Nivea strategy


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Nivea strategy

  1. 1. An Ode to Nivea’s Success Presented By – Vivek Sharma R.N. – 06 PGPIMC (2006-08)
  2. 2. Introduction <ul><li>Nivea is a large global skin- and body-care brand. </li></ul><ul><li>It is owned by German company Beiersdorf. </li></ul><ul><li>The brand started in 1911, when company developed a water-in-oil emulsifier as a skin cream with Eucerit. </li></ul>
  3. 3. Introduction <ul><li>Nivea presents 14 product categories in 150 countries. </li></ul><ul><li>Nivea was the market leader in: </li></ul><ul><ul><ul><li>Skin cream and body lotion category in 28 countries. </li></ul></ul></ul><ul><ul><ul><li>Facial cleaning category in 23 countries. </li></ul></ul></ul><ul><ul><ul><li>Facial skin care category in 18 countries. </li></ul></ul></ul><ul><ul><ul><li>Suntan products in 15 countries. </li></ul></ul></ul><ul><li>Nivea having good brand image and value because it was present itself to be a local origin. </li></ul>
  4. 4. Products Category of Nivea <ul><li>Face care </li></ul><ul><li>Men’s care </li></ul><ul><li>Nivea soft </li></ul><ul><li>Nivea cream </li></ul><ul><li>Body care </li></ul><ul><li>Lip care </li></ul><ul><li>Sun care </li></ul><ul><li>Deodorants </li></ul>
  5. 5. Market Leadership <ul><li>Leadership status presented a superior financial performance, trust and reliability. </li></ul><ul><li>Nivea having 15% market share in the global skin care products market. </li></ul><ul><li>In 1991 - 2001, Nivea increased their double digit growth rates every year. </li></ul><ul><li>In 2001, Nivea generated the revenue of € 2.5 billion. </li></ul><ul><li>In 2001 Nivea increase the revenue 4.4%. </li></ul>
  6. 6. Question 1 <ul><li>Why did Beiersdorf decide to extend the brand to different product categories? In the light of Beiersdorf’s brand extension of Nivea, critically comment on the pros and cons of adopting an umbrella branding strategy. </li></ul>
  7. 7. Answer 1 <ul><li>Beiersdorf extend their brand to different parts because </li></ul><ul><ul><li>They want to increase their market share and brand value. </li></ul></ul><ul><ul><li>They want to fulfill their customer needs and desires. </li></ul></ul><ul><ul><li>They want to Worldwide uniform appearance. </li></ul></ul><ul><ul><li>They want to reduce their risk factor. </li></ul></ul><ul><ul><li>They want to reduce their Advertising budget. </li></ul></ul><ul><ul><li>They want to immortal their brand name in the mind of customer. </li></ul></ul><ul><ul><li>They also want to capture the young generations. </li></ul></ul><ul><ul><li>They want to introduced their new innovative technologies. </li></ul></ul>
  8. 8. Pros of Adopting Umbrella Branding <ul><li>It will provide the strength for the mother brand. </li></ul><ul><li>It will also provide the personal identity of the mother brand. </li></ul><ul><li>It will also creating the presence in customers mind. </li></ul><ul><li>It will also helping the new brand for easily stabile in the market. </li></ul>
  9. 9. Pros of Adopting Umbrella Branding <ul><li>It will also helping to reduced the budget of advertising and risk factors. </li></ul><ul><li>It will also creating awareness of new product in the mind of customer with the using old branding. </li></ul><ul><li>It will also increasing the creativity and entrepreneurial expertise of the company. </li></ul><ul><li>It will easy acceptance in trade. </li></ul>
  10. 10. Cons of Adopting Umbrella Branding <ul><li>The cons of umbrella branding is failure of sub brand can create the negative impact on the sales of the entire range. </li></ul><ul><li>On the other hand it will also extend the mother brands personal identity. </li></ul><ul><li>The mother brand also lost its core equity. </li></ul>
  11. 11. Question 2 <ul><li>What are the core values of the Nivea brand? What type of brand extension framework did Beiersdorf develop to ensure that these core values did not get diluted? </li></ul>
  12. 12. Answer 2 <ul><li>Core values :- </li></ul><ul><ul><li>The core values of the Nivea brand is </li></ul></ul><ul><ul><ul><li>Caring/ protection the skin </li></ul></ul></ul><ul><ul><ul><li>Fulfill the need of customer </li></ul></ul></ul><ul><ul><ul><li>Natural (not using animal fat </li></ul></ul></ul><ul><ul><ul><li>Freshness </li></ul></ul></ul><ul><ul><ul><li>Mild/skin friendly </li></ul></ul></ul><ul><ul><ul><li>Pleasant fragrance </li></ul></ul></ul><ul><ul><ul><li>Reliable brand </li></ul></ul></ul><ul><ul><ul><li>High quality </li></ul></ul></ul>