"The unisex products are becoming more obsolete," said Gabriela Elani,

home and personal care analyst for market research firm Mintel.

Since 2012, beauty and personal care launches specifically targeted at

men have increased globally by more than 70 percent, according to
Mintel. In 2014, total U.S. sales for the men's personal care market hit
$4.1 billion, up 6.7 percent from 2012 and 19 percent from 2009, making
it one of the fastest-growing segments of the beauty industry. Mintel
predicts sales will grow to $4.6 billion by 2019.

"Men want an upgraded experience," said Matthew McCarthy, senior

marketing director of antiperspirants and deodorants at Unilever, who has
also been instrumental in the company's skin and hair care brands. "Guys
are more discriminating today than ever. They want quality and
personalization that meets what they are looking for," he said.

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One hundred million dollars a year in sales growth to 2019, and the slower
growth over the next five years may not seem like a sales juggernaut, but
the mampering trend comes at a time when many traditional personal
care categories for both men and women are showing flat sales. And the
slowing growth overall in the personal care market makes new, targeted
products critical to the industry.

Antiperspirant and deodorant have traditionally been major drivers of

growth, but Mintel states that the men's skin care segmentwhich
consists of body care and facial care productshas experienced the most
significant increase, with sales gains of 57 percent from 2009 to 2014. The
smallest segment? Hair care.

Top-selling men's personal care products

1. Deodorant/antiperspirant

2. Shampoo

3. Bar soap

4. Shaving gel/cream
5. Shower gel

6. Moisturizing lotion/cream

7. Conditioner

8. After-shave

9. All-in-one shower product

10. Facial cleansing products

11. Facial moisturizers

(Source: Mintel, 2014)

Mampering's momentum

So what is behind the rise of mampering?

Primarily driving the charge are the male millennials, now moving into the
25-plus age group. "Younger guys are willing to try lots of stuff because
they are growing up in a world where it's OK to care about your
grooming," McCarthy said. "Men have been engaged in grooming products
for hundreds of years, but it used to be around fragrance and shaving.
Now it's become so much more than that," he added.

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Much of the growth has been supported by social media.

"Guys now have access to a massive palette of inspiration because of

their connection to the world around them," McCarthy said. "When I was
younger, I could only look at my peer groupmy brother, his friends, my
friendsand I would pick up clues and cues from them to develop my own
personal sense of style. Guys today are connected globally. So if there's a
really cool trend happening in Brazil or Japan, guys can find that out right
away."

"They are not just simply female prestige products we've put into a dark-
colored package. Creating both brands and products that are designed
with guys in mind is the core part of our success." -Matthew McCarthy,
senior marketing director of antiperspirants and deodorants at Unilever

Elani also believes that the population growth among the U.S. Hispanic
and black communitiesexpected to increase 14 percent and 7 percent,
respectively, by 2019continues to be a positive driver for the male
personal care market. "They 'overindex' in their use of different types of
personal care products, most notably body care and facial skin care
products," the Mintel report said.

Overall, 59 percent of American men say personal care products boost

their self-esteem, and 28 percent say they are concerned about dry skin
and visible signs of aging. Thirty-seven percent use facial cleanser as part
of their regular grooming routine, while 22 percent use exfoliating scrubs,
17 percent rely on anti-aging products and 12 percent use eye cream.

Groomed for success?

While companies such as L'Oreal and Beiersdorf have channeled

substantial investment into their Men Expert and Nivea Men skin care
lines, respectively, and are seeing growth, men still believe these
companies are associated with women. "The traditional men's products
are doing incredibly well," Elani said. "Old Spice, Axe, Dove Men+Care.
These brands are known for that."

Elani said that in order to continue growing men's grooming at an

accelerated pace, brands need to keep integrating new functional benefits
and attributes into male-specific productsfor example, men have thicker
and more oily skin and so creams can be prepared specifically for men
rather than just repackaging existing women's skin creams.

"They are not just simply female prestige products we've put into a dark-
colored package," McCarthy said. "Creating both brands and products that
are designed with guys in mind is the core part of our success."

Time is also of the essence, and the personal care companies need to
offer time-saving benefits, as most men want their grooming routine to
run no more than 30 minutesfor example, combining several products
into one, such as a combined shampoo, conditioner and body wash. Some
body washes now offer built-in deodorant protection as well.
For the time being, Unilever and Procter & Gamble remain the market
leaders for men's grooming, accounting for 62 percent of men's personal
care product sales, according to the Mintel report. P&G maintains its
control in men's grooming through well-known brands such as Gillette, Old
Spice and Clairol for Men. Unilever's Axe is currently the largest men's
grooming and fragrance brand in the world, excluding shave, and its Dove
Men+Care is the fastest-growing brand in men's personal care.

Assess the Market

In a case study published by The Times 100, NIVEA revealed that its first marketing
planning step was to conduct an evaluation of the business, its brands and products.
This included an assessment of the brands position and the state of the market. A
SWOT (strengths, weaknesses, threats and opportunities) analysis revealed some
surprising facts, including that women are an important target market for NIVEA FOR
MEN because they often buy male grooming products for their partners as well as help
them choose which products to buy.

Set the Objectives

Armed with real data from the SWOT analysis, the integrated marketers at NIVEA FOR
MEN moved on to the next stage of marketing planning: setting objectives. Using
research data to forecast trends, the marketing team set SMART (Specific, Measurable,
Achievable, Realistic) objectives for the NIVEA FOR MEN relaunch. This helped them
set specific targets for increasing sales, growing market share and improving its brand
image.
Market the Brand

Then the fun began, as the NIVEA FOR MEN team advanced to the next stage of
marketing planning and began to devise and carry out integrated marketing tactics.
According to The Times 100, promotion served as one cornerstone of the campaign:

NIVEA sought to build on and develop the approach it had used in the past. In the
1980s, advertising in mens style and fashion magazines along with product sampling
was a major promotional tool. In the 1990s, the company used radio, television and
press advertising together with sampling. Since 2000, there has been a greater
emphasis on consumer needs and an increasing use of experiential activities in the
promotional mix. Experiential marketing is about engaging consumers through two-way
communications that bring brand personalities to life and add value to the target
audience. This helps build an emotional connection between the brand and the
consumers.

Measure the Results

No marketing planning process is complete without evaluation or measuring the

outcomes of the marketing activities against the original objectives and targets. The
NIVEA marketers say continuous evaluation helps them focus on modifying or
introducing new activities to achieve objectives.

NIVEA FOR MEN adopted a range of key performance indicators to assess the success
of the NIVEA FOR MEN relaunch in the UK. It looked at:

Market share NIVEA FOR MEN is market leader in many countries and is
consistently gaining additional market share.
Overall sales Internationally, NIVEA FOR MEN skincare products grew by
almost 20 percent.
Brand image The line was named the Best Skincare Range winner in the
FHM Grooming Award, as voted for by consumers.
Product innovation NIVEA FOR MEN listened to customer feedback and
added products to its line and reformulated existing products.
Through marketing planning, NIVEA FOR MEN continues to take advantage of evolving
male attitudes toward using skincare products.
Introduction
The NIVEA brand is one of the most recognised skin and beauty care brands in
the world. NIVEA creme was first introduced in 1911 and the NIVEA brand now
extends to 14 product ranges worldwide from suncare to facial moisturisers,
deodorant and shower products.
In 1980 when Beiersdorf, the international company that owns NIVEA, launched
its NIVEA FOR MEN range internationally, it broke new ground with its
aftershave balm product. It was the first balm on the market that did not contain
alcohol, which can irritate the skin. It proved to be very popular with consumers.
In 1993, NIVEA FOR MEN developed a fuller range of male skincare products. This
reflected the growing social acceptance of these products with male consumers.
The brand was able to exploit its knowledge of the skincare market. The
companys research showed men mainly wanted skincare products that
protected the face after shaving. Men were willing to buy products that helped
calm and soothe irritated skin caused by shaving.
The NIVEA FOR MEN brand was launched in the UK in 1998. At that time total
annual sales of mens skincare products (facial and shaving preparations) in the
UK were only 68 million with the male facial product sector worth only 7.3
million.
Sales of male skincare products have grown steadily since the launch of NIVEA
FOR MEN and the market in 2008 was worth over 117 million with male facial
products worth 49 million.
NIVEA FOR MEN wanted to increase its share of the UK male skincare market.
This case study examines how NIVEA re-launched the NIVEA FOR MEN range in
2008. This was part of its overall plan to develop the range in the UK. It shows
how the company developed a marketing plan for the relaunch and organised its
marketing activities to achieve its aims and objectives. The study focuses on how
a company can respond to changes in consumer expectations, external
influences and business aims to achieve those objectives.
What is a marketing plan?
A business needs to set its overall direction for the company through a business
plan. This plan sets out how the company is to achieve its aims. The aims and
objectives of a business inform and shape its business plan. A vital part of the
overall business plan is the marketing plan. The relationship between the two
plans is shown in the diagram.
105
Developing a marketing plan
www.thetimes100.co.uk
CURRICULUM TOPICS Marketing plan SWOT analysis Marketing strategies
SMART objectives
GLOSSARY Marketing plan: A plan to identify and then meet consumers
requirements. Aims: The general end purposes towards which an organisation
focuses its activities. Objectives: The end purposes that an organisation or
individual seeks to achieve. External influences: activities beyond the control of
the business that affect its performance and shape its market. These are a
combination of social, legal, political, economic, environmental and technological
factors. Business plan: describes the future activities of the business, across
financial, production, and resourcing issues.
32184_NIVEA:NIVEA STUDY V6 23/6/09 15:25 Page 1
106
Marketing involves identifying, anticipating and satisfying customer needs. A
marketing plan takes the stated aims and objectives and then puts in place a
series of marketing activities to ensure those objectives are achieved. Marketing
plans can cover any time period, but normally set out activities for the next one
to five years at either a business or brand level.
The main sections of the plan cover: SWOT and competitive analysis to
assess where the business or brand is currently and what competitors are doing
objectives what the plan needs to achieve the marketing strategy how the
objectives will be achieved sales forecast by how much sales are likely to
increase budget how much the marketing activities will cost and how the plan
will be financed evaluation how outcomes will be monitored and measured.
There is no set model for a marketing plan. The structure of the plan and the
amount of detail will depend on the size of the brand, the timescale involved
and how the market and economy is behaving. However, NIVEAs marketing plan
for the relaunch of NIVEA FOR MEN follows closely the outline described here.
Assessing the market
The first step in devising a marketing plan is to conduct an evaluation of the
business, its brands and products. This should include an assessment of the
brands position and the state of the market. NIVEA FOR MEN needs to know
what its male customers want and what competitor products exist. As well as
targeting the male consumer, women are also an important target market for
NIVEA FOR MEN. This is because women often buy male grooming products for
their partners as well as helping them choose which products to buy. NIVEA FOR
MEN used a SWOT analysis to help it assess the market. This takes a detailed
look at the internal strengths and weaknesses of the business, as well as
external opportunities and threats in the marketplace.
GLOSSARY Brand: A name, symbol or design used to identify a specific product
and to differentiate it from its competitors. SWOT analysis: Identification and
evaluation of the strengths and weaknesses inside a firm and the opportunities
and threats in its external environment. Return on investment: The return on the
funds invested in the business. Profits: money that is earned in trade or business,
after paying the costs of producing and selling goods and services.
www.thetimes100.co.uk
SW OT
NIVEA FOR MEN identified several strengths
NIVEA FOR MEN was the UK market leading male facial skincare brand* which
gave it strong brand recognition. The company had a sound financial base, so it
had the resources to put together a strong marketing campaign. It also had
staff with relevant skills researchers with the scientific skills to develop
products that men want and marketing staff with the skills to help promote these
products effectively.
One clear opportunity was that the market was growing
NIVEA FOR MEN had seen an increase in the sales of male skincare products
and it wanted a greater share of this market. The company wanted to take
advantage of changing social attitudes. Men were becoming more open, or
certainly less resistant, to facial skincare products.
As the leading male facial brand, NIVEA FOR MEN needed also to be aware of any
weaknesses
Was the product range still relevant for the target audience? Did it have the
right sales and distribution outlets? Was its market research up-to-date?
However, as the market for male skincare products grows, there are threats
Consumers were becoming more knowledgeable and price conscious. They
often expect sales promotions such as discounts and offers. The risk of
competitors entering the market. NIVEA FOR MEN needed to differentiate its
products in order to ensure that, in an increasingly competitive market, its
marketing activity gave positive return on investment in terms of sales and
profits.
* NIVEA FOR MEN the UKs leading male skincare brand (IRI Data to 27th Dec
2008).
32184_NIVEA:NIVEA STUDY V6 23/6/09 15:25 Page 2
Setting objectives
A successful marketing plan relies on setting clear and relevant objectives. These
must relate directly to the business overall aims and objectives. In other words,
the marketing plan must fit with the overall company strategy that is set out in
the business plan. Beiersdorf states its goal as ...to increase our market share
through qualitative growth. At the same time we want to further improve our
sound earnings performance so that we can fulfil our consumers wishes and
needs with innovations today and in the future. This will give us a strong position
within the global competitive environment.
The marketing team set SMART objectives for the NIVEA FOR MEN relaunch.
These are Specific, Measurable, Achievable, Realistic (given the available
resources) and Time constrained (to be achieved by a given date). The marketing
team used research data to forecast market trends over the next three-to-five
years. This helped them set specific targets for increasing sales, growing market
share and improving its brand image.
Beiersdorf wanted to increase its UK market share for NIVEA FOR MEN, but also
wanted greater market penetration for male skincare products. In other words, it
wanted not just a greater share of the existing market; it wanted to expand that
market. It wanted more men buying skincare products. One key aim was to move
men from just considering skincare products to making actual purchases. It also
aimed to sell more male skincare products to women. Research had indicated
that women were often the initial purchaser of skincare products for men. NIVEA
FOR MEN used this key fact as a way to increase opportunities for sales. Another
objective was to develop the NIVEA FOR MEN brand image. The NIVEA brand has
always stood for good quality products that are reliable, user-friendly and good
value for money. The brands core values are security, trust, closeness and
credibility. These values would be strengthened and expanded on with the re-
launch, to get more men and women to think of NIVEA as first choice for
skincare. Marketing strategies
The NIVEA FOR MEN team devised marketing strategies to deliver its objectives.
These strategies set out how the objectives would be achieved within the
designated budget set by the management team.
This focus on product development combined with an emphasis on consumer
needs is a key differentiator for NIVEA FOR MEN. It is a major reason why in the
UK the brand is still the market leader in the male facial skincare market*.
Another cornerstone of the UK marketing strategy for the re-launch was
promotion. NIVEA sought to build on and develop the approach it had used in the
past. In the 1980s, advertising in mens style and fashion magazines along with
product sampling was a major promotional tool. In the 1990s, the company used
radio, television and press advertising together with sampling. Since 2000, there
has been a greater emphasis on consumer needs and an increasing use of
experiential activities in the promotional mix. Experiential marketing is about
engaging consumers through two-way communications that bring brand
personalities to life and add value to the target audience. This helps build an
emotional connection between the brand and the consumers.
107
www.thetimes100.co.uk
GLOSSARY SMART objectives: Framework for constructing objectives in a way
that meets a business aim. Marketing strategies: Longterm plans designed to
enable an organisation to identify and meet the wants and needs of its
customers. Promotion: Making products and services better known through a
range of activities.
Two strategies:
* NIVEA FOR MEN the UKs leading male skincare brand (IRI Data to 27th Dec
2008).
32184_NIVEA:NIVEA STUDY V6 23/6/09 15:25 Page 3
108
It is important to get the promotional balance right. NIVEA FOR MEN promoted
the new launches of its products through a mixture of above-the-line and below-
the-line promotion. The use of sport was a key element here. NIVEA FOR MEN
supported football events at a grass-roots level through its partnership with
Powerleague to build positive relationships with men. This helped create stronger
brand affinity for NIVEA FOR MEN among men. It also allowed the brand to build
and maintain a consistent dialogue with men, which helps to drive sales.
Above-the-line promotion included television and cinema adverts, which reached
a wide audience. By using links with sport, NIVEA FOR MEN aimed to build a
positive male image associated with male facial skincare. The brand also
benefited from press advertorials in popular mens magazines, making the daily
usage of their products more acceptable.
Promotions were used to attract new customers. For example, the distribution of
free samples encouraged trial of NIVEA FOR MEN products which drove purchase.
These promotions have helped build up brand awareness and consumer
familiarity which reinforce the NIVEA FOR MEN brand presence. There is a
dedicated NIVEA FOR MEN website to support its products and provide
information to educate men on their skincare needs. To enhance the brand a tool
called a Configurator was created on the website to help customers specify
their skin type and find the product that best suits their needs. Conclusion -
evaluating the plan
The marketing plan is a cycle that begins and ends with evaluation. The final
stage in the marketing plan is to measure the outcomes of the marketing
activities against the original objectives and targets. Continuous evaluation helps
the marketing team to focus on modifying or introducing new activities to
achieve objectives.
NIVEA FOR MEN adopted a range of key performance indicators to assess the
success of the NIVEA FOR MEN re-launch in the UK. It looked at: market share -
Did the re-launch accelerate this growth and help achieve its market share
objectives? NIVEA FOR MEN is market leader in many countries and is
consistently gaining additional market share. overall sales - Was this in line
with objectives? Internationally, NIVEA FOR MEN skincare products grew by
almost 20%. Its sales in the UK market at retail in 2008 were nearly 30 million
and in line with expectations. brand image ratings - NIVEA FOR MEN was the
Best Skincare Range winner in the FHM Grooming Award 2008 for the fifth year
running. This award was voted for by consumers. It illustrates that NIVEA FOR
MEN has an extremely positive brand image with consumers compared to other
brands. product innovation - In response to consumer feedback and following
extensive product innovation and development, the NIVEA FOR MEN range has
been expanded and the existing formulations improved.
These results show that, in the UK, the NIVEA FOR MEN re-launch met its overall
targets, which was a significant achievement, considering the difficult economic
climate. The marketing plan for the re-launch used past performance and
forecast data to create a new marketing strategy. This built on the brand and
companys strengths to take advantage of the increasing change of male
attitudes to using skincare products
She says: The essence of the brand is about honesty and not conforming to
stereotypes of beauty. That essence is eminently usable for a mens brand.

Colin Hession, managing director of Colin Hession Consulting, adds: At last it

seems Unilever is having a proper go at building on the unique position it has
created in the male grooming category with Axe {Lynx in the UK}. If it works,
Axe users will no longer have to graduate to the opposition, Nivea Men, LOral
Men Expert or Gillette when they grow up.

The niche exists, according to Caroline Wilde, head of retail at brand consultancy
Live & Breathe. She says: Its an unfulfilled market. Nivea had some success so
the market is there but it is not saturated like the female market.

She adds that shower gels and deodorants are a safe entry to the male market
where face creams and beauty products are less popular.
To its credit, Dove understood that its existing brand would be a non-starter for men. So they
revamped their brand for menand so far, theyve been successful. Below are three lessons
you can learn from Dove's success:

1) "Disruptive" innovation is the most powerful form of innovation. Dove shook up the
market for male personal-care products. They also stepped outside of the paradigm they had
constructed for themselves as a womens brand. They generated headlines and caused
consumers to do a double-take. How can you disrupt the market for your products and
services?

2) Pay close attention to your marketbecause timing is everything. Dove was well
aware of the evolution of the male customer. The market for mens products had been (and
still is) rapidly expanding, and the idea of a product designed to "take care" of men was
much more accepted than it would have been 20 years ago. How is your market changing?

3) Think outside the box. Particularly brilliant was Doves creation of their well-packaged
shower scrub. It gives men a means to literally connect with their signature body wash
product, while at the same time further differentiating it from Doves traditional female-
skewed brand. Not only does it have practical application, but the masculine color palette
and package design maximizes its appeal to their target customers. What can you do to
make your brand even more appealing to your market?

Unilever has made men the focus of its biggest 2010 launch for its biggest personal-care brand,
Dove. Unilever sees a $700 million opportunity to grow the men's personal-care market in
categories where it competes -- essentially personal wash, hair care and deodorants -- a market
currently measured by Nielsen at $2.1 billion that the marketer expects will hit $2.8 billion by
2012.

Dove Men Plus Care significantly increased promotional spending in the last 24
months ended October 2014 with total promotional spending of $4.5 million. Dove
Men Plus Care greatly increased average discount on promotion from 6% in August
2012 to almost 20% in October 2014. This aggressive promotional strategy has
resulted in increased retailer margins (18.3%). Year-over-year, market share growth
for Dove Men Plus Care has averaged 0.18%.