54199531 NIVEA Umbrella Branding

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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 thelate 90’s

Maintained double digit growth rate throughout the90s

One product wonder to multi product categories usingUmbrella 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 GameChanger



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’ meaningSnow White

Target audience expanded from Upper strata womento masses



Revamping the Brand First ever extensive revamping exercise in globalcorporate world

NIVEA was given new packaging – A blue tin with

NIVEA crème written in white on it Revamping advertising imagery to expand NIVEA’s

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

NIVEA’s 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 efficientlypromoted with a single advertisement or campaign.

Challenge: Greater burden to maintain consistentquality and brand dilution



Innovations and Product Extension Began with extensions through 1930’s

NIVEA Visage in 1960’s

Major breakthrough in 1970’s with the launch of‘NIVEA for men’ aftershave – A runaway success

Along with Umbrella brand approach the productdiversification was also influenced by competitivepressure.

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 twoparameters

The new product had to be based on the qualitiesthat the mother brand offered

The new product had to benefit the consumers in thesame 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 brandretained its strong German heritage

Conscious decision to globalize the appeal of NIVEAby forming a team of ‘International Experts’ having

‘local expertise’ Adaptation of international advertising campaigns at

the local level to reduce the costs of different productformulations 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 2003Market 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, thecosmetics major L’Oreal, and the coffee specialtyTchibo 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 frayfor Beiersdorf buy out

Analysts suggest a US based company to be the idealbuyer for the brand sighting low market share of thebrand in the US market

Declining growth rate (17% in 2001 and 6.9% in 2002)acause 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 productlaunch

Brand of local origin in many countries which helpedthem 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 interactiveadvertisement

Build relationship with retailers to make Niveaproducts 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 toumbrella 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 caninfluence the big retailers and markets where theydon’t have a large presence.

Being acquired by a U.S. firm beneficial to Nivea



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54199531 NIVEA Umbrella Branding

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