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NIVEA

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annisa swavira

on 14 September 2015

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Transcript of NIVEA

.
THE DEODORANT BUSINESS
NIVEA
CASE ANALYSIS
IMMERSING IN THE NET
SYNDICATE 7
CONSUMER BEHAVIOR
BACKGROUND
"Is now the time to tell my marketing and research collegues about my undercover project on identifying and solving a major consumer need?"-
Dr. Stefan Biel, scientist & leader of Beiersdorf's Deodorant Prototyping reasearch group
He was about participate in joint marketing and R&D meeting
Key customer problems that R&D had to solve for the next generation of deodorant products
He had tried to argue for an anti-staining deodorant, but could not convince the internal stakeholder groups of the relevance for consumers
BEIERSDORF
"
Our Outstanding brands are at home all over the world
.

The
NIVEA
brand has enjoyed market success for over 100 years and is
the world's largest skin care brand today
. Our success in all skin care categories and market segments is attributable not only to NIVEA but also to our other leading brands :
Eucerin for medical skin care and La Prairie for luxurious anti-aging care. Other sucessful brands, including Hansaplast/ Elastoplast, Labello, 8x4, Hidrofugal, Florena, atrix, Aquaphor, SLEK, and Maestro - round out our portofolio
.

Beiersdorf's brands are specially geared towards regional markets, individual consumer needs and speccific area of application"
Founded in 1882, was a cosmetics company based in Hamburg Germany
In 2012, generated 6,04 billion (euro) in revenue
17.000 employees worldwide
Europe was its most significant market (57%) revenue in 2012
The largest share of revenue within Beiersdorf was generated by Nivea
1911
- NIVEA was launched and became the biggest skin care brand in the world and was regarded as the most trusted and highly regarded skin care brand in Europe for 12 consecutive years. G
oals
:
"better skincare for everyone"
1919
- NIVEA Soap
1920
- NIVEA Hair Milk
1922
- NIVEA for Men
1930
- The NIVEA BALL - Fun in the sun
1951
- Beiersdorf entered the deodorant market
1961
- The deodorant was patented. Introduced first deodorizing soap - 8x4 brand
1991
- NIVEA offered a deodorant in its product portofolio
2000s
- NIVEA skincare (today, tomorrow for life) , A Global Sucess - a revolution in skincare, Bringing NIVEA to the world

Beiersdorf's Main Competitor - Deodorant Market
beiersdorf
1980s
,
Rexona a leading deodorant brand of Unilever
(protect againts sweat and odor for 24 hours)
Rexona
was the first brand to sucessfully address an issue beyond efficacy when it brought its Crystal product range to market. This
new deodorant technology promised to prevent white stains on darkclothes
2005
,
NIVEA followed Rexona
with deodorant to protecting white traces on black clothes
2012
,
NIVEA was the second biggest deodorant brand in the world
and number
one
in the category of
skin care benefits of deodorant in more than 30 centuries.
CREATING NEW PRODUCT AT NIVEA
NIVEA product development on NIVEA
based on consumer insight as the starting for innovation
NIVEA motto
" PUT THE CONSUMER FIRST"
CCU
: Consumer Connectivity Unit
" a central unit that
collected , analyzed, interpreted
consumer data across product category in order to changes consumer needs"
Function
: work by analyzing data from existing source and collecting new data by survey, FGD, and interview
What Must Learned For Future Product Development?
The project was identified as “important” at an early stage, so Nivea were able to concentrate their resources.
Right from the start, Nivea had a feeling that we were working towards a milestone comparable with the introduction of new product
They must communicate their Research and Development
findings to Marketing in good time;
shows how they can launch major innovations on the market
very quickly. But: you also have to give the researchers
the time they need to get to the bottom of their discoveries.
It’s only then that something really great will emerge.

Innovations ensure the long-term future of their business. They are based on our in-depth research and development work, which draws on more than 125 years of expertise.
They invest continuously in research and development activities to enhance their international competitiveness. They spent €118 million (previous year: €109 million) on this during the period under review. This represents 2.3 % of sales (previous year: 2.3 %). At a global level, 855 (previous year: 853) members of staff were employed in research and development.
Innovative Skin and Beauty Care
Their long-term research and development work focuses on: Skin and hair biology
Identifying principles of action and active ingredients for skin and hair
The development of biophysical detection methods
In addition to these focuses, They also conduct research in the area of wound care.

R & D
R & D Expenses 2003 - 2006
To Really Get to Know People, You Have to Get Close to Them
Being
close to the consumers
is important to us. After all, Paul C.
Since then,
they consistently pursue the internationalization of our business
: they are globally successful and focus on important promising regions like Asia, Eastern Europe and South America.
Through direct contact to consumers around the world we gain a deep understanding of their needs.
By talking to them and getting familiar with their personal environment we develop an authentic picture which helps them to gain insights and to generate new ideas.
Offer them completely new brand experiences, such as with the NIVEA Haus in Hamburg. By doing get to know consumers so well that can meet even very specific needs. Thus, for example,
in Asia we are very successful with whitening products that are a perfect fit with local beauty ideals.
As
they get close to consumers
, they get to know them that decisive bit better.

4 stage process in Product Development and innovation at NIVEA
Discovery
Concept and Feasibility
Development and Scale-Up
Production and Roll-out

This process took between 4 – 7 years

DISCOVERY STAGE
THE GOAL
: To forecast generic trends and need gaps early on in the process and condense these consumer insight

Nivea’s consume experts tried to see the big picture and craft a fresh, inspiring, consumer centric insight
Find the insight through
“SEED” test
SEED test need 4 requirements:
Spark Recognition
Easy to understand
Echo and extrapolate
Directional
SEED TEST
Set of Market Research Methods
FGD
Survey
Interview
Gained market feedback & answer the question
BATHROOM STUDIES
Certain requirements for an
idea to be considered a concept in terms of detail and proof of feasibility
Sprinter Test
= quantitative concept test evaluating customer acceptance and sales potential within a group of target customer.
Sample of target market based
on demographics, attitudes, and usage
The testing was standardized with
previous concept, evaluation,ensuring comparability, and standard testing quality
After all this concept got the go-ahead, the actual development and production followed with the next phase.

CONCEPT & FEASIBILITY
DEVELOPMENT & SCALE UP
Scaling up =
to improve their impact and effectiveness.
The possible approaches and paths to scaling up, the space that has to be created for interventions to grow, and the role of evaluation and of careful planning and implementation
Scaling up
is about political and organizational leadership, about vision, values and mindset, and about incentives and accountability-
all oriented to make scaling up a central element of individual, institutional, national and international development efforts.

PRODUCTION AND ROLL OUT PHASE
This phase such a
final process of product development and innovation
to make new product of
Nivea
.

After 3 phases passed,
than the product agreed by the internal
, last the product
can go into the production and roll-out to the market.

ACCEPT !!
FINDING THE NEXT BIG THING
The hunt for major need gaps and disruptive innovation for NIVEA deodorant
R&D had been working on an aerosol deodorant with push technology for 7 year
Nivea offer unique benefit and fill in a need gap
Nivea need to make people listen and attract their attention -> so they will consider their deodorant a good product
Nivea invented “double effect” deodorant :
Hair grew back more slowly
Silver Protect :
-> Anti Bacterial
-> Masculine Appeal ( Calm & Care : Regenerated The Skin After Shaving)
WHO'S PROBLEM IT IS ANYWAY?
ISSUES : STAIN PROBLEM
WHY USING "NETNOGRAPHY"
Like Ethnography, Netnography is
natural, immersive, descriptive, multi-method, and adaptable research
Compared to Ethnography
:
Less time consuming
Less costly (Ethnography requires significant investment than netnography)
Can be conducted in a manner that is entirely unobtrusive to consumers
Did not attract competitors’ attention
Provided completely new “field behind the screen” for marketing research
Online conversations tell researcher things that consumers might not get to talk about when directly asked question

NETNOGRAPHY?

Netnography
,” or ethnography on the Internet, is a new qualitative research methodology that adapts ethnographic research techniques to the study of cultures and communities emerging through computer-mediated communications
New digital tools to both
generate and evaluate product and service idea.
This approach capitalized on consumer conversations available in publicly accessible online communities in social media sites.

HOW
TO
USE?
Netnography rely on the sheer endless amounts of data available from open online conversations between consumers
Research designed to get answer without asking question or influencing consumers.
Consumers’ view when they expose their true feeling facilitated by anonymity

Systematic Netnography Insight Process by Hyve
HYVE'S NETNOGRAPHY PROCESS
Analysis of consumer conversations in Brazilian, German, and English speaking social media sites to r
eveal consumers’ attitudes, needs, wishes, and concerns in the domain of deodorant

The findings were painted a vivid picture of the emotional stress consumers felt.

Majority of consumers tended to ascribe the stain problem in the deodorant domain.


It provides Nivea researcher with starting point to explore the causes of stains and possible solutions “in-vitro”

8 different types of stains and removal strategies discussed by consumers in online communities

Jungle of assumed cause and effects. Excerpt of explanations and myths from consumer conversations :

CO-CREATION WITH CONSUMER
Based on thought that consumers actually innovated and solved their own problem.
“translate needs to actual solutions”
Average consumers could be helpful by expressing need, they typically provide little help in creating novel product ideas.
Biel involved only most insightful and active users in the solution finding process.
“Lead user concept”
:
Lead user concept seeks out user who experience needs today that will become general solution in the future.
These users have high motivation to find solution to their problem

Co- creation consumer
prototypical creative process of lead user session
Quantifying The Need Gap
Consumers useful to help simplify the process of considering alternatives within Biersdorff by
providing clear preferences for the various potential concepts

Hyve’s design an online environment with interactive elements
2.000 consumer felt engaged with company
15.000 comments were submitted in each discussion about idea
Consumers invited to define further essential features, possible fields of applications and slogan

Applying
software-based content analysis
, thousand to comments clustered and interpreted in a deductive and inductive fashion

Online environment to collaborate consumers
Hyve's Netnography for NIVEA
CONCLUSION?
ANY QUESTION?
THANK YOU FROM US
Annisa Swavira
Anisa Gita
Zahnaz Mutiara Bintang
Rillyan
Nivea Brand Ambassador
Anisa Gita
Annisa Swavira
Rillyan Nur
Zahnaz Mutiara Bintang
Full transcript