The Marketing of Nivea

The Marketing of Nivea

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The Marketing of Nivea

1911 was the year NIVEA CRÈME was born. In fact, NIVEA CRÈME required the work of three resourceful men: Dr. Oscar, Dr. Isaac and Prof. Paul, not just one for its development. Dr. Oscar had acquired Beiersdorf in Hamburg from its founder Carl Beiersdorf in 1890. After a lot of research, they developed the first stable grease and moisture cream in the world – NIVEA CRÈME. It contained:
1. Fragile oils
2. Water
3. Glycerine
4. A little citric acid
5. Oil of rose
6. Lily of the valley to give it a fine perfume.
Dr. Oscar called his crème NIVEA, meaning snow white because of its color. Shortly after its invention the crème was sold in yellow tin.
1920: As early as the Twenties, the NIVEA brand was associated with youth, freshness and leisure in the sun and in nature. They made their advertisements and lively by using young, attractive and fit women tanning herself in the sun.
1930: In 1930, the NIVEA range was expanded with the addition of NIVEA OIL. The skin oil was usually used by sportspeople and for massage. In their advertisements as well they used masculine model athlete which bought about an attractiveness and youth image in the minds of the consumers. The NIVEA product range had expanded considerably – hairdressers, as well as pharmacists and chemists had now been supplied since the mid-twenties.
Between 1929 and 1931, NIVEA launched solid brilliantine, shaving cream, shaving soap, facial toner, hair oil and for the first time – NIVEA SHAMPOO.
1940: In the early 1940’s, NIVEA launched its NIVEA MILK. The dual benefits of NIVEA milk which were highlighted and made clear were cleansing the skin and facial massage.
1950: The 50’s was not really an easy time. The rebuilding of Germany, the cold war, demonstration against the atom bomb, the struggle for employment and hard work were all part of reality. In this time, NIVEA made a poster of two very optimistic couple, looking full of confidence, towards a happy future.
1960: NIVEA’s advertising themes of the 60’s particularly reflect the developments of a trend which is still booming now – the travel craze. Growing prosperity made it possible for increasing number of people to travel. The famous NIVEA ball plays the key role of a sport and leisure tool as it ensures good mood.
At the end of 60’s, there were a number of changes in the market and trade structure. A number of financially strong companies brought out new brands of cream and differentiated skincare ranges.

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Therefore, NIVEA started sales in supermarket with a great deal of promotional support. They started challenging advertising campaign to show the supremacy of NIVEA and have a powerful effect on consumers.
1970: The successful advertising campaign of the 70’s had provided Beiersdorf with the crucial basis required extending the NIVEA brand into a new market with new products. A large scale image research study carried out for European countries in 70’s showed that NIVEA enjoyed a high level of trust and was considered an honest brand of high quality. This product range was extended and divided into the following ranges:
• SKINCARE.
• NIVEA SUN.
1980: The product range of NIVEA was extended further on in the 1980’s where the new products introduced by them consist of the following products:
• NIVEA SHAVING CARE.
As early as 1980, NIVEA AFTER-SHAVE BALM was developed as an after shave production which no longer irritated the skin after shaving, but even relaxed it. NIVEA Balm was the first balm not to contain irritating alcohol. In 1986, Beiersdorf presented the NIVEA shaving rang in new packaging and under the name NIVEA FOR MEN for the first time.
• NIVEA SOAP / SHOWER / BATH PRODUCTS.
NIVEA CRÈME BATH SHOWER GEL and SOAP in 1980 emphasized the gentle care and high quality of NIVEA. Fun at bath – time for all the members of the family which good – value, straight forward NIVEA crème bath effectively provided. The new NIVEA crème shower gel symbolizes the gentle caring feeling of showering with NIVEA. To cater to the needs of Men, NIVEA brought to NIVEA shower gel especially “FOR MEN” in 1989. In 1983, Beiersdorf introduced the new NIVEA shampoo. This was a special hair care shampoo and ensured a link to the core of the NIVEA brand. “This is the care frequently washed hair needs”, was the slogan for the launch campaign. A year later, a conditioning rinse was added and advertisement remained the same.
1990 UNTIL TODAY: Due to increasing customer demands, NIVEA increased its product range further thereby making it an extensive range which also helped in improving the quality of the products massively.

Broad area of research interest identified:
We identified Nivea’s marketing and advertising areas as the research interest topic. Within the marketing and advertising element of Nivea we wanted to see which of the 4P’s is the reason behind the increase in the level of sales for Nivea products.
• PRODUCT
Product is the main concept of any marketing program. “Without product, there’s nothing to distribute, nothing to promote and nothing to price.” – S.A.Sherlaker.
The general selling points of NIVEA products include:
1. Physical attributes – how the product appeals to a consumer.
2. Utilities.
3. Brand, packaging and labeling.
4. Design, color, size, shape, style, finish and beauty.
5. Price.
6. Services.
7. Company image.
8. Safety to users – buyers are not interested in what the product contains, but what the product satisfies them with.
Product features: NIVEA’S collection of cosmetic products consists of vibrant colors. Example: the different shades of lipsticks, eye shadows, etc. NIVEA is known for the high standard of quality products that it produces. This makes it stand different among other cosmetic brands. The milk lotion product that it had launched earlier in the market demonstrates an example regarding NIVEA and its constant improvement in quality. However, as people complained that the milk lotion felt too sticky when applied to the body, NIVEA changed the product by improving the quality and instead of the milk lotion, it introduced a body lotion, which was non – sticky and was available in different types for all skin types, which was not a feature of the milk lotion earlier. This proves the fact that they really work hard in order to improve their quality of the product to gain customer satisfaction and brand loyalty. Along with color and quality, NIVEA’S packaging is also very attractive as it comes in different shapes and sizes.
• PRICE
Is the exchange value of a product or service always expressed in money.
Price (money) = Bundle of expectations / satisfactions.
NIVEA’s prices are reasonable compared to its competitors. Everybody can afford NIVEA, as its products are not targeted to any particular segment of the market. NIVEA’S prices are however ranged in the following manner:
Depending on texture – Lipsticks – Dhs. 24 to Dhs. 30.
Depending on Sizes – Cream – Dhs.3 to Dhs. 12.
Differing from places to places – Deodorantsdorant – Dhs. 7.50 to Dhs. 8.50
Differing from product to product – Visage – Dhs. 14.50 to Dhs. 30.
• PLACE
Place means the areas where NIVEA is distribute and spread out. It should be distributed so that it is within the reach of normal customers also. NIVEA products are available at all supermarkets, mostly at all grocery stores and shopping malls too. Big and popular supermarkets have separate counter only for NIVEA products with a promoter standing beside the counter in order to promote the product.
All variables are interlinked where the main ingredient of promotion and advertising plays an important role in the success of NIVEA sales other than other elements such as quality, packaging, etc.
• PROMOTION and ADVERTISING.
Promotion is an important element in an organizations marketing mix, which is, used to inform and persuade the market regarding the organization’s products and services. The main goal of promotion is to change the pattern of demand for the product in order to have the same distance between the products and its customers. Whereas, advertising consists of the activities involved in presenting to a group, oral / visual, openly sponsor identified message regarding a product – service – idea. An advertisement is disseminated through one or more media and is paid for by the identified sponsor.
NIVEA promotes its products through different kinds of media. This includes television, newspapers, billboards, magazines, brochures and a number of stalls at popular malls and supermarkets especially during the Dubai Shopping Festival. NIVEA gives huge quantities of free samples of its products. NIVEA’S promotion campaign includes attractive packages with mind blowing offers. Promotion campaign of NIVEA is seen through out all the places in Dubai.
SUMMARY AND SUGGESTIONS
After the analysis and interpretation of the data, the hypothesis that “NIVEA has been able to constantly increase its sales in the past few years because of the new and attractive promotional programs that it has launched is wrong. NIVEA’s main element of success is its special promotions that it offers to its customers. We think that NIVEA’s pricing policy, product range, and quality of products and other such elements are not really as important as the promotion and advertising campaign of NIVEA,” is proved to be partly wrong because not only do the promotion programs contribute, but also the pricing policy, product range, and quality of products of NIVEA contribute significantly for increasing the sales level for NIVEA. Therefore, from the derived results and interpretations, the hypothesis is not fully disproved but partly incorrect due to the identified results and interpretations. So it can now be said that the reason for NIVEA’s success is not only the promotion element but also the pricing range, product range and quality of the products.
The basic suggestions that we came about and which we think that NIVEA should adopt are as follows:
• There are a few people who feel that NIVEA products are slightly greasy when applied. Therefore, NIVEA should consider on improvising and reducing the oil content in their products and make more oil free creams.
• NIVEA has products for the face and body, therefore, now they should consider on making and launching more products for hair.
• The texture of NIVEA beaute cosmetics is very thin and light which does not cover the scars on the face so they should basically improve the texture.
• They need to have a wider range in their colour category. Along with that they need to put in darker colours because they have lighter pink colours which doesn’t really suit the Asian skin tone in Dubai.
• The SPF (sun protection factor) content of NIVEA creams is 15 which is very less as compared to the SPF requirement for Dubai’s climate. The customers usually complain that their skin turns dark after NIVEA creme’s. So they should increase the SPF in them.
• They should add tiny granules in NIVEA’s face-wash which help the customers to scrubs their skin more appropriately.
• The fragrance of the deodorants should be made more long-lasting.
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