Segmentation
A NIVEA case study

Page 1: Introduction

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Beiersdorf is the international skin care company behind the leading brands NIVEA, ELASTOPLAST, ATRIXO and EUCERIN. Over the past 10 years the company has grown rapidly in the UK by developing a balanced and well managed portfolio of brands. A brand portfolio should consist of a range of products which support each other, irrespective of which categories they operate in. The NIVEA range...
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Page 2: The three main product segments

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The diagram above shows the three main product segments that make up the NIVEA Sun range. As you will see, there are a variety of products in each, which can also be segmented as shown.  1. Protection It is vital that skin is adequately protected against the sun”s harmful effects (although no sunscreen can provide total protection). NIVEA Sun provides products that enable people...
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Page 3: Brand Vision

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A vision paints a picture of what you are trying to achieve with your brand in a simple sentence. NIVEA Sun's vision is "To be the Number 1 brand in the UK sun care market in penetration, sales and likeability." Penetration relates to the percentage of potential customers that purchase a product. Sales relate either to value (the money spent on the product) or volume (the quantities sold...
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Page 4: Consumer segmentation

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Segmentation has been vital to the success of NIVEA Sun and allowed the brand portfolio to grow to over 40 products, all meeting clear consumer needs. The following factors are used to develop and define the sun care segments:  Demographics - different groups of consumers behave differently (factors relate to age, gender, etc). Demographic differences relevant to NIVEA Sun include...
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Page 5: Brand strategy

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The key proposition of the NIVEA Sun brand is protection. The main elements of this proposition include: making sun care simple educating that protection can lead to safer tanning reinforcing the immediate protection message. This last point relates to the immediate protection formula which was developed by NIVEA Sun and launched in 2005 to provide proven instant and full UVA and UVB...
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Page 6: Conclusion

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Segmentation is the tool that enables NIVEA Sun to identify different groups of customers, and provide the best possible products to meet individual requirements. The sun care market consists of different consumers with differing needs. The UK has the biggest sales of NIVEA Sun across Beiersdorf within Europe. Understanding segmentation enables NIVEA Sun to maintain a Number 1 value position in...
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