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Case Study Presentation

Presented By:
Nikita Sanghvi

Source: Best Practice Cases in Branding, Kavin Lane Keller, 3rd Edition, 2008, Pearson
4-Oct-17 STEVENS B SCHOOL
Case Study Analysis

Background
Nivea is a brand of German company Beirsdorf; successful player in European market

Expanded into South & Latin America, Eastern Europe, & Asia

Earlier limited range of products: Nivea Crme, Milk, Soap & Sun

Extended the Nivea brand to a full range of Skin care & Personal care products

Challenge: Maintaining growth while preserving the established brand equity

In 1990s & 2000s followed a sub brand strategy where individual sub brands received
budget allocations for independent IMC

4-Oct-17 STEVENS B SCHOOL


4-Oct-17 STEVENS B SCHOOL
Case Study Analysis

Development Of The Nivea Brand: 1912-1970


Industrialization led to the emergence of mass markets and branded articles
Women began to appreciate greater degree of physical appearance
Nivea crme (Bright yellow tin) unique water-in-oil emulsion first to offer
Skin care
Protection
Reasonable price
Name came from Latin word: Nives- Snow; reflecting snow white colour of Nivea crme
The worlds first multi purpose, universal skin crme
Nivea crme introduced into German Market and subsequently throughout Europe(1912);
in the USA in 1922; & in South America and other parts of the world in 1926

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Case Study Analysis

Development Of The Nivea Brand: 1912-1970


Introduced over 48 other skin care products between 1911-1970

Maintained Mono-product philosophy

Blue tin & White lettering standardised in 1925

Other primary products body soap, powder, sun care lotion & oil

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Case Study Analysis

Nivea Crme Brand Identity & Values


Throughout Europe -
Unique Brand Identity: Caretaker of skin
Strong Association: Shared family experience
Care
Mildness
Reliability
Gentleness
Protection
High Quality
Feeling Good
Reasonably Priced
Synonyms: Care & Protection for the skin

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Case Study Analysis

Early Nivea Advertising


Began advertising in 1912
Means of strengthening consumer perceptions of a quality product
Simple, plain & informative ads
In 1910s & 1920s, advertised three products crme, soap & powder
Established the images of Nivea women as clean, fresh & natural

4-Oct-17 STEVENS B SCHOOL


4-Oct-17 STEVENS B SCHOOL
Case Study Analysis

Niveas First Competitive Challenge: The 1970s


Nivea held over 35% multi-purpose market in Europe
Henkel-Khasana launched Crme 21 (multi-purpose crme) in 1972
Focus on extensive advertising & self-service outlets to target mass market
Competition: Ponds , Unilever and P & G
BDF performed a study on Nivea brand image in Germany
High degree of goodwill
Represented reliability, quality & honesty
Older image, not viewed as young, dynamic, modern
BDF developed two-pronged strategy
Stabilize the strong historical market position of Nivea Crme
Transfer Nivea Crme goodwill to other product classes

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Case Study Analysis

Revitalizing Nivea Crme


Nivea, the Crme de la crme, 1971
Launched a series of 7 ads
Impressively defended NIVEA Crme's leading market position.
Objective: NIVEA Crme combines all aspects of skincare for the best in a single
product, clearly stating the competence, quality and honesty of NIVEA.
Only Me
It ran in Europe from 1973
Objective: Negate competitors claims
Positioning:
Nivea crme meets all skin care needs

4-Oct-17 STEVENS B SCHOOL


Case Study Analysis

Extending the Nivea Brand

4-Oct-17 STEVENS B SCHOOL


Case Study Analysis

Extending the Nivea Brand


Skin Care &
Skin Creme
Personal Care

Mono product philosophy:

Only one product promising consumers universal application in each product category

Second version of a particular product could be introduced only if it satisfied a unique

need not meet by the current products(s) in its category

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Case Study Analysis

Extending the Nivea Brand


Set of Guidelines:

Meet a basic need: clean & / or protect


Offer the special care / mildness benefit of Nivea Crme
Be simple & uncomplicated
Not to offer to solve only a specific problem
Maintain a leading position in terms of quality
Offer the product at a reasonable price so the consumer perceives a balanced cost-benefit
relationship
Offer the broadest possible distribution

4-Oct-17 STEVENS B SCHOOL


4-Oct-17 STEVENS B SCHOOL
Case Study Analysis

Understanding The Nivea Brand


In 1992, Nivea Crme accounted for only 22% of total Nivea brand sales

Concern:

Nivea brand image weakened

Multiple sub-brands independent of each other

Complicated, risky & confusing set of messages send to consumers

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Case Study Analysis

Understanding The Nivea Brand


Kunisch, former CEO of Cosmed, believed that in preparing to develop a new NIVEA
communications strategy, a formalised brand philosophy was necessary. Kunisch explained:
NIVEA is the most fascinating brand in the world, second only to Coca-Cola. The company had
done a tremendous job over the last 50 years to keep the NIVEA was a lack of conscientiousness
of what it meant to be a brand. In the good old days, BDF had a brand relationship that was
highly personalised. Only three people knew how it had all been doneone retired, one left the
company and one died. In addition, there were three advertising agencies that did not talk with
one another. I began with the basics and asked: What is NIVEA? The data was all there, the
feeling was there, but no one had put it on a piece of paper.

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Case Study Analysis

Developing Cosmeds Corporate Strategy


The brand philosophy centered on maintaining the association of universality for
NIVEA products.

Kunisch explained, We want to build on the image of the blue tin where we are number
one almost everywhere in Europe.

The role of the other sub-brands was to continue to cater to the specific skin care &
personal care needs of their target market segments and contribute back their particular
product class associations to reinforce and elaborate on the image of NIVEA as a skin care
specialist.

4-Oct-17 STEVENS B SCHOOL


4-Oct-17 STEVENS B SCHOOL
Case Study Analysis

Executing The Nivea Brand Philosophy


Cosmed worked with its advertising agency, TBWA to communicate a certain Niveaness in all
ads & promotions
Campaign should incorporate the brand values:
Timeless & ageless
Motherhood & a happy family
Honesty
Trustworthiness
Benefits of mildness & quality
Other guidelines:
Common emotions in all ads
A uniform Nivea logo
Consistent lettering & typeface
Real, inspirational people in the ads
Understable copy about the product

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Case Study Analysis

Expansion of Nivea Sub-Brands


By 2005, the NIVEA brand portfolio had grown from six product groups in 1993 to fifteen,

including:

Skin Care Personal Care


NIVEA Body, NIVEA Deo,
NIVEA Visage, NIVEA Beauty,
NIVEA for Men, NIVEA Hair Care,
NIVEA Sun, NIVEA Bath Care,
NIVEA Baby, NIVEA Intimate Care
NIVEA Crme,
NIVEA Vital,
NIVEA Soft,
NIVEA Hand,
NIVEA Lip

4-Oct-17 STEVENS B SCHOOL


4-Oct-17 STEVENS B SCHOOL
Case Study Analysis

Nivea Crme
Nivea Crme, Niveas first product, was introduced in 1911 & was the first stable water-in-
oil emulsion available in the world.
Original NIVEA Crme tins were pale yellow with NIVEA Crme in blue print in the
centre and a red and blue Art Nouveau border, but were changed in 1926 to the now-
familiar blue and white design. The tin simplicity and caring embodied by the brand.
Blue Harmony Campaign
In the 1990s the spirit of the times changed and honesty, return to family and the reality of
honest feelings became important values.
Launched in 1992, captured wonderful moments of human togetherness.
Included a series of television & print ads highlighting Nivea Crme
Showed a group of seagulls flying together through the air as circuit music played in the
background
Tagline: All that skin needs to live

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Case Study Analysis

Nivea Crme

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Case Study Analysis

Nivea Soft
Introduced in 1994
Lighter than the heavier, greasier feeling of Nivea Crme
Separate identity : to prevent cannibalization of Nivea Crme
Launched first in UK with a marketing strategy called fast marketing: 1
week intensive TV and print ads, sampling & promotions
In 2004, Launched in the USA with 2 sizes, extensive sampling targeting
women ages 18-49 yrs
2005: Launched Mini-tube for travelling

4-Oct-17 STEVENS B SCHOOL


Case Study Analysis

Nivea Visage
Introduced in 1982 as a face cleanser (mildness)

1987 1989 1991 1998 2005

Introduced a Changed the First anti-age Q10 used in Products with


beauty fluid packaging:from products Nivea Visage line Q10 Plus- to
(liquid plastic to glass Anti wrinkle reduce and
moisturizer) Altered the logo cream prevent wrinkles
for Nivea Visage
Moisturizing day
and night crme

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Case Study Analysis

Nivea Vital
Introduced in 1994 for women over the age of 50

1999 2000 2003


Redesigned its Cleansing and day Comfort cleansing Newer versions with
packaging and logo care creams, body Wipes with a fresh, special ingredients
lotion and intensive healthy glow & a like soy proteins and
care products pleasantly smooth primrose oil
feel

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Case Study Analysis

Nivea Body
Introduced in 1996
Nivea Milk: water- in oil emulsion but in liquid form for dry skin
Nivea Lotion: oil in-water emulsion; daily care of normal skin

Essential Performance Pleasure


Shaving, Exfoliating,
Moisturize, Soften, Relax, Refresh And Re-
Properties Night Time And Skin
Protect energize
Firming
Body Lotion Rice &
Products Oil,, Milk And Lotion Products Using Q10 Lotus, Ocean Breeze
Spray

Nivea Whitening
Body spray Shimmer lotion with Body firming lotion
Cream-> Asia Pacific
(moisturizing spray) reflective properties with Q10
region

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Case Study Analysis

Nivea For Men


1980 1986 1993 1998
After shave balsam Full line of mens skin care Sensitive line for men (skin Philishave Cool Skin
(alcoholic cleanser + products irritation) electric razor with Nivea
moisturizer) for Men shaving emulsion

2005 2000-2003 1999


3 product lines- Normal, Face scrubs, facemask, Q 10 formulation in face
Sensitive and Fresh toner and oil control and eye cream

4-Oct-17 STEVENS B SCHOOL


Case Study Analysis

Nivea Sun
Launched in 1930s but consciously in 1970s developed as an independent sub-
brand

1980s 1990s 1997 1999


Lotions in variety of extended to include a Line of moisturizing Nivea sun spray and
SPF factors and after line of sensitive skin sun cream co-branded Nivea sun kids sun
sun products with Nivea Visage spray

2004 2002 2000


Hair care product Nivea firm sun lotion Nivea sun after sun
with UV protection cream with Q10

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Case Study Analysis

Nivea Baby
Launched in 1970s but failed to meet sales target
Re-launched in 1996
Included shampoos, conditioners, bathing soaps, lotions, wipes, powders, cremes, oils, sun
protection
2005- Toddies (first all purpose wipe for babies)
Soft crme wipes wipes soaked in baby soft cream

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Case Study Analysis

Nivea Baby

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Case Study Analysis

Nivea Hand
Launched Nivea Hand Age Control Lotion in 1998

In 2000, Nivea Hand Anti Age Q10 Plus

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Case Study Analysis

Nivea Lip
First introduced in 1902 under the brand name Labello

Focused on

essentila care,

beauty care,

sophisticated care and

performance care

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4-Oct-17 STEVENS B SCHOOL
Case Study Analysis

Nivea Deo
In 1991,BDF extended presence in the personal care area with a line of deodorant products called
Nivea Deo
Marketed on the assurance of mildness and caring

1995 2000 2004 2005 2006

Nivea Deo Balsam Mild Care and Natural Nivea Fresh 24 hour Aqua Cool for men Nivea Pure for women
Sensitive Skin Freshness antiperspirant spray No white marks or
Nivea Deo for men Nivea Deo Wipes residue
underarm cleanser in
wipe form
Nivea Deo Compact
portable spray
deodorant

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Case Study Analysis

1999 2000
Nivea Beaute Time Color and Calcium

Nivea Beaute Balance Q10 makeup


Mascara Optimal 3 in
1
Nail polish

Second biggest brand launch after Q10


ingredient brand
First appearance in color cosmetics, in
1997
Consistency with Niveas core competency
of care 2004 2003
Caring: Slogan which said "Colors Lash Revolution Velvet Mat Makeup
that Care Mascara with
Packaging: Deep blue hues elastoflex brush
100 different SKUs
High Fashion Design
Halo Effect on overall brand
Product in high image cosmetics
category
Attracted new, younger consumers to 2005
the brand Flex and Strong with
Bamboo Nail polish

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Case Study Analysis

Nivea Beaute

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Case Study Analysis

Nivea Bath Care


Extended Nivea brand into skin-related personal care categories
Benefits
High quality, mild, caring benefits of Nivea brand

Added emotional benefit of pleasure

1993 1995 1997 1998


Nivea Shower Milk- Nivea Milk Bar Nivea Aroma Bath Nivea Bath Care
Nivea Body Milk Care Shampoo and Shower
lotion with Nivea Aroma therapy trend for Kids
Bath care Nivea Bath Care
Foam Bath for Kids

2005 2004 2002 2000


Flavors Shower massager Nivea Shower Oil Nivea Bath Care
Milk and Apricot with built in shower Product Of the Year Shower Gel
Body Wash gel in France Relaunched to project
Rice and Lotus line a feminine image
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Case Study Analysis

1996 1998
Nivea Hair Care Styling Line Better focus on Hold
3 hair sprays and 3 hair gels Ultra Strong Mousse

Nivea Hair Care Ultra Strong Hair Lacque Power shopping

Niveas first hair care product launched in


1991
Hair care not viewed as skin related product
line 2000 1999
Nivea Hair Care Liquid Gel Nivea Hair Care Shampoo for
Not aligned with Niveas key association as a Nivea Hair Care Aqua Gel men frequent use
skin care provider Wet look

Maintain strong link to Niveas core brand


image
Pflege-Shampoo
Pflege-Spulung
Early 2000s
Products emphasized mildness and care Color Shine shampoos, conditioners and
qualities treatments
Sun Hair Care products
After-Sun shampoo and conditioner
Sun Protection spray UV rays salt & chlorine
Nivea Locken for curly hair

4-Oct-17 STEVENS B SCHOOL


Case Study Analysis

Nivea Hair Care

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Case Study Analysis

Nivea Intimate Care


Launched in 2004, only in Italy

Series of feminine care wipes & lotions

Emphasized on natural ingredients

Brand Image: Softness & Care

4-Oct-17 STEVENS B SCHOOL


4-Oct-17 STEVENS B SCHOOL
Case Study Analysis

Nivea Branding Strategy


Cosmed worked with agencies FCB and TBWA to develop the marketing concepts and ad
executions.
In each market, they implemented perfect local execution with local agency affiliates The
models or language may change so as tht NIVEA brand appears local but the content remains
consistent.
As Norbert Krapp,NIVEAs Vice President of skin care, stated: Pictures travel, words dont.

Printed a booklet for internal use detailing its brand philosophy, called the Blue Bible.
Contained basic information about NIVEAs brand identity, vision, mission, success factors, and
the role of its sub-brands.
Provided guidelines for products, packaging, communication, promotion, public relations, direct
marketing, and pricing.
Norbert Krapp referred to the Blue Bible as the best [branding step] we did in recent years,
calling it the key anchor for all brand decisions.

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Case Study Analysis

Direct Marketing
For Nivea Vital & Nivea Visage

Largest campaign in France with database of more than 1 million

Development of Nivea magazine, in Germany, for the whole family specifically for men &

younger adults

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Case Study Analysis

Non-Traditional Marketing
The blue NIVEA beach ball
Distributed ball at European beaches each summer
First image campaign focusing on the NIVEA brand
rather than the individual products.
Blue Santa Claus giving Crme in Germany
Double-decker Nivea-branded blue promotional bus
in Russia
Mega Poster advertisement covering the outside of the
Kremlin
Nivea Club in Austria in 1995

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Case Study Analysis

Non-Traditional Marketing
Nivea Care Centre in South Africa

House of Nivea store in Hamburg, Germany, 2006

Workshops for body & soul in Germany, the UK & the USA

Partnered with hospitals & sponsors young mothers in maternity wards


Care packages containing Nivea products

Free product samples and informational brochures

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Case Study Analysis

Event Marketing
Each country had an event manager responsible for the events
Sponsored various organizations in Europe
Beach lifesavers(lifeguards)
Childrens sailing programs
Beach volleyball tour
School education programs for safe sunbathing
Branded double-decker bus
Travelled to concerts and other youth oriented events
Consumer could get a total hair & face makeover at the bus
Nivea Hand product free with each Nivea Hand Anti-Age Crme Q10
Nivea shops in large German department stores
Extensive point of sale display
Beauty advisor in-house to help customers

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Case Study Analysis

Nivea.com
Global website information about company and its history, products, markets,
beauty advice and games
Designed with the blue harmony theme
Customized websites with local content for each country
Dedicated site for each sub-brand
Specialized beauty and skin care tips
Viral marketing campaigns in early 2000s
Online sweepstakes, chat rooms and promotions
Bridget Jones: the Edge of Reason in 2004

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Case Study Analysis

Research & Development


Continuous product innovation
In 2004, BDF spent 38 million on R & D centre in Germany

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Case Study Analysis

New Market Rollout Guidelines


Nivea Creme Nivea Body Nivea Visage

Nivea Beaute
Nivea Visage must be
a market leader before Nivea Deo Nivea Soft
its launch

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Case Study Analysis

Geographic Growth Opportunities


Remained small player in the USA
In 2003, in $7 billion skin care market of the USA, share of Nivea = $180 million
In 2005, five sub brand in North America-
Nivea for Men
Nivea Crme
Nivea Body
Nivea Soft
Nivea Visage
Nivea Visage Q10 & Nivea Firming Lotion gaining success
Competitors: LOreal, Estee Lauder, Avon
Growing opportunities in emerging market

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4-Oct-17 STEVENS B SCHOOL
Case Study Analysis

Overall Brand Health


At the beginning of the 1990s, NIVEA was already a global brand with a wide range of
products catering to the full spectrum of consumer segments.
Throughout the decade, NIVEA nurtured its existing sub-brands and moved into
additional market segments by adding new sub-brands.
The companys sub-brand strategy yielded remarkable results: between 1990 and 2000,
every NIVEA sub-brand experienced sales growth and gained market share.
By 2005, NIVEA was a leading international skin care company and voted the most
trusted brand in Germany by Readers Digest from 20012004.
Nivea management decided that the sub-brand strategy was effective. The company did
continue, however, the Blue Harmony campaign for its flagship brand, Nivea Crme.
The company had to decide whether the sub-brand strategy would continue to work or if
the company should leverage the Nivea brand with an umbrella strategy
4-Oct-17 STEVENS B SCHOOL
4-Oct-17 STEVENS B SCHOOL
Case Study Analysis

Question No. 1
What is the brand image and sources of equity for the Nivea brand? Does it vary across

product classes? How would you characterize their brand hierarchy?

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Case Study Analysis

Kellers Brand Equity Model Possible Outcomes


Choosing Brand Elements
Brand Awareness Greater loyalty
Brand name Memorability
Logo Meaningfulness Less vulnerability to competitive
Recall
Symbol Appeal marketing actions and crises
Depth
Character Transferability
Recognition
Packaging Adaptability Larger margins
Slogan Protectability
Purchase
Developing Marketing Programs Breadth More elastic response to price
Consumption decreases
Product Tangible and intangible benefits
Price Value perceptions More inelastic response to price
Distribution channels Integratepush and pull Brand Associations increases
Communications Mix and match options
Relevance Greater trade cooperation and
Leverage of Secondary Associations Strong Consistency support

Company Desirable Increased marketing communication


Country of origin Favorable Deliverable efficiency and effectiveness
Channel of distribution
Other brands Point-of-parity Possible licensing opportunities
Endorser Unique Point-of-difference
Event More favorable brand extension
evaluations
Case Study Analysis

Brand Elements
Name:
The brand has derived its name from the Latin word
Nivius meaning "Snow White".

Logo:
The dainty art nouveau design of the original NIVEA tin was replaced by a much
simpler look: The blue tin with the word NIVEA in white celebrated its debut in 1925.
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

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Case Study Analysis

Brand Elements
Product: Tag Line
Nivea Crme - Nivea, The Crme De La Crme; Only Me ; Harmony In Blue; All That Skin Needs To Live
Nivea For Men Less Alcohol, More Care
Nivea Hand - Apparently You Can Tell A Womans Age By Her Hands Now You Can Lie A Little
Nivea Beaute - Colors That Care
Nivea Sun - Where Its Green, It Wont Be Red
Nivea Sun The New Nivea Sun Makes The Sun Gentle
Nivea Visage Anti-age - Science In All Confidence
Nivea Visage Get Fair, Stay Fair
Nivea Bath Care- Delightfully Gentle And Creamily Mild
Nivea Hair Entire Care For Frequently Washed Hair
Niveo Deo: Aqua & Cool- The Deo That Even Cares For Your Skin

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Case Study Analysis

Marketing Program
PRODUCT
Nivea has expanded significantly to offer a comprehensive choice of
moisturising, protection and care expertise in the face, body, hand, lip,
men's, sun and deodorant markets.
Skin CareNIVEA Body, NIVEA Visage, NIVEA for Men, NIVEA Sun,
NIVEA Baby, NIVEA Crme, NIVEA Vital, NIVEA Soft, NIVEA Hand, and
NIVEA Lip.
Personal CareNIVEA Deo, NIVEA Beauty, NIVEA Hair Care, NIVEA Bath
Care, and NIVEA Intimate Care.

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Case Study Analysis

Marketing Program
PRICING
Consumer price perceptions

Reasonable price so that consumer perceives a balanced cost-benefit relationship

PLACE
Indirect channels

Selling through wholesalers or distributors, and retailers or dealers

Pull strategy through advertising

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Case Study Analysis

Marketing Program
PROMOTION
In each market, they implemented perfect local execution with local agency affiliates
Simple, plain & informative ads
Printed a booklet for internal use detailing its brand philosophy, called the Blue Bible.
Direct Marketing
Non-Traditional Marketing
Event Marketing
Nivea.com
Harmony in Blue for Nivea Crme

4-Oct-17 STEVENS B SCHOOL


Secondary Association
Event :
Company : Beirsdorf , BDF Sponsored various organizations in Europe
Beach lifesavers(lifeguards)
Childrens sailing programs
Country of origin : Germany Beach volleyball tour
School education programs for safe sunbathing
Channel of distribution : Indirect Channels Branded double-decker bus
Travelled to concerts and other youth oriented
events
Endorser : Real, inspirational Consumer could get a total hair & face
makeover at the bus
Nivea Hand product free with each Nivea
people Hand Anti-Age Crme Q10
Nivea shops in large German department
stores
Extensive point of sale display
Beauty advisor in-house to help customers

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Case Study Analysis

Brand Awareness
Nivea is the world's largest skincare brand with a strong international presence in around
170 countries and an enviable reputation.
Most trusted brand in Germany, 2001-2004, Readers Digest

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Case Study Analysis

CBBE Pyramid

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Case Study Analysis

CBBE Pyramid
Resonance: Attachment, Community

Judgments: Credibility, Superiority Feelings: Safe, Warmth, Pleasure,


Satisfied

Performance: Imagery: Heritage, For family, Universal


Quality, Mild & Gentle, Caring & protective, applications, Blue Harmony
Pure

Salience:
Various products and purposes,
Blue tin
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Case Study Analysis

Brand Association
Strong Favourable Unique
High And Consistent Quality Caring & Protection A Complete Caretaker Of Skin

Reliability Pleasant Fragrance A Universal, Unisex Acceptance

Blue Colour Tin / White Logo Gentleness Special Product Range For Men

Luxurious Brand Mildness/ Smooth World Known Brand

Heritage Fair Price

Trust

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Case Study Analysis

Brand Hierarchy
Skin Care Personal Care
NIVEA Body, NIVEA Deo,
NIVEA Visage, NIVEA Beauty,
NIVEA for Men, NIVEA Hair Care,
NIVEA Sun, NIVEA Bath Care,
NIVEA Baby, NIVEA Intimate Care
NIVEA Crme,
NIVEA Vital,
NIVEA Soft,
NIVEA Hand,
NIVEA Lip

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Case Study Analysis

Question No. 2
What are the pros and cons of the sub-brand strategy? Should Nivea run a corporate

brand or umbrella ad for all of their products? What is the role of the Nivea Crme

advertising? Should it be changed?

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Case Study Analysis

Pros And Cons Of The Sub-brand Strategy PROS


Each sub-brand had its own personality and developed its
own set of brand associations that were consistent with,
but independent of, the Nivea crme core brand image
Continuity + Innovation: Continue to nurture core Nivea
associations while widening its applicability
Separate budget for each sub-brand
To take care of specific skin care and personal care needs
of their target market segments
Reinforce and elaborate on the image of Nivea as a skin
care specialist
Benefitted from the Halo effect of the Nivea name
Trust, care, mildness, fair price

CONS
Concern that Nivea Crme brand image had been
weakened through all the product introductions
Complicated, risky &send a confusing set of
messages about what the Nivea represented
Cost of developing several new brands in a limited
time period would be considerable
4-Oct-17 STEVENS B SCHOOL
Case Study Analysis

Role Of The Nivea Crme Advertising


Cosmed worked with its advertising agency, TBWA to communicate a certain Niveaness in all ads & promotions
Campaign should incorporate the brand values:
Timeless & ageless
Motherhood & a happy family
Honesty
Trustworthiness
Benefits of mildness & quality
Other guidelines:
Common emotions in all ads
A uniform Nivea logo
Consistent lettering & typeface
Real, inspirational people in the ads
Understable copy about the product

Blue Harmony , campaign


Nivea sub-brands adopted the design elements (block and cursive combinations) of the Nivea crme ads, & contained
Nivea message of quality & care

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Case Study Analysis

Role Of The Nivea Crme Advertising


No, in my opinion the advertisement should not be changed:

Nivea, still the important image carrier

Core brand of the company; synonymous with blue tin & white lettering

Automatic transferring goodwill to the other product classes

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Case Study Analysis

Question No. 3
Discuss the risks and benefits of Niveas brand extension into new product categories and

customers. How have Niveas executives managed this extension? Have they missed

opportunities such as perfume or foot care?

4-Oct-17 STEVENS B SCHOOL


Case Study Analysis

Benefits of Extensions
Long term objective: (Skin crme-> skin care)

Company Philosophy: To respond to market trends & innovate through R & D

Facilitate new product acceptance

Widening applicability & enhancing meanings

Reduce risk perceived by customers (Halo effect)

Increase the probability of gaining distribution and trial

Expand the market share


Case Study Analysis

Risks of Extensions
Can confuse/ frustrate consumers (complicated, risky)

Can fail and hurt the parent brand image (Nivea crme)

Can succeed but cannibalize sales of parent brand

Can succeed but diminish identification with any one category

Can dilute brand meaning


Case Study Analysis

Extending the Nivea Brand


Skin Care &
Skin Creme
Personal Care

Mono product philosophy:

Only one product promising consumers universal application in each product category

Second version of a particular product could be introduced only if it satisfied a unique

need not meet by the current product(s) in its category

4-Oct-17 STEVENS B SCHOOL


Case Study Analysis

Extending the Nivea Brand


Set of Guidelines:

Meet a basic need: clean & / or protect


Offer the special care / mildness benefit of Nivea Crme
Be simple & uncomplicated
Not to offer to solve only a specific problem
Maintain a leading position in terms of quality
Offer the product at a reasonable price so the consumer perceives a balanced cost-benefit
relationship
Offer the broadest possible distribution

4-Oct-17 STEVENS B SCHOOL


Case Study Analysis

Extending the Nivea Brand


Has always responded to consumer expectations & market trends.
Believed in continuity + innovation; new & improved product in each category
Gradual innovation
Still not missed the opportunities of perfume or foot care but have a competitive edge of
the large market share & trusted brand so it can go for the big move.

4-Oct-17 STEVENS B SCHOOL


Case Study Analysis

Question No. 4
Should Nivea pursue a Mens grooming category? Does the company risk alienating its

core customer base of families and women or is this a natural next brand extension?

4-Oct-17 STEVENS B SCHOOL


Case Study Analysis

Nivea for Men


Nivea for Men line included
Two new fairness products - a Whitening Moisturizer and Multi-White Whitening
Facial Foam.
Deodorant Aqua Cool,
Multi Protecting Facial Foam,
Moisturizing Shaving Foam,
Shaving Gel and
Cooling Gel Moisturiser, a light hydro gel, with Iso Magnesium and Mint Extracts
Less alcohol, more care

4-Oct-17 STEVENS B SCHOOL


Case Study Analysis

Nivea for Men


Nivea should pursue the men grooming category

All sub brand are catering to some specific need, so it wont hurt the companys brand

image of unisex

It is a result of innovation: a complete care for mens skin for the metrosexual men

Mens skin care market is growing now & Nivea took the advantage of first move & its

image of quality & care .

4-Oct-17 STEVENS B SCHOOL


Case Study Analysis

Question No. 5
What would you do now? What recommendations would you make to Nivea concerning

next steps in their marketing program?

4-Oct-17 STEVENS B SCHOOL


Case Study Analysis

Recommendations
Though Nivea is growing in emerging market, it has a tough competition with other skin
care brands.
To become a global brand, the product adaptation has to be done
For this, no sacrificing of the brand image of quality & care
Adapt as per the consumer profile of the nation
Pricing: For emerging market, the price needs to be fine-tuned

4-Oct-17 STEVENS B SCHOOL


THANK YOU

4-Oct-17 STEVENS B SCHOOL