Nivea case Study

1. NIVEA:
MANAGING A BRAND
HIERARCHY
Section A ; Group 9
Ajay Bharathi G
FT12306
Harendra Singh
FT12127
Kushagra Prasad FT12227
Rohit Agrawal FT12351
Tushar Arora FT12168

2. WHAT is BRAND Hierarchy
 “A brand hierarchy is a useful means
of graphically portraying a firm’s
branding strategy by displaying the
number and nature of common and
distinctive brand elements across the
firm’s products, revealing the explicit
ordering of brand elements”
Section A GROUP 9 2

3. Development of NIVEA brand
 1912: NIVEA Crème introduced into the German
market.
 1912-1970: Range of products (48 new products)
introduced and expanded under Nivea brand -
maintaining a mono-product philosophy .
 1970 - 1993 :Stiff competition from
Ponds, Henkel, Unilever.
 NIVEA – primarily through NIVEA crème had
aquired a unique, widely – understood brand
identitiy as a “caretaker” of skin.
Section A GROUP 9 3

4. Development of NIVEA brand
 Sales grown from $826 million in 1994 to
$1831 in 2000, 121.6% growth
 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
Section A GROUP 9 4

5. BRAND ASSOCIATION
 CARE
 Protection
 Mildness
 Gentleness
 Trustworthy/Reliable
 Pure
 Simple
 Multipurpose/Universal
 For Family
 Heritage
Section A GROUP 9 5

6. 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
Section A GROUP 9 6

7. CBBE PYRAMID
RESONANCE:
Attachment
Community
JUDGEMENT:
Credibility Superiority
FEELINGS: Warmth
Fun
PERFORMANCE: Quality, Mild &
Gentle, Caring & protective pure
IMAGERY: Heritage, For
Family, Universal Application
SALIENT: Multi-forms and purposes
Section A GROUP 9 7

8. EXTENDING THE NIVEA
BRAND
 GUIDELINES:
 Meet basic needs: clean/protect.
 Offer the special care/mildness benefits
of NIVEA crème.
 Be simple.
 Not offer to solve a specific problem.
 Offer the broadest possible distribution.
 Balanced cost benefit relationship.
 Maintain a leading position in terms of
quality.
Section A GROUP 9 8

9. NIVEA BRAND PORTFOLIO
NIVEA
SKIN CARE FACE
Nivea crème CARE/COSMETICS
Nivea Visage PERSONAL CARE
Nivea Body
Nivea Vital Nivea Deo
Nivea Soft
Nivea Beaute Nivea Bath care
Nivea Hand
Nivea Lip care Nivea Hair Care
Nivea Sun
Nivea Baby Nivea for Men
Section A GROUP 9 9

11. 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
Section A GROUP 9 11

12. Later Advertising
 Continued 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
Section A GROUP 9 12

13. 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.
Section A GROUP 9 13

14. LEARNINGS
 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.
Section A GROUP 9 14

15. Video
Section A GROUP 9 15

16. Section A GROUP 9 16