To form an effective mix, the market (People) has to be keenly assessed. Therefore, People can be classified into groups containing members with similar traits, Age group, Lifestyle or sex. The Consumers in a market are those who use the products of a firm. In the article, NIVEA conducted market research on identified consumer groups and the knowledge acquired was used to develop new products.
A consumer-led business is one that continuously carries out market research on various market segments to identify the different consumer needs in the market. The information gathered is used to come up with innovative products to cater for these needs.
The product is either developed according to the market-oriented approach or product-oriented approach. It is designed, packaged and given a suitable name. The other elements of place, price and promotion revolve around the product without which they would not exist.
There is need for a carefully considered pricing strategy. Pricing consists of cost base pricing, penetration pricing and in pricing. Cost based pricing covers costs of a product plus a given profit margin. Penetration pricing is where the product has an initial low price that results in large purchases and formation of a consumer buying habit. In price skimming, the initial price is set high to maximize revenue before competitors introduce their own product into the market.
The product has to reach its point of sale. It should be availed where there are many consumers and at the lowest possible cost. This will ensure that its sales price does not go up.
Promotion ensures customers know that the products are available and attempts to compel them to buy. It is done through the media that is most efficient.
Products must be distributed cost effectively through the best channels to the points with the most consumers. The price should be affordable and the most suitable medium used. Without a proper point of sale, a good product promotion and pricing strategy, a well developed product might fail in the market.
Beiersdorf conducted a market research to understand its target market. The findings were that this group wanted face care that was more specialized for their age group. A product that improved their beauty rather than the solutions to skin problems the competitors were providing. NIVEA VISAGE Young was created to respond to this need.
On the re-launch of NIVEA VISAGE Young the price was higher due to the new concept, extended product range and packaging. The appropriate distribution channels were used to get the product to the target markets. The main channels of distribution were shops such as Superdrug and Boots. The highest number of consumers was reached even though its distribution outlets are cost effective. Beiersdorf partners with the wholesalers who distribute the product to smaller retailers. Direct sale to retailers would increase costs.
The company is on popular social sites such as MySpace, Facebook and Bebo. In addition, it has an online magazine called FYI (Fun, Young and Independent). This web based promotion is an interactive way of creating consumer awareness. It also helps the company understand the markets better at a personal level.
These marketing strategies are essential to the targeted group. The gap that was identified is youthful and enjoys shopping from certain branded retailers. They also dominate the social media scene as well as cyber space. Nivea Visage therefore maximized on these areas to come up with a successful re-launch.