NIVEA: MANAGING A BRAND HIERARCHY

Agenda

Development of NIVEA Brand Image and Equity Product Line and Association Brand Architecture NIVEA Advertisement Going Forward Takeaways

Development of Nivea1912 : NIVEA Creme introduced in the German market by Beiersdorf

1912-1970 : Range of products (48 new products) introduced and expanded under Nivea brand - maintaining a mono-product philosophy .

NIVEA Creme remained the company’s premier product

1970 - 1993 : Stiff competition from Ponds, Henkel, Unilever.

Two-Prong strategy:

Stabilize strong historical market position - Larger sized units; special line outlets to food outlets; Aggressive Ad campaigns

Transfer the goodwill to other products – Skin creme to Skin care and personal care brand. Nivea Universe. Continuity and Innovation

Development Cont…

1993 onwards :

‘NIVEAness’ to all products and Ads and augmented by specific needs of target markets.

Sub - Branding Strategy

At Beiersdorf, now one goal:

To meet consumers' skin and beauty care needs.

Every day. Throughout the world.Sales Figure:Germany 25 % Europe w/o Germany 48 % Americas 15 % Africa / Asia / Australia 12 %

Mental Map of NIVEA

Scent/Feel Care Protection Mildness Gentleness Trustworthy/Reliable Pure Simple Multipurpose/Universal For Family Heritage Blue/White Good Value

Brand Image of NIVEA Strength of Brand Association:

Rich set of Association like Care, mildness, reliability, gentleness, protection, high quality, feeling good & reasonably priced.

The Nivea woman- reflected in Ads as “clean, fresh and natural”.

Favorability of Brand Association: Used by Entire Family – Universal, Unisex,

satisfying multiple needs. Associated with Mother-Child relationship, Family

vacation. Uniqueness of Brand Association

Complete caretaker of skin Caring and protective Anti - Aging

CBBE Pyramid

Performance: Quality

Mild and GentleCaring and protective

Pure

Imagery:Heritage

For FamilyUniversal

Applications

Judgment:

CredibilitySuperiorit

y

Feelings:

Warmth

Fun

Salient: Multi-forms and purposes

Resonance:

Attachment

Community

Product Line

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

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

Only three months after launch, Attained No 1 market position among all body care products inFrance, Belgium, Italy, Portugal and Turkey

Product Line

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

Perfectly compatiblewith your intimate area. Confidence and well being all day long

The expert Make up with the Skin care competence of NIVEA and a passion forcolour to celebrate yourFeminine beauty

The advanced mild caring range which covers all male Facial skin care needs

Brand Association across product class Nivea Visage – ‘The mildest way to clean your face’, mildness and

anti-aging as POD.

Nivea Body – ‘What your skin needs to be beautiful’, ‘cares like lotion, feels like spray’, milky white lotion that penetrates gently into skin to make it soft and supple.

Nivea Sun – ‘The new Nivea Sun makes the sun gentle’.

Nivea Vital – ‘Care for mature skins’, emphasized on energy and femininity in their design.

Nivea For Men – ‘Less alcohol, more care’. Offered smooth, freshness and soothing qualities.

Nivea Beaute – Halo effect on overall Brand, focused on caring and high-fashion design elements, perfectly suitable for new fashion trends.

Nivea Bath Care – Products promoted high quality, mild, caring benefits emphasizing emotional benefits like stress relaxation and well being.

Nivea Hair – ‘Entire care for frequently washed hair’; First caring Styling range; Hold and Protection as UV filter.

Nivea Deo –’The deodorant that even cares for your skin’, Feather as a symbol of mildness and care.

Brand Architecture

•Overarching brand used across multiple related products

•Economies of scope; burden to maintain consistent quality

•AMUL - Amul Butter, Amul Cheese, Amul Milk, Amul Icecream, Amul Chocolates etc

Umbrella Branding /

Family Branding

•Practice of using a company's name as a product brand name; attempt to use corporate brand equity create product brand recognition. e.g. Disney

•Economies of scope; new product acceptance

Corporate Branding

•individual brands are presented to consumers, parent company name is given little or no prominence

•Dove, Pampers

Individual Product

Branding

Early Advertising

Basic Theme – Simple, Plain, Informative

Image of NIVEA women as clean, fresh and natural.

1920’s – Three happy, healthy lads

Extended the freshness and natural

Image to entire Family

Brand Logo

Blue = sympathy, harmony, friendship and loyalty. White = external cleanliness as

well as inner purityBlue & White = ideal for honest and

appealing brand NIVEA.

Later Advertising

Contd. to represent the heart of NIVEA products – trust, sympathy and care

Along with their own functionalities. ‘Blue Harmony’ campaign in 1992 to

show the spirit of NIVEA in NIVEA Creame

Going Forward…

Better Market Mix – Better products, Premium pricing enhancing quality, Outlets and saloons of NIVEA etc.

Eco-Friendly products – Introducing Green/Herbal products along with promotion through CSR activities.

More emphasis on local needs for developing countries. Europe should remain on primary focus.

Takeaways

Sub- Branding Strategy is best for a company having large Brand Breadth.

Focus on Brand Values and mantra and associate the same to all the product lines.

NIVEA leveraged the Brand Equity earned over decades to gain more and more market penetration.

Offer a huge category of products in order to cater almost every need of market.

Products and Ads should reflect the local connect.

Thank You !!!