HERE COMES THE SUN(SCREEN)!

NIVEA U.K.

Introduction
Beiersdorf is the international skin care company behind the leading brands NIVEA, ELASTOPLAST, ATRIXO & EUCERIN.
Over the past 10 years the company has grown rapidly in the UK by developing a balanced & 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 & body products to men's shaving gels, through to deodorants
& sun care products. NIVEA identifies market segments that meet individual consumer needs. Segmentation occurs when a
market is split into sub-markets (segments) which can respond in similar ways to different marketing activities. Each segment:
contains consumers with similar needs or tastes is best satisfied by products targeted to meet their specific needs. This can be at a
macro level (e.g. total health & beauty market) & at a micro level (i.e. within a specific category). NIVEA Sun is a major
international sun care brand, recognised worldwide as a leader in sun care research & devp. The UK market is worth £173.6m
with an overall category market penetration of 33%. Sun care is a serious issue for all & the protection message is key to the
NIVEA Sun brand proposition. NIVEA Sun appeals to & is used by men, women & children with quality products to meet all
needs. The brand also aims to bring fun to the market through recognising situations when sun care products are applied.

The three main product segments

The diagram 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. 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 & avoiding midday
sun). Protection is the largest segment in the sun care market with a market 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). When choosing sunscreens there are two important factors to consider:

a. 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. Skin type applies to children, as well as adults. Children’s skin is thinner & its repair
mechanism is not yet fully developed. As a result they require extra protection & sun screens that are specifically
developed for their skin.

b. Location: NIVEA Sun provides a range of lotions & sprays targeted at different climates & 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.
 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 & after sun, the self-tan category is concerned mostly with cosmetic appeal. Many adults use
self-tan to have an all year round sun kissed glow.

Brand Vision

A vision paints a picture of what you are trying to achieve with your brand in a simple sentence. NIVEA Sun's vision is " To be the
Number 1 brand in the UK sun care market in penetration, sales & likeability."

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.

Consumer segmentation

Segmentation has been vital to the success of NIVEA Sun & allowed the brand portfolio to grow to over 40 products, all meeting
clear consumer needs. The following factors are used to develop & define the sun care segments: 
 Demographics - different groups of consumers behave differently (factors relate to age, gender, etc). Demographic
differences relevant to NIVEA Sun include different buying behaviours between men/women & adults with children. There is a
stark contrast between awareness & usage of sun care products between men (who prefer convenience) & women (who enjoy
more luxurious sun care products). Similarly, adults with children are another broad segment with differing needs. Demographic
segments are broad. As research shows, the level of awareness of sun care transcends income & social class.

 Attitudinal – is the most important segmentation variable. Consumers' attitudes towards sun care influences their
purchases. NIVEA Sun conducts market research to understand user attitudes. This involves questionnaires using a nationally
representative sample & more intensive research with small groups to discuss individual skin protection habits & preferences.
This has identified 5 distinct groups for protection & after sun: 
o Concerned Consumers 'a good tan is not important'. These consumers are conscious of the harmful effects of the
sun & purchase sun protection products that are most likely to offer high sun protection factors
o Sun Avoiders - avoid sunbathing & 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 apply products such as sprays.
o Conscientious Sun Lovers - adore sunshine & like to use a trustworthy brand with suitable protection factors.
They know about sun care & use this knowledge to purchase suitable products for their skin.
 o Careless Tanners - adore the sun but don't protect against harmful dangers. Tanning is important to this group,
not protection. They don't worry about the long-term damage to their skin & may purchase a low SPF product, if
any at all.
o Naive Beauty Conscious - like to have a good sun tan. They recognise that sun protection is 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) & be more inclined to purchase an added-value offering such as a mousse.
Consumer segments were identified by analysing answers to questions about attitudes.
The two main aspects of attitudes relate to:
o Usage occasion (when) e.g. holiday, outdoor sports, gardening, working etc. This relates to the Sun Protection
Factor (SPF) required, e.g. the SPF required for a holiday in Egypt differs greatly to outdoor work in the UK.
This is one of the reasons why NIVEA Sun produce a wide range of sun protection from SPF 4 to 50. Research
has shown that consumers often purchase a variety of SPF's for differing needs & occasions. This factor alone
however is not an accurate means of segmenting markets.
o Benefit sought - protection is the primary benefit but the preference by which this is delivered will vary by
segment, e.g. convenience is important to men (so they choose spray applicators). Parents want to provide
maximum protection for children (high SPFs & coloured products are therefore important).
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.

Brand proposition
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 & launched in 2005 to provide
proven instant & full UVA & UVB protection. This was researched & 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.

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 &
'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 & changing habits.
This helps provide appropriate products to meet their needs.

Conclusion
Segmentation is the tool that enables NIVEA Sun to identify different groups of customers & 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 & after sun in the UK.
Problem
The sun-creams market in India is in its nascent stage. Attitudes towards sun-exposure are also very different in a tropical country.
While it is an established player in the moisturising segment, Nivea is planning a foray into the Indian sunscreen market. Conduct
a segmentation analysis of the Indian sun-cream market & identify Nivea’s target segments. Your analysis can use, but not be
limited by, trends & data (non-exhaustive) from the global sun care industry available in the appendix. Formulate a suitable
positioning for Nivea’s offering.
APPENDIX
INDIAN SUNSCREEN MARKET FACTSHEET

KEY SUNSCREEN MARKETS (FOR Sun Pharma)