NIVEA:
MANAGING A BRAND
   HIERARCHY



     Section A ; Group 9
     Ajay Bharathi G
            FT12306
     Harendra Singh
            FT12127
     Kushagra Prasad   FT12227
     Rohit Agrawal     FT12351
     Tushar Arora      FT12168
WHAT is BRAND Hierarchy

   “A brand hierarchy is a useful means
    of graphically portraying a firm’s
    branding strategy by displaying the
    number and nature of common and
    distinctive brand elements across the
    firm’s products, revealing the explicit
    ordering of brand elements”


                          Section A   GROUP 9   2
Development of NIVEA brand
   1912: NIVEA Crème introduced into the German
    market.

   1912-1970: Range of products (48 new products)
    introduced and expanded under Nivea brand -
    maintaining a mono-product philosophy .

   1970 - 1993 :Stiff competition from
    Ponds, Henkel, Unilever.

   NIVEA – primarily through NIVEA crème had
    aquired a unique, widely – understood brand
    identitiy as a “caretaker” of skin.

                                Section A   GROUP 9   3
Development of NIVEA brand
   Sales grown from $826 million in 1994 to
    $1831 in 2000, 121.6% growth
   Two-Prong strategy:
   Stabilize strong historical market position
    -Larger sized units; special line outlets to
    food outlets; Aggressive Ad campaigns
   Transfer the goodwill to other products 
    Skin creme to Skin care and personal
    care brand. Nivea Universe.
   Continuity and Innovation

                            Section A   GROUP 9   4
BRAND ASSOCIATION
   CARE
   Protection
   Mildness
   Gentleness
   Trustworthy/Reliable
   Pure
   Simple
   Multipurpose/Universal
   For Family
   Heritage

                             Section A   GROUP 9   5
Brand Image of NIVEA
 Strength of Brand Association:
Rich set of Association like Care, mildness, reliability,
gentleness, protection, high quality, feeling good &
reasonably priced.
The Nivea woman- reflected in Ads as clean, fresh and
  natural.
 Favorability of Brand Association:
Used by Entire Family
Universal, Unisex, satisfying multiple needs.
Associated with Mother-Child relationship, Family
  vacation.
 Uniqueness of Brand Association
Complete caretaker of skin
Caring and protective
Anti - Aging
                                   Section A   GROUP 9      6
CBBE PYRAMID
             RESONANCE:
              Attachment
              Community

             JUDGEMENT:
          Credibility Superiority
          FEELINGS: Warmth
                    Fun

     PERFORMANCE: Quality, Mild &
     Gentle, Caring & protective pure
        IMAGERY: Heritage, For
       Family, Universal Application


    SALIENT: Multi-forms and purposes



                               Section A   GROUP 9   7
EXTENDING THE NIVEA
BRAND
 GUIDELINES:
 Meet basic needs: clean/protect.
 Offer the special care/mildness benefits
  of NIVEA crème.
 Be simple.
 Not offer to solve a specific problem.
 Offer the broadest possible distribution.
 Balanced cost benefit relationship.
 Maintain a leading position in terms of
  quality.
                          Section A   GROUP 9   8
NIVEA BRAND PORTFOLIO

                  NIVEA


 SKIN CARE           FACE
 Nivea crème   CARE/COSMETICS
                 Nivea Visage          PERSONAL CARE
 Nivea Body
                  Nivea Vital              Nivea Deo
  Nivea Soft
                 Nivea Beaute           Nivea Bath care
 Nivea Hand
                 Nivea Lip care         Nivea Hair Care
  Nivea Sun
 Nivea Baby      Nivea for Men



                           Section A    GROUP 9       9
Early Advertising
 Basic Theme -
  Simple, Plain, Informative
 Image of NIVEA women as
  clean, fresh and natural.
 1920’s Three happy, healthy lads
 Extended the freshness and natural
 Image to entire Family



                      Section A   GROUP 9   11
Later Advertising
 Continued to represent the heart of
  NIVEA products - trust, sympathy and
  care
 Along with their own functionalities.
 Blue Harmony campaign in 1992 to
  show the spirit of NIVEA in NIVEA
  Creame



                       Section A   GROUP 9   12
Going Forward
 Better Market Mix - Better
  products, Premium pricing enhancing
  quality, Outlets and saloons of NIVEA
  etc.
 Eco-Friendly products - Introducing
  Green/Herbal products along with
  promotion through CSR activities.
 More emphasis on local needs for
  developing countries. Europe should
  remain on primary focus.
                       Section A   GROUP 9   13
LEARNINGS
   Sub- Branding Strategy is best for a
    company having large Brand Breadth.
   Focus on Brand Values and mantra and
    associate the same to all the product
    lines.
   NIVEA leveraged the Brand Equity
    earned over decades to gain more and
    more market penetration.
   Offer a huge category of products in
    order to cater almost every need of
    market.
   Products and Ads should reflect the local
    connect.
                           Section A   GROUP 9   14
Video




        Section A   GROUP 9   15
Section A   GROUP 9   16

Nivea case Study

  • 1.
    NIVEA: MANAGING A BRAND HIERARCHY Section A ; Group 9 Ajay Bharathi G FT12306 Harendra Singh FT12127 Kushagra Prasad FT12227 Rohit Agrawal FT12351 Tushar Arora FT12168
  • 2.
    WHAT is BRANDHierarchy  “A brand hierarchy is a useful means of graphically portraying a firm’s branding strategy by displaying the number and nature of common and distinctive brand elements across the firm’s products, revealing the explicit ordering of brand elements” Section A GROUP 9 2
  • 3.
    Development of NIVEAbrand  1912: NIVEA Crème introduced into the German market.  1912-1970: Range of products (48 new products) introduced and expanded under Nivea brand - maintaining a mono-product philosophy .  1970 - 1993 :Stiff competition from Ponds, Henkel, Unilever.  NIVEA – primarily through NIVEA crème had aquired a unique, widely – understood brand identitiy as a “caretaker” of skin. Section A GROUP 9 3
  • 4.
    Development of NIVEAbrand  Sales grown from $826 million in 1994 to $1831 in 2000, 121.6% growth  Two-Prong strategy:  Stabilize strong historical market position -Larger sized units; special line outlets to food outlets; Aggressive Ad campaigns  Transfer the goodwill to other products  Skin creme to Skin care and personal care brand. Nivea Universe.  Continuity and Innovation Section A GROUP 9 4
  • 5.
    BRAND ASSOCIATION  CARE  Protection  Mildness  Gentleness  Trustworthy/Reliable  Pure  Simple  Multipurpose/Universal  For Family  Heritage Section A GROUP 9 5
  • 6.
    Brand Image ofNIVEA  Strength of Brand Association: Rich set of Association like Care, mildness, reliability, gentleness, protection, high quality, feeling good & reasonably priced. The Nivea woman- reflected in Ads as clean, fresh and natural.  Favorability of Brand Association: Used by Entire Family Universal, Unisex, satisfying multiple needs. Associated with Mother-Child relationship, Family vacation.  Uniqueness of Brand Association Complete caretaker of skin Caring and protective Anti - Aging Section A GROUP 9 6
  • 7.
    CBBE PYRAMID RESONANCE: Attachment Community JUDGEMENT: Credibility Superiority FEELINGS: Warmth Fun PERFORMANCE: Quality, Mild & Gentle, Caring & protective pure IMAGERY: Heritage, For Family, Universal Application SALIENT: Multi-forms and purposes Section A GROUP 9 7
  • 8.
    EXTENDING THE NIVEA BRAND GUIDELINES:  Meet basic needs: clean/protect.  Offer the special care/mildness benefits of NIVEA crème.  Be simple.  Not offer to solve a specific problem.  Offer the broadest possible distribution.  Balanced cost benefit relationship.  Maintain a leading position in terms of quality. Section A GROUP 9 8
  • 9.
    NIVEA BRAND PORTFOLIO NIVEA SKIN CARE FACE Nivea crème CARE/COSMETICS Nivea Visage PERSONAL CARE Nivea Body Nivea Vital Nivea Deo Nivea Soft Nivea Beaute Nivea Bath care Nivea Hand Nivea Lip care Nivea Hair Care Nivea Sun Nivea Baby Nivea for Men Section A GROUP 9 9
  • 11.
    Early Advertising  BasicTheme - Simple, Plain, Informative  Image of NIVEA women as clean, fresh and natural.  1920’s Three happy, healthy lads  Extended the freshness and natural  Image to entire Family Section A GROUP 9 11
  • 12.
    Later Advertising  Continuedto represent the heart of NIVEA products - trust, sympathy and care  Along with their own functionalities.  Blue Harmony campaign in 1992 to show the spirit of NIVEA in NIVEA Creame Section A GROUP 9 12
  • 13.
    Going Forward  BetterMarket Mix - Better products, Premium pricing enhancing quality, Outlets and saloons of NIVEA etc.  Eco-Friendly products - Introducing Green/Herbal products along with promotion through CSR activities.  More emphasis on local needs for developing countries. Europe should remain on primary focus. Section A GROUP 9 13
  • 14.
    LEARNINGS  Sub- Branding Strategy is best for a company having large Brand Breadth.  Focus on Brand Values and mantra and associate the same to all the product lines.  NIVEA leveraged the Brand Equity earned over decades to gain more and more market penetration.  Offer a huge category of products in order to cater almost every need of market.  Products and Ads should reflect the local connect. Section A GROUP 9 14
  • 15.
    Video Section A GROUP 9 15
  • 16.
    Section A GROUP 9 16