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.

1. Case Study Presentation
Presented By:
Nikita Sanghvi
Source: Best Practice Cases in Branding, Kavin Lane Keller, 3rd Edition, 2008, Pearson

2. 7-Apr-11 STEVENS B SCHOOL

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

4. 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

9. 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

12. Case Study Analysis
Extending the Nivea Brand
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

15. 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

19. 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

22. 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

24. Case Study Analysis
Nivea Crème
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

32. Case Study Analysis
Nivea Baby
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

35. 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

38. Case Study Analysis
Nivea Beaute
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

41. Case Study Analysis
Nivea Hair Care
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

43. 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

53. 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

55. 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

65. Case Study Analysis
CBBE Pyramid
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

84. THANK YOU
7-Apr-11 STEVENS B SCHOOL