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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 joint venture
with JL Morrisson.
• 2007: Breaks the Joint 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

0
2013 2014 2015 2016

HUL VINI LABS NIVEA


SKIN CARE-% COMPANY VALUE SHARE
Chart Title

60
50
40
30
20
10
0
2013 2014 2015 2016
HUL L'OREAL HIMALAYA J&J P&G NIVEA PIRAMAL ENTERPRISE
MEN-% COMPANY VALUE SHARE
Chart Title

30
24.4 24.1
25 22.9 22.2
20
15
9.3
10 7.9 7.8 7.7
5 1.9 2.2 2.3
1.5
0
2013 2014 2015 2016
HUL GILLETTE NIVEA
NIVEA INDIA % VALUE SHARE
Chart Title

10.3 10
9.3
7.5

0.7 0.9 0.8 1.1 0.8 1.2 0.9 1.2


2013 2014 2015 2016

BATH & SHOWER DEODORANTS


Goods &Services Amount of money retail price Pricing
What the product approach (how the price is chosen) Cost-
should look like based, market-based, &competition-
Product-mix based.
Marketing Mix

Perfect location NIVEAsees its responsibility to promote


Which distributuion?-channels/ skin protection and the association
networks Which/how many between healthy skin, general fitness and
intermediaries well being.
BCG MATRIX

QUESTION-
STARS
MARK

CASH POOR DOGS


COWS
BLUE OCEAN STRATEGY
3.5 NIV
EA
3
2.5 DO
2 VE

1.5
GA
1 RNI
ER
0.5
0
Variety Quality Image Design
LOW:
• Beiersdorf as a big
HIGH: SUPPLIER
company
• Consistent POWER
innovation/
• No uniqueness of
entries in suppliers
the cosmetic • Ability to produce on
market their own

THREAT OF THREAT OF
COMPETITIVE
NEW SUBSTITUTE
RIVALRY
PRODUCTS PRODUCTS

HIGH: HIGH:
• Attraction of • Strong competition
various types of • Substitutes existing
consumers BUYER
POWER
• Price
sensitiveness
SEGMENTATION
Demographics Geographic

• Age:”Whole family” • Global company:over


• Gender:women,men 100 countries
• Income:middle class • Local responsiveness

Psychographics Behavioral

• Interest:comfort,health, • Brand loyality


beauty • Impulse buying
• Lifestyle:families • Usage rate:long term
TARGETING

WOMEN MEN
Age 18-25 26-32 33 & above 18-25 26-32 33 & above
INCOME LOW MEDIUM HIGH LOW MEDIUM HIGH
LIFESTYLE MEDIUM HIGH HIGH MEDIUM HIGH HIGH
PRICE HIGH MEDIUM LOW HIGH MEDIUM LOW
SENSITIVITY
POSITONING High
price

Low High
quality quality

Low
price
POSITONING
High
variety

Bad Good
design 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 remembered 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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