Page 2: Product
The first stage in building an effective mix is to understand the market. NIVEA uses market research to target key market segments which identifies groups of people with the same characteristics such as age/gender/attitude/lifestyle. The knowledge and understanding from the research helps in the development of new products. NIVEA carries out its market research with consumers in a number of different ways. These include:
- using focus groups to listen to consumers directly
- gathering data from consumers through a variety of different research techniques
- product testing with consumers in different markets.
How research improved the product
Beiersdorf's market research identified that younger consumers wanted more specialised face care aimed at their own age group that offered a 'beautifying' benefit, rather than a solution to skin problems. NIVEA VISAGE Young is a skin care range targeted at girls who do not want medicated products but want a regime for their normal skin. Competitor products tend to be problem focussed and offer medicated solutions. This gives NIVEA competitive advantage. NIVEA VISAGE Young provides a unique bridge between the teenage market and the adult market.
The company improved the product to make it more effective and more consumer-friendly. Beiersdorf tested the improved products on a sample group from its target audience before finalising the range for re-launch. This testing resulted in a number of changes to existing products. Improvements included:
- changing the formula of some products. For example, it removed alcohol from one product and used natural sea salts and minerals in others
- introducing two completely new products
- a new modern pack design with a flower pattern and softer colours to appeal to younger women
- changing product descriptions and introducing larger pack sizes.
Each of these changes helped to strengthen the product range, to better meet the needs of the market.
Some of these changes reflect NIVEA's commitment to the environment. Its corporate responsibility approach aims to:
- reduce packaging and waste - by using larger pack sizes
- use more natural products by including minerals and sea salts in the formula
- increase opportunities for recycling - by using recyclable plastic in its containers.