Developing a marketing plan

A NIVEA case study

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Page 1: Introduction

The NIVEA brand is one of the most recognised skin and beauty care
brands in the world. NIVEA creme was first introduced in 1911 and the NIVEA brand now
extends to 14 product ranges worldwide from suncare to facial moisturisers, deodorant and
shower products.

In 1980 when Beiersdorf, the international company that owns NIVEA, launched its NIVEA
FOR MEN range internationally, it broke new ground with its aftershave balm product. It was
the first balm on the market that did not contain alcohol, which can irritate the skin. It proved to
be very popular with consumers.
 In 1993, NIVEA FOR MEN developed a fuller range of male skincare
products. This reflected the growing social acceptance of these products with male consumers.
The brand was able to exploit its knowledge of the skincare market. The company's research
showed men mainly wanted skincare products that protected the face after shaving. Men were
willing to buy products that helped calm and soothe irritated skin caused by shaving.

The NIVEA FOR MEN brand was launched in the UK in 1998. At that time total annual sales of
men's skincare products (facial and shaving preparations) in the UK were only £68 million with
the male facial product sector worth only £7.3 million.

Sales of male skincare products have grown steadily since the launch of NIVEA FOR MEN and
the market in 2008 was worth over £117 million with male facial products worth £49 million.
NIVEA FOR MEN wanted to increase its share of the UK male skincare market. This case study
examines how NIVEA re-launched the NIVEA FOR MEN range in 2008. This was part of its
overall plan to develop the range in the UK. It shows how the company developed a marketing
plan for the relaunch and organised its marketing activities to achieve its aims and objectives.
The study focuses on how a company can respond to changes in consumer
expectations, external influences and business aims to achieve those objectives.

Page 2: What is a marketing plan?

A business needs to set its overall direction for the company through a business plan. This plan
sets out how the company is to achieve its aims. The aims and objectives of a business inform
and shape its business plan. A vital part of the overall business plan is the marketing plan. The
relationship between the two plans is shown in the diagram.
 Marketing involves identifying, anticipating and satisfying customer needs. A marketing plan
takes the stated aims and objectives and then puts in place a series of marketing activities to
ensure those objectives are achieved. Marketing plans can cover any time period, but normally
set out activities for the next one to five years at either a business or brand level.

The main sections of the plan cover:

 SWOT and competitive analysis to assess where the business or brand is currently and what competitors
are doing
 objectives what the plan needs to achieve
 the marketing strategy how the objectives will be achieved
 sales forecast by how much sales are likely to increase
 budget how much the marketing activities will cost and how the plan will be financed
 evaluation how outcomes will be monitored and measured.

There is no set model for a marketing plan. The structure of the plan and the amount of detail
will depend on the size of the brand, the timescale involved and how the market and economy is
behaving. However, NIVEA's marketing plan for the relaunch of NIVEA FOR MEN follows
closely the outline described.

Page 3: Assessing the market

The first step in devising a marketing plan is to conduct an evaluation of the business,
its brands and products. This should include an assessment of the brand's position and
the state of the market. NIVEA FOR MEN needs to know what its male customers want
and what competitor products exist. As well as targeting the male consumer, women are
also an important target market for NIVEA FOR MEN. This is because women often buy
male grooming products for their partners as well as helping them choose which
products to buy. NIVEA FOR MEN used a SWOT analysis to help it assess the market.
This takes a detailed look at the internal strengths and weaknesses of the business, as
well as external opportunities and threats in the marketplace.

Page 4: Setting objectives

A successful marketing plan relies on setting clear and relevant objectives. These must relate
directly to the business's overall aims and objectives. In other words, the marketing plan must fit
with the overall company strategy that is set out in the business plan. Beiersdorf states its goal as
'...to increase our market share through qualitative growth. At the same time we want to further
improve our sound earnings performance so that we can fulfil our consumers' wishes and needs
with innovations today and in the future. This will give us a strong position within the global
competitive environment.

The marketing team set SMART objectives for the NIVEA FOR MEN relaunch. These are
Specific, Measurable, Achievable, Realistic (given the available resources) and Time constrained
(to be achieved by a given date). The marketing team used research data to forecast market
trends over the next three-to-five years. This helped them set specific targets for increasing sales,
growing market share and improving its brand image.

Beiersdorf wanted to increase its UK market share for NIVEA FOR MEN, but also wanted
greater market penetration for male skincare products. In other words, it wanted not just a greater
share of the existing market; it wanted to expand that market. It wanted more men buying
skincare products. One key aim was to move men from just considering skincare products to
making actual purchases. It also aimed to sell more male skincare products to women. Research
had indicated that women were often the initial purchaser of skincare products for men. NIVEA
FOR MEN used this key fact as a way to increase opportunities for sales. Another objective was
to develop the NIVEA FOR MEN brand image. The NIVEA brand has always stood for good
quality products that are reliable, user-friendly and good value for money. The brand's core
values are security, trust, closeness and credibility. These values would be strengthened and
expanded on with the re-launch, to get more men and women to think of NIVEA as first choice
for skincare.

Page 5: Marketing strategies

 The
NIVEA FOR MEN team devised marketing strategies to deliver its objectives. These
strategies set out how the objectives would be achieved within the designated budget
set by the management team. This focus on product development combined with an
emphasis on consumer needs is a key differentiator for NIVEA FOR MEN. It is a major
reason why in the UK the brand is still the market leader in the male facial skincare
market.

Another cornerstone of the UK marketing strategy for the

re-launch was promotion. NIVEA sought to build on and develop the approach it had
used in the past. In the 1980s, advertising in men's style and fashion magazines along
with product sampling was a major promotional tool. In the 1990s, the company used
radio, television and press advertising together with sampling. Since 2000, there has
been a greater emphasis on consumer needs and an increasing use of experiential
activities in the promotional mix. Experiential marketing is about engaging consumers
through two-way communications that bring brand personalities to life and add value to
the target audience. This helps build an emotional connection between the brand and
the consumers.
It is important to get the promotional balance right. NIVEA FOR MEN promoted the new
launches of its products through a mixture of above-the-line and below-the-line
promotion. The use of sport was a key element here. NIVEA FOR MEN supported
football events at a grass-roots level through its partnership with Powerleague to build
positive relationships with men. This helped create stronger brand affinity for NIVEA
FOR MEN among men. It also allowed the brand to build and maintain a consistent
dialogue with men, which helps to drive sales.

Above-the-line promotion included television and cinema adverts, which reached a wide
audience. By using links with sport, NIVEA FOR MEN aimed to build a positive male
image associated with male facial skincare. The brand also benefited from press
advertorials in popular men's magazines, making the daily usage of their products more
acceptable. Promotions were used to attract new customers. For example, the
distribution of free samples encouraged trial of NIVEA FOR MEN products which drove
purchase. These promotions have helped build up brand awareness and consumer
familiarity which reinforce the NIVEA FOR MEN brand presence. There is a dedicated
NIVEA FOR MEN website to support its products and provide information to educate
men on their skincare needs. To enhance the brand a tool called a 'Configurator' was
created on the website to help customers specify their skin type and find the product
that best suits their needs.

Page 6: Conclusion - evaluating the plan

The marketing plan is a cycle that begins and ends with evaluation. The final stage in the
marketing plan is to measure the outcomes of the marketing activities against the original
objectives and targets. Continuous evaluation helps the marketing team to focus on modifying or
introducing new activities to achieve objectives.

NIVEA FOR MEN adopted a range of key performance indicators to assess the success of the
NIVEA FOR MEN re-launch in the UK. It looked at:
 market share - Did the re-launch accelerate this growth and help achieve its market share objectives?
NIVEA FOR MEN is market leader in many countries and is consistently gaining additional market share.
 overall sales - Was this in line with objectives? Internationally, NIVEA FOR MEN skincare products grew
by almost 20%. Its sales in the UK market at retail in 2008 were nearly £30 million and in line with
expectations.
 brand image ratings - NIVEA FOR MEN was the Best Skincare Range winner in the FHM Grooming Award
2008 for the fifth year running. This award was voted for by consumers. It illustrates that NIVEA FOR
MEN has an extremely positive brand image with consumers compared to other brands.
 product innovation - In response to consumer feedback and following extensive product innovation and
development, the NIVEA FOR MEN range has been expanded and the existing formulations improved.

These results show that, in the UK, the NIVEA FOR MEN re-
launch met its overall targets, which was a significant achievement, considering the difficult
economic climate. The marketing plan for the re-launch used past performance and forecast data
to create a new marketing strategy. This built on the brand and company's strengths to take
advantage of the increasing change of male attitudes to using skincare products.

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