Table of Contents

Introduction
History
Brand Nivea-evolution
Core values
Marketing strategy
Current scenario
S.W.O.T
Recommendation




Introduction
Presence in maximum product categories and
countries Queen of Mega Brands
Home country Germany
Parent Company Beiersdorf
15% share in global skin product market during the
late 90s
Maintained double digit growth rate throughout the
90s
One product wonder to multi product categories using
Umbrella Branding



History
120 year old brand based in Germany
The Beginning of Beiersdorf:
Body care products
Adhesive tapes
Bandages
Introduced brand NIVEA which acted as a Game
Changer

Introduction of brand NIVEA
A skin cream based on Eucerit, the first ever water in
oil emulsifier
Revolutionary product for cosmetic buyers with stable,
long lasting formula
Product name based on Latin word NIVIUS meaning
Snow White
Target audience expanded from Upper strata women
to masses
Revamping the Brand
First ever extensive revamping exercise in global
corporate world
NIVEA was given new packaging A blue tin with
NIVEA crme written in white on it
Revamping advertising imagery to expand NIVEAs
usage from ladies to the whole family

BEIERSDORF in blue
World war II enveloped Beiersdorf with political
problems of Germany
Expropriation of NIVEA brand by other countries
Assets and trademarks associated with the brand were
forcibly sold off
Next three decades were marked by brand
consolidation
Core Values of the brand
Visual and physical attributes of the product formed a
complex emotional bond between customer and brand
which had strong positive undertones
NIVEAs blue color denoted sympathy, harmony,
friendship and loyalty.
White color suggested external cleanliness and inner
purity
NIVEA had an aura of an honest brand
Brand Values Mildness, reliability, gentleness,
protection, high quality and value for money
Umbrella branding
Selling related products under one brand name
Contrast with individual product branding
Advantage: Several products can be efficiently
promoted with a single advertisement or campaign.
Challenge: Greater burden to maintain consistent
quality and brand dilution

Innovations and Product Extension
Began with extensions through 1930s
NIVEA Visage in 1960s
Major breakthrough in 1970s with the launch of
NIVEA for men aftershave A runaway success
Along with Umbrella brand approach the product
diversification was also influenced by competitive
pressure.
Research team of 150 researchers
Over 300 products across 14 segments of health and
beauty market


Umbrella Branding strategy for
NIVEA
Any new product was evaluated based on two
parameters
The new product had to be based on the qualities
that the mother brand offered
The new product had to benefit the consumers in the
same way as the other brand
Product extension and expansion
The Global Local Strategy
Rapid acceptance all over the world highlighted its
global appeal
However, according to company sources, the brand
retained its strong German heritage
Conscious decision to globalize the appeal of NIVEA
by forming a team of International Experts having
local expertise
Adaptation of international advertising campaigns at
the local level to reduce the costs of different product
formulations and packaging

Advertising features
NIVEA advertising was simple, unpretentious and
human.
No use of supermodels for promotion
Predominant colors in all campaigns were blue and
white
Local issues were well kept in mind
Communication strategy was localized

Market Position
Present across 14 product categories
Presence across 150 countries
Leadership position as on May 2003

Market Leader for product Country
Skin creams and lotions 28
Facial cleansing 23
Facial skin care 18
Suntan products 15
Brand NIVEA and what it meant for
its customers
NIVEA more than a skin care product
Associated with good health, graceful ageing and
better living
Sporting, fashion and other lifestyle events gave
NIVEA a long lasting appeal
Pillars of the brand Innovation, brand extension and
globalization
The BEIERSDORF ownership issue
Insurance major Allianz, the largest shareholder
intended to sell its 44% stake in the company
Prospective buyers included Proctor & Gamble, the
cosmetics major LOreal, and the coffee specialty
Tchibo which already had 30% stake in the company.
P&G and Tchibo enter price war to buy out Beiersdorf.

The BEIERSDORF ownership issue
German household products major player Henkel and
US based FMCG major Unilever also entered the fray
for Beiersdorf buy out
Analysts suggest a US based company to be the ideal
buyer for the brand sighting low market share of the
brand in the US market
Declining growth rate (17% in 2001 and 6.9% in 2002)a
cause for worry

S.W.O.T. analysis
Strengths
Presence in maximum product categories in over 150
countries
Market leader in skin care and men's care
Umbrella branding
Global local strategy
Continuous expansion
Emotional bond between customer and brand
Capitalization on strong brand equity


Strengths cont..
Advertising: simple, unpretentious and human
Set of guidelines for marketing mix of any new product
launch
Brand of local origin in many countries which helped
them in becoming the market leader
Mass marketing
Weakness
Presence in US not as strong as in Europe
Lacks size compared to its competitors
Decline in growth rate since this decade

Opportunities
Expansion to US markets
Bring excitement to the brand by interactive
advertisement
Build relationship with retailers to make Nivea
products more visible in retail stores

Threats
If brand is not managed well, there is a threat for its
associate brands
Associate brand may overshadow core brand
Not able to different segments of market due to
umbrella branding
Unable to capitalize on different segments of market
Competitors aggressively undertaking promotions

Recommendations
Should not let intensifying competition and the
ownership imbroglio affect the brand performance
Should position themselves in such a way that they can
influence the big retailers and markets where they
dont have a large presence.
Being acquired by a U.S. firm beneficial to Nivea