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Research Methodology

Team 4 - Introduction

RavikumarAmarAsifShivkumarKeerthanVichitra

Topic: Case Study

Nivea: Marketing Research Leads to Consistency in

Marketing

History of Nivea• Nivea is a German brand marketed in India by NIVEA India Pvt. Ltd.

• NIVEA India Pvt. Ltd, owner of the No.1 skin care brand in the world, started

operations in India in 2006, as a 100% affiliate of the global cosmetics &

toiletries giant Beiersdorf AG

• The Nivea brand, has been present in India for about 40 years but the

subsidiary was set up only in 2006.

• This brand has a history of around 100 years. Nivea came into existence in the

year 1911.

Video

Facts of the Case• Nivea skin care products are part of the German

company Beiersdorf.• As of 2006, the company’s line of skin products is

marketed in about 100 countries• Nivea skin care was the first product line which

introduced the skin cream that did not separate into water and oil.

Cont…..

• The main reason for the company’s success is the marriage of marketing and research development within the company.

• They ensure the quality through constant testing and consumer feed back obtained via marketing research.

• Nivea began marketing in the 1920’s.• They changed their logo and their after started selling

their product around the world.

Cont…..

• The main reason for the company’s success is the marriage of marketing and research development within the company.

• They ensure the quality through constant testing and consumer feed back obtained via marketing research.

• Nivea began marketing in the 1920’s.• They changed their logo and their after started selling

their product around the world.

Cont…..

• In 1924, they broke from tradition of advertising with Nivea girls and began advertising with the Nivea boys.

• This ad helped them build strong customer relationship and values

• In the 1970s Nivea faced competition for the first time. To overcome this they relied heavily on marketing research, which helped them formulate a two-pronged strategy.

Cont…..

• The first strategy was using of new advertising campaign called Crème de la Crème and the second was the introduction of new product.

• In the 1980s, Nivea began branding with sub brands i.e. use of umbrella stratergy.

• They dint wanted to dilute the brand name and wanted to link the new brands with the traditional values of core brand

Cont…..

• Nivea was able to continue their success in the 1990s as their sales grew rapidly throughout the decade.

• The most successful products were their anti wrinkle cream and an entire line of cosmetics.

• Nivea entered the new millennium has the number one skin care and cosmetic company in the world with $ 2.7 Billion in revenues.

Cont…..

• Their greatest challenge is in the U.S. market, where their brand is not as strong as it is in other parts of the world.

• The U.S. market is the largest and most dynamic market in the world.

• Nivea hopes to over come these obstacles through the use of extensive marketing research.

Cont…..

• This will lead Nivea to conduct more product launches and to develop focused marketing strategies.

• Nivea focuses on consistency in their marketing because it can be troublesome for them to communicate the same message across various cultures.

• Nivea believes that maintenance of this consistency will give them an edge over competitors

1.Nivea would like to increase its share of U.S.market. Define the management problem

• Most largest and dynamic market in the world and there brand is not as strong as in other parts of the world. (increase the market shares )

• Increase the brand value.

2.Define an appropriate marketing research problem based on the management decision problem you

identified in question 1.

• Marketing research problem is to determine consumer preferences for nivea skin care and cosmetics

• What criteria do consumers use for evaluating skin care.

• How do consumers evaluate various brands of skin care and cosmetics in terms of choice creiteria

3. Nivea would like to undertake research to understand the preferences of American consumers for skin care product. What type of research design

should be adopted and why?

• 1.Exploratory research (qualitative research for behavior of people)

interviewing focus groups (men and women of America)

2.descriptive research (who , when, where and how uses the skin care)

3. casual research (test marketing can be done on skin care effect after use)

4.Discuss the role of qualitative research in understanding the preferences of American

consumers for skin care product , Which qualitative research techniques should be used and why?

• 1.motivation research (motives, desires). behavioral sciences (likes and dislikes).

5.If a survey to be conducted to understand the preferences of American consumers for skin care

products. which survey method should be used and why?

• 1.Communication approach (personal interviews, telephone, mail or computer or using combinations of these)

6.Develop Likert, Semantic differential, and staple scales for determining consumers evaluation of foreign skin care products

• Likert scale:• Nivea skin care products are effective.

1.Strongly Disagree2.Disagree3.Neutral4.Agree

5.Strongly agree

Semantic deferential scale

• Effective _ _ _ _ _ _ _ Not Effective

Staple Scale :Nivea skin care Producta are

effective.

+5 +4 +3 +2 +1 Effective -1 -2 -3 -4 -5

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