Nikita Sanghvi presented a case study on the Nivea brand. Nivea started as a single skin cream product in Germany in 1912 and expanded its product range and global footprint over the decades. In the 1990s and 2000s, Nivea followed a sub-brand strategy with separate budgets and marketing for individual product lines, which weakened its unified brand image. A new CEO developed a brand philosophy in the 1990s to maintain Nivea's association with universality and implemented guidelines to communicate consistent brand values across all sub-brands and marketing. By 2005, Nivea had grown to 15 sub-brands while preserving its reputation as a skin care specialist.
This powerpoint presentation contains a detailed case study of Nivea brand which is mentioned in chapter 13- Setting Product Strategy, Page-426-427 of Philip Kotler's book on Marketing Management.
Nivea exploits the potential of a full-screen takeover to create a perfect product showcase environment and encourage use of the Facebook store built for its male consumer audience
Areas Covered :
Evolution of the Brand
Brand Identity
Brand Personality
Logo of the Brand
Tagline of the Brand
Brand Connect with intended customer
Where does the Brand fit in the company’s scheme of things??
Ad campaign analysis (both Print and TVC)
This powerpoint presentation contains a detailed case study of Nivea brand which is mentioned in chapter 13- Setting Product Strategy, Page-426-427 of Philip Kotler's book on Marketing Management.
Nivea exploits the potential of a full-screen takeover to create a perfect product showcase environment and encourage use of the Facebook store built for its male consumer audience
Areas Covered :
Evolution of the Brand
Brand Identity
Brand Personality
Logo of the Brand
Tagline of the Brand
Brand Connect with intended customer
Where does the Brand fit in the company’s scheme of things??
Ad campaign analysis (both Print and TVC)
Nevia case study analysis by Dinker VaidDinker Vaid
Nivea for Men Case Study.
Nivea exploits the potential of a full-screen takeover to create a perfect product showcase environment and encourage use of the Facebook store built for its male consumer audience.
Background
Award-winning skincare brand Nivea launched a campaign in 2011 to encourage women to buy Nivea For Men products as Christmas gifts for males through their Facebook store.
The presentation describes a cleanliness campaign named "Swachchhata" for Ahmedabad city. It mainly focuses on creating Swachchhata as a brand.It also describes the IMC campaign for the whole project.
The Report describes a cleanliness campaign named "Swachchhata" for Ahmedabad city. It mainly focuses on creating Swachchhata as a brand.It also describes the IMC campaign for the whole project.
Report -The Viability Of Liverpool Retail India LtdNikita Sanghvi
Through the market survey and personal interviews I suggested a new financial proposal for the Liverpool Retail India Ltd. My suggestions included that the company should keep their merchandise in the new format of retail outlets i.e. Large Format Stores
RESEARCH PROPOSAL ON VIABILITY OF LIVERPOOL RETAIL IN LARGE FROMAT STORESNikita Sanghvi
Through the market survey and personal interviews I suggested a new financial proposal for the Liverpool Retail India Ltd. My suggestions included that the company should keep their merchandise in the new format of retail outlets i.e. Large Format Stores
3. Case Study Analysis
Background
Nivea is a brand of German company Beirsdorf; successful player in European market
Expanded into South & Latin America, Eastern Europe, & Asia
Earlier limited range of products: Nivea Crème, Milk, Soap & Sun
Extended the Nivea brand to a full range of Skin care & Personal care products
Challenge: Maintaining growth while preserving the established brand equity
In 1990s & 2000s followed a “sub brand strategy” where individual sub brands received
budget allocations for independent IMC
7-Apr-11 STEVENS B SCHOOL
5. Case Study Analysis
Development Of The Nivea Brand: 1912-1970
Industrialization led to the emergence of mass markets and branded articles
Women began to appreciate greater degree of physical appearance
Nivea crème (Bright yellow tin) unique water-in-oil emulsion first to offer
Skin care
Protection
Reasonable price
Name came from Latin word: Nives- Snow; reflecting snow white colour of Nivea crème
The world’s first multi purpose, “universal” skin crème
Nivea crème introduced into German Market and subsequently throughout Europe(1912);
in the USA in 1922; & in South America and other parts of the world in 1926
7-Apr-11 STEVENS B SCHOOL
6. Case Study Analysis
Development Of The Nivea Brand: 1912-1970
Introduced over 48 other skin care products between 1911-1970
Maintained “Mono-product” philosophy
Blue tin & White lettering standardised in 1925
Other primary products – body soap, powder, sun care lotion & oil
7-Apr-11 STEVENS B SCHOOL
7. Case Study Analysis
Nivea Crème Brand Identity & Values
Throughout Europe -
Unique Brand Identity: Caretaker of skin
Strong Association: Shared family experience
Care
Mildness
Reliability
Gentleness
Protection
High Quality
Feeling Good
Reasonably Priced
Synonyms: Care & Protection for the skin
7-Apr-11 STEVENS B SCHOOL
8. Case Study Analysis
Early Nivea Advertising
Began advertising in 1912
Means of strengthening consumer perceptions of a quality product
Simple, plain & informative ads
In 1910s & 1920s, advertised three products – crème, soap & powder
Established the images of Nivea women as clean, fresh & natural
7-Apr-11 STEVENS B SCHOOL
10. Case Study Analysis
Nivea’s First Competitive Challenge: The 1970’s
Nivea held over 35% multi-purpose market in Europe
Henkel-Khasana launched Crème 21 (multi-purpose crème) in 1972
Focus on extensive advertising & self-service outlets to target mass market
Competition: Pond’s , Unilever and P & G
BDF performed a study on Nivea brand image in Germany
High degree of goodwill
Represented reliability, quality & honesty
Older image, not viewed as young, dynamic, modern
BDF developed “two-pronged” strategy
Stabilize the strong historical market position of Nivea Crème
Transfer Nivea Crème goodwill to other product classes
7-Apr-11 STEVENS B SCHOOL
11. Case Study Analysis
Revitalizing Nivea Crème
Nivea, the Crème de la crème, 1971
Launched a series of 7 ads
Impressively defended NIVEA Crème's leading market position.
Objective: NIVEA Crème combines all aspects of skincare for the best in a single
product, clearly stating the competence, quality and honesty of NIVEA.
Only Me
It ran in Europe from 1973
Objective: Negate competitors claims
Positioning:
Nivea crème meets all skin care needs
7-Apr-11 STEVENS B SCHOOL
13. Case Study Analysis
Extending the Nivea Brand
Skin Care &
Skin Creme
Personal Care
Mono product philosophy:
Only one product promising consumers universal application in each product category
Second version of a particular product could be introduced only if it satisfied a unique
need not meet by the current products(s) in its category
7-Apr-11 STEVENS B SCHOOL
14. Case Study Analysis
Extending the Nivea Brand
Set of Guidelines:
Meet a basic need: clean & / or protect
Offer the special care / mildness benefit of Nivea Crème
Be simple & uncomplicated
Not to offer to solve only a specific problem
Maintain a leading position in terms of quality
Offer the product at a reasonable price so the consumer perceives a balanced cost-benefit
relationship
Offer the broadest possible distribution
7-Apr-11 STEVENS B SCHOOL
16. Case Study Analysis
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 to consumers
7-Apr-11 STEVENS B SCHOOL
17. Case Study Analysis
Understanding The Nivea Brand
Kunisch, former CEO of Cosmed, believed that in preparing to develop a new NIVEA
communications strategy, a formalised brand philosophy was necessary. Kunisch explained:
“NIVEA is the most fascinating brand in the world, second only to Coca-Cola. The company had
done a tremendous job over the last 50 years to keep the NIVEA was a lack of conscientiousness
of what it meant to be a brand. In the good old days, BDF had a brand relationship that was
highly personalised. Only three people knew how it had all been done—one retired, one left the
company and one died. In addition, there were three advertising agencies that did not talk with
one another. I began with the basics and asked: What is NIVEA? The data was all there, the
feeling was there, but no one had put it on a piece of paper.”
7-Apr-11 STEVENS B SCHOOL
18. Case Study Analysis
Developing Cosmed’s Corporate Strategy
The brand philosophy centered on maintaining the association of ‘universality’ for
NIVEA products.
Kunisch explained, “We want to build on the image of the blue tin where we are number
one almost everywhere in Europe.”
The role of the other sub-brands was to continue to cater to the specific skin care &
personal care needs of their target market segments and contribute back their particular
product class associations to reinforce and elaborate on the image of NIVEA as a skin care
specialist.
7-Apr-11 STEVENS B SCHOOL
20. Case Study Analysis
Executing The Nivea Brand Philosophy
Cosmed worked with its advertising agency, TBWA to communicate a certain “Niveaness” in all
ads & promotions
Campaign should incorporate the brand values:
Timeless & ageless
Motherhood & a happy family
Honesty
Trustworthiness
Benefits of mildness & quality
Other guidelines:
Common emotions in all ads
A uniform Nivea logo
Consistent lettering & typeface
Real, inspirational people in the ads
Understable copy about the product
7-Apr-11 STEVENS B SCHOOL
21. Case Study Analysis
Expansion of Nivea Sub-Brands
By 2005, the NIVEA brand portfolio had grown from six product groups in 1993 to fifteen,
including:
Skin Care Personal Care
• NIVEA Body, • NIVEA Deo,
• NIVEA Visage, • NIVEA Beauty,
• NIVEA for Men, • NIVEA Hair Care,
• NIVEA Sun, • NIVEA Bath Care,
• NIVEA Baby, • NIVEA Intimate Care
• NIVEA Crème,
• NIVEA Vital,
• NIVEA Soft,
• NIVEA Hand,
• NIVEA Lip
7-Apr-11 STEVENS B SCHOOL
23. Case Study Analysis
Nivea Crème
Nivea Crème, Nivea’s first product, was introduced in 1911 & was the first stable water-in-
oil emulsion available in the world.
Original NIVEA Crème tins were pale yellow with “NIVEA Crème” in blue print in the
centre and a red and blue Art Nouveau border, but were changed in 1926 to the now-
familiar blue and white design. The tin simplicity and caring embodied by the brand.
Blue Harmony Campaign
In the 1990s the spirit of the times changed and honesty, return to family and the reality of
honest feelings became important values.
Launched in 1992, captured wonderful moments of human togetherness.
Included a series of television & print ads highlighting Nivea Crème
Showed a group of seagulls flying together through the air as circuit music played in the
background
Tagline: All that skin needs to live
7-Apr-11 STEVENS B SCHOOL
25. Case Study Analysis
Nivea Soft
Introduced in 1994
Lighter than the heavier, greasier feeling of Nivea Crème
Separate identity : to prevent cannibalization of Nivea Crème
Launched first in UK with a marketing strategy called ‘’fast marketing’’: 1
week intensive TV and print ads, sampling & promotions
In 2004, Launched in the USA with 2 sizes, extensive sampling targeting
women ages 18-49 yrs
2005: Launched Mini-tube for travelling
7-Apr-11 STEVENS B SCHOOL
26. Case Study Analysis
Nivea Visage
Introduced in 1982 as a face cleanser (mildness)
1987 1989 1991 1998 2005
• Introduced a • Changed the • First anti-age • Q10 used in • Products with
beauty fluid packaging:from products Nivea Visage line Q10 Plus- to
(liquid plastic to glass – Anti wrinkle reduce and
moisturizer) • Altered the logo cream prevent wrinkles
for Nivea Visage
• Moisturizing day
and night crème
7-Apr-11 STEVENS B SCHOOL
27. Case Study Analysis
Nivea Vital
Introduced in 1994 for women over the age of 50
1999 2000 2003
• Redesigned its • Cleansing and day • Comfort cleansing • Newer versions with
packaging and logo care creams, body Wipes with a fresh, special ingredients
lotion and intensive healthy glow & a like soy proteins and
care products pleasantly smooth primrose oil
feel
7-Apr-11 STEVENS B SCHOOL
28. Case Study Analysis
Nivea Body
Introduced in 1996
Nivea Milk: water- in oil emulsion but in liquid form for dry skin
Nivea Lotion: oil – in-water emulsion; daily care of normal skin
Essential Performance Pleasure
Shaving, Exfoliating,
Moisturize, Soften, Relax, Refresh And Re-
Properties Night Time And Skin
Protect energize
Firming
Body Lotion Rice &
Products Oil,, Milk And Lotion Products Using Q10 Lotus, Ocean Breeze
Spray
Nivea Whitening
Body spray Shimmer lotion with Body firming lotion
Cream-> Asia Pacific
(moisturizing spray) reflective properties with Q10
region
7-Apr-11 STEVENS B SCHOOL
29. Case Study Analysis
Nivea For Men
1980 1986 1993 1998
• After shave balsam • Full line of men’s skin care • Sensitive line for men (skin • Philishave Cool Skin
(alcoholic cleanser + products irritation) electric razor with Nivea
moisturizer) for Men shaving emulsion
2005 2000-2003 1999
• 3 product lines- Normal, • Face scrubs, facemask, • Q 10 formulation in face
Sensitive and Fresh toner and oil control and eye cream
7-Apr-11 STEVENS B SCHOOL
30. Case Study Analysis
Nivea Sun
Launched in 1930’s but consciously in 1970’s developed as an independent sub-
brand
1980’s 1990’s 1997 1999
• Lotions in variety of • extended to include a • Line of moisturizing • Nivea sun spray and
SPF factors and after line of sensitive skin sun cream co-branded Nivea sun kids sun
sun products with Nivea Visage spray
2004 2002 2000
•Hair care product •Nivea firm sun lotion •Nivea sun after sun
with UV protection cream with Q10
7-Apr-11 STEVENS B SCHOOL
31. Case Study Analysis
Nivea Baby
Launched in 1970’s but failed to meet sales target
Re-launched in 1996
Included shampoos, conditioners, bathing soaps, lotions, wipes, powders, cremes, oils, sun
protection
2005- Toddies (first all purpose wipe for babies)
Soft crème wipes – wipes soaked in baby soft cream
7-Apr-11 STEVENS B SCHOOL
33. Case Study Analysis
Nivea Hand
Launched Nivea Hand Age Control Lotion in 1998
In 2000, Nivea Hand Anti Age Q10 Plus
7-Apr-11 STEVENS B SCHOOL
34. Case Study Analysis
Nivea Lip
– First introduced in 1902 under the brand name Labello
– Focused on
– essentila care,
– beauty care,
– sophisticated care and
– performance care
7-Apr-11 STEVENS B SCHOOL
36. Case Study Analysis
Nivea Deo
In 1991,BDF extended presence in the personal care area with a line of deodorant products called
Nivea Deo
Marketed on the assurance of mildness and caring
1995 2000 2004 2005 2006
• Nivea Deo Balsam – • Mild Care and Natural • Nivea “Fresh” – 24 hour • Aqua Cool for men • Nivea Pure for women –
Sensitive Skin Freshness antiperspirant spray No white marks or
• Nivea Deo for men • Nivea Deo Wipes – residue
underarm cleanser in
wipe form
• Nivea Deo Compact –
portable spray
deodorant
7-Apr-11 STEVENS B SCHOOL
37. Case Study Analysis
1999 2000
• Nivea Beaute Time • Color and Calcium
Nivea Beaute Balance Q10 makeup
• Mascara Optimal 3 in
1
Nail polish
Second biggest brand launch after Q10
ingredient brand
First appearance in color cosmetics, in
1997
Consistency with Nivea’s core competency
of care 2004 2003
Caring: Slogan which said "Colors • Lash Revolution • Velvet Mat Makeup
that Care” Mascara with
Packaging: Deep blue hues elastoflex brush
100 different SKUs
High Fashion Design
Halo Effect on overall brand
Product in high image cosmetics
category
Attracted new, younger consumers to 2005
the brand • Flex and Strong with
Bamboo Nail polish
7-Apr-11 STEVENS B SCHOOL
39. Case Study Analysis
Nivea Bath Care
Extended Nivea brand into skin-related personal care categories
Benefits
High quality, mild, caring benefits of Nivea brand
Added emotional benefit of pleasure
1993 1995 1997 1998
• Nivea Shower Milk- • Nivea Milk Bar • Nivea Aroma Bath • Nivea Bath Care
Nivea Body Milk Care Shampoo and Shower
lotion with Nivea • Aroma therapy trend for Kids
Bath care • Nivea Bath Care
Foam Bath for Kids
2005 2004 2002 2000
• Flavors • Shower massager • Nivea Shower Oil • Nivea Bath Care
• Milk and Apricot with built in shower • Product Of the Year Shower Gel
Body Wash gel in France • Relaunched to project
• Rice and Lotus line a feminine image
7-Apr-11 STEVENS B SCHOOL
40. Case Study Analysis
1996 1998
• Nivea Hair Care Styling Line • Better focus on “Hold”
• 3 hair sprays and 3 hair gels • Ultra Strong Mousse
Nivea Hair Care • Ultra Strong Hair Lacque • Power shopping
Nivea’s first hair care product launched in
1991
Hair care not viewed as skin related product
line 2000 1999
• Nivea Hair Care Liquid Gel • Nivea Hair Care Shampoo for
Not aligned with Nivea’s key association as a • Nivea Hair Care Aqua Gel men – frequent use
skin care provider • Wet look
Maintain strong link to Nivea’s core brand
image
Pflege-Shampoo
Pflege-Spulung
Early 2000s
Products emphasized mildness and care • Color Shine shampoos, conditioners and
qualities treatments
• Sun Hair Care products
• After-Sun shampoo and conditioner
• Sun Protection spray – UV rays salt & chlorine
• Nivea Locken for curly hair
7-Apr-11 STEVENS B SCHOOL
42. Case Study Analysis
Nivea Intimate Care
Launched in 2004, only in Italy
Series of feminine care wipes & lotions
Emphasized on natural ingredients
Brand Image: Softness & Care
7-Apr-11 STEVENS B SCHOOL
44. Case Study Analysis
Nivea Branding Strategy
Cosmed worked with agencies FCB and TBWA to develop the marketing concepts and ad
executions.
In each market, they implemented ‘perfect local execution’ with local agency affiliates The
models or language may change so as tht NIVEA brand appears local but the content remains
consistent.
As Norbert Krapp,NIVEA’s Vice President of skin care, stated: “Pictures travel, words don’t”.
Printed a booklet for internal use detailing its brand philosophy, called the ‘Blue Bible’.
Contained basic information about NIVEA’s brand identity, vision, mission, success factors, and
the role of its sub-brands.
Provided guidelines for products, packaging, communication, promotion, public relations, direct
marketing, and pricing.
Norbert Krapp referred to the Blue Bible as “the best [branding step] we did in recent years”,
calling it the “key anchor” for all brand decisions.
7-Apr-11 STEVENS B SCHOOL
45. Case Study Analysis
Direct Marketing
For Nivea Vital & Nivea Visage
Largest campaign in France with database of more than 1 million
Development of Nivea magazine, in Germany, for the whole family specifically for men &
younger adults
7-Apr-11 STEVENS B SCHOOL
46. Case Study Analysis
Non-Traditional Marketing
The blue NIVEA beach ball
Distributed ball at European beaches each summer
First image campaign focusing on the NIVEA brand
rather than the individual products.
Blue Santa Claus giving Crème in Germany
Double-decker Nivea-branded blue promotional bus
in Russia
Mega Poster advertisement covering the outside of the
Kremlin
Nivea Club in Austria in 1995
7-Apr-11 STEVENS B SCHOOL
47. Case Study Analysis
Non-Traditional Marketing
Nivea Care Centre in South Africa
“House of Nivea” store in Hamburg, Germany, 2006
Workshops for body & soul in Germany, the UK & the USA
Partnered with hospitals & sponsors young mothers in maternity wards
Care packages containing Nivea products
Free product samples and informational brochures
7-Apr-11 STEVENS B SCHOOL
48. Case Study Analysis
Event Marketing
Each country had an event manager responsible for the events
Sponsored various organizations in Europe
Beach lifesavers(lifeguards)
Children’s sailing programs
Beach volleyball tour
School education programs for safe sunbathing
Branded double-decker bus
Travelled to concerts and other youth oriented events
Consumer could get a total hair & face makeover at the bus
Nivea Hand product free with each Nivea Hand Anti-Age Crème Q10
Nivea shops in large German department stores
Extensive point of sale display
Beauty advisor in-house to help customers
7-Apr-11 STEVENS B SCHOOL
49. Case Study Analysis
Nivea.com
Global website – information about company and its history, products, markets,
beauty advice and games
Designed with the blue harmony theme
Customized websites with local content for each country
Dedicated site for each sub-brand
Specialized beauty and skin care tips
Viral marketing campaigns in early 2000’s
Online sweepstakes, chat rooms and promotions
“Bridget Jones: the Edge of Reason” in 2004
7-Apr-11 STEVENS B SCHOOL
50. Case Study Analysis
Research & Development
Continuous product innovation
In 2004, BDF spent €38 million on R & D centre in Germany
7-Apr-11 STEVENS B SCHOOL
51. Case Study Analysis
New Market Rollout Guidelines
Nivea Creme Nivea Body Nivea Visage
Nivea Beaute
•Nivea Visage must be
a market leader before Nivea Deo Nivea Soft
its launch
7-Apr-11 STEVENS B SCHOOL
52. Case Study Analysis
Geographic Growth Opportunities
Remained small player in the USA
In 2003, in $7 billion skin care market of the USA, share of Nivea = $180 million
In 2005, five sub brand in North America-
Nivea for Men
Nivea Crème
Nivea Body
Nivea Soft
Nivea Visage
Nivea Visage Q10 & Nivea Firming Lotion gaining success
Competitors: L’Oreal, Estee Lauder, Avon
Growing opportunities in emerging market
7-Apr-11 STEVENS B SCHOOL
54. Case Study Analysis
Overall Brand Health
At the beginning of the 1990s, NIVEA was already a global brand with a wide range of
products catering to the full spectrum of consumer segments.
Throughout the decade, NIVEA nurtured its existing sub-brands and moved into
additional market segments by adding new sub-brands.
The company’s sub-brand strategy yielded remarkable results: between 1990 and 2000,
every NIVEA sub-brand experienced sales growth and gained market share.
By 2005, NIVEA was a leading international skin care company and voted the most
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.
The company had to decide whether the sub-brand strategy would continue to work or if
the company should leverage the Nivea brand with an umbrella strategy
7-Apr-11 STEVENS B SCHOOL
56. Case Study Analysis
Question No. 1
What is the brand image and sources of equity for the Nivea brand? Does it vary across
product classes? How would you characterize their brand hierarchy?
7-Apr-11 STEVENS B SCHOOL
57. Case Study Analysis
Keller’s Brand Equity Model Possible Outcomes
Choosing Brand Elements
Brand Awareness Greater loyalty
Brand name Memorability
Logo Meaningfulness Less vulnerability to competitive
Recall
Symbol Appeal marketing actions and crises
Depth
Character Transferability
Recognition
Packaging Adaptability Larger margins
Slogan Protectability
Purchase
Developing Marketing Programs Breadth More elastic response to price
Consumption decreases
Product Tangible and intangible benefits
Price Value perceptions More inelastic response to price
Distribution channels Integrate”push” and “pull” Brand Associations increases
Communications Mix and match options
Relevance Greater trade cooperation and
Leverage of Secondary Associations Strong Consistency support
Company Desirable Increased marketing communication
Country of origin Favorable Deliverable efficiency and effectiveness
Channel of distribution
Other brands Point-of-parity Possible licensing opportunities
Endorser Unique Point-of-difference
Event More favorable brand extension
evaluations
58. Case Study Analysis
Brand Elements
Name:
The brand has derived its name from the Latin word
Nivius meaning "Snow White".
Logo:
The dainty art nouveau design of the original NIVEA tin was replaced by a much
simpler look: The blue tin with the word NIVEA in white celebrated its debut in 1925.
NIVEA’s visual identity:
World-famous blue and white color combination
NIVEA blue - is not just any old blue, but “Ivocart NIVEA Blue B 65711”
A special color mixed exclusively for NIVEA in a complex development process
Blue = sympathy, harmony, friendship and loyalty
White = external cleanliness as well as inner purity
Blue and White = ideal for honest and appealing brand
7-Apr-11 STEVENS B SCHOOL
59. Case Study Analysis
Brand Elements
Product: Tag Line
Nivea Crème - “Nivea, The Crème De La Crème”; “Only Me” ; “Harmony In Blue”; “All That Skin Needs To Live”
Nivea For Men “Less Alcohol, More Care”
Nivea Hand - “Apparently You Can Tell A Woman’s Age By Her Hands… Now You Can Lie A Little”
Nivea Beaute - “Colors That Care”
Nivea Sun - “Where It’s Green, It Won’t Be Red”
Nivea Sun – “The New Nivea Sun Makes The Sun Gentle”
Nivea Visage “Anti-age” - “Science In All Confidence”
Nivea Visage – “Get Fair, Stay Fair”
Nivea Bath Care- “Delightfully Gentle And Creamily Mild”
Nivea Hair – “Entire Care For Frequently Washed Hair”
Niveo Deo: Aqua & Cool- “The Deo That Even Cares For Your Skin”
7-Apr-11 STEVENS B SCHOOL
60. Case Study Analysis
Marketing Program
PRODUCT
• Nivea has expanded significantly to offer a comprehensive choice of
moisturising, protection and care expertise in the face, body, hand, lip,
men's, sun and deodorant markets.
Skin Care—NIVEA Body, NIVEA Visage, NIVEA for Men, NIVEA Sun,
NIVEA Baby, NIVEA Crème, NIVEA Vital, NIVEA Soft, NIVEA Hand, and
NIVEA Lip.
Personal Care—NIVEA Deo, NIVEA Beauty, NIVEA Hair Care, NIVEA Bath
Care, and NIVEA Intimate Care.
7-Apr-11 STEVENS B SCHOOL
61. Case Study Analysis
Marketing Program
PRICING
Consumer price perceptions
Reasonable price so that consumer perceives a balanced cost-benefit relationship
PLACE
Indirect channels
Selling through wholesalers or distributors, and retailers or dealers
Pull strategy through advertising
7-Apr-11 STEVENS B SCHOOL
62. Case Study Analysis
Marketing Program
PROMOTION
In each market, they implemented ‘perfect local execution’ with local agency affiliates
Simple, plain & informative ads
Printed a booklet for internal use detailing its brand philosophy, called the ‘Blue Bible’.
Direct Marketing
Non-Traditional Marketing
Event Marketing
Nivea.com
Harmony in Blue for Nivea Crème
7-Apr-11 STEVENS B SCHOOL
63. Secondary Association
Event :
Company : Beirsdorf , BDF Sponsored various organizations in Europe
Beach lifesavers(lifeguards)
Children’s sailing programs
Country of origin : Germany Beach volleyball tour
School education programs for safe sunbathing
Channel of distribution : Indirect Channels Branded double-decker bus
Travelled to concerts and other youth oriented
events
Endorser : Real, inspirational Consumer could get a total hair & face
makeover at the bus
Nivea Hand product free with each Nivea
people Hand Anti-Age Crème Q10
Nivea shops in large German department
stores
Extensive point of sale display
Beauty advisor in-house to help customers
7-Apr-11 STEVENS B SCHOOL
64. Case Study Analysis
Brand Awareness
Nivea is the world's largest skincare brand with a strong international presence in around
170 countries and an enviable reputation.
Most trusted brand in Germany, 2001-2004, Readers Digest
7-Apr-11 STEVENS B SCHOOL
66. Case Study Analysis
CBBE Pyramid
Resonance: Attachment, Community
Judgments: Credibility, Superiority
Feelings: Safe, Warmth, Pleasure,
Satisfied
Performance: Imagery: Heritage, For family, Universal
Quality, Mild & Gentle, Caring & protective, applications, Blue Harmony
Pure
Salience:
Various products and purposes,
Blue tin
4/7/2011 STEVENS B SCHOOL
67. Case Study Analysis
Brand Association
Strong Favourable Unique
High And Consistent Quality Caring & Protection A Complete Caretaker Of Skin
Reliability Pleasant Fragrance A Universal, Unisex Acceptance
Blue Colour Tin / White Logo Gentleness Special Product Range For Men
Luxurious Brand Mildness/ Smooth World Known Brand
Heritage Fair Price
Trust
7-Apr-11 STEVENS B SCHOOL
68. Case Study Analysis
Brand Hierarchy
Skin Care Personal Care
• NIVEA Body, • NIVEA Deo,
• NIVEA Visage, • NIVEA Beauty,
• NIVEA for Men, • NIVEA Hair Care,
• NIVEA Sun, • NIVEA Bath Care,
• NIVEA Baby, • NIVEA Intimate Care
• NIVEA Crème,
• NIVEA Vital,
• NIVEA Soft,
• NIVEA Hand,
• NIVEA Lip
7-Apr-11 STEVENS B SCHOOL
69. Case Study Analysis
Question No. 2
What are the pros and cons of the sub-brand strategy? Should Nivea run a corporate
brand or umbrella ad for all of their products? What is the role of the Nivea Crème
advertising? Should it be changed?
7-Apr-11 STEVENS B SCHOOL
70. Case Study Analysis
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 Nivea crème core brand image
• Continuity + Innovation: Continue to nurture core Nivea
associations while widening its applicability
• Separate budget for each sub-brand
• To take care of specific skin care and personal care needs
of their target market segments
• Reinforce and elaborate on the image of Nivea as a skin
care specialist
• 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
7-Apr-11 STEVENS B SCHOOL
71. Case Study Analysis
Role Of The Nivea Crème Advertising
Cosmed worked with its advertising agency, TBWA to communicate a certain “Niveaness” in all ads & promotions
Campaign should incorporate the brand values:
Timeless & ageless
Motherhood & a happy family
Honesty
Trustworthiness
Benefits of mildness & quality
Other guidelines:
Common emotions in all ads
A uniform Nivea logo
Consistent lettering & typeface
Real, inspirational people in the ads
Understable copy about the product
‘’Blue Harmony’’ , campaign
Nivea sub-brands adopted the design elements (block and cursive combinations) of the Nivea crème ads, & contained
“Nivea” message of quality & care
7-Apr-11 STEVENS B SCHOOL
72. Case Study Analysis
Role Of The Nivea Crème Advertising
No, in my opinion the advertisement should not be changed:
Nivea, still the important image carrier
Core brand of the company; synonymous with blue tin & white lettering
Automatic transferring goodwill to the other product classes
7-Apr-11 STEVENS B SCHOOL
73. Case Study Analysis
Question No. 3
Discuss the risks and benefits of Nivea’s brand extension into new product categories and
customers. How have Nivea’s executives managed this extension? Have they missed
opportunities such as perfume or foot care?
7-Apr-11 STEVENS B SCHOOL
74. Case Study Analysis
Benefits of Extensions
Long term objective: (Skin crème-> skin care)
Company Philosophy: To respond to market trends & innovate through R & D
Facilitate new product acceptance
Widening applicability & enhancing meanings
Reduce risk perceived by customers (Halo effect)
Increase the probability of gaining distribution and trial
Expand the market share
75. Case Study Analysis
Risks of Extensions
Can confuse/ frustrate consumers (complicated, risky)
Can fail and hurt the parent brand image (Nivea crème)
Can succeed but cannibalize sales of parent brand
Can succeed but diminish identification with any one category
Can dilute brand meaning
76. Case Study Analysis
Extending the Nivea Brand
Skin Care &
Skin Creme
Personal Care
Mono product philosophy:
Only one product promising consumers universal application in each product category
Second version of a particular product could be introduced only if it satisfied a unique
need not meet by the current product(s) in its category
7-Apr-11 STEVENS B SCHOOL
77. Case Study Analysis
Extending the Nivea Brand
Set of Guidelines:
Meet a basic need: clean & / or protect
Offer the special care / mildness benefit of Nivea Crème
Be simple & uncomplicated
Not to offer to solve only a specific problem
Maintain a leading position in terms of quality
Offer the product at a reasonable price so the consumer perceives a balanced cost-benefit
relationship
Offer the broadest possible distribution
7-Apr-11 STEVENS B SCHOOL
78. Case Study Analysis
Extending the Nivea Brand
Has always responded to consumer expectations & market trends.
Believed in continuity + innovation; new & improved product in each category
Gradual innovation
Still not missed the opportunities of perfume or foot care but have a competitive edge of
the large market share & trusted brand so it can go for the big move.
7-Apr-11 STEVENS B SCHOOL
79. Case Study Analysis
Question No. 4
Should Nivea pursue a Men’s grooming category? Does the company risk alienating its
core customer base of families and women or is this a natural next brand extension?
7-Apr-11 STEVENS B SCHOOL
80. Case Study Analysis
Nivea for Men
Nivea for Men line included
Two new fairness products - a Whitening Moisturizer and Multi-White Whitening
Facial Foam.
Deodorant Aqua Cool,
Multi Protecting Facial Foam,
Moisturizing Shaving Foam,
Shaving Gel and
Cooling Gel Moisturiser, a light hydro gel, with Iso Magnesium and Mint Extracts
Less alcohol, more care
7-Apr-11 STEVENS B SCHOOL
81. Case Study Analysis
Nivea for Men
Nivea should pursue the men grooming category
All sub brand are catering to some specific need, so it wont hurt the company’s brand
image of unisex
It is a result of innovation: a complete care for men’s skin for the metrosexual men
Men’s skin care market is growing now & Nivea took the advantage of first move & its
image of quality & care .
7-Apr-11 STEVENS B SCHOOL
82. Case Study Analysis
Question No. 5
What would you do now? What recommendations would you make to Nivea concerning
next steps in their marketing program?
7-Apr-11 STEVENS B SCHOOL
83. Case Study Analysis
Recommendations
Though Nivea is growing in emerging market, it has a tough competition with other skin
care brands.
To become a global brand, the product adaptation has to be done
For this, no sacrificing of the brand image of quality & care
Adapt as per the consumer profile of the nation
Pricing: For emerging market, the price needs to be fine-tuned
7-Apr-11 STEVENS B SCHOOL