Marketing Assignment

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INTRODUCATION Nivea is a global skin – and – care brand, owned by the German company Beiersdort. The company began in 1911 when Beiersdorf developed a water – in – oil emulsifier as a skin cream with Excerpt, the first stable emulsion of its kind. The company’s owner, Oskar Troplowitz, named it Nivea, from the Latin word niveus/ nivea/ niveum (meaning snow – white). During the 1930s, Beiersdort began producing products such as tanning oils, shaving creams, shampoo and facial toners. The trademark “Nivea” was expropriated in many countries following World War ll. Beiersdorf buying back the confiscated trademark rights in 1997. Internationalisation during the 1980’s propelled the Nivea brand to a wider global market.

Transcript of Marketing Assignment

Page 1: Marketing Assignment

INTRODUCATION

Nivea is a global skin – and – care brand, owned by the German

company Beiersdort. The company began in 1911 when

Beiersdorf developed a water – in – oil emulsifier as a skin

cream with Excerpt, the first stable emulsion of its kind. The

company’s owner, Oskar Troplowitz, named it Nivea, from the

Latin word niveus/ nivea/ niveum (meaning snow – white).

During the 1930s, Beiersdort began producing products such as

tanning oils, shaving creams, shampoo and facial toners. The

trademark “Nivea” was expropriated in many countries

following World War ll. Beiersdorf buying back the confiscated

trademark rights in 1997.

Internationalisation during the 1980’s propelled the Nivea

brand to a wider global market.

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OVERVIEW

28. The company Nivea originated from Poland and was bought

by German 1882 – Pharmacist Carl Paul Beiersdorf establishes

the company on March investors. The data of the patent

document for the manufacture of medical plasters is taken as

the date of the company’s formation.

1890 – Pharmacist Dr. Oskar Troplowits takes over the

company.

1892 – The first international cooperation agreement is

concluded with US trading company Lehn & Fink for

the USA.

1900 – Patent application for Excerpt, an emulsifying agent.

Excerpt is the basis for Euchring and, later on, for NIVEA

Crème.

1906 – The first overseas branch is established in London.

1911 – NIVEA Crème – the first stable water – in –oil emulsifier

– is introduced. The emulsifying agent Excerpt is made

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lanolin, found in sheep’s wool, and is the key to NIVEA

Crème’s unique properties.

It is said that the main ingredient of Helena Rubinstein (HR)

product also comprises sheep’s wool is Australia.

1918 – The DEATHS OF Oskar Troplowitz and his partner Otto

Hans Mickiewicz result in the formation of a stock corporation

(limited company) on June 1, 1922.

1922 - Willy Jacobson takes over as Chairman of the Executive

Board of the newly formed stock corporation. The first self –

adhesive plaster is introduced under the name Hansaplast

1925 – NIVEA is relaunched in blue packaging. The new design

and communication lead to the crucial breakthrough for the

NIVEA brand. The distinctive blue and white tin starts its

successful history.

1933 – Under the pressure of National Socialist propaganda,

the Jewish members of the Executive Board step down. Willy

Jacobson, the former Chairman of the Executive Board, heads

the foreign affiliates from Amsterdam until 1938.

By adopting a policy of “honourable tactics”, the Beiersdort

Executive Board, under the leadership of Carl Clauses,

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succeeds in steering the company through the Nazi period

despite a large number of malicious campaigns by competitors.

Although Beiersdort retains its own business culture, it must

still cooperate with the regime.

1945 – At the end of the Second World War, a majority of the

Hamburg production plants and administrative buildings have

been destroyed.

1950 – ph 5 Euchring is launched on the market. This

innovative ointment focuses on the importance of the skin’s

own natural protective acid barrier in maintaining good skin

health.

1951 – The first deodorizing soap is introduced under the name

of 8x4. The brand is extended into a product family during the

1950s and 1960s.

1955 – Beiersdorf launches a protective hand cream on the

market under the name of atria.

In 1956, a customer claimed that using a Nivea product had

dissolved his/her hair and caused it to fall out. The claims were

dismissed within weeks.

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1963 – NIVEA milk – liquid NIVEA Crème in the form of a water

– in – oil emulsion – is introduced “for all – over body care”.

1973 – The images in the “Only Me” NIVEA advertising

campaign illustrate how NIVEA Crème optimally bundles all

aspects of skincare into a single product. The campaign defines

the looks of NIVEA Crème advertising in the 1970s and 1980s.

1989 – Change of strategy: start of the implementation of a

strategic reorientation process focusing on the core

competencies of skin care, wound care and adhesive

technology.

1991 – Acquisition of the la prairie brand. The company

originated in the famous La Prairie clinic in Monteux,

Switzerland.

1992 – Launch of NIVEA’s BLUE HARMONY advertising

campaign, which is still running today. It adapts to the current

spirit of the times with emotionality.

1995 – Acquisition of the FUTURO brand. The company was

founded in Ohio, USA in 1917 by Georg Jung, a German and

produced bandages right from the start. The “Future” brand

with its black and yellow packaging was born in 1936.

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2001 – The new strategy enables Tessa to become an

independent affiliate. Tessa AG is formed as a wholly owned

affiliated of Beiersdorf, enabling it to react more flexibly to

consumers and industrial customers.

Professional wound care is spun off in line with the new

strategy and contributed to a joint venture between Beiersdort

and Smith & Nephew. BSN medical, domiciled in Hamburg, is

founded.

2002 – Florida becomes a wholly owned Beiersdoft subsidiary.

The cooperation dates back to 1989 and was intensified

following the reunification of German.

2004 – The new skin research centre opens in Hamburg,

underscoring the innovative strength of the globally successful

Beiersdorf group.

2009 – It is rumoured that Nivea are set to launch their latest

and most revolutionary advertising campaign in mid – 2009. A

spokesperson for the company has allegedly stated that movie

star Robert Patterson will be the new face of Nivea.

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FINANCIAL STATMENT

Beiersdorf, the German based cosmetics giant and owner of the

Nivea brand, has reported second quarter results that have

exceeded analysts’ expectations, as sales rose nearly 6 per

cent.

The second quarter marked an improvement in the company’s

first quarter performance in which sales had been largely flat.

For the quarter ending June 1.19 billion in 2004, to reach 1.26

billion for this year.

For the full six month period sales grew from 2.36 billion in

2004 to reach 2.43, a rise of 3.0 per cent, including

adjustments for currency chances.

The increase in sales was also reflected in the EBITDA operating

results, which was up 11.4 per cent for the quarter, from 157

million. For the six month period was up 7.6 per cent to reach

357 million.

Analysts said they were encouraged by the results beat their

expectations. Shares in the company have risen 3 per cent on

the previous week to 96.11 as a result.

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The performance has come despite sluggish economies in

many of Beiersdort’s key European markets, and in particular

the domestic market, where the economic woes have curbed

consumer spending. However, the company managed to buck

the trend in Germany, achieving a sales increase of 2.5 per

cent, despite the flat personal care market there.

In the European markets the picture was more mixed. Eastern

Europe returned to digit sales growth, after a difficult 2004, but

sales in Western Europe rose just 1.0 per cent, reflecting

restrained consumer spending across the board. Spain and

Belgium were earmarked as showing strong growth, but the

Nordic countries, France and Switzerland were weaker than in

the first half of 2004.

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MARKETING STRATEGIES

The NIVEA FOR MEN team devised marketing strategies to

deliver its objectives. These strategies set out how the

objectives would be achieved within the designated budget set

by the management team.

This focus on product development combined with reason an

emphasis on consumer needs is a key differentiator for NIVEA

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FOR MEN. It is a major reason why in the UK the brand is still

the market leader in the male facial skincare market*.

Another cornerstone of the UK marketing strategy for the re-

launch was promotion. NIVEA sought to build on and develop

the approach it had used in the past. In the 1980s advertising

in men’s style and fashion magazines along with product

sampling was a major promotional tool. In the 1990s, the

company used radio, television and press advertising together

with sampling. Since 2000, there has been a greater emphasis

on consumer needs and an increasing use of experiential

activities in the promotional mix. Experiential marketing is

about engaging consumers through two – way communications

that bring brand personalities to life and add value to the target

audience. This helps build an emotional connection between

the brand and the consumers.

It is important to get the promotional balance right. NIVEA FOR

MEN promoted the new launches of its products through a

mixture of above – the – line and below – the – line promotion.

The use of sport was a key element here. NIVEA FOR MEN

supported football events at a grass – roots level through its

partnership with Power league to build positive relationship

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with men. This helped create stronger brand affinity for NIVEA

FOR MEN among men. It also allowed the brand to build and

maintain a consistent dialogue with men, which helps to drive

sales. Above – the – line promotion included television and

cinema adverts, which reached a wide audience. By using links

with sport, NIVEA FOR MEN aimed to build a positive male

image associated with male facial skincare. The brand also

benefited from press advertorials in popular men’s magazines,

making the daily usage of their products more acceptable.

Promotions were used to attract new customers. For example,

the distribution of free samples encourages trial of NIVEA FOR

MEN products which drove purchase. These promotions have

helped build up brand awareness and consumer familiarity

which reinforce the NIVEA FOR MEN brand presence. There is a

dedicated NIVEA FOR MEN website to support its products and

provide information to educate men on their skincare needs. To

enhance the brand a tool called a ‘Configuration’ was created

on the website to help customers specify their skin type and

find the product that best suits their needs.

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OBJECTIVES

A successful marketing plan relies on setting clear and relate

directly to the business overall aims and objectives. In other

words, the marketing plan must fit with the overall company

strategy that is set out in the business plan. Beiersdorf states

its goals as’… to increase our market share through qualitative

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growth. At the same we want to further improve our sound

earnings performance so that we can fulfil our consumer’s

wishes and needs with innovations today and in the future. This

will give us a strong position within the global competitive

environment.

The marketing team set SMART objectives for the NIVIE FOR

MEN re – launch. These are Specific, Measurable, Achievable,

Realistic (given the available resources) and Time constrained

(to be achieved by a given date). The marketing team used

research data to forecast market trends over the next three –

to – five years. This helped them set specific targets for

increasing sales, growing market share and improving its brand

image.

Beiersdorf wanted to increase its UK market share for NIVEA

FOR MEN, but also wanted greater market penetration for male

skincare products. In other words, it wanted not just a greater

share of the existing market; it wanted to expand that market.

It wanted more men buying skincare products. One key aim

was to more men from just considering skincare products to

making actual purchases. It also aimed to sell more male

skincare products to women. Research had indicated that

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women were often the initial purchaser of skincare products for

men. NIVEA FOR MEN used this key fact as a way to increase

opportunities for sales. Another objective was to develop the

NIVEA FOR MEN brand image. The NIVEA brand has always

stood for good quality products that are reliable, user – friendly

and good value for money. The brand’s core values are

security, trust, closeness and credibility. These values would be

strengthened and expanded on with the re – launch, to get

more men and women to think of NIVEA as first choice for

skincare.

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I am agree with each stage has been managed in Beiersdorf

Corporation. Because is it a cosmetic product, an organization

focus to both female and the male product but Beiersdorf more

focus to male product to build and maintain a consistent

dialogue with men. Beiersdorf also produces well and services

that satisfy the requirements efficiently and effectively to the

customers orientation. Beiersdorf are made understanding the

customer target and what customer need, so that can create a

product values and remand the value can be benefit. So that

Beiersdorf Corporation are practicing to develop of the new

marketing plans to respond for the creating a value marketing.

Beiersdorf also follows all the rules that government give

to the company. For example, Beiersdorf not use any animals

to do the cosmetic product or test on animals. By using the

management cycle, Beiersdorf can manage the challenges with

the competition. The management cycle is planning,

organizing, directing and controlling. This every management

cycle is important and very useful for the Beiersdorf Company.

It makes the jobs become more easily. For the example,

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Beiersdorf create new product with new idea and come out with

new creation and development their product around the world.

Year by year, Beiersdorf develop their product and they

level. The Beiersdorf Company come out with popular men’s

magazines, making the daily usage of their products and

increase the sales. Under the management they make a

planning and make some target to earn minimum of European

1.2 billion for this year. Beiersdorf Company has further

development in future.

However, Beiersdorf also practice some rules. For example

all Kat’s skill educated to the employees. Because they belief

that this Kat’s skill educated and motive the employees and

produce ideal of employees. The skills are technical skills,

human skills, and construal skills. The technical skills very

important because the employees have to create new logo or

new creativities by use computer. Human skills also important

because without human skills, Beiersdorf can’t develop the

sales. The capability of the Beiersdorf employees will

mostivate and educated by using this skills. In additionally,

Beiersdorf giving the best practices, studies and skills, research

and training programmers to the employees.

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Beiersdoft face many problems when the World War II. These

problems are May not challenges for Beiersdorf. Beiersdorf

open the first branch in London and now Beiersdorf branch in

Asia and other country. In the 1917, the FUTURO brand

Company was found in USA nut the company not so successful

and the company go under Beiersdorf because Beiersdort

become global company and the FUTURO Brand Company can’t

develop as Beiersdorf Company.

Beierdorf Company have their own marketing strategies.

The two strategies is to improve the formula of the products

and to extend the NIVEA FOR MEN product range. The

Beiersdort come out with men product because men not take

care about their face but NIVEA FOR MEN aimed to build a good

and positive male image associated with male facial skincare.

This is one of the successful products in UK. Beiersdorf also

have it own Skin Research Centre. They also have own website

to help customers specify their skin type and find the product

that best suits their needs.

They also give free samples encouraged trial of NIVEA FOR MEN

products which drove purchase. These promotions have helped

build up brand awareness and customer familiarity which

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reinforce the NIVEA FOR MEN brand presence. The company

also continues to successfully exploit the Nivea brand with the

new Nivea Sun Series and the Nivea Deo Pure both proving

successful in Europe.

I alternatively approaches and suggest in management

cycle is planning. Because, planning is a set up firms goals plus

and the way to an accompling the objects. Without planning

this Beiersdorf cant success. Planning also setting an

organization to high level and low level jobs and to an achieve

the objective. Planning is way to make the job become easier

coordinate and helpful. It’s also preventing the conflict between

the company and the employees. By the planning, a manager

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easily can respond on controlling, organizing and directing.

Without planning, we don’t be success in any fields.

Because manager is responsibility to carry out the

management process to become reality and success. In

additionally, without the planning the company can’t make any

sense of marketing plan. Planning also can be key of the

success and approached objective of the company. The

Beiersdorf Company become their first products such as

tanning oils, shaving creams, shampoo and facial toners but

now the Beiersdorf company have many products such as baby

product, body lotion, lip blame and etc. Year by year, they have

planning to achieve the marketing strategies to give something

new things for men’s

So far they make a planning to face all challenges to be

successful company compare to other company. They have

many competitor company but they planning all things and

become successfully company today. So from my own option,

suggest planning is rolling and coordinating the job and the

work of employees easily.

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Secondly important function I suggest is controlling.

Controlling is an art more than science but not easy work to be

manager. Controlling is monitoring the organization progress

towards the objective and taking corrective action toward the

achievement. Something we can make some mistake, by this

controlling, we can correct our mistake and it will help us to

learn from the mistake.

Controlling is the job function of the manager to control all

function of the his or her department

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