Nivea managing a brand hierachy


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  • Nivea cosmetics brand has a presence in huge number of product categories and countries. Once upon a time Nivea's performance prompted a news article to name it the 'Queen of Mega Brands.' This title was appropriate since the brand was present in over 14 product categories and was available in more than 150 countries. Nivea was reportedly believed to be a brand of local origin - having been present in them for many decades. This fact went a long way in helping the brand attain the leadership status in many categories and countries. According to analysts, the brand was the single largest factor for the 4.4% increase in the company's(Beiersdorf) revenues (€ 4.74 billion) and 10.7% increase in after-tax profit (€ 290 million) for the year 2002. Beiersdorf never tried to disturb the umbrella branding of Nivea and got fruitful results.
  • Nivea managing a brand hierachy

    1. 1. Amiya Kumar 10EX-003<br />Mehul J. Sudra 10EX-025<br />
    2. 2. Nivea “SNOW WHITE”<br />Type Personal care<br />Owner Beiersdorf AG<br /> (BDF)<br />Country Germany(1911)<br />
    3. 3. NIVEA story<br /> 1912 Introduced Crème in Europe<br /> 1922 In US and South America<br /> 1951 Introduce first deodorizing soap<br /> 1963 NIVEA milk-"for all-over body care" <br /> 1973 "Only Me" NIVEA ad campaign<br />
    4. 4. NIVEA story…<br /> 1982 Internationalization of Brand<br /> 1992 NIVEA's BLUE HARMONY ad<br /> 2008 Launches -Nivea lip care<br /> 2010 Launches - Nivea Happiness Sensation<br />
    5. 5. What is a Brand<br />?<br />?<br />?<br />?<br />
    6. 6. NIVEA mental map<br />Scent/Feel<br />Heritage<br />Simple<br />Care<br />For Family<br />Protection<br />Pure<br />Trustworthy/ Reliable<br />Mildness<br />Multipurpose<br />Gentleness<br />Blue/ White<br />
    7. 7. NIVEA CBBE Pyramid<br />
    8. 8. A brand “NIVEA” is not just . . .<br />An Ad<br />A Logo<br />A Jingle<br />A Symbol<br />A Spokesperson<br />A Product<br />A Slogan<br />A Name<br />
    9. 9. A brand “NIVEA” is<br />… all of the PROMISES and PERCEPTIONS.<br />NIVEA wants its market to feel and believe about its product and service offerings<br />
    10. 10. Aaker’s Model<br />David A. Aaker, a consultant, author, Professor, known as “FATHER OF BRANDING”<br />Brand Portfolio Strategy<br />Brand-Market Context Roles<br />Portfolio Roles<br /><ul><li>Strategic brands
    11. 11. Subbrands
    12. 12. Linchpin brands
    13. 13. Benefit brands
    14. 14. Silver bullets brands
    15. 15. Co-brands
    16. 16. Cash cow brands</li></ul>Brand Architecture<br />Brand Portfolio Structure<br />Portfolio Graphics<br /><ul><li>Brand Groupings
    17. 17. Logo
    18. 18. Brand hierarchy trees
    19. 19. Visual presentation
    20. 20. Brand range</li></ul>Optimal allocation of brand building resources<br />Synergy in creating: visibility, efficiency<br />Powerful brands<br />Clarity of offering<br />Platforms for future growth options<br />
    21. 21. NIVEA Portfolio Strategy<br /> The effective creation, deployment and management of brand assets in support of simultaneous top and bottom-line growth<br /><ul><li>Access to New Markets & Customers
    22. 22. Marketing Investment Efficiency
    23. 23. Strengthened Customer relationships
    24. 24. Uncovered Latent Brand Potential</li></li></ul><li>Brand Extension<br />Objective…<br />Evolve NIVEA from a skin crème brand<br />into a skin care brand by providing a range of new products that would both<br />complement NIVEA Crème and broaden the meaning of the NIVEA brand name.<br />
    25. 25. Horizontal Brand Extension…<br />When a company uses the established brand name to new categories.<br />ENHANCEDBRANDEQUITY<br />ADDEDVALUE<br />FIT<br /><ul><li>Customers must be comfortable with the brand in the new setting.
    26. 26. Bases: product associates, ingredient, attribute, application, user, expertise, designer image.
    27. 27. The brand name alone should help customers articulate why the offering is superior to other brands.
    28. 28. The brand equity should be enhanced by the brand’s presence in another context -- not only from increased visibility but also from the associations generated.</li></li></ul><li>Vertical Brand Extension…<br />Segment vitality <br />To participate in a large & growing value market<br />
    29. 29. Brand hierarchy trees<br />Many more, with JND, gives Clarity of offering<br />
    30. 30. Nivea Brand Portfolio by 1998…<br />
    31. 31. LOGO<br />One of the simplest logo ever seen. This logo says all the things it wanted to say to its customers. The logo gives the feel of freshness and beauty and displays the brand uniqueness in the market as well.<br />
    32. 32. Question marks<br />Stars<br />?<br />?<br />?<br />?<br />Dogs<br />10x 4x 2x 1.5x 1x <br />.5x .4x .3x .2x .1x <br />Relative Market Share<br />The BCG’s Growth-Share Matrix of <br />NIVEA(umbrella brand)<br />20%-<br />18%-<br />16%-<br />14%-<br />12%-<br />10%-<br /> 8%-<br /> 6%-<br /> 4%-<br /> 2%-<br /> 0<br />Market Growth Rate<br />Cash cow<br />
    33. 33. Question marks<br />Stars<br />?<br />?<br />?<br />?<br />Dogs<br />Cash cow<br />10x 4x 2x 1.5x 1x <br />.5x .4x .3x .2x .1x <br />Relative Market Share<br />The BCG’s Growth-Share Matrix of <br />Sub Brands <br />20%-<br />18%-<br />16%-<br />14%-<br />12%-<br />10%-<br /> 8%-<br /> 6%-<br /> 4%-<br /> 2%-<br /> 0<br />Market Growth Rate<br />
    34. 34. Brand Category<br />Strategic Brand:<br />A brand that is projected to reap future sales and profits. NIVEA Crème, NIVEA Deo, NIVEA for Men<br />Linchpin Brand:<br />A brand that holds the entire organization together. It is a number one brand that indirectly influences a business area providing a strong base for customer loyalty. NIVEA Crème<br />Silver Bullet Brand:<br />A brand or sub-brand that positively influences the image of another brand. NIVEA Baby, NIVEA for Men<br />
    35. 35. Brand Category…<br />Cash Cow Brands:<br />Brands with significant customer bases that require less attention than other brands. The total sales may be on a decline, yet there are a group of hard-core loyal customers who do not leave the brand. The role of a cash cow brand is to generate resources that can be invested in other brands for future growth.<br />Nivea Crème is one such example of a brand that has been extended to other skin-related<br />products to provide resources for other brands by banking on its customer base.<br />
    36. 36. Brand Health<br />A global brand with a wide range of products catering to the full spectrum of consumer segments<br />Widely recognized and respected brand, which it leveraged across a range of sub-brands<br />Nurtured its existing sub-brands and moved into additional market segments by adding new sub-brands<br />Sub-brand experienced sales growth and gained market share<br />
    37. 37. Marketing Strategy<br />Internationalize sub-brands by creating a universal name.<br />NIVEA logo for all packaging.<br />Adopted separate ad campaigns for each sub-brands, but a common message of quality and care exist in all ad.<br />Implemented IMC by “Blue Bible” philosophy <br />Same message in all the market<br />
    38. 38. Marketing Strategy<br />Direct Marketing :-<br /> Periodic mailings to more than one million database <br />Non-Traditional Marketing :-<br /> NIVEA beach ball @ European beaches each summer<br /> Blue Santa Clause giving NIVEA cream in Germany<br />Event Marketing :- <br /> Sponsored beauty contests in diverse market, Poland, UK & Thailand<br />
    39. 39. New Market Rollout<br />NIVEA Crème <br />NIVEA Body <br />NIVEA Visage <br />NIVEA Deo <br />Other Sub brands <br />
    40. 40. Current Stories<br />BDF reveals travel retail strategy for Nivea brand :- <br /> Introduce over 65 products and a variety of exclusive travel sets to be sold on airplanes, in airports, and on ferries and cruise lines.<br />“With this selection of Nivea products, we’ll be able to meet the demands of previously underserved needs and price segments , and we see great potential for attracting new buyers to our stores.” ~ InkenMenck, director of purchasing for perfumes and cosmetics 26-Oct-2010 ~<br />Deodorant sales grow worldwide :- A number of launches in the deodorant category helped to boost sales globally by 10 per cent during the nine month period ~09-Nov-2010~<br />Courtesy :-<br />
    41. 41. Recommendations on…<br /><ul><li>Sub Brand or Umbrella Brand?
    42. 42. Pros SB:Profit Centre.</li></ul> New market/products.<br /><ul><li>Cons SB: Cosumer-‘I would like to buy blue bottle of Nivea’-Nivea Body Milk …</li></ul>Umbrella Brand:<br /><ul><li>Pros U.: Strengthening Brand Equity
    43. 43. Cons U.: Mono Product Philosophy.</li></li></ul><li>THANKS<br />