Nivea is a German skincare brand owned by Beiersdorf that has expanded globally. To maintain growth while preserving its brand equity, Nivea introduced sub-brands in the 1990s to cater to specific market segments. This complicated Nivea's messaging until it established a unique identity as a caretaker of skin through simple advertising. Nivea then used non-traditional marketing like beach balls and buses to strengthen its brand recognition worldwide. While sub-brands allowed for continuity and innovation, it also weakened the core Nivea brand. Nivea strived to balance its sub-brand strategy with maintaining the original Nivea image.

2. Background
 Nivea is a brand of German company Beirsdorf; successful player in Europeanmarket.
 Expanded into South & Latin America, Eastern Europe, & Asia.
 Extended the Nivea brand toa full rangeof Skin care & Personal care products.
 Challenge: Maintaining growth while preserving the established brandequity.

3. Understanding 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 toconsumers.

4. Unique Brand Identity: Caretaker of skin.
Strong Association: Shared familyexperience.
Synonyms: Care & Protection for theskin.

6.  Means of strengthening consumer perceptions of a quality product.
 Simple, plain & informative ads.
 Established the images of Nivea women as clean, fresh & natural.

7. Non-Traditional Marketing
 The blue NIVEA beach ball
 Distributed ball at European beaches eachsummer
 First image campaign focusing on the NIVEAbrand
rather than the individualproducts.
 Blue Santa Claus giving Crème inGermany
 Double-decker Nivea-branded blue promotional bus
in Russia
 Mega Poster advertisement covering the outside ofthe
Kremlin
 Nivea Club in Austria in1995

8.  Sponsored various organizations inEurope
 Beach lifesavers(lifeguards)
 Branded double-decker bus
 Travelled to concerts and other youthoriented events
 Consumercould get a total hair & face makeoverat the bus.

9. Global website – information about company and its history, products, markets, beauty advice and
games.
Designed with the blue harmonytheme.
Customized websites with local content foreach count
Dedicated site for eachsub-brand

10. Research & Development
 Continuous product innovation
 In 2004, BDF spent €38 million on R & D centre inGermany

11. Pros 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 Niveacrème core brand image
• Continuity + Innovation: Continue to nurture core Nivea
associations while widening itsapplicability
• Separate budget for eachsub-brand
• Totake care of specific skin care and personal careneeds
of their target marketsegments
• Reinforceand elaborateon the imageof Niveaas a skin
carespecialist
• 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 considerable

12. Extending the Nivea Brand
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13. Overall Brand Health
 At the beginning of the 1990s, NIVEA was alreadya global brand with awide range of
products catering to the full spectrum of consumersegments.
 Throughout the decade, NIVEA nurtured its existing sub-brands and moved into
additional market segments by adding newsub-brands.
 By 2005, NIVEA was a leading international skin care company and voted themost
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.
 Thecompany had todecide whether the sub-brand strategy would continue towork or if
thecompany should leverage the Nivea brand with an umbrella strategy

15. Growth Opportunities
 Remained small player in theUSA
 In 2005, five sub brand in NorthAmerica-
 Nivea forMen
 Nivea Crème
 Nivea Body
 Nivea Soft
 NiveaVisage
 Competitors: L’Oreal, Estee Lauder, Avon
 Growing opportunities in emerging market

16. Strong Favourable Unique
High And Consistent Quality Caring & Protection A Complete Caretaker Of Skin
Reliability Pleasant Fragrance A Universal, UnisexAcceptance
Blue Colour Tin / White Logo Gentleness Special Product Range For Men
Luxurious Brand Mildness/ Smooth World Known Brand
Heritage Fair Price
Trust

17. What were the key steps in maintaining Nivea's
leading position in the global facial care market?
Nivea has created the image of being genuine, environmentally friendly and offering good quality
a reasonable price.
Nivea increased length of its product line by introducing its products in new areas.
It timely changed its core values according to market needs, but continued to innovate.
Nivea changed its logo, packaging appearance to look modern and global.
Nivea has huge brand recall and equity.

18. Explain the connection between cultural norms and product choice.
What is Nivea's strategy in respecting cultural diversity while pursuing a
global brand strategy?
Culture plays in an important role in having a product or brand
being accepted by its customers. So a company needs to respect
a culture and make its products to satisfy customized needs of
people, so that it has high chances of being accepted by market.
For example, South Asia is obsessed with having a fair
complexion. So Nivea makes its products accordingly, and
publicizes its USP, hence receives high chances of being
successful. At the same time, it brings reliability and trust of being
a global brand. It keeps its logo and appearance in line with its
global image.

19. Discuss Nivea's future? What should Beiersdorf do next with its product line?
Where is the future growth for the brand?
Nivea's future:
Need to concentrate on smaller number of more significant innovations with a clear benefit for
consumers.
Next step with its product line:
Continuity + Innovation
Real, inspirational people in the ads.
Future growth for the brand:
Nivea should pursue the men grooming category.
Men’s skin care market is growing now & Nivea took the advantage of first move & its image of quality &
care.
Pricing for emerging market, the price needs to be fine-tuned.

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21. Created By :Biswajeet Sahu
Student(NIT ROURKELA,ROURKELA)
During the 4 weeks marketing internship under
PROF.SAMEER MATHUR