V Submitted By:

Abhinav Rishi
Rahul Pearce
Ram Mishra
Ravish Anand
Vishal Sawlani
V Onderstand NIVEA Background
V Onderstand Sources of Brand Equity for
NIVEA
V Onderstand how NIVEA grew and sustained
its Brand Equity through Brand extensions
V Look at NIVEAǯs Brand Health and Future
Challenges
V NIVEA comes from Latin word Ǯnivesǯ meaning snow. Name was adapted
to reflect the snow white colour of the cream
V First introduced in German market in 1911
½ Industrialization led to the emergence of mass markets & branded products
which
½ Women began to realize the importance to look good and need of product to
care for and beautify the skin
V Was subsequently launched in OS (1922), South America & other parts of
world (1926)
V First cream to offer both skin care and protection at reasonable price
owing to its water-in-oil emulsion formula
V The current blue packing with white lettering was standardized in 1924
V NIVEA Crème was the flagship product
V Initially NIVEA brand was restricted to NIVEA Crème, Milk, Soap & Sun
V During 1970s and 1980s the NIVEA brand name was extended to include a
full range of skin care and personal care products
V Over time, these product lines established themselvs as Ǯsub-brandsǯ Ȃ
independent yet connected to the core brand of NIVEA Crème.
V Sales of NIVEA grew by $ 1.6 billion between 1990-2001
V Brand Identity Ȃ Dzcaretaker of skindz
V Core Brand Associations Dzmildness & caringdz
½ In line with the key skin needs of consumers
½ Projected reliability, honesty and quality
½ Generated confidence & goodwill
V Brand Associations fit with the value of
consumers
½ Desire of fairness, belonging and openness
V Became synonymous with protection & care for
skin
V NIVEA held about 35% share in Europe at the
start of 1970
V Study indicated that NIVEA projected an Dzolderdz
image as opposed to the dynamic, young and
modern images of competitors
V Introduced larger sized units
V Altered the distribution strategy by shifting from
special line outlets to food outlets
V Increased level of promotional activities with
trade and within stores
V Brand Philosophy centered on maintaining the
Dzuniversalitydz of brand
V The company developed marketing campaigns to
nurture core NIVEA associations while widening their
applicability and enhancing their meaning via sub-
brands
V The role of other sub brands was to continue to cater
to specific skin care and personal care needs of their
target market segments and contribute back to their
particular product class associations
V This reinforced and elaborated on the image of NIVEA
as a skin care specialist
V NIVEA Visage was considered the primary sub-brand
to upgrade NIVEAǯs image into the 1990s
V This was because facial skin care represented 75
percent of the European skin care market and was
closely related to NIVEAǯs string association of
Dzgeneral skin caredz from NIVEA crème.
V Apart from strengthening the core brand of NIVEA crème,
BDFǯs objective was to use the strength of NIVEA brand
and introduce new products
V Long Term Objective - evolve NIVEA from a skin crème
brand into a skin care brand by providing a range of new
products that would both complement NIVEA Crème and
broaden the meaning of the NIVEA brand name
V To clarify new brand extensions, company established 7
guidelines that a new product must follow
1. Meet a basic need
2. Offer special care/mildness of Nivea Crème
3. Be simple & uncomplicated
4. Not offer to solve only a specific problem
5. Maintain a leading position in terms of quality
6. Offer product at a reasonable price
7. Offer broadest possible distribution
V NIVEA for Men
½ introduced in 1980, it was NIVEAǯs first product to target men
½ Embodied NIVEA brand extension requirement of product innovation with
brand continuity
½ First after shave lotion to provide both alcohol cleanser and moisturizer for
face
½ Advertisements emphasized mildness and caring of NIVEA as their
distinguished customer benefit
½ Tag Line DzLess Alcohol, More Shavedz
V By 1998, the brand portfolio was considerably larger and included the
following product class groupings :
½ Skin Care
* NIVEA Crème Ȃ flagship brand. Introduced in 1911
* NIVEA Soft Ȃ lighter skin cream distinct from NIVEA crème. Introduced in 1994
* NIVEA Milk Ȃ Moisturizing milk. Introduced in 1963
* NIVEA Lotion Ȃ Moisturizing lotion. Introduced in 1986
* NIVEA Sun Ȃ Sun care products. Established in 1930s
* NIVEA Baby Ȃ Baby care products. Introduced in 1970s
* NIVEA Hand Ȃ for moisturizing, anti-ageing and nourishing of hands. Introduced in 1998
½ Face care/cosmetics
* NIVEA Visage Ȃ Mild face cleanser. Introduced in 1982
* NIVEA Vital Ȃ For mature skin (women over 50 years of age).
Introduced in 1994
* NIVEA Beaute Ȃ Color cosmetics category. Introduced in 1997
* NIVEA Lip Ȃ Lip care products
* NIVEA for MEN Ȃ After shave balsam. Introduced in 1980
½ Personal Care
* NIVEA Deo Ȃ Deodorant products
* NIVEA Bath care Ȃ skin related personal care. Introduced in
1993
* NIVEA Hair Care Ȃ entire care for frequently washed hair.
Introduced in 1983
V Started standardizing the marketing campaigns for all the sub
brands in mid 1990s
V The models and language changed as per local tastes but the
central content remained the same
V Company also printed also printed a branding booklet for internal
branding. This detialed
½ Basic info about NIVEAǯs brand identity, core values, vision, mission,
success factors and role of sub-brands
½ Provided guidelines for products, packaging, communication,
promotion, public relations, direct marketing and pricing
½ DzKey anchordz for all branding decisions
V Periodic mailers to consumers that contained product samples and
information, coupons and survey
V Published two magazines, one for adults called Dzmore time for
myselfdz and one for youngsters called DzAbout youdz which
contained a wealth of information about NIVEA products
V Distributed blue beach balls on European beaches which helped to enforce
NIVEAǯs image of DzCaretaker of skindz in a fun way
V Blue Santa Clause during festival season distributed NIVEA product in
European markets
V NIVEA Clubs Ȃ which offered a quarterly magazine, 4-6 product samples
and a birthday gift to members for annual membership of $ 10
V Arranged home parties (similar to tupperware parties) in Austria
V In association with hospitals, sponsored young mothers in ward by
sending Dzcare packagesdz of NIVEA products
V Nivea.com Ȃ global website which provided all details about the company
and new products
V New Market Rollout Guidelines Ȃ Flagship product NIVEA Crème was
launched first in new markets followed by cosmetic products. Once the
NIVEA brand got established, sophisticated products were launched. This
guideline seeked to ensure that a national subsidiary had the expertise and
experience necessarry to give proper support to NIVEA Beaute
 X Attachment
XCommunity

  

X Credibility
XSuperiority XWarmth

 
 XFun

X Quality X Heritage
X Mild & Pure XFor Family
XCaring & Protective  
 
 XOniversal
Applications

X Multi forms and purposes 


 Care
Value Oniversal

Scent/Feel Mild

Simple Protective

Blue/White Reliable

For Family Gentle

Pure
V At beginning of 1990s, company had a strong brand which
it leveraged across various sub-brands
V Throughout the decade, NIVEA nurtured its sub brand and
moved into additional market by launching new sub-
brands
V The companyǯs sub-brand strategy yielded remarkable
results
V Between 1990 and 2000, every NIVEA sub-brand
experienced sales growth and gained market share
V As the number one skin and face brand in the world,
NIVEA has maintained an enviable position
V Challenges
½ Continue to find new markets and develop new markets
½ Ensure NIVEA image is enhanced by new developments
½ Determine where to invest the brand equity it had worked so
hard to achieve