Strategic Brand Management NIVEA MANGING A MULTI CATEGORY BRAND

Strategic Brand Management NIVEA MANGING A MULTI CATEGORY BRAND - Transcript

NIVEA MANGING A MULTI CATEGORY BRAND

Group 5 Amit Tyagi Jagpreet Singh Pallavi Anand Punit Paruthi Sameer Jain

Development of the Brand 1912 1970


Industrialization led to the emergence of mass markets and branded articles Women began to appreciate greater degree of physical appearance Nivea cr me Bright yellow tin unique water in oil emulsion first to offer






Skin care Protection Reasonable price







Nivea cr me introduced into German Market and subsequently throughout Europe 1912 Early advertising Simple plain informative Mono product philosophy





Development of the Brand 1912 1970


First Nivea hair care product hair milk 1920 First Cinema advertising Nivea cr me introduced in United States 1922 Blue White tin 1925 Other primary products body soap powder sun care lotion oil Nivea cr me introduced in South America 1926 Nivea Boys Girls Campaign













Development of the Brand 1912 1970


Nivea shampoo NIVEA hair fixative and NIVEA brilliantine 1931 Multi purpose universal skin creme Nivea nut oil 1934 Nivea blue white campaign The characteristic NIVEA blue and white color scheme of the packaging and the print advertising was consequently used in early film advertising Again the main themes were people actively enjoying their lives Nivea children s soap 1936









Development of the Brand 1912 1970


Nivea cr me introduced in China 1939 During and after the World War 2 the German company Beiersdorf lost the trademark rights to NIVEA in many countries The development of the products and the advertising was now largely in the hands of the different local owners However Beiersdorf quickly began to buy back the trademark rights and was able to regain the final one in the 1990s Nivea Baby care range extended to many European countries Select print Outdoor advertising









Development of the Brand 1912 1970


NIVEA Milk introduced It presented the quality and care of the NIVEA Creme in a liquid form Providing moisturizing skin care for the whole body it was the first product of the NIVEA assortment especially developed for body care 1963 NIVEA ball the inflatable beach ball in the classic NIVEA design The campaign with the ball was also the first image campaign focusing on the NIVEA brand rather than the individual products



Nivea s first competitive challenge 1970 s


Nivea held over 35 multi purpose market in Europe Henkel Khasana launched Cr me 21 multi purpose cr me 1972




Focus on self service outlets to target mass market



BDF performed a study on Nivea image


High degree of goodwill Reliability quality honesty Older image not viewed as young dynamic modern







In response BDF developed two pronged strategy


Stabilize the strong historical market position of Nivea Cr me Transfer Nivea Cr me goodwill to other product classes





Brand Revitalization Aggressive ad campaigns


Nivea the Cr me de la cr me


Launched in 1971 Series of 7 ads Impressively defended NIVEA Cr me s leading market position The advertising unselfconsciously underlined that NIVEA Cr me combines all aspects of skincare for the best in a single product clearly stating the competence quality and honesty of NIVEA





Only Me


It ran in Europe from 1973 1988 with over a hundred different themes Emphasized the only me quality of NIVEA combining all aspects of skin care in the best possible way in a single product NIVEA as a day cream a night cream as a cream for different weather conditions and as a moisture and a protective cream Objective was to negate competitor s claims for special cr mes by positioning Nivea Cr me as the cr me for every special need





Nivea Universe Umbrella Branding

Managing a Global Brand


Largest cosmetics brand in the world First introduced in the German Market in 1912 Introduced throughout Europe in 1912 United States in 1922 South America and other parts of the world in 1926 By 1970 Nivea held over 35 percent of the multi purpose cr me market in Germany and a majority market share in Europe Nivea products held strong market positions throughout Europe especially in smaller volume markets where advertising costs were lower Nivea s highest percentage market penetration was in Belgium Switzerland and Austria Germany remained BDF s largest volume market











Managing a Global Brand


Advertising


In each market Cosmed implemented Perfect Local Execution with local advertising agency affiliates Models Language was different but content remained consistent Pictures travel words don t In some Latin American South American and Asian Pacific markets the ads used different models to reflect the local culture However advertising formats remained constant Blue Bible











Managing a Global Brand


Brand Building Activities


Largest National direct marketing campaign in France Periodic mailings that contained product samples and information coupons and a survey Blue Nivea Bleach ball distributed at European beaches each summer Blue Santa Claus in Germany double decker blue promotional bus in Russia Nivea Club in Austria Nivea Care Center in South Africa House of Nivea in Hamburg Beauty parties in Austria Workshops for body and soul in Germany UK and US















Marketing Guidelines mid 1990 s


Blue Manifesto


Designed for Nivea Cr me



Nivea sub brands adopted design elements of Nivea Cr me ads


Block letters were used to identify the product Cursive lettering to highlight specific product attributes





Practiced perfect local execution


Models or languages may change so that Nivea brand appears local Content remains consistent





Blue Bible


Basic information about Nivea s brand identity vision mission success factors and role of its sub brands Guidelines for product packaging communication promotion public



Branding Strategy


Blue Harmony Campaign


In the Nineties the spirit of the times changed and honesty return to family and the reality of honest feelings became important values Launched in 1992 captured wonderful moments of human togetherness They are impressions of tenderness trust and safety Real emotion was brought into the NIVEA Creme TV commercial Face to Face by an incident of a special kind Both actors Maya Saxton and Anthony Bernards fell in love during the filming The fact that real feelings were involved was so obvious that the impressive NIVEA commercial was awarded the Best Advertising Film Kiss 1993 prize









Branding Strategy


Beauty is Campaign


The campaign Beauty is was launched this week in Germany will cover 64 countries by mid 2008 aiming to create a unified brand appearance across all categories and all media The campaign includes TV



Branding Strategy


Direct Marketing


France


Database of more than one million consumers Periodic mails containing product samples and information coupons



Germany


Nivea magazines featuring


articles for the whole family Beauty advice decorating tips Information on Nivea products





Branding Strategy


Non Traditional Marketing


Nivea Beach Ball campaign


Company distributed blue Nivea beach balls on European beaches each summer Helped reinforce Nivea s image as a caretaker of the skin in a fun way





Blue Santa Claus in Germany Double Decker Nivea branded blue promotional bus in Russia Nivea Club in Austria






10 membership fee Quarterly magazine and birthday gift

Branding Strategy


Non Traditional Marketing


Nivea Care Center in South Africa House of Nivea Store in Hamburg Workshops for Body and Soul in Germany United Kingdom and United States






Small groups of women attended three day conferences at resort locations



Consumers in Austria could host parties and Nivea would pay for a beautician to visit with an assortment of Nivea products Hospitals and Young mothers in maternity wards




Care packages containing Nivea products Free product samples and informational brochures

Branding Strategy


Event Marketing


Each country had an event manager responsible for the events Sponsored various organizations in Europe




Beach lifesavers lifeguards Children s sailing programs Beach volleyball tour School education programs for safe sunbathing



Branded double decker bus


Travelled in concerts and other youth oriented events



Free with each Nivea Hand Anti Age Cr me Q10 Beauty advisor in house to help customers



Branding Strategy


Nivea com


Global website information about company and its history products markets beauty advice and games Designed with the blue harmony theme Customized websites with local content for each country Dedicated site for each sub brand Specialized beauty and skin care tips Viral marketing campaigns in early 2000 s Online sweepstakes chat rooms and promotions Bridget Jones the Edge of Reason in 2004















Brand Relationship Spectrum

Before 1990

After 1990

Skin Care Sub Branding


NIVEA LIP First introduced in 1902 Labello Focused on essentila care beauty care sophisticated care and performance care NIVEA SUN Launched in 1930 s 1970 s developed as an independent subbrand



Skin Care Sub Branding


NIVEA BABY Launched in 1970 s re launched in 1996 Included shampoos conditioners bathing soaps lotions powders 2005 Toddies first all purpose wipe for babies Soft cr me wipes wipes soaked in baby soft cream NIVEA MEN Started in 1980




Skin Care Sub Branding


NIVEA VISAGE


Introduced in 1982 as a face cleanser mildness

Skin Care Sub Branding


NIVEA SOFT


Introduced in 1994 Lighter than the heavier greasier feeling of Nivea Cr me Separate identity to prevent cannibalization of Nivea Cr me Launched first in UK with a marketing strategy called fast marketing 1 week intensive TV and print ads In 2004 2 sizes extensive sampling 2005 Mini tube for travelling













NIVEA VITAL


Introduced in 1994

Skin Care Sub Branding


NIVEA BODY


Introduced in 1996 Nivea Milk water in oil emulsion but in liquid form for entire bodyEssential Performance Pleasure dry skin Nivea protect oil in water and skin firming Lotion time emulsion daily care of normal skin re energize
Oil Milk and Lotion Products using Q10 Body lotion rice Lotus Ocean Breeze Spray Moisturize soften Shaving exfoliating night Relax refresh and



Properties


Products

Personal Care Sub Branding


Nivea Deo


In 1991 BDF extended presence in the personal care area with a line of deodorant products called Nivea Deo Marketed on the assurance of mildness and caring



Personal Care Sub Branding


Nivea Beaute


Second biggest brand launch after Q10 ingredient brand First appearance in color cosmetics Consistency with Nivea s core competency of care






Caring Slogan which said Colors that Care Packaging Deep blue hues



100 different SKUs High Fashion Design Halo Effect on overall brand






Product in high image cosmetics category Attracted new younger consumers to the brand

Nivea Beaute

Personal Care Sub Branding


Nivea Bath Care


Extended Nivea brand into skin related personal care categories Benefits




High quality mild caring benefits of Nivea brand Added emotional benefit of pleasure

Personal Care Sub Branding


Nivea Hair Care


Nivea s first hair care product launched in 1991 Hair care not viewed as skin related product line Not aligned with Nivea s key association as a skin care provider Maintain strong link to Nivea s core brand image








Pflege Shampoo Pflege Spulung



Products emphasized mildness and care qualities

Nivea Hair Care

Question 1 What is the brand image and sources of equity for the Nivea brand Does it vary across product classes How would you characterize their brand hierarchy

Brand Hierarchy

Keller s Brand Equity Model
Choosing Brand Elements Brand name Logo Symbol Character Packaging Slogan Memorability Meaningfulness Appeal Transferability Adaptability Protectability Brand Awareness Depth Recall Recognition Purchase Consumption Possible Outcomes Greater loyalty Less vulnerability to competitive marketing actions and crises Larger margins More elastic response to price decreases More inelastic response to price increases Brand Associations Strong Favorable Unique Relevance Consistency Desirable Deliverable Point of parity Point of difference Greater trade cooperation and support Increased marketing communication efficiency and effectiveness Possible licensing opportunities More favorable brand extension evaluations

Breadth Developing Marketing Programs Product Price Distribution channels Communications Tangible and intangible benefits Value perceptions Integrate push and pull Mix and match options

Leverage of Secondary Associations Company Country of origin Channel of distribution Other brands Endorsor Event

Nivea Brand Elements


Brand Names Nivea derived from nives meaning snow


Brand awareness


Simplicity and ease of pronunciation and spelling Familiarity and meaningfulness Differentiated distinctive and uniqueness



Brand associations


Snow gives an association of purity



URL s www nivea com designed with blue harmony theme


Each country has a localized website Each sub brand has a dedicated website Specialized beauty and skin care tips







Nivea Brand Elements


Brand Names Nivea derived from nives meaning snow


Slogans


Nivea the Cr me de la cr me Only Me Harmony in blue All that skin needs to live Nivea Visage Anti age Science in all confidence Nivea for Men Less alcohol more care Nivea Sun Where it s green it won t be red Nivea Hand Apparently you can tell a woman s age by her hands Now you can lie a little Nivea Beaute Colors that care




Packaging

Marketing Programs
Product



Skin Care




Creme Visage Baby Lip care Body Men Soft Hand Sun







Personal Care Bath care Beaute Deodorant Hair care Intimate











Marketing Programs


Pricing


Consumer price perceptions


Reasonable price so that consumer perceives a balanced cost benefit relationship



Setting prices to build brand equity


Value based pricing


Right blend of product quality product costs and prices that fully satisfies the needs of consumers and profit targets of the firm Right product at the right price





Place


Indirect channels


Selling through third party intermediaries such as agent or broker representatives wholesalers or distributors and

Marketing Programs Promotion



Blue Harmony Campaign Beauty is Campaign Direct Marketing Non Traditional Marketing Event Marketing









Secondary Brand Associations


Company


Biersdorf



Country of origin


Germany



Channel of distribution


Indirect channels retailers distributors



Endorsor


Robert Pattinson



Event


Children s sailing programs Beach volleyball tour





Brand Awareness


Nivea Cr me enjoys a high awareness as much as 99 in many mature markets

Brand Associations


Strong


Reliability High quality





Favorable


Gentleness Protection High quality Feeling good









Unique


Care Mildness



CBBE Model Nivea

Resonance
Credibility Superiority


Attachment Community


Judgme Feelings nts

Fun Warmth


Quality Mild Gentle Caring Protective pure


Performance

Imagery

Heritage For family Universal applications




Multi forms purposes Blue White Skin Care

Salience

Question 2 What are the pros and cons of the sub brand strategy Should Nivea run a corporate brand or umbrella ad for all of their products What is the role of the Nivea Cr me advertising Should it be changed

SUB BRANDING

PROS

CONS

Role of Nivea Cr me advertising


Niveaness was to be represented in the layout message and image of the ads Nivea cr me would have to incorporate the brand values timeless and ageless motherhood and a happy family honesty and trustworthiness mildness and quality Common emotion uniform Nivea logo consistent lettering and typeface Blue Harmony Blue Manifesto campaign Nivea sub brands adopted the design elements block and cursive combinations of the Nivea cr me ads Plays a role of a image carrier sets an example for other brands













FUTURE

Question 3 Discuss the risks and benefits of Nivea s brand extension into new product categories and customers How have Nivea s executives managed this extension Have they missed opportunities such as perfume or foot care

Extending the Nivea Brand

Reason to expand the brand

Category Line Expansion
Sub Brand Nivea Visage Category Expansion Liquid moisturizer Creme Day creme night cr me anti wrinkle anti age Comfort cleansing wipes Day cr me Night Creme Line Expansion

Nivea Vital

Wipes Creme Body Lotion

Nivea Body

Nivea Milk Nivea Lotion Body spray Whitening Creme Shimmer body firming rice lotus Moisturizing ocean breeze

Category Line Expansion
Sub Brand Nivea Sun Category Expansion Sun Lotion Sun Cream Line Expansion firming Moisturizing face cream After sun with Q10

Hair Cream uv protection Sun Oil Sun Spray Nivea for Men Face Scrub Face mask Toner Oil Control After shave balsm Shaving Foam Shaving Creme For kids

Category Line Expansion
Sub Brand Nivea Baby Category Expansion Wipes Shampoo Conditioner Bathing soaps Lotions Powder Creme Oil Sun protection Nivea Hand Creme Age control anti age Q10 plus Line Expansion Toddies soft cr me cleansing

Category Line Expansion
Sub Brand Nivea Deo Category Expansion Balsm Wipes Spray Compact Fresh anti perspirant aqua cool pure Sahara Gold Line Expansion sensitive

Nivea Beaute Lipstic Foundation Nail Polish Eye Liner Mascara Makeup Optimal 3in1 lash revolution Welvet Mat time balance Q10 Color calcium flex strong with bamboo

Category Line Expansion
Sub Brand Nivea Bath Care Category Expansion Body Lotion Soap Bar Shampoo Shower Foam Shower Gel Shower Oil Nivea Hair Care Milk Shampoo Pflege pflege spulung for men color shine after sun Liquid aqua curly hair locken after sun Ultra strong mousse after sun Line Expansion Milk Milk aroma kids kids Rice lotus

Hair Styling Gel Hair Styling Spray Hair Lacque

Benefits of Extensions


Facilitate new product acceptance


Improve brand image Skin cr me skin care Reduce risk perceived by customers Halo effect Increase the probability of gaining distribution and trial Increase efficiency of promotional expenditures Reduce costs of introductory and follow up marketing programs Avoid cost of developing a new brand Allow for packaging and labeling efficiencies Permit consumer variety seeking

















Provide feedback benefits to parent brand


Clarify brand meaning Enhance the parent brand image



Risks of Extensions


Can confuse frustrate consumers complicated risky Can encounter retailer resistance Can fail and hurt parent brand image Nivea cr me Can succeed but cannibalize sales of parent brand Can succeed but diminish identification with any one category Can succeed but hurt the image of the parent brand Can dilute brand meaning Can cause the company to forgo the chance to develop a new brand

















How have Nivea s executives managed this extension All new products had to be compatible with the Nivea brand and
be targeted to market segments with attractive current and potential size All new products had to offer continuity plus innovation To clarify the new brand extensions the company established a set of guidelines that any possible new products had to satisfy Meet a basic need clean and or protect Offer the special care mildness benefit of Nivea Cr me Be simple and uncomplicated Not offer to solve only a specific problem Maintain a leading position in terms of quality Reasonable price cost benefit relationship Offer broadest possible distribution



Question 4 Should Nivea persue a Men s grooming category Does the company risk alienating its core customer base of families and women or is this a natural next brand extension



Nivea entered the men s grooming industry in 1980 with an aftershave balsam The product embodied the Nivea brand extension requirements of producer innovation with brand continuity Nivea launched many more products in 1990s and early 2000s Emergence of metro sexual male led to category explosion in early 2000s Nivea should continue to pursue the men s grooming category As in the past Nivea has been able to leverage its existing brand associations and equity in building strong favorable and unique associations for the Men s grooming products Alienation of brand Nivea with its core consumers of families and women does not seem real as Nivea continues to use the same brand associations of mildness and care with men s products In fact men will transfer their positive brand judgments and feelings to their families and in turn help in boosting the equity of















Question 5 What would you do now What recommendations would you make to Nivea concerning next steps in their marketing program

Recommendations


Sub brands Divest Hair Care


Market research revealed that customers perceived that Nivea hair care styling did not provide long lasting hold because of its positioning as a mild styling product In 1998 Nivea launched Ultra Strong Mousse This is against the core values of Nivea mildness and care







Reduce the number of sub brands Merge Vital with Visage Bundling of less successful brands with Nivea Cr me Leverage the platform of Nivea cr me advertising to increase the awareness of other sub brands Expand into developing countries like Brazil