Nivea case study – STP Brand positioning
NIVEA is an international leading manufacturer of consumer products for skin and beauty care (Business wire, 2009). For the ninth time in a row NIVEA received the highest ranking in the annual survey “Most Trusted Brands” of Reader’s Digest magazine (Beiersdorf, 2009).
Nivea began since 1911. Today, Nivea Crème is a large brand family with more than 500 different products and consumers in more than 170 countries worldwide use the NIVEA brand (Beiersdorf, 2009).
NIVEA Good-bye Cellulite has been awarded a Bronze Media Lion at the Cannes Lion International Advertising Festival for Best Use of Sponsorship for its creative, insightful and effective marketing and communication strategy to execute the brand (Business wire, 2009).
Nivea was born in 1911. Today it continuously wins awards for innovation and creativity whilst being voted most trustworthy and reliable. By examining segmentation and evaluating the importance of it in different markets, Nivea is assessed on the segmentation it carries out in its markets, the results and effectiveness.
Market segmentation divides the general market into small segments forming groups of people who all share a similar set of needs and wants, and respond similarly to different marketing activities (Murphy, D. 2009). Segments are modeled according to descriptive variables such as demographics and geographic; or behavioral variables such as benefits sought and psychographic (Murphy, D. 2009). Thus, segmentation is aligned with the marketing definition of communicating and delivering value to customer by identifying who the customer are in the first place. The company would then position its range of brands and product around these segments.
Assessing overall attractiveness of segments: before selecting a significant and useful segment.
• Measureable: the values of the variables used for classify the segments should be determinable (Jain, R. 2009).