Cosmetic Classification in Depth - Nivea Hand Lotion or Cream - Case Study Example

Company Information

Nivea is personal care brand produced by a company in Germany owned by Beiersdorf Global AG. The company was formed in 1882 by Paul Carl Beiersdorf who was a pharmacist and now its products are marketed globally (Roberts & Piller, 2016). Nivea hand lotion or cream is a special brand white in color produced by the company and marketed all over the world. The protective hand lotion was introduced in 1955 and used the name Atrix and together with the other products it was ready for distribution in the wild (Roberts & Piller, 2016). The other brands for the company include lipcare, body lotion, plaster, and many more sold all over the world. The main competitors of the company’s brands include Johnson and Johnson, 3M Company, and L’Oreal (Roberts & Piller, 2016). Hand lotion by Nivea Company will form the basis for this research, which will explore its features and market.

About the Product

Nivea hand lotion and cream is a special product that rejuvenates the skin especially if it is dry. It has the capacity to repair dry hands and does not leave the hands greasy since is well-absorbed. It works by softening the hands and is best applied after washing and drying them. Another important thing to note about the lotion and crème is that it is long-lasting and is absorbed very quickly. The Macadamia nut oil contained in it helps in replenishing dry hand skin and the cuticles (Vahid & Esmae'li, 2012). It is also a product that is targeted for women between 25 and 49 years for the best results. In addition, the product contains amino acids, which are responsible for the skin moisturization and fortification. Several people in the world love to use Nivea hand lotion for its immediate results. For instance the NIVEA smooth Indulgence hand cream is quite effective in softening hands and elimination of any cracks. The cream and lotion perfectly repairs dry hands and is manufactured in France then distributed to the world markets. The main ingredients include glycerin, water, Cetyl Palmitate, Myristyl Alcohol, Stearic Acid, and many others that make it a high quality brand (Dickson, 2016). Its effectives has contributed to its huge sale in many countries including the US and France. One only needs to apply onto the hands and massage until it is completely absorbed. The Nivea brand name is produced for different skins rough, cracked, moist, or scary. Buyers can select their hand lotions from the varieties in the retail stores or supermarkets in different parts of the world. The soothing effect felt after applying it on the hands is great and many are encouraged to use it more. In addition, Nivea hand lotion and crèmes have a unique fragrance which can also attract different customers depending on the taste. The lotion minimizes the loss of moisture, replenishing lost lipids, and replaces the natural barrier for the skin.

The hand lotion is a body care product, which is formulated to be used for different purposes such as moisturizing, softening, and rejuvenating among other many uses (Seckin, 2013). Nivea hand lotion products are known to be among the best beauty products in the beauty market. Other examples of Nivea products are body cleansers, shaving creams, body treatments, body lotions and creams among others. The body lotions and creams are meant for personal care and beauty for both men and women. Nivea brands come with different packs such as tubes and jars of different sizes and colors. These attract customers as well as catering for their tastes and preferences (Seckin, 2013). The products are prized according to size, formula and the intended purpose. The products are made from natural or organic sources such as macadamia nut oil and others. They as well contain ingredients, vitamins and supplements that are essential for nourishment of the skin. The creams and lotions are used by applying onto the palm then massaged into hand skin. Once applied, the cream enhances the smoothening of dry hands and also they soften and protect the skin. The cream is quickly absorbed into the skin thus strengthening the skin’s protection barrier. The cream also promotes the smoothening of the skin making it even softer as it helps repair dry hands. The creams and lotions also leave the person feeling flesh, supple, relaxed and attractive. Some are even formulated rough skins, thus they reduce roughness, and dryness, hydrates and protects the skin from further moisture loss. If used regularly, the skin remains moisturized even after washing and they can as well take care of the wrinkles. The creams and lotions are formulated such that there are those made for dry skin and those made for people with oily skin. The lotions and creams are enriched with a variety of supplements for better results. Some brands contain sunscreen, which protect the skin from damage by ultra violet rays from the sun.

Promotion and Brand Values

Nivea advertises its products with campaigns aimed at convincing people to use its products and enjoy the benefits. The adverts for hand lotion are aired on televisions, radio, sampling, and print media among others. Beautiful and elegant ladies and young men pose on magazines and televisions showing smooth hands after using Nivea hand lotion (Bilgram, Bartl & Biel, 2011). Recent developments have involved expansion of the market and packaging of smaller parks to cater for the low-end consumers. The company also sponsors football leagues by painting stadiums which helps in availing the information to the public. The company also uses famous models on magazines, televisions, and online advertisements which draw many people to use the product (Neudecker, Barczewski & Schuster, 2015). Many people in the world are only aware of the body lotions and face creams and the company has to make them know that hand lotions and creams also exists and are equally important. This will help in increasing the number of people going for the product and increase its profit margins. Product awareness is the most important part of marketing a brand and Nivea Company is doing this. Since it has been able to establish its markets in different countries it means that its mode of marketing is good and consumers like the product.

Market

The market for Nivea had lotion and cream is very large, changing, and diverse since the clear and smooth-looking skin is valued all over the world. Every woman is ready to spread huge sums of money to maximize her beauty potential and price may not be a reason for not buying the lotion. The general skin care that includes hand options and body moisturizes was worth $91 million in the UK by 1991 and is still growing (Ricandela, 2016). Men are also joining the market and have contributed to the expanding market for hand lotions all over the world. Technology advancement is driving the market very fast since the product can reach several target markets. Since consumers are eager to try new products with advanced formulas the company has ensured high quality lotion that is preferred by everybody on the globe. Every time the product is being improved and rebranded and consumers always think that it is new product. The company ensures that the product is of high value to ensure that its competitors do not pose a threat to the sales. Nivea hand lotion is a great product and is common in supermarket shelf in many countries in the world including the developing ones. Global marketing has contributed to large sales in the world market since many users prefer it to other products that leave their hands greasy. The packaging of the product is attractive and thus helps in attractive many users who have great value for beautiful skin (Ricandela, 2016). Online marketing is also utilized to reach several clients. The hand lotions and creams are advertised on the internet platforms and the social media and the prices are attached. Those interested with the product can pay for them and wait for their delivery.

Achievements

The Nivea hand lotion brand is present in over 160 nations with the greatest market being in Europe (Hand creams and lotion brands…2014). The brand has a huge market share since Nivea brands are associated with high quality and consumers trust them. This trust is what makes the hand lotion increase its sales in comparison to other products. The mention of the name Nivea is to alert the users since they believe that the commodity is almost perfect and work miracles. It is a brand that is known to sooth, smoothen, heal, and give freshness to the user. Its quality of nurturing users’ hands is one that makes it be preferred in the whole world. Nivea hand lotion is the most trusted brand in the world since the users have noted positive effects after use. It is the leader of modern skin care and tends to attract several consumers all over the world. Since it promises to care for the entire family, Nivea hand lotion is highly preferred in many homes since everybody including children can use it. According to the 2014 statistics the most widely used hand lotions and creams in the US are Nivea brands (Hand creams and lotion brands…, 2014). The number of people estimated to be using the product is over 8.35 million and the number is expected to grow.

Issues with the Product

Although Nivea products are valued and trusted by consumers there are reports that some hand lotions labels as pure and natural contains some harmful chemicals. Some of the chemicals found include Methylisothiazolinone which is a preservative and found in floor and window cleaners (Dickson, 2016). Although is labeled 95 percent natural such ingredients can harm the users’ skin if applied for a long time (Dickson, 2016). The Soil Association argues that this type of chemical can cause cancer to the user in addition t causing nerve damage. This is one challenge the company is struggling to deal with to protect its brands. The company needs to come clear on the issue of the ingredients it uses in the brand to build customer confidence. If some are harmful then the manufacturer must not indicate that the product is natural but should hint that some chemicals have been included. This is because some people are allergic to some of the chemicals and indicating them on the pack or tube may help to safe the situation. If the chemicals are very harmful to the human skin such as those that cause cancer, it is wise to eliminate them from the product completely. This can help in building complete trust with the consumers and reduce competition from other products. The company has not had many issues and is expected to serve the entire world market with minimal difficulties.

Government, Economic, and Political Environment

The stability of various governments where Nivea Company sells its brands is very important if it has to increase its profit margins. Is a country has high taxes for imported products then it becomes expensive for the consumers to buy lowering sales. Nivea hand lotion faces similar challenges since many find it too expensive to purchase (Shahrokh & Dadvand, 2014). The product must be safe for the government to allow its sale in the country as the authorities will not tolerate anything that can harm its people. In addition, trade regulations also affect operations of Nivea Company and its distribution of Hand lotion and cream in various countries. Foreign trade policies and regulations for imports and exports of products act as a barrier to reach certain markets. In some countries some contents in the lotion may be prohibited which discourages the company from venturing such markets. Political environment also hinders penetration of the product in certain markets of the world. Increase in interest rates affects the consumers’ ability to purchase expensive products leading to low sales of hand lotion (Shahrokh & Dadvand, 2014). The rules of advertising must also be followed in every country as they should never mislead the public. Competition is high since other companies are also launching their hand lotions and crèmes and Nivea has a big challenge to overcome them. Consumers are now very conscious on the products they use on their skin. This calls for the company to ensure that the hand lotions and other bodycare products are free from skin damaging elements such as mercury.

Sale Points of Nivea Hand Lotion and Cream

Most of Nivea products can be found almost everywhere in the continents especially in the cosmetics shops and supermarkets. However, the major sellers that specialize in online sales include Amazon.com, WalMart.com, CVS.com, Drugstore.com, Target.com, and WalGreens.com among others. The new brand Nivea Q10 anti-age hand cream ensures smooth hands and reduces the fine lines of wrinkles (Nivea, 2016). This product reduces sun burns and spots that tend to appear on the skin due to aging. This is one of the products distributed by the online sellers to reach many consumers at different locations of the world. With improvement in technology marketing of Nivea products has become quite easy as people can order online and wait for the free delivery of the product. Nivea hand lotion is one of the most valued for people who want to keep their hands moisturized all the time. Considering its effectiveness many are going for it leading to high sales for the company. There are several outlets in the world although one can get the product very easily from beauty shops, retailers, and other distributors. The most important thing is to get quality products and this is the greatest aim of the company. Having a hand lotion and cream that will give quality results to the user and build a strong customer relationship is the main objective