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Case Study #8: NIVEA NIVEA, one of the major skin and face proper care brands on the globe, was established in 1912 and introduced to the German markets. Germany has long been a center for skin care and cosmetics, and NIVEA was your leader and has continued to be one of the most identified products on the market. With its brand image depending on its products getting clean, clean, and normal it has become a stunning product recognized by its green tin and white type face.

Its 1st introduced NIVEA Creme in 1912, and became the base with their brand and was referred to as “caretaker of skin. For some of the life-span of NIVEA Creme it was essentially the only competitor hard cream market, and so the buyers were able to get acquainted with the brand and develop a close relationship to the brand. That did not deal with competition until 1960 the moment another A language like german company launched Creme twenty-one. Although it was an identical merchandise to NIVEA’s Creme, Creme 21 was backed by a large amount of advertising directed at the mass market.

It really is through this competition that NIVEA was forced to evaluate their business strategy and brand picture. While these were happy that their company image was recognized and understood by the market, we were holding shown just how their brand had an “older image and was not seen as young, dynamic, and contemporary like the fresh competitors were. NIVEA’s decades of logos and compression into the day-to-day lives of its buyers had developed the equity for them that allowed these to maintain the industry advantage for as long as they have.

It really is this brand fairness they had developed over so many decades that had allowed them to adapt their marketing strategy. Though sales of NIVEA Cremefarbig had become still, the company produced a strategy which was twofold and allowed for stabilizing the market placement of NIVEA and grows the strength of NIVEA Creme by transferring the brand value to additional product classes. NIVEA wanted to preserve their very own reputation pertaining to skin care as well as the market position for NIVEA Creme while it was as well differentiating it from the competition.

To do this they realized that while many ads showed NIVEA products being used, that were there never directly specified the merchandise benefits. Simply by addressing these product benefits they are negating the competitor’s claims. The 2nd portion of this plan was to bring in new products. They will targeted fresh and growing market sectors in which they could expand the NIVEA brand. They will wanted to make use of these to compliment and broaden this is of the NIVEA brand name and use the fairness already attained by NIVEA Creme.

This theme is usually carried through the brand pecking order as well. A set of seven different criteria was set to ensure that all goods reflected the desired NIVEA manufacturer image and were like philosophy of providing top quality skin care products. NIVEA Creme was considered the business most important product because it established the brand as well as identity. Sub-brands have the benefit of advertising the mother manufacturer, establishing company loyalty across multiple portions, and monopolize the market by competitors.

The condition with sub-brands is that they can have a negative effect or eliminate from the sales of the mom brand. “The role of the sub-brands was to continue to focus on specific skincare and personal care needs with their target market portions and lead back their particular product school associations to boost and elaborate on the image of NIVEA being a skin care professional.  With this direction NIVEA should run under an umbrella advertisement for all of many.

An umbrella brand essentially covers different products for or significantly less related to the other person, and with NIVEA’s tiny advertising budget, this may be the best way to increase their advertising efforts based on a product classes all transporting the NIVEA brand name. The umbrella strategy also fits in with the NIVEA Creme advertising and marketing because with their values of timeless, ageless, motherhood and happy family, honesty and trustworthiness and the product benefits of mildness and quality they can transfer all of these core company qualities through the NIVEA name to the sub-brands.

The situation that NIVEA had was that all of their sub-brands were being dealt with as separate advertising plans, when they all had been in line with the core values, they did nothing to incorporate every single of their marketing strategies with each other. By using the umbrella branding strategy they can bring all of their products under one particular name and make a much more cohesive branding strategy that could benefit all their sub-categories.

A very important factor that I consider is holding the NIVEA brand back again is that they are so focused on not losing touch with the initial product of NIVEA Cremefarbig, when seriously they want to keep the primary values which usually came with it. I believe they need to look at the marketplace strategy and implement the core principles that were derived from this original product but also go through the market and discover if they are still being successful. If perhaps not, then they need to re-evaluate NIVEA Creme’s placement available in the market and see whether it should be dropped or reduced in their grand scheme marketplace and advertising and marketing strategies.