CASE 1: NIVEA

COMPANY D
LABALAN, KIMBERLY P.
IDABA, MELANIE E.
AGAPITO, ANGELO N.
SIMBILLO, WILL CLARENCE A.
GOMEZ, CHRISTIAN SYD S.

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 TABLE OF CONTENTS

Title of the case & Author……………………………………………………1

Table of Contents…………………………………………………………….2
Time Context………………………………………………………………….3
Viewpoint or Perspective…………………………………………………….3
Background of the Study…………………………………………………….3
Statement of Objectives……………………………………………………..4
Problem Statements/ Central Issue………………………………………..4
Areas of Consideration………………………………………………………5
Alternative Courses of Action……………………………………………….6
Decision Matrix………………………………………………………………..8
Recommendation……………………………………………………………..8
Action Plan…………………………………………………………………….9

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I. TIME CONTEXT

1882- Nivea is founded

2005- Launched of Nivea Visage Young as part of the Nivea Visage range offering
2007- Re-launched the NIVEA VISAGE Young range
2008- Over a million samples of NIVEA VISAGE Young products have been given away

Therefore, it can be assumed that the case study covers Nivea during the early to mid-
2000’s.

II. VIEW POINT OR PERSPECTIVE

The viewpoint of this case study is BEIERSDORF, the parent company of NIVEA. The case
study highlights Beiersdorf's market research and product development strategy for NIVEA
VISAGE Young, a skin care range aimed at young women.

III. BACKGROUND OF THE STUDY

The background of the NIVEA case study revolves around the launch and re-launch of the
NIVEA VISAGE Young range, aimed at young women aged 13-19, as part of the NIVEA
VISAGE range of skincare products. Beiersdorf, the parent company of NIVEA, identified a
gap in the market for specialized face care aimed at younger consumers that offered a
beautifying benefit rather than a solution to skin problems. This led to the development of
NIVEA VISAGE Young, which offered a comprehensive selection of products aimed at
young women to develop a proper skin care routine to keep their skin looking healthy and
beautiful.
The case study highlights the importance of understanding the market through market
research and identifying key market segments, such as age, gender, attitude, and lifestyle.
The marketing mix or the four Ps, namely product, price, promotion, and place, was crucial
in ensuring that the NIVEA VISAGE Young range achieved its critical success factors.
The company also needed to develop a mix that suited the product and the target market, as
well as meeting its own business objectives. The marketing mix was balanced, with a focus
on the product, price, promotion, and place, to provide a platform for launching and re-
launching the brand onto the market. The company optimised the NIVEA VISAGE Young
range in June 2007, introducing a new formula, design, packaging, and name, which further
enhanced its position in the market.
The case study also highlights the importance of pricing strategies in attracting consumers
and ensuring that the price offers value for money in the market. NIVEA VISAGE Young was
priced slightly higher on re-launch, reflecting its new formulations, packaging, and extended
product range. However, the company also had to take into account that the target market

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was teenage girls and mothers buying the product for their daughters, which meant that the
price had to offer value for money or it would be out of reach of its target market.
Finally, the case study discusses the importance of place, which refers to how the product
arrives at the point of sale. NIVEA VISAGE Young's pricing strategy generates around 7% of
NIVEA VISAGE sales, and retailers have the freedom to use other strategies for sales
promotion, such as loss leaders or discounting. The case study highlights the importance of
regularly reviewing prices to ensure that pricing remains competitive, particularly should a
competitor enter the market at the market growth point of the product life cycle

IV. STATEMENT OF OBJECTIVES

Short term objective:

1. To successfully re-launch the NIVEA VISAGE Young range in June 2007 with a new
formula, new design, new packaging, and a new name.
2. To establish NIVEA VISAGE Young as a leading skincare range meeting the
beautifying needs of girls aged 13-19.
3. To set a competitive price for NIVEA VISAGE Young that offers value for money and
attracts the target market.
4. To generate around 7% of NIVEA VISAGE sales through the pricing strategy of
NIVEA VISAGE Young.
Long term objective:
1. To maintain the position of NIVEA as one of the largest skincare brands in the world.
2. To continue to understand the consumers in its many different markets and to delight
them with innovative products for their skin and beauty care needs.
3. To strengthen the trust and appeal of Beiersdorf brands.
4. To continue to carry out market research to identify gaps in the market and develop
products that meet the needs of its target market.
5. To ensure that the marketing mix of the company gets the balance of the four
elements right, so that products will achieve their critical success factors.

V. PROBLEM STATEMENT/CENTRAL ISSUE

Beiersdorf's NIVEA VISAGE Young range, targeted at girls aged 13-19, has successfully
captured the market by offering a comprehensive range of skin and beauty care products.
However, with the introduction of new competitors, it is crucial for Beiersdorf to ensure that
its marketing mix, which includes product, price, promotion, and place, remains competitive
and satisfies the changing needs of its target market. Therefore, the central issue is to
assess and adjust the marketing mix for NIVEA VISAGE Young, so it can maintain its
position as a price leader in the market and meet the expectations of its customers, retailers,
and shareholders.

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VI. AREAS OF CONSIDERATION

STRENGTHS WEAKNESSES
 Established brand name and reputation in  High competition in the skincare and
the skincare and beauty industry. beauty industry.
 Consumer-led focus, which helps the  High dependency on the NIVEA brand
company to understand its target market name, which could lead to reduced sales
and their needs. if the brand loses popularity.
 Diversified range of products under the  Limited focus on the male skincare
NIVEA brand name catering to different market.
segments.  May face negative publicity or backlash
 Effective marketing mix approach that due to ingredient concerns or other
optimizes the product, price, promotion, controversies.
and place to meet business objectives.
 Strong distribution channels with products
available in different markets.

OPPORTUNITIES THREATS
 Expanding the NIVEA brand into new  Intense competition from established
markets and product categories. skincare and beauty brands as well as
 Increasing focus on the male skincare new entrants.
market and diversifying products for this  Economic instability and changing
segment. consumer preferences and trends.
 Growing demand for organic and natural  Negative publicity or backlash due to
ingredients in skincare products, which ingredient concerns or other
could be an opportunity for NIVEA to controversies.
develop new product lines.  Regulatory changes in the industry,
 Increasing online presence and e- leading to increased costs or restrictions.
commerce sales.  Impact of the COVID-19 pandemic on
sales and operations.

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VII. ALTERNATIVE COURSES OF ACTION

ADVANTAGES:
•By increasing the range of
products offered, NIVEA
VISAGE Young can provide a
ACA 1 Increase the range of products more comprehensive solution
offered to its target audience's skin
and beauty care needs. This
can increase brand loyalty,
customer retention, and attract
new customers to the brand.

DISADVANTAGES:
•Increasing the range of
products may require more
resources, including time and
money, which may result in
higher costs. Additionally,
introducing new products may
lead to increased competition
from other brands, making it
harder for NIVEA VISAGE
Young to maintain its price
leadership position.
.

ADVANTAGES:
• Rebranding and
repositioning NIVEA VISAGE
Young can help it stay
ACA 2 Rebranding and Repositioning relevant in the changing
market environment. By
repositioning the brand,
NIVEA VISAGE Young can
target a new audience and
differentiate itself from other
competitors. Repackaging the
product and updating its
design can also give the brand
a fresh look and appeal to
younger audiences.

DISADVANTAGES:
•Rebranding and repositioning
can be a significant
investment in terms of money
and time. It may also require
substantial marketing efforts

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 to make customers aware of
the changes, and there is no
guarantee that the
repositioning will resonate with
the target audience.

ADVANTAGES:
•Online marketing can help
NIVEA VISAGE Young reach
a wider audience at a lower
ACA 3 Online Marketing cost. Social media platforms
such as Instagram, Facebook,
and YouTube are widely used
by the target audience,
making them an ideal place to
advertise the product. Online
marketing can also provide
valuable data on customer
preferences, allowing NIVEA
VISAGE Young to make data-
driven decisions.

DISADVANTAGES:
•Online marketing may not be
suitable for all target
audiences, and it may not be
as effective for older age
groups. Additionally, there is a
lot of competition in the online
space, making it challenging
to stand out and reach
potential customers. NIVEA
VISAGE Young may need to
invest in a robust digital
marketing team to manage the
online campaigns effectively.
.

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VIII. DECISION MATRIX

ACA 1 ACA 2 ACA 3

CRITERIA INCREASE THE REBRANDING ONLINE
RANGE OF AND MARKETING
PRODUCTS REPOSITIONING
OFFERED

PROFIT
3 2 2

AVAILABILITY
OF FUNDS 2 3 2

VALUING
PARTNERSHIP 1 3 1
WITH EXISTING
ALLIANCES

AVERAGE 2 2.67 1.67

Legend: 3 being the highest; 1 being the lowest

The scores for each alternative on each criterion are then used to make a decision. Based
on the explanation provided:

 Alternative Course of Action 1 has the highest score for profits (3), which means it is
the best alternative for increasing profits.
 Alternative Course of Action 2 has the highest score for availability of funds (3),
which means it is the best alternative for requiring a significant investment in terms of
money and time.
 Alternative Course of Action 2 has the highest score for valuing partnership (3),
which means it is the best alternative for helping NIVEA VISAGE Young differentiate
itself from other competitors and target a new audience.
Based on these scores, it can be concluded that Alternative Course of Action 2 is the best
overall alternative since it has the highest scores for two out of three criteria. However, the
decision ultimately depends on the specific goals and priorities of the decision-maker

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IX. RECOMMENDATION
Based on the case study, a recommendation for NIVEA would be to continue investing in
market research to ensure that their products remain relevant and meet the needs of their
target market. The company should also continue to focus on innovation and product
development to maintain a competitive advantage in the market. Additionally, NIVEA should
regularly review their pricing strategy to ensure that it remains competitive and offers value
for money to their target market. The company should also consider offering special
promotions or discounts to retailers to incentivize them to stock NIVEA VISAGE Young
products. Finally, NIVEA should continue to focus on its distribution strategy to ensure that
its products are widely available and accessible to its target market.

X. ACTION PLAN

ACTIVITY DEPARTMENT AND PERSON TIME FRAME

INVOLVED

1. Conduct Market Research

Marketing Research 2 months
Department & Marketing Team
2. Develop a marketing mix
Product Development
Department, Pricing 3 months
Department, Sales and
Distribution Department,
Advertising and Promotion
Department
3. Launch the product

Advertising and Promotion 1 month

Department, Social Media
Marketing Team, Sales and
Distribution Department
4. Monitor Sales and Customer
Feedback
Marketing Research Ongoing
Department, Sales and
Distribution Department
5. Re-launch the product.

Product Development 3 months

Department, Advertising and
Promotion Department, Social
Media Marketing Team
6 Monitor Sales and Customer
Feedback
Marketing Research Ongoing
Department, Sales and
Distribution Department

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 DOCUMENTATION

MARCH 07,2023: GROUP CHAT CREATED

MARCH 11,2023: FIRST MEETING WERE HELD ONLINE

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MARCH 12, 2023: ASSIGNED WORKS WERE DISSEMINATED.

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MARCH 16,2023: LAST BRAINSTORMING AND MEETING ARE HELD @ BSAU

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