Nivea Case study

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Segmentation
01_Introduction
Beiersdorf is the international skin care company behind the leading

NIVEA Sun

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brands NIVEA, ELASTOPLAST, ATRIXO and EUCERIN. Over the past
10 years the company has grown rapidly in the UK by developing a balanced and well managed portfolio of brands. A brand portfolio should consist of a range of products which support each other, irrespective of which categories they operate in.
The NIVEA range includes product types ranging from female face and body products to men’s shaving gels, through to deodorants and sun care products.

NIVEA

General
AllPurpose
Purpose
Soft,
Lotion,
Creams
and
Creme
Lotions

Body
Care
Body

Bath
Care,
Shower,
Soap,and
Talc,
Soap
Talc

Men’s
For Men
Face
Care

Hand
Care
Hand

Deodorant
Deodorant

Lip Care
Lip
Care

Female
Visage
Face
Care

Sun Care
Sun
Care

NIVEA identifies market

Sun care is a serious issue for all and the protection

segments that meet individual

message is key to the NIVEA Sun brand

consumer needs. Segmentation

proposition. NIVEA Sun appeals to, and is used by

occurs when a market is split into

men, women and children with quality products to

sub-markets (segments) which can respond in similar

meet all needs. The brand also aims to bring fun to

ways to different marketing activities. Each segment:

the market through recognising situations when sun

• contains consumers with similar needs or tastes
• is best satisfied by products targeted to meet

care products are applied.

their specific needs.

The UK sun care market (worth £173.6m)
This can be at a macro level (e.g. total health and beauty market) and at a micro level (i.e. within a specific category).
NIVEA Sun is a major international sun care brand,

NIVEA Sun has 17.5% value market share.

recognised worldwide as a leader in sun care research and development. The UK market is worth
£173.6m with an overall category purchase penetration of 33% (usage penetration is higher).

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Shower

Source: IRI (HBA Outlets, value sales, 52 W/E 24 Dec, 2005)

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Moisturising Sun
Sprays
SPF6, 10, 15, 20, 30,
50+

Firming Sun Lotion
SPF6, 15
Satin Sheen Sun
Lotion SPF8, 15
Sun Oil SPF4

Sensitive Sun
Lotion SPF30, 50+

After
Sun

Moisturising After
Sun Lotion
200/400ml

Cooling After Sun
Spray

After Sun Tan
Prolonger

Regenerating After
Sun Balm

Sun Touch Lotion
Normal to Dark or
Fair Skin

Sun Touch Caring
Spray

Sun Touch Face
Cream Normal to
Dark or Fair Skin

Sun Touch Aerosol
Sun Touch Wipes
Spray Normal to Dark or Fair Skin

Protection

Moisturising Sun
Lotions
SPF4, 8,12,15,20, 30,
40, 50+

Self
Tan

NIVEA Sun

2006 NIVEA Sun Range

02_The three main product segments
The diagram above shows the three main product segments that make up the NIVEA Sun range. As you will see, there are a variety of products in each, which can also be segmented as shown.
1. Protection
It is vital that skin is adequately protected against the sun’s harmful effects (although no sunscreen can provide total protection). NIVEA Sun provides products that enable people to be as safe as possible. NIVEA Sun also encourages the use of other forms of protection
(e.g. wearing a sun hat and avoiding midday sun).
Protection is the largest segment in the sun care market with a purchase penetration of 28%. NIVEA
Sun is the protection segment market leader by value
(i.e. more money is spent on NIVEA Sun protection products than any other sun care brand in the UK).

Pampering
Protection
Mousse
SPF 8, 15

Children’s
Sun Lotion SPF25,
40, 50+
Sun Spray SPF20,
30, 40, 50+,
Baby Sun Lotion
SPF50+

Skin Type

Moderate
Temperature

Hot
Temperature

Very Hot
Temperature

Very Light

SPF 30

SPF 40

SPF 50+

Fair

SPF 20

SPF 30

SPF 40

Normal

SPF 15

SPF 20

SPF 30

Dark

SPF 15

SPF 15

SPF 30

Children’s

SPF 30

SPF 50+

SPF 50+

2. After Sun
NIVEA Sun is the market leader within this segment in the UK, which has been growing rapidly.
3. Self-tan
In contrast to protection and after sun, the self-tan category is concerned mostly with cosmetic appeal. Many adults use self-tan to

When choosing sunscreens there are two important factors to consider:
i. skin type
The chart below shows segmentation by skin type.
The level of protection required for each segment will vary according to generalised skin types (as seen below):

have an all year round sun kissed glow. 03_Brand Vision
A vision paints a picture of what you are trying to achieve with your brand in a simple sentence. NIVEA

Skin Type

Very Light

Fair

Normal

Dark

Hair Colour

Reddish

Blonde

Dark Blonde

Brown

brand in the UK sun care market in

Freckles

Many

Some

Few

None

penetration, sales and likeability."

Sunburn

Very Quickly

Quickly

Regular

Slow

Tanning

Slowly

Slowly

Quickly

Very Quickly

Children’s skin is thinner and its repair mechanism is not yet fully developed. As a result they require extra protection and sun screens that are specifically developed for their skin.

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ii. location
NIVEA Sun provides a range of lotions and sprays targeted at different climates and to users with different skin types. Someone with fair skin may be well protected with a SPF 20 product when in England, but if they were in Barbados they would need SPF 40.

Penetration relates to the percentage of potential customers that purchase a product. Sales relate either to value (the money spent on the product) or volume (the quantities sold). Likeability is all about enjoyment. If people like a brand/product they will continue to buy it.
One key way to achieve the vision is to provide innovative solutions to market needs. This has been a key success factor for NIVEA Sun. As a brand it has achieved this through continually segmenting its consumers in order to:

• effectively meet consumers’ needs
• identify new market opportunities.

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Skin type applies to children, as well as adults.

Sun’s vision is "To be the Number 1

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04_Consumer segmentation
Segmentation has been vital to the success of
NIVEA Sun and allowed the brand portfolio to grow to over 40 products, all meeting clear consumer needs. The following factors are used to develop and define the sun care segments:

• Sun Avoiders - avoid sunbathing and using sun protection when in the sun - it is seen as a chore.
These are unlikely to purchase a sun care product. Through education, this segment may be convinced to protect using more easy-to-

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apply products such as sprays.

• Conscientious Sun Lovers - adore sunshine
Demographics

and like to use a trustworthy brand with suitable protection factors. They know about sun care and use this knowledge to purchase suitable

Attitudes

products for their skin.

• Careless Tanners - adore the sun but don’t
Usage Occasion

Benefit Sought

protect against harmful dangers. Tanning is important to this group, not protection. They don’t worry about the long-term damage to their skin

Key Consumer Segments

and may purchase a low SPF product, if any at all.

• Naive Beauty Conscious - like to have a good sun tan. They recognise that sun protection is

Self Tan

Primary Sun Care Users
• Conscientious Sun Lovers
• Naive Beauty Conscious
• Concerned Consumers

Secondary Sun
Care Users
• Sun Avoiders
• Careless
Tanners

important but fail to understand about Sun
Protection Factors (SPFs). These consumers may still be interested in the core features of a sun protection product (e.g. SPF) and be more inclined to purchase an added-value offering

• Demographics - different groups of consumers

such as a mousse.

behave differently (factors relate to age, gender, etc). Demographic differences relevant to NIVEA

Consumer segments were identified by analysing

Sun include different buying behaviours between

answers to questions about attitudes.

men/women and adults with children. There is a stark contrast between awareness and usage of

The two main aspects of attitudes relate to:

sun care products between men (who prefer

• Usage occasion (when) – e.g. holiday, outdoor

convenience) and women (who enjoy more

sports, gardening, working etc. This relates to the

luxurious sun care products). Similarly, adults

Sun Protection Factor (SPF) required, e.g. the

with children are another broad segment with

SPF required for a holiday in Egypt differs greatly

differing needs.

to outdoor work in the UK.

Demographic segments are broad. As research

This is one of

shows, the level of awareness of sun care

the reasons

transcends income and social class.

why NIVEA Sun produce a wide range of sun

segmentation variable. Consumers’ attitudes

protection from

towards sun care influences their purchases.

SPF 4 to 50+.

NIVEA Sun conducts market research to

Research has

understand user attitudes. This involves

shown that

questionnaires using a nationally representative

consumers

sample, and more intensive research with small

often purchase a variety of SPF’s for differing

groups, to discuss individual skin protection habits

needs and occasions. This factor alone however

and preferences. This has identified 5 distinct groups for protection and after sun:

is not an accurate means of segmenting markets.

• Benefit sought - protection is the primary benefit but the preference by which this is delivered will

• Concerned Consumers – ‘a good tan is not

vary by segment, e.g. convenience is important

important’. These consumers are conscious of

to men (so they choose spray applicators).

the harmful effects of the sun and purchase sun

Parents want to provide maximum protection for

protection products that are most likely to offer

children (high SPFs and coloured products are

high sun protection factors.

therefore important).

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• Attitudinal – this is the most important

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The benefit sought differs across the attitudinal segments. Whilst ‘Concerned Consumers’ want a very functional product providing ‘adequate protection’ (e.g. SPF 30), ‘Naive Beauty Conscious’ may want a more luxurious sun protection product
(e.g. mousse).
This also applies to consumers with special skin types, who require a more specialised product.
Recognising that this is a separate segment, NIVEA
Sun has formulated sensitive skin products.
Self-tan Segmentation
The segmentation variables will differ considerably for the self-tan range of products. This is concerned primarily with providing cosmetic benefits.

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The key proposition of the NIVEA Sun brand is protection. The main elements of this proposition include: • making sun care simple
• educating that protection can lead to safer tanning • reinforcing the immediate protection message.
This last point relates to the immediate protection formula which was developed by NIVEA Sun and launched in 2005 to provide proven instant and full
UVA and UVB protection. This was researched and developed following consumer studies which found that consumers often failed to apply sun screens
20-30 minutes before sun exposure (despite packaging instructions).
NIVEA Sun follows a strategy of product innovation, in order to achieve its long-term objectives. This takes the form of timely new product launches to enable the brand to more closely meet the needs of different types of consumers.
Some good examples of innovative launches include: • spray products that are easy to apply (particularly appealing to men)
• a coloured formulation for children’s sun products (making application more fun)
• reformulation of the products to offer immediate protection. GLOSSARY
OF TERMS

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The Times Newspaper Limited and ©MBA Publishing Ltd 2006. Whilst every effort has been made to ensure accuracy of information, neither the publisher nor the client can be held responsible for errors of omission or commission. NIVEA, NIVEA Sun, ELASTOPLAST, ATRIXO and EUCERIN are registered trademarks of Beiersdorf AG, Hamburg.

05_Brand strategy

For 2006, NIVEA Sun has developed ‘Long Lasting Water
Resistance’ for children, a product which has increased the water resistance of sun protection from
80 minutes to 120 minutes. This allows children to be safer in the sun for longer.
In addition NIVEA Sun creates innovative marketing communication. Women are the main purchasers of sun care for the family. This is reflected in above-the-line (advertising) communications, generally targeted towards a female audience. However, in 2005,
NIVEA Sun targeted male consumers with its immediate protection message in press advertising. This was presented in a fun and ‘non-serious’ way in order to appeal to a male audience. Children are not purchasers of sun care. However,
NIVEA Sun recognises it can play an important part in educating children from a young age to be safer when in the sun. Every year, a ‘Sun Sense’ primary school resource pack is distributed to over 10,000 teachers to communicate this key message.
Continual segmentation is vital to fully understand consumer needs and changing habits. This helps provide appropriate products to meet their needs.

06_Conclusion
Segmentation is the tool that enables NIVEA Sun to identify different groups of customers, and provide the best possible products to meet individual requirements. The sun care market consists of different consumers with differing needs. The UK has the biggest sales of NIVEA Sun across Beiersdorf within Europe. Understanding segmentation enables
NIVEA Sun to maintain a Number 1 value position in protection and after sun in the UK.

Attitudes: beliefs and views of consumers that affect the way they behave/purchase.

Purchase penetration: the percentage of people buying into a category.

Demographics: features of different population groups e.g. male/female, young/old.

Segments: parts of a market made up of similar consumers. Portfolio: a range of brands/products made by one company.
Product category: a grouping of similar brands/products. Usage penetration: the percentage of users of a product. This differs from purchasers as the person buying this type of product is likely to be buying for multiple users; e.g. a parent buying for the family.

For more information about Beiersdorf please browse:

www.beiersdorf.com

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NIVEA Sun

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