M a r ke ti n g A n a l y s i s o f N I V E A

GROUP 5
Shashwat Yadav, Utkarsh Mishra, Vicky Parmar, Vaibhav Arora, Vrinda Maheshwari, Yogesh Sharma
INTRODUCTION:
History of Nivea

More than 100-year history, the box has gone through

numerous designs. The famous eye-catching blue that is
now inextricably linked with the brand, is one of the very
rare color marks protected worldwide.
  Nivea is brand of German company founded by
Beiersdorf in 1882

 In 1914 company generated 42% of sales outside

of Germany and doing business in 34 countries

NIVEA is the  Positioning strategy was switched to keep up with

first brand and the social changes of that time
most important
 In 1963 introduces worlds first Liquid cream
brand of
Beiersdorf.  In 1980 introduced first after shave

 By 1990 Nivea was worlds leading skin care brand

with a standardized global brand policy

 Around 30 percent of women all over the world

use Nivea products
CORE VALUES

CARE: Responsibility towards colleagues, consumers, brands, society and environment.

SIMPLICITY: Consistency, make decisions quickly and focus on what’s essential.

TRUST: Focus and keep there promises and treat others with respect.

COURAGE: Committed to bold objectives, take initiative, learn from their mistakes and see change as an
opportunity.
Umbrella Branding
Nivea is the Queen of mega brand franchises. It’s parent
company, Beiersdorf, had built Nivea into the worlds
number one personal care brand.

• Pros
– It generates an exponential interaction with the brand.
– They are all designed to be complementary, rather
than repetitive i.e. each segment target particular
customer need.

• Cons
– The core brands has to be strong if it wants to survive
in the market.
– The associated brands depends upon the image of
main brand.
RETAIL LANDSCAPE
Market Share in Skin Care Industry
Others
L'Oreal India
3%
10%
Oriflame
6%
Amway
9%
Hindustan Uniliver
56%

2018-19,statistica Nivea
16%

 Skincare, as a market segment, is growing faster than any

other part of the beauty industry.
Hindustan Uniliver Nivea Amway
 Nivea comes after HUL with 16% of market share in the Oriflame L'Oreal India Others
Indian market.
2018-19,
statistica
Stefan Heidenreich, Beiersdorf ’s Chief Executive

“We have become the market leader in a couple of

sectors, against the mighty Hindustan Unilever
(HUL). So, we are quite pleased. We have, for the
first time last year, crossed $100 million in India and
we are profitable,”
Growth of Nivea
 The given graph represent the growth
of the company from 2016-2020.
 Nivea stats for the Indian market a
growth of 25% at a CAGR(compounded
annual growth rate) as many new
products have been launched by the
company.
 The market size in which nivea
operates is pegged at about 13000
crore, growing at about 10-12%
annually in which Nivea holds the
second position after Hul.

Data taken from statistica, 2020

FACE BODY

NIVEA Brand
“If the brand were to come alive as a person what would it be like?”

SUN MEN
NIVEA as a person

Values: what people can expect from Essence

the brand at every touch point “Elegant simplicity with a human touch”
• RELIABLE
• HONEST
• HUMAN

NIVEA
Principles
“visualized as a SELF-
• Reduce to the essential
• Express care first and foremost
CONFIDENT person and a
• Clarity with signal colors of NATURAL BEAUTY”
blue and white
Product Portfolio

FACE CARE BABY CARE

MEN CARE
BODY CARE
CARE

HAND CARE BATH CARE

HAIR CARE
 NIVEA Concept and Brand Value
“Nivea Cares for
Your Skin ”
encapsulates
Nivea's brand
CORE PRODUCT AUGMENTED PRODUCT
values.
• Nivea’s signature
• Products are the ‘Blue and White’ :
The emotional backbone for Nivea. helps identify and
values associated • Extensive market distinguish the
haven’t changed research helps brand easily.
understand people’s EXPECTED PRODUCT • Creates high brand
much in the last wants from Nivea. recognition, trust
• Nivea is dedicated to
108 years. • Directly talking to protecting the skin of the and reliability.
customers or entire family.
through product • Nivea is also stylish,
testing. contemporary and
fashion conscious.
5 Stage Decision making process
In second step the consumers do
research through friends and
family. Nivea has taken care of us
for over 100 years, so it has
strong word of mouth marketing.
Then they move towards online
& offline source.
After these research the
consumer selects a particular
brand, product and buys it as
per his decision. Price &
availability are major factor
which trigger purchase
decision

Need Information Evaluating Purchase Post

Recognition Research Alternatives Decision Purchase
Behavior
Add Text

In present scenario skin care Consumers generally Very important factor as

industry has grown
tremendously as people of
all ages feel the need to take
care of their skin due to
multiple reasons.
• Young generation needs
protection from sweat.
• Older people from dry skin
• Some require cream for
UV protection
make comparisons with rise & fall of any product
players in same industry. depends on this. If the
In our case Ponds & customer is satisfied, he
Vaseline are the major will buy the product
competitors of Nivea. again & recommend it
Features, Characteristics to others. Nivea
& benefits of different maintains a positive
products are compared. post purchase behavior
by delivering a top
quality product in
market.
Factors Affecting Consumer Behavior
PRICE BRAND RELIABILIT & TRUST AVAILABILITY CULTURAL INFLUENCE
• Indian market is very RECOGNITION • All products are made • Very strong supply • Has been able to develop
much price sensitive. • It’s a global brand up of recyclable chain. strong emotion in our
• Nivea offers product in under Beiersdorf plastic. • Availability of society over ages.
every range from low to • Most trusted skin • 98% of the ingredients product is high even • No animal testing takes
high budget cosmetic care brand in many used are natural in remote places. place which develops a
items. countries • In process of • Strong online positive emotion as per
• Best quality product for • Hires famous removing alcohol & marketing and our culture.
low income group personalities as adding more natural channel partners. • Includes ingredients which
offering wide varieties. Brand ambassadors. elements. • It collaborated with promote fair complexion
(Taapsee Pannu & Swiggy & Zomato for in Asian markets.
Ranvir singh) delivery of hygiene
products
Behaviors Study
 Threat of New Entry
01 • MEDIUM
• Huge capital investment required for manufacturing, R&D setup
• People trust tried & tested brands

Supplier Power
02 • LOW
• Large number of raw material supplier
• Backward vertical integration is possible

Porter’s 03
Threat of Substitution
• VERY HIGH

Five Forces • Cosmetic industry is very competitive with presence of high level
of innovation
• Consumers may switch to other brands such as Loreal, Ponds

Buyer Power
04 • HIGH
• India is a price sensitive market
• Manufacturers can be forced to decrease price through low
purchasing

Competitive Rivalry
05 • HIGH
• HUL, P&G have high market share
• Large number of players with diversity of products.
Competitive Landscape
Competitor's Share in Body Care Market
Nivea Emami HUL(Ponds, Vaseline, Dove etc.) Johnson & Johnsons Ayur Others

22% 9%
2%

2%

20% 45% Data as of

2019, statistica
 Direct Competitors
POND’s
Indirect Competitors 01 Has affordable pricing strategy and strong distribution and is one
of the top Nivea competitors.

DOVE
02 It has a mix of both soap and cream thereby providing a cleansing and
smoothing product.

NIVEA has 5
prominent VASELINE
competitors in Indian 03 Vaseline and Nivea share almost similar product portfolios and
have strong distribution.
market:
JOHNSON & JOHNSON
04 This brand has a strong presence within each category of product.
It is a most trusted brand by many medical practitioners.

LAKME
05 Due to the great product line and its visibility, Lakme is a top Nivea
competitor with Kareena Kapoor Khan it’s brand ambassador.
Competitors Analysis: POND’S
STRENGTHS
• Ponds skin cream range includes
Pond’s Age Miracle, Flawless
White, Perfect Results and
White Beauty.
• Excellent distribution channels
of Unilever.
OPPORTUNITIES
• Expansion of skin care
industry into semi-urban and
rural areas of the country.
• Targeting audience from all
the age groups.
WEAKNESSES Positioning: POND’s is No.1 women skin care brand
Market Share: 13.3%
• Most products are having limited
packaging sizes.
USP: Pond’s, has
• Intense competition in the cosmetics been listening to
industry from many international women’s needs and
brands. desires for 150 years
and delivering new
products customized
to their skincare
THREATS needs
• High price for the products can limit
potential consumers. Brand Endorsement:
Kiara Advani –
• Availability of cheaper products High Influence on
offered by other brands in the women within age
market. group 18- 32;
An ideal celebrity
endorsement
SWOT Analysis of NIVEA
Strengths of NIVEA - Internal Strategic Factors: Positioning: Nivea is No.2 women skin care brand
• Strong Brand Portfolio Market Share: 9.1%
• Good Returns on Capital Expenditure
• Reliable Suppliers

Weakness of NIVEA - Internal Strategic Factors

• Limited success outside core business
S
• The profitability ratio and Net Contribution % of Nivea are below the industry average.
• There are gaps in the product range sold by the company.

Opportunities for NIVEA - External Strategic Factors

W
• New customers from online channel
SWOT
• Opening up of new markets
• Differentiated Pricing Strategy with the help of new technology
O
Threats NIVEA Facing - External Strategic Factors
• Changing consumer buying behavior from online channel
• Intense competition
• Minimal Growth in main market.
T
STP
Factors to consider-
 Income Conscious
 Self image and Benefit buyer
 Intelligent buyer

Positioning
Segmentation

Targeting
Divide market into-
 Demographic To position your
 Geographic product for niche
 Psychographic segment.
 behavioral
Segmentation
DEMOGRAPHIC
• The main focus of the Nivea brand is middle, upper middle and upper class.
• Nivea is a premium product.
• The product range is from children to adults to old people.

GEOGRAPHIC
• Nivea is Personal skin care product and is mostly an Urban Care Product.
• i.e. mostly used in big urban cities as a( major focus ).
• And small towns and Suburbs ( minor focus ).

PSYCHOGRAPHIC AND BEHAVIOURAL

• Lifestyle looking and feeling good by using the product. e.g. non-greasy, soft,
fresh.
• Looks after the personal and skincare needs of people e.g. Advertisement: “have
fun with your kids, Crème with your kids”, “Maa ka Pyar Nivea”, Real Madrid
• People watching Ads and buying behavior.( I will buy this) due to emotional
connection
 Targeting
Age 18-25 26-32 33 & above
Income Low Medium High
Lifestyle Medium High High
Price High Medium low
Sensitive

High Self image Buyer or Benefit Buyer

• Image centric
• Premium Brands
• The Positive effects of the Product on the skin

Intelligent Buyer
• Quality by checking Ingredients
• Savings (Price)
• Functions (multi purpose)
Positioning

Price High self Intelligent How do we want to position

conscious image buyer buyer Nivea face cream in the
consumer’s mind?
buyer
The main positioning would be
 Multipurpose  Containing  dermatologically that the cream prevents dust and
antioxidants tested keeps your skin clean and shining;
 In the budget limit sun protection  The creams shall
 Hydration and  Smoothening have variants for dry and oily skin
 Effective for any protection agent, keeps your and hence shall be effective for all
kind of skin. skin soft kinds of skin
 moisturizes the
skin.  Prevents dust,
keeps your face
clean and shining;
sun protection .
Price and Quality Positioning
High Quality

OLAY
NIVEA • Nivea Creme, 100ml – Rs 134
THE BODY SHOP • Pond’s Cold Cream,100ml – Rs 105
POND’S
DOVE • Dove cream, 100ml – Rs 149

High Price

Low Price

CLEAN & CLEAR

FAIR & LOVELY

Low Quality
 Nivea Core
Marketing Strategy
Nivea continuously changes its products to make it in with its
core values
• Nivea is known for its first mover image.
• In 1911, Nivea crème was the first one bring
stable oil in water emulsion moisturizing cream
• In 2015 they launched a Deodorizer specially for
the Indian masses
Standardised global brand policy while keeping local
sentiment in check.
• Nivea products share the same logo, appearance and
packaging world-wide.
• It sells its products to retailers at a single set price and has
adopted a constant pricing policy.
• For a Product or Brand to be accepted by the masses the
company needs understand the culture and trend of the
region.
• E.g. Nivea understood Asian Countries, facial products sold
much better since they contained ingredients promoting a
fair complexion. Also, in Middle East, local fragrances like
musk are used.
• nb
Always focuses on research and Development for new
products that cater the growing needs
• Nivea improved is products to make them more
effective and more consumer-friendly.
• They changed the formula of some products.
E.g. it removed alcohol from one product and
used natural sea salts and minerals in others.
Marketing Mix
NIVEA developed a uniform international marketing concept with the goal to become the global market leader in skin
care products. NIVEA developed a uniform international marketing concept with the goal to become the global market
leader in skin care products.

Good quality at Product reach

reasonable prices

Product Strategy Pricing Strategy Promotional Strategy Place Strategy

Different Product line To create awareness

 Product

• In every nook and corner of

the world, NIVEA products
Marketing to Millennial girls
stand for high quality and
gentle body care.
How it the top five skincare brands in
India?
• It is a brand that is not only
associated with trust and
Nivea Marketing to new mothers
for their young ones •
•
Extensive Research
Diversified product line
security, but also with • High Quality Products
satisfaction.

Marketed towards men

 Pricing
Reasonable pricing for building cost-
benefit relationship with customer.
Penetration of Price
Price skimming strategy for
innovative product.
Using cost based price
NIVEA product is guaranteed by its good product quality and the reasonable
prices. The products satisfy the customers’ expectations because they almost
stay the same over the year’s same quality and price level as well as brand
communication elements.
Initial low price to ensure that there is a high volume of purchases and market
share is quickly won. This strategy encourages consumers to develop a habit of
buying.
Price skimming of initial high price for a unique product encouraging those
who want to be 'first to buy' to pay a premium price. This strategy helps a
business to gain maximum revenue before a competitor’s product reaches the
market.
Nivea take care of its customers that they are getting more value than what
they are paying. When they re launch their product Nivea Visage, they brought
it at higher prices because of new formula and packaging.
Promotion
Digital
Digital Digital can reach a large number of people and Nivea takes full advantage of that. The company
has launched
many online magazines and campaigns like FYI (magazine) and #ShareTheCare movement.

PR
PR
Sponsoring some events like sports, for example Nivea was the official sponsor partner for
London Olympics 2012 specifically targeting the male Olympic Games. It is also sponsoring
Liverpool Football Club.

Brand Ambassador
Brand Ambassador Portraying a strong and consistent brand identity differentiates the product and helps consumers
to understand and trust the product. And this can be done by brand ambassador whose aura and
moral values coincide with the brand

Event Event
Nivea also uses events or trade fairs help to launch a product to a wide audience
Place
Place Retail
Nivea sells its commodities mostly via its retail outlets, spread across most parts
of the country. Products are easily available in grocery stores, discount outlets,
A Global brand like Nivea convenience stores, hypermarket, and supermarkets.
has spread its presence in
more than 100 counties.
The Company has its Distribution
headquarter in Hamburg. Nivea has a centralized distribution point system. Its products arrive at the retail
outlets from the different plants via contract vehicles. The company does not
Due to its strong interact with small retailers directly but takes the help wholesalers for the same

distribution channel their

products can reach
consumer markets quickly E-commerce
and efficiently. Products from this highly-acclaimed brand are also available online. Nivea does
not sell products directly via its website as it is not cost-efficient for the company
to deal with small orders. Instead, it has taken help of other retailers to sell its
own products through their online stores.
Value Chain Analysis of NIVEA
Primary Value Chain Activities
Inbound Outbound Market &
Logistics Operation Logistics Sales Services

Handling &
Sourcing Producing Packing Delivering Servicing

Support Activities

Technology Human Firm

Procurement
Development Resources Infrastructure

Greatest Impact on Greatest Influence

Reliability through Brands
NIVEA BCG MATRIX
Nivea must continuously evaluate its product line by assessing
their growth potential and share in the market. The products
Expand Invest
can be classified into the following categories:

• Nivea Soft & Nivea Visage Cream- The products with high
growth and high market share are classified as stars.

• Nivea Men Cream- Products with high market growth but

low share are classified as question marks.

• Nivea Crème- Products with low growth but high market

Harvest Divest share are cash cows that need to be milked for continuous
good performance in the market with low growth and
limited opportunities.

• Nivea Baby Cream- Lastly, products with low growth and

low market share are dogs’.
Product Life Cycle
Successful products progress through four
basic stages:

INTRODUCTION: Limited Product Awareness and

1
Knowledge, Limited Demand

GROWTH: NIVEA MEN gain market share, Operation

2 Efficiencies, Product Improvement Work, Expanding
Markets, Expanded Distribution, Word of mouth

MATURITY: NIVEA CRÈME low growth, strong competition,

3 maximize profit, maximize sales, price war with
competitors, customer loyalty achieved

DECLINE: arrest the market share decline, search for new

4 opportunities, evaluate customer complaint
FLAWS & SUGGESTIONS

• Repositioning needed to change brand image: This is a double edged sword. On one side Nivea has a fantastic
advantage by covering a niche which is profitable – Cold cream. It is doing so for the men’s cream. But the overall
brand is strongly skewed towards cold creams.

• Regular issues in Marketing – Nivea has faced several Racial issues in their marketing as well as huge fines
imposed due to wrong marketing claims made. Such wrong marketing issues make a dent on the brand and will
affect the brand if repeated.

• No separate outlet for Men- The men products are usually sold with the women products. This restricts buyers
who are hesitant to go into the female shop and buy the products.

• No sampling offered- They can target new customer bases. For example Giving samples of sun cream at the
beaches can help gain visibility to the products which are not popular.
!! IT HELPS PROTECT YOUR SKIN !!
Thank you 