PRODUCT MARKETING REPORT Table of Content Introduction ……………………………………………………………………………………………4 Market Performance ………………………………………………………………………………4 Latest Quarter Performance ……………………………………………………….............5 Australia Market .........................................................................................6 Competition …………………………………………………………………………………………...7 Nivea Range .................................................................................................7 Major Competitors in Market ......................................................................8 Principles of Marketing .............................................................................9 Product ...................................................................................................9 Health Benefits of Product ........................................................................10 Practical Benefits of Product .....................................................................10 Place .......................................................................................................10 Price ........................................................................................................11 Promotion ...............................................................................................12 Different Techniques of Promotion in Store ..............................................12 Customer Profile ........................................................................................13 Health and Beauty Sector Trends and Performance ....................................14 Conclusion ..................................................................................................15 Bibliography ...............................................................................................16 Abstract Nivea has a 13.2% of share in face care product and 11.3% of share in hand/body lotion in the market of Australia against to its other near competitors (Roy Morgan Research, 2015). This report highlights the brand market performance, various promotion techniques in practice, its price as compared to its top competitors, placement of the product and different ways by which the Nivea access the marketing mix. Moreover, the report also covers the brand’s profile and also shows that how Nivea stands at number one position with Australian women by reflecting its market share at the national level and also reviews Nivea is one of the trusted brands in the Australian market. Introduction Nivea is a Europe based personal care brand originated basically from German and pursuits in health care sector especially on skin and body care. The brand is held by a Hamburg-based company known as Beiersdorf Global AG and was set up on March 28, 1882, through the pharmacist Paul Carl Beiersdorf. Actually the brand name Nivea is derived from the Latin word niveus/nivea/niveum, which means 'snow-white'. This marketing report will spotlight on products of Face care and hand/body care Moisturizers of Nivea being one of the largest brand in skin care in the world. The main focus is to draw an outline of the various marketing strategies in regards to the product. While drafting the product marketing report the Australian market will be kept into consideration specifically along with top leading participating supermarkets. Market Performance A survey held by A.C Nielson a marketing research U. S based company reveals that brand Nivea is found to be present in maximum number in terms of both countries and product categories. The survey is known to be named as ‘Global Mega-Brand Franchise. ’The survey uses the number of categories the product exists and countries with the availability of product as the major parameters for measuring the brand’s performance. After the result, the Nivea’s performance was known to be ‘Queen of Mega Brands’ as published in the article on yahoo.com. Nivea was called Queen of Mega Brands just because of its 14 categories of product range and also its handiness in more than 150 countries across the world. Nivea has an incredible range of product under two main streams; Personal care and skin care. Latest Quarter 2016 Performance As per the latest report by Beiersdorf, the Brand Nivea has a rise in group sales by 2.4% along with an increase in the consumer sale by 3.6% whereas there is a decline in tesa sales by 3.2% as compared to previous year due to business in Asia. As far as Australia, Africa, and Asia region is considered the sale has a rise of 7.3% whereas the Nominal sales has 1.8% rise on previous year sale of €429 million. Actually, Australia along with Thailand and Japan had made precise contributions towards this performance in terms of positive sales. Australian Market In the Australian market, major stockiest for Nivea range are Coles, Woolworth and Target whereas Chemist Warehouse, Big W, Cincotta Discount Chemist, Pharmacy Discount, Discount Drug Store, ePharmacy and Priceline pharmacy are being secondary stockiest in the list. Competition Roy Morgan Research (2014-2015) reveals that Nivea covers 13.2% of share in face care product and 11.3% of share in hand/body lotion in the Australian market and the list of competitor contain; Best-selling face-care and hand/body lotion brands among Australian women Source: Roy Morgan Single Source (Australia), April 2014 – March 2015 (n=9,201). Nivea Range Nivea has roughly sixteen types of products under four different product ranges; Express Hydration Body Lotion In-Shower Rich Body Lotion Skin Conditioner In-Shower Smooth Body Lotion Repair and Care Body Lotion Repair and Care SOS Hand Balm Irresistibly Smooth Body Lotion Irresistibly Smooth Body Soufflé Smooth Nourishing Hand Cream Rich Nourishing Body Lotion Pure and Natural Body Lotion Pure and Natural Hand Cream Firming Body Lotion Q10 Plus Q10 Rich Firming Body Lotion Body Contouring Cream Q10 Plus 4 in 1 Firming Body Oil Q10 Plus Anti-Age Hand Cream Nivea has a list of competitors in Australian supermarket primary being listed as follows: Olay – Being the first closest competitor being covering 12.1% market share in face care products and covering range consist of Facial Cleanser and Toner, Daily Treatment, Facial Moisturisers, BB & CC Cream. Neutrogena – Second closest competitor in the list having 5.7% market share in face care products with products falling under Acne, Natural Skincare, Cleansers, Facial Moisturizers. Dove – Covering 5.1% market share in face care products and includes Moisturizers with different skin tones and Cleansers. L’Oréal – Being last in competition in face care product and covering 4.9% market share and product including Serums, Masks, Cleansers, Moisturizers and Anti-Aging Moisturizers. Vaseline – Intensive care products having 9.1% market share and being the first competitor in hand/body products having lotions with different specifications. Avon – With 4.6% market share in hand/body products and includes Moisturizers, bath and body ranges. Coles and Woolworth – Includes the products in the economy range being efficient in cost as compared to Nivea basic range of Products. Marketing Principles Product Nivea Brand is innovative and compelling; appealing in two forms as white font on a blue background and blue font on a white background. The product is being used for face care and hand/body care and it is one of the essential parts of human survival to take care of his or her skin from inside and outside. Some of the benefits of Nivea product range comprise; Health Benefits Practical Benefits Protect skin Different ranges for different skin type Smooth Skin Kids safe Soften Skin Easy to use packaging Hydrated Skin Easy to apply Radiant and Glowing Skin Availability of Travel packs Fights Aging Helps to look and feel Younger Prevents Flaking and dullness Relieves Stress Protection against sunburn Nivea Brand aims at improving regularly and making a better life today and tomorrow. Place The place is one of the key component in Marketing mix as the wrong choice of distribution channel will lead to abnormal losses to form. Place, in other words, referred to a point of sale. Getting the product at the right place at right time is of utmost importance. Channel intermediaries play a very crucial role in the distribution process. So one must invest adequate time, money and efforts in a selection of right distribution channel. The Nivea product range is kept under Health and Personal Care Section and promotion of the products helps the customer to know where the product is available in the supermarkets. Sometimes the product range is offered at a special price under the special attractive area in the supermarkets. The reason behind choosing these supermarkets is to reach end consumer without the involvement of much intermediaries. Moreover, these supermarkets are easily accessible and more preferred by consumers. Price As far as NIVEA’s range of products is considered it is always determined by outstanding quality available at affordable prices. From the very beginning, the main focus of the NIVEA’s is to make the availability of its products reachable and economical for each and every one (Beiersdorf AG, 2011a, p.89, and p.133). If we see the background we can see that in the beginning period of NIVEA, retailers were not at all allowed to offer any sought of discounts, as it was decided that NIVEA Cream will be accessible at the one fixed price for the same volume of quantity everywhere (Beiersdorf AG, 2011a, p.39). As per above information, it can be concluded that Nivea is behind the strategy based on value pricing and thus mounting the selling prices in agreement with the perceived values of the product (Mohammed, 2005). With no clear information on the strategy of the pricing available for Nivea a quick glance at the products pricing of different supermarkets was done and it has been revealed that Nivea product range is priced roughly between $7-$20 within the Australian supermarkets excluding any promotion and sale in existence. PROMOTION A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. Promotion is simply a way to induce customers towards products offered instead of that of competitors. Promotion is therefore a great advantage for both the company as well as the consumer. In terms of promotion Nivea use different promotion strategies specifically that imitate the lifestyle of target audience like Displays in supermarket catalogues, leasing advertisements, print media, television, discounts, free samples, half-price sale offer, buy two get one free offer etc. in order to address the targeted customers with the essential knowledge of the product which is beneficial for them and diverting their minds to buy Nivea’s Products. CUSTOMER PROFILE It has been aptly said that the consumer is the king pin of the market. The one who will cater to needs, requirements and demands of consumers will rule this kingdom. Nivea stands on this very well. That’s why, Nivea, with a varied line of products, caters to almost all generation with all skin types. TARGET MARKET SEGMENT Gender- Female Age – 20-35 years Class- Upper middle class and Rich class (because of price) HEALTH AND BEAUTY SECTOR TRENDS AND PERFORMANCE Source: http://www.retailbiz.com.au/2016/08/04/article/Health-and-beauty-segments-top-online-retail/YHHQYYBKXE Beauty and healthcare are one of the few sectors which have been vested with positive growth over time. Gone are times, when this sector was mostly prioritized to cater only the interest of glamorous society people considering celebrities and the people those who were capturing the spotlight. The era has been on the urge to change. The industry has been getting more diverse and particular about the needs and issues of consumers. Today, the industry tends to reach even to the niche product or service that an average consumer aspires for. For this purpose, companies now conduct surveys and have opinions from an entire universe of strangers. Since people are getting concerned and conscious about their health and beauty regime, they have started consuming various products which would benefit them and their skin both from inside and outside. Conclusion Nivea is one of the trusted brands in the Australian market. People tend to choose Nivea over other brands because of its varied collection and customized product availability in the market as per consumer requirements and needs. Moreover, Nivea’s long presence in the market has been a proof that its products have good demand among consumers. Bibliography 1. Beiersdorf, 2016, All Press Releases, viewed 15th October 2016 < http://www.beiersdorf.com/newsroom/press-releases/all-press-releases> 2. Coles, Home Page, viewed 14th October 2016 < https://www.coles.com.au/> 3. Nivea, 2015, 2015 Annual report, viewed 16th October 2016 4. Nivea, Home Page, viewed 15th October 2016 5. Nivea, 2003, Managing an Umbrella Brand, viewed 16th October 2016 < http://www.icmrindia.org/casestudies/catalogue/Marketing/Nivea.htm> 6. Nivea, Promotion in Marketing Mix, viewed 16th October 2016 < http://mehriibs2.blogspot.com.au/> 7. NIVEA, Uses the marketing mix to expand worldwide, viewed 16th October 2016 8. Roy Morgan Research, 2014-15, Nivea number one with Australian women, viewed 16th October 2016 < http://www.roymorgan.com.au/findings/6463-nivea-and-other-skin-face-care-hand-body-lotion-brands-march-2015-201509210257> 9. Woolworths, Home Page, viewed 14th October 2016 < https://www.woolworths.com.au/>