Nivea was established in 1882 by Paul C. Biersdorf as a medical plaster brand, and was named "Nivea" in 1911 to mean snow in Latin. It has since grown into a global skin care brand owned by Beiersdorf, present in over 150 countries with 15% of the global skin care market in 1990. Nivea adopted an umbrella branding strategy, extending its product categories and brand globally to increase brand equity and tap new consumers, though this posed risks of brand dilution if not managed well. The brand's marketing emphasizes mass advertising and appeals to the upper strata through a personality of trust and love while always keeping the brand young and linked to its consumer base.

1. A Marketing
Insight

2. NIVEA, ONE OF THE LEADING SKIN CARE BRANDS IN THE WORLD,
HAS COME A LONG WAY

3. FROM MEDICAL PLASTERS TO
SKIN CARE

4.  ESTABLISHED IN 1882 BY PAUL C. BIERSDORF
WITH A PATENT FOR MEDICAL PLASTERS
 NAMED IN 1911 BY OSCAR TROPLOWITZ, ‘NIVEA’ IS DERIVED FROM
THE LATIN WORD ‘nix, which means ‘SNOW’.

5. The Case Describes :
o BRAND MANAGEMENT STRATEGIES FOR ITS LARGE RANGE OF PRODUCTS.
o ITS JOURNEY FROM A ONE PRODUCT BRAND TO AN UMBRELLA ENTERPRISE
o THE STRATEGIES ADOPTED TO ENSURE THAT BRAND DILUTION DID NOT HA
ITS UMBRELLA BRANDING INITIATIVES.

6. COMPANY OVERVIEW
• Nivea is a brand of Beiersdorf, a German based company owing various
other cosmetics brand.
• In year 2003, company was present in over 14 product categories
• These product categories were serving people IN OVER 150 countries.

7. THE BRAND HAD A 15% MARKET SHARE IN THE GLOBAL SKIN CARE PRODUCTS MARKET
IN 1990

8. FACTS
Market leader in :
• Skin creams and lotions in 28 countries.
• Facial cleansing in 23 countries
• Facial skin care in 18 countries
• Suntan products in 15 countries

9.  Between 1991 and 2001, Nivea posted double digit growth rates every year.
 For the year 2001, brand generated revenues of 2.5 billion.
 Nivea was the single largest factor of 4.4% increase in the company’s revenues
And 10.7% increase in PAT for the year 2002.

10. MARKETING
STRATEGY
 The target segment were
primarily women from the
upper strata of society.
 Mass-marketing.
 Taking help of advertising
for brand recognition.
 Expanding the brand
globally

11. GLOBAL BRAND EXTENSION
 Beiersdorf wanted to go global with the Nivea
brand, so they extended their product categories.
 Geographical conditions of various countries
also motivated Beiersdorf to extend their brand
to a variety of places.
 Beiersdorf wanted to increase the brand equity
of Nivea, that’s why they adopted the strategy of
product category extension.

12.  As the competition increased in skin care
market, it was necessary for Nivea to extend
its brand in order to be a-step-ahead of
competitors.
 To tap up all age groups of consumers,
both male and female, it was essential for
Nivea to extend its brand.
 Brand extension is one of the latest
development strategies, which can reduce
financial risk by using the parent brand name
So, Nivea decided to extend its product
categories to tap a brand new set of
consumers.

14. An umbrella brand is a brand that
covers diverse kinds of products
which are more or less related.
It applies also to any company that is
identified only by its brand and history.
An umbrella brand is used as a place
brand by localities to attract the attention of
different kinds of audiences.

15. PROS
 Thesame brand supports several products in different markets.
 Themain advantage ofusing umbrella branding strategy is the capitalisation
on one single name.
 Theumbrella branding strategy also helps newproducts to penetrate in the market.

16.  It also helps in brand awareness and brand recalling
 An umbrella brand strategy allows the core brand to be
nurtured by being associated with products with which it was not
previously associated.
 An umbrella brand strategy also helps companies to reduce
promotional and advertisement costs.

17.  If the brand is not managed well, then
it’s a threat for its associate brands.
• If the core brand is not stronger than it’s
extension, then it may destroy the
brand image.
• Sometimes the brand communication strategy of
core brand affects the extension brand i.e, the
message that the core brand is communicating
Is not clear.

18. o They never use animal fats in any form in their products.
o Their product is completely made of natural ingredients whatsoever.
o It has a strong brand personality which is emotionally involving ,
based on trust and love.
o Its products meet consumer needs in every form.

19. • It’s a mass market brand which offers
the largest skincare assortment to people
all over the world.
• It always works hard to keep its brand young,
attractive, energetic and sympathetic to the masses.
• The Nivea brand has always been closely linked with
Its consumer base.

20. SUMMARY
 How was Nivea set up ?
 Introduction of the brand
 The company overview
 Market Share
 Facts and growth
parameters
 Marketing Strategy
 Global Brand Extension
 The Umbrella brand
(Pros and Cons)
 Core Values

21. DISCLAIMER BY: SURABHI GUPTA
MANAV BHARTI UNIVERSITY
PRESENTED AS PART OF AN INTERNSHIP UNDER
PROF. SAMEER MATHUR, IIM LUCKNOW