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Brand : Nivea Company : Beirsdorf AG (JL Morrison in India) Agency: TBWA Brand Count : 147
Nivea 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 its name 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 a global brand has not met with success in India. Nivea globally is the brand that has its presence in around 20 product categories in more than 50 countries. But in the 1300 crore 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 care category 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 "Gentle Care" and " Wellness". The brand has its elements of Color embedded firmly in the minds of the customers. Nivea took its "Blue and White" color as its brand element as early as 1924. From there onwards, this color scheme has been a brand identity for Nivea.
Nivea cream is but perceived as a winter cream because of its thickness and oily consistency. the objective of the brand manager will be to milk maximum out of the brand rather than invest in longterm brand building.This is a brand that failed because of marketing laziness. Nivea have huge brand recall and equity. Although JL Morrison tried to extend the brand to soaps. With most of Indian stated do not have severe winter. While Pondssuccessfully extended itself to other product categories. successful positioning opportunity but was not able to leverage the strength because the Indian marketers didnot want to invest in the brand. The brand has not been aggressive enough in this market which is crowded with established brands. Nivea has successfully came out of this narrow perception. The problem is that when the brand is licensed to a marketer in a country.In India. the brand is known for its skin cream. the brand is . The potential of the brand is evident from the fact that in the Grey market. the marketers were not able to effectively take the brand forward. It has the global parentage. While in other parts of the world. the extension has not been successful brand bec equity ause of the is halfhearted effort. Nivea was never bothered about strengthening its positioning as a skin care leader. But in the case of Nivea.Now Ponds hold the position which Nivea could have taken had it been more aggressive in the market.Nivea has a market share of 19% in the Rs 108 crore skin cream market which is dominated by Ponds. in India. no such brand building efforts were to be seen. Successful brands required longterm investment that will yeild results over a period of time. Every ads and campaigns will be weighed interms of the ROI and sales growth. With salespromotion now being used to promote this brand of soaps. the market for winter cream is very limited. Nivea is stuck with its cream. Nivea face serious marketing issues in India.further dilution of the inevitable.
sold well. FMCG.brandweek. Nivea is sad story of a brand that failed to succeed inspite of having all essential Brand qualities. It is said that Nivea Deo is the best selling product in the grey market. failed brands. personal care. If failed because of marketing laziness.businesstoday.com Labels: branding. There is also significant difference in the quality of imported Nivea and the local one. marketing myopia.nivea. Heritage Brand. soap brands . source:rediff.
However. why not offer spaghetti and pasta toppings? The same companies are now offering chole and spicy masala pizzas. but the company eventually realized that it had to bow to local tastes. the Modi Group. especially when we went into smaller towns. the firm·s aim was to target only high-income earners. But. We have focused on more regional flavours now. Domino·s Pizza. when we offered tandoori chicken and paneer toppings.· reported Business Week at the time. our focus was to stay only in metropolitan areas. as Arvind Nair. failed to inspire. By 1997. When Whirlpool launched its refrigerators on the Indian market. ¶Indians turned up their noses at the Sedan ² a model older than those sold in Europe. We have also experimented with our taste options. ¶Initially. but in the last two years we have felt the need to spread ourselves into ´mini metrosµ and B-category towns. Most Indians initially thought that the new entryto the market wasn·t fizzy enough. In return. rap and pop to the sub-continent. Citibank soon realized that ¶in India it makes sense to go the mass banking way rather than the class banking way. which was the first to offer local topping.000 car capacity. in the words of the Business Line newspaper. Citibank. the plant was using only 10 per cent of its 20. however. ¶Now Mercedes has to reassess its mistakes and start exporting excess cars to Africaand elsewhere. US Pizza. Now. When MTV India was launched. He told the Hindu newspaper Business Line that US brands such as Domino·s made the mistake of thinking that US tastes are universal. Initially. Thums Up remained more popular than Coke for many years. which was targeted at the growing ranks of India·s wealthy middle class.· he says. Modi-Luft. As a result of this change of strategy. although this gave Coca-Cola an instant distribution network.· says Wahid Berenjian. the managing director for US Pizza. Coca-Cola. Domino·s came up with localized toppings such as ¶Peppy Paneer· and ¶Chicken Chettinad·.· Lufthansa. claiming he had used funds obtained from the German company in other ventures. the music policy has shifted to accommodate Indian genres such as bhangra. In 1995 the German car giant opened a plant in Indiato produce its Eclass Sedan.y y y y y y y Mercedes-Benz. Germany·s Lufthansa airline joined forces with Indian company. The car.· he said. ¶In 1995. The Coca-Cola company understood that distribution was the key to building a strong Indian brand. some made fun of us saying. to launch a new domestic private airline. it found the market unwilling to buy larger sizes than the standard 165 litres.· . three years later ModiLuft had gone bust and Lufthansa filed a lawsuit against one of the Modi brothers. chief executive officer at Domino·s Pizza India explains. This move was greeted with a wry smile from Domino·s main Indian competitor. the aim was to bring Western rock. ¶You cannot change the taste buds that were developed more than a thousand years ago. However. Domino·s Pizza transferred its Western offerings direct to the Indian market. It therefore decided to buy out one of India·s most successful soft drink companies and manufacturers of popular soda brand Thums Up. MTV. When Citibank entered the Indian market. Whirlpool. the Modi Group accused Lufthansa of charging too much and of producing defective planes. in 1993.
¶The rules are very clear. Although Indian brands were worried they would struggle against a new wave of foreign competition following the market opening of 1991. It may be easy for brand managers of global brands to view the world as homogenous. Globalization may be an increasing trend. y y .· Brands who want to succeed in India and other culturally distinct markets need to remember this.· said C K Prahalad. ¶The trick is not to be too big. Don·t try and make consumers strangers to their culture. Business Line.Lessons from Kellogg¶s y y Do your homework. where consumer demands are all the same. ¶Multinational corporations must not start with the assumption thatIndia is a barren field.· Remember that square pegs don·t fit into round holes. but you cannot make me a stranger to my culture.· says Titoo Ahluwalia. business professor at theUniversity of Michigan.· says Ramanujan Sridhar. When Kellogg·s first launched Corn Flakes in India it was essentially launching a Western product attempting to appeal to Indian tastes. chief executive officer at Indian marketing and advertising consultancy firm Brand Comm. The society is much stronger than any company or product.· says Wahid Berenjian. ¶You can alienate me a bit from my culture. the managing director for US Pizza (which has successfully launched a range of pizzas with Indian toppings) in an article for the Hindu newspaper. chairman of market research company ORG MARG in Bombay. in a Business Week article. but the reality is rather different. they were wrong. Don·t underestimate local competitors. but regional identities. customs and tastes are as distinct as ever. Why did Kellogg·s cereals have a tough ride inIndia? ¶It was just clumsy cultural homework. ¶There is a bigger opportunity in localizing your offerings and the smarter companies are realizing this.
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