Nivea_IIFT_Presentation

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NIVEA MANAGING A BRAND PORTFOLIO
Presented by SATISH MENON SAURABH
KUMAR SHAILENDRA SINGH SUNIL KINI
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Presentation Flow

• Brief Overview of Case
• Development of Nivea as a brand ( 1912 to 1993)
• Discussion on Q.1
• Niveas brand image
• Niveas sources of equity
• Variation of brand image and equity across
  product class
• Discussion on Q.2
• Pros and cons of various options with Biersdorf
• Corporate branding Ad vs Umbrella Ad
• Role of Nivea cream advertising
• Discussion on Q.3
• Recommendations for Niveas future marketing
  program.

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Case Overview
Biersdorf (BDF) is the manufacturer of NIVEA skin
care and personal care products. The Nivea brand
is known worldwide but its a leading mass market
brand in Europe. NIVEA Creme - the first
product introduced has over the years
successfully extended the Nivea brand to a
full range of skin and personal care
products. Cosmed div. sought to strategies for
the future keeping the market needs and heritage
of the Nivea brand in mind.
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Beiersdorf at a Glance

• Beiersdorf
• Branded consumer goods company
• Founded 1882 in Hamburg
• Global footprint with more than 130 affiliates
• 16,800 Employees worldwide
• 6.1 bn sales in 2006
• Sales per Region
• Germany 25
• Europe w/o Germany 48
• Americas 15
• Africa / Asia / Australia 12

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Development of the Nivea brand
1912 NIVEA Creme introduced in the German
market by Biersdorf. 1912-1970 Range of
products - introduced and expanded under Nivea
brand - maintaining a mono-product
philosophy. NIVEA Creme remained the companys
premier product 1970-1993 Extended the Nivea
brand from the limited range of products
- Nivea crème,Milk,Soap and Sun to a
full range of skin care and personal
care products 1993- 2006 At Beiersdorf, now
one goal To meet consumers' skin and beauty
care needs. Every day. Throughout the world. 
la prairie Luxury Colour Palette Silver Rain
brilliance Toddler
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Product Line
NIVEA Visage DNAge Cell Renewal

• First Anti-Age Nivea Visage Face Care
  formulated for skin cell
• renewal
• Reduces DNA damage in the skin
• Patent pending formulas with
• combination of Folic Acid and
• Creatine

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Product Line
NIVEA body Anti-Age Treatment
Product Line

• First Anti-Age Nivea Body Care
• for mature skin
• New formula with skins own
• Creatine
• Proven to reduce sagginess,
• wrinkles and dryness
• Opening up a new high potential
• segment for NIVEA body

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Product Line
NIVEA body Good-bye Cellulite
Product Line

• Only three months after launch,
• Attained No 1 market position
• among all body care products in
• France, Belgium, Italy, Portugal
• and Turkey

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Product Line
NIVEA Hair Care New Assortment
Product Line

• Further exploit huge market potential
• New shape and design to attract
• additional consumers
• New caring formulas to prove
• unique Beauty expertise
• Even stronger communication of
• consumer benefits

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Q1
A. What is the brand image and sources of brand
equity for the Nivea brand ? B. Does it vary
across product class ?
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Niveas brand image

• Rich set of brand associations (Strength)
• Care, mildness, reliability,gentleness,protection,
  high quality, feeling good reasonably
  priced
• The Nivea woman- reflected in Ads as
  clean,fresh and natural
• Used by entire family (Favourability)
• A universal,unisex acceptance satisfying
  multiple needs
• Strongly associated with shared family
  experiences
• Mother and child relationships, family vacations
  on the beach
• Caretaker of skin (Uniqueness)
• Caring and protective-Sun lotion ,Mens range .

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Niveas sources of equity

• NIVEA Crème s unique water in oil emulsion -
  snow-white in color
• Nivea name from Latin word- nives - snow
• Nivea products - blue color background with white
  lettering
• - extended from the NIVEA Crème tin
• Niveas core brand associations mildness and
  caring
• - Correlated with the key skin needs of
  consumers
• - Enjoyed high degree of confidence goodwill
• - Reliability,quality and honesty.
• Niveas brand associations fit with the values of
  the consumer
• - Desire for fairness, authenticity, openness
  and belonging
• Nivea name - synonymous with skin care
  protection

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Variation of brand image and equity across
product class

• Nivea - Exploited the strength of NIVEA Crème
  brand associations and
• transferred it to other product classes
• New products
• Positioned with a promise to contain the core
  brand associations of NIVEA Crème
• With some new benefit provided by the product
• 1992 Nivea crème - largest contributor to
  total revenues(22)
• The newer product lines had each made
  significant contributions of their own
• 1996-2006- Diversified and consolidated
• -Successfully carried brand associations of
  Nivea crème
• - Global presence
• - Established Nivea as a skin care brand
• - Rather than only a skin cream brand.

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Brand associations of core brand extended across
the product class
Nivea Sun the new Nivea Sun makes the sun
gentle Nivea For Men- Less alcohol,more
care Nivea Shower and Bath-Delightfully Gentle
and creamily mild Nivea Hair - Entire care for
frequently washed hair Niveo Deo-The deo that
even cares for your skin
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Q2

• What are the pros and cons of the various options
  available to Biersdorf management?
• Should they run a corporate brand ad or umbrella
  ad for all their products?
• What is the role of Nivea skin cream ad?
• Should it be changed?

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Various Options Available

• Corporate Brand Biersdorf as a corporate brand
  for all products
• Family Brand (Umbrella) NIVEA family
• Individual Brand Nivea individual Products

Nivea Passion for Success strategy
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Corporate Brand

• A successful Corporate Brand has-
• Corporate Image Role of Company/Corporate Brand
  in the adopted
• Branding strategy
• The companys role in society - its reputation
• Firm keep a high public profile - influencing and
  shaping more abstract
• types of associations
• Corporate Brand Equity- Constituent responds more
  favorably to a
• corporate ad campaign as compared to an unknown
  company.

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Corporate Brand Biersdorf for all Nivea
products

• Biersdorf as a Brand
• Never Introduced in market
• The "NIVEA Boys" poster campaign-1920 -
  introduced the modern blue and
• white packaging Till Date
• Brand Awareness - No Recall - Never Heard Never
  Seen
• Brand Image No Niveaness i.e. Natural, Mild,
  Skin caring etc.
• Hence Biersdorf as a Brand has negligible equity
  When compared to Brand Nivea

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Post 2000-Case Build up
2001 Tesa to become an independent affiliate.
Tesa AG is formed as a wholly
owned affiliate of Beiersdorf  Professional
wound care is spun off and contributed to a joint
venture between Beiersdorf and Smith Nephew.
BSN medical, domiciled in Hamburg, is founded.
2002 Florena becomes a wholly owned
Beiersdorf subsidiary. The cooperation dates back
to 1989, and was intensified following the
reunification of Germany. 2003 A new
functional group organization focusing on the
areas of brands, supply chain management, finance
and human resources replaces the previous
divisional organization. 2004 The new skin
research center opens in Hamburg, underscoring
the innovative strength of the globally
successful Beiersdorf group.   2005 Beiersdorf
AG and Smith Nephew plc realising the
investment in BSN medical sale to Montagu
Private Equity.
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People Speak
In many countries, consumers are convinced that
Nivea is a local brand, a mistake which
Beiersdorf, the German makers, take as a
compliment. As quoted on leading brand
consultancy Wolff-Olins' website,
www.wolff-olins.com
Coca-Cola as a brand does not have a lot of
extendibility. Whereas Coke means Coca-Cola,
Nivea is not Beiersdorf. MD of A C Nielsen's
Global Services Division, on Nivea's brand
extension successes
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Family/Umbrella Brand

• Family brands evoke a specific set of
  associations across related products
• w.r.t.
• common product attributes,
• benefits and attitudes
• programs and values
• and corporate credibility
• to similar set of people and relationships.
• Family Brand is used when
• Company level associations are less salient.
  Weak Corp. Brands
• Dissimilar Products - harder for the corp. brand
  to retain any product meaning

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Family/Umbrella Brand NIVEA family

• May 2003 - survey of 'Global Mega Brand
  Franchises'
• Nivea present in maximum number of
• Product categories
• Countries
• yahoo.com news article - named it the
• Queen of Mega Brands.

• NIVEA family
• A strong Brand Depth Breadth
• Even Stronger Brand Image
• Uniqueness Caretaker of Skin
• Continuity Plus innovation (since 1910)
• Association- Men as well as Women

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• Individual Brands Nivea Individual Products

• Restricted to essentially one product category
• Though Multiple product types could be offered
  on basis different models, package,size,
  flavors etc.
• Main Advantages
• Brand as well as marketing customized.
• All Brand Elements-Design,Communication programs
  ,pricing distribution
• focus on certain target market.
• On failure- no risk to other brands
• Main disadvantages
• Difficult, complex expensive in creation of
  separate marketing programs
• Does not enhance the parent brand image
• Does not offers variety to customers

• Niveas presence
• 14product categories and over 300 products
• Available in more than 150 countries.
• Market leader in skin creams and lotions in 28
  countries,

• In facial cleansing - 23 countries,
• In facial skin care - 18 countries,
• and in suntan products - 15 countries

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• Advertising Nivea

• NIVEA advertising - Over 60 years
• Promoted the basic themes of skin care and
  protection
• Ads - always simple, plain and informative
• Early advertisements - image of the NIVEA women
  as clean, fresh and natural.
• Mid-1920s - introduced the bright and shining
  boys - three happy, healthy lads
• whose loveable looks captured the hearts of
  mothers
• Extended the freshness and natural image to the
  entire family.

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• Advertising Nivea

• NIVEAs 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 NIVEA.

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• Advertising Nivea

• Brand NIVEA
• Closely linked to people
• Always adapted to current consumer needs
• Success - based on forward-looking product
  development.
• NIVEA must carry on with Umbrella Ads so as to
  maximize
• upon the strong Brand Equity earned over decades.

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Nivea Skin Creme (An Introduction)

• Creme NIVEA
• The name NIVEA - Latin word nivis meaning snow
  - reflecting the snow
• white color of NIVEA Crèmes association with
  purity.
• Nivea Crème - created by a team of dermatologists
  1911
• Over 98 of the ingredients within NIVEA Creme
  are natural.
• It was claimed as - "the world's first
  long-lasting skin cream."
• Every second, a pot of NIVEA Creme is sold .
• Enough tubs of NIVEA Creme have been sold to
  supply one pot to every
• person whos ever been alive or is alive now.
• NIVEA Creme is sold in some 160 countries around
  the world.

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Role of Nivea Skin Crème ad

• NIVEA - primarily through Creme NIVEA - acquired
  a unique, universal
• brand image as a caretaker of skin.
• Creme NIVEA is synonymous with protection and
  caring for the skin for its
• Mildness,
• Reliability,
• Gentleness,
• Protection,
• High quality,
• and value for money

All these attributes are strongly associated with
the NIVEA Brand ,curtsy - Creme NIVEA
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Role of Nivea Skin Crème ad
Two researches conducted by BDF 1990s A
Inner Visuals - imagery study - Pictures were
associated to skin care brand - Nivea was
associated to pictures denoting Traditional
Family ideal, Communities Earth The Blue
Planet - relating it to Creme NIVEA. B
Semiological Analysis of consumers
socio-cultural values in 1990s - To evaluate
Socio-cultural position of Creme NIVEA and other
major sub brands.
These studies revealed - NIVEAs Brand
association fit well into values of
1990s.consumer. -The return to more simplistic
and holistic approach to life , -The desire to
more fairness, openness authenticity and
belongingness These were the values associated
to NIVEA and particularly- Creme NIVEA
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Role of Nivea Skin Crème ad
So the dominance of Creme NIVEA brand and its
communications in creating NIVEA as a brand has
been proven scientifically also, therefore
In our view this must be carried on focus
while advertisement must be maintained on Creme
NIVEA, the BDFs flagship product. But it must
now focus on experience effect in newer markets
like India to expand Mainly through Nivea Creme
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Q3
What would you do now? Provide recommendations to
Nivea concerning next steps in their Marketing
Program?
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Key approaches that Nivea could adopt to grow i.
Market Penetration ii. New Product
Development iii. Market Development iv.
Diversification
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Market Penetration

• Market Penetration
• Selling more products involves either growing the
  market as a whole or taking market
• share from competitors.
• Adjusting the marketing mix
• Product - Reformulating products to make them
  more effective e.g. better at moisturising.
• Price - Reflecting good value but at a premium to
  retailers' own or private labels to
• represent quality.
• Place - finding new outlets through which to sell
  the products.
• Promotion - finding more effective ways of
  reaching the target market, e.g. samples on
• beauty magazines.

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NIVEA Lip Care is a good example of the way in
which NIVEA is building an existing product in
an existing market, i.e. market penetration.
Despite the seasonal nature of demand for lip
care products and their relatively low selling
price. NIVEA lipcare has developed the brand
through monitoring trends in the market and
matching these with its existing core
competencies in skin care.
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New product development

• ii. New product development
• Beiersdorf's investment across a broad range of
  existing products illustrates its commitment to
  new product development which should be
• carried along.
• Focus on Core Competence of RD to provide
  Quality Products
• Matching Science With the Consumer's Needs
• Developing new concepts for active ingredients
  against skin aging
• Higher focus on organic and Herbal formulations
• Communication to the larger audience
  highlighting the thrust on RD.

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New product development

• A good example of new product development was the
  
• launch of NIVEA Visage Soft Facial Cleansing
  Wipes in
• 1999.
• Market research at the time showed only 66 of
  UK women used a facial cleanser
• Whilst only 27 has a face care regime (cleanse,
  tone, moisturise)
• Women were looking for an easy, convenient, face
  care routine.
• NIVEA's Soft Facial Cleansing Wipes remove eye
  make-up and
• cleanse and tone in one simple step thus
  meeting customers
• known requirements.
• This is the basis of the product's success. Not
  surprisingly, NIVEA
• rapidly became the No.1 brand.

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Market development

• iii. Market development
• Clear Geographical Focus -To focus on clearly
  defined geographical
• priorities.
• Western Europe should remain in focus.
• China, Russia, Brazil, and India should be
  geographical priorities
• delivering superior growth.
• Should put more emphasis on sizeable regions,
  like Latin
• America and Asia.
• Should focus on dedicated solutions for some
  product categories to
• address local consumer needs.

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• The UK launch of NIVEA deodorant is a good
  example of market development within the NIVEA
  range.
• The UK deodorant market is currently worth 300m
  annually. It is a highly competitive
• market, dominated by one major manufacturer,
  Unilever, who account for over 60 of all
  sales.
• NIVEA identified a strong match between
  traditional NIVEA brand values and those
  required in a skincaring deodorant, i.e.
• Protection
• Suitable for skin
• Mild/skin friendly
• Pleasant fragrance
• Reliable brand
• High quality.
• This allowed NIVEA to enter the market in the
  more specialist skin caring deodorant segment,
  away from the bigger, high-performance focused
  brands, with which the NIVEA brand image had
  fewer synergies.

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Diversification

• iv. Diversification
• Develop new products for new markets.
• This is well illustrated by the development of
  the NIVEA FOR MEN range.
• This development resulted from several trends.
  These include
• The softening and blurring of "male" and
  "female" gender roles.
• Increased spending on lifestyles with more
  people attending gyms and caring about
• their appearance.
• New media developments, e.g. the revolution in
  men's magazines provide direct
• contact with men through advertising.

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• NIVEA was the first mass-market brand to set out
  to develop male
• facial care/moisturising.
• The NIVEA FOR MEN range provides straightforward
  practical
• solutions to men's skincare needs.
• It targets men who value their appearance and
  who see it as a key
• contributor to self-confidence i.e. NIVEA has
  diversified into the male sector of the
  market.

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Conclusion
In 60 years Creme NIVEA has made Nivea Brand
synonymous to skin care
When compared to Brand Nivea, Biersdorf as a
Brand has negligible equity
NIVEA must carry on propagating there Family
Brand through Umbrella Ads so as to maximize
upon the strong Brand Equity earned over decades.
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