Marketing Analysis of Nivea, defining its History, core values, marketing mix, STP, Porter’s Five Forces model, Consumer behavior analysis, BCG MATRIX, NIVEA'S Core marketing strategy

1. GROUP 5
Shashwat Yadav, Utkarsh Mishra, Vicky Parmar, Vaibhav Arora, Vrinda Maheshwari, Yogesh Sharma
Marketing Analysis of NIVEA

2. INTRODUCTION:
History of Nivea
More than 100-year history, the box has gone through
numerous designs. The famous eye-catching blue that is
now inextricably linked with the brand, is one of the very
rare color marks protected worldwide.

3.  Nivea is brand of German company founded by
Beiersdorf in 1882
 In 1914 company generated 42% of sales outside
of Germany and doing business in 34 countries
 Positioning strategy was switched to keep up with
the social changes of that time
 In 1963 introduces worlds first Liquid cream
 In 1980 introduced first after shave
 By 1990 Nivea was worlds leading skin care brand
with a standardized global brand policy
 Around 30 percent of women all over the world
use Nivea products
NIVEA is the first
brand and most
important brand of
Beiersdorf.

4. CORE VALUES
CARE: Responsibility towards colleagues, consumers, brands, society and environment.
SIMPLICITY: Consistency, make decisions quickly and focus on what’s essential.
TRUST: Focus and keep there promises and treat others with respect.
COURAGE: Committed to bold objectives, take initiative, learn from their mistakes and see change as an
opportunity.

5. Umbrella Branding
Nivea is the Queen of mega brand franchises. It’s
parent company, Beiersdorf, had built Nivea into the
worlds number one personal care brand.
• Pros
– It generates an exponential interaction with the
brand.
– They are all designed to be complementary, rather
than repetitive i.e. each segment target particular
customer need.
• Cons
– The core brands has to be strong if it wants to
survive in the market.
– The associated brands depends upon the image of
main brand.

6. RETAIL LANDSCAPE
 Skincare, as a market segment, is growing faster than any
other part of the beauty industry.
 Nivea comes after HUL with 16% of market share in the
Indian market.
Hindustan
Uniliver
56%
Nivea
16%
Amway
9%
Oriflame
6%
L'Oreal India
10%
Others
3%
Market Share in Skin Care Industry
Hindustan Uniliver Nivea Amway
Oriflame L'Oreal India Others
2018-19,
statistica
2018-19,statistica

7. Stefan Heidenreich, Beiersdorf ’s Chief
Executive
“We have become the market leader in a couple
of sectors, against the mighty Hindustan Unilever
(HUL). So, we are quite pleased. We have, for th
e first time last year, crossed $100 million in India
and we are profitable,”

8. Growth of Nivea
The given graph represent the growth
of the company from 2016-2020.
 Nivea stats for the Indian market a
growth of 25% at a CAGR(compounded
annual growth rate) as many new
products have been launched by the
company.
The market size in which nivea
operates is pegged at about 13000
crore, growing at about 10-12%
annually in which Nivea holds the
second position after Hul.
Data taken from statistica, 2020

9. NIVEA Brand
FACE BODY
SUN MEN
“If the brand were to come alive as a person what would it be
like?”

10. NIVEA as a person
“visualized as a SELF-
CONFIDENT person and a
NATURAL BEAUTY”
Essence
“Elegant simplicity with a human touch”
Values: what people can expect from
the brand at every touch point
• RELIABLE
• HONEST
• HUMAN
Principles
• Reduce to the essential
• Express care first and foremost
• Clarity with signal colors of
blue and white
NIVEA

11. Product Portfolio
HAIR CARE
BABY CARE
MEN CARE
BATH CARE
FACE CARE
BODY CARE
HAND CARE
CARE

12. NIVEA Concept and Brand Value
“Nivea Cares for
Your Skin ”
encapsulates
Nivea's brand
values.
The emotional
values associated
haven’t changed
much in the last
108 years.
• Products are the
backbone for Nivea.
• Extensive market
research helps
understand people’s
wants from Nivea.
• Directly talking to
customers or
through product
testing.
• Nivea is dedicated to
protecting the skin of the
entire family.
• Nivea is also stylish,
contemporary and
fashion conscious.
• Nivea’s signature
‘Blue and White’ :
helps identify and
distinguish the
brand easily.
• Creates high brand
recognition, trust
and reliability.
CORE PRODUCT
EXPECTED PRODUCT
AUGMENTED PRODUCT

14. 5 Stage Decision making process
In second step the consumers do
research through friends and
family. Nivea has taken care of us
for over 100 years, so it has
strong word of mouth marketing.
Then they move towards online
& offline source.
After these research the
consumer selects a particular
brand, product and buys it as
per his decision. Price &
availability are major factor
which trigger purchase
decision
Consumers generally
make comparisons with
players in same
industry. In our case
Ponds & Vaseline are
the major competitors
of Nivea.
Features, Characteristics
& benefits of different
products are compared.
Very important factor as
rise & fall of any
product depends on
this. If the customer is
satisfied, he will buy the
product again &
recommend it to others.
Nivea maintains a
positive post purchase
behavior by delivering a
top quality product in
market.
Information
Research
Evaluating
Alternatives
Purchase
Decision
Post
Purchase
Behavior
Add Text
Need
Recognition
In present scenario skin care
industry has grown
tremendously as people of
all ages feel the need to take
care of their skin due to
multiple reasons.
• Young generation needs
protection from sweat.
• Older people from dry
skin
• Some require cream for
UV protection

15. Factors Affecting Consumer Behavior
BRAND
RECOGNITION
• It’s a global brand
under Beiersdorf
• Most trusted skin
care brand in many
countries
• Hires famous
personalities as
Brand ambassadors.
(Taapsee Pannu &
Ranvir singh)
RELIABILIT & TRUST
• All products are made
up of recyclable
plastic.
• 98% of the
ingredients used are
natural
• In process of
removing alcohol &
adding more natural
elements.
AVAILABILITY
• Very strong supply
chain.
• Availability of
product is high even
in remote places.
• Strong online
marketing and
channel partners.
• It collaborated with
Swiggy & Zomato for
delivery of hygiene
products
CULTURAL INFLUENCE
• Has been able to develop
strong emotion in our
society over ages.
• No animal testing takes
place which develops a
positive emotion as per
our culture.
• Includes ingredients which
promote fair complexion
in Asian markets.
PRICE
• Indian market is very
much price sensitive.
• Nivea offers product in
every range from low to
high budget cosmetic
items.
• Best quality product for
low income group
offering wide varieties.

16. Behaviors Study

17. • MEDIUM
• Huge capital investment required for manufacturing, R&D setup
• People trust tried & tested brands
Threat of New Entry
01
• LOW
• Large number of raw material supplier
• Backward vertical integration is possible
Supplier Power
02
• VERY HIGH
• Cosmetic industry is very competitive with presence of high level
of innovation
• Consumers may switch to other brands such as Loreal, Ponds
Threat of Substitution
03
• HIGH
• India is a price sensitive market
• Manufacturers can be forced to decrease price through low
purchasing
Buyer Power
04
Porter’s
Five Forces
• HIGH
• HUL, P&G have high market share
• Large number of players with diversity of products.
Competitive Rivalry
05

18. Competitive Landscape
9%
2%
45%20%
2%
22%
Competitor's Share in Body Care Market
Nivea Emami HUL(Ponds, Vaseline, Dove etc.) Johnson & Johnsons Ayur Others
Data as of
2019, statistica

19. POND’s
01
JOHNSON & JOHNSON
04
VASELINE
03
DOVE
02
NIVEA has 5
prominent
competitors in Indian
market:
LAKME
05
Has affordable pricing strategy and strong distribution and is one
of the top Nivea competitors.
This brand has a strong presence within each category of product.
It is a most trusted brand by many medical practitioners.
Vaseline and Nivea share almost similar product portfolios and
have strong distribution.
It has a mix of both soap and cream thereby providing a cleansing and
smoothing product.
Due to the great product line and its visibility, Lakme is a top Nivea
competitor with Kareena Kapoor Khan it’s brand ambassador.
Direct Competitors
Indirect Competitors

20. Competitors Analysis: POND’S
Positioning: POND’s is No.1 women skin care brand
Market Share: 13.3%
STRENGTHS
• Ponds skin cream range includes
Pond’s Age Miracle, Flawless
White, Perfect Results and
White Beauty.
• Excellent distribution channels
of Unilever.
WEAKNESSES
• Most products are having limited
packaging sizes.
• Intense competition in the cosmetics
industry from many international
brands.
OPPORTUNITIES
• Expansion of skin care
industry into semi-urban and
rural areas of the country.
• Targeting audience from all
the age groups.
THREATS
• High price for the products can limit
potential consumers.
• Availability of cheaper products
offered by other brands in the
market.
Brand Endorsement:
Kiara Advani –
High Influence on
women within age
group 18- 32;
An ideal celebrity
endorsement
USP: Pond’s, has
been listening to
women’s needs and
desires for 150 years
and delivering new
products customized
to their skincare
needs

21. SWOT Analysis of NIVEA
T
O
S
W
SWOT
Strengths of NIVEA - Internal Strategic Factors:
• Strong Brand Portfolio
• Good Returns on Capital Expenditure
• Reliable Suppliers
Weakness of NIVEA - Internal Strategic Factors
• Limited success outside core business
• The profitability ratio and Net Contribution % of Nivea are below the industry average.
• There are gaps in the product range sold by the company.
Opportunities for NIVEA - External Strategic Factors
• New customers from online channel
• Opening up of new markets
• Differentiated Pricing Strategy with the help of new technology
Threats NIVEA Facing - External Strategic Factors
• Changing consumer buying behavior from online channel
• Intense competition
• Minimal Growth in main market.
Positioning: Nivea is No.2 women skin care brand
Market Share: 9.1%

22. STP
Segmentation
Targeting
Positioning
Factors to consider-
 Income Conscious
 Self image and Benefit buyer
 Intelligent buyer
Divide market into-
 Demographic
 Geographic
 Psychographic
 behavioral
To position your
product for niche
segment.

23. Segmentation
DEMOGRAPHIC
• The main focus of the Nivea brand is middle, upper middle and upper class.
• Nivea is a premium product.
• The product range is from children to adults to old people.
GEOGRAPHIC
• Nivea is Personal skin care product and is mostly an Urban Care Product.
• i.e. mostly used in big urban cities as a( major focus ).
• And small towns and Suburbs ( minor focus ).
PSYCHOGRAPHIC AND BEHAVIOURAL
• Lifestyle looking and feeling good by using the product. e.g. non-greasy, soft,
fresh.
• Looks after the personal and skincare needs of people e.g. Advertisement: “have
fun with your kids, Crème with your kids”, “Maa ka Pyar Nivea”, Real Madrid
• People watching Ads and buying behavior.( I will buy this) due to emotional
connection

24. Targeting
Age 18-25 26-32 33 & above
Income Low Medium High
Lifestyle Medium High High
Price
Sensitive
High Medium low
High Self image Buyer or Benefit Buyer
• Image centric
• Premium Brands
• The Positive effects of the Product on the skin
Intelligent Buyer
• Quality by checking Ingredients
• Savings (Price)
• Functions (multi purpose)

25. Positioning
Price
conscious
buyer
High self
image buyer
Intelligent
buyer
How do we want to position
Nivea face cream in the
consumer’s mind?
The main positioning would be
that the cream prevents dust and
keeps your skin clean and shining;
sun protection The creams shall
have variants for dry and oily skin
and hence shall be effective for all
kinds of skin
Multipurpose
In the budget limit
Effective for any
kind of skin.
dermatologically
tested
Smoothening
agent, keeps your
skin soft
Prevents dust,
keeps your face
clean and shining;
sun protection .
Containing
antioxidants
Hydration and
protection
moisturizes the
skin.

26. Price and Quality Positioning
High Quality
Low Quality
High Price
Low Price
POND’S
NIVEA
DOVE
THE BODY SHOP
OLAY
CLEAN & CLEAR
FAIR & LOVELY
• Nivea Creme, 100ml – Rs 134
• Pond’s Cold Cream,100ml – Rs 105
• Dove cream, 100ml – Rs 149

27. Nivea continuously changes its products to make it in with its
core values
• Nivea is known for its first mover image.
• In 1911, Nivea crème was the first one bring
stable oil in water emulsion moisturizing cream
• In 2015 they launched a Deodorizer specially for
the Indian masses
Standardised global brand policy while keeping local
sentiment in check.
• Nivea products share the same logo, appearance
and packaging world-wide.
• It sells its products to retailers at a single set
price and has adopted a constant pricing policy.
• For a Product or Brand to be accepted by the
masses the company needs understand the
culture and trend of the region.
• E.g. Nivea understood Asian Countries, facial
products sold much better since they contained
ingredients promoting a fair complexion. Also, in
Middle East, local fragrances like musk are used.
• n b
Always focuses on research and Development for new
products that cater the growing needs
• Nivea improved is products to make them more
effective and more consumer-friendly.
• They changed the formula of some products.
E.g. it removed alcohol from one product and
used natural sea salts and minerals in others.

28. Marketing Mix
Product Strategy Pricing Strategy Promotional Strategy Place Strategy
Good quality at
reasonable prices
Different Product line
NIVEA developed a uniform international marketing concept with the goal to become the global market leader in skin
care products. NIVEA developed a uniform international marketing concept with the goal to become the global market
leader in skin care products.
To create awareness
Product reach

29. Product
Nivea
Marketing to Millennial girls
Marketing to new mothers
for their young ones
Marketed towards men
• In every nook and corner of
the world, NIVEA products
stand for high quality and
gentle body care.
• It is a brand that is not only
associated with trust and
security, but also with
satisfaction.
How it the top five skincare brands
in India?
• Extensive Research
• Diversified product line
• High Quality Products

30. Pricing
Reasonable pricing for building cost-
benefit relationship with customer.
Penetration of Price
Price skimming strategy for
innovative product.
Using cost based price
Initial low price to ensure that there is a high volume of purchases and market
share is quickly won. This strategy encourages consumers to develop a habit of
buying.
Price skimming of initial high price for a unique product encouraging those
who want to be 'first to buy' to pay a premium price. This strategy helps a
business to gain maximum revenue before a competitor’s product reaches the
market.
Nivea take care of its customers that they are getting more value than what
they are paying. When they re launch their product Nivea Visage, they brought
it at higher prices because of new formula and packaging.
NIVEA product is guaranteed by its good product quality and the reasonable
prices. The products satisfy the customers’ expectations because they almost
stay the same over the year’s same quality and price level as well as brand
communication elements.

31. Promotion
Digital can reach a large number of people and Nivea takes full advantage of that. The company h
as launched
many online magazines and campaigns like FYI (magazine) and #ShareTheCare movement.
Digital
Sponsoring some events like sports, for example Nivea was the official sponsor partner for
London Olympics 2012 specifically targeting the male Olympic Games. It is also sponsoring
Liverpool Football Club.
PR
Portraying a strong and consistent brand identity differentiates the product and helps consumers
to understand and trust the product. And this can be done by brand ambassador whose aura and
moral values coincide with the brand
Brand Ambassador
Nivea also uses events or trade fairs help to launch a product to a wide audience
Event
Digital
PR
Brand Ambassador
Event

32. Place
Distribution
Nivea has a centralized distribution point system. Its products arrive at the retail
outlets from the different plants via contract vehicles. The company does not
interact with small retailers directly but takes the help wholesalers for the same
E-commerce
Products from this highly-acclaimed brand are also available online. Nivea does
not sell products directly via its website as it is not cost-efficient for the company
to deal with small orders. Instead, it has taken help of other retailers to sell its
own products through their online stores.
Retail
Nivea sells its commodities mostly via its retail outlets, spread across most parts
of the country. Products are easily available in grocery stores, discount outlets,
convenience stores, hypermarket, and supermarkets.
Place
A Global brand like Nivea
has spread its presence in
more than 100 counties.
The Company has its
headquarter in Hamburg.
Due to its strong
distribution channel their
products can reach
consumer markets quickly
and efficiently.

33. Value Chain Analysis of NIVEA
Inbound
Logistics
Operation
Outbound
Logistics
Market &
Sales
Services
Primary Value Chain Activities
Sourcing Producing Packing
Handling &
Delivering
Servicing
Procurement
Technology
Development
Human
Resources
Firm
Infrastructure
Greatest Impact on
Reliability
Greatest Influence
through Brands
Support Activities

34. NIVEA BCG MATRIX
Nivea must continuously evaluate its product line by assessing
their growth potential and share in the market. The products
can be classified into the following categories:
• Nivea Soft & Nivea Visage Cream- The products with high
growth and high market share are classified as stars.
• Nivea Men Cream- Products with high market growth but
low share are classified as question marks.
• Nivea Crème- Products with low growth but high market
share are cash cows that need to be milked for continuous
good performance in the market with low growth and
limited opportunities.
• Nivea Baby Cream- Lastly, products with low growth and
low market share are dogs’.
Divest
Invest
Harvest
Expand

35. Product Life Cycle
INTRODUCTION: Limited Product Awareness and
Knowledge, Limited Demand
1
GROWTH: NIVEA MEN gain market share, Operation
Efficiencies, Product Improvement Work, Expanding
Markets, Expanded Distribution, Word of mouth
2
MATURITY: NIVEA CRÈME low growth, strong competition,
maximize profit, maximize sales, price war with
competitors, customer loyalty achieved
3
DECLINE: arrest the market share decline, search for new
opportunities, evaluate customer complaint4
Successful products progress through four
basic stages:

36. FLAWS & SUGGESTIONS
• Repositioning needed to change brand image: This is a double edged sword. On one side Nivea has a fantastic
advantage by covering a niche which is profitable – Cold cream. It is doing so for the men’s cream. But the overall
brand is strongly skewed towards cold creams.
• Regular issues in Marketing – Nivea has faced several Racial issues in their marketing as well as huge fines
imposed due to wrong marketing claims made. Such wrong marketing issues make a dent on the brand and will
affect the brand if repeated.
• No separate outlet for Men- The men products are usually sold with the women products. This restricts buyers
who are hesitant to go into the female shop and buy the products.
• No sampling offered- They can target new customer bases. For example Giving samples of sun cream at the
beaches can help gain visibility to the products which are not popular.

37. !! IT HELPS PROTECT YOUR SKIN !!
Thank you 