Setting Product Strategy Nivea Mini case.

1. Case Study: Nivea
Ithelpsprotectyourskin

2.  Nivea is the most recognized skin and beauty care brand in
theworld.
 Nivea is brand of Beiersdorf a German based company owing
various other cosmetics brand.
 In 1882, pharmacist PaulC. Beiersdorf established his
company with a patentfor medical plaster.

3.  Beiersdorf sold his company to OscarTroplowitz in 1890.
 By 1911, Oscarhad developed the world’s first stable skin creambased on a
water-in-oil emulsion.
 In year 2003, company was present in over 14 product categories.
 These product categories were serving peoples of 150 countries.
 Nivea comes from the Latin word niveus/nivea/niveum (meaning snow-white).
 Thebrand had a 15% market share in the global skin careproducts marketin
1990.

4. Marketleader in: -
• skin creams and lotions in 28 countries.
• facial cleansing in 23 countries.
• facial skin care in 18 countries.
• suntan products in 15 countries.
Nivea was believed to be the brand of local origin in
many of these countries which helped them in
becoming the market leader.

5. • Between 1991 and 2001, Nivea posted
double-digit growth rates everyyear.
• Forthe year 2001, brand generated the
revenues of 2.5 billion.
• Nivea was the single largest factorfor 4.4%
increase inthe company’s revenues and
10.7% increase in PAT for the year 2002.

7. Niveaas an Brand

8. Blue and White
For Family
Purpose
Trustworthy
and Reliable
Care,
Protection
Pure

9. Judgments Feelings
Performance Imagery
Salience
Resonance
Resonance:Commitment:Continuous use
in winter;No BrandSwitching
Judgments:
Widerangeof products,Reliable,Consistent,
Feelings:Freshness, Good , Satisfied,Soft,
Sophistication
formance:
ing& Protective,HighCost, Attractive
kaging,PleasantFragrance, HighQuality,
d, Gentle,Smooth,knowledgeaboutits
ltiplefunctions
Imagery:Blue tin& whitelogo, Used in winter
since childhood, Fordryskin,Sincere,
Sophisticated, Targetedtomales &femalesofage
under40yrs
Salience:
Variousproducts andpurposes,

11.  Nivea’s Business andBranding Architecture – Heliocentric Vision. Itclearly showsthatthe
NIVEABRANDisat its center, theSTARshining throughevery productandheating sales. Its
PRODUCTSarethesurrounding planetsthat,througha marketing perspective, haveno light
source oftheir own.

14.  In acase study published by The Times 100, NIVEA revealed that its first
marketing planning step was to conduct an evaluation of the business, its
brands and products.
 A SWOT (strengths, weaknesses, threats and opportunities) analysis
revealed some surprising facts, including that women are an important
target market for NIVEAFOR MENbecause they often buy male
grooming products for their partners as well as help them choose which
products to buy.

15.  Using research data to forecast trends, the
marketing team setSMART (Specific,
Measurable, Achievable, Realistic)
objectives for the NIVEA FORMEN re-
launch.
 This helped them set specific targets for
increasing sales, growing market share
and improving its brand image.

16.  NIVEA sought to build on and develop the approach it had used in the past. In the
1980s, advertising in men’s style and fashion magazines along with product
sampling was a majorpromotional tool.
 In the 1990s, the company used radio, television and press advertising together
with sampling.
 Since2000, there has been a greateremphasis on consumerneeds and an
increasing use of experiential activities in the promotional mix.
 Experiential marketing is about engaging consumers through two-way
communications that bring brand personalities to life and add value to the target
audience. This helps build an emotional connection between the brand andthe
consumers.

18.  The NIVEAmarketerssay continuous evaluationhelpsthemfocus on modifyingor
introducing newactivitiesto achieveobjectives.
 NIVEAFOR MENadopted a range of keyperformanceindicatorsto assessthe success
of the NIVEAFOR MENre-launch in the UK. It lookedat:
◦ Marketshare—NIVEA FOR MEN ismarketleader inmanycountries andis consistently
gainingadditionalmarketshare.
◦ Overall sales—Internationally,NIVEA FOR MENskincareproductsgrewby almost20
percent.
◦ Brandimage—The line was namedthe Best SkincareRangewinnerinthe FHM
Grooming Award,as votedforbyconsumers.
◦ Productinnovation — NIVEA FOR MENlistened tocustomer feedbackand added
productstoits lineand reformulatedexisting products.
 Throughmarketingplanning, NIVEAFOR MEN continues totake advantage of
evolving male attitudestoward using skincare products.

19.  Nivea continued its international expansion strategy witha series of local
product adaptions while the brand appearance was standardized.
 In Asiancountries, for example, facialproducts sold much better since
they contained gradients promoting a fair complexion whereas in the
Middle east localfragrances like musk were used.
 Nivea Sun offers a complete range of caring products for the whole
family, from sun sprays to children's protection and sunless tanning
products.

20.  The Blue Agenda defines the course of Nivea's future, that is to be no. 1
skin care brand in relevant categories and market.
 Acquisitions will also form a part of future strategies, particularly in the
skin and beauty care region. Given the stagnant European market, it is
expected that the acquisition trailwill be led in the developing countries,
which will againsee China, India, Braziland Russia as the key focus for
the businesses that provide strong synergies.

21.  Created by :SachinSharma, Delhi College of Arts and
Commerce, during an internshipby Prof. Sameer
Mathur, IIM Lucknow