Sources used in this document:

references and needs of the young women in the NIVEA VISAGE Young segment. The modifications to the product were more than just to move away from a medication-based positioning it would have had with the alcohol content in the formula; it was necessary to redefine the formula to substantiate the claims made in the promotional strategies and support the premium price as well. Product, as a result, is a very strong catalyst in the overall marketing mix. The changes made to the product made the entire positioning at the high end of the market and the aspirational messaging to younger women effective.

A secondary marketing mix factor is the pricing. Instead of dropping the price and attempting to gain market penetration by undercutting competitors, the company has chosen to pursue a high-end product position by increasing price. This is a very effective strategy for communicating the price/quality relationship inherent in the new product positioning, in addition to providing gross margins to pay for the high street distribution critical to the company's success. The pricing position also defies price elasticity concerns as well, namely choosing to increase prices in an inelastic market. Price increases are more successful in inelastic markets where the differentiators are not entirely based on commoditization. As Nivea is going after a highly differentiation, high value market position with NIVEA VISAGE Young, the pricing increase is an excellent strategy to support positioning and increase profits as well.

A third very strong factor is the use of high street retailers in the selling strategy, by offering samples through these locations. Visiting a high street retailer can be a sensory-filled experience with all the smells and sounds of the high-end beauty counters there. Having NIVEO VISAGE Young in that setting further strengthens the aspirational selling and positioning message the product is attempting to convey. Further, the high street distribution also adds to the prestige of the product line as well.

In summary, the product changes the company makes communicate they are serious about their commitment to being who they say they are in all other channels. In addition, the focus on eco-friendly and sustainability messaging with product formula changes, along with the use of social networks to connect with young women create a strong execution consistency across the product line. All of these factors come together in high street stores where the experience of sampling the facial products becomes very aspirational for a young woman between 13 and 19 years old.