Introduction

NIVEA is a well-known brand made by Beiersdorf, a global company specialising in skin and beauty care. Beiersdorf aims to delight its consumers with new skin and beauty products. This focus has helped it to grow NIVEA into one of the largest skin care brands in the world. Market research showed there was a gap in the market for a beauty range aimed at young women aged 13-19. NIVEA VISAGE Young helps girls into a proper skin care routine to keep their skin looking healthy. NIVEA VISAGE Young was launched using a balanced marketing mix (the ‘four Ps’). This is a mixture of the right product, price, place and promotion.

Product

Beiersdorf used market research to understand what its target market wanted. It used: 

• focus groups; 
• direct contact with the market
• product testing.

It found that teenage girls wanted face care that was not medicated. They wanted a beauty product, not one for skin problems. The product connects the teenage and the adult market. After research, the product and its packaging were improved. In line with Beiersdorf’s Corporate Responsibility programme, some changes reflect a concern for the environment. This approach aims to:

• reduce packaging and waste by using larger pack sizes
• use more natural products like minerals and sea salts
• make containers more recyclable.

Price

Pricing may include: 

• cost-based price - covers costs plus profit
• penetration price - set low to ensure a high volume of sales
• skimming price - set high for a new, unique product.

On re-launch the price was slightly higher than before due to the improved range. The price needed to be attractive to the target market and give value for money.

Retail outlets also use other pricing strategies:

• loss leader: selling at less than cost to attract volume sales
• discounts: sales and special offers.

Place

Place is where a product is sold and how it arrives there. The main channel for NIVEA products is retail outlets. 65% of sales come from high street shops such as Boots and Superdrug. The other 35% comes from large chains, such as ASDA and Tesco. Many buyers are mums, buying for teenage daughters while out food shopping. Beiersdorf uses a central distribution point in the UK to reduce transport effects. This helps the environment.

Promotion

This is how the business tells customers about products and persuades people to buy. It is:

• above-the-line - directly paid for, such as TV adverts 
• below-the-line - using other methods like events, trade fairs, direct mail and the strength of the brand.

NIVEA decided not to use above-the-line routes, but to talk straight to the target market. It used newer channels to help teenage girls identify with the product:

• product samples, giving a million away at events or through its website
• its own online magazine (FYI – Fun, Young and Interactive)
• pages on social network sites such as MySpace, Facebook and Bebo.

Conclusion

NIVEA VISAGE Young is designed to enhance the skin rather than being medicated to treat skin problems. It has a clear position in the market. To bring the range to market, Beiersdorf put together a balanced marketing mix.