It all started, as it may sound strange, with the patch. In Germany, back in 1882 the pharmacist Paul Carl Beiersdorf invented the band-aid, and after his invention founded Beiersdorf, which today is a giant in the cosmetics industry.
However, at that time the factory, which produced band-aid, was not profitable. Goods were flocked in warehouses, because he didn’t spend money on advertising the products. Assertive pharmacist from Hamburg came to the business, and the company's success went to the mountain. Dr. Oskar Troplowitz develops new technologies, pays much attention to marketing and advertising, and even increases the output.
A new era has come with the opening of Eucerit. Eucerit is a substance that can combine the water, oil, active ingredients, and create a stable emulsion. A pharmacist by education, Oskar Troplowitz, realized that Eucerit opens up completely new opportunities in cosmetology. He decided to create a moisturizer based emulsion.
The birth of the brand took place in December 1911. In sale there was cream NIVEA (Latin - "white"). The original world famous packaging cream is slightly different from the usual for us blue cans. The cream is manufactured in the yellow jar, decorated with floral ornaments and ornate font. Of course, cream has changed, it's been almost a hundred years! However, the success of a major international corporation, Beiersdorf begins with moisturizer, and today the brand is the hallmark of the very cans (GCI, 2008).
Already in 1914, Beiersdorf worked not only in Germany, but produced and sold a substantial part of the goods abroad. If to be precise, in the 34 countries of the world! The scale of the company can be estimated from the fact that in the early 1930s in enterprise owned by Beiersdorf worked half a million people. Gradually, the company expanded product range. In addition to the cream, bandages and adhesive tapes, it begins production of soap and powder. Updated and series NIVEA - later there were products for hair such as shampoos and styling products.
Evolved as Advertising Support Production of Beiersdorf
But in 1920, there was a significant event - the first advertisement of NIVEA products in movies. Animation advertised cream NIVEA in tubes. The company Beiersdorf was really the leader of cosmetology. First advertisement received its support, moreover in 1922 - the world's first beauty products for men appeared. However, at first it was just soap for shaving. But then it eventually turned into soap in foam and shaving gels NIVEA, thus became very popular among men.
The company is gaining momentum. In 1925, the company's manager decided to dramatically change the packaging design and style of the campaign. The intricate tendrils in the Art Nouveau style were forgotten, so on the shelves appeared blue cans with white logo. Since then, the package design of cream NIVEA hardly changed, thus brand NIVEA is associating worldwide with a round blue tin. Furthermore, all other products and print ads are made in the blue and white color.
Eventually, the company supported the change of non-standard advertising course image into huge inflatable float tubes labeled NIVEA. All advertising has focused on versatile cream, suitable for home, and for sports, for the rest on the sea, and even for small children.
Let`s us Consider NIVEA in UAE
Success of the NIVEA brand in the Middle East is impressive. After all, this is a region with its own culture and tradition in beauty. At the same time, all the experts say that the East is a breeding ground for cosmetic sales, since it traditionally played an important cultural role in beauty and care in comparison to traditions even in Europe. That's why NIVEA managed to increase its sales in the region by 47%. Particularly surprising was the success in sales of NIVEA products and services for the makeup, furthermore brand is able to achieve 46% market share in this segment.
There were opened a lot of malls, spa, stores in UAE, Dubai. The statistics showed that NIVEA demonstrated a good holding 46% of the market in 2007. Nowadays more and more stores are opened, and more and more people are hired. Moreover, there is also online store with NIVEA products. Nowadays online stores are very popular, you can make a purchase even at home. The NIVEA market in UAE is very popular, thus in some years it became bigger.
Barbalova suggests that expansion of the retail landscape, combined with the growth of new products are the main driving impact in increasing of the market, which is largely fueled by advances in skin care, in particular, anti-aging and skin whitening products
(Cosmetics and toiletries, 2012).
Skin care achieved the highest growth rate, increasing by 12% in 2009 to reach AED 227 million, which is the largest category in the market with 57% of the shares. Barbalova explains that this is because skin care is important for women, moreover, is a factor that reflects the mass of the target products. As in Iran, face moisturizers and anti-aging skin care products are very popular on the market due to severe weather.
The market is led by Beiersdorf Middle East, 15% of the shares, and the figure also highlights the fragmentation of the market. Looking ahead, Barbalova expects that market growth will be supported by a forecast for 5% annual growth rate, indicating that the total market value of AED will be 520.3 million in 2015 (Cosmetics and Toiletries, 2012).
Promotional set of marketing communications is also very important in this topic.
Advertising on TV is largely represented by international rollers oriented on each country, the aim of which is to maintain brand awareness, as well as the presentation of new products. Also NIVEA use press advertising, sales promotion, point of sale, sponsorship.
One should, however, not forget about marketing information.
As you know, marketing information consists of two parts:
1. Primary (survey, experiment);
2. Secondary (generated reports, media and others)
The criteria for the comparison of these species are reliability, speed and cost of collection. Primary information, subject to the conditions collection is more accurate and fresh, but its collection is rather expensive and time-consuming; furthermore, companies often use secondary information, and the primary recourse for the special importance of necessary data, or in case of absence of secondary information. In this paper is used mainly secondary information (The Times 100, 2009).
The history of the NIVEA brand began in 1890 with their first innovation. Then, in 1911 on the market appeared the world's first long-acting moisturizer for the skin entitled NIVEA.
Now NIVEA is an umbrella brand under which are producing 13 major product lines:
NiveaVisage - skin care,
Nivea Lip Care - lip care, including Nivea Labello a series of hygienic lipsticks,
Nivea for Men - men's cosmetics,
Nivea Sun - protection from the sun,
Nivea Body - body care,
Nivea Soft - line of moisturizers with neutral ph,
Nivea Creme - line of moisturizers,
Nivea Hand - hand care,
Nivea Hair Care - hair care,
Nivea Bath Care - beauty products for bath and shower,
Nivea Baby - child care,
Nivea Deo - line of deodorants,
Nivea Intimo - intimate hygiene.
The basic tools of marketing brand are product, price, distribution and communication.
A key factor in the competitiveness of products sold under the brand name NIVEA of the best quality and price ratio (The Times 100, 2009).
Perhaps, one of the most interesting products of the brand NIVEA is Nivea Creme - it is the first and key product. Its life cycle is characterized by the repetition of cycles, which ensures constant innovation. NIVEA brand submitted cosmetics of middle segment. NIVEA brand has always been a reasonable price policy. A good example is a cosmetic line Nivea Visage - a series of care products for skin care. Competing companies often offer similar products at prices several times higher. Pricing is on the costs of production, and because production is massive - the prices are low.
Distribution channels, multi-level complex and sales are made through the wholesale and retail intermediaries, thus direct sales are not available, its own retail network is not developed. Effectively sales are gained due to large specialized retailers.
Also brand products are widely available on markets, supermarkets, some are sold through pharmacies. Some experts predict a good future drugstore format, because they believe that it is very convenient for the consumer. It is believed that pharmacies are becoming more attractive for cosmetic companies as a supply channel (The Times 100, 2009).
Advertising on TV is largely represented by international rollers oriented to all countries, the aim of which is to maintain brand awareness, as well as to present new products. Moreover, press advertising, sales promotion, point of sale, sponsorship are used. The advertising campaign for the brand in all its history has been focused on a wide range of people, furthermore the basic idea of advertising campaigns of NIVEA is the universality.
Brand building is fully consistent with its orientation to mass audiences in the UAE.
According to the annual survey conducted by a popular publication Reader's Digest, NIVEA consumers believe that among all cosmetic brands of skin care NIVEA deserves utmost trust. Such criterias such as the quality of the products, brand image and the ratio of "cost-benefit" is always evaluated.
In all three categories - cosmetics, skin care and hair care NIVEA is first. In the category of cosmetics brand company Beiersdorf preferred 31% percent of the respondents. Each year, the publication conducts among its 23,000 regular readers poll "Brands that's just you trust." The questionnaire offered about 100 categories of consumer goods without the names of brands themselves. NIVEA brand is rankings in the category Cosmetics skin care for 9 years running (The Times 100, 2009).