Introduction

NIVEA is one of the family of brands owned by Beiersdorf, the international skincare company. The range targets different market segments to meet individual consumer needs. A segment is a slice or smaller part of a market. Each segment contains consumers with similar tastes. NIVEA products range from female face and body products to men's shaving gels, deodorants and sun care lines. This case study looks at how NIVEA uses market segmentation to ensure the success of its sun care products.

Product Segments

The three main ways in which the sun care market is segmented reflect the reasons why people buy sun care products:

• Protection - NIVEA Sun provides products that enable people to protect themselves from the harmful effects of the sun. It is the market leader by value in this segment*. This segment can be further sub-divided according to skin type and location (both factors will affect the level of protection needed).

• After Sun - this is a rapidly expanding market segment.

• Self-tan - tanning products used for cosmetic appeal.

Brand vision

NIVEA Sun's brand vision is 'To be the number 1 brand in the UK sun care market in penetration, sales and likeability'. Penetration means how many potential consumers in a segment actually purchase and/or use the brand; sales are measured by value or volume and likeability refers to whether the brand is enjoyed. NIVEA strives for the vision by continually segmenting consumer markets.

Consumer segmentation

Markets are segmented by certain factors. Two important ones are demographics, referring to the different characteristics of populations, and attitudes, referring to why people buy products. Market research was used to identify different types of users. People were asked when they used a sun care product (e.g. holiday, garden, sports) and why. The first relates to the Sun Protection Factor (SPF) required, the second to the type of product (e.g. a spray or a product for children). There are five main types of buyer:

• Concerned consumers have protection as a priority;

• Sun avoiders, who prefer to stay out of the sun rather than protect against it. This segment needs to be convinced by easier to use products.

• Sun lovers are consumers who adore sunshine and know about protection. These consumers will show loyalty to a brand they trust.

• Careless tanners - like the sun but don't protect properly.

• Beauty conscious - want a good sun tan, know protection is important, but don't really understand about SPF's.

Brand strategy

The brand is based on the key proposition of protection. It also concentrates on making sun care simple and educating about the dangers of sun. Product launches have therefore included spray products that are easy-to-apply (aimed at men), coloured products to be more fun (aimed at children) and products offering better protection. The education message is reinforced through advertising and a school educational programme. A 'Sun Sense' primary school pack goes out to 10,000 teachers each year.

Conclusion

By knowing about its market segments, NIVEA Sun can successfully target them. Segmentation enables NIVEA Sun to stay as the Number 1 protection and after sun brand in terms of value sales in the UK*.

* Source: IRI (HBA Outlets, value sales, 52 W/E 24 Dec, 2005)