*

ANALYSIS OF BRAND POSITIONING OF NIVEA

* Ayushi Singh
** Rohit Barua

ABSTRACT
Research focus: Analysis of Brand Positioning of Nivea

Brand Positioning has always been a necessary factor in consumer buying and decision
making. Organizations pay countless money on their branding to reach the consumer with
a positive brand image. Although consumers familiarize the product they need to buy,
brand positioning still remains a crucial factor to have an effect on loyalty and the
decision-making process. When consumers need to buy a product and a brand that will
pertain to their minds at the same time, it shows that the brand is strongly positioned in
the market. Consumers' contentment, brand name commitment, and consumers'
purchase intent is often altered if a product has strong brand positioning. This analysis is
conducted to observe what importance a consumer has in buying decisions with special
reference to NIVEA. The main purpose of this research is to spot the challenge in
achieving the ideal positioning for NIVEA having the ability to attain consistency among
the customers' belief for the brand (if it's credible or not) and its brand value. In this
research, descriptive research is conducted so as to get the qualitative data from the
target customer, and eventually, the data gathered is used for the analysis of the brand
positioning and the supporting marketing program. Additionally, an online survey is
conducted to know the most effective way to establish a fit between NIVEA’s brand image
and its extension. The results have shown that going beyond advertising is a resolution to
extend visibility that can be created by brand actions in supermarkets, city centers, and
shopping malls. Communication on Digital platforms, like Facebook and YouTube would
conjointly reach an even bigger crowd, particularly youth.

1
 INTRODUCTION

The survival and accomplishment of any sort of service rely on its Marketing. Marketing
involves getting the best product at a suitable cost, promoted using the correct
messages/media, and sold in the right place (the 4 Ps). Successful organizations around
the world occasionally perform market research so as to remain tuned to changing market
patterns and to keep up their competitive edge in the market. At any phase of the
business (Startup stage or a development stage), market research is indispensable for
understanding the significant highlights of the target audience to boost sales profits,
revenue, and the company’s success. Market research is the best way to identify the
brand positioning, help customer satisfaction, comprehend the elements that sway the
business, and raise business performance. Building up brand commitment amongst the
customers is the most basic and essential component desired by foundations to surpass
their rivals in undeniably reasonable conditions. Consequently, while creating advertising
techniques, foundations need to investigate the components that can deliver brand
commitment with fabulous care. Brand name loyalty significantly affects the customer’s
buying practices and customers are affected by a range of components while purchasing
products.

WHAT IS A BRAND?

A brand name is a name, sign, motto, or anything that is utilized to recognize and identify
a detailed item or service. The brand name is a buildup of psychological and valuable
affiliations. A strong brand name is a method of making the customers mindful of what the
business relies on and what its contributions are. The key parts that structure a brand's
name comprise a brand name's identity, brand name communication, (By logos and
trademarks), brand name acknowledgment, brand commitment, and different
branding (brand name monitoring) techniques. At the point when a customer knows
about a brand or favors it exceptionally to its competitors, this is when a firm has actually
reached a high level of brand name equity. A principle brand name is a brand name that is
associated with a theoretical idea, similar to bust cancer cells recognition or
environmentalism, rather than a detailed product, service, or organization. A product
brand name is a brand name associated with an asset. Brands generally consist of
numerous aspects, such as:

 Name: Words or words made use of to determine a firm, product, service, or

concept.

 Logo: The visual hallmark that identifies a brand.

 Graphics: The "dynamic bow" is a trademarked part of Coca-Cola's brand.

 Shapes: The distinctive shapes of the Coca-Cola bottle as well as of the

Volkswagen Beetle are trademarked aspects of those brands.

 Colors: The immediate acknowledgment consumers have when they see a brand.

 Appears: A one-of-a-kind tune or collection of notes can denote a brand. NBC's

chimes give a well-known instance.

 Fragrances: The rose-jasmine-musk fragrance of Chanel No. 5 is trademarked.

 Preferences: Kentucky Fried Chicken (KFC) has trademarked its unique dish of
eleven herbs as well as spices for a fried hen.

 Motions: Lamborghini has actually trademarked the upward activity of its car doors.

NIVEA AS A BRAND:

NIVEA® is one of the most perceived skin and beauty care brands in the world. NIVEA
crème was first introduced in 1911 and currently the brand extends to 14 product
varieties. It is a German brand promoted in India by JL Morrison. The brand has a history
of around 96 years and has derived its name from the Latin word 'Nivius' signifying "Snow
White". It is considered as the first to take the skincare market from the exclusive class to
the majority. It is positioned in the platform of "Gentle Care" and "Wellness" worldwide. It
also had a 15% market share in the global skin care products market in 1990 and is
currently a pioneer in skin creams and moisturizers in 28 nations and suntan products in
15 nations.
NIVEA was innovated by a discovery of Eucerit, an emulsifying agent, which made it
possible to build up the world's first steady oil-and-water based cream. It was once
believed to be the brand of local origin in numerous nations which helped it in turning into
the market leader. Between1991-2001, NIVEA posted double-digit development rates
each year. For the year 2011, the brand had generated incomes of over 2.5 billion. It is
the main and most significant brand of Beiersdorf, a skincare company from
Germany, and is the single biggest factor for a 4.4% expansion in the company's incomes.
NIVEA took its "Blue and White" colors as its brand component right off the 1924 and
since then it has its components of these colors embedded strongly in the minds of the
customers. Blue. In terms of brand image, NIVEA is more feminine, delicate, and caring.
In most of the TVC, a lady in the advertisement is portrayed as taking great care of her
and there is always a male valuation for that woman's beauty to confirm the product's
performance.

Core values of Nivea are as follows:

 Nivea is not using fats of animal in their products; the products are made of natural
ingredients.

 Nivea products meet consumer needs.

 Nivea is the mass-market brand that offers the largest skincare assortment.

 Nivea always keeps it's brand young, attractive, energetic, and sympathetic.

 Nivea has always been closely linked with the consumer.

Nivea is genuinely a universal product, and its products are equivalent all over the world.
It includes a wide range of body care, baby care, bath care, cosmetics, deodorants, face
care, hair care, hair styling, hand care, lip care, mature skincare, men’s care, and sun
care products. It has also been effective in making strong traits that consumer’s link with a
Nivea product and also with its blue tin and white capitals. The target market for NIVEA is
women aged 18-35 and the brand affiliation is with the following factors:

1. Care

2. Protection

3. Mildness

4. Gentleness

5. Trustworthy/reliable

6. Pure

7. Simple

8. Multipurpose/universal

9. For family

10. Heritage

Nivea has built up its image as authentic, naturally amicable, and offering great quality
products at an affordable cost. In terms of organizational culture, NIVEA totally depends
upon research and development as a base for making new products to keep up its
reputation of being unrivaled, high quality, and innovative. NIVEA additionally has an
online platform that invites brilliant and innovative personalities worldwide in assisting
with the development of new products. The platform is called Pearl finder. However,
Pearl finder is a closed online community, which requires membership.
 LITERATURE REVIEW

This extensive literature review has been conducted to gain a deeper understanding of
research about customers and their experience. The review clarifies and simplifies the
dominant dimension of a consumer when they make a purchasing decision, the
meaning of brand positioning, and the strategies of NIVEA as a successful brand.
Following this, the major theoretical gap related to understanding what and why
consumers do and do not purchase is explored especially with respect to the Mumbai city
with particular reference to the buying decision process of the customers. More
specifically, the study examined the interrelationships between qualities, brand image,
word of mouth and loyalty when it comes to buying NIVEA products.

Julia Pence (April 13, 2019) - NIVEA as a Brand

In this research, it was analyzed that by censuring people for having traits like darker skin
and frizzy hairdos and advancing slogans like "White is Purity", it is apparent that NIVEA
has a motive to impact the world's non-white population to acclimatize to western culture
and beauty standards. The brand's advertising strategies are unethical, as they fortify and
play on the instabilities of ethnic minorities, subconsciously develop standards of white
domination, and control the media to get away from the negative results of being glaringly
racist. In the present society, colorism and racism are as yet existing, conspicuous issues
for the total population of non-whites. As of now, globally influential brands, as NIVEA,
can unpretentiously sustain ideals of white supremacy in advertisements and pull
off it. This is a major social issue since it standardizes xenophobic mentalities that unjustly
name prevalence over Caucasians, creating sentiments of inferiority and self-esteem
issues in those with characteristics that don't concur with western beauty standards and
embracing bigot racist mentalities that are in a general sense imperfect.
Margarita Isoraite (September 25, 2015) – Analysis of Marketing Mix of
NIVEA
In this research, it was analyzed that NIVEA’s products include physical attributes
like how the product appeals to a consumer, packaging, and labeling, design, color, size,
shape, style, finish and beauty, price, services, safety to users as buyers are not
interested in what the product contains, but what the product satisfies them with.
NIVEA is known for its high-quality products that make it stand distinctive among other
cosmetic brands. The milk lotion product that it had launched before in the market exhibits
a model of its consistent improvement in quality. However, as people griped that the milk
lotion felt excessively sticky when applied to the body, NIVEA changed the product by
improving the quality, and instead of the milk lotion, it launched a body lotion, which was
non-sticky and was available for all skin types. This proves the fact that the brand really
works hard in order to improve the quality of the product to gain customer satisfaction and
brand loyalty.
Promotion is an important element in an organization's marketing mix, which is, used to
inform and persuade the market regarding the organization’s products and services. The
main goal of the promotion is to change the pattern of demand for the product in order to
have the same distance between the products and its customers. Whereas, advertising
consists of the activities involved in presenting to a group, oral/visual, openly sponsor
identified message regarding a product, service, or idea. An ad is scattered through at
least one media and is paid for by the recognized sponsor. NIVEA promotes its products
through different kinds of media that include television, newspapers, billboards,
magazines, brochures, and a number of stalls at popular malls and supermarkets.

Ahmed Akif Rahman (April 13, 2015) – Brand Positioning of NIVEA

In this research, it was analyzed that NIVEA had its presence in the men's grooming
market with the brand 'NIVEA for Men' in 2007. It rebranded its men's range with the new
brand name "NIVEA Men". It also roped in the Bollywood actor Arjun Rampal as its brand
ambassador. NIVEA is the only brand in the men's category to have a range of products
ranging from skincare to deodorants which also adds more punch to the brand's visibility
in the retail outlets. NIVEA MEN through a mixture of above-the-line and below-the-line
promotions promoted the new launches of its products. This helped create a stronger
brand affinity for NIVEA MEN among men.
In a case study published by The Times 100, NIVEA uncovered that its first marketing
strategy was to direct evaluation of the business, its brands, and products. A SWOT
(strengths, weaknesses, threats, and opportunities) analysis uncovered some astounding
realities, including that women are an important target market for NIVEA MEN since they
often purchase male grooming products for their partners or just help them with picking
which products to purchase. Armed with real data from the SWOT analysis, the integrated
marketers at NIVEA MEN moved on to the next stage of marketing planning: setting
objectives. Then the fun began, as the NIVEA MEN team advanced to the next stage of
marketing planning and began to devise and carry out integrated marketing tactics. NIVEA
MEN to assess the success of the NIVEA MEN re-launch in the UK adopted a range of
key performance indicators. NIVEA MEN is the market kingpin in many countries and is
consistently gaining additional market share. It consistently listened to customer feedback
and added products to its line and reformulating existing products. Through marketing
planning, NIVEA MEN now continues to take advantage of evolving male attitudes toward
using skincare products.
 RESEARCH
DESIGN

Market Research is concerned with the real and target assortment, investigation, and
assessment of data about explicit and practical aspects of marketing issues so as to help
the administration in making effective decisions. It is the quest for information through
targets and deliberate techniques for finding a solution to a problem.

Type of Research:

This study includes the method of descriptive research. Descriptive research is concerned
with estimating and evaluating the frequencies with which things happen or the degree of
correlation or relationship between different factors. It assists in estimating the market
size, market structure, and the conduct and perspectives of customers in the market
place.

Method of Data Collection:

The data from the raw details that are collected from the field are known as data. The
researcher needs to conclude whether to go for primary data or rely totally upon
secondary data or if the research needs to go for both primary and secondary data.

 Primary Data: Primary data is the data gathered through unique or direct research.
For instance, reviews and focus group discussions.

 Secondary Data: Secondary data is the data which has been gathered in the
past by another person. For instance, inquiring on the web, paper articles, and
company reports. In most of the inquiries relating to current problems, it is
recommended to use primary data than secondary data .
 Sampling Location:

The research is conducted in Mumbai city as a suitable area due to the diversity of
people.

Sampling Size:

The sampling size of this research is 100 of which 62 are men and 38 are women. The
majority of the respondents aged between 18 to 28 years are 80 people and aged 29 to
40 years are 20 people.

Scope of the study:

The focal point of this study is to analyze the perception of consumers on various factors
that influence brand positioning and its impact on brand loyalty and purchase intention
towards the selected consumer durables. This study is limited to the perceptions of
consumers in Mumbai. The scope of the study has been limited to certain buying
behavioral aspects of the purchase decision, namely factors influencing brand positioning,
consumers’ loyalty, purchase intention, and switching cost towards consumer durables.

Sampling Technique:

Sampling can be defined as the method of choosing a representative bit of the population
under Investigation for the research. In any research, if data is gathered distinctly from the
representative's part, we state that information is gathered by sampling. The
representative part is known as a sample. In this research, convenience sampling is used.

Data Collection Tool:

The data collection process in this research included tools like conclusive questionnaires
with the consumers and personal observations which helped me in getting as much as
relevant information as could be.

Data Analysis Method:

The data analysis methods used in this research are ANOVA and Chi-Square test.