Nivea is widely known especially in skin care and beauty products, its popularity derives from its being

effective to the consumers and having well organize product line which appropriate to their target consumers. As how they did when they created and developed a product line that is called Nivea for Men, these are skin care products that are specialize for the male consumers. Nivea more improve and Nivea for Men become more popular because of involvement in sports and especially in football, their way of promoting of their products to become popular among men. They promoted the new launches of product through a mixture of above-the-line and below-theline promotion. Nivea for Men supported football events to have a positive relationship with men, and to create a stronger brand affinity for it among men. And except from having good way and idea of promotion Nivea brand has always stood for good quality products that are reliable, user-friendly and good value for money. The brands core values are security, trust, closeness and credibility. In summary Nivea have a good marketing plan, well planed strategies and tactics to deliver its objective and stated goal. Nivea has a clear, concise and simple marketing plan as what marketing plan exactly is. Nivea has established its target consumer and determine what is it that they want, it is Nivea for Men.

Nivea strategy Presentation Transcript

1. An Ode to Niveas Success Presented By Vivek Sharma R.N. 06 PGPIMC (2006-08) 2. Introduction o Nivea is a large global skin- and body-care brand. o It is owned by German company Beiersdorf. o The brand started in 1911, when company developed a water-in-oil emulsifier as a skin cream with Eucerit. 3. Introduction o Nivea presents 14 product categories in 150 countries. o Nivea was the market leader in: Skin cream and body lotion category in 28 countries. Facial cleaning category in 23 countries. Facial skin care category in 18 countries. Suntan products in 15 countries. o Nivea having good brand image and value because it was present itself to be a local origin. 4. Products Category of Nivea o Face care o Mens care o Nivea soft o Nivea cream o Body care o Lip care

Sun care Deodorants 5. Market Leadership o Leadership status presented a superior financial performance, trust and reliability. o Nivea having 15% market share in the global skin care products market. o In 1991 - 2001, Nivea increased their double digit growth rates every year. o In 2001, Nivea generated the revenue of 2.5 billion. o In 2001 Nivea increase the revenue 4.4%. 6. Question 1 o Why did Beiersdorf decide to extend the brand to different product categories? In the light of Beiersdorfs brand extension of Nivea, critically comment on the pros and cons of adopting an umbrella branding strategy. 7. Answer 1 o Beiersdorf extend their brand to different parts because They want to increase their market share and brand value. They want to fulfill their customer needs and desires. They want to Worldwide uniform appearance. They want to reduce their risk factor. They want to reduce their Advertising budget. They want to immortal their brand name in the mind of customer. They also want to capture the young generations. They want to introduced their new innovative technologies. 8. Pros of Adopting Umbrella Branding o It will provide the strength for the mother brand. o It will also provide the personal identity of the mother brand. o It will also creating the presence in customers mind. o It will also helping the new brand for easily stabile in the market. 9. Pros of Adopting Umbrella Branding o It will also helping to reduced the budget of advertising and risk factors. o It will also creating awareness of new product in the mind of customer with the using old branding. o It will also increasing the creativity and entrepreneurial expertise of the company. o It will easy acceptance in trade. 10. Cons of Adopting Umbrella Branding o The cons of umbrella branding is failure of sub brand can create the negative impact on the sales of the entire range. o On the other hand it will also extend the mother brands personal identity. o The mother brand also lost its core equity. 11. Question 2 o What are the core values of the Nivea brand? What type of brand extension framework did Beiersdorf develop to ensure that these core values did not get diluted? 12. Answer 2 o Core values : The core values of the Nivea brand is Caring/ protection the skin

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Fulfill the need of customer Natural (not using animal fat Freshness Mild/skin friendly Pleasant fragrance Reliable brand High quality