Nivea Company’s Marketing Strategy


Marketing is one of the most crucial undertakings that define the success and profitability of organizations (Haig, 47). As such, it becomes very important to understand the strategies and how to apply them appropriately (Behrer 97). Essentially, the market changes continuously because the forces of the business are always dynamic.

This implies that an organization must continue to evaluate its marketing strategy continuously in order to improve it and position itself competitively (Pride 69). Otherwise, adopting an inflexible and conservative approach to the marketing undertaking definitely undermines the profitability of the entity in critical ways (Tuten 92).

Case Synopsis

The case focuses on the way in which NIVEA promotes, distributes, makes its prices, and develops its products. It exposes some of the critical issues of marketing in the organization and the gaps which have been identified in the promotional arena. Importantly, the case explains the launch and the need for NIVEA VISAGE, which is a critical undertaking as far as the technological future of the company is concerned. It is described as a promotional strategy that helps the company to target young people.

Statement of Problems, Causes, and Symptoms

In accordance with the case study, NIVEA seems to struggle with various aspects of its marketing strategy. First, it is evident that the company’s pricing strategy is based on cost assessment and skimming. These strategies are not sufficient to sustain the future profitability of the company.

As such, it is important to understand some of the strategies that should be changed and improved. Second, the company has not embraced technology and the internet vigorously. This implies that the company should evaluate and assess the online retailing strategy because it uses other companies to markets its products currently.

Case Analysis

A Critical Evaluate the Assembly of NIVEA Marketing Mix and Recommendations on Optimization

Essentially, the company has employed a very tactical and strategic approach when it comes to identifying its products. In this regard, it is evident that the company pays close attention to research and development. Understandably, research is one of the most effective ways of determining the needs of customers. From a critical perspective, therefore, the company applies the appropriate approach to improve its products.

In regard to pricing, it is evident that the company does not have cohesive pricing and strategy to determine the prices. This is based on the fact that strategies such as price skimming are not effective when it comes to sustaining customers and attaining predictability in the pricing (Linton 56). The prices keep on changing when a company applies price skimming because it is based on the upcoming products. Cost-based and penetration pricing are also faulty because they do not focus on the market share (Young 78).

When it comes to place, the company has substantially kept its house in order to maintain effective distribution. The use of a central selling center and the decision to disregard small retailers is cost-effective. Lastly, the promotional combination is amazing in many ways.

The company uses below-the-line strategies that include brand creation, public relations, main direct method, and events for promotion. These are all-round strategies of promotion which seeks to touch the hearts of people individually rather than focusing on the market collectively.

To What Extent Can NIVEA Rely on its Brand for Its Future?

The question of how the company should move forward is quite crucial due to the dynamic nature of the present world and technology. In essence, the company hires online stores to retail its products using its online platforms. This indicates that NIVEA cannot rely on its present physical marketing. It must go beyond the mainstream media and lead an overhaul in its use of technology in marketing.

What Elements of the Marketing Environment should NIVEA Managers Analyze to Determine Future Strategies?

In perspective, the most important elements of the marketing environment that should be considered in order to sustain the future are the place and promotion. This relates to the distribution and retailing strategies adopted by the company. In essence, most of the companies in the cosmetic and beauty industry have embarked on serious online selling. It has also become a critically effective way of retailing products. As such, the company should evaluate the manner in which it wants s to continue with the distribution. If it continues with the traditional use of mass media and branding, it will fail direly due to the increasing palatability of on the internet. The baseline, therefore, is that that the company should make its distribution and promotional strategies remote.

The Analysis of the NIVEA VISAGE Young and Future Improvement

Whereas NIVEA VISAGE Young is one of the aspects that seek to target online marketing and promotion, the company has made a crucial mistake in the process of rolling it out. In this case, the company has created a notion that the initiative targets young people. Technology, social media, and the internet is not a reserve of young people.

In the contemporary world, the internet has been promoted and used by people of all ages. As a result, the company should ensure that the initiative is taken as a broad promotional strategy for all customers. In fact, this approach should encourage the old and medium-aged to use the internet and get information about NIVEA products.

Alternative Recommendations

There are some recommendations that the company should take into consideration. First, in their pricing strategy, they should seek to create differentiation of the market. They should produce products for different income levels in order to make sure they optimize their profitability and traction with the customers.

Premium products will be preferred by the wealthy people while the rest will go for the medium quality. Nonetheless, the quality should remain reasonable even for the low earning people in the market. Additionally, NIVEA should step up its use of social media, and the NIVEA Visage should be popularized for all ages to ensure an all-round campaign.

Works Cited

Behrer, Mattias. How Cool Brands Stay Hot. London: Kogan Page, 2011. Print.

Haig, Matt. Brand Success in How the World Top Hundred Brands Thrive and Survive. London: Kogan Page, 2011. Print.

Linton, Ian. Taking Technology to the Market a Guide. Farnham: Ashgate, 2012. Print.

Pride, William. Marketing. Melbourne: SouthWestern Cengage Learning, 2010. Print.

Tuten, Tracy, and Michael Solomon. Social Media Marketing. Boston: Pearson, 2013. Print.

Young, Laurie. Marketing Technology as a Service: Proven Techniques That Create Value. Hoboken: Wiley, 2010. Print.