Running head: NIVEA AND DOVE 1
NIVEA AND DOVE 4
Nivea and Dove: Brands for Everyday Usage
Nivea and Dove: Brands for Everyday Usage
There is no doubt that Nivea is one of the biggest and most recognized skin and body care brands worldwide. People all over the world use Nivea products in their everyday life to care their skin, look younger, and be healthy in general. Nivea began its operation in 1911. Nowadays, Nivea has around fourteen types of products throughout the world such as deodorants, moisturizers, shower gels, and others. In 1980, Beiresdorf, an international company, owned Nivea and launched its new product, named Nivea for Men. Nivea is well-known as the first company which launched alcohol free skin care, thus gaining success in its market. In 1993, Nivea first launched its popular products in the international market. Thus, it earned a huge income. Niveas products were worth 49 million pounds in 2008. Thanks to its popularity in the international market, Nivea achieved a very strong brand image and maximum market share both at home and abroad.
Youth, endless beauty, and the pursuit of perfection are at the forefront of many peoples agenda, so Nivea suggests optimal solutions to these questions. There are many reality TV shows, such as Extreme Makeover, so no wonder that people are obsessed with finding the secret of flawless appearance. Desire to look perfectly is one of the main peoples wishes worldwide, hence there is a huge demand for such products. Furthermore, this demand will undoubtedly be rising since the quality of peoples life and their health, and, as a result, their appearance are far away from perfect today. According to the American Society for Aesthetic Plastic Surgery researches conducted in 2003 , there were 8.3 million voluntary cosmetic surgeries performed in that year. Almost 45% of the procedures were performed on women aged 35 to 50. 24% of procedures were done on women aged 19 to 34, and 23% - on women aged 51-64. Based on the above mentioned, it can be said that Nivea is in a huge demand for people of all age categories.
There are almost no limitations for supplying the products. Since the brand has many different types of products including different price categories, almost everyone can afford some of the Niveas products. There exist many cheaper brands that offer similar products, therefore, there are many substitutes and inexpensive alternatives for average and poor strata of the population. Considering the fact that all brands are developing, and there are innovations going on and on, everyone can afford some complements if it is necessary.
As for the elasticity of demand in a short and long run, it completely depends on peoples solvency and prosperity. Cosmetic products are not the essentials so the demand will be rather elastic for poor population in both short and long run. Niveas production is rather labor-intensive. Moreover, the brand is responsible for peoples health.
It can be said that Nivea operates in a perfect competition market structure due to the presence of many similar brands and products. The brand has huge long-term prospects since it has already established itself worldwide. People all over the world will be surely using it whatever happens.
Dove is also one of the most popular care and beauty brands in terms of soap and body washes. The brand started its business in 1957. It produces soap bar, personal care, and some hair care products. Dove is owned by Unilever. In the last years, the main focus of Dove has been the manufacture of various products that enable women to show their beauty and individuality. Primarily, Dove consists of synthetic surfactants as well as vegetable oil can be based on soap ingredients; Dove initially formulated to be PH neutral with PH between 6.5 and 7.5. Dove products are manufactured in the Netherlands, Germany, the USA, Brazil, and Ireland.
Dove soap is currently produced in different versions like cool moisture, exfoliating skin, sensitive skin, nourishing, calming night, energy glow, etc. Throughout its history, Dove has been positioned as a beauty bar rather than a soap with its one-fourth cleansing cream. The brand emphasizes its ability to moisturize skin as compared with the drying effects of other regular soaps. According to the Pennsylvania dermatologists tests in 1979 , Dove irritates and dries skin significantly less than other ordinary soaps. In the same year, the phrase cleansing cream was replaced with moisturizer cream. As a result of these tests, Unilever started rather aggressive marketing and subsequently won more than 24% of the market by 2003.
As one of the beauty products, Dove aims to be an agent of education changing and inspiring girls on a wider definition of beauty. However, Dove did not stop at the top and decided to launch new products but this time for men. In 2010, it launched skin care products for men Dove Men + Care. This range of products was developed for skin comfort to men. Thus, since that time, Dove became the brand which offers products for all strata of the population and all sexes.
As for demand and other main factors, Dove is very similar to Nivea since both of them care about people. They both are chemically produced products for everyday usage; moreover, they are direct competitors. Each of them can be substituted to another. The elasticity of demand of Dove products is the same as the elasticity of Nivea products. People are able to use any of these brands if they have all the essentials they need first of all. It refers to both the short and long run. Dove products are labor-intensive too, and technology of production is very important because none of the brands wish to harm people.
Both the brands will be very popular worldwide in the long-term prospective but at the same time, they will still remain direct competitors.