Example-:: Nivea

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Introduction

The fragrance and perfume industry is quite interesting when you look at the
numbers it generates every year. To become a major challenger in the market,
you will have to consider these insights and plan your entry strategically.

In this guide, we are going to talk about different customer segmentation for
the fragrance industry and help you to figure out the recent trends in the
market. So, let’s cut to the chase, and get started!

In this post we are going to discuss:

1. Key Consumer Insights of Fragrance and Perfume Market in 2020


2. Fragrance and Perfume Market Key Segmentation
3. Segmentation by Usage
4. Segmentation by Type
5. Segmentation by Distribution Channel
6. Segmentation by Geography
7. Key Players in the Value Chain
8. Conclusions

Example-:
Nivea
In 1911 the German consumer goods company Beiersdorf brought the now very famous skin
cream named Nivea onto the market. Nivea has now grown to be one of the biggest skin care
brands in the world, selling products in some 150 countries. The Nivea brand encompasses a
wide range of body care products. Its assortment includes baby care, bath care, body care,
cosmetics, deodorants, face care, hair care, hair styling, hand care, lip care, mature skin care,
men’s care and sun care.

Nivea has clearly been successful in creating strong attributes which people associate with the
Nivea product and especially with the blue tin and its white capitals. Nivea has created the image
of being genuine, environmentally friendly and offering good quality at a reasonable price.
Offering a wide range of products and serving all generations it suggests being an ideal choice
for the entire family.

In order to analyse how Nivea has achieved this position in consumers’ minds, this essay will be
looking at the marketing mix and how Nivea has dealt with the four P’s.
Product
The Nivea product is generally a product of good quality. However different the range of Nivea
products may be they all embody gentle care for all generations. To ensure this certain quality
standard research and development becomes an important issue. On their webpage it is indicated
that over 150 dermatological and cosmetic researchers, pharmacists and chemists are constantly
working to improve established products and come up with new ones. Especially with the
product line Q10, which involves anti-skin aging and anti-cellulite products, Nivea strives to
proof its dermatological expertise.

Price
On their webpage Nivea claims that their products are of a quality level that some competitors
offer for ten times the price. Here we clearly see that Nivea goes for the strategy of positioning
their products as being of quality at affordable prices (“More for the same”). This is coherent
with the idea of Nivea being the perfect choice of the whole family. Caring mothers and fathers
who want to provide their families with good quality products can still afford doing so by buying
Nivea skincare. This goes along with the fact that discounts on Nivea products are often found
(see Boot’s current offer of buying three Nivea deodorants for the price of two). In terms of price
Nivea products always appear competitive with brands, such as Dove, Johnson & Johnson or
Labortoire Garnier, which may be situated next to them in the shops. However, among these the
brand takes care that it does not appear to charge less so that the image of being a quality brand
remains believable for customers.

Place
Nivea products are virtually found everywhere. They are located on the shelves of high-status
retailers, like Boots and Lloyd Pharmacy in line with EL’VITAL or Pantene. But they are also
found in supermarkets, such as Co-op, or discount pharmacies, such as Schlecker, next to the
shop’s own cheap brand.

Through this distribution strategy Nivea appears as a brand that is easily available for all kinds of
people and of course all kinds of families who care for good quality, whether they buy at Boots
or Schlecker.

Promotion
Nivea adverts are found in all kinds of magazines and newspapers, on television on all channels
at regular intervals. It is through these adverts that the image is mainly conveyed. It is an image
that suggests family values, standing for health and genuineness and communicating this “close
to touch” human togetherness. Smiling faces of genuine looking people of all generations, from
babies over teens and young parents to 60 year-olds, help bring this message across.

Chanel
The founding of Chanel goes back to the year 1910 when Gabrielle “Coco” Chanel opened her
first shop under the sign “Chanel Modes” in Paris. Since than it has grown to be one of the
world’s most prestigious luxury brands for fashion, fragrances, beauty and skincare and was
reported to have an estimated sales figure of nearly $ 2 billion in 1995.

The brand Chanel is profoundly associated with its famous founder and her audacious
femininity. World class designer Karl Lagerfeld helps keeping up the haute-couture- image. The
brand Chanel is perceived as a brand of luxury, perfection and uniqueness.

This essay will now be looking at Chanel’s marketing mix in order to analyse how the brand has
achieved that particular position in the minds of consumers. Taking its brevity into account this
essay will be concentrating only on Chanel’s skincare and cosmetic products in doing so.

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