Advanced Marketing Communications for NIVEA: Market Share, Customer and Product Trends, and Sustainability

This report provides an overview of NIVEA, discussing its market share and size, customer and product trends in the skincare market, and how sustainable factors are being adopted in the health and beauty markets. The report highlights the importance of sustainability in the beauty industry and how it impacts an organization's ability to capture market share and size. It also emphasizes the need for organizations to consider dynamic factors relative to customer and product trends to achieve and maintain competitive advantage in the market.

Advanced Marketing
Communications
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAINBODY....................................................................................................................................3
Organizational overview.............................................................................................................3
Discussing the market share and market size of the organization..............................................3
Evaluating customer and product trends in the skincare market.................................................3
Analysing how sustainable factors are being adopted in the health and beauty markets relative
to sustainable factors...................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
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INTRODUCTION
The concept of marketing refers to the overall process of attaining customers interested in
the products and services of the organization. It involves various aspects such as researching,
promotion along with selling and distributing of products and services. It allows a business to
promote its products and services in an optimal manner and gain the opportunity to capture a
larger market share as well as size (Kang, Diao and Zanini., 2020). The following report is based
on NIVEA and will provide an overview of the organization along with discussing its market
share as well as size. In addition to this, the report will highlight and evaluate the trends based on
customers and products in the skincare market. Moreover, it will analyse how sustainable factors
in the health and beauty market are being adopted.
MAINBODY
Organizational overview.
For over 100 years NIVEA has focused on inventing modern skincare which has allowed
the business to gain millions of loyal customers over the world. The organization pays emphasis
on on conducting extensive research relative to different skin types and care requirements as well
as take into consideration aspects such as culture, gender and age. This approach as enabled the
business to develop various innovative skincare products for the past few decades.
Discussing the market share and market size of the organization.
Market size:
Market size refers to the maximum total number of sales or customers that a business can
see and is often measured over the course of a year. It allows an organization to identify its
potential market size before launching a new line of products or services as it provides essential
support in understanding if its is work investing organization resources. In context to NIVEA,
the organization has been effective in capturing a large market size as it is valued at
approximately 6.19 billion U.S. Dollars. This has allowed the business to enhance its overall
brand image in the market and gain a large customer base as well. Although there are various
competitors in the market that have majorly impacted the overall size on the beauty industry and
constricted the share of NIVEA.
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(Brand value of NIVEA worldwide from 2016 to 2021)
The organization faces tough competition from organizations such as L'Oreal, Guerlian,
Dove and Garnier. Theses organization operated in the same market as NIVEA and pay
emphasis on innovations and providing products at similar cost. This results in reduced market
size of the organization (Kotler, Kartajaya and Setiawan., 2021).
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(Ranking of leading cosmetic brands in Europe in 2021, by brand value)
Market share:
Market share allows a business to gain an idea of how large as well as important the
business is within its particular sector. It helps a business to calculate is share through its total
sales within an entire sector or markets. In addition to this, it is a vital metric that helps an
organization to gain the insight that illustrates the relative size within the market it operates in.
moreover, it helps a business to identify is competitors in the market and how it can develop
effective marking, advertising as well as new products in order to start competitive. In context to
NIVIA, the organization is able to capture a large market share in an effective manner through
the utilization of innovation and development of sustainable products in the market. In addition
to this, the organization is able to utilize its marking operation in an optimal way in order to
attract a large customer base (Sadchenko and et. al., 2020).
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Evaluating customer and product trends in the skincare market.
Product trend:
It is crucial for an organization to understand a particular trend in the market as it enables
the business to understand its strengths as well as weakness. In addition to this it helps a business
to understand its competition in the markets. The business is also able to to gain an insight on
how customers are interacting with their products in the markets. In context to NIVIA, the
utilisation of beauty products has seen an immensely grown in the past decade. This has allowed
the business to provide various products in the market I order to cater the needs of its customers.
In addition to this, the business has utilized innovation within its business process in order to
ensure that it is able to gain an advantage in the market (Rahman, Hossain and Fattah., 2021).
Although there are various competitor of the organization such as Dove and Garnier. These
organization provided NIVEA with a stiff competition and forces it to pay emphasis on its
development of products in order to stay competitive in the market.
(Consumption value of cosmetics and personal care in Europe from 2012 to 2019)
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Customer trends:
It refers to the overall change in the preference as well as opinions of customers relative
to time. The preference of customers change due to various aspects such as introduction of new
products or serve in the market or offering of unique products. This influences the operations of
an organization relative to development of new products as well as marketing strategies. In
context to NIVIA, it is crucial for the organization to evaluate various changing customer trends
in the market in order to develop products. Given below are various customer trends in the
beauty industry:
Sustainable products:
This trend of customers is related to their preference of products and their development
through sustainable practices. In included aspects such as environmental friendly products that
have gained popularity in recent times. In context to NIVEA, the organization has focused on
developing products through innovative technology in order to meet the needs of customers
based on sustainable. In addition to this, the business has been able to stay competitive in the
market by utilizing of advance technology relative to its production operations.
Low cost – high quality:
There has been an increase in the overall level of competition In the market which has
influenced the overall perspective of customers relative to the price and quality. The customers
in the current market want to purchase beauty products at least cost possible without
compromising its quality. In context to NIVEA, the organization has encountered issues related
to the price of products as there are various other competitors such as L'Oreal and Dove in the
market. This has resulted in price skimming strategies as well as other methods in order to gain
competitive advantage in the market (Gilmore and Carson., 2018).
Effective channels:
This change in customer trend is direly linked with the situation of COVID-19 pandemic.
The restriction of lock-down forced the customers to utilize online source in order to attain
beauty products. This has now become a trend in the market as online stores offer attractive
discounts and offers on products through effective marketing activities. In context to NIVIA, the
organization has utilized various platforms such as Amazon as well as its own online store in
order to provide their products to customers during the COVID -19 pandemic. This has allowed
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the business to ensure that it is able to stay competitive in the market against its rivals and meet
the requirements of the changing customer trend relative to beauty industry.
Analysing how sustainable factors are being adopted in the health and beauty markets relative to
sustainable factors.
The concept of sustainability has become a major factor in the beauty industry as the
industry has see a wide-push towards the development of more sustainable packaging and
sourcing of eco-firendly ingredients. This has been sparked by the success of small eco-brands
which have based their mission around sustainability. The big brand are now following the same
and making a switch to more eco-firendly products which require an overall change across their
supply chain. In context to NIVEA, the aspect of sustainability is also linked with the changing
prefers of customers as well as the market. It has directed the organization on a path of utilizing
innovation within its operations to develop products that are sustainable. This allows the business
to ensure it is able to meet both requirements of market as well as customers. Given below are
how sustainable factors are being adopted in health and beauty market in context to NIVEA:
Innovation:
It is crucial for a beauty brand to instil innovation in order to attain sustainability through
new process, new material along with new products in the market. The aspect of innovation
requires a business to utilize a new approach that is more effective and efficient relative to the
current market. In context to NIVEA, the organization has been able to promote innovation
within its products by launching NIVEA Magic Bar range which comprises of three variants and
was launched into the market in 2021 in order to meet the growing demand of customers for
environmentally friendly and sustainable skincare options. In addition to this, the organization
focused on making the products plastic-free along with making its 99% natural in order to fulfil
the aspect of sustainability (Heath, Ruscoe and Turner., 2022).
Packaging:
This factor of sustainability in the beauty industry is based on the utilization of
unnecessary packaging material for their products. Most customers do not recycle packaging
waste from beauty products which means its up to brand to make sure that they don their part to
making packaging as minimal and biodegradable as possible. In context to NIVEA, the
organization has taken this factor into consideration as they have made the packaging of their
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NIVEA Magic Bar range fully recyclable paper packaging. This allows the business to meet the
needs of the chaining trends of their customers relative to sustainable aspects. In addition to this,
it allows the business to gain competitive advantage in the market in enhance its brand image
(Walia, Kumar and Negi., 2021).
Safe ingredients:
There has been a major shift in the preference of customers related to the use of harmful
substance in beauty products. This factor has forced the beauty brands to sources ingredients that
are safe and sources ethically from the environment in order to develop sustainable products.
This factor is essential for a beauty brand as it allows it to attract customers and meet their needs
to capture a larger market share (Milla., 2021). In context to NIVEA, the organization has
focused on utilizing vegan formula in their Magic Bar range which has no animal derived
ingredients as well as have optimized PH of the product in order to make it sustainable. In
addition to this, the product allows the business to ensure that it is able to prove a product that is
safe for its customers. This allows the organization to fulfil the aspect of sustainability and gain
completive advantage in the market in an effective as well as efficient manner (WHY
SUSTAINABILITY IS IMPORTANT TO NIVEA).
CONCLUSION
From the above report it has been concluded, that the sustainable factors in the health and
beauty market have a major impact on the overall capabilities of an organization to capture
market size as well as market share. In addition to this, the report was able to highlight that there
are various dynamic factors relative to customer and products trends that are required to be
considered by an organization in order to ensure that it is able to achieve and maintain
completive advantage in the market. This allows the business to attract customers in an optimal
manner and achieve growth.
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REFERENCES
Books & Journals:
Gilmore, A. and Carson, D., 2018. SME marketing: efficiency in practice. Small Enterprise
Research, 25(3), pp.213-226.
Heath, R. S., Ruscoe, R. E. and Turner, N. J., 2022. The beauty of biocatalysis: Sustainable
synthesis of ingredients in cosmetics. Natural Product Reports.
Kang, J., Diao, Z. and Zanini, M. T., 2020. Business-to-business marketing responses to
COVID-19 crisis: a business process perspective. Marketing Intelligence & Planning.
Kotler, P., Kartajaya, H. and Setiawan, I., 2021. Marketing 5.0: Technology for humanity. John
Wiley & Sons.
Milla, S., 2021. A new era in environmentally friendly beauty. Professional Beauty, pp.82-83.
Rahman, M. S., Hossain, M. A. and Fattah, F. A. M. A., 2021. Does marketing analytics
capability boost firms' competitive marketing performance in data-rich business
environment?. Journal of Enterprise Information Management.
Sadchenko and et. al., 2020. Modern marketing to scale the business. International Journal of
Advanced Research in Engineering and Technology (IJARET), 11(4).
Walia, S. B., Kumar, H. and Negi, N., 2021. Green Initiatives: A Step Towards Environmental
Safety and Sustainable Development. International Journal of Social Ecology and
Sustainable Development (IJSESD), 12(4), pp.28-38.
Online:
Brand value of NIVEA worldwide from 2016 to 2021.,2021.[Online]Available
through<https://www.statista.com/statistics/1010903/nivea-brand-value-worldwide/>
Ranking of leading cosmetic brands in Europe in 2021, by brand value.,2021.[Online]Available
through<https://www.statista.com/statistics/761444/cosmetics-brand-value-europe/>
Consumption value of cosmetics and personal care in Europe from 2012 to 2019.,2022.
[Online]Available through<https://www.statista.com/statistics/439551/european-cosmetics-
market-value/>
WHY SUSTAINABILITY IS IMPORTANT TO NIVEA.,2022.[Online] Available
through<https://www.nivea.co.uk/about-us/sustainability-at-nivea>
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