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Nivea

Nivea

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Published by Nikhil Dsouza

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Published by: Nikhil Dsouza on Sep 06, 2010
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Nivea : Gentle Care
Brand : NiveaCompany : Beirsdorf AG (JL Morrison in India) Agency: TBWA Brand Count : 147Nivea is a German brand marketed in India by JL Morrison. This brand has a history of around 96 years. Nivea came into existence in the year 1911. The brand has derived itsname from the Latin word Nivius meaning "Snow White".Nivea has been in Indian market for more than 30 years. But this brand which is truly aglobal brand has not met with success in India. Nivea globally is the brand that has itspresence in around 20 product categories in more than 50 countries. But in the 1300crore Indian skin care market, the presence of Nivea don't justify its rich heritage. Nivea is famous worldwide for its face cream. Nivea Creme created by Dermatologists was launched in 1911 . The brand is considered to be the first to take the skin carecategory from the elite class to the masses. The brand worldwide is known for its Trust,Reliability and Accessibility. Globally this brand is positioned in the platform of "GentleCare" and " Wellness". The brand has its elements of Color embedded firmly in theminds of the customers. Nivea took its "Blue and White" color as its brand element asearly as 1924. From there onwards, this color scheme has been a brand identity forNivea.
 
In India, the brand is known for its skin cream. Nivea cream is but perceived as a wintercream because of its thickness and oily consistency. While in other parts of the world,Nivea has successfully came out of this narrow perception, in India, the marketers werenot able to effectively take the brand forward. With most of Indian stated do not havesevere winter, the market for winter cream is very limited.Nivea has a market share of 19% in the Rs 108 crore skin cream market which is dominated by Ponds.Now Pondshold the position which Nivea could have taken had it been more aggressive in themarket. Although JL Morrison tried to extend the brand to soaps, the extension has not beensuccessful because of the halfhearted effort. Withsalespromotion now being used to promote this brand of soaps,further dilution of the brand equity is inevitable.Nivea face serious marketing issues in India. The brand has not been aggressive enoughin this market which is crowded with established brands. Nivea was never botheredabout strengthening its positioning as a skin care leader. WhilePondssuccessfully extended itself to other product categories, Nivea is stuck with its cream.This is a brandthat failed because of marketing laziness. Nivea have huge brand recall and equity. Ithas the global parentage, successful positioning opportunity but was not able to leveragethe strength because the Indian marketers didnot want to invest in the brand. Theproblem is that when the brand is licensed to a marketer in a country, the objective of the brand manager will be to milk maximum out of the brand rather than invest inlongterm brand building. Every ads and campaigns will be weighed interms of the ROIand sales growth. Successful brands required longterm investment that will yeild resultsover a period of time. But in the case of Nivea, no such brand building efforts were to beseen.The potential of the brand is evident from the fact that in the Grey market, the brand is
 
sold well. There is also significant difference in the quality of imported Nivea and thelocal one. It is said that Nivea Deo is the best selling product in the grey market.Nivea is sad story of a brand that failed to succeed inspite of having all essential Brandqualities. If failed because of marketing laziness.
source:rediff,brandweek,businesstoday,nivea.com
 Labels: branding,failed brands,FMCG,Heritage Brand,marketing myopia,personal care,soap brands 

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