Nivea e3758

MANAGING THE LEGACY BRAND

TABLE OF CONTENT INTRODUCTION HISTORY BCG MATRIX IDENTYFYING CUSTOMERS BLUE OCEAN PORTER 5 PROCESS

INTRODUCTION Nivea is a global skin and body care brand, owned by the German company Beiersdorf. The word NIVEA is derived from the Latin word “nix, nivis” meaning snow. In 1890, Dr. Oscar Troplowitz bought Paul C. Beiersdorf’s Hamburg-based laboratory. Professor Paul Gerson Unna, told Dr. about an innovative emulsifying agent called Eucerit (the ancient Greek word for beautiful wax). Together, they developed the world’s first stable oil-and-water-based cream that was suitable for mass production in 1911 and called it NIVEA. Available in over 200 countries.

HISTORY • 1906: Beiersdorf opens its first UK office in Idol Lane, London. • 1911: Dr. Oscar Troplowitz,a medical researcher,develops a new kind of cosmetic cream. • 1922: NIVEA launches the first mass market skincare cream in the UK - the world's first true cosmetic moisturiser. • 1950: Begins to expand its product portfolio beyond the iconic NIVEA Crème into lotions,Sun care. • 1991: NIVEA Visage launches in the UK.

CONTD. • 1992: Until 2000, NIVEA body, Soft, Hand, For Men, and Lip care all launch in the UK. • 2002: NIVEA Deodorant launches in the UK. • 2006: celebrates its 100th anniversary Started operations in India as t venture with JL Morrisson. • 2007: Breaks the t Venture & becomes the subsidiary of UK company. • 2011: 100th ann’y of Launch of NIVEA Crème.

MISSION STATEMENT

Our aim is to constantly improve-and thus make life a little better.Today and Tomorrow

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OBJECTIVES OF CASE

CASE OVERVIEW

IDENTIFYING COMPETITORS

DEODORANT-% COMPANY VALUE SHARE Chart Title 25

20

15

10

5

0 2013

2014

2015 HUL

VINI LABS

NIVEA

2016

SKIN CARE-% COMPANY VALUE SHARE Chart Title

60 50

40 30 20 10 0 2013 HUL

L'OREAL

2014 HIMALAYA

2015 J&J

P&G

NIVEA

2016 PIRAMAL ENTERPRISE

MEN-% COMPANY VALUE SHARE Chart Title

30 24.4

25

24.1

22.9

22.2

20 15

10

9.3

7.9

5

7.8

7.7 2.3

2.2

1.9

1.5

0 2013

2014

HUL

2015

GILLETTE

NIVEA

2016

NIVEA INDIA % VALUE SHARE Chart Title

10.3

9.3

10

7.5

0.7

0.9 2013

0.8

1.1 2014

BATH & SHOWER

0.8

1.2 2015

DEODORANTS

0.9

1.2 2016

Goods &Services What the product should look like Product-mix

Amount of money retail price Pricing approach (how the price is chosen) Costbased, market-based, &competitionbased.

Marketing Mix

Perfect location Which distributuion?-channels/ networks Which/how many intermediaries

NIVEAsees its responsibility to promote skin protection and the association between healthy skin, general fitness and well being.

BCG MATRIX STARS

CASH COWS

QUESTIONMARK

POOR DOGS

BLUE OCEAN STRATEGY 3.5

NIV EA

3 2.5

DO VE

2 1.5

GA RNI ER

1 0.5 0

Variety

Quality

Image

Design

LOW: HIGH:

SUPPLIER

• Consistent innovation/ entries in the cosmetic market

POWER

THREAT OF NEW PRODUCTS

COMPETITIVE RIVALRY

HIGH: • Attraction of various types of consumers • Price sensitiveness

• Beiersdorf as a big company • No uniqueness of suppliers • Ability to produce on their own

THREAT OF SUBSTITUTE PRODUCTS

HIGH: • Strong competition • Substitutes existing BUYER POWER

SEGMENTATION Demographics • Age:”Whole family” • Gender:women,men • Income:middle class

Psychographics • Interest:comfort,health, beauty • Lifestyle:families

Geographic • Global company:over 100 countries • Local responsiveness

Behavioral • Brand loyality • Impulse buying • Usage rate:long term

TARGETING WOMEN Age

18-25

26-32

INCOME

LOW

LIFESTYLE

MEDIUM

PRICE HIGH SENSITIVITY

33 & above

MEN 18-25

26-32

33 & above

MEDIUM HIGH

LOW

MEDIUM

HIGH

HIGH

MEDIUM HIGH

HIGH

HIGH

LOW

HIGH

MEDIUM LOW

MEDIUM

POSITONING

High price

High quality

Low quality

Low price

POSITONING High variety

Good design

Bad design

Low variety

SWOT ANALYSIS

BRAND EQUITY

BRAND EXTENSION

PRICING STRATEGIES

Promotional Strategies • NIVEA adopted separate ad campaigns for each sub-brands, but a common message of quality and care exist in all ads. • Globally NIVEA was marketing its women products under the strapline, ”Feel Closer”. • Actor Arjun Rampal was chosen as face of brand who lend masculine personality to the brand. • Anushka Sharma was chosen as brand ambassador. And also spearheaded the “Go Sleeveless” campaign. • It collaborated with IPL CHENNAI super king to reach out to men in India.

Q&A

Q & A-GROWTH AND SUSTAINABILITY • Nivea can grow in the market by creating POD. • Nivea continuously changes its core values with constant product innovation • Nivea focuses heavily on research to develop new products that caters to growing needs.

Q & A- LEGACY • The legacy skincare brand nivea can be easily found in 169 countries. • The first brand to bring skincare product from the priviledged elite to the mass market. • Its initial product offering nivea cream was created by a team of dermatologists in 1911

who claimed it was the world first long lasting cream. • It was ed as “my mother brand”. • The core values of nivea like trust care, family, quality & honesty are what defined nivea for 100 years.

ALTERNATIVE DECISION STRATEGY

CONCLUSIONS

LEARNINGS

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