NIVEA

CASE STUDY PRESENTATION BY GROUP 2

Reg No.
SL.No. Name Group

1 X001-19 ABHISHEK KUMAR

2 X003-19 AJIT KUMAR
3 X018-19 RAJNEESH KUMAR
2
4 X022-19 SIDDHARTH SHIVAM
5 X025-19 VINAY BINU
6 X027-19 MUKESH PRASAD
HISTORY

 Nivea is brand of German company founded by Beiersdorf in 1882

 Patent for Medical plasters
 Beiersdorf Sold his company to Oscar Tropwitz in 1890.
 Oscar Tropwitz developed the worlds first stable skin care based on a water-in oil emulsion.
 Nivea derived from word Nix,Nivis meaning “Snow” or “of Snow”
 In 1914 company generated 42% of sales outside of Germany and doing business in 34 countries
 Positioning strategy was switched to keep up with the social changes of that time
 In 1963 introduces worlds first Liquid cream
 In 1980 introduced first after shave
 By 1990 Nivea was worlds leading skin care brand with a standardized global brand policy
 Extended product line into new areas like makeup, men's facial cream and deodorants.
 In only 10 years after standardizing its global brand policy sales had quadrupled and Nivea became Beiersdorfs largest
brand .
MARKETING STRATEGY

o Nivea continuously changes its products to make it in line with its core value.
o Standardised global brand policy while keeping local sentiments in check.
o Keeps pace with changing needs of the customers.
o Applies the principle of Point of difference.
o Always focuses on Research and development for new products that cater the growing needs
CORE VALUES

Care

Nivea
Core
Values
Trust Closeness
Segmentation
Geographic
Operating in various
countries and always
thinking of expanding in
new countries

Behavioral Demographic
Nivea has brand that Market Product for both men
looks after personal and Segmentation and women
skin care needs of
People

Psychographic
Big Range of products
for different groups
based on their need.
TARGETING AND POSITIONING

Target Market
 Target market for Nivea consist of all age groups of skin care

Positioning
 Develops innovative products to help individual obtain healthy skin care solution .
 Changed with social changes
PRODUCT HIERARCHY

Item Nivea Creme, Nivea Soft light Moisturiser, Deo N

Product Type Face Crème, body lotion, Deodorant, aftershave
I
V
Product Class
Skin care, face care and personal care

E
Product family Cosmetics

A
Need Family Beauty and care
NIVEA BRAND EXTENSION

Makeup
Products
(Deo, Beauty)

Hair Products
(Shampoo,
conditioner)

Hygiene Products
(Face/Hand wash)

Care Products
(Nivea Crème
Nivea Soft)
 BRAND EQUITY AND DEVELOPMENT

Relationship Resonance
What about you and me?
Continuous use and
no brand switching
Standardized global
brand policy
Response
What about you? Judgements Feelings
Wide range of product Trust, care and
Reliable and consistent Closeness

Meaning Performance Imagery

What are you ?
Improved visibility at point of
More convenient to use purchase having more inviting look
and feel

Identity Salience
Who are you?
Various Products
SWOT ANALYSIS

Strength Weakness
Global Brand awareness-
93%, Market leader in 46 Many products and
countries, Most trusted skin categories are not in line
care Brand in 12 European with the brand core value
countries

Opportunity
Innovation on products for
Threat
more convenience and user Segmented categories, such
satisfaction while catering as Deodorant
local needs.
Q1 . WHAT WERE THE KEY STEPS IN MAINTAINING NIVEA’S
LEADING POSITION IN THE GLOBAL FACIAL CARE MARKET ?

o Nivea Keeps on Changing its products through constant product innovation according to dynamic changing
market needs to match with its core value.
o It also changed its core values to keep up with social changes.
o Changed its logo ,Packaging , labelling to look modern and global.
o Identified new market by observing increasing needs of skin care for Men and came in that segment
o Kept on Expanding globally but always take care of adaptations according to local market needs . Brought trust of
a well known brand as well as customized services along with its products.
o Identified new market by observing new needs and came up with products for that segment thus expanding its
product line .
Q2 . EXPLAIN THE CONNECTION BETWEEN CULTURAL NORMS AND
PRODUCT CHOICE . WHAT IS NIVEA’S STRATEGY IN RESPECTING
CULTURAL DIVERSITY WHILE PURSUING A GLOBAL BRAND STRATEGY ?

o Culture plays and important role in having a Product or Brand being accepted by its customer.
o For example in Asian Countries, facial products sold much better since they contained ingredients
promoting a fair complexion. Also, in Middle East, local fragrances like musk are used.
o At same time it brings reliability and trust for being global brand .

Product
Do not change
Adapt Product Develop New Product
Do not change Product
communication Straight Extension Product Adaptation

Product invention
Adapt Communication
Dual Adaptation
communication Adaptation
Q3 . DISCUSS NIVEA’S FUTURE . WHAT SHOULD BEIERSDORF DO NEXT
WITH ITS PRODUCT LINE ? WHERE IS THE FUTURE GROWTH FOR THE
BRAND?
Up Market Stretch
Up Market Stretch
o Nivea can stretch its product line in Niche market by going after high class
customer segment where sales may be less but profitability will be more
o Baby Care Products.
o Spa/Saloon

Down Market Stretch

o Nivea can introduce more SKUs at lower price points
o Nivea can expand more in emerging market
Down Market Stretch
QUESTIONS ?