Nivea Case Study
Describe the first “P” in the Marketing Mix, People. Who are the consumers and what is the nature of their demand?
People denote the knowledge, level of expertise and services of individuals working for a company, as they help in getting the firm from its challenges. In most cases, customers will make decision about products and services and the delivery depending on the representatives of the company. In this case, company employees require service knowledge and outstanding interpersonal skills to present a quality service. They also need the capacity to choose, recruit and retain the right people with excellent skills and matchless abilities. Consumers buy products either for use or resale. In this case, the consumers are teenage women and mothers acquiring the commodities for their daughters who share common lifestyle and attitude. They buy products in company of other friends who are shopping other goods from groceries.
Describe what is meant by a business being ‘consumer led’
This refers to when a business firm operates in response to the tastes and preferences of buyers in the market. For Nivea, it endeavors to meet the needs of its customers through innovative products. It addresses lifestyle needs of its customers, making it consumer friendly. A consumer led business always improves its current products and introduces new ones to fulfill the demand of buyers. Over the years, Nivea meet beauty needs of its customers, offering value for their money through quality products. This makes Nivea, a customer led company.
What are the key parts of the Marketing Mix? Explain how each works with the others
A marketing mix encompasses understanding the market in terms of what customers want, how they will use the product, branding, color, price, size, and features, which address the needs of buyers. Through market research, it is possible to identify market segments with regard to attitude, age and style. Companies can collect this information by gathering data from customers, listening to their comment or through product testing. The product is the center of any marketing mix, since it creates the need to be in the market, priced and promoted by qualified people.
After indentifying a product, the second step is pricing. Price of a product refers to a cost, which maximizes profit margins of the business and guarantees value for customers’ money. It is important for a company to provide customers with high quality products, worth the cost. Additionally, establish if your customers are price-sensitive, i.e. will a slight drop in price lead to a higher market share or will small increase lead to extra profit margins. Moreover, a company should factor in discounts and compare prices with other players in the market. Too high prices repel customers while too low prices attract losses. Price is key because every product needs a price tag before getting to the market. Through price, a company will make profits or losses.
Promotion is about deciding the appropriate time and place to communicate marketing messages across the target market. Promotion is usually through ads in print or electronic media, internet, billboards, and PR strategies. Among others, a firm identifies how competitors in the market reach their target audience, best promotional times, and identifying any environmental issues, which could determine the timing of the promotion. Promotion makes a product competitive in the market as it denotes the availability of the product. Promotion further ensures that the product is in the right target market.
Place is where customers will find the product. Will they visit the internet, or physical store? How will they access distribution channels? Identify the need for a sales force and establish the activities of competitors and their locations. Identifying the most appropriate point of sale is paramount. Once a company has identified the product, promoted and price, it meets the needs of customers in a specific location.
Explain why the balance of the marketing mix is as important as any single element
Balancing the marketing mix is of great significance because the product reflects the efficacy of the company and makes it possible for customers to identify affordable products, depending on the purchasing power. Additionally, having such a balance is importance as it ensures that the firm produces high-quality products, which satisfy customers’ needs. This further helps in retaining the product brand. Moreover, the price tells the organization about customers’ acceptability to buy the products. Balancing the price is also essential to ensure that the company has satisfactory performance rewards and their jobs, making them more productive. Balancing the mix through place allows the company to have a higher market share and make higher profits through increased sales. Such diversified global market further makes the organization competitive internationally.
Analyze the marketing mix for NIVEA VISAGE Young. What are its strongest points? Explain why you think this is so
For a company to develop new products, it needs knowledge of the market, through product gathering and collection of important data from customers. Nivea Visage Young uses a range of pricing methods to price its products. These include cost-based, which covers costs, penetration cost, which encourages customers to buy and price skimming, which guarantees the firm high profits. For place, Nivea Visage Young uses a range of distribution channels, like retail outlets, where customers receive skin care products. The company further sells its products in high street stores mainly for youths and mothers. It uses different promotional strategies like direct mail, business to consumer trade fairs, branding and public relations. Uses product samples for customers and has an online magazine to publicize its brand to young women. Nivea Visage Young’s strongest point is the use of the internet to reach young women, since this category of people uses the internet a lot. As a result, it is possible for the target group to know more about the available products.