Nivea Men Case Study PDF

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Yvonne Dineen...

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NIVEA MEN CASE STUDY Professor: Yvonne Dineen

GROUP 9 Ana Obiang Nsuga Asilah Safiyah Khan Stephanie Sun Abigail Natnat

Introduction The Competitive Analysis focuses on Nivea Men’s All-in-One moisture cream  and its placement in the canadian marketplace. The Analysis will provide valuable insight regarding Nivea’s brand background, foundation, implications and recommendations as well as specific merchandises. The Canadian market will be opening a new tactic on how Nivea men targets its market by analyzing their competitor, Unilever. In this report, Dove’s Men+Care Ultra-hydrating cream will be the main product competitor for Nivea. The analysis for Unilever will provide detailed information regarding their strengths, weaknesses, threats and opportunities across the world, primarily in Canadian Markets.

Assignment 1: Market/Competitive Analysis 1. Brand Analysis: A. Brand 4Ps. Image and reputation: Product: Nivea Men’s All-in-one moisture cream  is used for protecting and moisturizing skin.

Features: Vitamin E, Aloe Vera, dry skin relief, all in one Benefits: Feel  protected, skin feels healthy and resilient, feel masculine USP: It is essentially “all in one” making it a simple package that fits easily in the bathroom and can take care of multiple moisturizing needs The attitude of consumers towards Nivea Men is that its products are “straight to the point”, “no gimmick”- products that take care of basic beauty needs of men Price: Online: $8.37 In-store: Not available in local Canadian stores

Place: Amazon, Walmart, well.ca, Shoppers Drug Mart, Rexall Promotion: Nivea’s ad targets are comprised of sophisticated males who are pro-active, fit, fashionable, masculine, and employed in white colour positions, which evidently makes other men want to buy and use the product to “feel classier, seem richer, popular, etc”. Screenshot from: h ttps://goo.gl/FCayWO

*Not a product user.

*A product user.

Another ad shows, how men are “being” men by doing manly things which Nivea portrays through their ads but highlights that men don’t have to feel ashamed to take care of their skin. Men can still be men and use products that are 100% tailored to men. Screenshot from: h ttps://goo.gl/yoV1py

All men have their manly routines but when it comes to their skin routine, it doesn’t have to be less manly either.

That is why Nivea Men is 100% made for men.

Print ads: Are produced in colour that attracts men to buy the product. (Blue, silver, cool colours, masculine theme) B. Sales: The sales for Men’s Skin Care have been growing slowly since 2013 in North America. C. Market Share: Their market share has been slowly growing, they are doing averagely well, not at the top, but better than smaller brands.

D. Implications: The most important implication is that Nivea Men is a growing brand that is doing well but a good ad campaign that is focused on targeting younger male audience could really boost consumer interest in a timely manner which can make Nivea comparable to other brands like Axe or Dove Men.

2. Main Competitor Analysis: A. Brand 4Ps. Image and Reputation: Product: Dove Men + Care Dermatologist-proven to provide 24 hour moisturizing agent ultimately keeping skin healthy and resilient.

Feature: Clinically tested to provide skin up to 24-hour hydration Benefit: Helps keep skin looking healthy and resilient Price: $8.89 Place: (walgreens.com) - Online, Walmart, Shopper’s Drug Mart Promotion: Through Dove’s ads, men are portrayed as strong but in a sense much more than that, “It’s because they care.” In this particular ad, the subjects are men but who are fathers who care. They support this ad with a tagline that says “Share how care makes you stronger #realstrength”. Dove targets even a bigger audience because of this tagline. They encourage viewers and consumers to interact and share their stories. What makes a man stronger? Given that he doesn’t have to be manly, or what society looks for in a man.

Screenshot from: h ttps://goo.gl/EuwL1j

Dove Men focuses on moments rather than material. Dove Men’s ad on the other hand, portrays what “being a man” is through an unconventional approach where fathers are involved. This ad is evident example of an advocate advertisement that gives audience the emotional, heart warming benefit instead of just the physical outcomes. Screenshot from: h ttps://goo.gl/kHht3N

Strong men...

...are those who care.

Sales: This brand is doing fairly well (no unnecessary fluctuations) in sales. In 2014, there were 1,172 number of users in the U.K. (in 1,000) and 1,171 users in the subsequent year. They were down by a user. 3. Market Share: Unilever Canada Inc.’s Dove Men + Care had a 3.4% market share, increased to 5.1% in 2014, 5.7% in 2015, and 6.2% in the subsequent year. 4. Implications: Unilever Canada Inc.’s has increased incrementally over the course of 3 years which means that more “newer” consumers buy their creams Unilever is operating in 190 countries , this manufacture is known to drive competitive advantage from its global footprint and enhancing value. Unilever has over 400 brands in personal care and well- being by striving for a sustainable lifestyle. Image and Reputation: Help people feel good, look good and get more out of life. In 2003, Dove launched a worldwide campaign that aimed to get rid of unrealistic views on beauty. At the time, they were not out to sell their new product line but to emphasize on “broadening the narrow and stereotypical view of beauty”. This is a great foundation for customer retention and building customer relationships because value for the product and brand’s image is refined.

SWOT ANALYSIS Strengths

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Unilever operates in nearly 190 countries around the world global footprint combined with top of the mind brand Broad and diversified product range, which makes it uniquely, positioned to tap into the changing consumer preferences across the world. Unilever has a distinct competitive advantage over its nearest competitor, Procter and Gamble because of its flexible pricing and expertise in distribution channels that manage to reach the nook and the corner of the globe.

Threats

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The ongoing global economic crisis has severely dented the profitability of many FMCG companies. Shrinking of the disposable incomes of the global consumer, they are buying less and insisting on more value for their money or “more bang for the buck”. This means that Unilever faces the threat of diminished revenues and increasing costs Unilever operates in a market segment where local products and alternatives to its brands proliferate especially in the emerging markets Unilever faces the prospect of having to battle not only the recessionary blues but also emerging threats from this new age and new breed of competition internationally

3. Product Category/Market Analysis:

Weakness

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Operates in an uber competitive market where the other global giants like P&G and Nestle in addition to a host of local players challenge its dominance at every turn and raise the stakes in the Trillion Dollar FMCG (Fast Moving Consumer Goods) space. Its products can easily be replaced with substitutes especially in the emerging markets in Africa and Asia where the rural consumers in the hinterland often use traditional and natural alternatives to the products that Unilever markets.

Opportunities

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With the advent of globalization and the proliferation of global media, consumers in the emerging markets are aspiring to western lifestyles and this means that Unilever has a tremendous opportunity waiting for it as it taps into this large and diversified consumer base that wants to join the league of westerners in taste and preferences for consumer goods. The emergence of the health conscious consumer means that Unilever can seize the opportunity to health conscious consumer. Unilever has a good track record of social and environmental responsibility and with the emergence of the ethical hat are responsibly made and sustainably complete.

A. Market Size and Growth: The market growth (in millions) for private final consumption of Men’s Skin Care has overtly increased through the course of five years. Starting in 2011, with 14.3%, to 17.1% in 2012, an increase of approximately 3% to a significant jump of 26.5% in 2014 and then stagnates throughout 2015 and 2016 with 3% increase each year. The market is significantly growing which positively impacts the Nivea Men Skin Care brand although the challenge tends to point to the touch competition from other companies alike. A significant marketing strategy strength of Beiersdorf Inc.’s brand portfolio is led by one of its brands, Nivea, the number one skin and sun care brand in the global market which explains the strength of its global market share. B. Market Segment Analysis: (LBN Brand Shares of Facial Moisturizers % Value of 2012-2015) C. Seasonal Analysis: Since the possible brand segments under skin care include an ultimate moisturizing skin cream and sun care, Nivea can definitely target its products to countries with mostly summer and winter seasons to leverage its sales. D. Implications: An important implication for this segment is that the strength of Nivea skin care brand that can open up opportunities to achieve an array of diversified product lines for men.

4. External Influences: A. Economic Trends: Case research reveals that Nivea Men products are used by men with an average household income of $35 000 to $49 999 as well as men with an average household income of $50 000 to $70 000. This means that Nivea Men’s products are attracting men from the middle class. The current economic status in Canada is that there is an aging population but because of immigration there is still growth. The major metropolitan areas of Canada remain wealthiest in Vancouver, Calgary, and Toronto. Inflation has decreased from 1.9% in 2014 to 0.8% in 2015 while interest rates were cut twice in 2015 to help advance the economy. This all means that Canada’s economy is improving and consumers are likely to be spenders instead of savers. This would be a good time for Nivea Men to advertise their product and take advantage of economic growth. B.Social and Demographic Trends: According to sociologist Marc Lafrance, this is an era where men are starting to pay more attention to their appearance for example the trends today include “man buns”, full beards, and longer hair which all require more grooming compared to short hair and clean shaved faces. That is why Euromonitor reveals the increase in popularity of men’s grooming products and also an opportunity for companies like Nivea Men to advertise their products. Nivea Men’s products tend to attract Caucasian and South Asian men who speak either English or French at home. Their products are also mostly used by men aged 35 to 49 who finished a post-secondary education or graduation high-school and have household with more than 3 members. Nivea Men is most popular in Ontario with Quebec being the runner up with most of them having jobs as managers. Case research show that Canadians tend to case more about quality rather than

quantity as well as consuming healthier and more natural products with is great for Nivea because they have aloe-vera in their all in one moisturizer.  C.Technological Trends: With the advancements in technology, companies can send special offers to consumer’s mobile devices. The increase in online shopping has made business prioritize directing that traffic flow into stores and upgrades in technology leads in interactive in-store displayers which are creatively designed to increase customers’ overall shopping experience. The advancements in technology have also made online shopping a popular trend in Canada and Nivea Men could take advantage of this to engage consumers in their brand. It is also important to that mobile shopping apps are mostly used by millennials and gen Xers which would impact how an advertisement is designed. Nivea Men should also take an advantage of the benefits of social media like being able to connect with customers and reading reviews. D. Regulatory Trends: The regulatory authorities in Canada include the Consumer Protection Act which keeps transactions between consumer and businesses safe. The Competition Act is issued by the Canadian Competition Bureau so that advertising and marketing practices are fair. E. Implications With Canada being a country with immigrants all over the globe and having good economic growing, now would be a good time for Nivea to advertise and target men of all culture and skin types. Nivea Men is most popular in Ontario and Quebec but Vancouver and Calgary are some of the wealthiest cities in Canada so advertising there could potentially increase sales. Nivea Men should also take advantage of the increased popularity in men’s grooming products and use men with buns, beards, or long hair in their advertisements. Nivea Men should also try to engage more with men on social media because it would help them reach their target audience of urban males age 18 to 35 because millennials are the most common used of mobile purchasing apps and online shopping. On Beiersdorf Canada Inc.: Throughout many years, Beiersdorf including Nivea as one of its main brands “is globally successful because consumers all over the world trust them.” Although compared to Unilever as their competitor, it has launched various campaigns that left a memorable and positive impression on its consumers not to mention the trust and rapport that comes with it. Whereas Beiersdorf only mentioned that they build consumer trust throughout the years. The real question to ponder on is how strong that trust is with their consumers. A great way to expedite positive results such as strengthening relationships with the target is to implement moral/character-oriented campaigns. By simply shifting Beiersdorf’s focus to building a more well-rounded image through more inspirational and motivational campaigns instead of just highlighting the materialistic and consumeristic attitudes. http://www.en.beiersdorf.ca/

(Advertising Standards Canada, 2016, Guidelines)

5. Research Piece Analyzing Current/trending Ads

Middle Aged Men - clean shaven Diversity Nivea Men’s constant use of caucasian males in their campaigns is not an advantage to them due to Canada’s multicultural society. Nivea Men needs to include a more diverse profile of people in their ad campaigns not just racial but also include more people of disability. The inclusion of different body types would be an advantage to them especially since the competition is not using what the media portrays as the ideal body type.

Nivea men set out an ideology that Nivea men was for shaven faces rather than bearded ones. However, in the Canadian market, a sociologist named Marc Lafrance studied a new era of men rising attention to the “Man bun” appearance, full beards and longer hair. Therefore, Nivea Men would have to change their target in Canada to the current trending styles. Social media plays a crucial role in the marketing realm especially when “virality” and “social media trends” are the subjects. In order for Nivea Men to become a well-known and used product, Beiersdorf Canada Inc. should focus on their social media presence and communicate with its consumers and prospects. This could be the key to successfully target their audience’s needs.

Research Piece (continued) The competitive advantage for Nivea Men is to change their marketing and advertising approach in Canada. To begin with some of the implications occurring in their marketing techniques is their target market. Current Target: ● Population of men who don’t have excessive hair, or who are required to have clean cut, well groomed due to job requirements ● Middle Aged Men ● Typical muscular body image ● French (foreign) speaker, white colour ● Materialistic Target/Advertising Advantage: ● Men who carry different styles of beards and current trends ● College Men (the idea of having all in one for a busy schedule) and Middle aged ● Universal language and open to all ethnicities ● Changing body image ● Status of occupation should be universal as well however target markets such as middle aged men and college men may differ this advantage Distributor Advantage All in One moisturizer is not available in stores and Nivea Men’s products are placed on bottom shelves; advertising to distributors would be a good first step to creating popularity.Distributors would hold a better advantage of carrying the product and advertising it in their flyers since this can be a direct response to consumers. Conclusion: Nivea Men’s All in One moisturizer is a product that uses natural ingredients like aloe vera and its main competitor is Dove Men’s ultra hydrating moisturizer. Dove Men currently has more market share than Nivea Men, they also have better and more shelf space in big box retailers like Walmart. If Nivea Men wants to expand their sales, the All-in-One moisturizer is a product that can do well with good advertising. Right now this product is not available in stores and Nivea Men’s products are placed on bottom shelves; advertising to distributors would be a good first step to creating popularity because the demand for men’s grooming products have been growing since 2011. Therefore changing their Advertising and Marketing approach will gain advantage in the diverse sector of Canada and carry effective advertising messages with current trends.

References: Kantar Media. (n.d.). Brands of face creams and lotions for men ranked by number of users in the United Kingdom (UK) in 2015 (in 1,000). In Statista - The Statistics Portal . Retrieved February 15, 2017, from https://www-statista-com.library.sheridanc.on.ca/statistics/304306/leading-face-cream-and-lotion-brands-for-men-in -the-uk/. Unilever. (n.d.).Ingredients DOVE MEN. Dove. Retrieved by February, 15 2017 http://www.dove.com/us/en/men-care/face-care/face-cream/men-care-hydrate-ultra-hydrating-cream.html Beauty Campaign https://www-warc-com.library.sheridanc.on.ca/Content/ContentViewer.aspx?MasterContentRef=9e32b159-230e-4e 82-b59b-7912340bb802&CID=A85162&PUB=GALE-EMMC Market Segment Analysis http://www.portal.euromonitor.com.library.sheridanc.on.ca/portal/analysis/tab Beiersdorf SWOT https://www-warc-com.library.sheridanc.on.ca/PDFFilesTMP/1e9a3486-1766-4e0c-9347-a3dd77f7dbda.PDF (Advertising Standards Canada. (2016). Guidelines for Non-therapeutic Advertising and Labelling Claims. Retrieved from http://www.adstandards.com/en/clearance/cosmetics/Guidelines-for-the-Nonprescription-and-Cosmetic-Industry.pdf https://www.managementstudyguide.com/swot-analysis-of-unilever.html

http://www.en.beiersdorf.ca/ http://www.campaignbrief.com/2015/05/dove-mencare-launches-global-r.html...