Consumer Behavior Essay

Reginald Jones D03342926 Consumer Behavior Week 7- Course Project “Nivea Active 3” Market Analysis As one of the leading international skin care companies we are close to consumers, offering them compelling, innovative products. With more than 125 years of experience in skin care and one of the world’s most modern research centers, Beiersdorf stands for innovative and high-quality cosmetic products. Our brands are trusted universally – from NIVEA, one of the world’s largest skin care brands (1). The company has introduced a men’s product called NIVEA FOR MEN Active 3.

The strategy of the company is to promote a product that is easily accessible and gives the consumer added value by providing added solutions to everyday life. NIVEA FOR MEN Active 3 is a refreshing shower, a moisturizing shampoo and a foaming shaving gel all combined in one product with a refreshing citrus scent. The revitalizing gel with advanced MICRO TEC-Technology develops into a generous foam that offers mild cleansing for body and hair, allows for a comfortable yet thorough shave and leaves the skin clean and smooth.

Thanks to our Micro-Tec technology, this advanced formula combines high-tech polymers and essential nutrients. The caring nutrients are provided by avocado and sunflower oil extracts. These lipids help restore moisture to the skin making it feel smooth. At the same time, the high-tech polymers create a generous lather, which allows the razor blade to glide gently – giving you a comfortable yet thorough shave. (1). NIVEA for MEN formally announced the new Active 3 June 29 2009, an innovative three-in-one shower agent combining body wash, shampoo and shaving gel in one bottle (2).

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The introduction of this product can be seen as an induction from a growing trend in men’s use of liquid soap as well as overall personal care. The liquid body soap market grew to $733 million in 2008 from $480 million in 2003, an increase of 53 percent, according to Mintel, which projects revenue will top $1 billion in 2013. Men’s formulas are growing more rapidly than women’s and unisex products, from a 17 percent share of overall category revenue in 2005 to 28 percent in late 2009 (3).

Male consumers are paying more attention to their looks. The trend is being driven by male role models which including sportsmen and film personalities. As the gender boundaries are blurring, global firms are increasingly focusing on finding new ways of making profits from the emerging characteristics of men consumer segment. The world market for men’s grooming products is projected to exceed $33. 2 billion by the year 2015, According to New Report by Global Industry Analysts, Inc. 4) An executive of Nivea’s parent company wisely identifies 2 of its primary competitors in his statement in regards to the Nivea Active 3. “The target we have is slightly older than Axe or Old Spice,” said Mr. Maurer, of Beiersdorf. “We’re talking to a more confident guy that knows who he is and what he stands for, and who is past the trying-to-get-the-girl stage (3). ” Axe is the most popular men’s brand, with a 7 percent share of the total body wash market, according to Information Resources, a market research firm.

Old Spice, which introduced body wash in 2003 and is a close second to Axe among men’s brands, with 6 percent of the total market, also emphasizes manliness: it is the official body wash of the N. F. L. and Nascar. As far as the overall market the evoked set of brands in the men’s grooming industry include Procter & Gamble which sits high atop with brands as varied as Head & Shoulders, Gillette and Old Spice, the Cincinnati-based producer accounts for 43% of all industry sales (5).

Also, Dove has made a conscious attempt to move from the awareness set to the evoked set with its amid the high-profile entry of Dove Men+Care (6). Finally, Axe is definitely included in this consideration set within an industry that has seen significant growth in the past few years. The market for men’s grooming products grew to $4. 83 billion in 2009, from $2. 38 billion in 1997, according to Euromonitor International, a market research firm. Axe is widely credited for driving much of that growth, all but creating the male ody spray category and continuing to enter categories that mainstream men’s brands have historically avoided, most recently hair care, with Axe introducing shampoo in 2008 (7). Nivea Active 3 Competition Head & Shoulders Selection of 2-in-1 Shampoo/Conditioners GilletteBody Wash/ Shaving Foam or Gel AxeShampoo/ Shower Gel DoveSelection of 2-in-1 Body/Face Wash Old SpiceBodywash Various BrandsBar Soap (Substitue)

Nivea Active 3 can be found in retail outlets, supermarkets and online sites. The product can be purchased at your local Walgreens or CVS as well superstores such as Target and Walmart. Also, Nivea Active 3 is sold at supermarkets and grocery store such as Dominicks, and Jewel’s. The product can be purchased online on the websites of the previously named retails outlets stores and many more. Nivea Active 3 can be purchased such as Amazon and Ebay, There are numerous outlets and as long as there is significant interest n purchasing the products its presence will remain sound.

Brand Positioning According to the Gillette Company, 94 million men age 15 and older remove hair. Of that 94 million 72% (68 million) use a blade or razor (8). This is the market for the Active 3. Nivea begins to focus on its target through its current advertisements. One of the reoccurring patterns in Nivea’s current advertisements of Active 3 is that all the actors appear to be around the age of 30. This is an appropriate demographic because the strongest value of Active 3 is that it is convenient and time saving.

Also, since the capability to shave with Active 3 is one of the main components of the product, this will appeal to males 30 and older as shaving has become a part of their routine of grooming themselves. The Generational Cohorts, which are targeted are; the latter Generation X and the early members of Generation Y. Also, the actors demonstrate the removal of chest hairs. Since the activity of the actor using Active 3 occurs during the routine of taking a shower, the extension of that routine into chest hair removal would be more prevalent to male 25 and older.

The development of chest hair begins normally during late puberty, usually between the ages of 15 and 18. It can also start later, between the age of 20 and 30, many men in their twenties have not yet reached their full chest hair development. The growth continues subsequently. In older adult years androgens cause thickening of the hair (9). Get more done in the shower! This is a tagline that can be found on advertisements of Active 3. This shows its target to the market of males that would appreciate the convenience and time saving value of the product.

This would be most relevant to professional males who welcome solutions to make their day more productive. The tagline “Get more done in the shower! ” and age of the models illustrate Nivea’s target market as business professional males 25 years and older. The versatility of NIVEA FOR MEN Active 3 is based on a unique formula to fulfill three purposes at the same time: to gently cleanse the skin, to mildly and effectively shampoo the hair and to create the ideal foam texture for a smooth shave for both facial and body hair. Even though the product is so convenient to use, it doesn’t compromise on quality (1).

Nivea has positioned itself convenience in the mind of men who grooming routine consist of showing, shampooing and shaving. It enables men to do 3 grooming activities at the same time using one quality product, Active 3. All of the advertisements for Active 3 communicate its position which should make memory and learning about the product become much easier (book). Customer Analysis The personal grooming activities of showering, shaving and shampooing ones hair address the need to have a clean, good smelling body with clean hair and a cleanly shaved face and body.

In most societies, a clean body and clean hair are apart of the culture. Also, in many societies a nicely shaven face and even body is looked upon a clean cut and acceptable. This places the customer need being address through Nivea’s advertisement as “Belongingness” in Maslow’s Hierarchy of Needs. Active 3 addresses this need and also recognizes the problem of saving time in doing these grooming activities and provides the solution of doing them all simultaneously. The cultures that will consume Active 3 are those whom focus on individualism, hard work and male personal grooming as a norm.

Members of individualist cultures tend to strive for independence and have self-concepts defined in terms of their own aspirations and achievements (10). ” In individualistic cultures, culturally congruent individualistic appeals will generate more favorable attitudes towards the ad, brand attitudes and higher purchase intentions when used for products that satisfy personal consumption purposes rather than a social purpose (11). Acitve 3 is most definitely for personal consumption. It focuses on personal grooming and individual appearance.

How can I save time in my day to make my day more productive? This is the question asked by a culture that values hard work. Active 3 promotes its consumption as a means of convenience and time saving to help construct a more productive grooming routine so that one can get more done in their day, In the Active 3 advertisements, the models have a result of having a freshly shaven face and body with their body and hair appearing to be looking and smelling good. This appeals to a culture where the model represents personal grooming as norm for males within the culture.

Since the advent of metrosexuality, companies have realized that they have a new market to capitalize on men who spend their money on grooming and appearance supplies. Walk through the aisles of any US drugstore, and you’ll notice an abundance of male-targeted personal grooming products, such as anti-aging eye-creams, shower gels and formula facial cleansers, slowly monopolizing the shelves. With so many brands clamoring for their slice of the pie, metrosexuals have out and out become their own market segment. And as sales figures roll in, there is clear evidence that the metrosexual market is indeed quite viable (12).

Nivea’s Acitve 3 serves the metrosexual segment by providing a “new” more efficient way to groom with the quality this segment has grown to expect. One of the most relevant characteristics of the meterosexual subculture is maintaining a well-groomed appearance. The Active 3 influences its purchase by providing this subculture the means to maintain a their appearance daily with ease and convenience. Customer Personality In regards to the five-focus model of personality, the personality of the typical user of Nivea Active 3 is one who is “Open to Experience”.

Their openness includes a general appreciation for art, emotion, adventure, unusual ideas, imagination, curiosity, and variety of experience. The user of Active 3 is open to experience is intellectually curious, appreciative of art, and sensitive to beauty (13). Men’s attitude towards using a shower gel versus shower soap has changed. But a man using shower gel is still a relatively new acceptable action of the male segment. Coupled with the fact that Nivea has produced a product that has a 3-in-1 function, Active 3 is can be defined as “new”.

The personality of the consumers that purchases this product is curious and open to an unusual idea. The purchaser appreciates the imagination of the product and is adventurous in pursuing the new experience of the product in hopes to find a novel grooming solution. The most prominent consumers of the Nivea Active 3 are young, upscale, and keep up with the latest technology and in tune with new products and services. They live in fashionable neighborhoods and where fashionable clothes. They are highly educated professionals who work hard and play hard.

These consumers are within arms length of trendy boutiques, various restaurants, and the popular bars. They enjoy dating, meeting new people and are seen in many social environments. Shopping is an activity that is enjoyable. They shop at brick and mortar as well an online. Traveling and athletics are apart of their many hobbies. They also keep abreast of what is going in the world by reading newspaper, magazine and following events on online websites (Hawkins, 446). The life style of the user segments may have varying life style. These life styles may vary by the age group of the user segments.

The life style that is reoccurring throughout all user segments is traveling, participating in athletics and staying abreast with world events through reading newspaper, magazines and the use of the internet. The variation would be found in the social environment. The older the age of the user segment, the less we will see them at social scenes such as bars and dating arenas. Nevertheless, all user segments have some balance of hard work and social networking. This life style influences their interest to consume Nivea Active 3 for its convenience and time saving value.

All consumers of the Active 3 have general lifestyle patterns of conducting the activities of showering, shaving and shampooing their hair with in close proximities of time. Purchase Decision Process Nivea is commonly included in the men’s evoked set for men’s body wash but it is not in the evoked set for men’s shampoo, or men’s shaving cream. Nivea is in the evoked set for product that can do all three functions since there are very few products that have the same attribute in one solution. For male consumers that are making a decision about their purchase of body wash there is a limited evaluation criterion.

In most cases, men used brand recognition as an initial search process. This is why the most successful men body washes are usually brand extensions to other products men use i. e. Gillette razors/cream or Old Spice cologne. To Nivea’s advantage, brand recognition is not the most important criterion men’s decision. Elimination –by-Aspect is the decision rule for men purchase decision. If it doesn’t smell good, the product is eliminated from consideration. Once the consumer proceeds to the next step in the decision, Active 3 being able two additional functions would shift to a disjunctive decision rule.

Active 3 will be selected over other body washes as it surpasses them on the criteria of fulfilling the shaving and shampooing function since they do have these as options. Since Nivea is not in the evoked set for shampoos or shaving creams the consumer must see the added benefits of two additional functions as a deciding factor. A brand such as Gillette (shaving cream) or Head and Shoulders (shampoo) will have the advantage in their respective functions if the consumer’s basis of evaluation criteria is nominal in their decision-making.

But if Nivea can effectively influence consumers to adopt a compensatory decision rule, their product will be purchased, as it will rate highest on the summary of the consumer’s judgment of relevant evaluative criteria if the additional functions do in fact become relevant in the mind of the consumer. Finally, if the consumer decision is based on a product that can satisfy all 3 functions, shaving, shampooing and showering, that consumer will purchase Nivea Active 3 based on the disjunctive decision rule.

This will be due to the fact there are little to no other products that provide a solution for all 3 functions in one product. The consumers initial purchase process will be limited and the result will be some post-purchase dissonance. The level of dissonance will be low because the product is inexpensive. The consumer has used other products as resolutions to each of the functions provided by the Nivea Active 3. Their information search on the product prior to purchase will include recommendations from family, friends or peers and Internet searches for review and feedback on the item.

There can be more immediate purchase evaluation because the individual can consume the product right away and decide if they are satisfied or dissatisfied. If the consumer is dissatisfied it is likely they will retain the item and store it as a means of “back up” or use the remainder of the product and not repurchase the item. Because it is a personal item, the result will be some negative word of mouth communication. If the consumer is satisfied there will likely be repurchases with no post purchase dissonance. The repurchase decision will become nominal.

Marketing Assessment Product features Nivea can capitalize on the convenience of Active 3 by producing a Travel size bottle. The travel size bottle can be marketed, to be consumed on business and leisure travels. It can be marketed, to be taken to the fitness gym or any other physical activity. This will truly be a “back up” for men whom want to maintain a fresh, groomed body throughout the course of a day. “You Never Know When You May Need It”. Nivea should create an economy sized bottle to be marketed to fitness clubs and sporting facilities.

The Active 3 can be placed in dispenser in showers in these facilities. This would be perfect for those consumers as they can use this for any or all of the 3 functions after their activities. Advertisements Nivea needs more print, TV and Internet advertisement. The product is still relatively new and many consumers do not even know it exists. Before other brands began producing their own 3-in-1 formulas, Nivea should focus on it brand awareness. There should be create a campaign that conveys the same message over a number of advertising avenues so that it can strengthen it brand positioning.

Commercial Content Idea Tagline: “You Can Do it All! ” Models: A diverse group of men of all different races and ethnicities. Problem: There should be several un-groomed or slightly groomed men conducting different activities such as (1) waking up preparing for work (2) completing a work out at the gym (3) getting prepared for a date and/or a night on the town (4) on a business trip Solution: Nivea Active 3 is their solution in each events and the result is a clean, well groomed individual prepared to take on the world “You Can Do It All” Reference Hawkins,D.

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