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NIVEAAN INSIGHT INTO ITS BRAND EXTENSIONS
Course Instructor: Prof. Sameer Mathur
Submitted by: Priyanka Khowala, PGP30333
Manufacturer - Beiersdorf
NIVEA is owned by Beiersdorf, a German Company. The brand is dedicated to skin and body care products of all kinds.
Beiersdorf ranked fifth in global beauty and personal care market in 2013, with a value share of 3%.
A key challenge for the company is that it is up against strong competitors in the shape of L’Oreal, Procter and Gamble, and Unilever, which have a wider category and geographic presence, and significant resources to invest in product development and marketing.
It is marketed in India by NIVEA India Pvt. Ltd.
It is one of the best skin care brands in the world and it started operations in India in 2006 as a 100 % affiliate of the global cosmetics & toiletries giant Beiersdorf AG
Parent Brand - NIVEA
NIVEA comes from Latin word meaning ‘snow-white’. The name does justice to the idea of beautiful skin, that the brand spreads though its products.
NIVEA Crème was introduced to the world in December of 1911. At that time it was found in a tin yellow box.
In 1924, the company developed a new approach to advertising. The new campaign of ‘NIVEA Boys’ introduced a new image which still exists in its blue and white presentation of all Nivea Products. The blue signifies sympathy, harmony, friendship and loyalty. The white signifies external cleanliness as well as inner purity.
The brand presents itself as a skin care solution for both men and women. It has a wide range of products that cater to various segments of skin care market, like - body care products, sun care products, hand care products, men’s face wash, female face care products, talc and deodorants, shower soaps and body wash and lip care.
NIVEA Crème was
first introduced in the year
1911
Introduced
NIVEA soap in
1919
Introduced a section of
its haircare
products in 1920
Introduced
the first Nivea
product for MEN: the
NIVEA shaving soap in 1922
NIVEA Whitening
paste for Asian skin was
introduced in 1927
NIVEA Baby fine range was
introduced in 1960
NIVEA VITAL for mature skin was introduced
in 1994
NIVEA VISAGE Anti – Wrinkle
Q10 Day cream was introduced
in 1998
NIVEA later also
introduced its suncare
series
NIVEA – Category Extension of the Brand
Source: - http://www.nivea.in/about-us/beiersdorf/NIVEAHistory#!stories/different-skin-different-needs
Size of the Skin Care Market in India
Source: Euromonitor - http://www.portal.euromonitor.com/portal/analysis/tab
Market share of Nivea in skin care segment in India
Unilever Group48%
L'Oréal Groupe7%
Amway Corp5%
Oriflame Cosmetics SA3%
Himalaya Drug Co, The3%
Emami Ltd3%
Zydus Wellness Ltd2%
Nivea2%
Others26%
Market Share (2014)
Current value growth (%) of skincare segment in India
Source: Euromonitor - http://www.portal.euromonitor.com/portal/analysis/tab
Forecast value growth (%) of skincare segment in India
Source: Euromonitor - http://www.portal.euromonitor.com/portal/analysis/tab
Market share and Growth rate of Nivea India
2014 2015 2016 2017 2018 20190.05.0
10.015.020.025.030.035.040.045.050.0
0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%10.0%
Nivea in India
Market size growth
Years
Mark
et
size
(U
S m
n$)
Gro
wth
rate
NIVEA - segmentation
Segmentation is done on the following basis:
NIVEA has products within
its range for everyone – from
kids to young men & women to
mature & old people.
It is a brand that looks after
the personal and skincare
needs of people.
In India NIVEA mostly
concentrates on Tier 1 cities. So in India it is
majorly an urban skin care
product.
NIVEA falls in the category of
lifestyle products.
People feel good and llok
good after using the products.
Demographic
Psychographic
Geographic
Behavioral
NIVEA –Target customers
MEN WOMEN
Age >33 26-32 18-25 >33 26-32 18-25
Income High Medium Low High Medium Low
Price Sensitivity
Low Medium High Low Medium High
Life Style High High Medium High High Medium
NIVEA - Positioning
NIVEA India began operations in 2006. The challenge for the company is that everyone associates NIVEA with the blue tin and as a rather traditional skincare product. While the company wants to be known as a conventional, trusted brand synonymous with the blue tin packaging, it also wants the consumers to know that NIVEA is contemporary and modern with specialized skincare solutions.
NIVEA is introducing many mass premium and premium products that go beyond mosturising and fairness. NIVEA Visage range for example.
Positioning ladder
Attributes
Skincare product
NIVEA products make the skin more supple, younger
looking, and lighter. (according to product
type)
‘NIVEA cares for your skin’ encapsulates the
brand value
Functional Benefit
Emotional Benefit
Value
Reliable, Quality, User – friendly, Value for money
NIVEA – Perceptual Map
NIVEA
LorealDove
Olay
The Body Shop
Chanel
Fair & Lovely
Clean & Clear
Rexona
Low
Price
Hig
h P
rice
High Quality
Low Quality
Product
Core values of the brand are : Security, Trust, Closeness and Credibility.
NIVEA focusses heavily on market research to develop new products that cater to the growing needs & changing preferences of its target market in different regions.
While NIVEA cream remains the brand’s signature product, the range now encompasses several sub brands which cater to different segments of the market so that customers can choose from amongst the sub brands according to their personal needs, age and maturity.
The Company now has over 500 different products under its umbrella brand.
NIVEA – Product Categories
NIVEA
Skin Care
NIVEA Cream
NIVEA Body
NIVEA Hand
NIVEA Sun
Face Care/ Cosmetics
NIVEA Lip care
NIVEA Visage
NIVEA for Men
NIVEA Vital
NIVEA Beaute
Personal Care
NIVEA Deodorants
NIVEA healthcare
NIVEA Bath care
Products
NIVEA lip care NIVEA Whitening
NIVEA Men Range
NIVEA Sun care range
NIVEA Deodorants
NIVEA Shampoo
PRICE
NIVEA has today positioned itself as the skin care brand for the entire family. To support this image, it offers its quality products at affordable price points. Further, NIVEA also offers promotional discounts to stay competitive in the market and to attract consumers.
Keeping in line with the main segment that it caters to (mass premium segment) the prices of some of its products are given below:
Product Price range (INR)
NIVEA bath gels (250ml)
150 - 200
NIVEA Creams (100 ml)
100 - 150
NIVEA lotions (400 ml) 300 - 400
NIVEA Deodorants (150 ml)
150 - 200
Product Price range
NIVEA Face washs (150 ml)
100 - 200
NIVEA lip balms (4.8 gm) 100 - 150
NIVEA after shave (100 ml)
150 - 200
NIVEA sunscreen lotions (75 ml)
200 - 250
Place
NIVEA India being a relatively new facility in the country currently focusses only on the top 30 – 35 cities. The company sticks to its mass premium image and wants to consolidate its business around this. The focus of the company is not on tier-II and III markets for the time being. But, in the long run, the company will tap these segments. Nivea cream, for example, is distributed in smaller towns and cities too, but the company does not distribute it directly in these markets.
NIVEA products are sold through the traditional mom & pop retail stores. It has a heathy presence in modern trade (mainly super – markets). It also sells through the chemist distribution.
Nivea is currently importing most of its products from Germany and Thailand but they are evaluating opportunities for local production since they do pay a high import duty and local manufacturing would lead to lower consumer prices and reduce dependence on imports. But there are no immediate plans for the same and local manufacturing could be some time away.
Promotion
Nivea has a strong marketing heritage, with campaigns as far back as the 1920s focusing on many of the benefits and values that the brand still stands for today. Nowadays, each of its sub brands is also supported by a fully integrated multi-media strategy, which includes sampling, direct marketing and ambient media. Education goes hand in hand with many campaigns, as Nivea sees it as its responsibility to promote skin protection and the association between healthy skin, general fitness and well-being. This strategy of educating the consumer through promotion has helped Nivea build new markets, such as the male skincare segment.
Whilst this may prove costly in the short term, long-term investment in the skincare sector serves to consolidate Nivea's position as a leading skincare manufacturer and a source of valuable advice that inspires consumer trust and loyalty.