Nivea & Loreal Marketing Case Study Sample

Introduction To Principles Of Marketing

The main purpose of this report is to determine and evaluate the target markets of both "Nivea for Men Skin Moisturiser" and "L'Oréal Men Expert Moisturiser" using 4P's marketing mix tool. Hence, the study has depicted that Nivea for men's products has been sharing nearly 13% market share in the UK and holds£880 million as the market size in the competitive markets. Nivea has been targeting the younger generation, industrialists, and models with cost-effective prices to maintain trends in sales records.

The goal of L'Oréal is to offer moisturizers to men to nourish their tough skin since its product contains essential oils to hydrate facial hair and skin by not feeling greasy (Lorealparis.co.in, 2023). Thus, the study has been focusing on the fact that the market share ofL'Oréal has been nearly 7.2% and the market size has increased to 25.1 million. The vision of Nivea is to provide quality moisturizers for men to provide skin hydration and drying (Nivea.co.uk, 2023). L'Oréal has been targeting men who prefer to groom their looking styles and prepare marketing strategies for gaining profit. Therefore, brand awareness can be increased among men for developing skincare benefits which can raise the sales of men's skincare products.

Findings

Comparison of Target Markets

Brand awareness among men has increased by 93% by Nivea in the UK market. L'Oréal has increased the sales revenue by 39% of men's skincare cosmetics and has become one of the leading brands in the men's cosmetic zones (mintel.com, 2023). Thus, L'Oréal has been targeting men's audience from ages 25 to 34 years old, whereas, Nivea has been targeting Gen Z for increasing brand recognition and raising financial status to combat the competitors. L'Oréal has achieved success by acquiring 42.2% men customers, on the other hand, Nivea has gained 28% of male consumers for their skincare products.

4P's marketing mix

The strategy of marketing mix guides the marketing managers of the skincare industry to know the perceptions of customers and main requirements. Setting marketing plans for choosing specific places, affordable prices, particular timing to promote products, and quality can be beneficial to creating brand awareness (Kartawinata et al. 2020). Hence, executing demographic segmentation can be helpful for L'Oréal and Nivea to target their male audience to express their motives and detail their product features. Social media platforms such as Instagram have proved effective for L'Oréal to execute marketing procedures and to increase male customer engagement. On the contrary, Nivea has increased their budget for media advertisements with informative details in their story to attract more men customers.

Product

Nivea moisturizer for men consists of Vitamin E, non-greasy ingredients, and a fresh scent that can be absorbed easily by men's skin without feeling dry. L'Oréal moisturizers for men are free from colourants, parabens, and ingredients obtained from animals as well as sebum control can be reduced by making the faces of men smooth. The brand values of the skincare industry focus on the emotions of customers, beliefs, and customs while offering quality products (Chairunnisa et al. 2019). Hence, Nivea mainly focuses on trust, simplicity, and care for offering their men skincare products to raise their sales volume. L'Oréal focuses on elegance, cleanliness, openness, and innovation to relate their men's moisturizers with their tough skin.

Price

L'Oréal has been interested in value pricing for men's skincare products which indicated that the prices have been set based on value and not on the basis of cost of production. On the other hand, the pricing strategy of Nivea is based oncurvesome for developing its market share and reaching more audiences. The brands of the skincare industry mainly prefer to focus on advertising, marketing, pricing, and packaging to increase their brand images (Mohamad, 2022). Thus, pricing strategy has been denoted as a vital marketing tool to execute competitor analysis, understand insights into customers' preferences, and increase the margin of profit.

Place

Nivea has been focusing on the cost-effective distribution of their products and this company directly sells their skincare products to both large and small retailers to increase their sales revenue. Whereas,L'Oréal has more than 150 distribution centers and mainly focuses on e-commerce markets to increase men's customers for maximise sales of men's moisturizers. Therefore, supermarkets, online retail stores, and cosmetics stores have been playing a significant role in increasing the sales record of the skincare industry (Wang, 2022). Thus, popular distributed channels have been selected by both these companies to raise their sales revenue by engaging men.

Promotion

L'Oréal offers discounts, free gifts, and the most popular advertising channels for promoting their skin products. The study has depicted that men take quick purchasing decisions than women, thereby; men mainly try to find products that meet their main requirements. The suppliers and distributors of Nivea play a vital role in making its products available in the markets of the UK. Brand communication helps companies to enlighten and inform details of the products to enrich the customers with knowledge (Harnvanich et al. 2020). Hence, the brand's strengths, values, offerings, and services can be known to the stakeholders who help the skincare industry to acquire financial support and decision-making advice.

STP Analysis Of Marketing

Table 1: STP Analysis

(Source: mintel.com, 2023)

Conclusion and recommendations

Conclusion

4P's marketing mix strategy has guided both the above-mentioned skin care companies to understand the requirements of men's skin, price preferences, packaging quality, and availability in stores. The interaction with the customers by the marketers has proved effective for understanding the perceptions related to brands and their buying intentions. Moreover, online platforms have been playing a splendid role to influence the men consumers to make buying decisions based on the quality and prices of products. The availability of men's moisturizers in both online and physical stores has raised financial profits for both Nivea andL'Oréal. In addition to that, the brands of the skincare industry mainly prefer to focus on advertising, marketing, pricing, and packaging to increase their brand images.

The men customers like women have no preference to visit shops after shopping before making buying decisions, thereby; advertising contents of both Nivea andL'Oréal have been informative for allowing men to make rapid buying decisions. In addition, offers, discounts, and festive promotions can be effective in gaining more men customers for increasing sales records of men's moisturizers.

Recommendation

The recommendation can improve the marketing conditions of these companies to reach more male consumers to offer their quality products based on nourishing their skin.The increasing sales record of the companies can be beneficial for expanding sales in other regions (Singh and Kaur, 2022). Better sales performance of these companies has increased the engagement of stakeholders and guided them to prepare efficient marketing strategies for attracting male customers.

• Effective online communication using Instagram live chats and Facebook with the consumers can be effective for creating awareness among the male population to use their skin products. In addition, shampoos, creams, and hand washes can be promoted to increase the sales record of both brands for men and raise sales revenue. Customers in recent years have been preferring to solve their issues through online interaction which helps to build a loyal connection with the customers (Khanthong et al. 2020). Thus, marketing executives need to stay active on their websites and online channels to solve problems and influence to make buying decisions.
• Transparent content in e-commerce helps the skincare companies to achieve suppliers and dealers to make their products available for male consumers
• Narrating true stories in advertising can be helpful for the skincare industry to increase customer engagement with men (Genoveva and Levina, 2019). Hence, trustworthy connectivity can be built with men customers can develop long-term business relationships.

References

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• Harnvanich, E.A., Wanichwecharungruang, S., Chandrachai, A. and Asawanonda, P., 2020. Market potential evaluation for local herbal extracts used in skincare through the new product development process.PSAKU International Journal of Interdisciplinary Research,9(2).
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• Khanthong, P., Jirathanyasakul, S. and Jinain, P., 2020. Marketing Mix of Men's Skincare Products in Bangkok Thailand.President Pathumthani University, p.126.
• Lorealparis.co.in, 2023 About Us Available at: https://www.lorealparis.co.in/men/men-moisturiser [Accessed on: 21st July, 2023]
• Mohamad, M., 2022. Green marketing mix and intention to purchase green cosmetic product: Mediating effect of self-efficacy.
• Nivea.co.uk, 2023 About Us Available at: https://www.nivea.co.uk/products/nivea-men-creme-422771490045.html [Accessed on: 21st July, 2023]
• Singh, J. and Kaur, K., 2022. IMPACT OF MARKETING MIX ON CONSUMER BUYING BEHAVIOR IN HERBAL COSMETIC PRODUCT.DESH BHAGAT COLLEGE, p.54.
• Wang, G., 2022, March. The Application of 7P Analysis Model in the Market Strategy-Taking the Beauty Industry as an Example. In2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)(pp. 1620-1624). Atlantis Press.