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- Álvaro Alonso, General Manager at Nivea
Nivea produces high-quality products which are accessible to its consumers irrespective of where they live. Nivea listens carefully to its customers in the product development phase. It pays close attention to fluctuations in trends as more and more people take an interest in their health and appearance, in part due to the impact of social media.
NIVEA has never relied on past successes. It continuously improves its products and develops innovations at a globally leading skin-care research and development center. "
- Beiersdorf, 2019
Nivea's R&D team worldwide develops and segments products that fulfil regional customer needs. In Asia, for instance, Nivea offers a variety of products to prevent unwanted tanning. In Latin America, products with a natural tone are very popular. This product helps maintain natural skin tone, which can be affected by ageing, dryness, and exposure to the sun.
The core values of Nivea
Nivea is a firmly-established brand in the skin and body care industry. It is one of the brands manufactured and sold by Beiersdorf. Beiersdorf was found by a pharmacist named Paul C. Beiersdorf in 1882 and has grown globally with a specialisation in skin and beauty care. Nivea's success story started in Hamburg in 1911 with the first-ever oil-based moisturising cream being manufactured on an industrial scale. Nivea has become the largest skin care brand globally with a presence 179 countries.
Nivea is recognised as trusted, reliable, and accessible. It has positioned itself as a 'soft care' and 'well-being' brand.
We have four core values that guide everything we do at Beiersdorf. These are CARE, SIMPLICITY, COURAGE, and TRUST - these apply to the way we run our business, the way we treat our employees, and the way we want our colleagues to treat one another."
- Beiersdorf.com
These four core values guide and shape the way the company operates from a marketing point of view as well.
Nivea market segmentation, targeting, and positioning
Initially, Nivea offered products for women. It then repositioned itself and introduced products for men called Nivea Men. As a result of its marketing campaigns, Nivea Men became successful. Nivea creates specific market segments that fulfil customer requirements.
Segmentation happens when a market is divided into sub-segments that respond in similar ways to marketing activities.
There are many advantages of niche, segment marketing compared to mass marketing.
Geographic segmentation
Segmentation by region: For example, Nivea might segment the market for roll-on deodorant in regions with a warmer climate.
Segmentation by city: the use of roll-ons is higher in cities than in the countryside, this may be because of factors like income levels and product awareness.
Demographic segmentation
Segmentation by age: for instance, the level of roll-on use may simply relate to age groups. For instance, teenagers might need a stronger deodorant compared to older people.
Segmentation by gender: Nivea has recognised gender as a key factor in the segmentation of its products. Men and women often have different needs. Women tend to have a preference for mild, floral, and refreshing scents, whereas men tend to like heavier, stronger, and distinct fragrances.
Based on market segmentation, Nivea has examined the needs of its customers and has opted to target three major markets. Their main target markets comprise Asian countries in the tropical and equatorial region, the teenage to the young adult market, and the market for men.
Take a look at our explanation on segmentation to find out more about the various ways consumers can be segmented.
Target groups
The demand for roll-on deodorants is higher in the Asia compared to other regions because of climate.
The teenage to young adult market is lucrative. It covers the 15-24 year age range. This target market is largely made up of students or graduates who need affordable products, which Nivea offers.
Consumer groups based on gender (men/women) and age (baby boomers/millennials) have been segmented by the company in order to offer products tailored to their life stage.
To revise the concept of targeting in marketing, take a look at our explanation on market segmentation, targeting, and positioning.
Positioning
Nivea has established a reputation (position) as affordable and good value for money.
Nivea is one of the top brands in the personal and skincare industry. Their innovation, research expertise, and marketing are the reasons for its success. The brand's close attention to the needs of its customers allows it to offer products tailored to specific market segments.
Nivea Market Segmentation - Key takeaways
Beiersdorf was founded by a pharmacist named Paul C. Beiersdorf in 1882.
Nivea is one of the brands from a variety of brands manufactured and sold by Beiersdorf.
Nivea is a famous brand in the skin and body care industry.
Nivea's success story started in Hamburg in 1911 with the first-ever oil-based moisturising cream.
The brand Nivea has come to signifiy high-quality products which are accessible to its consumers irrespective of where they live.
Nivea's R&D team worldwide develops and segments products that fulfil the various regional requirements of the customers.
Nivea's core values are care, simplicity, courage, and trust.
Initially, Nivea offered and marketed products for women and later repositioned itself to offer men's products as well.
Nivea's market segmentation consists of geographic segmentation (region and cities) and demographic segmentation (gender and age).
Nivea's target markets include Asian countries in the tropical and equatorial region, the teenage to young adult market, and the market for men.
Nivea has established its current position as affordable and value for money.
Sources:
CEO magazine, https://ceo-na.com/executive-interviews/diverse-solutions-in-the-skin-market/
Beiersdorf, https://www.beiersdorf.com/~/media/Beiersdorf/newsroom/media-and-downloads/press-texts/2019/Beiersdorf_2_NIVEA_en_2019.pdf?download=true
Marketing91, https://www.marketing91.com/marketing-strategy-of-nivea/
Greenontheinside, https://www.greenontheinside.net/nivea-marketing-strategy-essay-example/
Cosmeticdesign-europe, https://www.cosmeticsdesign-europe.com/Article/2020/06/03/Nivea-most-chosen-beauty-and-personal-care-brand-in-Europe-says-Kantar
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Frequently Asked Questions about Nivea Market Segmentation
What is market segmentation?
Segmentation happens when a market is divided into sub-segments that respond in similar ways to marketing activities.
What is an example of market segmentation?
An example of market segmentation is Nivea might segment the market for roll-on deodorant in regions with a warmer climate.
What is NIVEA's marketing strategy?
Based on market segmentation, Nivea has examined the needs of its customers and has opted to target three major markets. Their main target markets comprise Asian countries in the tropical and equatorial region, the teenage to the young adult market, and the market for men.
What are the marketing strategies adopted by NIVEA?
Marketing strategies adopted by Nivea are:
- Nivea's R&D team worldwide develops and segments products that fulfil regional customer needs.
- Initially, Nivea offered products for women. It then repositioned itself and introduced products for men called Nivea Men.
- Nivea has established a reputation (position) as affordable and good value for money.
How do you identify market segments?
Market segmentation consists of geographic segmentation (region and cities) and demographic segmentation (gender and age).
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