Pricing Strategies for NIVEA Essay Example | Topics and Well Written Essays - 3500 words

Pricing Strategies for NIVEA - Essay Example For this reason Nivea launched the ‘Nivea for Men’ in the year 2008 (The Times 100, 2008). In the face care category, Nivea Visage is the most successful product in the markets of Europe, France, Austria, and Germany. In Germany this product captured 1% market share, in Austria it surpassed 1% market share just 3 months after product launch, in France it covered more than double the target market share (Maschauer & Et. Al., 2004). In Germany’s shower segment, Nivea Bath Care occupied 11.9% share, in bath product segment Nivea Bath Care occupied 11.5% share, in the liquid soap segment, it occupied 7% of market share and in solid soap segment Nivea Bath Care occupied 13.6% market share (European Cosmetic Markets, 2007). Beiersdorf operates in imperfect competitive markets. There are generally many sellers in this type of competition. The offered products are primarily differentiated. There are competitor brands present such as Rexona, FA, Palmolive, Dove and many ot hers. There is free entry for entering the market and company can sustain in the long run. The products are also differentiated. The product cost in this type of competition is determined by market power and buyers or sellers have ideal information about the brand of the company (Reynolds, 2005). During 1970 to 1980, Nivea extended the brand to a wide range of skin care products, such as Nivea creme and Milk Soap among others. Nivea creme first came in the market of Germany in the year 1912. In Europe, this creme was launched in the year of 1912, in the United States it was launched in the year of 1922 and in other countries including South America, it was launched in 1926. The other products of the brand are body soap, powder and sun protection... Nivea is one of the leading names in the global consumer products market pertaining to skin care and beauty related products. The discussion will further proceed with identification of certain factors such as market share and products of Nivea along with the competition that the company faces. In the subsequent section of the assignment, value based market segmentation will be applied along with its six relevant steps in order to comprehend the market and consumer segment of Nivea. Nivea has emerged as a popular name in superior quality skin care and beauty products. It is one of the biggest cosmetic brands which transformed from a skin care product to a trustworthy personal care product for all family type. Nivea has been able to create a niche for itself in not only European market but also global market. It has been able to withstand tough competition globally and has emerged as a leading player. It has expanded its operations in many new markets such as South America, Eastern Eur ope, Central America and Asia. Nivea occupies almost 15% of men’s fairness market. Sales of male skincare products have increased after launching of the ‘Nivea for Men’. The company wanted to raise its share in the UK male skincare segment. Value based segmentation facilitates pricing with actual value perceived and delivered to customers. This provides information that which type of customers are paying most profitable price. For making a value based segmentation six steps are needed.