Growing & Sustaining Brand Equity

Submitted By:

Abhinav RishiRahul PearceRam Mishra

Ravish AnandVishal Sawlani

Objectives

Understand NIVEA Background Understand Sources of Brand Equity

for NIVEA Understand how NIVEA grew and

sustained its Brand Equity through Brand extensions

Look at NIVEA’s Brand Health and Future Challenges

Background

NIVEA comes from Latin word ‘nives’ meaning snow. Name was adapted to reflect the snow white colour of the cream

First introduced in German market in 1911 Industrialization led to the emergence of mass markets & branded products

which Women began to realize the importance to look good and need of product to

care for and beautify the skin Was subsequently launched in US (1922), South America & other parts

of world (1926) First cream to offer both skin care and protection at reasonable price

owing to its water-in-oil emulsion formula The current blue packing with white lettering was standardized in 1924 NIVEA Crème was the flagship product Initially NIVEA brand was restricted to NIVEA Crème, Milk, Soap & Sun During 1970s and 1980s the NIVEA brand name was extended to

include a full range of skin care and personal care products Over time, these product lines established themselvs as ‘sub-brands’ –

independent yet connected to the core brand of NIVEA Crème. Sales of NIVEA grew by $ 1.6 billion between 1990-2001

Sources of Brand Equity

Brand Identity – “caretaker of skin” Core Brand Associations “mildness &

caring” In line with the key skin needs of consumers Projected reliability, honesty and quality Generated confidence & goodwill

Brand Associations fit with the value of consumers Desire of fairness, belonging and openness

Became synonymous with protection & care for skin

Brand Strategy to overcome the first competitive challenge

NIVEA held about 35% share in Europe at the start of 1970

Study indicated that NIVEA projected an “older” image as opposed to the dynamic, young and modern images of competitors

Introduced larger sized units Altered the distribution strategy by shifting from

special line outlets to food outlets Increased level of promotional activities with

trade and within stores Brand Philosophy centered on maintaining the

“universality” of brand

The company developed marketing campaigns to nurture core NIVEA associations while widening their applicability and enhancing their meaning via sub-brands

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

This reinforced and elaborated on the image of NIVEA as a skin care specialist

NIVEA Visage was considered the primary sub-brand to upgrade NIVEA’s image into the 1990s

This was because facial skin care represented 75 percent of the European skin care market and was closely related to NIVEA’s string association of “general skin care” from NIVEA crème.

Brand Extensions

Apart from strengthening the core brand of NIVEA crème, BDF’s objective was to use the strength of NIVEA brand and introduce new products

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

To clarify new brand extensions, company established 7 guidelines that a new product must follow

1. Meet a basic need2. Offer special care/mildness of Nivea Crème3. Be simple & uncomplicated4. Not offer to solve only a specific problem5. Maintain a leading position in terms of quality6. Offer product at a reasonable price7. Offer broadest possible distribution

Brand Portfolio

NIVEA for Men introduced in 1980, it was NIVEA’s first product to target men Embodied NIVEA brand extension requirement of product innovation with

brand continuity First after shave lotion to provide both alcohol cleanser and moisturizer for

face Advertisements emphasized mildness and caring of NIVEA as their

distinguished customer benefit Tag Line “Less Alcohol, More Shave”

By 1998, the brand portfolio was considerably larger and included the following product class groupings : Skin Care▪ NIVEA Crème – flagship brand. Introduced in 1911▪ NIVEA Soft – lighter skin cream distinct from NIVEA crème. Introduced in 1994▪ NIVEA Milk – Moisturizing milk. Introduced in 1963▪ NIVEA Lotion – Moisturizing lotion. Introduced in 1986▪ NIVEA Sun – Sun care products. Established in 1930s▪ NIVEA Baby – Baby care products. Introduced in 1970s▪ NIVEA Hand – for moisturizing, anti-ageing and nourishing of hands. Introduced in

1998

Face care/cosmetics▪ NIVEA Visage – Mild face cleanser. Introduced in 1982▪ NIVEA Vital – For mature skin (women over 50 years of

age). Introduced in 1994▪ NIVEA Beaute – Color cosmetics category. Introduced

in 1997▪ NIVEA Lip – Lip care products▪ NIVEA for MEN – After shave balsam. Introduced in

1980 Personal Care▪ NIVEA Deo – Deodorant products▪ NIVEA Bath care – skin related personal care.

Introduced in 1993▪ NIVEA Hair Care – entire care for frequently washed

hair. Introduced in 1983

Branding Strategy

Started standardizing the marketing campaigns for all the sub brands in mid 1990s

The models and language changed as per local tastes but the central content remained the same

Company also printed also printed a branding booklet for internal branding. This detialed Basic info about NIVEA’s brand identity, core values, vision, mission,

success factors and role of sub-brands Provided guidelines for products, packaging, communication,

promotion, public relations, direct marketing and pricing “Key anchor” for all branding decisions

Periodic mailers to consumers that contained product samples and information, coupons and survey

Published two magazines, one for adults called “more time for myself” and one for youngsters called “About you” which contained a wealth of information about NIVEA products

Distributed blue beach balls on European beaches which helped to enforce NIVEA’s image of “Caretaker of skin” in a fun way

Blue Santa Clause during festival season distributed NIVEA product in European markets

NIVEA Clubs – which offered a quarterly magazine, 4-6 product samples and a birthday gift to members for annual membership of $ 10

Arranged home parties (similar to tupperware parties) in Austria In association with hospitals, sponsored young mothers in ward by

sending “care packages” of NIVEA products Nivea.com – global website which provided all details about the

company and new products New Market Rollout Guidelines – 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

Strategic Brand Models - CBBE Model

Salience

Performance

Imagery

Judgments

Feelings

Resonance

• Attachment• Community

• Warmth• Fun

• Heritage• For Family• Universal Applications

• Credibility• Superiority

• Quality• Mild & Pure

• Caring & Protective

• Multi forms and purposes

NIVEA Strategic Brand Models – Mind Map Model

Mild

Care

Universal

Simple

Pure

Reliable

Gentle

Protective

Scent/Feel

Value

Blue/White

For Family

Overall Brand Health & Future Challenges

At beginning of 1990s, company had a strong brand which it leveraged across various sub-brands

Throughout the decade, NIVEA nurtured its sub brand and moved into additional market by launching new sub-brands

The company’s sub-brand strategy yielded remarkable results

Between 1990 and 2000, every NIVEA sub-brand experienced sales growth and gained market share

As the number one skin and face brand in the world, NIVEA has maintained an enviable position

Challenges Continue to find new markets and develop new markets Ensure NIVEA image is enhanced by new developments Determine where to invest the brand equity it had worked so

hard to achieve

Thank You !!!