Nivea Case Study

17,230 views

Published on

2 Comments
13 Likes
Statistics
Notes
No Downloads
Views
Total views
17,230
On SlideShare
0
From Embeds
0
Number of Embeds
74
Actions
Shares
0
Downloads
677
Comments
2
Likes
13
Embeds 0
No embeds

No notes for slide
  • answer
  • Page no. 75 imp…
  • answer
  • Footcare
  • Nivea Case Study

    1. 1. Case Study Presentation Presented By: Nikita SanghviSource: Best Practice Cases in Branding, Kavin Lane Keller, 3rd Edition, 2008, Pearson
    2. 2. 7-Apr-11 STEVENS B SCHOOL
    3. 3. Case Study AnalysisBackground  Nivea is a brand of German company Beirsdorf; successful player in European market  Expanded into South & Latin America, Eastern Europe, & Asia  Earlier limited range of products: Nivea Crème, Milk, Soap & Sun  Extended the Nivea brand to a full range of Skin care & Personal care products  Challenge: Maintaining growth while preserving the established brand equity  In 1990s & 2000s followed a “sub brand strategy” where individual sub brands received budget allocations for independent IMC7-Apr-11 STEVENS B SCHOOL
    4. 4. 7-Apr-11 STEVENS B SCHOOL
    5. 5. Case Study AnalysisDevelopment Of The Nivea Brand: 1912-1970  Industrialization led to the emergence of mass markets and branded articles  Women began to appreciate greater degree of physical appearance  Nivea crème (Bright yellow tin) unique water-in-oil emulsion first to offer  Skin care  Protection  Reasonable price  Name came from Latin word: Nives- Snow; reflecting snow white colour of Nivea crème  The world’s first multi purpose, “universal” skin crème  Nivea crème introduced into German Market and subsequently throughout Europe(1912); in the USA in 1922; & in South America and other parts of the world in 19267-Apr-11 STEVENS B SCHOOL
    6. 6. Case Study AnalysisDevelopment Of The Nivea Brand: 1912-1970  Introduced over 48 other skin care products between 1911-1970  Maintained “Mono-product” philosophy  Blue tin & White lettering standardised in 1925  Other primary products – body soap, powder, sun care lotion & oil7-Apr-11 STEVENS B SCHOOL
    7. 7. Case Study AnalysisNivea Crème Brand Identity & Values Throughout Europe -  Unique Brand Identity: Caretaker of skin  Strong Association: Shared family experience  Care  Mildness  Reliability  Gentleness  Protection  High Quality  Feeling Good  Reasonably Priced  Synonyms: Care & Protection for the skin7-Apr-11 STEVENS B SCHOOL
    8. 8. Case Study AnalysisEarly Nivea Advertising  Began advertising in 1912  Means of strengthening consumer perceptions of a quality product  Simple, plain & informative ads  In 1910s & 1920s, advertised three products – crème, soap & powder  Established the images of Nivea women as clean, fresh & natural7-Apr-11 STEVENS B SCHOOL
    9. 9. 7-Apr-11 STEVENS B SCHOOL
    10. 10. Case Study AnalysisNivea’s First Competitive Challenge: The 1970’s  Nivea held over 35% multi-purpose market in Europe  Henkel-Khasana launched Crème 21 (multi-purpose crème) in 1972  Focus on extensive advertising & self-service outlets to target mass market  Competition: Pond’s , Unilever and P & G  BDF performed a study on Nivea brand image in Germany  High degree of goodwill  Represented reliability, quality & honesty  Older image, not viewed as young, dynamic, modern  BDF developed “two-pronged” strategy  Stabilize the strong historical market position of Nivea Crème  Transfer Nivea Crème goodwill to other product classes7-Apr-11 STEVENS B SCHOOL
    11. 11. Case Study AnalysisRevitalizing Nivea Crème Nivea, the Crème de la crème, 1971  Launched a series of 7 ads  Impressively defended NIVEA Crèmes leading market position.  Objective: NIVEA Crème combines all aspects of skincare for the best in a single product, clearly stating the competence, quality and honesty of NIVEA. Only Me  It ran in Europe from 1973  Objective: Negate competitors claims  Positioning:  Nivea crème meets all skin care needs7-Apr-11 STEVENS B SCHOOL
    12. 12. Case Study AnalysisExtending the Nivea Brand7-Apr-11 STEVENS B SCHOOL
    13. 13. Case Study AnalysisExtending the Nivea Brand Skin Care & Skin Creme Personal Care Mono product philosophy:  Only one product promising consumers universal application in each product category  Second version of a particular product could be introduced only if it satisfied a unique need not meet by the current products(s) in its category7-Apr-11 STEVENS B SCHOOL
    14. 14. Case Study AnalysisExtending the Nivea Brand Set of Guidelines:  Meet a basic need: clean & / or protect  Offer the special care / mildness benefit of Nivea Crème  Be simple & uncomplicated  Not to offer to solve only a specific problem  Maintain a leading position in terms of quality  Offer the product at a reasonable price so the consumer perceives a balanced cost-benefit relationship  Offer the broadest possible distribution7-Apr-11 STEVENS B SCHOOL
    15. 15. 7-Apr-11 STEVENS B SCHOOL
    16. 16. Case Study AnalysisUnderstanding The Nivea Brand  In 1992, Nivea Crème accounted for only 22% of total Nivea brand sales  Concern:  Nivea brand image weakened  Multiple sub-brands independent of each other  Complicated, risky & confusing set of messages send to consumers7-Apr-11 STEVENS B SCHOOL
    17. 17. Case Study AnalysisUnderstanding The Nivea Brand  Kunisch, former CEO of Cosmed, believed that in preparing to develop a new NIVEA communications strategy, a formalised brand philosophy was necessary. Kunisch explained: “NIVEA is the most fascinating brand in the world, second only to Coca-Cola. The company had done a tremendous job over the last 50 years to keep the NIVEA was a lack of conscientiousness of what it meant to be a brand. In the good old days, BDF had a brand relationship that was highly personalised. Only three people knew how it had all been done—one retired, one left the company and one died. In addition, there were three advertising agencies that did not talk with one another. I began with the basics and asked: What is NIVEA? The data was all there, the feeling was there, but no one had put it on a piece of paper.”7-Apr-11 STEVENS B SCHOOL
    18. 18. Case Study AnalysisDeveloping Cosmed’s Corporate Strategy  The brand philosophy centered on maintaining the association of ‘universality’ for NIVEA products.  Kunisch explained, “We want to build on the image of the blue tin where we are number one almost everywhere in Europe.”  The role of the other sub-brands was to continue to cater to the specific skin care & personal care needs of their target market segments and contribute back their particular product class associations to reinforce and elaborate on the image of NIVEA as a skin care specialist.7-Apr-11 STEVENS B SCHOOL
    19. 19. 7-Apr-11 STEVENS B SCHOOL
    20. 20. Case Study AnalysisExecuting The Nivea Brand Philosophy  Cosmed worked with its advertising agency, TBWA to communicate a certain “Niveaness” in all ads & promotions  Campaign should incorporate the brand values:  Timeless & ageless  Motherhood & a happy family  Honesty  Trustworthiness  Benefits of mildness & quality  Other guidelines:  Common emotions in all ads  A uniform Nivea logo  Consistent lettering & typeface  Real, inspirational people in the ads  Understable copy about the product7-Apr-11 STEVENS B SCHOOL
    21. 21. Case Study AnalysisExpansion of Nivea Sub-Brands  By 2005, the NIVEA brand portfolio had grown from six product groups in 1993 to fifteen, including: Skin Care Personal Care • NIVEA Body, • NIVEA Deo, • NIVEA Visage, • NIVEA Beauty, • NIVEA for Men, • NIVEA Hair Care, • NIVEA Sun, • NIVEA Bath Care, • NIVEA Baby, • NIVEA Intimate Care • NIVEA Crème, • NIVEA Vital, • NIVEA Soft, • NIVEA Hand, • NIVEA Lip7-Apr-11 STEVENS B SCHOOL
    22. 22. 7-Apr-11 STEVENS B SCHOOL
    23. 23. Case Study AnalysisNivea Crème  Nivea Crème, Nivea’s first product, was introduced in 1911 & was the first stable water-in- oil emulsion available in the world.  Original NIVEA Crème tins were pale yellow with “NIVEA Crème” in blue print in the centre and a red and blue Art Nouveau border, but were changed in 1926 to the now- familiar blue and white design. The tin simplicity and caring embodied by the brand.  Blue Harmony Campaign  In the 1990s the spirit of the times changed and honesty, return to family and the reality of honest feelings became important values.  Launched in 1992, captured wonderful moments of human togetherness.  Included a series of television & print ads highlighting Nivea Crème  Showed a group of seagulls flying together through the air as circuit music played in the background  Tagline: All that skin needs to live7-Apr-11 STEVENS B SCHOOL
    24. 24. Case Study AnalysisNivea Crème7-Apr-11 STEVENS B SCHOOL
    25. 25. Case Study AnalysisNivea Soft  Introduced in 1994  Lighter than the heavier, greasier feeling of Nivea Crème  Separate identity : to prevent cannibalization of Nivea Crème  Launched first in UK with a marketing strategy called ‘’fast marketing’’: 1 week intensive TV and print ads, sampling & promotions  In 2004, Launched in the USA with 2 sizes, extensive sampling targeting women ages 18-49 yrs  2005: Launched Mini-tube for travelling7-Apr-11 STEVENS B SCHOOL
    26. 26. Case Study AnalysisNivea Visage  Introduced in 1982 as a face cleanser (mildness) 1987 1989 1991 1998 2005 • Introduced a • Changed the • First anti-age • Q10 used in • Products with beauty fluid packaging:from products Nivea Visage line Q10 Plus- to (liquid plastic to glass – Anti wrinkle reduce and moisturizer) • Altered the logo cream prevent wrinkles for Nivea Visage • Moisturizing day and night crème7-Apr-11 STEVENS B SCHOOL
    27. 27. Case Study AnalysisNivea Vital  Introduced in 1994 for women over the age of 501999 2000 2003• Redesigned its • Cleansing and day • Comfort cleansing • Newer versions with packaging and logo care creams, body Wipes with a fresh, special ingredients lotion and intensive healthy glow & a like soy proteins and care products pleasantly smooth primrose oil feel7-Apr-11 STEVENS B SCHOOL
    28. 28. Case Study AnalysisNivea Body  Introduced in 1996  Nivea Milk: water- in oil emulsion but in liquid form for dry skin  Nivea Lotion: oil – in-water emulsion; daily care of normal skin Essential Performance Pleasure Shaving, Exfoliating, Moisturize, Soften, Relax, Refresh And Re- Properties Night Time And Skin Protect energize Firming Body Lotion Rice & Products Oil,, Milk And Lotion Products Using Q10 Lotus, Ocean Breeze Spray Nivea Whitening Body spray Shimmer lotion with Body firming lotionCream-> Asia Pacific (moisturizing spray) reflective properties with Q10 region7-Apr-11 STEVENS B SCHOOL
    29. 29. Case Study AnalysisNivea For Men 1980 1986 1993 1998 • After shave balsam • Full line of men’s skin care • Sensitive line for men (skin • Philishave Cool Skin (alcoholic cleanser + products irritation) electric razor with Nivea moisturizer) for Men shaving emulsion 2005 2000-2003 1999 • 3 product lines- Normal, • Face scrubs, facemask, • Q 10 formulation in face Sensitive and Fresh toner and oil control and eye cream7-Apr-11 STEVENS B SCHOOL
    30. 30. Case Study AnalysisNivea Sun Launched in 1930’s but consciously in 1970’s developed as an independent sub- brand 1980’s 1990’s 1997 1999 • Lotions in variety of • extended to include a • Line of moisturizing • Nivea sun spray and SPF factors and after line of sensitive skin sun cream co-branded Nivea sun kids sun sun products with Nivea Visage spray 2004 2002 2000 •Hair care product •Nivea firm sun lotion •Nivea sun after sun with UV protection cream with Q107-Apr-11 STEVENS B SCHOOL
    31. 31. Case Study AnalysisNivea Baby  Launched in 1970’s but failed to meet sales target  Re-launched in 1996  Included shampoos, conditioners, bathing soaps, lotions, wipes, powders, cremes, oils, sun protection  2005- Toddies (first all purpose wipe for babies)  Soft crème wipes – wipes soaked in baby soft cream7-Apr-11 STEVENS B SCHOOL
    32. 32. Case Study AnalysisNivea Baby7-Apr-11 STEVENS B SCHOOL
    33. 33. Case Study AnalysisNivea Hand  Launched Nivea Hand Age Control Lotion in 1998  In 2000, Nivea Hand Anti Age Q10 Plus7-Apr-11 STEVENS B SCHOOL
    34. 34. Case Study AnalysisNivea Lip – First introduced in 1902 under the brand name Labello – Focused on – essentila care, – beauty care, – sophisticated care and – performance care7-Apr-11 STEVENS B SCHOOL
    35. 35. 7-Apr-11 STEVENS B SCHOOL
    36. 36. Case Study AnalysisNivea Deo  In 1991,BDF extended presence in the personal care area with a line of deodorant products called Nivea Deo  Marketed on the assurance of mildness and caring 1995 2000 2004 2005 2006 • Nivea Deo Balsam – • Mild Care and Natural • Nivea “Fresh” – 24 hour • Aqua Cool for men • Nivea Pure for women – Sensitive Skin Freshness antiperspirant spray No white marks or • Nivea Deo for men • Nivea Deo Wipes – residue underarm cleanser in wipe form • Nivea Deo Compact – portable spray deodorant7-Apr-11 STEVENS B SCHOOL
    37. 37. Case Study Analysis 1999 2000 • Nivea Beaute Time • Color and CalciumNivea Beaute Balance Q10 makeup • Mascara Optimal 3 in 1 Nail polish  Second biggest brand launch after Q10 ingredient brand  First appearance in color cosmetics, in 1997  Consistency with Nivea’s core competency of care 2004 2003  Caring: Slogan which said "Colors • Lash Revolution • Velvet Mat Makeup that Care” Mascara with  Packaging: Deep blue hues elastoflex brush  100 different SKUs  High Fashion Design  Halo Effect on overall brand  Product in high image cosmetics category  Attracted new, younger consumers to 2005 the brand • Flex and Strong with Bamboo Nail polish7-Apr-11 STEVENS B SCHOOL
    38. 38. Case Study AnalysisNivea Beaute7-Apr-11 STEVENS B SCHOOL
    39. 39. Case Study AnalysisNivea Bath Care  Extended Nivea brand into skin-related personal care categories  Benefits  High quality, mild, caring benefits of Nivea brand  Added emotional benefit of pleasure 1993 1995 1997 1998 • Nivea Shower Milk- • Nivea Milk Bar • Nivea Aroma Bath • Nivea Bath Care Nivea Body Milk Care Shampoo and Shower lotion with Nivea • Aroma therapy trend for Kids Bath care • Nivea Bath Care Foam Bath for Kids 2005 2004 2002 2000 • Flavors • Shower massager • Nivea Shower Oil • Nivea Bath Care • Milk and Apricot with built in shower • Product Of the Year Shower Gel Body Wash gel in France • Relaunched to project • Rice and Lotus line a feminine image7-Apr-11 STEVENS B SCHOOL
    40. 40. Case Study Analysis 1996 1998 • Nivea Hair Care Styling Line • Better focus on “Hold” • 3 hair sprays and 3 hair gels • Ultra Strong MousseNivea Hair Care • Ultra Strong Hair Lacque • Power shopping  Nivea’s first hair care product launched in 1991  Hair care not viewed as skin related product line 2000 1999 • Nivea Hair Care Liquid Gel • Nivea Hair Care Shampoo for  Not aligned with Nivea’s key association as a • Nivea Hair Care Aqua Gel men – frequent use skin care provider • Wet look  Maintain strong link to Nivea’s core brand image  Pflege-Shampoo  Pflege-Spulung Early 2000s  Products emphasized mildness and care • Color Shine shampoos, conditioners and qualities treatments • Sun Hair Care products • After-Sun shampoo and conditioner • Sun Protection spray – UV rays salt & chlorine • Nivea Locken for curly hair7-Apr-11 STEVENS B SCHOOL
    41. 41. Case Study AnalysisNivea Hair Care7-Apr-11 STEVENS B SCHOOL
    42. 42. Case Study AnalysisNivea Intimate Care  Launched in 2004, only in Italy  Series of feminine care wipes & lotions  Emphasized on natural ingredients  Brand Image: Softness & Care7-Apr-11 STEVENS B SCHOOL
    43. 43. 7-Apr-11 STEVENS B SCHOOL
    44. 44. Case Study AnalysisNivea Branding Strategy  Cosmed worked with agencies FCB and TBWA to develop the marketing concepts and ad executions.  In each market, they implemented ‘perfect local execution’ with local agency affiliates The models or language may change so as tht NIVEA brand appears local but the content remains consistent.  As Norbert Krapp,NIVEA’s Vice President of skin care, stated: “Pictures travel, words don’t”.  Printed a booklet for internal use detailing its brand philosophy, called the ‘Blue Bible’.  Contained basic information about NIVEA’s brand identity, vision, mission, success factors, and the role of its sub-brands.  Provided guidelines for products, packaging, communication, promotion, public relations, direct marketing, and pricing.  Norbert Krapp referred to the Blue Bible as “the best [branding step] we did in recent years”, calling it the “key anchor” for all brand decisions.7-Apr-11 STEVENS B SCHOOL
    45. 45. Case Study AnalysisDirect Marketing For Nivea Vital & Nivea Visage  Largest campaign in France with database of more than 1 million  Development of Nivea magazine, in Germany, for the whole family specifically for men & younger adults7-Apr-11 STEVENS B SCHOOL
    46. 46. Case Study AnalysisNon-Traditional Marketing  The blue NIVEA beach ball  Distributed ball at European beaches each summer  First image campaign focusing on the NIVEA brand rather than the individual products.  Blue Santa Claus giving Crème in Germany  Double-decker Nivea-branded blue promotional bus in Russia  Mega Poster advertisement covering the outside of the Kremlin  Nivea Club in Austria in 19957-Apr-11 STEVENS B SCHOOL
    47. 47. Case Study AnalysisNon-Traditional Marketing  Nivea Care Centre in South Africa  “House of Nivea” store in Hamburg, Germany, 2006  Workshops for body & soul in Germany, the UK & the USA  Partnered with hospitals & sponsors young mothers in maternity wards  Care packages containing Nivea products  Free product samples and informational brochures7-Apr-11 STEVENS B SCHOOL
    48. 48. Case Study AnalysisEvent Marketing  Each country had an event manager responsible for the events  Sponsored various organizations in Europe  Beach lifesavers(lifeguards)  Children’s sailing programs  Beach volleyball tour  School education programs for safe sunbathing  Branded double-decker bus  Travelled to concerts and other youth oriented events  Consumer could get a total hair & face makeover at the bus  Nivea Hand product free with each Nivea Hand Anti-Age Crème Q10  Nivea shops in large German department stores  Extensive point of sale display  Beauty advisor in-house to help customers7-Apr-11 STEVENS B SCHOOL
    49. 49. Case Study AnalysisNivea.com  Global website – information about company and its history, products, markets, beauty advice and games  Designed with the blue harmony theme  Customized websites with local content for each country  Dedicated site for each sub-brand  Specialized beauty and skin care tips  Viral marketing campaigns in early 2000’s  Online sweepstakes, chat rooms and promotions  “Bridget Jones: the Edge of Reason” in 20047-Apr-11 STEVENS B SCHOOL
    50. 50. Case Study AnalysisResearch & Development  Continuous product innovation  In 2004, BDF spent €38 million on R & D centre in Germany7-Apr-11 STEVENS B SCHOOL
    51. 51. Case Study AnalysisNew Market Rollout Guidelines Nivea Creme Nivea Body Nivea Visage Nivea Beaute •Nivea Visage must be a market leader before Nivea Deo Nivea Soft its launch7-Apr-11 STEVENS B SCHOOL
    52. 52. Case Study AnalysisGeographic Growth Opportunities  Remained small player in the USA  In 2003, in $7 billion skin care market of the USA, share of Nivea = $180 million  In 2005, five sub brand in North America-  Nivea for Men  Nivea Crème  Nivea Body  Nivea Soft  Nivea Visage  Nivea Visage Q10 & Nivea Firming Lotion gaining success  Competitors: L’Oreal, Estee Lauder, Avon  Growing opportunities in emerging market7-Apr-11 STEVENS B SCHOOL
    53. 53. 7-Apr-11 STEVENS B SCHOOL
    54. 54. Case Study AnalysisOverall Brand Health  At the beginning of the 1990s, NIVEA was already a global brand with a wide range of products catering to the full spectrum of consumer segments.  Throughout the decade, NIVEA nurtured its existing sub-brands and moved into additional market segments by adding new sub-brands.  The company’s sub-brand strategy yielded remarkable results: between 1990 and 2000, every NIVEA sub-brand experienced sales growth and gained market share.  By 2005, NIVEA was a leading international skin care company and voted the most trusted brand in Germany by Reader’s Digest from 2001–2004.  Nivea management decided that the sub-brand strategy was effective. The company did continue, however, the Blue Harmony campaign for its flagship brand, Nivea Crème.  The company had to decide whether the sub-brand strategy would continue to work or if the company should leverage the Nivea brand with an umbrella strategy7-Apr-11 STEVENS B SCHOOL
    55. 55. 7-Apr-11 STEVENS B SCHOOL
    56. 56. Case Study AnalysisQuestion No. 1  What is the brand image and sources of equity for the Nivea brand? Does it vary across product classes? How would you characterize their brand hierarchy?7-Apr-11 STEVENS B SCHOOL
    57. 57. Case Study Analysis Keller’s Brand Equity Model Possible Outcomes Choosing Brand Elements Brand Awareness Greater loyaltyBrand name MemorabilityLogo Meaningfulness Less vulnerability to competitive RecallSymbol Appeal marketing actions and crises DepthCharacter Transferability RecognitionPackaging Adaptability Larger marginsSlogan Protectability Purchase Developing Marketing Programs Breadth More elastic response to price Consumption decreasesProduct Tangible and intangible benefitsPrice Value perceptions More inelastic response to priceDistribution channels Integrate”push” and “pull” Brand Associations increasesCommunications Mix and match options Relevance Greater trade cooperation and Leverage of Secondary Associations Strong Consistency supportCompany Desirable Increased marketing communicationCountry of origin Favorable Deliverable efficiency and effectivenessChannel of distributionOther brands Point-of-parity Possible licensing opportunitiesEndorser Unique Point-of-differenceEvent More favorable brand extension evaluations
    58. 58. Case Study AnalysisBrand Elements  Name:  The brand has derived its name from the Latin word Nivius meaning "Snow White".  Logo:  The dainty art nouveau design of the original NIVEA tin was replaced by a much simpler look: The blue tin with the word NIVEA in white celebrated its debut in 1925.  NIVEA’s visual identity: World-famous blue and white color combination  NIVEA blue - is not just any old blue, but “Ivocart NIVEA Blue B 65711” A special color mixed exclusively for NIVEA in a complex development process  Blue = sympathy, harmony, friendship and loyalty  White = external cleanliness as well as inner purity  Blue and White = ideal for honest and appealing brand7-Apr-11 STEVENS B SCHOOL
    59. 59. Case Study AnalysisBrand Elements  Product: Tag Line  Nivea Crème - “Nivea, The Crème De La Crème”; “Only Me” ; “Harmony In Blue”; “All That Skin Needs To Live”  Nivea For Men “Less Alcohol, More Care”  Nivea Hand - “Apparently You Can Tell A Woman’s Age By Her Hands… Now You Can Lie A Little”  Nivea Beaute - “Colors That Care”  Nivea Sun - “Where It’s Green, It Won’t Be Red”  Nivea Sun – “The New Nivea Sun Makes The Sun Gentle”  Nivea Visage “Anti-age” - “Science In All Confidence”  Nivea Visage – “Get Fair, Stay Fair”  Nivea Bath Care- “Delightfully Gentle And Creamily Mild”  Nivea Hair – “Entire Care For Frequently Washed Hair”  Niveo Deo: Aqua & Cool- “The Deo That Even Cares For Your Skin”7-Apr-11 STEVENS B SCHOOL
    60. 60. Case Study AnalysisMarketing Program PRODUCT • Nivea has expanded significantly to offer a comprehensive choice of moisturising, protection and care expertise in the face, body, hand, lip, mens, sun and deodorant markets.  Skin Care—NIVEA Body, NIVEA Visage, NIVEA for Men, NIVEA Sun, NIVEA Baby, NIVEA Crème, NIVEA Vital, NIVEA Soft, NIVEA Hand, and NIVEA Lip.  Personal Care—NIVEA Deo, NIVEA Beauty, NIVEA Hair Care, NIVEA Bath Care, and NIVEA Intimate Care.7-Apr-11 STEVENS B SCHOOL
    61. 61. Case Study AnalysisMarketing Program PRICING  Consumer price perceptions  Reasonable price so that consumer perceives a balanced cost-benefit relationship PLACE  Indirect channels  Selling through wholesalers or distributors, and retailers or dealers  Pull strategy through advertising7-Apr-11 STEVENS B SCHOOL
    62. 62. Case Study AnalysisMarketing Program PROMOTION  In each market, they implemented ‘perfect local execution’ with local agency affiliates  Simple, plain & informative ads  Printed a booklet for internal use detailing its brand philosophy, called the ‘Blue Bible’.  Direct Marketing  Non-Traditional Marketing  Event Marketing  Nivea.com  Harmony in Blue for Nivea Crème7-Apr-11 STEVENS B SCHOOL
    63. 63. Secondary Association  Event :  Company : Beirsdorf , BDF  Sponsored various organizations in Europe  Beach lifesavers(lifeguards)  Children’s sailing programs  Country of origin : Germany  Beach volleyball tour  School education programs for safe sunbathing  Channel of distribution : Indirect Channels  Branded double-decker bus  Travelled to concerts and other youth oriented events  Endorser : Real, inspirational  Consumer could get a total hair & face makeover at the bus  Nivea Hand product free with each Nivea people Hand Anti-Age Crème Q10  Nivea shops in large German department stores  Extensive point of sale display  Beauty advisor in-house to help customers7-Apr-11 STEVENS B SCHOOL
    64. 64. Case Study AnalysisBrand Awareness  Nivea is the worlds largest skincare brand with a strong international presence in around 170 countries and an enviable reputation.  Most trusted brand in Germany, 2001-2004, Readers Digest7-Apr-11 STEVENS B SCHOOL
    65. 65. Case Study AnalysisCBBE Pyramid7-Apr-11 STEVENS B SCHOOL
    66. 66. Case Study Analysis CBBE Pyramid Resonance: Attachment, Community Judgments: Credibility, Superiority Feelings: Safe, Warmth, Pleasure, SatisfiedPerformance: Imagery: Heritage, For family, UniversalQuality, Mild & Gentle, Caring & protective, applications, Blue HarmonyPure Salience: Various products and purposes, Blue tin 4/7/2011 STEVENS B SCHOOL
    67. 67. Case Study AnalysisBrand Association Strong Favourable Unique High And Consistent Quality Caring & Protection A Complete Caretaker Of Skin Reliability Pleasant Fragrance A Universal, Unisex Acceptance Blue Colour Tin / White Logo Gentleness Special Product Range For Men Luxurious Brand Mildness/ Smooth World Known Brand Heritage Fair Price Trust7-Apr-11 STEVENS B SCHOOL
    68. 68. Case Study AnalysisBrand Hierarchy Skin Care Personal Care • NIVEA Body, • NIVEA Deo, • NIVEA Visage, • NIVEA Beauty, • NIVEA for Men, • NIVEA Hair Care, • NIVEA Sun, • NIVEA Bath Care, • NIVEA Baby, • NIVEA Intimate Care • NIVEA Crème, • NIVEA Vital, • NIVEA Soft, • NIVEA Hand, • NIVEA Lip7-Apr-11 STEVENS B SCHOOL
    69. 69. Case Study AnalysisQuestion No. 2  What are the pros and cons of the sub-brand strategy? Should Nivea run a corporate brand or umbrella ad for all of their products? What is the role of the Nivea Crème advertising? Should it be changed?7-Apr-11 STEVENS B SCHOOL
    70. 70. Case Study AnalysisPros And Cons Of The Sub-brand Strategy PROS • Each sub-brand had its own personality and developed its own set of brand associations that were consistent with, but independent of, the Nivea crème core brand image • Continuity + Innovation: Continue to nurture core Nivea associations while widening its applicability • Separate budget for each sub-brand • To take care of specific skin care and personal care needs of their target market segments • Reinforce and elaborate on the image of Nivea as a skin care specialist • Benefitted from the ‘Halo’ effect of the Nivea name – Trust, care, mildness, fair price CONS • Concern that Nivea Crème brand image had been weakened through all the product introductions • Complicated, risky &send a confusing set of messages about what the Nivea represented • Cost of developing several new brands in a limited time period would be considerable7-Apr-11 STEVENS B SCHOOL
    71. 71. Case Study AnalysisRole Of The Nivea Crème Advertising  Cosmed worked with its advertising agency, TBWA to communicate a certain “Niveaness” in all ads & promotions  Campaign should incorporate the brand values:  Timeless & ageless  Motherhood & a happy family  Honesty  Trustworthiness  Benefits of mildness & quality  Other guidelines:  Common emotions in all ads  A uniform Nivea logo  Consistent lettering & typeface  Real, inspirational people in the ads  Understable copy about the product  ‘’Blue Harmony’’ , campaign  Nivea sub-brands adopted the design elements (block and cursive combinations) of the Nivea crème ads, & contained “Nivea” message of quality & care7-Apr-11 STEVENS B SCHOOL
    72. 72. Case Study AnalysisRole Of The Nivea Crème Advertising  No, in my opinion the advertisement should not be changed:  Nivea, still the important image carrier  Core brand of the company; synonymous with blue tin & white lettering  Automatic transferring goodwill to the other product classes7-Apr-11 STEVENS B SCHOOL
    73. 73. Case Study AnalysisQuestion No. 3  Discuss the risks and benefits of Nivea’s brand extension into new product categories and customers. How have Nivea’s executives managed this extension? Have they missed opportunities such as perfume or foot care?7-Apr-11 STEVENS B SCHOOL
    74. 74. Case Study AnalysisBenefits of Extensions  Long term objective: (Skin crème-> skin care)  Company Philosophy: To respond to market trends & innovate through R & D  Facilitate new product acceptance  Widening applicability & enhancing meanings  Reduce risk perceived by customers (Halo effect)  Increase the probability of gaining distribution and trial  Expand the market share
    75. 75. Case Study AnalysisRisks of Extensions Can confuse/ frustrate consumers (complicated, risky) Can fail and hurt the parent brand image (Nivea crème) Can succeed but cannibalize sales of parent brand Can succeed but diminish identification with any one category Can dilute brand meaning
    76. 76. Case Study AnalysisExtending the Nivea Brand Skin Care & Skin Creme Personal Care Mono product philosophy:  Only one product promising consumers universal application in each product category  Second version of a particular product could be introduced only if it satisfied a unique need not meet by the current product(s) in its category7-Apr-11 STEVENS B SCHOOL
    77. 77. Case Study AnalysisExtending the Nivea Brand Set of Guidelines:  Meet a basic need: clean & / or protect  Offer the special care / mildness benefit of Nivea Crème  Be simple & uncomplicated  Not to offer to solve only a specific problem  Maintain a leading position in terms of quality  Offer the product at a reasonable price so the consumer perceives a balanced cost-benefit relationship  Offer the broadest possible distribution7-Apr-11 STEVENS B SCHOOL
    78. 78. Case Study AnalysisExtending the Nivea Brand  Has always responded to consumer expectations & market trends.  Believed in continuity + innovation; new & improved product in each category  Gradual innovation  Still not missed the opportunities of perfume or foot care but have a competitive edge of the large market share & trusted brand so it can go for the big move.7-Apr-11 STEVENS B SCHOOL
    79. 79. Case Study AnalysisQuestion No. 4  Should Nivea pursue a Men’s grooming category? Does the company risk alienating its core customer base of families and women or is this a natural next brand extension?7-Apr-11 STEVENS B SCHOOL
    80. 80. Case Study AnalysisNivea for Men  Nivea for Men line included  Two new fairness products - a Whitening Moisturizer and Multi-White Whitening Facial Foam.  Deodorant Aqua Cool,  Multi Protecting Facial Foam,  Moisturizing Shaving Foam,  Shaving Gel and  Cooling Gel Moisturiser, a light hydro gel, with Iso Magnesium and Mint Extracts Less alcohol, more care7-Apr-11 STEVENS B SCHOOL
    81. 81. Case Study AnalysisNivea for Men  Nivea should pursue the men grooming category  All sub brand are catering to some specific need, so it wont hurt the company’s brand image of unisex  It is a result of innovation: a complete care for men’s skin for the metrosexual men  Men’s skin care market is growing now & Nivea took the advantage of first move & its image of quality & care .7-Apr-11 STEVENS B SCHOOL
    82. 82. Case Study AnalysisQuestion No. 5  What would you do now? What recommendations would you make to Nivea concerning next steps in their marketing program?7-Apr-11 STEVENS B SCHOOL
    83. 83. Case Study AnalysisRecommendations  Though Nivea is growing in emerging market, it has a tough competition with other skin care brands.  To become a global brand, the product adaptation has to be done  For this, no sacrificing of the brand image of quality & care  Adapt as per the consumer profile of the nation  Pricing: For emerging market, the price needs to be fine-tuned7-Apr-11 STEVENS B SCHOOL
    84. 84. THANK YOU7-Apr-11 STEVENS B SCHOOL

    ×