MARKETING MIX EXAMPLE – NIVEA

MARKETING MIX EXAMPLE – NIVEA

The Company

NIVEA is a well-known company that is in the high quality skin and beauty care product market. NIVEA is one the brands manufactured and sold by Beiersdorf, which was established in 1882. In UK, the company has always focused on ensuring availability of their products to as many people as possible. In addition, the company has always strived to understand the varied needs of its vast consumer base and bring as many specific products to market as possible.

Marketing mix for new product line

Market research revealed an opportunity in the market for a younger customer base. This led to the launch of Nivea Visage Young in 2005. This product was developed for girls in the 13 to 19 year age range.

For the eventual launch of the product, the company needed to develop a balanced and relevant marketing mix to appeal to its young audience. Through its initial launch in 2005 to a subsequent re launch in 2007, the company focused closely on the marketing mix balance to help ensure that all elements of the product appeal to the target audience to achieve success.

Product

The company put significant importance in ongoing research to understand the constantly evolving market and consumer dynamics. This knowledge has helped the company develop more innovative new products that fulfill consumer needs. Through this research, it became clear that younger consumers wished for a more specific product that addressed the skin needs of their age category. The need was for a product that offered a beautifying regime for daily use rather than a medicated product that targeted specific skin problems. The latter were abundantly being offered by competition. The product was subsequently redesigned to meet these specialized requirements.

From the company’s perspective, some of the changes helped meet its commitment to the environment which included more efficient packaging to reduce waste, the use of more natural products and the use of recyclable plastic.

Price

An effective pricing strategy takes into account the product’s perceived and actual values. The final price should be based on both these in order to make the product attractive to both buyer and seller. After its relaunch, Nivea Visage Young was priced a little higher than before to account for the new formula, better packaging and extended range of products. Since the product as being bought by mothers for their daughters, it remained low enough to remain good value for money. Effective pricing means that sales from this product account for nearly 7 percent of all Nivea Visage sales.

Place

As mentioned, Nivea aims to have a wide reach for its products to ensure that it is easily available wherever needed by the extensive target market. The primary channels used are retail stores. High Street stores such as Boots and Superdrug account for nearly 65 percent of all sales. Another portion comes from grocery chain stores such as ASDA or Tesco. This covers young people making their own purchases (mostly high street), as well as their mothers buying for them (mostly grocery stores). These stores ensure a cost effective distribution channel that has a wide reach. The company manages its own cost by selling to wholesalers rather than directly to smaller stores. It also does not sell online directly, but the product is sold through stockists.

Promotion

Nivea’s has always tried to base its promotions on the actual lifestyle of its target market. The company does not find above the line promotions to be very effective as these are one way communications through TV for example. Instead, the promotion is more consumer led through different below the line solutions. Sample sales are a key activity that allows consumers to try out the actual product. There is also an interactive online magazine FYI (fun, young, independent) to increase product visibility and association. The company has also maintained a strong social media presence on popular social media networks. This used of new media has ensured a better brand awareness and association among target audience.

Conclusion

Through its successful use of a balanced marketing mix, Nivea Visage Young has managed to create a clear position in the market. It addresses a need felt by a specific niche segment. Traditional distribution methods are balanced by a unique product and updated promotional strategies. This ensures that the brand message reaches the right people at the right time in the right way.

As we see from the Nivea example, it is vital for any company to focus equally on all elements of the marketing mix while planning for a product. Eventually, there may be a need to divert more resources towards one variable such as strong distribution channels over promotional activities. But this needs to come after a clear plan and strategy has been decided upon. An effective marketing mix can mean the difference between a flash in the pan product or one that is bound to become a well-loved classic.