, 2012). In France, NIVEA supported the singles mothers and low-income households. NIVEA France affiliate has partnered with the non-profit organization (NPO) to accomplish child care amenities in several cities, by linking cheap afternoon child supervision in urban neighborhoods with cultural deals. The concept enables children to access to culture and arts on a regular basis. Additionally, NIVEA children playground in the Balkan republic in 2013 is the initiative which tackles the lack of the safe childrens playgrounds. NIVEA is cooperating with the authority from numbers of cities so as to renovate successfully and create a playground. The main aim is to build a place which is safe for the children to have fun and their families. Environmental concerns It comprises the waste disposal, pollutant problems, and environmental pressure(Hutt Speh, 2012). The ambitious environmental protection and occupational safety management system are successfully and adhered to in Beiersdorfs Chilean affiliate. NIVEA Company also uses more of the natural product in the manufacturing of the outputs which reduces the harmful effect, unlike synthetic products(Lee Kotler, 2011). Similarly, the companies encourage the opportunities for the recycling of the waste materials and also the reduction in the packaging. Ethical concerns The manufacturer of the NIVEA products does not test the products on the animals. There is banning of the animals testing on the all cosmetic products in Europe since 2004. The NIVEA brand complies with the law and does not test their products on animals. Beiersdorf is actively working on the development and recognition of animal testing alternative methods(Moutinho, 2011). NIVEA collaborates closely with the cosmetic Europe, European cosmetic Association and European partnership for alternative approaches to animal testing (EPPA) towards the development and recognition of the replacement of the animal experiments. Technology Beiersdorf researchers have spent over 130 years on solving the skin complex processes to develop the beauty and skin care products. Some of the innovation of the Beiersdorf was the introduction of the Eucerin in 1900 and presentation of the NIVEA crme(Wilson Gilligan, 2012). The discovery of the wrinkle-reducing coenzyme Q10 and skin rejuvenating products, an invention of the first deodorant that protects the skin against the stress- induced perspiration and active skin- moisturizing properties of an ingredient Hydra IQ(Lee Carter, 2012). So as to stay in close relationship with the customer, there is an establishment of the research and development laboratories in China, India, Brazil, USA, Japan, and Mexico. Research center of Beiersdorf has set global standards on the measurement, analyzing and evaluation of the skin care product effectiveness. Social media interaction NIVEA uses the social network such as Twitter, Facebook, and YouTube to connect with the customers. The marketing strategy of the Nivea is to conduct the evaluation of the business product and brand through analyzing of the positive and negative critics from its users(Turnbull Valla, 2013). Through the analyzing of the feedback, NIVEA can conduct SWOT analysis so as to helps in rebranding and launching of the new products so as to cater for the customers wants. The large-scale approach to promote the brand of the Nivea is vital. NIVEA bus offers products testing and samples. In the United States of America uses TV, PRINTS, outdoors and the online display as primary method of the advertising(Lantos, 2015). Large scale approach enables persuasion of the users and how a product performs. Advertising conveys the new information which enhances credibility, builds the awareness and improves the current perception towards the products. Social factor Social Includes; population demography, lifestyles change, consumerism and income distribution. Customers are very cautious one the way they look and their skin. Men and women put more attention to their looks and use of the products to enhance skin textures. There is usage of facial goods and deodorants by customers between ages 25 to 50 years irrespective of the gender. The targeting of the consumers by the NIVEA is between 18 -60 years(Hollensen, 2015). When targeting age of the 40-60 years, they produce Anti-wrinkle and crme for the aging skin. Therefore, designing of the NIVEA VISAGE Young is specifically for the 13-19 age brackets. Globalization Political Involves foreign trade regulation and taxation policy, government stability and privatization and security measures(De Mooij, 2013). NIVEA as producer of skin and beauty products must contain no harmful substance. For instance, the manufacturing and import of the cosmetic products to Iraq, there is imposing of the higher taxes. And so, foreign trade regulations and policies act as barriers for the cosmetics manufacturer. NIVEA need to follow all the various leadership style of different countries to counter the political challenge. Raw material for the manufacture of the products may not allow producing or importing. Economy entails interest rates, inflation and unemployment. Many companies in 2007 had to face slump and volatile interest rate due to the financial market. NIVEA abides by the (The control of misleading advertisement regulation 1988) and makes sure to follow to the advertising standard authority(Yeshin, 2012). There was a decrease in the overall sales of the companys products due to the rise in the inflation rate. There was a significant concern in the industry and also company due to increasing competition from other beauty care and premium skin markets which made a return on investment to decrease. Conclusion In the UK, NIVEA VISAGE Young is a skin care range, and designing of the product is to enhance the beauty and the skin of the teenagers. The product is consumer driven rather than medication like treating the skin problems. NIVEA uses the product differentiation to understand the market target to meet users need and wants. NIVEA balances the four elements of the marketing mix including the prices, products, place and promotion. NIVEA makes sure that the products reach to the consumers at the right price and the right place. The company uses the modern marketing methods such as social networking sites and traditional methods such as distribution channels through the high streets. References Baker, M. (2014). Marketing strategy and management. Palgrave Macmillan. De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes. Sage Publications. Hoffman, K., Bateson, J. (2010). Services marketing: concepts, strategies, cases. Cengage learning. Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education. Hutt, M., Speh, T. (2012). Business marketing management: B2B. . Cengage Learning. Jolibert, A., Mhlbacher, H., Flors, L., Dubois, P. (2012). Marketing management: A value-creation process. Palgrave Macmillan. Kapferer, J. (2012). The new strategic brand management: Advanced insights and strategic thinking. Kogan page publishers. Kotler, P. (2012). Kotler on marketing. Simon and Schuster. Kotler, P., Berger, R., Bickhoff, N. (2015). Quintessence of Strategic Management. Springer. Kotler, P., Keller, K., Manceau, D., Hmonnet-Goujot, A. (2015). Kotler, P., Keller, K. L., Manceau, D., Marketing management (Vol. 14). Englewood Cliffs, NJ: Prentice Hall. Lantos, G. (2015). Consumer behavior in action: Real-life applications for marketing managers. Routledge. Lee, K., Carter, S. (2012). Global marketing management. Oxford University Press. Lee, N., Kotler, P. (2011). Social marketing: Influencing behaviors for good. Sage. Morgan, N., Pritchard, A., Pride, R. (2011). Destination brands: Managing place reputation. Routledge. Moutinho, L. (2011). Strategic management in tourism. Cabi. Nagle, T., Hogan, J. (2010). The strategy and tactics of pricing: A guide to growing more profitably. Prentice Hall. Peter, J., Donnelly, J. (2011). Marketing management: knowledge and skills: text, analysis, cases, plans. Plano: Business pub., INC. Pruitt, J., Adlin, T. (2010). The persona lifecycle: keeping people in mind throughout product design. Morgan Kaufmann. Rosenbloom, B. (2012). Marketing channels. Cengage Learning. Sheth, J., Sisodia, R. (2015). Does marketing need reform?: Fresh perspectives on the future. Routledge. Turnbull, P., Valla, J. (2013). Strategies for international industrial marketing. Routledge. Wang, Y., Pizam, A. (2011). Destination marketing and management: theories and applications. Cabi. Wilson, R., Gilligan, C. (2012). Strategic marketing management. Routledge. Wright, M., Watkins, T. (2010). Marketing financial services. Routledge. Yeshin, T. (2012). Integrated marketing communications. Routledge.