Project Report - Rotated
Project Report - Rotated
Project Report - Rotated
Report On
[Distribution&
Marketing in nivea]
At
[Parmar Traders]
Submitted in partial fulfillment of requirement for the award
of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
[ANMOL PARMAR]
TABLE OF CONTENTS
Executive Summary
1. Introduction 4-14
Bibliography
Annexure
In recent years, the Indian cosmetic company has undergone dramatic changes and is expected to
achieve significant growth in the future. Increasing disposable income and the tendency of people to
replace use of creams. This study analyzes and understands the factors that determine brand experience
and satisfaction of consumers regarding nivea products in Bengaluru city. Feedback from nivea users
was collected through a questionnaire designed in Bengaluru, and a study was conducted with a sample
size of 100 respondents.
Frequency analysis is done to show that the number of occurrences of each response selected by a
respondent. Chi square was conducted to divide brand experience into three factors naming Product
attributes, buying motives, and Purchase intention and ranking for each factor was done. A Chi-
square analysis was done on Age, Monthly Income, Occupation, Brand Preference of chocolates, and
preferred type of chocolates which had a significant association with the cluster. In correspondence
analysis, Monthly income between 25000-50,000, Age group between 18-25, occupation with Full-
time employment and students.
Introduction
The project taken here aims to understand the overall Nivea products of India, the
product-portfolios of the various player in Nivea-market, different factors that
affect the expansion & success of the Nivea, India are: the challenge &
opportunity offered by the market & changes in the trends of Indian-cosmetic
Industry. The project also covers a brief study of Nivea products in India
regarding above points.
Sales a sale is an exchange between 2 or more people in which buyer will receive
goods, which is either tangible/intangible –service, & /or exchange of assets for
money
Distributions –It is position or arrangement of something in space or time, or among a
group of the people.
FMCG industry in India
Nivea brand of cosmetics had made its new established products in India to challenge
the entrenched rival Hindustan Unilever, indicating the German outsourcing or
imports with local manufacturing.
Nivea has become the leader in leading the market in few sectors, going against the
HUL from the last few years, they have reached more than $100million in our country
(India) and we have gained profits. From last few years, Beiersdorf surpassed HUL in
few products such as deodorant-segment for first-time, having 8.8% share in urban-
market, compared to HUL axe they have 7.6% share. the German skin care company,
which had largest outsourcing products in India. For its parts, India’s biggest beauty
care consumer goods company ponds are making to grow in the market share policy
to
sustain in the market. “Indian perfume in market are losing the graph, with a big
headroom for growth. Our new launches across engage and fog are making great
strong
high growth for sales. Every company are waiting to make their performance best in
the market while gaining consumer believe,”. Since 2010, Nivea India has kick started
its growing it has been affiliated with Beiersdorf’s-operations”. In all the variant the
Nivea entered in different to reach the customer, it has success to become one
amongst 4
needs
– glow, acne – free smooth, supple, soft, beautiful, etc this is the aware and involved
trends consumer who drives the consumption trends and behaviour in the country. We
Producer
have focused Business
our efforts to cater to these specific needs to encourage non –users adopt
Nivea in distribution in sales.
Producer Agent Business
Producer
Agent Distrib Business
There are different types of cosmetics, which is sorted by their flavours, colour,
chemicals used, skin-care routine and many more. Based on that Nivea decides what
to add and what not to add in its products keeping customer skin care as the primary
goal.
Alpha – hydroxyl acids (AHAs) – These acids are famous now a days because of its
nature which helps to reduce the fine line and wrinkles. It also helps in Reducing
irregular pigmentation and age spots and will also help in shrink the proses which are
enlarged.
Polyhydroxy acids – These acids are best for sensitive skin type people, because it
reduces the burning sensation and does not causer stinging.
Beta-hydroxy acid (salicylic acid) – This will help in reducing the acne, penetrating
deep inside the skin and repairs the oil follicles. And it also reduces the damage
caused
by the sun the texture and color of sun damaged skin.
Hydroquinone – They are used for lightening hyper pigmentation, they are the
bleaching agent or also known as lightening agents. They help in reducing changes
caused due to hormone therapy or pregnancy, which are dark spots and age spots.
Kojic-acid – It is used to treat for age-spots and pigmentation of the skin.
Retinoids – They help improve skin-tone, skin-texture, color of your skin and reduce
the pigmentation, fine -lines and skin dehydration.
Copper peptide – It is the anti-aging product which helps to provide smooth, soft and
firm skin.
6
Personal-care player, Nivea India. Pvt. Ltd, Affiliate of the German-Beiersdorf AG,
the manufacturing facility in sanand with an investment of Rs 150 crore. After the late
capacity augmentation, the company total market investment in the India so far has
reached rupees 350 crore out of the approximate committed in year 2015-2016.
Nivea standoff the capacity now it stands stand at about 240 million units per annum.
The Nivea manufacture emulsion products such as creams, lotions, shower gel, face
wash, and lip care. The market size in which Nivea operates in pegged at about RS.
13,000 crore – growing at about 10- 12 percent annually, in which Nivea holds second
position after HUL and fair and lovely.
Nivea R&D expertise and local insights has been key to our growth. We believe that
this new production centre takes to achieve the goal being emerging Indian most loved
skin care brand.
Personal-care player Nivea. India Pvt. Ltd., affiliated of the German-Beiersdorf A.G,
the manufacturing facility in sanand with an investment of Rs 150 crore. After the late
capacity augmentation, the company total market investment in the India so far has
reached Rupees 350 crore out of the approximate committed in year 2018-2019.
Nivea standoff the capacity now it stands stands at about 240 million units per annum.
The Nivea manufacture emulsion products such as creams, lotions, shower gel, face
wash, and lip care. The market size in which Nivea operates in pegged at about Rs
13,000 crore – growing at about 10- 12 percent annually, in which Nivea holds second
position after HUL and fair and lovely.
Nivea R&D expertise and local insights has been key to our growth. We believe that
this new production centre takes to achieve the goal being emerging Indian most loved
skin care brand.
12
10
INTRODUCTION
Company Nivea has a long History behind their origin. In 1882, Pharmacist:
Paul-carl-Beiersdorf establish Nivea on March 28th. And it was originated in the
country named Germany. Gutta-percha plasters were produced by Beiersdorf in his
laboratory, with modern plaster technology as the foundation based on his patent. And
from 1880 to 2020 Nivea company has keeps on upgrading their products and Nivea
celebrates its 100 years in 2011, since it started its skin-care with a few festivities
followed by different kinds of performances by Barbadian-singer & actress-Rihanna.
California king bed sang by Rihanna’s which was featured as commercial campaign,
as
Nivea was celebrating 100 years of successful journey.
Know Nivea. is worlds NO1 skin care product with a revenue of 705.6 crores
EUR. Stefan De Locker is the CEO of Nivea company. Nivea company’s is growth
rate is 10-20%/year and present in more than 98 countries. Nivea consist of nearly
20,000 employees with a sale of 100 Million per year.
Care
Simplycity
The name NIVEA itself shows how a Salesman should approach the customers or
Retail outlets. These 5 principles will help a sales person to attract more customers and
do his work more effectively and efficiently.
Categories of product
Brand Hierarchy
Biersdorf
NIVEA
Deep impact – is a special addition for men categories it is the combination of all the
products in the Nivea which include deodorant, facewash, roll on, shower gel,
shaving gel, aftershave lotion, shampoo.
Range of the quantity of different products
Each and different product have different range based on the size of the product and
the categories.
20 ml, 25 ml, 30 ml, 50 ml, 55ml, 75ml, 100 ml,120 ml, 125 ml, 150 ml, 200 ml, 250
ml, 300 ml, 400 ml, 500 ml.
4.8 g, 10g, 75g, 100g, 125g.
Objectives.
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Vaseline.
Po nds.
Johnson and
Johnson.
Lak me.
Dove.
O la y.
Garnier.
NIVEA SWOT
ANALYSIS
Opportunities
Strengths
Weakness Threats
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Nivea holds a large market share in cosmetics industry. which makes it worlds
No 1 product for skin care and Body care.
The people working in Nivea are highly-skilled and were trained very well and
they knew all their learning programs. The company focuses on training the
employees foe fruitful out-comes, hence it invests more on training programs.
Nivea has a strong market chains and links, so it’s very reliable in suppling
raw-materials for the production.
2. Weaknesses of Nivea.
Only few products of Nivea are famous and they are making the business, apart
from that they don’t sustain in the market for their outside businesses.
Nivea has to update their products investing more in technology, to be popular
across the world.
Nivea has not able to track new company that are entering in to market which
made them to loss small market share to some niche categories.
The company is not planning to use the financial resources properly. This was
depicted by the current-asset-ratio and liquid-asset-ratio. Hence it is suggested
to the company to utilize its financial resources in apt manner with better
st r at egie s.
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wild
variety of products.
As Nivea is investing in online platform it has opened a new sales channel for
Nivea. As more and more customers are willing to buy the product in online
market.
4. Threats faced by Nivea.
should
always know what their competitor is up to.
Rising pay level especially increasing in price level of the products will affect
the profitability of the company.
Rising cost of raw material can be a Challenge to the Nivea company.
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Introduction
A beauty product company called Nivea was founded in 1911 in German. They also
had skin-care and body-care products as well. Till now it has a market experience of
107 years. Every-customer would-like to be healthy, beautiful & good-looking as
well. They are focus on taking care of themselves for looking better in the society.
Since both
male & female are consume beauty-care products it’s an opportunity for
the skin care
products like Nivea to enter into the market and not only focus on females but also on
the males so that they can easily acquire a large market share. So, by keeping this fact
in mind Nivea a German, personal-care brand which is specialized in body-care and
owed by, Hamburg based-company Beiersdorf-Global A.G has launched its first
product in the year 1911 which is 108 years ago. Nivea company produces various
kinds of product such as tanning-oils, shaving-creams, shampoos, facial-cleaner so
that its product can reach to all kind of customer and satisfy all type of needs.
In Bangalore Nivea skin care products are rapidly increasing because most of stores in
Bangalore provides skin care products. It happened because most of the customers
wants to be good looking and have a healthy skin. This research helps to find the
customers satisfaction of Nivea products in Bangalore.
The effect of using the marketing-strategies by the company is the main reasons that
led to them towards success of the firm. Though the company targets different age-
groups but it offers its products to specific customers by distinguishing them.
The company takes care of all the customer needs, starting from their childhood-days
to maturity-life, from impulse-purchase to family-treats. Due to increase in the social-
levels and status-consciousness, people have started to prefer to spend money on skin
care products. Taking advantage of this situation, nivea concentrates on the brand,
customer satisfaction and marketing strategies.
Customer Satisfaction
Oliver in 1997
15
He has made a report on various types of mobile users from various mobile service-
providers. The mobile-service-providers are: Airtel, Vodafone, BSNL, Reliance, Idea,
& few other service-providers. This report clearly says that customer buying factors
depends on the network coverage provided by the service-providers and the operation
available in the phone. It is also by the brand image of the brand. These finding from
the report will help the mobile-service providers to promote their mobile phones and
their services.
Customer-satisfaction is an important component of a business-strategy as well as
customer-retention & product-repurchase. To increase the level of customer-
satisfaction, selling their idea with documents after completion will help the company
to grow. An example for this is, when a customer wants to buy the car, first he will
have
a closer look at the car, it’s functionality a, it’s mechanism, engine, which model is this
car, and he will check with the kilometres that the car can be travelled and also about
its safety and loop holes. They check out all these factors so that they are not
disappointed after purchasing the car or any product for that matter. Sometimes the
company gives a picture of some other model and sells some other different car, they
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Brand image
Brand experiences keeps changing from person to person, because each individual has
their own and different opinion and taste. Sometimes brand-experiences are very
stronger or more-intense than other-brand. Along with product-experiences, brand-
experiences also differ in analysing the product. It may be positive or negative
experience. Sometimes some brands may leave an impression very quickly and
sometimes it may not reflect on the lives of the target audience. Few occur to be fast
and on point and long lasting as well. Over-time, these long-lasting brand experiences
loyal customers and they have to maintain good relationship with the customers via
calls and emails. This will help in maintaining the healthy and good relationship with
the customer.
Brand-experience varies from affection and motivation factors. Few factors of these
both are as follows: 1. Involvement, 2. Brand-attachment, 3. Brand-loyalty & 4.
Customer-delight. Involvement involves needs, values, & interests which motivates
the consumer to understand the objective of the brand. Involvement says the
perceived- importance and personal-relevance of a brand-products and brand-
services. Brand- experience will not presume a motivational-state or any-other.
Experiences will not happen if the customer is not interest. A personal-connection
between the brand the consumer will not be formed. Now the companies need
brands which will highly evoke the customers and make them buy the product.
Having a strong Brand-experience.
Consumer behavior
Akhila D and Dr. C. Boopathi.
Mohit Jamwal.
This study is based on individual decision-making resources and their utilization. The
available resources are:
1. Time,
2.Money and
3.Efforts.
All these three items are related to consumption. Customer-satisfaction will be
measured by using different attributes in the organization. They check with the
customer-preferences and customer-satisfaction amongst various parameters &
methods. This study will help in improving the production section, marketing-
department and pricing-strategies of the company in an effective way.
19
Vavra in 2002
He argues that few customers show special interest in few products or brands due to
their past experience with the company or the salesperson or they might be
emotionally connected with the brand.
20
He says there should be an innovative environment between the company and the
customers. They both should be connected like magnets.
He says that price should not be the competitive factor for expanding the business.
Instead, customers should be reason behind expand of the company.
21
Ensuring the customer satisfaction and gaining loyal customers is the ultimate goal of
the Nivea company by its best products. Hence, analysing customer satisfaction &
brand experience of the consumers which is always a challenging factor to maintain.
There might be changes in the attitude of the customers towards the product in our
everyday life world-wide. It is based on the preference of the customer based on
quality of the product, taste, quantity of the products brand-image, competition,
attractiveness towards the product, and its variety, etc. There are few problems faced
by the customer for which they lack reasoning and they are as follows: changes in
price, products launched by the competition, & Product-quality and purchasing-
behaviour of product. Hence, from the study we can say that it focuses on consumer-
preference and brand
awareness among the consumers.
One of the marketing tools known as Sales promotion is used for promoting,
advertising, publicity of the products and maintaining the public relations with people
using personal-selling and direct-marketing techniques in the recent times. This tells
the shift in customer behaviour and purchase-decisions and promotions of the sales. It
also helps in trial analysis in the current market situation. The promotional offers given
to the customers. The advance postponement of the customer’s purchase decision
in
buying a product.
Hypothesis.
nivea.
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gender.
Methodology.
Source of data
The main source of data used in this study is primary data. Primary data is the data
collected for the first time form the public, employees, students, etc. through
various tools. It will be in the form of Questionnaire or Google-Forms, which the
respondents are supposed to fill.
Population
Population is the key source for collecting information. A wider population will
provide wider information about the opinions of the people about a particular thing.
Sample
Sub-set of the population is known as Sample. It will help the researcher to conclude a
case based on the inputs provided.
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The sampling unit helps in segregation of the individual for the collecting the data.
Sample frame
Sample design
It is the plan of action, for obtaining the samples from the given sample.
Sample size
Data collection
Learning is the basic human-activity, which is natural, just like-breathing. Most of the
times learning is pervasive. But psychologists disagree with this fact how the process
of learning takes place. Marketers should have interest in knowing the individuals
learning and adapting ability. The marketers want the customers to be in their shoes, as
so to understand their role in the market. The marketers want the consumers to know
about various products, product-attributes, brand-attributes, potential-consumers-
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25
To understand
the brand.
To measure
the product’s worth.
To understand
the market pattern.
To preference.
To know the factors which are influence customer which makes them buy Nivea
products.
For
overall view.
To know
the income of the people.
Limitation of-study
The span-of study, conducted for the period of only three months.
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Frequency Analysis is the study of various frequency which are in the cipher form.
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12
10
0
0 2 4 6
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CHART 4.1
Gender
90
80
70
60
50
Female Male
Gender
We can depict from the above table that there are 83% of male respondents and 17%
of female respondents. It says that Male can use more products as the packing is
attractive. They go with the packing style. Whereas Females have different way of
selecting the product.
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AGE
100
90
80
70
60
CHART 4.2
The table above clearly says that 87% of the respondent are in the age-group 18-25
years, 4 percentages of the respondent are in the age-group of 25-30 & 5% of the
respondent belong to the age-group below 18 years. 30-45 years old turned out to
be 3%. The age-group of 18-25 choose creams to increase their beauty-level for
their daily activity. Hence 87% of the respondent belong to the age-group of 18-25
yrs.
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100000-150000 3 3.0
150000-200000 3 3.0
9 9.0
200000 and above
Total 100 100.0
CHART 4.3
INCOME LEVEL
50
45
40
35
30
Table above clearly says that 46% of respondent are in income group 0-25,000, 22%
of respondent are in income-group 25,000-50,000 and 9% of respondent belongs to the
income-group 50,000-75,000 and 8% respondent belongs to the income-group 75,000-
1,00,000 and 1,00,000-1,20,000 are 3% and 1,50,00-2,00,000 are 4%. 2, 00,000 and
above turned out to be 4%. Hence majority of respondent (22%) belong the income-
group 0-25,000.
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CHART 4.4
OCCUPATION
80
70
60
50
40
Student Government Private Employee Homemaker Others
From the above table, 72% of respondent are student, 1% of respondent are
government employment & 22% of respondent are private employee. 3% of the
respondents are home makers and 2% are others. So, it is revealed that 72% of
respondent are Students and they are the majority.
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CHART 4.5
EDUCATION
60
50
40
30
20
10
0
School Level Under Graduate Post Graduate
In the above figure 4.5, there are 2% of respondents are in the school level, 55% of
respondent of people belongs to the under graduate respondent and remaining at the
last 43% of respondent peoples are related to the post graduate, therefore under
graduate peoples are more attractive to the brand Nivea, therefore the under graduate
peoples are more profitable to the company.
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CHART 4.6
60
50
40
30
In the above table we know that, 60% of the respondent are using Nivea cream, 14%of
the respondents are using Himalaya, 24% of the respondents are using Vaseline and
the remaining 2% are using other brands like dove, bio line. It is found that the
majority of respondents (60%) prefer Nivea products. Therefore, it says that most of
the respondents likes Nivea products.
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CHART 4.7
50
40
30
20
10
0
Medical store Supermarket Kerana shop Fancy store Others
From the above table considered that, 27% of people buy nivea cream from the
medical store, 48% of people buy cream from the supermarket like big bazar, 14% of
people buy it from the kerana shop or departmental store, 5% of buyers from the fancy
store and finally 6% of buyers from the others outlets. So, it is revealed that 48%
respondent buy Nivea cream from the super-markets.
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Occasionally 17 17.0
Never 16 16.0
Total 100 100.0
CHART 4.8
30
25
20
In the above figure considered that, 32% of people are using nivea cream every day,
25% of people are using nivea cream on 2-3 times a week, 5% of peoples are using
nivea once a week, 5% of people are using nivea once a month, around 17% of people
are using nivea by occasionally and 16% of peoples are never tried nivea still, hence
the most of the people are using nivea cream every day that is 32%.
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Summary of Findings.
From the above findings majority of respondents who use Nivea products are male and
belong to 18-25 years age group. Since the advancement of technology is understood
by well-educated working professionals with an income level of 25000-50000. It is
found that individuals are influenced by the Brand to purchase the product. Majority of
the customer are frequently buying the product and they are purchasing the product
from the super markets.
Ranking of statements is done to analysis which factor has a major-effect on
individuals trust and it is found quality of product has a major effect on the customer
trust. Majority of the respondents who are using the Nivea product are in the age
between 18-25. This shows that individuals are satisfied with the price of the product
as it shows majority- of respondent are agreed-with the satisfaction level of price of
product.
ANOVA is done with demographic variable customer satisfaction and gender. The
analysis shows that there is no significant difference between them towards the
customer satisfaction. This shows that group of genders are varies in their Certainty
towards the satisfaction. That is no difference between the effect of customer
satisfaction and gender.
Second-ANOVA test is done with the variable gender and overall satisfaction. The
Analysis shows that there is no significant difference between them. It shows that
both the male and female are having a different opinion toward the overall
satisfaction.
Third-ANOVA is done with the usage of nivea product based on season. The analysis
shows there no significance difference in the usage of nivea product and the seasonal
sales. This shows that there is no impact on sales on the seasons.
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Fifth-ANOVA test is done with the variable brand of body lotion and effectiveness of
the advertisement. There is a different compotator for nivea is Himalaya, Vaseline
and other companies, there is no significant difference between these two variables,
brand of body lotion and the effectiveness of advertisement.
Suggestions
As in the analysis it shows that both the Male and Female have a different level
of satisfaction about the product. It is important that the company should focus
in a different way for both Male and Female.
The price of the product in comparatively higher than the competitors and it is
also proven in this analysis that only 50 percent of the customer are satisfied
with the price of the product. So, it is the essential-objective of the company to
maintain price of products and make sure that their customer will not move to
the co
product.
mpet it o r ’s
Even though the company is giving good discount and offers it have found that
the customers are not been encouraged the offer and discount. So, it is a
suggestion that the company should make sure that the customers are knowing
about the offers and Discount provided by company.
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Conclusion
Most of the customer are highly-satisfied by Nivea product and Service, as one of top
companies the company has building good-relationship among the customer &
retailers. This good relation helped the company to grow in this competitive world,
and the company is having a very good quality product at a reasonable price which
makes their customer to purchase their product repeatedly. As many people are
knowing about the Nivea company it is time for the Nivea to expand their business to
the rural areas and villages because majority of the people in India are from village
area. Advertisement is also playing an important role in converting the competitor’s
customers to buy Nivea’s product and also creating awareness about the Nivea
product.
By the help of the Nivea’s Research and Development team and marketing team it is
possible for the Nivea to overcome the competitors and become the number 1 product
in the world.
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REFERENCES:
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