Question

NIVEA Sun is a major international sun care brand, recognized worldwide as a leader in sun care research and development. The UK sun care market is worth £173.6m with NIVEA Sun assuming 17.5% of total market share. Sun care is a serious issue for all and “effective protection” message is key to the NIVEA Sun brand proposition. NIVEA Sun appeals to, and is used by men, women and children with quality products to meet all needs. The brand also aims to bring fun to the market through recognizing situations when sun care products are applied.

NIVEA Sun's vision is: "To be the Number 1 brand in the UK sun care market in penetration, sales and likeability." One key way to achieve the vision is to provide innovative solutions to market needs. This has been a key success factor for NIVEA Sun. As a brand it has achieved this through continually segmenting its consumers in order to effectively meet consumers' needs and identify new market opportunities. 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.

Latest segmentation of NIVEA Sun protection market has resulted in the following:

· Concerned Consumers - 'a good tan is not important'. These consumers are conscious of the harmful effects of the sun and purchase sun protection products that are most likely to offer high sun protection factors.

· Sun Avoiders - avoid sunbathing and using sun protection when in the sun - it is seen as a routine act. These are unlikely to purchase a sun care product. Through education, this segment may be convinced to protect using more easy-to-apply products such as sprays.

· Conscientious Sun Lovers - adore sunshine and like to use a trustworthy brand with suitable protection factors. They know about sun care and use this knowledge to purchase suitable products for their skin.

· Careless Tanners - adore the sun but don't protect against harmful dangers. Tanning is important to this group, not protection. They don't worry about the long-term damage to their skin and are not interested in the purchase a sun protection product. They consider using such product as unnecessary hassle.

· Naive Beauty Conscious - like to have a good sun tan. They recognize that sun protection is important but fail to understand about Sun Protection Factors (SPFs). These consumers may still be interested in the core features of a sun protection product, and be more inclined to purchase an added-value offering such as a mousse.

NIVEA Sun follows a strategy of product innovation, in order to achieve its long-term objectives. This takes the form of timely new product launches to enable the brand to more closely meet the needs of different types of consumers. Some good examples of innovative launches include:

· Spray products that are easy to apply (particularly appealing to men)

· Colored, easy to use, packages for children's sun products (making application more fun)

· Reformulation of the products to offer immediate protection.

In 2006, NIVEA Sun has developed 'Long Lasting Water Resistance' for children, a product which has increased the water resistance of sun protection from 80 minutes to 120 minutes. This allows children to be safer in the sun for longer. In addition NIVEA Sun creates innovative marketing communication. Women are the main purchasers of sun care for the family. This is reflected in above-the-line (advertising) communications, generally targeted towards a female audience. However, in 2005, NIVEA Sun targeted male consumers with its immediate protection message in press advertising. This was presented in a fun and 'non-serious' way in order to appeal to a male audience. Children are not purchasers of sun care. However, NIVEA Sun recognizes it can play an important part in educating children from a young age to be safer when in the sun. Every year, a 'Sun Sense' primary school resource pack is distributed to over 10,000 teachers to communicate this key message. Continual segmentation is vital to fully understand consumer needs and changing habits. This helps provide appropriate products to meet their needs.

1) despite the fact that sun protection products are purchased for personal use, Nivea sun acknowledges the different,current,potential roles played by other people when it comes to purchasing and using sun protection products. how is that manifested in the case?

2) what growth strategy does Nivea sun apply according to case details? explain your answer

Answer 1

[1] Despite of the fact that sun protection products are purchased for personal use. Nivea sun acknowledges the different, current potential roles played by other people when it comes to purchasing and using sun protection product. This is simply manifested in the above mentioned case as the people belongs to wide diversity of area they belongs to different culture, religion, different climate condition, and having different taste and preference as compared to other as the case has mentioned few category of people like concerned consumers, sun avoiders, sun lovers, careless tanners etc with their usage of a sun protection these categories defines the usage of the sun protection product according to their individual requirement which directly or indirectly affects the demands of the company product and somwhere affected the revenue and profit of the company thus by acknowledging these different roles of the people while purchasing the sun protection product helps the company with an effective planning regarding its production and supply in order to avoid loss and target the one who actually use such product in the daily routine.

[2] The growth strategy Nivea sun applies according to the case details- As growth strategies is an essential element for the survival of any competing business in order to attain greater success, in the absence of the growth strategies the company the company cannot survive in the long run therefore it is always important to have effective growth strategies Here the following growth strategies are applied by the Nivea sun according to the case detail-

• Innovative launches such as spray product for more convenient use of the customer and provide them with more satisfaction than their previous usage of the companys product.
• The company has initiated with the packages of children's sun product in order to expand its market by increasing its product range.
• Product available even for the male consumer that is also included in the growth strategy of the company
• Nivea sun is educating children from the very young age with the importance of sun protection by spreading the message through teacher by providing them with the resources pack.