Nivea case study - Questions:
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?
-largest cosmetic brand in the world
-Nivea Crème known as “universal”/multi-purpose skin crème worldwide
-“caretaker” of the skin
- a product that could be used by the entire family for any kind of needs
- brand associations: “care”, ”mildness”, ”reliability”, ”gentleness”, ”protection”, ”high quality”, ”feeling good”, “reasonably priced”
-Nivea women: clean, fresh and natural
Some of the Nivea`s core values could be: Nivea became a truly global product, and its product are same everywhere; also they were not using animal fats in their product ,so their product is made off natural ingredients; in time Nivea reached a strong brand personality which is emotionally involving, based on childhood, trust and love; Nivea products meet consumer needs; Nivea is the mass market brand which offers the largest skincare assortment and always concern of keeping its brand young, attractive, energetic and sympathetic; another reason of success was that the brand has always been closely linked with consumer.
Name: Nivea ~ Nivius meaning \"Snow White\"(The brand has derived its name from the Latin word)
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.
NIVEA's visual identity is world-famous known as 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 = sympathy, harmony, friendship and loyalty
White = external cleanliness as well as inner purity
Blue and White = ideal for honest and appealing brand
Product: Tag Line
Nivea Crème - “Nivea, The Crème De La Crème”; “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 Woman's Age By Her Hands… Now You Can Lie A Little”
Nivea Beaute - “Colors That Care”
Nivea Sun - “Where It's Green, It Won't 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 Skin”
Skin Care—NIVEA Body, NIVEA Visage, NIVEA for Men, NIVEA Sun, NIVEA Baby, NIVEA Crème, NIVEA Vital, NIVEA Soft, NIVEA Hand, and NIVEA Lip.
Personal Care—NIVEA Deo, NIVEA Beauty, NIVEA Hair Care, NIVEA Bath Care, and NIVEA Intimate Care.
2. What are the pros and cons of the sub-brand strategy? Should Nivea run a corporate brand or umbrella as for all of their products?
Pros of the sub-brand strategy:
-same brand supports several products in different market.
-main advantage of using umbrella branding strategy is the capitalization on one single name.
- helps new products to penetrate the market.
-advantage in brand awareness and brand recall.
-allows the core brand to be nurtured by association with products with which it was not previously associated. Continue to nurture core Nivea associations while widening its applicability.
-probably has an implication in helping companies to reduce their promotional and advertisement cost.
-each sub-brand had its own personality and developed its own set of brand associations that were consistent with, but independent of, the Nivea crème core brand image. Also, for each sub-brand there is allocated a separate budget.
- they created a hierarchy from core brand in order to take care of specific skin and personal care needs of their target market segments
-through the sub-brand strategy Nivea wants to meet all consumer needs
- reinforce and elaborate on the image of Nivea as a skin care specialist
-‘Halo' effect of the Nivea name can be an advantage as long as it inspire –Trust, care, mildness, fair price
-it is very important that the core brand to be managed well, cause if the brand is not managed well, this fact could be a threat for its associate brands.
-if the core brand is not stronger than its extension, it may destroy the brand image(but it don`t seems t be the case of Nivea)
-sometimes the brand communication strategy of core brand affects the extension brand, the message that the core brand is communicating is not clear.
-could be complicated, risky to send a confusing set of messages about what the Nivea represented
-cost of developing several new brands in a limited time period would be considerable
The main reason to extend the brand to different product categories that Beiersdorf wanted to go globally with Nivea brand, so they extended their product categories. Geographical condition of various countries also motivated Beiersdrof to extend the brand Nivea. Beiersdrof wanted to increase the brand equity of Nivea brand, that's why they adopted the strategy of product category extension.
As the competition increased in skin care market it was really necessary for Nivea to extend its brand for being a-step-ahead of the competition.
In order to tap all age groups of consumer both male and female and as well to meet all the consumers needs, it was essential for Nivea to extend its brand.
3. Discuss the risks and benefits of Nivea`s brand extension into new product categories and customers. How have Nivea`s executives managed this extension? Have they missed opportunities such as perfume or foot care? Are there certain boundaries that Nivea should not cross?
To maintain the brand extension framework, Nivea made sure that product extension that they are offering to the consumer is really adding value or not. They were offering their consumer a innovative product, so that consumer can try their product. To differentiate their product from competitors, Nivea adopted strategy of product variants, so that they can tap every consumer expectations and market trends from the all corner of the world. Also, they believed in continuity and innovation, so then they created new improved products for each category. Still not missed the opportunities of perfume or foot care but have a competitive edge of the large market share and trusted brand so it can go for the big move.
Extending the brand-Set of Guidelines:
1. Meet a basic need: clean & / or protect
2. Offer the special care / mildness benefit of Nivea Crème
3. Be simple & uncomplicated
4. Not to offer to solve only a specific problem
5. Maintain a leading position in terms of quality
6. Offer the product at a reasonable price so the consumer perceives a balanced cost-benefit relationship
7. Offer the broadest possible distribution
Benefits of extension could be the following:
• Long term objective: (Skin crème-> 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
Risks of extension:
• Can confuse/ frustrate consumers (complicated, risky)
• Can fail and hurt the parent brand image (Nivea crème)
• Can succeed but cannibalize sales of parent brand
• Can succeed but diminish identification with any one category
• Can dilute brand meaning
4. Should Nivea pursue a Men`s grooming category? Does the company risk alienating its core consumer base of families and women or is it this a natural next brand extension?
Nivea for Men line include:
• Two new fairness products - a Whitening Moisturizer and Multi-White Whitening Facial 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 care)
I think it could be a good idea for Nivea to pursue the men grooming category, taking into accout that all sub brands are catering to some specific need, so it won`t hurt the company's brand image of unisex. This is a result of innovation: a complete care for men's skin for the metrosexual men. Men's skin care market is growing now and Nivea took the advantage of first move and its image of quality and care .
5. What would you do now? What recommendations would you make to Nivea concerning next steps in their marketing program?
Nivea is still growing in emerging market, but it still has a tough competition with other skin care brands. Probably they are planning to become a global brand , so they have to adapt its products for each target market, country, consumers(adapt for the consumer profile of the nation) etc. but by not sacrificing their core brand image of quality and care.
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