Segmentation, Targeting and Positioning a comparison of strategies Essay

Segmentation, Targeting and Positioning a comparison of strategies employed by Nivea in the UK and in Thailand now and potential direction for the future - Essay Example Nivea has the ability to appeal to a wide range of consumers. Nivea marketers use market 'Segmentation Strategy' to communicate with consumers. Advertising and promotional activities target consumers' perceived needs. According to Superbrand(2006): "In the UK, four million people use a Nivea Skincare product everyday". Nivea users comprise about 6.8% of UK population. Mintel (2006) argued that the "Potential Consumers" of Nivea products comprise approximately 8% of the population. Mintel (2006) indicated that Nivea is likely to concentrate its marketing on large cities. This target population has a high potential to be loyal buyers of Nivea Skincare products and would most probably buy Nivea products over other products. For example, the major city of London has a population of seven million people and is measured to have 12.2% penetration of the Nivea brand. Nivea marketers target marketing communication generally focuses on women who purchase skincare products for themselves and their families. This target market segment would most probably be readers of advertisements and internet users. In addition, women who are loyal Nivea users would be more willing to try new products under the Nivea brand. Since Nivea launched several innovative new products they have recategorized some of its products. The nourishing, tanning and firming products have been moved into the new and rapidly growing gradual tanning segment. This coincided with the launch of "Nivea Body Sunkissed Skin", a daily moisturizer that helps firms the skin. (Superbrand, 2006) According to IRI sources (2006) "the fastest-growing segment is body care with an annual increase of 29%, mainly attributable to the new gradual tanning segment. Their interest is in the target market that consists of consumers who sun-bathe and those who enjoy adventure sports. It is believed that this target market segment is interested in trying new products related to sunbathing and adventure sports. Age Group & Gender Beiersdorf annual review (2005) indicated that Nivea skincare product users ranged in age between 18-35 years of age. This is about 12 million people in the UK. In 2006 Nivea launched a new sunscreen in the UK. The product advertising states that it provides "immediate protection for children in spray and lotion formulations, forming part of the new Nivea sunscreen for children SPF 50+" (Superbrand, 2006). Nivea has expanded significantly and provides products for younger consumers. They believe that by the time the consumers are over 30 years of age they have become a part of their premium brand consumer market. This transition takes place because this market segment has grown up believing that the Nivea premium brands will help keep their skin young and healthy looking. This market segment looks for products that will help their skin look and feel younger for a longer period of time. This group never stops looking for the best quality products suitable for their age and skin types. (Mintel, 2006) Most male consumers become loyal customers because they are not likely to change their products as often as women do. Income Group Resources indicate that Nivea consumers earn an income from 10K to 35 per month which rates on 'Starting and Basic' of taxable brands. In comparison to other skincare products marketed on the same shelf,