1. Case Study PresentationPresented By: Nikita SanghviSource: Best Practice Cases in Branding, Kavin Lane Keller, 3rd Edition, 2008, Pearson

2. 7-Apr-11 STEVENS B SCHOOL 3. Case Study AnalysisBackground Nivea is a brand of German company Beirsdorf; successful player in European market Expanded into South & Latin America, Eastern Europe, & Asia Earlier limited range of products: Nivea Crme, Milk, Soap & Sun Extended the Nivea brand to a full range of Skin care & Personal care products Challenge: Maintaining growth while preserving the established brand equity In 1990s & 2000s followed a sub brand strategy where individual sub brands received budget allocations for independent IMC7-Apr-11STEVENS B SCHOOL 4. 7-Apr-11 STEVENS B SCHOOL 5. Case Study AnalysisDevelopment Of The Nivea Brand: 1912-1970 Industrialization led to the emergence of mass markets and branded articles Women began to appreciate greater degree of physical appearance Nivea crme (Bright yellow tin) unique water-in-oil emulsion first to offer Skin care Protection Reasonable price Name came from Latin word: Nives- Snow; reflecting snow white colour of Nivea crme The worlds first multi purpose, universal skin crme Nivea crme introduced into German Market and subsequently throughout Europe(1912); in the USA in 1922; & in South America and other parts of the world in 19267-Apr-11STEVENS B SCHOOL 6. Case Study AnalysisDevelopment Of The Nivea Brand: 1912-1970 Introduced over 48 other skin care products between 1911-1970 Maintained Mono-product philosophy Blue tin & White lettering standardised in 1925 Other primary products body soap, powder, sun care lotion & oil7-Apr-11 STEVENS B SCHOOL 7. Case Study AnalysisNivea Crme Brand Identity & Values Throughout Europe - Unique Brand Identity: Caretaker of skin Strong Association: Shared family experience Care Mildness Reliability Gentleness Protection High Quality Feeling Good Reasonably Priced Synonyms: Care & Protection for the skin7-Apr-11 STEVENS B SCHOOL 8. Case Study AnalysisEarly Nivea Advertising Began advertising in 1912 Means of strengthening consumer perceptions of a quality product Simple, plain & informative ads In 1910s & 1920s, advertised three products crme, soap & powder Established the images of Nivea women as clean, fresh & natural7-Apr-11STEVENS B SCHOOL 9. 7-Apr-11 STEVENS B SCHOOL 10. Case Study AnalysisNiveas First Competitive Challenge: The 1970s Nivea held over 35% multi-purpose market in Europe Henkel-Khasana launched Crme 21 (multi-purpose crme) in 1972 Focus on extensive advertising & self-service outlets to target mass market Competition: Ponds , Unilever and P & G BDF performed a study on Nivea brand image in Germany High degree of goodwill Represented reliability, quality & honesty Older image, not viewed as young, dynamic, modern BDF developed two-pronged strategy Stabilize the strong historical market position of Nivea Crme Transfer Nivea Crme goodwill to other product classes7-Apr-11STEVENS B SCHOOL 11. Case Study AnalysisRevitalizing Nivea Crme Nivea, the Crme de la crme, 1971 Launched a series of 7 ads Impressively defended NIVEA Crmes leading market position. Objective: NIVEA Crme combines all aspects of skincare for the best in a single product, clearly stating the competence, quality and honesty of NIVEA. Only Me It ran in Europe from 1973 Objective: Negate competitors claims Positioning: Nivea crme meets all skin care needs7-Apr-11 STEVENS B SCHOOL 12. Case Study AnalysisExtending the Nivea Brand7-Apr-11 STEVENS B SCHOOL 13. Case Study AnalysisExtending the Nivea BrandSkin Care & Skin Creme Personal Care Mono product philosophy: Only one product promising consumers universal application in each product category Second version of a particular product could be introduced only if it satisfied a unique need not meet by the current products(s) in its category7-Apr-11 STEVENS B SCHOOL 14. Case Study AnalysisExtending the Nivea Brand Set of Guidelines: Meet a basic need: clean & / or protect Offer the special care / mildness benefit of Nivea Crme Be simple & uncomplicated Not to offer to solve only a specific problem Maintain a leading position in terms of quality Offer the product at a reasonable price so the consumer perceives a balanced cost-benefit relationship Offer the broadest possible distribution7-Apr-11 STEVENS B SCHOOL 15. 7-Apr-11 STEVENS B SCHOOL 16. Case Study AnalysisUnderstanding The Nivea Brand In 1992, Nivea Crme accounted for only 22% of total Nivea brand sales Concern: Nivea brand image weakened Multiple sub-brands independent of each other Complicated, risky & confusing set of messages send to consumers7-Apr-11 STEVENS B SCHOOL 17. Case Study AnalysisUnderstanding The Nivea Brand Kunisch, former CEO of Cosmed, believed that in preparing to develop a new NIVEA communications strategy, a formalised brand philosophy was necessary. Kunisch explained: NIVEA is the most fascinating brand in the world, second only to Coca-Cola. The company had done a tremendous job over the last 50 years to keep the NIVEA was a lack of conscientiousness of what it meant to be a brand. In the good old days, BDF had a brand relationship that was highly personalised. Only three people knew how it had all been doneone retired, one left the company and one died. In addition, there were three advertising agencies that did not talk with one another. I began with the basics and asked: What is NIVEA? The data was all there, the feeling was there, but no one had put it on a piece of paper.7-Apr-11 STEVENS B SCHOOL 18. Case Study AnalysisDeveloping Cosmeds Corporate Strategy The brand philosophy centered on maintaining the association of universality for NIVEA products. Kunisch explained, We want to build on the image of the blue tin where we are number one almost everywhere in Europe. The role of the other sub-brands was to continue to cater to the specific skin care & personal care needs of their target market segments and contribute back their particular product class associations to reinforce and elaborate on the image of NIVEA as a skin care specialist.7-Apr-11STEVENS B SCHOOL 19. 7-Apr-11 STEVENS B SCHOOL 20. Case Study AnalysisExecuting The Nivea Brand Philosophy Cosmed worked with its advertising agency, TBWA to communicate a certain Niveaness in all ads & promotions Campaign should incorporate the brand values: Timeless & ageless Motherhood & a happy family Honesty Trustworthiness Benefits of mildness & quality Other guidelines: Common emotions in all ads A uniform Nivea logo Consistent lettering & typeface Real, inspirational people in the ads Understable copy about the product7-Apr-11STEVENS B SCHOOL 21. Case Study AnalysisExpansion of Nivea Sub-Brands By 2005, the NIVEA brand portfolio had grown from six product groups in 1993 to fifteen, including: Skin CarePersonal Care NIVEA Body, NIVEA Deo, NIVEA Visage, NIVEA Beauty, NIVEA for Men, NIVEA Hair Care, NIVEA Sun, NIVEA Bath Care, NIVEA Baby, NIVEA Intimate Care NIVEA Crme, NIVEA Vital, NIVEA Soft, NIVEA Hand, NIVEA Lip7-Apr-11STEVENS B SCHOOL 22. 7-Apr-11 STEVENS B SCHOOL 23. Case Study AnalysisNivea Crme Nivea Crme, Niveas first product, was introduced in 1911 & was the first stable water-in- oil emulsion available in the world. Original NIVEA Crme tins were pale yellow with NIVEA Crme in blue print in the centre and a red and blue Art Nouveau border, but were changed in 1926 to the now- familiar blue and white design. The tin simplicity and caring embodied by the brand. Blue Harmony Campaign In the 1990s the spirit of the times changed and honesty, return to family and the reality of honest feelings became important values. Launched in 1992, captured wonderful moments of human togetherness. Included a series of television & print ads highlighting Nivea Crme Showed a group of seagulls flying together through the air as circuit music played in the background Tagline: All that skin needs to live7-Apr-11 STEVENS B SCHOOL 24. Case Study AnalysisNivea Crme7-Apr-11STEVENS B SCHOOL 25. Case Study AnalysisNivea Soft Introduced in 1994 Lighter than the heavier, greasier feeling of Nivea Crme Separate identity : to prevent cannibalization of Nivea Crme Launched first in UK with a marketing strategy called fast marketing: 1 week intensive TV and print ads, sampling & promotions In 2004, Launched in the USA with 2 sizes, extensive sampling targeting women ages 18-49 yrs 2005: Launched Mini-tube for travelling7-Apr-11STEVENS B SCHOOL 26. Case Study AnalysisNivea Visage Introduced in 1982 as a face cleanser (mildness)19871989 19911998 2005 Introduced a Changed the First anti-age Q10 used in Products with beauty fluidpackaging:from products Nivea Visage line Q10 Plus- to (liquid plastic to glass Anti wrinklereduce and moisturizer) Altered the logocream prevent wrinkles for Nivea Visage Moisturizing day and night crme7-Apr-11 STEVENS B SCHOOL 27. Case Study AnalysisNivea Vital Introduced in 1994 for women over the age of 501999 20002003 Redesigned its Cleansing and day Comfort cleansing Newer versions withpackaging and logo care creams, body Wipes with a fresh, special ingredients lotion and intensivehealthy glow & alike soy proteins and care products pleasantly smooth primrose oil feel7-Apr-11STEVENS B SCHOOL 28. Case Study AnalysisNivea Body Introduced in 1996 Nivea Milk: water- in oil emulsion but in liquid form for dry skin Nivea Lotion: oil in-water emulsion; daily care of normal skin Essential PerformancePleasure Shaving, Exfoliating, Moisturize, Soften,Relax, Refresh And Re- PropertiesNight Time And Skin Protectenergize FirmingBody Lotion Rice & ProductsOil,, Milk And Lotion Products Using Q10 Lotus, Ocean BreezeSpray Nivea Whitening Body sprayShimmer lotion withBody firming lotionCream-> Asia Pacific (moisturizing spray)reflective properties with Q10region7-Apr-11 STEVENS B SCHOOL 29. Case Study AnalysisNivea For Men 198019861993 1998 After shave balsam Full line of mens skin care Sensitive line for men (skin Philishave Cool Skin (alcoholic cleanser + productsirritation)electric razor with Nivea moisturizer) for Men shaving emulsion 20052000-20031999 3 product lines- Normal, Face scrubs, facemask, Q 10 formulation in face Sensitive and Fresh toner and oil controland eye cream7-Apr-11STEVENS B SCHOOL 30. Case Study AnalysisNivea SunLaunched in 1930s but consciously in 1970s developed as an independent sub-brand 1980s1990s1997 1999 Lotions in variety of extended to include a Line of moisturizing Nivea sun spray and SPF factors and after line of sensitive skinsun cream co-branded Nivea sun kids sun sun productswith Nivea Visagespray 20042002 2000 Hair care productNivea firm sun lotion Nivea sun after sunwith UV protection cream with Q107-Apr-11STEVENS B SCHOOL 31. Case Study AnalysisNivea Baby Launched in 1970s but failed to meet sales target Re-launched in 1996 Included shampoos, conditioners, bathing soaps, lotions, wipes, powders, cremes, oils, sun protection 2005- Toddies (first all purpose wipe for babies) Soft crme wipes wipes soaked in baby soft cream7-Apr-11STEVENS B SCHOOL 32. Case Study AnalysisNivea Baby7-Apr-11 STEVENS B SCHOOL 33. Case Study AnalysisNivea Hand Launched Nivea Hand Age Control Lotion in 1998 In 2000, Nivea Hand Anti Age Q10 Plus7-Apr-11STEVENS B SCHOOL 34. Case Study AnalysisNivea Lip First introduced in 1902 under the brand name Labello Focused on essentila care, beauty care, sophisticated care and performance care7-Apr-11 STEVENS B SCHOOL 35. 7-Apr-11 STEVENS B SCHOOL 36. Case Study AnalysisNivea Deo In 1991,BDF extended presence in the personal care area with a line of deodorant products called Nivea Deo Marketed on the assurance of mildness and caring 1995 2000 200420052006 Nivea Deo Balsam Mild Care and Natural Nivea Fresh 24 hour Aqua Cool for men Nivea Pure for women Sensitive Skin Freshnessantiperspirant sprayNo white marks or Nivea Deo for men Nivea Deo Wipes residue underarm cleanser in wipe form Nivea Deo Compact portable spray deodorant7-Apr-11STEVENS B SCHOOL 37. Case Study Analysis1999 2000 Nivea Beaute Time Color and CalciumNivea BeauteBalance Q10 makeup Mascara Optimal 3 in1 Nail polish Second biggest brand launch after Q10 ingredient brand First appearance in color cosmetics, in 1997 Consistency with Niveas core competency of care2004 2003Caring: Slogan which said "Colors Lash Revolution Velvet Mat Makeup that Care Mascara withPackaging: Deep blue hueselastoflex brush 100 different SKUs High Fashion Design Halo Effect on overall brandProduct in high image cosmetics categoryAttracted new, younger consumers to2005 the brand Flex and Strong withBamboo Nail polish7-Apr-11STEVENS B SCHOOL 38. Case Study AnalysisNivea Beaute7-Apr-11 STEVENS B SCHOOL 39. Case Study AnalysisNivea Bath Care Extended Nivea brand into skin-related personal care categories Benefits High quality, mild, caring benefits of Nivea brand Added emotional benefit of pleasure 19931995 19971998 Nivea Shower Milk- Nivea Milk Bar Nivea Aroma Bath Nivea Bath Care Nivea Body MilkCareShampoo and Shower lotion with Nivea Aroma therapy trend for Kids Bath care Nivea Bath CareFoam Bath for Kids 20052004 20022000 Flavors Shower massager Nivea Shower Oil Nivea Bath Care Milk and Apricotwith built in shower Product Of the Year Shower Gel Body Wash gelin France Relaunched to project Rice and Lotus linea feminine image7-Apr-11STEVENS B SCHOOL 40. Case Study Analysis 1996 1998 Nivea Hair Care Styling Line Better focus on Hold 3 hair sprays and 3 hair gels Ultra Strong MousseNivea Hair Care Ultra Strong Hair Lacque Power shopping Niveas first hair care product launched in 1991 Hair care not viewed as skin related product line2000 1999 Nivea Hair Care Liquid Gel Nivea Hair Care Shampoo for Not aligned with Niveas key association as a Nivea Hair Care Aqua Gel men frequent use skin care provider Wet look Maintain strong link to Niveas core brand image Pflege-Shampoo Pflege-Spulung Early 2000s Products emphasized mildness and care Color Shine shampoos, conditioners and qualities treatments Sun Hair Care products After-Sun shampoo and conditioner Sun Protection spray UV rays salt & chlorine Nivea Locken for curly hair7-Apr-11 STEVENS B SCHOOL 41. Case Study AnalysisNivea Hair Care7-Apr-11STEVENS B SCHOOL 42. Case Study AnalysisNivea Intimate Care Launched in 2004, only in Italy Series of feminine care wipes & lotions Emphasized on natural ingredients Brand Image: Softness & Care7-Apr-11 STEVENS B SCHOOL 43. 7-Apr-11 STEVENS B SCHOOL 44. Case Study AnalysisNivea Branding Strategy Cosmed worked with agencies FCB and TBWA to develop the marketing concepts and ad executions. In each market, they implemented perfect local execution with local agency affiliates The models or language may change so as tht NIVEA brand appears local but the content remains consistent. As Norbert Krapp,NIVEAs Vice President of skin care, stated: Pictures travel, words dont. Printed a booklet for internal use detailing its brand philosophy, called the Blue Bible. Contained basic information about NIVEAs brand identity, vision, mission, success factors, and the role of its sub-brands. Provided guidelines for products, packaging, communication, promotion, public relations, direct marketing, and pricing. Norbert Krapp referred to the Blue Bible as the best [branding step] we did in recent years, calling it the key anchor for all brand decisions.7-Apr-11 STEVENS B SCHOOL 45. Case Study AnalysisDirect Marketing For Nivea Vital & Nivea Visage Largest campaign in France with database of more than 1 million Development of Nivea magazine, in Germany, for the whole family specifically for men & younger adults7-Apr-11 STEVENS B SCHOOL 46. Case Study AnalysisNon-Traditional Marketing The blue NIVEA beach ball Distributed ball at European beaches each summer First image campaign focusing on the NIVEA brand rather than the individual products. Blue Santa Claus giving Crme in Germany Double-decker Nivea-branded blue promotional bus in Russia Mega Poster advertisement covering the outside of the Kremlin Nivea Club in Austria in 19957-Apr-11 STEVENS B SCHOOL 47. Case Study AnalysisNon-Traditional Marketing Nivea Care Centre in South Africa House of Nivea store in Hamburg, Germany, 2006 Workshops for body & soul in Germany, the UK & the USA Partnered with hospitals & sponsors young mothers in maternity wards Care packages containing Nivea products Free product samples and informational brochures7-Apr-11 STEVENS B SCHOOL 48. Case Study AnalysisEvent Marketing Each country had an event manager responsible for the events Sponsored various organizations in Europe Beach lifesavers(lifeguards) Childrens sailing programs Beach volleyball tour School education programs for safe sunbathing Branded double-decker bus Travelled to concerts and other youth oriented events Consumer could get a total hair & face makeover at the bus Nivea Hand product free with each Nivea Hand Anti-Age Crme Q10 Nivea shops in large German department stores Extensive point of sale display Beauty advisor in-house to help customers7-Apr-11 STEVENS B SCHOOL 49. Case Study AnalysisNivea.com Global website information about company and its history, products, markets, beauty advice and games Designed with the blue harmony theme Customized websites with local content for each country Dedicated site for each sub-brand Specialized beauty and skin care tips Viral marketing campaigns in early 2000s Online sweepstakes, chat rooms and promotions Bridget Jones: the Edge of Reason in 20047-Apr-11STEVENS B SCHOOL 50. Case Study AnalysisResearch & Development Continuous product innovation In 2004, BDF spent 38 million on R & D centre in Germany7-Apr-11 STEVENS B SCHOOL 51. Case Study AnalysisNew Market Rollout GuidelinesNivea CremeNivea Body Nivea Visage Nivea Beaute Nivea Visage must bea market leader before Nivea Deo Nivea Softits launch7-Apr-11 STEVENS B SCHOOL 52. Case Study AnalysisGeographic Growth Opportunities Remained small player in the USA In 2003, in $7 billion skin care market of the USA, share of Nivea = $180 million In 2005, five sub brand in North America- Nivea for Men Nivea Crme Nivea Body Nivea Soft Nivea Visage Nivea Visage Q10 & Nivea Firming Lotion gaining success Competitors: LOreal, Estee Lauder, Avon Growing opportunities in emerging market7-Apr-11 STEVENS B SCHOOL 53. 7-Apr-11 STEVENS B SCHOOL 54. Case Study AnalysisOverall Brand Health At the beginning of the 1990s, NIVEA was already a global brand with a wide range of products catering to the full spectrum of consumer segments. Throughout the decade, NIVEA nurtured its existing sub-brands and moved into additional market segments by adding new sub-brands. The companys sub-brand strategy yielded remarkable results: between 1990 and 2000, every NIVEA sub-brand experienced sales growth and gained market share. By 2005, NIVEA was a leading international skin care company and voted the most trusted brand in Germany by Readers Digest from 20012004. Nivea management decided that the sub-brand strategy was effective. The company did continue, however, the Blue Harmony campaign for its flagship brand, Nivea Crme. The company had to decide whether the sub-brand strategy would continue to work or if the company should leverage the Nivea brand with an umbrella strategy7-Apr-11STEVENS B SCHOOL 55. 7-Apr-11 STEVENS B SCHOOL 56. Case Study AnalysisQuestion No. 1 What is the brand image and sources of equity for the Nivea brand? Does it vary across product classes? How would you characterize their brand hierarchy?7-Apr-11 STEVENS B SCHOOL 57. Case Study Analysis Kellers Brand Equity Model Possible OutcomesChoosing Brand Elements Brand Awareness Greater loyaltyBrand nameMemorabilityLogoMeaningfulness Less vulnerability to competitiveRecallSymbolAppeal marketing actions and crises DepthCharacter TransferabilityRecognitionPackaging Adaptability Larger marginsSloganProtectabilityPurchase Developing Marketing Programs Breadth More elastic response to priceConsumption decreasesProduct Tangible and intangible benefitsPrice Value perceptionsMore inelastic response to priceDistribution channels Integratepush and pull Brand Associations increasesCommunicationsMix and match options Relevance Greater trade cooperation andLeverage of Secondary Associations StrongConsistencysupportCompanyDesirable Increased marketing communicationCountry of originFavorable Deliverable efficiency and effectivenessChannel of distributionOther brands Point-of-parity Possible licensing opportunitiesEndorser UniquePoint-of-differenceEventMore favorable brand extensionevaluations 58. Case Study AnalysisBrand Elements Name: The brand has derived its name from the Latin word Nivius meaning "Snow White". Logo: The dainty art nouveau design of the original NIVEA tin was replaced by a much simpler look: The blue tin with the word NIVEA in white celebrated its debut in 1925.NIVEAs visual identity:World-famous blue and white color combinationNIVEA blue - is not just any old blue, but Ivocart NIVEA Blue B 65711 A special color mixed exclusively for NIVEA in a complex development processBlue = sympathy, harmony, friendship and loyaltyWhite= external cleanliness as well as inner purityBlue and White = ideal for honest and appealing brand7-Apr-11STEVENS B SCHOOL 59. Case Study AnalysisBrand Elements Product: Tag Line Nivea Crme - Nivea, The Crme De La Crme; Only Me ; Harmony In Blue; All That Skin Needs To Live Nivea For Men Less Alcohol, More Care Nivea Hand - Apparently You Can Tell A Womans Age By Her Hands Now You Can Lie A Little Nivea Beaute - Colors That Care Nivea Sun - Where Its Green, It Wont Be Red Nivea Sun The New Nivea Sun Makes The Sun Gentle Nivea Visage Anti-age - Science In All Confidence Nivea Visage Get Fair, Stay Fair Nivea Bath Care- Delightfully Gentle And Creamily Mild Nivea Hair Entire Care For Frequently Washed Hair Niveo Deo: Aqua & Cool- The Deo That Even Cares For Your Skin7-Apr-11 STEVENS B SCHOOL 60. Case Study AnalysisMarketing Program PRODUCT Nivea has expanded significantly to offer a comprehensive choice of moisturising, protection and care expertise in the face, body, hand, lip, mens, sun and deodorant markets. Skin CareNIVEA Body, NIVEA Visage, NIVEA for Men, NIVEA Sun, NIVEA Baby, NIVEA Crme, NIVEA Vital, NIVEA Soft, NIVEA Hand, and NIVEA Lip. Personal CareNIVEA Deo, NIVEA Beauty, NIVEA Hair Care, NIVEA Bath Care, and NIVEA Intimate Care.7-Apr-11STEVENS B SCHOOL 61. Case Study AnalysisMarketing Program PRICING Consumer price perceptions Reasonable price so that consumer perceives a balanced cost-benefit relationship PLACE Indirect channels Selling through wholesalers or distributors, and retailers or dealers Pull strategy through advertising7-Apr-11STEVENS B SCHOOL 62. Case Study AnalysisMarketing Program PROMOTION In each market, they implemented perfect local execution with local agency affiliates Simple, plain & informative ads Printed a booklet for internal use detailing its brand philosophy, called the Blue Bible. Direct Marketing Non-Traditional Marketing Event Marketing Nivea.com Harmony in Blue for Nivea Crme7-Apr-11STEVENS B SCHOOL 63. Secondary Association Event: Company: Beirsdorf , BDF Sponsored various organizations in Europe Beach lifesavers(lifeguards) Childrens sailing programs Country of origin: Germany Beach volleyball tour School education programs for safe sunbathing Channel of distribution : Indirect Channels Branded double-decker bus Travelled to concerts and other youth oriented events Endorser : Real, inspirational Consumer could get a total hair & face makeover at the bus Nivea Hand product free with each Nivea peopleHand Anti-Age Crme Q10 Nivea shops in large German department stores Extensive point of sale display Beauty advisor in-house to help customers7-Apr-11STEVENS B SCHOOL 64. Case Study AnalysisBrand Awareness Nivea is the worlds largest skincare brand with a strong international presence in around 170 countries and an enviable reputation. Most trusted brand in Germany, 2001-2004, Readers Digest7-Apr-11STEVENS B SCHOOL 65. Case Study AnalysisCBBE Pyramid7-Apr-11 STEVENS B SCHOOL 66. Case Study AnalysisCBBE Pyramid Resonance: Attachment, Community Judgments: Credibility, SuperiorityFeelings: Safe, Warmth, Pleasure,SatisfiedPerformance: Imagery: Heritage, For family, UniversalQuality, Mild & Gentle, Caring & protective, applications, Blue HarmonyPure Salience: Various products and purposes, Blue tin4/7/2011 STEVENS B SCHOOL 67. Case Study AnalysisBrand Association StrongFavourable Unique High And Consistent Quality Caring & Protection A Complete Caretaker Of SkinReliabilityPleasant FragranceA Universal, Unisex AcceptanceBlue Colour Tin / White LogoGentleness Special Product Range For Men Luxurious Brand Mildness/ Smooth World Known BrandHeritage Fair PriceTrust7-Apr-11STEVENS B SCHOOL 68. Case Study AnalysisBrand HierarchySkin Care Personal Care NIVEA Body, NIVEA Deo, NIVEA Visage, NIVEA Beauty, NIVEA for Men, NIVEA Hair Care, NIVEA Sun, NIVEA Bath Care, NIVEA Baby, NIVEA Intimate Care NIVEA Crme, NIVEA Vital, NIVEA Soft, NIVEA Hand, NIVEA Lip7-Apr-11STEVENS B SCHOOL 69. Case Study AnalysisQuestion No. 2 What are the pros and cons of the sub-brand strategy? Should Nivea run a corporate brand or umbrella ad for all of their products? What is the role of the Nivea Crme advertising? Should it be changed?7-Apr-11 STEVENS B SCHOOL 70. Case Study AnalysisPros And Cons Of The Sub-brand StrategyPROS Each sub-brand had its own personality and developed its own set of brand associations that were consistent with, but independent of, the Nivea crme core brand image Continuity + Innovation: Continue to nurture core Nivea associations while widening its applicability Separate budget for each sub-brand To take care of specific skin care and personal care needs of their target market segments Reinforce and elaborate on the image of Nivea as a skin care specialist Benefitted from the Halo effect of the Nivea name Trust, care, mildness, fair price CONS Concern that Nivea Crme brand image had been weakened through all the product introductions Complicated, risky &send a confusing set of messages about what the Nivea represented Cost of developing several new brands in a limited time period would be considerable7-Apr-11STEVENS B SCHOOL 71. Case Study AnalysisRole Of The Nivea Crme Advertising Cosmed worked with its advertising agency, TBWA to communicate a certain Niveaness in all ads & promotions Campaign should incorporate the brand values: Timeless & ageless Motherhood & a happy family Honesty Trustworthiness Benefits of mildness & quality Other guidelines: Common emotions in all ads A uniform Nivea logo Consistent lettering & typeface Real, inspirational people in the ads Understable copy about the product Blue Harmony , campaign Nivea sub-brands adopted the design elements (block and cursive combinations) of the Nivea crme ads, & contained Nivea message of quality & care7-Apr-11STEVENS B SCHOOL 72. Case Study AnalysisRole Of The Nivea Crme Advertising No, in my opinion the advertisement should not be changed: Nivea, still the important image carrier Core brand of the company; synonymous with blue tin & white lettering Automatic transferring goodwill to the other product classes7-Apr-11STEVENS B SCHOOL 73. Case Study AnalysisQuestion No. 3 Discuss the risks and benefits of Niveas brand extension into new product categories and customers. How have Niveas executives managed this extension? Have they missed opportunities such as perfume or foot care?7-Apr-11STEVENS B SCHOOL 74. Case Study AnalysisBenefits of Extensions Long term objective: (Skin crme-> skin care) Company Philosophy: To respond to market trends & innovate through R & D Facilitate new product acceptance Widening applicability & enhancing meanings Reduce risk perceived by customers (Halo effect) Increase the probability of gaining distribution and trial Expand the market share 75. Case Study AnalysisRisks of Extensions Can confuse/ frustrate consumers (complicated, risky) Can fail and hurt the parent brand image (Nivea crme) Can succeed but cannibalize sales of parent brand Can succeed but diminish identification with any one category Can dilute brand meaning 76. Case Study AnalysisExtending the Nivea BrandSkin Care & Skin Creme Personal Care Mono product philosophy: Only one product promising consumers universal application in each product category Second version of a particular product could be introduced only if it satisfied a unique need not meet by the current product(s) in its category7-Apr-11 STEVENS B SCHOOL 77. Case Study AnalysisExtending the Nivea Brand Set of Guidelines: Meet a basic need: clean & / or protect Offer the special care / mildness benefit of Nivea Crme Be simple & uncomplicated Not to offer to solve only a specific problem Maintain a leading position in terms of quality Offer the product at a reasonable price so the consumer perceives a balanced cost-benefit relationship Offer the broadest possible distribution7-Apr-11 STEVENS B SCHOOL 78. Case Study AnalysisExtending the Nivea Brand Has always responded to consumer expectations & market trends. Believed in continuity + innovation; new & improved product in each category Gradual innovation Still not missed the opportunities of perfume or foot care but have a competitive edge of the large market share & trusted brand so it can go for the big move.7-Apr-11STEVENS B SCHOOL 79. Case Study AnalysisQuestion No. 4 Should Nivea pursue a Mens grooming category? Does the company risk alienating its core customer base of families and women or is this a natural next brand extension?7-Apr-11STEVENS B SCHOOL 80. Case Study AnalysisNivea for Men Nivea for Men line included Two new fairness products - a Whitening Moisturizer and Multi-White WhiteningFacial Foam. Deodorant Aqua Cool, Multi Protecting Facial Foam, Moisturizing Shaving Foam, Shaving Gel and Cooling Gel Moisturiser, a light hydro gel, with Iso Magnesium and Mint Extracts Less alcohol, more care7-Apr-11 STEVENS B SCHOOL 81. Case Study AnalysisNivea for Men Nivea should pursue the men grooming category All sub brand are catering to some specific need, so it wont hurt the companys brand image of unisex It is a result of innovation: a complete care for mens skin for the metrosexual men Mens skin care market is growing now & Nivea took the advantage of first move & its image of quality & care .7-Apr-11 STEVENS B SCHOOL 82. Case Study AnalysisQuestion No. 5 What would you do now? What recommendations would you make to Nivea concerning next steps in their marketing program?7-Apr-11 STEVENS B SCHOOL 83. Case Study AnalysisRecommendations Though Nivea is growing in emerging market, it has a tough competition with other skin care brands. To become a global brand, the product adaptation has to be done For this, no sacrificing of the brand image of quality & care Adapt as per the consumer profile of the nation Pricing: For emerging market, the price needs to be fine-tuned7-Apr-11STEVENS B SCHOOL 84. THANK YOU7-Apr-11 STEVENS B SCHOOL