Executive Summary: Youth, timeless beauty and the pursuit of perfection seem to be on the forefront of everyone's agenda. From television portraying reality shows such as "Extreme Makeover" and fictional dramas such as "Nip and Tuck", it is no wonder Americans are obsessed with finding the ultimate secret to looking flawless. The beauty industry is a 40 billion dollar enterprise, (News Target, 2005) dedicated to helping women look their best so it is no wonder companies such as Nivea is re-evaluating their posture in the U.S. market, positioning themselves to take advantage of the growing interest in cosmetic remedies to turning back the clock. Research conducted by the American Society for Aesthetic Plastic Surgery in 2003 revealed that 8.3 million voluntary cosmetic surgeries were performed, over 12 billion dollars. Almost 45% of the procedures performed, 3.7 million, were on women from the ages of 35-50, which we believe, is a huge market. 24% of the procedures were done on women from the ages of 19-34 and 23% were done on women from the ages of 51-64.
Every age group is represented with significant potential market data; therefore, we believe it is time for Nivea to take part in this age of cosmetic transformations. For years, European women have harnessed the regenerative and exfoliating properties of lamb placenta and papaya extracts in their pursuit of beauty; however, American women have yet to experience the properties that these two ingredients have. We believe by taking the existing Nivea product, rich in emollients and moisturizing properties, and enhancing it with these two additional ingredients, we would discover a product compared to no other. Nivea already has an existing, loyal, international customer base and they are ready for a product to progress with them as their needs change in the twenty first century. There are many facets to the American woman. She is a corporate leader, a devoted wife and mother, and a trendsetter.
In order to capitalize on the trend of cosmetic transformations, it is imperative to introduce a product that will not only achieve the results that surgical procedures promise, but to keep it affordable and convenient. Nivea Derma P 2 achieves that goal! Organization Overview: Nivea Cream was created in 1911 and stands for successful interplay of groundbreaking research, creativity and entrepreneurial expertise, being the only company at the time to use Eucerit, the first water-in-oil emulsifier able to produce a long-lasting ointment base, (, n. d. ). "Eucerit, a discovery originally destined for medical applications, was now used in an innovative cosmetic cream - the world's first long-lasting moisturizer: Nivea Cream. Thanks to its consistency, the cream was pure white and the name NIVEA is actually derived from the Latin term nix / nevis, meaning snow.
The formula has proven itself for over 90 years, remaining unique and unparalleled in both performance and consumer acceptance to this day", (Beiersdorf AG, ). Mission Statement: Nivea believes in developing innovative skincare products designed to help individuals obtain a healthy, youthful and non-surgical method of skin perfection. Our products must be superior in quality, affordability and availability. We believe that creating radiant skin through topical agents will help many people grasp their full potential and generate unparalleled self-esteem without evasive surgical procedures. You are never too young or too old to start taking care of your skin. In fact, skin care and protection should be an essential part of your health, fitness, and beauty regime.
If you take care of your skin, your skin will take care of you! However, with all of the lotions, creams, and potions on the market, it can be difficult to know which product will work for you. Many products claim to remove wrinkles or heal dry skin. Others claim to contain expensive ingredients that they say will improve the effects of the product.
In addition to all of the different skin creams, American women are frantically invading dermatologists' offices for non-surgical procedures such as Botox injections, micro-dermabrasion, collagen injections, and chemical peels; all for the promise of youthful vibrancy. With celebrity endorsements on the rise, the American public optimistically is experimenting with new products trying to achieve the look of Hollywood stars. Unfortunately, consumers do not have the financial means to keep up with the regime the celebrities exercise, therefore, Nivea has developed a new product using European ingenuity to introduce to the American Woman, DERMA P 2. Product Description: Nivea Derma P 2 is a cosmetic topical cream designed to help individuals from adolescence to maturity.
Derma P 2 is a unique product containing various types of placenta and papaya extracts, a rich source of skin nutrients and re-generation properties. The product exfoliates at an accelerated rate due to the concentration of the two key ingredients. Derma P 2 removes acne and other deep scars, sun damage, freckles, wrinkles, re-hydrates the skin, improves elasticity, and slows down the process of skin damage from UV rays. SWOT Analysis: Strengths: Nivea has international brand name recognition Existing customer base Already has good reputation in global skincare market Good marketing team Strong executive team Cost effective ingredients Product is affordable Effective on age groups from adolescence to maturity Weaknesses: Key Ingredients may cause controversy Advertising challenges due to key ingredients May not attract existing customers Limited market distribution Opportunities: Take advantage of the new age of cosmetic enhancements Non-surgical procedure done at home instead of professional treatment Market is drastically leaning towards the appearance of youth Television is feeding into the frenzy of the "fountain of youth " No competition in the American market due to key ingredients Threats: May cause controversy with animal rights activists Key ingredients may not entice American public European companies may compete in American market Two of the major advantages of this product are brand name recognition and an existing, loyal customer base. In addition, with its impeccable reputation for quality products and innovation, Nivea continues to lead the market in cosmetic, non-evasive, topical remedies. Due to the influx of corrective cosmetic procedures, Nivea believes that providing convenience, effectiveness, availability, and affordability in an age of youthful pursuance will give them an advantage in the market of non-surgical corrective cosmetic remedies.
Market Research: Below the American Society for Aesthetic Plastic Surgery (ASAPS), release the highlights of 2003 cosmetic surgery statistics on February 18, 2004. ASAPS is the nation's leading organization for cosmetic surgery education and research: There were nearly 8.3 million surgical and non-surgical cosmetic procedures performed in 2003, according to the most comprehensive survey to date of U.S. physicians and surgeons by the American Society for Aesthetic Plastic Surgery (ASAPS). Surgical procedures represented 22 percent of the total, and non-surgical procedures were 78 percent of the total. From 2002-2003, there was a 20 percent increase in the total number of cosmetic procedures. Surgical procedures increased by 12 percent, and non-surgical procedures increased by 22 percent. Since 1997, there has been a 293 percent increase in the total number of cosmetic procedures.
Surgical procedures increased by 87 percent, and non-surgical procedures increased by 471 percent. The top five surgical cosmetic procedures in 2003 were: liposuction (384,626, up 3 percent from 2002); breast augmentation (280,401, up 12 percent); eyelid surgery (267,627, up 17 percent); rhinoplasty (172,420, up 10 percent); and breast reduction (147,173, up 17 percent). The top five non-surgical cosmetic procedures in 2003 were: Botox injection (2,272,080, up 37 percent from 2002); laser hair removal (923,200, up 25 percent); micro-dermabrasion (858,312, down 17 percent); chemical peel (722,248, up 46 percent); and collagen injection (620,476, down 21 percent). Women had nearly 7.2 million cosmetic procedures, 87 percent of the total. The number of cosmetic procedures for women increased 16 percent from 2002. The top five surgical procedures for women were: liposuction, breast augmentation, eyelid surgery, breast reduction and rhinoplasty.
Men had nearly 1.1 million cosmetic procedures, 13 percent of the total (up from 12 percent of the total in 2002). The number of cosmetic procedures for men increased 31 percent from 2002. The top five surgical procedures for men were: liposuction, rhinoplasty, eyelid surgery, breast reduction to treat enlarged male breasts, and hair transplantation. People age 35-50 had the most procedures -- 3.7 million and 45 percent of the total. People age 19-34 had 24 percent of procedures; age 51-64 had 23 percent; age 65-and-over had 5 percent; and age 18-and-younger had less than 3 percent. The most common procedures for age 18-and-under were chemical peel, laser hair removal, micro-dermabrasion, rhinoplasty, and otoplasty (ear reshaping).
Racial and ethnic minorities had 20 percent of all cosmetic procedures, an increase of 1 percent from 2002: Hispanics, 8 percent; African-Americans, 6 percent; Asians, 4 percent; and other non-Caucasians, 2 percent. Where cosmetic surgeries were performed: office facility, 52 percent (up 7 percent from 2002); hospital 25 percent; and freestanding surg i-center, 23 percent. (ASAPS [ASA.