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Nivea Market Segmentation

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Business Studies

We're personalizing our solutions more and more, offering different brands in different segments according to different skin needs, and that's an area where the interaction and ability to connect with customers is especially important ”

- Álvaro Alonso, General Manager at Nivea

Nivea produces high-quality products which are accessible to its consumers irrespective of where they live. Nivea listens carefully to its customers in the product development phase. It pays close attention to fluctuations in trends as more and more people take an interest in their health and appearance, in part due to the impact of social media.

NIVEA has never relied on past successes. It continuously improves its products and develops innovations at a globally leading skin-care research and development center. "

- Beiersdorf, 2019

Nivea's R&D team worldwide develops and segments products that fulfil regional customer needs. In Asia, for instance, Nivea offers a variety of products to prevent unwanted tanning. In Latin America, products with a natural tone are very popular. This product helps maintain natural skin tone, which can be affected by ageing, dryness, and exposure to the sun.

The core values of Nivea

Nivea is a firmly-established brand in the skin and body care industry. It is one of the brands manufactured and sold by Beiersdorf. Beiersdorf was found by a pharmacist named Paul C. Beiersdorf in 1882 and has grown globally with a specialisation in skin and beauty care. Nivea's success story started in Hamburg in 1911 with the first-ever oil-based moisturising cream being manufactured on an industrial scale. Nivea has become the largest skin care brand globally with a presence 179 countries.

Nivea is recognised as trusted, reliable, and accessible. It has positioned itself as a 'soft care' and 'well-being' brand.

We have four core values that guide everything we do at Beiersdorf. These are CARE, SIMPLICITY, COURAGE, and TRUST - these apply to the way we run our business, the way we treat our employees, and the way we want our colleagues to treat one another."

- Beiersdorf.com

These four core values guide and shape the way the company operates from a marketing point of view as well.

Nivea market segmentation, targeting, and positioning

Initially, Nivea offered products for women. It then repositioned itself and introduced products for men called Nivea Men. As a result of its marketing campaigns, Nivea Men became successful. Nivea creates specific market segments that fulfil customer requirements.

Segmentation happens when a market is divided into sub-segments that respond in similar ways to marketing activities.

There are many advantages of niche, segment marketing compared to mass marketing.

Geographic segmentation

Segmentation by region: For example, Nivea might segment the market for roll-on deodorant in regions with a warmer climate.

Segmentation by city: the use of roll-ons is higher in cities than in the countryside, this may be because of factors like income levels and product awareness.

Demographic segmentation

Segmentation by age: for instance, the level of roll-on use may simply relate to age groups. For instance, teenagers might need a stronger deodorant compared to older people.

Segmentation by gender: Nivea has recognised gender as a key factor in the segmentation of its products. Men and women often have different needs. Women tend to have a preference for mild, floral, and refreshing scents, whereas men tend to like heavier, stronger, and distinct fragrances.

Based on market segmentation, Nivea has examined the needs of its customers and has opted to target three major markets. Their main target markets comprise Asian countries in the tropical and equatorial region, the teenage to the young adult market, and the market for men.

Take a look at our explanation on segmentation to find out more about the various ways consumers can be segmented.

Target groups

The demand for roll-on deodorants is higher in the Asia compared to other regions because of climate.

The teenage to young adult market is lucrative. It covers the 15-24 year age range. This target market is largely made up of students or graduates who need affordable products, which Nivea offers.

Consumer groups based on gender (men/women) and age (baby boomers/millennials) have been segmented by the company in order to offer products tailored to their life stage.

To revise the concept of targeting in marketing, take a look at our explanation on market segmentation, targeting, and positioning.

Positioning

Nivea has established a reputation (position) as affordable and good value for money.

Nivea is one of the top brands in the personal and skincare industry. Their innovation, research expertise, and marketing are the reasons for its success. The brand's close attention to the needs of its customers allows it to offer products tailored to specific market segments.

Nivea Market Segmentation - Key takeaways

  • Beiersdorf was founded by a pharmacist named Paul C. Beiersdorf in 1882.

  • Nivea is one of the brands from a variety of brands manufactured and sold by Beiersdorf.

  • Nivea is a famous brand in the skin and body care industry.

  • Nivea's success story started in Hamburg in 1911 with the first-ever oil-based moisturising cream.

  • The brand Nivea has come to signifiy high-quality products which are accessible to its consumers irrespective of where they live.

  • Nivea's R&D team worldwide develops and segments products that fulfil the various regional requirements of the customers.

  • Nivea's core values are care, simplicity, courage, and trust.

  • Initially, Nivea offered and marketed products for women and later repositioned itself to offer men's products as well.

  • Nivea's market segmentation consists of geographic segmentation (region and cities) and demographic segmentation (gender and age).

  • Nivea's target markets include Asian countries in the tropical and equatorial region, the teenage to young adult market, and the market for men.

  • Nivea has established its current position as affordable and value for money.


Sources:

CEO magazine, https://ceo-na.com/executive-interviews/diverse-solutions-in-the-skin-market/

Beiersdorf, https://www.beiersdorf.com/~/media/Beiersdorf/newsroom/media-and-downloads/press-texts/2019/Beiersdorf_2_NIVEA_en_2019.pdf?download=true

Marketing91, https://www.marketing91.com/marketing-strategy-of-nivea/

Greenontheinside, https://www.greenontheinside.net/nivea-marketing-strategy-essay-example/

Cosmeticdesign-europe, https://www.cosmeticsdesign-europe.com/Article/2020/06/03/Nivea-most-chosen-beauty-and-personal-care-brand-in-Europe-says-Kantar

Nivea Market Segmentation

Demographic, psychographic, behavioural, geographic, and firmographic segmentation.

Nivea's strategy is to offer products for every age group at affordable prices. The emphasis of Nivea's marketing strategy is brand extension, so it can stay ahead of its rivals. They use traditional and digital media platforms to market their products.

  1. Find customers on the basis of their wants and needs.
  2. Assess their lifestyle, demographics, what they like and what they don't, and their usage pattern.
  3. Identify the growth potential of the market, competition, and possible risks.
  4. Examine the potential profits.
  5. Set the prices and design marketing plans
  6. Survey the whole market and possible expansion opportunities.

An example of the geographic segmentation of Nivea: Geographic segmentation. 


Segmentation by region: Nivea might consider segmenting the market for roll-ons to regions with a warmer climate.


Segmentation by city: the use of roll-ons is higher in cities than in the countryside, this may be because of different factors like income and product awareness.

Final Nivea Market Segmentation Quiz

Question

Who founded Beiersdorf?


Show answer

Answer

Paul C. Beiersdorf

Show question

Question

When was Beiersdorf found?

Show answer

Answer

1882

Show question

Question

How did Nivea’s success story begin?


Show answer

Answer

Nivea’s success story started in Hamburg in 1911 with the first-ever oil-based moisturising cream being manufactured on an industrial scale. Nivea has become the greatest skincare brand globally and with a reach to 179 countries.

Show question

Question

What are the core values of Nivea?


Show answer

Answer

Care, simplicity, courage, and trust

Show question

Question

What is the consumer perception of the Nivea brand?


Show answer

Answer

Nivea is recognised as a trusted, reliable, and accessible brand worldwide. It has positioned itself as a 'soft care' and 'well-being' brand.

Show question

Question

What is segmentation?


Show answer

Answer

Segmentation happens when a market is divided into sub-segments that respond in alike ways to various marketing activities.

Show question

Question

What is the benefit of segment marketing?


Show answer

Answer

There are many advantages of more niche, segment marketing in comparison to mass marketing. This is because Nivea can produce a product that is more finely-tuned and set a price that is suitable for the target segment.

Show question

Question

Write an example of Nivea’s geographic segmentation?


Show answer

Answer

Segmentation by region: Nivea might consider segmenting the market for roll-ons to areas with a warmer climate.

Show question

Question

Name two examples of demographic segmentation. 


Show answer

Answer

Age and gender

Show question

Question

What is Nivea’s segmentation by age?


Show answer

Answer

Segmentation by age: teenagers might need a stronger deodorant compared to older people.

Show question

Question

What is Nivea’s segmentation by gender?


Show answer

Answer

Segmentation by gender: Nivea has recognised gender as a key factor in the segmentation of its products. On the basis of the demographic segmentation, gender is considered to have a large influence on the segmentation as men and women often differ in needs. Women tend to have a preference for mild, floral, and refreshing scents, whereas men tend to like heavier, stronger, and distinct fragrances.

Show question

Question

Name an example of a target group of Nivea’s roll-on deodorants.


Show answer

Answer

The teenage to young adult market is considered to be a lucrative market. The target market includes individuals in the 15-24 year age range. This target market is usually students or recent graduates who are searching for affordable products, which Nivea offers.

Show question

Question

What is Nivea’s regional target group for roll-on deodorants?


Show answer

Answer

The demand for roll-on deodorants is higher in the Asian region in comparison to other regions due to climate. 

Show question

Question

What is Nivea’s positioning?


Show answer

Answer

Nivea has established itself as affordable and value for money.

Show question

Question

What are the factors behind Nivea’s success?


Show answer

Answer

Nivea remains one of the top brands in the personal and skincare industry. Their innovation, research expertise, and powerful brand are the reasons for its success. Nivea's attention to its customers needs has allowed it to offer products tailored to specific market segments and target markets.

Show question

Question

___ happens when a market is divided into sub-segments that respond in similar ways to marketing activities.

Show answer

Answer

Segmentation 

Show question

Question

Nivea might segment the market for roll-on deodorant in regions with a warmer climate. This is an example of...


Show answer

Answer

geographic segmentation.

Show question

Question

The use of roll-ons is higher in cities than in the countryside, this may be because of factors like income levels and product awareness. This is an example of...

Show answer

Answer

geographic segmentation.

Show question

Question

The level of roll-on use may simply relate to age groups. For instance, teenagers might need a stronger deodorant compared to older people. This is an example of...

Show answer

Answer

demographic segmentation.

Show question

Question

Nivea has recognised gender as a key factor in the segmentation of its products. This is an example of...


Show answer

Answer

demographic segmentation.

Show question

Question

Initially, Nivea offered products for men.


Show answer

Answer

False

Show question

Question

One of Nivea's target markets are ___ countries.

Show answer

Answer

Asian 

Show question

Question

One of Nivea's target markets is the market for...

Show answer

Answer

men.

Show question

Question

Nivea has established a reputation (position) as affordable and good value for money. This is an example of...


Show answer

Answer

positioning.

Show question

Question

How many countries is Nivea present in?

Show answer

Answer

179

Show question

Question

Where was Nivea's first-ever oil-based moisturising cream manufactured?

Show answer

Answer

Hamburg

Show question

Question

Nivea is the largest skin care brand globally.

Show answer

Answer

True

Show question

Question

Nivea Men has never been successful. 

Show answer

Answer

False

Show question

Question

Nivea tailors its product to markets where it operates. 

Show answer

Answer

True

Show question

Question

CARE, SIMPLICITY, COURAGE, and TRUST are the core ___ of Nivea.

Show answer

Answer

values

Show question

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