Applied Marketing Communication Analysis: Nivea's Strategies Report

This report provides an in-depth analysis of Nivea's marketing communication strategies, examining its effectiveness in the competitive consumer goods market. The report begins with an executive summary outlining the key aspects of the analysis, followed by a table of contents to guide the reader. A thorough situational analysis assesses Nivea's internal and external capabilities, highlighting challenges such as product design and brand perception issues, as well as opportunities for customer base expansion and mitigating negative publicity. The report then identifies Nivea's target audience, emphasizing the importance of understanding customer needs and preferences. It further outlines Nivea's marketing communication objectives, including increasing brand awareness, improving product differentiation, and addressing negative brand perceptions. The report explores the marketing communication mix, focusing on elements such as advertising and customer engagement. The conclusion summarizes the key findings and provides recommendations for Nivea to improve its market position and regain customer trust.

Running head: APPLIED MARKETING COMMUNICATION
Applied Marketing Communication
Name of Student
Name of University
Author Note

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Executive summary
The report is based on the effectiveness of marketing communication and the manner in
which organisations can use it to gain a competitive advantage. The report focuses on Nivea,
one of the best customer goods producing company. The headquarters of the company is
situated in Germany and since its inception in 1911; it has grown to be the best cosmetic
company in the word. Nivea is a household name in the cosmetic product industry and is best
at providing differentiation of various products. Lately, however, criticism and monotonous
designing of products have failed to impress the customers. The report highlights the
challenges faced by the company by taking into consideration the situation analysis of the
company. Opportunities regarding gaining customer base and mitigation of the threat of
being termed as a racially discriminating company are analysed in the report. Appropriate
marketing communication mix elements are formed keeping in mind the marketing
communication objectives of the company. The conclusion of the report is drawn based on
the manner in which Nivea can improve its target audience in the market and regain the
popularity by making the customers trust the product.

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Table of contents
Situational analysis.....................................................................................................................3
Target audience..........................................................................................................................4
Marcom objectives.....................................................................................................................5
Marketing communication mix..................................................................................................6
Conclusion................................................................................................................................10
Reference..................................................................................................................................12

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Situational analysis
Situational analysis can be considered as a method that most organisations undertake
to understand the internal and external capabilities and the resources that are possessed. This
involves analysing the business environment of an organisation and developing plans to come
with a solution suitable for gaining competitive advantage. The situational analysis is mainly
done to understand the current position of the market and the manner in which the current
position can be made better in the future (Belch et al. 2014). In the case of Nivea, the analysis
needs to be done based on the challenges and trends of the company.
According to Kellaris and Machleit (2016), the trend of a product or organisation
determines the manner in which the business is conducted. Conducting a business can result
in the rise of good as well as bad factors that may promote the name of the organisations. One
such example of a negative trend about Nivea is the fact that the company has been termed as
racist for trying to market skin brightening creams to the women in Africa. This had created a
huge controversy in the business particularly to the branches set up in the African continent.
The high trend that Nivea has set is the fact that the company is known for making
products that are different from one another. As stated by Dinnie (2015) the company
provides varieties of products that are innovative as well as have different characteristics.
Each of the products of Nivea is directed to address a certain brand of customers and satisfy
their needs. In this regard, some of the challenges that are faced by the company can be
highlighted. One of the challenges faced by the company is with the designing of the cover of
the products. Despite being one of the biggest names in the consumer goods industry, the
designing of the cover of Nivea products lead to the loss of its popularity (Nivea.com 2018).

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Another challenge that Nivea faces is the fact that due to its wide variety of products,
customers tend to remain confused about the qualities and the effectiveness of the products.
Hence, the challenge for the managers is to develop unique designs that can communicate the
value of the brand and can be easily recognised in the stores (Tanner and Raymond 2015).
This can help Nivea to reach out to its target audience and increase its popularity.
Target audience
Target audience refers to the intended group of people that an organisation wishes to
sell their products. These audiences are determined based on the lifestyle, culture, preferences
and the perception they have on a particular product or an organisation. According to
Dolnicar and Leisch (2017), the target audience is the major stakeholders of a company and it
is important that an organisation manage the target audience by keeping in mind the needs
and preferences of the people. Similarly, in the case of Nivea, the company need to identify
the target market so that it can maintain its loyalty.
As stated by Keller (2017) target audience is formed in the same manner as the target
market. Thereby, Nivea needs to analyse the market in which they wish to sell their products.
One of the advantages of Nivea is the fact that the company manufactures goods that are used
on a daily basis by every people. Hence, the motivation to purchase the goods is the fact that
daily usage of the products of Nivea can provide solutions to any skin related issue. Hence,
the target audience of the company is the female population that is mostly concerned with
damages to the skin.
The benefits that the customers of Nivea seek are the fact that the company provides
free items with the purchase of products. These offers are mostly given during festival
seasons or after the purchase of a certain amount of products. Lilleker (2015) stated that at
times loyal customers are also provided with free products that can be used to satisfy the

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customers. This provides benefits to the customers as they can get more than one product at
the same time. This instigates the buying behaviours of the customers as they can identify the
benefits that they get from the purchase of Nivea products.
As stated by Govers and Go (2016) buying behaviours of customers are affected by
factors such as economic condition, the popularity of the brand and the product. In the case of
Nivea, the prices of the products are relatively cheap and people belonging to every class in
the society can purchase the items. Hence, Nivea does not have to be worried about the price
or the economic condition affecting the sale of the products. However, with the current
attitude of the people over the company, Nivea need to ensure that the brand makes changes
that can help in the satisfaction of the customers.
Marcom objectives
Generally, the marketing communication objectives of a company are directed at the
improvement of products and services along with the satisfaction of the customers. This helps
in attaining the business proposition of the company and makes it valuable in the market. The
marketing communication objectives are based on the assumptions that are made in
identifying possible opportunities and challenges that are faced by a company. In the case of
Nivea, the company uses its brand popularity to attain the marketing communication
objectives that it has set to be achieved (Okonkwo 2016). One such marketing
communication objective that Nivea have set up includes the increase of awareness.
As stated earlier, one of the challenges faced by the company is that the designs of the
products are not as unique as the competitors possess. Therefore, this needs to improve so
that the company can gain more customers and get back the lost popularity in the market. For
this, it is necessary that Nivea design products that are easily identifiable among the other
products (Luxton, Reid and Mavondo 2015). The goal of the company is to ensure that the

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products reach the customers in a manner that highlights the name of the brand and the type
of product that is being sold.
Another very important marketing communication objective of Nivea is to change the
attitude of the people. As observed by Shen et al. (2016) the company has already been
branded as racist due to some of the products. This has led to the loss of popularity among the
people in the African region and in areas consisting of dark skin coloured people. Thus, the
objectives need to gain back the trust of these people by changing the slogans of the products.
This marketing communication can help Nivea gain back the popularity of the cosmetic
goods market.
Specific Increase of awareness among customers
Measurable It is measured by the responses made by the customers over the product
Achievable It can be achieved as Nivea is a worldwide popular brand
Realistic The objective is realistic as it defines the beliefs of the company
Time frame Need to achieve it in 3 months
Table 1: Objective 1
(Source: Created by author)
Specific Develop easily identifiable products
Measurable It can be measured by analysing the products made by the competitors
Achievable It can be achieved as every product need to be put in different containers
Realistic The objective is realistic as Nivea aims to indulge in product
differentiation
Time frame Need to achieve it in 5 months
Table 2: Objective 2
(Source: Created by author)

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Specific Change attitude of the people
Measurable It can be measured by analysing the responses of the men towards the
products
Achievable It may be difficult to achieve due to the perception of the people
Realistic It may be realistic as the people can understand the variety of products
sold by Nivea
Time frame Need to achieve it in 9 months
Table 3: Objective 3
(Source: Created by author)
Marketing communication mix
Marketing communication mix is important to understand the type of products that are
manufactured by a company (Fill 2016). The research and development of a product are
conducted keeping in mind the process and pricing of a product are made. In the words of
Bacile, Ye and Swilley (2014), it is important for a company to identify the proper
communication strategies that can be adopted to ensure that the elements of the marketing
mix are maintained in a proper manner. For example, advertising is one of the most important
elements that companies need to undertake to reach the target audience.
Parente and Strausbaugh-Hutchinson (2014) stated that the advertising of the products
is necessary for the promotion and proper implementation of the products or organisations.
The manner in which this is maintained is based on the financial capabilities of an
organisation. Advertising requires many finances so that the target market can be reached and
any type of doubts in the mind of the customers can be cleared. Therefore, the companies
allocate a significant budget amount towards the advertising of products

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(Academic.mintel.com 2018). The advantage of advertising is that the advertiser has control
over the message that is delivered.
In this regard, the three elements of marketing communication can be considered that
can help in highlighting the importance of marketing communication and the manner in
which organisations can use it in an effective manner. One such element is the engagement of
the customers. The need of the customers and the engagement made with them need to be
analysed so that the needs of the target audience can be analysed (Sozinova and Fokina
2015). The communication needs to be a two-way transferring of messages so that the
feedback from the customers can be received and responses to it can be given by the
organisations.
At the same time, the audience needs to be analysed so that the specific percentage of
the target market can be determined. The behaviours of the customers need to be analysed
based on the reactions and the comments they provide in the feedback form given to them.
This can help the companies to determine an alternative course of action that can help in
addressing the needs of the customers and improve the communication process of the
organisations (Academic.mintel.com 2018). The information gathered from the survey can be
processed and made into good use so that in future it can be helpful for the organisations.
Schmidt et al. (2016) observed that the responses of the customers result in the
development of the communication process. The communication process needs to be based
on the fact that the changes in the welfare of the customers and the perceptions of the
customers can be defined. The behaviour of the customers towards a product is determined in
a manner that can help in identifying the values and beliefs that the customers hold towards
an organisation.

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McKay-Nesbitt and Yoon (2015) stated that proper communication could help brands
gain four attributes that are essential for the management of an organisation. These four
factors include the Differentiation, Reinforce, Inform and Persuade. Together they help in
positioning an organisation in the market that reminds and reassures customers about the
existence of the particular brand. This can help in making the customers aware of the brand
and educate them about the products and activities provided by it. Finally, the customers are
allowed to provide a response so that the feedback can be used to generate strategies for the
future (Academic.mintel.com 2018).
Thus, it can be said that in the case of Nivea, the company need to ensure certain
factors that are necessary for the development of the popularity. One such factor is
establishing the popularity of the company through advertising. Nivea is a popular brand in
cosmetic goods industry and the fact that it is an internationally renowned brand makes it
possible for the company to invest a huge sum of money in financing for the advertising of
the company (Nivea.com 2018).
In this regard, it can be said that the promotion of the company can be made taking
into account the factors that highlight the popularity of the company. The advertising can be
done on various products that highlight the differences between the products and the manner
in which it can be used. This can address one of the challenges faced by the company in lieu
of making its products known to the customers (Cross, Belich and Rudelius 2015). Thus, it
can be said that the promotion is one of the important marketing communication mix
strategies that Nivea can implement in the business.
In the case of making engagement with the audience, Nivea can strive to establish
communication by the use of social media and company website. According to Schultz and
Malthouse (2017), the use of the social media in the modern world can help companies

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understand the manner in which customers perceive their products. Nivea can identify the
target customers and ensure that the engagement with these customers is done by establishing
contact via social media or by sending the registered customers messages in phones or
emails. The registration of the customers can be done via online mode or if customers visit
the physical stores.
Segal and Giacobbe (2015) observed that the specific set of audience need to be
targeted by the company so that it can develop products that suit the requirements of the
audience. However, Nivea is an international brand and the target audience vary in terms of
age groups. The products of Nivea are directed towards the female population of all age.
Therefore, the company cannot judge the behaviours of the customers and information need
to be processed is maintained by making assumptions about the market responses. This can
be a huge drawback for Nivea in getting the responses of the target audience.
Despite the fact that the company is hugely popular in the world, recent events have
made Nivea into an ordinary brand and the communication with the people has been difficult.
This is mainly because of the fact that the people have a perception that the company is racist
and makes a racial brand advertising (Strobl, Bauer and Matzler 2018). Such thoughts can be
eradicated by promoting the CSR activities of the company and providing people with an
opportunity to witness the good social work done by the company to help people without
discrimination. The change of slogans of the brand can help Nivea to gain back the popularity
with the customers.
The application of DRIP Model can help Nivea explain the objectives of the
marketing communication. Porcu et al. (2017) stated that the marcom objective could help
the company understand the necessities of the market and the resources and capabilities that
are held by the company. This can help Nivea to identify the possibilities that can be gained

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by the application of the marcom objectives in a positive manner. The DRIP Model can help
Nivea position their products in a manner that reaches the customers and remind them of the
existence of the company. They can educate the customers about the various type of products
they sell and persuade them via social media platforms to invest in the purchase of the
products.
Conclusion
Thus, it can be concluded that despite being a popular brand in the cosmetic industry,
Nivea faces certain constraints in maintaining the loyalty of the customers. The trend of the
company is attributed to the development of good qualities as well bad qualities that highlight
the progress of the company in the market. The current situation provides the company with
an analysis of the resources that can help the company to understand the issues that need to
be mitigated. The challenges faced particularly in the monotonous design base of the
company provide the company to develop strategies required for increasing the customer
base.
The target audience of Nivea is directed at the female population of the world. This is mainly
because Nivea sales products that prevent the damage of skin from any type of diseases.
Various products have developed that address the skin problems of the people. Every season
bring about the challenges for the people to maintain their skins from the exposure to
changing the weather. Hence, the customers need to be aware of the products and about the
benefit that the company provides to the customers. The prices of the products are set in a
way that can help every class of customers afford to purchase the products.
The objectives of Nivea are directed at maintaining the interests of the customers and
fulfil the aims of the employers. The organisation needs to win back the trust of the people by
developing products that can help every customer irrespective of race, colour or social

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background. The rumours against the company need to be proven right so that the company
can gain back the popularity in the market. The fact that it is a reputed brand makes it
possible for Nivea to set up objectives that can help in reaching the top of the cosmetic
industry of the international market.
Nivea can use marketing communication mix to reach out to the audience and ensure
that the company regains the lost popularity. This can be done by providing proper services to
the customers and ensuring that the advertisements are not directed at or against any ethnic
people. The conclusion drawn from the marketing communication mix is from the response
of the customers. Nivea can be one of the most popular brands in the world and maintain its
competitive advantage in the market by satisfying the needs of the customers.

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