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Segmentation

NIVEA Sun
01_Introduction
Beiersdorf is the international skin care company behind the leading
brands NIVEA, ELASTOPLAST, ATRIXO and EUCERIN. Over the past
10 years the company has grown rapidly in the UK by developing a
balanced and 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 and
body products to men’s shaving gels, through to deodorants and sun
care products.

NIVEA

General
AllPurpose
Purpose Men’s Female
Soft,
CreamsLotion,
and Body Care
Body Hand Care
Hand For Men
Face Care Visage
Face Care
Creme
Lotions

Bath Care,
Shower,
Soap,and
Soap Talc,
Talc Deodorant
Deodorant Lip Care
Lip Care Sun Care
Sun Care
Shower

NIVEA identifies market Sun care is a serious issue for all and the protection
segments that meet individual message is key to the NIVEA Sun brand
consumer needs. Segmentation proposition. NIVEA Sun appeals to, and is used by
occurs when a market is split into men, women and children with quality products to
sub-markets (segments) which can respond in similar meet all needs. The brand also aims to bring fun to
ways to different marketing activities. Each segment: the market through recognising situations when sun
• contains consumers with similar needs or tastes care products are applied.
• is best satisfied by products targeted to meet
their specific needs.
The UK sun care market (worth £173.6m)
This can be at a macro level (e.g. total health and
beauty market) and at a micro level (i.e. within a
specific category).
NIVEA Sun has 17.5%
NIVEA Sun is a major international sun care brand, value market share.
recognised worldwide as a leader in sun care
research and development. The UK market is worth
£173.6m with an overall category purchase Source: IRI (HBA Outlets, value sales, 52 W/E 24 Dec, 2005)
penetration of 33% (usage penetration is higher).
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2006 NIVEA Sun Range

NIVEA Sun

Moisturising Sun Moisturising Sun Firming Sun Lotion Sensitive Sun Pampering Children’s
Protection

Lotions Sprays SPF6, 15 Lotion SPF30, 50+ Protection Sun Lotion SPF25,
SPF4, 8,12,15,20, 30, SPF6, 10, 15, 20, 30, Satin Sheen Sun Mousse 40, 50+
40, 50+ 50+ Lotion SPF8, 15 SPF 8, 15 Sun Spray SPF20,
Sun Oil SPF4 30, 40, 50+,
Baby Sun Lotion
SPF50+
Moisturising After Cooling After Sun After Sun Tan Regenerating After
After
Sun

Sun Lotion Spray Prolonger Sun Balm

200/400ml

Sun Touch Lotion Sun Touch Caring Sun Touch Face Sun Touch Aerosol Sun Touch Wipes
Self
Tan

Normal to Dark or Spray Cream Normal to Spray Normal to Dark

Fair Skin Dark or Fair Skin or Fair Skin

02_The three main Moderate Hot Very Hot

product segments Skin Type Temperature Temperature Temperature
The diagram above shows the three main product Very Light SPF 30 SPF 40 SPF 50+
segments that make up the NIVEA Sun range. As
Fair SPF 20 SPF 30 SPF 40
you will see, there are a variety of products in each,
which can also be segmented as shown. Normal SPF 15 SPF 20 SPF 30
Dark SPF 15 SPF 15 SPF 30
1. Protection
It is vital that skin is adequately protected against the Children’s SPF 30 SPF 50+ SPF 50+
sun’s harmful effects (although no sunscreen can provide
total protection). NIVEA Sun provides products that 2. After Sun
enable people to be as safe as possible. NIVEA Sun NIVEA Sun is the market leader
also encourages the use of other forms of protection within this segment in the UK, which
(e.g. wearing a sun hat and avoiding midday sun). has been growing rapidly.

Protection is the largest segment in the sun care

market with a purchase penetration of 28%. NIVEA 3. Self-tan
Sun is the protection segment market leader by value In contrast to protection and after
(i.e. more money is spent on NIVEA Sun protection sun, the self-tan category is
products than any other sun care brand in the UK). concerned mostly with cosmetic
appeal. Many adults use self-tan to
When choosing sunscreens there are two
have an all year round sun kissed
important factors to consider:
i. skin type glow.
The chart below shows segmentation by skin type.
The level of protection required for each segment 03_Brand Vision
will vary according to generalised skin types (as A vision paints a picture of what you
seen below): are trying to achieve with your
brand in a simple sentence. NIVEA
Skin Type Very Light Fair Normal Dark
Sun’s vision is "To be the Number 1
Hair Colour Reddish Blonde Dark Blonde Brown brand in the UK sun care market in
Freckles Many Some Few None penetration, sales and likeability."

Sunburn Very Quickly Quickly Regular Slow

Penetration relates to the percentage of potential
Tanning Slowly Slowly Quickly Very Quickly
customers that purchase a product. Sales relate
either to value (the money spent on the product) or
Skin type applies to children, as well as adults.
volume (the quantities sold). Likeability is all about
Children’s skin is thinner and its repair mechanism is
enjoyment. If people like a brand/product they will
not yet fully developed. As a result they require
continue to buy it.
extra protection and sun screens that are
specifically developed for their skin.
One key way to achieve the vision is to provide
innovative solutions to market needs. This has been
ii. location
NIVEA Sun provides a range of lotions and sprays a key success factor for NIVEA Sun. As a brand it
targeted at different climates and to users with different has achieved this through continually segmenting its
skin types. Someone with fair skin may be well consumers in order to:
protected with a SPF 20 product when in England, but • effectively meet consumers’ needs
if they were in Barbados they would need SPF 40. • identify new market opportunities.
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04_Consumer segmentation • Sun Avoiders - avoid sunbathing and using sun

NIVEA Sun
Segmentation has been vital to the success of protection when in the sun - it is seen as a chore.
NIVEA Sun and allowed the brand portfolio to grow These are unlikely to purchase a sun care
to over 40 products, all meeting clear consumer product. Through education, this segment may
needs. The following factors are used to develop be convinced to protect using more easy-to-
and define the sun care segments: apply products such as sprays.
• Conscientious Sun Lovers - adore sunshine
Demographics and like to use a trustworthy brand with suitable
protection factors. They know about sun care
and use this knowledge to purchase suitable
Attitudes products for their skin.
• Careless Tanners - adore the sun but don’t
protect against harmful dangers. Tanning is
Usage Occasion Benefit Sought
important to this group, not protection. They don’t
worry about the long-term damage to their skin
Key Consumer Segments
and may purchase a low SPF product, if any at all.
• Naive Beauty Conscious - like to have a good
sun tan. They recognise that sun protection is
Self Tan Primary Sun Care Users Secondary Sun important but fail to understand about Sun
• Conscientious Sun Lovers Care Users
• Sun Avoiders Protection Factors (SPFs). These consumers may
• Naive Beauty Conscious
• Concerned Consumers • Careless still be interested in the core features of a sun
Tanners protection product (e.g. SPF) and be more
inclined to purchase an added-value offering

• Demographics - different groups of consumers such as a mousse.

behave differently (factors relate to age, gender,

etc). Demographic differences relevant to NIVEA Consumer segments were identified by analysing

Sun include different buying behaviours between answers to questions about attitudes.

men/women and adults with children. There is a

stark contrast between awareness and usage of The two main aspects of attitudes relate to:

sun care products between men (who prefer • Usage occasion (when) – e.g. holiday, outdoor
convenience) and women (who enjoy more sports, gardening, working etc. This relates to the

luxurious sun care products). Similarly, adults Sun Protection Factor (SPF) required, e.g. the

with children are another broad segment with SPF required for a holiday in Egypt differs greatly

differing needs. to outdoor

work in the UK.

Demographic segments are broad. As research This is one of

shows, the level of awareness of sun care the reasons

transcends income and social class. why NIVEA Sun

produce a wide
• Attitudinal – this is the most important range of sun
segmentation variable. Consumers’ attitudes protection from
towards sun care influences their purchases. SPF 4 to 50+.
NIVEA Sun conducts market research to Research has
understand user attitudes. This involves shown that
questionnaires using a nationally representative consumers
sample, and more intensive research with small often purchase a variety of SPF’s for differing
groups, to discuss individual skin protection habits needs and occasions. This factor alone however
and preferences. This has identified 5 distinct is not an accurate means of segmenting markets.
groups for protection and after sun: • Benefit sought - protection is the primary benefit
but the preference by which this is delivered will
• Concerned Consumers – ‘a good tan is not vary by segment, e.g. convenience is important
important’. These consumers are conscious of to men (so they choose spray applicators).
the harmful effects of the sun and purchase sun Parents want to provide maximum protection for
protection products that are most likely to offer children (high SPFs and coloured products are
high sun protection factors. therefore important).
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NIVEA Sun

The benefit sought differs across the attitudinal For 2006, NIVEA Sun has
segments. Whilst ‘Concerned Consumers’ want a developed ‘Long Lasting Water
very functional product providing ‘adequate Resistance’ for children, a product
protection’ (e.g. SPF 30), ‘Naive Beauty Conscious’ which has increased the water
may want a more luxurious sun protection product resistance of sun protection from
(e.g. mousse). 80 minutes to 120 minutes. This
allows children to be safer in the
This also applies to consumers with special skin
sun for longer.
types, who require a more specialised product.
Recognising that this is a separate segment, NIVEA In addition NIVEA Sun creates
Sun has formulated sensitive skin products.
innovative marketing
communication. Women are the
Self-tan Segmentation
main purchasers of sun care for
The segmentation variables will differ considerably for
the family. This is reflected in
the self-tan range of products. This is concerned
above-the-line (advertising)
primarily with providing cosmetic benefits.
communications, generally
05_Brand strategy targeted towards a female
The key proposition of the NIVEA Sun brand is audience. However, in 2005,
protection. The main elements of this proposition NIVEA Sun targeted male
include: consumers with its immediate
• making sun care simple protection message in press
• educating that protection can lead to safer advertising. This was presented in
tanning a fun and ‘non-serious’ way in
• reinforcing the immediate protection message. order to appeal to a male
audience.
This last point relates to the immediate protection
formula which was developed by NIVEA Sun and Children are not purchasers of sun care. However,
launched in 2005 to provide proven instant and full NIVEA Sun recognises it can play an important part
UVA and UVB protection. This was researched and in educating children from a young age to be safer
developed following consumer studies which found when in the sun. Every year, a ‘Sun Sense’ primary
that consumers often failed to apply sun screens school resource pack is distributed to over 10,000
20-30 minutes before sun exposure (despite
teachers to communicate this key message.
packaging instructions).
Continual segmentation is vital to fully understand
NIVEA Sun follows a strategy of product innovation, in
consumer needs and changing habits. This helps
order to achieve its long-term objectives. This takes
provide appropriate products to meet their needs.
the form of timely new product launches to enable the
brand to more closely meet the needs of different 06_Conclusion
types of consumers.
Segmentation is the tool that enables NIVEA Sun to
Some good examples of innovative launches identify different groups of customers, and provide
include: the best possible products to meet individual
• spray products that are easy to apply (particularly requirements. The sun care market consists of
appealing to men) different consumers with differing needs. The UK has
• a coloured formulation for children’s sun the biggest sales of NIVEA Sun across Beiersdorf
products (making application more fun) within Europe. Understanding segmentation enables
• reformulation of the products to offer immediate NIVEA Sun to maintain a Number 1 value position in
protection. protection and after sun in the UK.
© Business Case Studies LLP.

Attitudes: beliefs and views of consumers that Purchase penetration: the percentage of
GLOSSARY
OF TERMS

affect the way they behave/purchase. people buying into a category.

Demographics: features of different population Segments: parts of a market made up of similar

groups e.g. male/female, young/old.
consumers.
Portfolio: a range of brands/products made by
Usage penetration: the percentage of users of a
one company.
product. This differs from purchasers as the person
Product category: a grouping of similar buying this type of product is likely to be buying for
brands/products. multiple users; e.g. a parent buying for the family.

For more information about Beiersdorf please browse:

www.beiersdorf.com