Product situation
Nivea has become one of the biggest known personal care brands around the globe. In New Zealand Nivea has no major moisturisers for children, this creates our gap in the market. Several sites on the internet show the position of the industry globally. In general it shows an increase of sales as this generation have been more concerned about their skin than ever before. This has an effect not only in New Zealand but all around the globe. We found as we segmented the market in New Zealand that there was a gap in the market for the younger children. The marketing segmentation is the “process of classifying customers into groups with different needs” (Kotler, Brown, Deans, & Armstrong, 2010).
Competitive situation
Nivea has been ranked number one in the top brands by value only to be beaten by Johnson once according to Appendix 1A-D the Market Information Digest, years ’04. ’05, ’06, and ’07. This shows that in New Zealand Nivea is one of the best (if not the best) product to use for the hands and body. Being this big number one brand we will be able to easily promote our products to our faithful consumers.
The competition for this children’s market in New Zealand is very big. Several other big brands have these products already successfully in the market, with prices just as competitive. Also new cheaper brands have recently come out which attracts the lower income family brackets to purchase.
Distribution situation
Nivea is sold throughout the world in supermarkets, chemists and some up market dairies. As the supermarkets and dairies around the country have recently increased rapidly we as consumers have more accessibility to these products. Prices are on average quite high if you are in an average income family. As being such a big brand Nivea could open outlet stores just stocking Nivea products.
Macroenvironment situation
Nivea is a brand that doesn’t advertise with celebrities but with unknown individuals, just regular people. This is used to show that you don’t have to be famous to have great skin, its achievable by everyone. According to Appendix2 the age bracket that most consumers use Total Nivea products is the 20-24 age category closely followed by 16-17 and 18-19 year old. This shows the youth seem to be the major target market for Nivea products. This could be due to the age that they are at when they are trying to fit in socially and look good for bosses, friends or partners. But our product is to keep the skin in good condition for the younger children now so in the future it stays similar.
Strengths, opportunities and issues analysis
Strengths
- Good quality
- High promotion through billboard advertising, newspaper and magazine advertising, and free samples in some up market malls.
- Effective colours used in product imagery.
Weaknesses
- Average prices.
- Big product category means more different competing brands available.
- The market is more women oriented
Opportunities
- Increasing company profits.
- Increasing products range.
Threats
- Old scheme may not work.
- Other brands may have already had a big affect in taking over the market.
Issues analysis
- How much should Nivea spend on promotions compared to previous promotions?
- Would an old advertising setup work for this new product?
- Would it be worthwhile trying a new advertising scheme, as this product is for children?
- In relation to previous product launching, will the amount spent on promotions be worth it in the end?
Objectives
Marketing objectives
Launch a new product: Nivea for Children Moisturiser. This product is for children, as the Nivea range doesn’t have many (if any) children’s products. Prices would be affordable but would mainly be intended for families who are skin cautious. Families that already use moisturiser, but don’t know what to use on young children.
Marketing Strategy
Positioning strategy
Target market: young children whose parents are concerned about their skin condition now which could affect them in the future.
Product positioning: easily accessible in stores around the country like supermarkets, chemists and (if willing to) dairies.
Product line: this product would be placed in the same area as other competing moisturisers. Or on shelves that are around the rest of the Nivea range.
Price: our price will be set at an average price compared to the same product with a different branded name.
Communication: slightly increase the advertising promotion found in newspapers and newspaper. Largely increase the billboards around the country. Increase the sales promotion done in malls and stores to keep the new products available to consumers to try out. Thus keeping consumers interested in all the new and upcoming products.
Sales force: maintain store stocks so the required products are available to all consumers whenever needed.
Advertising: keep the same advertising scheme but just increase the amount of sources of advertising.
Sales promotion: keep the sales promotion at the level that it’s at. As this is a worldwide brand people will see the new product and be attracted instantly. To increase the target market leaflets could be handed out to several top primary and intermediate schools, both advertising the product and giving out 10-15% discount off the product.
Synchronous: Increasing the updates on Nivea websites to keep the consumers up to date.
Research and development: Increasing expenditures by no more than 35%.
Marketing research: Improving knowledge of competitor’s activities. Also keep the internet updated with new products and information.
Action Programs
Product: Nivea will launch a new moisturiser targeted to the children extending the already effective variety of products. Colours will stick to the brand logo, being blue and white. Keeping it simple wont emphasis too much that it’s a new product, but another Nivea product. This will appeal to already valuable consumers that have been buying Nivea products for years. The bottle would be in two different varieties of sizes. The amounts would be 200mls and 500mls.
Price: The prices will be as follows – 200mls $7.99 500mls $11.99. These prices are quite high but as Nivea is a big brand we are hoping our loyal, faithful customers will still purchase the product.
Place: This new Nivea product will be located at all supermarkets, chemists and service stations around the country that already stock Nivea products. If dairies are willing to stock it this would increase the accessibility, but as long as they don’t mark up the price by too much. By doing this it could give the consumer the image that the price is too high and in the future their confidence in Nivea can decrease. Putting our product on the shelves right next to the competitors will help us like when the consumer sees the new Nivea product, knowing it’s a well known brand, could change their usual children’s moisturiser to the new Nivea one.
Promotion: To promote this new product we will replace current Nivea advertisements to this latest product. This includes major billboards around the country, advertisements in major women’s magazines and television advertising. The magazine advertisements will include a sample in one major magazine. Kiosks around the country would be set up in major malls promoting the product. We will get free samples going around some major events our target markets (our target market being more the mum’s who will buy the moisturiser for the children) will attend.
Timeline
August - November: Final adjustments to the product contents and the bottles final designs will be finalised.
December – February: Designing and planning the locations of billboards, shooting the adverts to go on television, organising the magazines to promote in, hiring the Nivea promotion crew to be set up in malls, and deciding which events to set up tents to give out free samples. A month before launching the product Nivea’s website will be up to date with the product.
March – July: Full on advertising campaign: several television adverts, billboards all over the country, major magazine promotions, and major mall promotions. At the same time the product will be launched in the proposed accessible locations around the country.
August – November: By now the product will fully be in the market. Nivea will just need to keep a close look on how the product is performing and if needed to change the price as the product will now be set in the market.
Reference List
AC Nielsen (NZ) Limited. (2007). Skin Care – Hand & Body (incl Baby) data to 17 Jun 07. AC Nielsen Market Information Digest 2007. Retrieved April 23rd, 2010 from the AC Nielsen Market Information Digest database.
AC Nielsen (NZ) Limited. (2006). Skin Care – Hand & Body (incl Baby) data to 18 Jun 06. AC Nielsen Market Information Digest 2006. Retrieved April 23rd, 2010 from the AC Nielsen Market Information Digest database.
AC Nielsen (NZ) Limited. (2005). Skin Care – Hand & Body (incl Baby) data to 19 Jun 05. AC Nielsen Market Information Digest 2005. Retrieved April 23rd, 2010 from the AC Nielsen Market Information Digest database.
AC Nielsen (NZ) Limited. (2004). Skin Care – Hand & Body (incl Baby) data to 13 Jun 04. AC Nielsen Market Information Digest 2004. Retrieved April 23rd, 2010 from the AC Nielsen Market Information Digest database.
Kotler, P., Brown,S., Deans, K. R., & Armstrong, G. (2010). Marketing (8 ed.). Australia: Pearson Australia.
Nivea. (2010). Nivea History. Retrieved from
Roy Morgan New Zealand Ltd. (year). Title. Roy Morgan Single Source New Zealand: Jan 2006 - -Dec 2006. Retrieved April 23rd, 2010 from the Roy Morgan database,
Appendix
