NIVEA : MANAGING A BRAND PORTFOLIO SATISH MENON SAURABH KUMAR SHAILENDRA SINGH

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
Nivea’s brand image
Nivea’s 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 Nivea’s future marketing program.
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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
t
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.
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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 company’s premier product
1970-1993 : Extended the Nivea brand from the limited range of products
- Nivea crème,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
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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
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Product Line
Product Line
NIVEA body
Anti-Age Treatment
• First Anti-Age Nivea Body Care
for mature skin
• New formula with skin´s own
Creatine
• Proven to reduce sagginess,
wrinkles and dryness
• Opening up a new high potential
segment for NIVEA body
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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
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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
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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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Nivea’s 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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Nivea’s sources of equity
•
NIVEA Crème ‘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 Crème tin
• Nivea’s core brand associations – “mildness and caring”
- Correlated with the key skin needs of consumers
- Enjoyed high degree of confidence & goodwill
- Reliability,quality and honesty.
• Nivea’s 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 Crème brand associations and
transferred it to other product classes
New products
- Positioned with a promise to contain the core brand associations of NIVEA Crème
- With some new benefit provided by the product
1992 : Nivea crème - 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 crème
- 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


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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
Corporate Brand
A successful Corporate Brand has:• Corporate Image – Role of Company/Corporate Brand in the adopted
Branding strategy
• The company’s 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
Nivea’s presence
:

14product categories and over 300 products
In facial cleansing - 23 countries,

Available in more than 150 countries.
In facial skin care - 18 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-1920’s - 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
 NIVEA’s 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
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= sympathy, harmony, friendship and loyalty.
= external cleanliness as well as inner purity
= ideal for honest and appealing brand NIVEA.
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 Crème’s association with purity.
 Nivea Crème - 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 who’s 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 Crème 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 Crème ad
Two researches conducted by BDF– 1990’s
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 consumer’s socio-cultural values in 1990’s
- To evaluate Socio-cultural position of Creme NIVEA and other major sub
brands.
These studies revealed - NIVEA’s Brand association fit well into values of 1990’s.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 Crème 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 BDF’s 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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