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NIVEA, ONE OF THE LEADING SKIN CARE BRANDS IN THE
WORLD, HAS COME A LONG WAY
FROM
MEDICAL PLASTERS TO SKIN CARE
 ESTABLISHED IN 1882 BY PAUL C. BEIRSDORF
WITH A PATENT FOR MEDICAL PLASTERS
 NAMED IN 1911 BY OSCAR TROPLOWITZ, ‘NIVIA’...
THE CASE DESCRIBES:
->BRAND MANAGEMENT STRATEGIES FOR ITS
LARGE RANGE OF PRODUCTS
->ITS JOURNEY FROM A ONE PRODUCT BRAND
T...
 Nivea is brand of Beiersdorf, a German based company owning various other
cosmetics brands
 In year 2003, company was p...
The brand had a 15% market share in the global skin care
products market in 1990
Market leader in:
->Skin creams and lotions in 28
countries
->facial cleansing in 23 countries
->facial skin care in 18 co...
Between 1991 and 2001, Nivea posted double-digit growth rates every year
For the year 2001, brand generated revenues of ...
 The target segment of Nivea were primarily women
from the upper strata of society
 Mass-marketing
 Taking the help of ...
 Beiersdorf wanted to go global with the Nivea
brand, so they extended their product
categories
 Geographical conditions...
 As the competition increased in skin care market it was
necessary for Nivea to extend its brand in order to be a-step-
a...
UMBRELLA BRANDING
An umbrella brand is a brand that covers diverse kinds
of products which are more or less related
It applies also to any...
The same brand supports several products in
different market
The main advantage of using umbrella branding
strategy is t...
Umbrella branding strategy also helps in brand
awareness and brand recalling
An umbrella brand strategy allows the core ...
If the brand is not managed well, then it’s a threat
for its associate brands
If the core brand is not stronger than its...
They never use animal fats in any form in their products
Their product is completely made of natural ingredients whatsoe...
It’s a mass market brand which offers the largest skincare assortment to
people all over the world
It always works hard ...
HOW WAS NIVEA SET UP?
INTRODUCTION OF THE BRAND
THE COMPANY OVERVIEW
MARKET SHARE
FACTS AND GROWTH PARAMETERS
MARKET...
DISCLAIMER
MADE BY:
PRATEEK MOHAPATRA
[MANIPAL INSTITUTE OF TECHNOLOGY]
MARKETING INTERNSHIP UNDER PROF. SAMEER MATHUR
NIVEA MARKETING CASE STUDY
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NIVEA MARKETING CASE STUDY

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A marketing case study of Nivea done during a marketing internship under Prof. Sameer Mathur, IIM Lucknow

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NIVEA MARKETING CASE STUDY

  1. 1. NIVEA, ONE OF THE LEADING SKIN CARE BRANDS IN THE WORLD, HAS COME A LONG WAY
  2. 2. FROM MEDICAL PLASTERS TO SKIN CARE
  3. 3.  ESTABLISHED IN 1882 BY PAUL C. BEIRSDORF WITH A PATENT FOR MEDICAL PLASTERS  NAMED IN 1911 BY OSCAR TROPLOWITZ, ‘NIVIA’ IS DERIVED FROM THE LATIN WORD ‘nix’, WHICH MEANS ‘SNOW’
  4. 4. THE CASE DESCRIBES: ->BRAND MANAGEMENT STRATEGIES FOR ITS LARGE RANGE OF PRODUCTS ->ITS JOURNEY FROM A ONE PRODUCT BRAND TO AN UMBRELLA ENTERPRISE ->THE STRATEGIES ADOPTED TO ENSURE THAT BRAND DILUTION DID NOT HAMPER ITS UMBRELLA BRANDING INITIATIVES
  5. 5.  Nivea is brand of Beiersdorf, a German based company owning various other cosmetics brands  In year 2003, company was present in over 14 product categories  These product categories were serving people IN OVER 150 countries
  6. 6. The brand had a 15% market share in the global skin care products market in 1990
  7. 7. Market leader in: ->Skin creams and lotions in 28 countries ->facial cleansing in 23 countries ->facial skin care in 18 countries ->suntan products in 15 countries
  8. 8. Between 1991 and 2001, Nivea posted double-digit growth rates every year For the year 2001, brand generated revenues of 2.5 billion Nivea was the single largest factor for 4.4% increase in the company’s revenues and 10.7% increase in PAT for the year 2002
  9. 9.  The target segment of Nivea were primarily women from the upper strata of society  Mass-marketing  Taking the help of advertising for brand recognition  Expanding the brand globally
  10. 10.  Beiersdorf wanted to go global with the Nivea brand, so they extended their product categories  Geographical conditions of various countries also motivated Beiersdorf to extend their brand to a variety of places  Beiersdorf wanted to increase the brand equity of Nivea, that’s why they adopted the strategy of product category extension
  11. 11.  As the competition increased in skin care market it was necessary for Nivea to extend its brand in order to be a-step- ahead of their competition  To tap all age groups of consumers, both male and female, it was essential for Nivea to extend its brand  Brand Extension is one of the latest product development strategies, which can reduce financial risk by using the parent brand name, so Nivea decided to extend it product categories to tap a brand new set of consumers
  12. 12. UMBRELLA BRANDING
  13. 13. An umbrella brand is a brand that covers diverse kinds of products which are more or less related It applies also to any company that is identified only by its brand and history An umbrella brand is used as a place brand by localities to attract the attention of different kinds of audiences, e.g. incoming tourists, investors or students
  14. 14. The same brand supports several products in different market The main advantage of using umbrella branding strategy is the capitalisation on one single name The umbrella branding strategy also helps new product to penetrate in the market
  15. 15. Umbrella branding strategy also helps in brand awareness and brand recalling An umbrella brand strategy allows the core brand to be nurtured by being associated with products with which it was not previously associated An umbrella brand strategy also helps companies to reduce promotional and advertisement costs
  16. 16. If the brand is not managed well, then it’s a threat for its associate brands If the core brand is not stronger than its extension, it may destroy the brand image Sometimes the brand communication strategy of the core brand affects the extension brand i.e the message that the core brand is communicating is not clear
  17. 17. They never use animal fats in any form in their products Their product is completely made of natural ingredients whatsoever It has a strong brand personality which is emotionally involving, based on trust and love Its products meet consumer needs in every form
  18. 18. It’s a mass market brand which offers the largest skincare assortment to people all over the world It always works hard to keep its brand young, attractive, energetic and sympathetic to the masses The Nivea brand has always been closely linked with its consumer base
  19. 19. HOW WAS NIVEA SET UP? INTRODUCTION OF THE BRAND THE COMPANY OVERVIEW MARKET SHARE FACTS AND GROWTH PARAMETERS MARKETING STRATEGY GLOBAL BRAND EXTENSION THE UMBRELLA BRAND (PROS AND CONS) CORE VALUES
  20. 20. DISCLAIMER MADE BY: PRATEEK MOHAPATRA [MANIPAL INSTITUTE OF TECHNOLOGY] MARKETING INTERNSHIP UNDER PROF. SAMEER MATHUR

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