A case Study on Nivea- Presentation- Marketing Management- Price Promotion- 4P's

1. NIVEA NIVEA
Creme
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2. History of Nivea
 Nivea has a history of over 100 years
 In 1882, Pharmacist Paul C. Beiersdorf established a
company with the patent of medical plasters.
 In 1911, Beiersdorf sold his company to Oscar
Troplowitz.
 Before Nivea, Eucerit had to be invented.
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3. History of Nivea
 Dr Isaac Lifschütz had developed this completely new
emulsifier by 1911.
 By 1911, Oscar Troplowitz had developed the world’s
first stable skin cream based on a water-in-oil
emulsion.
 The name NIVEA comes from the Latin words “nix,
nivis” and means “snow”. When translated, NIVEA
literally means “snow white”.
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4. Evolution of Logo 4

5. Evolution of Packaging 5

6. Summary of the Case
 By 1914, the company already generated
42% of their sales outside of Germany and
was doing business in 34 countries.
 After 14 years of market introduction,
Nivea underwent that we now call
relaunch.
 After modernizing the package, the
positioning strategy was changed to keep
up to the social changes.
 Healthy Suntan- reflects the changed idea
of beauty.
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7. Summary-World War 2 Crisis
 After the crisis period during World War II, the company
started anew.
 Nivea’s trademarks were seized by victorious nations.
 Soon after the World War, Beiersdorf started buying
back the trademarks.
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8. Summary of the Case
 In 1963, Nivea introduced world’s first liquid
cream- Nivea Milk.
 Nivea Men After Shave Balsam- First after shave
soothing product in 1980.
 Nivea, by 1990s was the world’s leading skin
care brand with standardized global brand policy.
 Expanded it’s products into new areas like
makeup, men’s facial cream and deodorants.
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9. Summary of the Case
 After 10 years of standardizing its brand policy, sales
quadrupled and Nivea became Beiersdorf’s largest
brand.
 Not all line extensions were successful.
 Purchase of C-bons in 2007 was a flop.
 Nivea’s sales dropped in Western Europe for several
years in a row.
 Continued international expansion strategy with a series
of adaptations of local products while brand appearance
was standardized.
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10. Summary of the Case
 In Asian Countries, facial products were sold
better as they contained ingredients
promoting fair complexion.
 In Middle East local fragrances like musk
were used.
 In 2011, Beiersdorf restructured Nivea’s
product portfolio and brand appearance,
Logo and Packaging was changed.
 Nivea for men renamed as Nivea men to
strengthen brand’s position.
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11. Summary of the Case
 Product line was rearranged.
 Several products and Categories that were not in sync
with renewed core values and were not successful
were abandoned.
 Product portfolio was reduced by 25% specially in
categories that are over-segmented like Deodorants.
 Beauty was dropped as additional core value.
 Makeup products were withdrawn.
 In-Shower body Moisturizer- highly innovative and
successful product.
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12. Nivea-At present
 One of the Strongest Face care brands.
 About 30% of the women around the world use
Nivea products.
 The Global brand awareness of Nivea is 93%.
 Market leader in Skin care segment in 46
countries.
 Repeatedly voted as the Most Trusted Skin Care
Brand by consumers in 12 European Countries.
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13. Company overview
 Nivea comes from latin word niveus/nivea/niveum(mean:
snow white)
 Mr. Oscar Troplowize was the owner of this company and
also he was the person who named it nivea.
 Nivea is the brand of Beiersdorf, a German based company
owing various other cosmetic brands.
 In year 2003,company was present in over 14 product
categories.
 These product categories were serving people of 150
countries.
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14. Market share
 The brand had 15%market share in global skin care products
market in 1990.
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15.  Market leader
Skin cream and lotions in 28 countries
Facial cleansing in 23 countries
Facial skin care in 18 countries
Suntan product 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.
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16. Growth of Nivea
 Between 1991 and 2001 Nivea posted double digit
growth rate every year.
 For the year 2001,brand generated the revenues of
2.5 billion.
 Nivea was the single largest factor for 4.4%
increase in company revenues and 10.7% increase
in PAT for the year 2002.
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17. Core values of Nivea
 They were not using animals fats in their product. Their product is
made off natural ingredients.
 Nivea has strong brand personality.
 Nivea product meet consumer needs.
 Nivea is the mass market brand which offers the largest skincare
assortment.
 Nivea brand is always closely linked with consumer
 Nivea is truly global product and its product are same every where.
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18. Nivea first competitive challengs: The 1972
 Nivea held over 35% multipurpose market in Europe
 Henkel-khasana lunched creme 21(multipurpose cream) In 1972.
 BDF performed a study on Nivea brand image in Germany
 BDF developed two prolonged strategy
Stabilize the strong historical market position of Nivea crème.
Transfer the Nivea crème goodwill to other product classes.
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19. Competitor analysis of Nivea
 Nivea has five prominent competitors in Indian market.
1.Ponds
2.Johnsons
3.Lakme
4.Vasline
5.Dove
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20. Marketing strategy
An umbrella brand
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21.  Product strategy: Over period of time Nivea has branded it self as skin care solution for both men and
women.
 Target market: Nivea target market will be people of all ages and gender.
 Motive: Nivea’s only motive is to be the worlds no-1 body and skin care brand via its wide range of
product portfolio.
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22. SWOT Analysis
WEAKNESSES
THREATS
Competition
Marketing Concerns
Government
Regulations
STRENGTHS
OPPORTUNITIES
Innovation of new product lines
Targeting Men’s market
The growth of market potential
Expansion of territories
T
W
O
S
Market Leader
Brand Equity
Distribution
Brand Colors
Brand Extensions
Tough Competition
Investment required
Expansion
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23. STRENGTHS
• Market Leader in Cold Cream Segment: Nivea totally rules the demand for cold cream. No other brand
has achieved the brand-recall stage of being a cold cream as Nivea. Nivea’s success is shown by its
popularity as a cold cream.
• Brand Equity: Over the years, Nivea has earned recognition for its products and is the largest brand in the
world and the top-ranked brand in Germany. The brand is estimated at 6.7 trillion dollars.
• Distribution and geographic footprint: Nivea has about 20 products and is present in a total of 50
countries. This adds to its capacity for distribution, which is rising year after year.
• Brand Colors: The white and blue colors of the brand are visible in a wide shelf of personal care items.
Over the years, the colors have remained unchanged and are synonymous with the brand. To this end, the
Marketing Department has won recognition time and again for the use of brand colors through Nivea’s
contact platforms.
• Brand Extensions: Nivea has extended its segment under the brand name of Nivea. Nivea products include
Nivea Body Cleansing, Nivea Soft Shower Cream, Shower Gel, UV body lotion, Express hydration body
lotion, Nivea Cool Kick Shower Gel, and Nivea Power Fresh Shower Gel.
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24. WEAKNESS
• Tough Competition: Nivea is completely dominant in the cold cream market and does not
encourage others to join, others do not allow Nivea to enter their territories. As a result, Nivea
finds it difficult to position itself in the personal care market of body care and facial care products
because there is still significant competition in this segment.
• Investment required to change brand perception: this is a double-edged sword. On the one
hand, Nivea has a fantastic benefit by covering a lucrative market: cold cream. But on the other
hand, if it has to thrive, it has to change its brand name and become more of a personal care brand.
It’s for the men’s cream. Yet the brand as a whole is heavily geared towards cold creams.
• Expansion: Several experts condemn Nivea that the company is only present in 50 countries, even
though it has such a good brand name. The challenge Nivea faces is that unlike FMCG firms, it
does not have so many products in its portfolio. It has to be gradual with expansion. Saturation is
an issue with Nivea and brand expansion is the key to higher sales.
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25. OPPORTUNITIES
• The innovation of new product lines: Nivea would continue to incorporate products and product lines
to its portfolio of brands. This will allow the firm to have a broad product range in which to position
itself firmly in new markets and to crack the stigma of being a supplier of cold cream.
• Targeting Men’s market: There are fewer personal care products in the men’s category and this
segment is ripe for choice with more and more men recognizing the value of taking care of their skin and
the role it plays in their general well-being and wellbeing. Nivea has already launched facial wash and
body wash in this category and has been favorably received. More product lines that it launches can be
assumed to be the same.
• The growth of market potential: Another positive is that the market potential for personal care goods
is growing. Not only is the demographic potential of the industry growing, but the regional market
potential is also growing, thereby ensuring a strong future for the brand.
• Expansion of the territories: In addition to the introduction of new items, Nivea should extend into
new geographies. If not, rivals such as Ponds cold cream, will soon be available on the market thanks to
their outstanding delivery capacity and take its place.
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26. THREATS
• Competition: While Nivea plans to expand into uncharted territory, brands are attacking its core strength
of being the go to cold cream. Namely two brands are the dominant competitors – Ponds cold cream and
Johnson and Johnson cold cream. Both are strong competitors for Nivea because they have deep pockets
and fantastic distribution coverage.
• Normal Marketing Concerns: Nivea has faced a variety of root problems with their marketing as well as
major fines levied as a result of false marketing statements. These inaccurate messaging problems are a
tooth on the brand that if replicated, will harm the brand.
• Government Regulations: Government Norms for cosmetics and skin care creams can directly or
indirectly affect the company’s business.
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27. Nivea Marketing Strategies
Nivea is flexible in terms of utilizing the marketing
strategies. The brand has continuously evolved itself to sustain in
the market with various strategies and operation activities. Some
of the important strategies that has helped nivea thrive in the
market since year are.
• Packaging
• Positioning
• Segmentation
• Innovation
• reduction
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28. PACKAGING
Although Nivea products share the same tone of packaging, they are
reasonably differentiated to avoid confusion to the customers. All the
products share the same logo which inherit the tone of brand value to the
customers and nivea packaging standards are high that analysis stated that
the nivea packaging is visually appealing for the customer to choose the
product.
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29. PACKAGING
Nivea has been updating its logo ever since the product
foundation. It has updated its shade of color, and font of the naming
at every concerned time. But they have sustained the brand identity
while making alterations. Nivea like many high successful brands
keep its logo simple and comfortable to understand.
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30. POSITIONING
Nivea is flexible in terms of brand positioning; its core belief of trust
and care has been maintained.
• Customer strategy: The pattern of positioning has an evolution at first it
was promoted as skin care to maintain fair skin and later it has started
promoting as tan allowable according to the changing beaty standard.
• Geographical Strategy: It has positioned according to the geographical
locations according to the continent where Asian prefer a fair complexion
and it was positioned as the fairness skin care cream and middle east prefer
the fragrance.
• Logo: The Logo and packaging for nivea cream has created an image of
gentleness proposing a better skin care.
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31. SEGMENTATION
Nivea has targeted mass market and focused on grabbing the
high market ration, but it has a great segmentation strategies.
It was the first to launch a after shave balsam which is highly
successful and much needed product for men.
It was the first company to launch a cosmetic product dedicated to
men.
Nivea has understood and grabbed the niche that has greater
potential and mass requirement.
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32. INNOVATION
• Nivea has been innovating since its foundation it has come with the emulsion
cream and it has further developed multiple products that has a greater
opportunity for great business it was the first to introduce a after shave balsam.
It was the first to introduce a liquid cream for skin care and it has introduced
wet cream which reduces the effort of the consumer to apply cream additionally
• Nivea achieves this innovation race by sticking close to customer and their
needs
• Nivea also stated that the world is their laboratory for the R&D and nivea gives
freedom to explore and innovate to its research department.
• Nivea use a strategy called co creation where it take in ideas from the consumer
and consider them for the study.
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33. REDUCTION
• Nivea has transformed into Umbrella brand since 2011 where it offers the
range of skin care products such as cold creams, body lotion men’s cream
sunscreen and deodorants.
• It has eliminated the production of some of the product which do not share the
core positioning elements or the brand image of the Nivea such as makeup
products.
• This reduction helped Nivea in positioning its image deeper and now about
30% of the women population prefer nivea s their skin care brand and it has a
brand awareness of 93%.
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34. PROBLEMS AND SOLUTIONS
1. What were the key steps in maintaining Nivea’s
position in the global facial care market ?
• Preference to it’s core value with Constant product innovation according to
changing market needs.
• Relaunching.
• Upgrading its logo, packaging, labelling to look modern and global.
• Identifies new market by observing customer needs
• Expanding its product line.
• Simple and bold attitude
• Customization based on segmentation.
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35. PROBLEMS AND SOLUTIONS
2. What is Nivea’s strategy in respecting cultural diversity
while pursing a global brand strategy?
• Choices are influenced by psychology & current environment.
• Psychological and geographical segmentation for connecting
consumers.
• Customization using local ingredients
• Culture plays in an important role in having a product or brand being
accepted by its customers.
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36. PROBLEMS AND SOLUTIONS
3. What should Beiersdorf do next with its product line?
Where is the future growth for the brand ?
• Stretching product line for high class consumers.
• Adaption of international Ad campaigns at the local level to reduce costs of
different production formulations & packaging
• Nivea can also go through Online marketing and Digital Marketing for all their
products as most of the products are still unknown
• They can focus on large population countries to sell their products more like
China, India, Russia and can get more revenue.
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37. CONCLUSION
• Nivea is known for the high standard of quality products that it produces.
• Everybody can afford Nivea, as its products are not targeted to
• any particular segment of the market.
• The main objective of the company are trust, care, closeness and beauty.
• Customers of Nivea are men and women of the age between 18-40.
• Today, Nivea is one of the strongest face care brand, having 93% of the brand awareness.
• Beiersdorf's continuing goal is to have its products as close as possible to its consumers,
regardless of where they live.
• Its aims are to understand its consumers in its many different markets and delight them
with innovative products for their skin and beauty care needs. This strengthens the trust and
appeal of Beiersdorf brands.
• The business prides itself on being consumer-led and this focus has helped it to grow Nivea
into one of the largest skin care brands in the world.
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38. THANK YOU
OPEN FOR QUESTIONS
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