NIVEA : MANAGING A BRAND PORTFOLIO

Presented by :

SATISH MENON SAURABH KUMAR SHAILENDRA SINGH SUNIL KINI

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Presentation Flow
Brief Overview of Case Development of Nivea as a brand ( 1912 to 1993)

Discussion on Q.1
Niveas brand image Niveas sources of equity Variation of brand image and equity across product class

Discussion on Q.2
Pros and cons of various options with Biersdorf Corporate branding Ad vs Umbrella Ad Role of Nivea cream advertising

Discussion on Q.3
Recommendations for Niveas future marketing program.

Case Overview

Biersdorf (BDF) is the manufacturer of NIVEA skin care and personal care products.

The Nivea brand is known worldwide but its a leading mass market brand in Europe.

NIVEA Creme - the first product introduced has over the years successfully extended
he Nivea brand to a full range of skin and personal care products.

Cosmed div. sought to strategies for the future keeping the market needs and heritage o f the Nivea brand in mind.

Beiersdorf at a Glance

Beiersdorf Branded consumer goods company Founded 1882 in Hamburg Global footprint with more than 130 affiliates 16,800 Employees worldwide 6.1 bn sales in 2006 Sales per Region Germany Europe w/o Germany Americas Africa / Asia / Australia
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25 % 48 % 15 % 12 %

Development of the Nivea brand

1912 : NIVEA Creme introduced in the German market by Biersdorf.

1912-1970 : Range of products - introduced and expanded under Nivea brand - maintaining a mono-product philosophy.
NIVEA Creme remained the companys premier product

1970-1993 : Extended the Nivea brand from the limited range of products - Nivea crme,Milk,Soap and Sun to a full range of skin care and personal care products 1993- 2006: At Beiersdorf, now one goal: To meet consumers' skin and beauty care needs. Every day. Throughout the world.

la prairie Luxury Colour Palette

Silver Rain brilliance

Toddler

Product Line NIVEA Visage DNAge Cell Renewal First Anti-Age Nivea Visage Face Care formulated for skin cell renewal Reduces DNA damage in the skin Patent pending formulas with combination of Folic Acid and Creatine

Product Line

Product Line

NIVEA body Anti-Age Treatment

First Anti-Age Nivea Body Care for mature skin New formula with skins own Creatine Proven to reduce sagginess, wrinkles and dryness Opening up a new high potential segment for NIVEA body

Product Line

Product Line

NIVEA body Good-bye Cellulite Only three months after launch, Attained No 1 market position among all body care products in France, Belgium, Italy, Portugal and Turkey

Product Line

Product Line

NIVEA Hair Care New Assortment Further exploit huge market potential New shape and design to attract additional consumers New caring formulas to prove unique Beauty expertise Even stronger communication of consumer benefits

Q1
A. What is the brand image and sources of brand equity for the Nivea brand ?

B. Does it vary across product class ?

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Niveas brand image

Rich set of brand associations (Strength) Care, mildness, reliability,gentleness,protection,high quality, feeling good & reasonably priced The Nivea woman- reflected in Ads as clean,fresh and natural Used by entire family (Favourability)

A universal,unisex acceptance satisfying multiple needs

Strongly associated with shared family experiences: Mother and child relationships, family vacations on the beach Caretaker of skin (Uniqueness) Caring and protective-Sun lotion ,Mens range .

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Niveas sources of equity

NIVEA Crme s unique water in oil emulsion - snow-white in color

Nivea name from Latin word- nives - snow Nivea products - blue color background with white lettering - extended from the NIVEA Crme tin Niveas core brand associations mildness and caring

- Correlated with the key skin needs of consumers

- Enjoyed high degree of confidence & goodwill - Reliability,quality and honesty. Niveas brand associations fit with the values of the consumer - Desire for fairness, authenticity, openness and belonging Nivea name - synonymous with skin care & protection

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Variation of brand image and equity acro ss product class

Nivea - Exploited the strength of NIVEA Crme brand associations and
transferred it to other product classes

New products
- Positioned with a promise to contain the core brand associations of NIVEA Crme - With some new benefit provided by the product

1992 : Nivea crme - largest contributor to total revenues(22%)

The newer product lines had each made significant contributions of their own 1996-2006- Diversified and consolidated

-Successfully carried brand associations of Nivea crme

- Global presence - Established Nivea as a skin care brand - Rather than only a skin cream brand.
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Brand associations of core brand extend ed across the product class

Nivea Sun the new Nivea Sun makes the sun gentle

Nivea For Men- Less alcohol,more care

Nivea Shower and Bath-Delightfully Gentle and creamily mild

Nivea Hair - Entire care for frequently washed hair

Niveo Deo-The deo that even cares for your skin

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Q2
What are the pros and cons of the various options available to Biersdorf management? Should they run a corporate brand ad or umbrella a d for all their products? What is the role of Nivea skin cream ad? Should it be changed?

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Various Options Available:

s Corporate Brand Biersdorf as a corporate brand for all product Family Brand (Umbrella) NIVEA family Individual Brand Nivea individual Products

Nivea Passion for Success strategy

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Corporate Brand
A successful Corporate Brand has: Corporate Image Role of Company/Corporate Brand in the adopted Branding strategy
The companys role in society - its reputation

Firm keep a high public profile - influencing and shaping more abstract types of associations
Corporate Brand Equity- Constituent responds more favorably to a corporate ad campaign as compared to an unknown company.

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Corporate Brand Biersdorf for all

Nivea products

Biersdorf as a Brand
Never Introduced in market The "NIVEA Boys" poster campaign-1920 - introduced the modern blue and white packaging Till Date

Brand Awareness - No Recall - Never Heard Never Seen Brand Image No Niveaness i.e. Natural, Mild, Skin caring etc.
Hence Biersdorf as a Brand has negligible equity When compared to Brand Nivea
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Post 2000-Case Build up

2001: Tesa to become an independent affiliate. Tesa AG is formed as a
wholly owned affiliate of Beiersdorf

Professional wound care is spun off and contributed to a joint venture between Beiersdorf and Smith & Nephew. BSN medical, domiciled in Hamburg, is fou nded.

2002:

Florena becomes a wholly owned Beiersdorf subsidiary. The coopera tion dates back to 1989, and was intensified following the reunification of Ger many.

2003:

A new functional group organization focusing on the areas of brands, supply chain management, finance and human resources replaces the previous divisional organization.

2004: The new skin research center opens in Hamburg, underscoring the in
novative strength of the globally successful Beiersdorf group.

2005: Beiersdorf AG and Smith & Nephew plc realising the investment in B
SN medical sale to Montagu Private Equity.
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People Speak
In many countries, consumers are convinced that Nivea i s a local brand, a mistake which Beiersdorf, the German makers, take as a compliment.
As quoted on leading brand consultancy Wolff-Olins' website, www.wolff-olins.com

Coca-Cola as a brand does not have a lot of extendibilit y. Whereas Coke means Coca-Cola, Nivea is not Beiers dorf.
MD of A C Nielsen's Global Services Division, on Nivea's brand extension successes

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Family/Umbrella Brand
Family brands evoke a specific set of associations across related products w.r.t. : common product attributes, benefits and attitudes programs and values and corporate credibility to similar set of people and relationships. Family Brand is used when : Company level associations are less salient. Weak Corp. Brands Dissimilar Products - harder for the corp. brand to retain any product meaning

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Family/Umbrella Brand NIVEA family

May 2003 - survey of 'Global Mega Brand Franchises'

Nivea present in maximum number of Product categories Countries

yahoo.com news article - named it the

Queen of Mega Brands.

NIVEA family
A strong Brand Depth & Breadth Even Stronger Brand Image Uniqueness Caretaker of Skin Continuity Plus innovation (since 1910) Association- Men as well as Women

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Individual Brands Nivea Individual Products

Restricted to essentially one product category Though Multiple product types could be offered on basis different models, package,size, flavors etc. Main Advantages Brand as well as marketing customized. All Brand Elements-Design,Communication programs ,pricing & distributio n focus on certain target market. On failure- no risk to other brands Main disadvantages Difficult, complex expensive in creation of separate marketing programs Does not enhance the parent brand image Does not offers variety to customers Niveas presence :

14product categories and over 300 products

In facial cleansing - 23 countries, In facial skin care - 18 countries,

Available in more than 150 countries.

Market leader in skin creams and lotions in 28 countries, and in suntan products - 15 countries

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Advertising Nivea

NIVEA advertising - Over 60 years

Promoted the basic themes of skin care and protection Ads - always simple, plain and informative Early advertisements - image of the NIVEA women as clean, fresh and nat ural. Mid-1920s - introduced the bright and shining boys - three happy, healthy lads whose loveable looks captured the hearts of mothers Extended the freshness and natural image to the entire family.

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Advertising Nivea
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 White Blue and White

= sympathy, harmony, friendship and loyalty. = external cleanliness as well as inner purity = ideal for honest and appealing brand NIVEA.

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Advertising Nivea
Brand NIVEA
Closely linked to people Always adapted to current consumer needs Success - based on forward-looking product development.

NIVEA must carry on with Umbrella Ads so as to maximize

upon the strong Brand Equity earned over decades.

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Nivea Skin Creme (An Introduction)

Creme NIVEA
The name NIVEA - Latin word nivis meaning snow - reflecting the s now white color of NIVEA Crmes association with purity. Nivea Crme - created by a team of dermatologists 1911

Over 98% of the ingredients within NIVEA Creme are natural.

It was claimed as - "the world's first long-lasting skin cream." Every second, a pot of NIVEA Creme is sold . Enough tubs of NIVEA Creme have been sold to supply one pot to eve ry person whos ever been alive or is alive now. NIVEA Creme is sold in some 160 countries around the world.
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Role of Nivea Skin Crme ad

NIVEA - primarily through Creme NIVEA - acquired a unique, universal brand image as a caretaker of skin.

Creme NIVEA is synonymous with protection and caring for the skin for
its Mildness, Reliability, Gentleness, Protection, High quality, and value for money

All these attributes are strongly associated with the NIVEA Brand ,curtsy - Creme NIVEA
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Role of Nivea Skin Crme ad

Two researches conducted by BDF 1990s
A Inner Visuals - imagery study - Pictures were associated to skin care brand - Nivea was associated to pictures denoting : Traditional Family ideal, Communities Earth The Blue Planet - relating it to Creme NIVEA. B Semiological Analysis of consumers socio-cultural values in 1990s - To evaluate Socio-cultural position of Creme NIVEA and other major sub brands. These studies revealed - NIVEAs Brand association fit well into values of 1990s.cons umer.

-The return to more simplistic and holistic approach to life , -The desire to more fairness, openness & authenticity and belongingness

These were the values associated to NIVEA and particularly- Creme NIVEA
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Role of Nivea Skin Crme ad

So the dominance of Creme NIVEA brand and its communicatio ns in creating NIVEA as a brand has been proven scientifically also, therefore : In our view this must be carried on & focus while advertisement must be maintained on Creme NIVEA, the BDFs flagship produc t. But it must now focus on experience effect in newer markets like India to expand Mainly through Nivea Creme

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Q3

What would you do now? Provide recommendations to Ni vea concerning next steps in their Marketing Program?

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Key approaches that Nivea could adopt to grow i. Market Penetration ii. New Product Development iii. Market Development iv. Diversification

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Market Penetration

i.

Market Penetration

Selling more products involves either growing the market as a whole or taking market share from competitors.
Adjusting the marketing mix: Product - Reformulating products to make them more effective e.g. better at moisturising. Price - Reflecting good value but at a premium to retailers' own or private labels to represent quality. Place - finding new outlets through which to sell the products.

Promotion - finding more effective ways of reaching the target market, e.g. samples on beauty magazines.

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NIVEA Lip Care is a good example of the way in which NIVEA is building an existing product in an existing market, i.e. market penetration. Despite the seasonal nature of demand for lip care products and their relatively low selling price. NIVEA lipcare has developed the brand through monitoring trends in the market and matching these with its existing core competencies in skin care.

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New product development

ii. New product development Beiersdorf's investment across a broad range of existing product s illustrates its commitment to new product development which s hould be carried along. Focus on Core Competence of R&D to provide Quality Products Matching Science With the Consumer's Needs Developing new concepts for active ingredients against skin aging Higher focus on organic and Herbal formulations Communication to the larger audience highlighting the thrust on R& D.
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New product development

A good example of new product development was the launch of NIVEA Visage Soft Facial Cleansing Wipes in 1999. Market research at the time showed only 66% of UK women used a facial cleanser

Whilst only 27% has a face care regime (cleanse, tone, moisturise)
Women were looking for an easy, convenient, face care routine. NIVEA's Soft Facial Cleansing Wipes remove eye make-up and cleanse and tone in one simple step thus meeting customers known requirements. This is the basis of the product's success. Not surprisingly, NIVEA rapidly became the No.1 brand.
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Market development

iii. Market development Clear Geographical Focus -To focus on clearly defined geographical priorities. Western Europe should remain in focus. China, Russia, Brazil, and India should be geographical priorities delivering superior growth. Should put more emphasis on sizeable regions, like Latin America and Asia. Should focus on dedicated solutions for some product categories to address local consumer needs.

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The UK launch of NIVEA deodorant is a good example of market development within the NIVEA range. The UK deodorant market is currently worth 300m annually. It is a highly competitive market, dominated by one major manufacturer, Unilever, who account for over 60% of all sales. NIVEA identified a strong match between traditional NIVEA brand values and those required in a skincaring deodorant, i.e.: Protection Suitable for skin Mild/skin friendly Pleasant fragrance Reliable brand High quality. This allowed NIVEA to enter the market in the more specialist skin caring deodorant segment, away from the bigger, high-performance focused brands, with which the NIVEA brand image had fewer synergies.

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Diversification

iv. Diversification Develop new products for new markets.

This is well illustrated by the development of the NIVEA FOR MEN range. This development resulted from several trends. These include: The softening and blurring of "male" and "female" gender roles. Increased spending on lifestyles with more people attending gyms and caring about their appearance. New media developments, e.g. the revolution in men's magazines provide direct contact with men through advertising.

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 NIVEA was the first mass-market brand to set out to develop male facial care/moisturising. The NIVEA FOR MEN range provides straightforward practical solutions to men's skincare needs. It targets men who value their appearance and who see it as a key contributor to self-confidence i.e. NIVEA has diversified into the male sector of the market.

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Conclusion

In 60 years Creme NIVEA has made Nivea Brand synonymous to skin care

When compared to Brand Nivea, Biersdorf as a Brand has negligible equity

NIVEA must carry on propagating there Family Brand through Umbrella Ads so as to maximize upon the strong Brand Equity earned over decades.

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