Case Study: Nivea

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Parent Brand
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Beiersdorf’s (BDF) Cosmed division
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Nivea
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largest cosmetics brand in the world
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1997 launch of ____
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Nivea Beaute, and the aggressive expansion of Nivea for men
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Scientific Breakthrough
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Q10-an anti aging coenzyme- that became an unqulaified success and was included in a number of sub-brand products
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Sales in Beiersdorfs Cosmed division (primarily driven by Nivea)
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grew from 1.4 million in 1995 to 3.8 billion in 2005. Beiersdorfs share price grew from $25.69 to 85.6 in 2004 after peaking at $127.50 in 2001
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challenge
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managing growth while preserving the established brand equity
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from the 1970’s to the 1980’s
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Nivea Creme, Milk, soap sun- extended to a full range of skin care and personal care produces
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in planning new product development
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cosemed management sought to ensure that the Nivea brand met the market needs while also remaining true to the heritage of of Nivea, as exemplified by flagship moisturizer product Nivea cream
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Nivea’s marketing plan in the 1990’s and 2000’s
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followed a “sub brand strategy” where individual sub-brands received budged allocation for independent marketing communications activities
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Nivea Creme first introduced
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into the German market in 1912
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Nivea Cremes unique wate-in-oil emulsion
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was the first creme to offer both skin care and protection at a reasonable price
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Nivea Name
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came from Latin word nives, “snow”-reflecting the color
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Worlds first
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multi purpose, universal skin cream
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introduced through out Europe in
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1912
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introduced in the U.S. in
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1922
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introduced in south America and other parts of the world in
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1926
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# of products introduced under the Nivea brand name between 1911 and 1970
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over 48
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as BDF expanded its range of product offerings it maintained a _____
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“mono-product” philosophy- typically offering one multi purpose product in each skin care market segment and category it entered
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nivea creme blue tin with white lettering was standardized in
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1925
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in addition to nivea creme the brands other primary products included
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body soap and powder and two sun care products- tanning lotion and oil
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nivea brand identity
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“caretaker” of the skin
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set of brand associations:
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“Care” “mildness” “reliability” “gentleness” “protection” “high quality” “feeling good” “reasonably priced”
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1960s
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Nivea creme could be found in almost every German household and in the majority of households across Europe and was the dominant multi-purpose skin creme worldwide
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1912
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BDF first began advertising nivea products primarily nivea creme (for over 60 years nivea advertising promoted the basic themes of skin care protection)
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1910’s and 1920’s
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BDF advertised three main nivea products-creme soap and powder. early ad’s established women as clean, fresh, and natural
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1920s ads
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german women were more active so nivea ads showed women in outdoorsy settings
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1930s ads
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when tanning was instyle the skin protective qualities of of nivea creme and the introduction of new product nivea oil for sunburn were higlighted
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1950s ads
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following end of WW2 ads reflected populations desire to enjoy life
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Nivea cremes first 50 years
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the marketplace for multipurpose creme grew steadily
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1970
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Nivea held over 35% of the the multi purpose creme market in Germany and majority market share in Europe
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late 1960s early 1970s competition
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first strong competition in 60 years: Henkel-Khasana, small German toiletries company–launched Creme 21, in 1972 (direct copy) at the same time Ponds and other brands were launching copies
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competition & Nivea’s “older” brand image
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in recognition of this Nivea developed a “two-prong” strategy 1)BDF sought to stabalize the strong historical market position of Nivea Creme 2)the company sought to exploit the strength of Nivea Creme by transferring the goodwill it had created for the Nivea brand to other product classes
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1971 aggressive marketing campaign
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“Nivea la creme de la creme” a series of seven ads were developed around the slogan. after 2 years the new campaign “only me”
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Company’s long term objective
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to evolve Nivea from a skin creme brand in to a skin care brand by providing a range on new products that would both complement Nivea Creme and broaden the meaning of the Nivea brand name
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“Nivea Universe”
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center-Nivea Creme Nivea products satellite sub-brands would function around this center
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the company had a “mono-product” philosophy
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meaning that there would be only one product promising consumers universal application in each product category
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Set of guidelines that any possible new products had to satisfy
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1meet a basic need: clean and/or protect 2 offer the special care/mildness benefit of Nivea creme 3 be dimple and uncomplicated 4 not offer to solve o a specific problem 5 maintain a leading position in terms of quality 6 offer the product at a reasonable price so the consumer perceives a balanced cost- benefit relationship 7 offer the broadest possible distribution
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22%
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in 1992 Nive creme accounted for only 22% of total Nivea sales
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Niveas highest percentage market penetration was in
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Belgium, Switzerland, and Austria. Germany- the largest skin and personal care market in the world- remained BDF’s largest volume market
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Dr. Rolf Kunish
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CEO of BDF’s board in 1994 helped define Nivea’s brand philosophy
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Nivea Visage
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considered the primary sub-brand to upgrade Nivea’s image in the 1990’s
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BDF brands
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8×4 deodorant and bath products, Labello lip balm, and Atrix lotion. in total these brands represented 40% of cosemed sales in 1991
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Cosmed’s ad agency
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TBWA
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AD guidelines
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using common emotion in all ads, a uniform Nivea logo, consistent lettering and typeface, real, inspirational people in the ads, and understandable copy about the product
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2005
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nivea brand portfolio had grown from 6 product groups in 1993 to 15
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Nivea Creme (skin care)
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1st product, introduced in 1911,1st stabel warwe-in-oil emulsion in the world. blue tins introduced in 1926 (original was pale yellow with blue print and red and blue art design in center)
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Blue harmony campagin
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introduced in jan 1992 series of tv and print ads highlighting nivea creme
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Nivea Soft (skin care)
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introduced in europe in 1994, lighter than the creme, in 2001 it was #2 in product category throughout most of europe. available in multiple sizes
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Nivea Visage (skin care)
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In 1982 Cosmed introduced first set of face care products 1987-beauty fluid-liquid moisturizer introduced 1989-day and night creme introduced 1991-ANTI AGE
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1996
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nivea passes L’oreal to become number 1 face care brand in europe with 18% market share comapatred to 13% for loreal ALSO intorduces Q10 the coenzyme used in antiaging
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q10
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products represent 1/4 of the Visage line sales became the number one face care brand in the world with 13% global share in 2000
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Nivea Vital (skin care)
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introduced in 1994 intoroduced to address skin care needs of women over 50
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Nivea Body (skin care)
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smallest product groups consisted of Nivea milk and Nivea lotion in 2004 the global body care market hit $8.7 billion
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Nivea for Men (skin care)
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introduced in 1980, alcohol cleanser and moisturizer after shave introduced q10 formula to men via face and eye cream held 17% global market share in 2006
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Nivea Sun (skin care)
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1930s but in the 1970s it was developed as an independent sub-brand has unique logo oil, cremes, lotions 1999 sun spray line that was green when first applied 2000-self tanner with q10
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Nivea Baby (skin care)
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introduced to central europe in the 1970s 1996 total relaunch 2005-toodies-all purpose wipe developed 2005-shampoo soap, etc, complete baby care line produced
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Nivea Hand (skin care)
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launched in 1998
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Nivea Lip (skin care)
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introduced in 1902 four areas: 1 essential care 2 beauty care 3 sophisticated care 4 performance care
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Nivea Deo (personal care)
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1991-deodorant included roll on, aerosol, pumo spray, and creme produces 1995-sensitive and mens introduced 2000 wipes introduced 2001 spray deodarnt 2004-24 hour antipersperant
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Nivea Beaute (personal care)
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2nd biggest brand launch after Q10 brand color cosmetics
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Nivea bath care
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1st sub brand developed primarily for personal care 1993-shower milk 1995-milk bar 1997 aroma bath care 1997- shampoo and conditioner for kids
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Nivea Hair care
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first hair product launched in 1991 1996 all new hair and styling line1997- by end of year products sold $18 million 1999- for men 2000-for color treated hair
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Nivea Intimate care
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2004-feminie wipes and lotions only launched in italy
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mid 1990s standardizing adveritsing
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“blue manifesto” campaign for nivea creme
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Cosemed Agencies
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FCB and TBWA
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Blue Bible
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for internal company use. contianed basic info about brand identity, vision, mission, sucssess factors, etc. Also for product packaging, marketing, communciation, etc.
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direct marketing
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initiated in 1995 primiarily for Vital and Visage brands
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non traditional marketing
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blue beach ball distributed, Nivea Club in Austria in 1995, partnered with hospitals to make care packages for mothers in maternity wards
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Event marketing
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beach evemts, childerns sailing programs, school education programs about safe sunbathing, double decker buses to concerts, mental relaxation balls (hand creme), nivea shops in stores
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Nivea.com
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each sub brand also has a website, sweepstakes, chatrooms, promotions, product details, etc.
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research in development
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in 2004 beiersdorf spent 38 million on its new and improved research development center and employed over 650 scientists
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geographic growth opp.
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in 2001 emerging markets represented 86% of the worlds pop but only 23% of the the worlds cosmetic sales, this shows predicted international growth without fierce competition
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by 2005
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Nivea was leading a international skin care company and voted the most trusted brand in Germany (took on sub-brand strategy that year too)

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