THE WORLD’S GREATEST SKINCARE BRAND
NIVEA Creme, the starting point of NIVEA®, was created in 1911 by the German company Beiersdorf. At that time it was a breakthrough in science. It was the first stable oil in water cream in the world and was therefore considered to be the beginning of modern cosmetics. The discovery of an emulsifier called ‘Eucerit’ meant that oil and water could be combined to give a stable base for ointments. Due to its stable consistency, this cream had a pure white appearance. In accordance with the custom at the time of giving Latin names to pharmaceutical products, the cream was called NIVEA, derived from the latin word “nix nivis” meaning snow white. A perfect brand name for the snow white creme! Apart from Eucerit to bind the fragile oils with water, it also contains glycerine, a little citric acid and oil of rose and lily of the valley …these caring and protecting ingredients work as excellent moisturisers. It is NIVEA Creme’s unique mixture of these raw materials, which need no preservatives, that make it exceedingly well tolerated and loved by so many skins. The formulation of NIVEA Creme has not changed since its creation. As the basis of all other cosmetic creams that have followed, NIVEA Creme’s enduring popularity has been proven-to have lasted the test of time! From the classic design of the blue jar to the evocative perfume, NIVEA Creme is instantly recognisable and a true classic. The wonderful NIVEA smell, developed before synthetic fragrances were available and consisting of mainly natural ethereal oils, provides that familiar fragrance that is so alluring and whose secret formula is kept under lock and key. The famous blue jar is a design classic that is as modern and relevant today as the cream it contains - a billion consumers worldwide can’t be wrong!
NIVEA Creme: The Contemporary Classic.
early 1950s until 1992. In some countries the NIVEA brand rights were not expropriated - instead they were returned after the war due to an ownership transfer agreement. Following World War II an English company, Smith & Nephew acquired the NIVEA trademark in the UK and Ireland. Smith & Nephew sold the NIVEA brand back to Beiersdorf in 1992. From then a huge programme of new product launches and advertising began. Since its birth in 1911 NIVEA has become the largest brand in the toiletry and cosmetics world with close to £1.5 billion sales in 1999.
NIVEA sales worldwide MILLIR£
1,500 1,400 1,300 1,200 1,100 1,000 900 800 700 600 500 400 0 320 348 370 400 428 477 547 644 819 746 918 1,043 1,214
Wherever in the world NIVEA is, and it is found in 168 countries, people regard it as their national brand.The umbrella brand comprises totally global sub-brands such as NIVEA Visage, NIVEA Sun, NIVEA Body and NIVEA Soft and obviously its starting point, the ever young NIVEA Creme. NIVEA belongs to the 10 most esteemed and familiar brands among consumers in Europe, alongside other global successes such as Coca-Cola, Sony and BMW. (Source: Landor Associates Image Power Survey, 1995).
BRAND PERSONALITY AND IDENTITY
To everyone, NIVEA means comprehensive skincare a whole life long. It fulfils skin needs which are important for external as well as internal well being. NIVEA’s brand personality represents a universal complex of positive human values woven together. Consumers come to know the brand during childhood.The first skincare experiences are nearly always with NIVEA Creme.They are primarily olfactory (smell) and tactile (feel) in nature, but also visual, and they become imprinted in the non-verbal memory. In addition to the smell and tactile feeling, the appearance of the cream plays a NIVEA Finland 1966 significant role in the imprinting of brand loyalty. The white, creamy consistency, white brand name logo on a blue background are all associated with the NIVEA brand. These complex experiences with NIVEA Creme form the foundation for the basic trust placed in the NIVEA brand as a whole.Therefore, in both a socio-historical and biographical sense, NIVEA Creme is the mother of the NIVEA Brand and hence the vehicle which transports the brand myth to other NIVEA sub-brands. Overall, NIVEA has unique brand values of trust, reliability, care, gentleness, accessibility and value for money for all the family a whole life long.These core values extend to all the sub-brands under the NIVEA umbrella brand name. NIVEA clearly is an unpretentious brand, it has strong social components, it is “ageless” with a long history and supports both the physical and mental well-being. NIVEA is an essential part of a healthy life.The NIVEA ethos maintains that there are many factors influencing
NIVEA sales worldwide
NIVEA has retained its popularity over the years for a number of reasons: • NIVEA has a strong brand personality which is emotionally involving, based on childhood, trust and love • NIVEA exhibits outstanding perceived quality which is consistently true all over the world • NIVEA products meet consumer’s needs • NIVEA advertising is constantly up-dated to keep the brand young, familiar and likeable • NIVEA expresses the brand personality, showing real people in a real world - no supermodels! This case study shows the internationally standardised product positioning of the biggest skincare NIVEA Sweden 1943 brand in the world today. A truly global product, NIVEA products are the same everywhere. NIVEA is a world product because skincare knows no frontiers!
A BRAND WITH AN EXTRAORDINARY HISTORY
In accordance with the terms imposed on Germany at the end of World War II, the rights to the NIVEA brand were expropriated (taken away) in many countries, including the UK and Ireland. Beiersdorf bought back the rights country by country from the
® Registered trademark of Beiersdorf AG
NIVEA Greece 1993
ireland: Sub-Brand launches 1992-1999
good health and the state of the skin. Consequently, NIVEA promotes the broader issues such as lifestyle (stress, lack of exercise/sleep), a balanced diet and the process of ageing. A brand like NIVEA has to be carefully guarded over the long-term. It needs a sense of continuity and awareness of the historical roots, combined with the appropriate amount of new flavour and product innovation. If this combination is handled carefully, NIVEA will never go into decline… there is no product lifecycle for a brand like NIVEA. The rejuvenation of NIVEA is therefore ongoing, ensuring contemporary relevance is achieved via new product development and modern advertising. unique benefit - the best conditions for active brand extension of the NIVEA product lines. NIVEA’s strength is based on continuity and innovation.The aim is to keep the NIVEA brand as a core, whilst simultaneously working on its development. “Outstanding quality products to meet consumer needs at the right time and constant updating of the advertising approach - these are the essential factors in NIVEA’s success, keeping the brand young, attractive, sympathetic and familiar.” Mr Uwe Wolfer, Board Member of Beiersdorf AG. The NIVEA Visage face care range was available in Europe as early as 1960. With the international standardisation of the range, Ireland launched (brought out) this new sub-brand in 1992.The launch of NIVEA Visage gave NIVEA the opportunity to upgrade the brand image as a face care expert. Over the last eight years NIVEA Visage has evolved.The range has been rationalised, with product extensions added to grow the brand and poor performing products discontinued.A new logo has been designed and new advertising created to support the new products in the range. Successful innovations include NIVEA Visage Anti Wrinkle Q10 Repair Creme and NIVEA Visage Soft Facial Cleansing Wipes - both products have been key to growth in the facial moisturising and facial cleansing categories respectively. A leader in many European markets, the key to the success of NIVEA Visage face care is the new technologies used to create sophisticated products at an affordable price. A new body care range was launched in 1995 and the easy to understand sub-brand name was called NIVEA Body. The NIVEA Body range evolved from the traditional NIVEA Lotion range which still exists in the market today. Using NIVEA’s skincare expertise, NIVEA Body developed a range of products to suit different skincare needs, for example Enriched for dry skin; Soothing for sensitive skin and Firming Lotion Q10 for firmer skin! The latest innovation in the range, NEW Moisturising Body Spray, is a quick, convenient way to moisturise your body. This new NIVEA sub-brand was launched in 1997 and like the original NIVEA Creme, is a multi purpose creme that can be used on face, hands and body. One of the significant product benefits of NIVEA Soft is that it is an instantly absorbed creme.This uncomplicated straightforward product which leaves skin sensationally soft (as the name suggests), appeals to a new, younger, female consumer. Awareness of this sub-brand was achieved with TV advertising - the TV commercial signalled that NIVEA Soft is young, fresh and different. NIVEA Soft resembles NIVEA Creme and is the youngest offspring of the NIVEA family. The success of the NIVEA for Men range across Europe reflects the changed attitude of men towards personal care. Launched here in 1998, Irish men too have recognised the need to look after their skin. Using NIVEA’s skincare expertise, the NIVEA for Men range of products were designed especially for men. With a fresh, masculine fragrance, the fuss free range now includes Pre Shave Wash and Scrub, Clear Pore Strips, Shaving Foams and Gels and After Shave Balms.The line “NIVEA for Men who dare to care” has been effectively used across all forms of communication.A huge success, NIVEA for Men continues to develop and lead the men’s skincare category in Ireland. NIVEA Deodorant was launched across Europe in 1991.As the market changed, Beiersdorf recognised that consumers no longer expected just high efficiency (i.e. a deodorant that worked) and a fresh fragrance from their deodorant but gentle efficiency too.The NIVEA brand was just right to deliver this benefit.Therefore Beiersdorf launched the NIVEA Deodorant sub-brand with the typical NIVEA attributes of gentleness and caring for the skin. Launched in Ireland in 1999, the NIVEA Deodorant range has products for men and women. NIVEA Deodorant is now Europe’s No.1 Deodorant brand.
THE UMBRELLA BRAND
The NIVEA brand is one of the most famous examples of a superior brand personality developing from a unique product idea.With its special quality and skincare expertise, NIVEA was Ireland as an EU member, belongs to “Euroland”! With a bound to become a successful worldwide brand name. population of 290 million,“Euroland” is one Beiersdorf supported the of the largest markets in the progress of this great world, ahead of the USA brand through the with 270 million and Personal Care Skin Care Personal Care power of Japan with 140 product million. NIVEA NIVEA NIVEA innovation Visage for Men Lipcare Beiersdorf uses and by the successfully opportunities building up these NIVEA NIVEA NIVEA and Shower markets offer Creme Soft Soap expanding and the the brand leading personality positions of NIVEA via new NIVEA NIVEA the NIVEA Deo Body Sun sub-brand sub-brands to launches and further grow the line extensions NIVEA brand. under the NIVEA NIVEA Universe The “Euroland” countries will name. have a common currency. However, Each NIVEA sub-brand fulfils a specific skincare need and each country is very different, displaying a fascinating diversity of contributes to the NIVEA brand values. Each sub-brand plays a language, mentality and cultural background.They are very unique role which differentiates it from other NIVEA sub-brands similar and very different at the and contributes to the brand’s image as a skincare specialist. same time. Beiersdorf translates NIVEA is the mass-market brand which already today offers the local market knowledge about largest skincare assortment.The further development of current these similarities and differences and new sub-brands will build upon the NIVEA brand identity. into NIVEA growth.This has been Why does NIVEA need new sub-brands? The NIVEA brand has the key ingredient in the success always been closely linked to people.The NIVEA brand has of the NIVEA brand in Ireland. always adapted to current consumer needs and its success is Introduced in Ireland in 1922, the based on forward-looking development. NIVEA brand has been successfully Advertising for NIVEA has evolved over the years. Examples rejuvenated via NIVEA sub-brand from the various periods reflect the changing times. By virtue of launches, innovative brand extensions and modern advertising, sensitive transformation of current trends, the NIVEA brand has mainly in the last decade. the reputation today of being eternally young, of high quality and
DEVELOPMENT IN IRELAND
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Define NIVEA’s brand identity. NIVEA is a global brand. Discuss. Outline the advantages of effective branding. Explain how the packaging of NIVEA plays a central role in the marketing success of NIVEA. Discuss why NIVEA’S product lifecycle is different from many of its competitors. 2 3 4 5
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