Nivea case Study


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Nivea case Study

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Nivea case Study

  1. 1. NIVEA:MANAGING A BRAND HIERARCHY Section A ; Group 9 Ajay Bharathi G FT12306 Harendra Singh FT12127 Kushagra Prasad FT12227 Rohit Agrawal FT12351 Tushar Arora FT12168
  2. 2. WHAT is BRAND Hierarchy “A brand hierarchy is a useful means of graphically portraying a firm’s branding strategy by displaying the number and nature of common and distinctive brand elements across the firm’s products, revealing the explicit ordering of brand elements” Section A GROUP 9 2
  3. 3. Development of NIVEA brand 1912: NIVEA Crème introduced into the German market. 1912-1970: Range of products (48 new products) introduced and expanded under Nivea brand - maintaining a mono-product philosophy . 1970 - 1993 :Stiff competition from Ponds, Henkel, Unilever. NIVEA – primarily through NIVEA crème had aquired a unique, widely – understood brand identitiy as a “caretaker” of skin. Section A GROUP 9 3
  4. 4. Development of NIVEA brand Sales grown from $826 million in 1994 to $1831 in 2000, 121.6% growth Two-Prong strategy: Stabilize strong historical market position -Larger sized units; special line outlets to food outlets; Aggressive Ad campaigns Transfer the goodwill to other products  Skin creme to Skin care and personal care brand. Nivea Universe. Continuity and Innovation Section A GROUP 9 4
  5. 5. BRAND ASSOCIATION CARE Protection Mildness Gentleness Trustworthy/Reliable Pure Simple Multipurpose/Universal For Family Heritage Section A GROUP 9 5
  6. 6. Brand Image of NIVEA Strength of Brand Association:Rich set of Association like Care, mildness, reliability,gentleness, protection, high quality, feeling good &reasonably priced.The Nivea woman- reflected in Ads as clean, fresh and natural. Favorability of Brand Association:Used by Entire FamilyUniversal, Unisex, satisfying multiple needs.Associated with Mother-Child relationship, Family vacation. Uniqueness of Brand AssociationComplete caretaker of skinCaring and protectiveAnti - Aging Section A GROUP 9 6
  7. 7. CBBE PYRAMID RESONANCE: Attachment Community JUDGEMENT: Credibility Superiority FEELINGS: Warmth Fun PERFORMANCE: Quality, Mild & Gentle, Caring & protective pure IMAGERY: Heritage, For Family, Universal Application SALIENT: Multi-forms and purposes Section A GROUP 9 7
  8. 8. EXTENDING THE NIVEABRAND GUIDELINES: Meet basic needs: clean/protect. Offer the special care/mildness benefits of NIVEA crème. Be simple. Not offer to solve a specific problem. Offer the broadest possible distribution. Balanced cost benefit relationship. Maintain a leading position in terms of quality. Section A GROUP 9 8
  9. 9. NIVEA BRAND PORTFOLIO NIVEA SKIN CARE FACE Nivea crème CARE/COSMETICS Nivea Visage PERSONAL CARE Nivea Body Nivea Vital Nivea Deo Nivea Soft Nivea Beaute Nivea Bath care Nivea Hand Nivea Lip care Nivea Hair Care Nivea Sun Nivea Baby Nivea for Men Section A GROUP 9 9
  10. 10. Early Advertising Basic Theme - Simple, Plain, Informative Image of NIVEA women as clean, fresh and natural. 1920’s Three happy, healthy lads Extended the freshness and natural Image to entire Family Section A GROUP 9 11
  11. 11. Later Advertising Continued to represent the heart of NIVEA products - trust, sympathy and care Along with their own functionalities. Blue Harmony campaign in 1992 to show the spirit of NIVEA in NIVEA Creame Section A GROUP 9 12
  12. 12. Going Forward Better Market Mix - Better products, Premium pricing enhancing quality, Outlets and saloons of NIVEA etc. Eco-Friendly products - Introducing Green/Herbal products along with promotion through CSR activities. More emphasis on local needs for developing countries. Europe should remain on primary focus. Section A GROUP 9 13
  13. 13. LEARNINGS Sub- Branding Strategy is best for a company having large Brand Breadth. Focus on Brand Values and mantra and associate the same to all the product lines. NIVEA leveraged the Brand Equity earned over decades to gain more and more market penetration. Offer a huge category of products in order to cater almost every need of market. Products and Ads should reflect the local connect. Section A GROUP 9 14
  14. 14. Video Section A GROUP 9 15
  15. 15. Section A GROUP 9 16