Assignment of Brand Management (BM)

Executive Diploma Program, 2018-19

Nirma University
Institute of Management
Sarkhej-Gandhinagar Highway, Gota,
Ahmedabad, Gujarat 382481

Submission to
Dr. Tejas Shah

Prepared by
Anurag Aslot, Sauvik Dutta & Pranay Shah

Index:
1. Background & Basic Information

2. Creating Brand Identity

3. Image of a selected Brand

4. Positioning of Selected Brand

5. Value Proposition of the Selected Brand

6. Analyzing personality of Selected Brand

7. Analyzing Equity of Selected Brand

1. Background & Basic of the Selected Brand:

We have selected our brand as NIVEA®

NIVEA® is one of the major brand of Beiersdorf, Germany which

started their operation in 1906 & introduced NIVEA® as their branch in
1911.

Beiersdorf has few other brands in the same category of Body & Skin
Care

1. NIVEA®
2. Eucerin®
3. La Prairie
4. Labello®
5. Hansaplast
6. Florena
7. 8x4
8. atrix

About the brand:

NIVEA® was introduced as a skin care Crème in the market &

consecutively it entered into body care segment too.

Core Business:

Basically now NIVEA® targets mainly in products required during

bathing & after that required in grooming.
History Milestone

1906: Beiersdorf opens its first UP office in Idol Lane, London



1911: Dr Oscar Troplowitz, a medical researcher, develops a new kind

of cosmetic cream. NIVEA® came into existence


1922: NIVEA® launches the first mass market skin care cream in the
World’s first true cosmetic moisturizer


1950s: NIVEA® begins to expand its product portfolio beyond the

iconic NIVEA® Crème into lotions, Sun care, shower & basic
face care.


1991: NIVEA® visage launches in the UK



1992: From here until 2000 NIVEA® body, soft, hand for Men & Lip
care all launch in the UK


2002: NIVEA® deodorant launches in the UK



2006: Beiersdorf UK Ltd celebrates its 100th anniversary, started

operations in India as joint venture with JL Morrison


2007: Breaks the joint venture & becomes the subsidiary of UK

company


2011: 100th anniversary for launch of NIVEA® Crème.

Product Line:

NIVEA® brand distinguishes itself into four main category:

1. Body
2. Face
3. Men
4. Sun protection
 The main category individually has their own product types:

1. Care
2. Cleaners & Toners
3. Crème
4. Deodorant
5. Lips
6. Lotion

Body care:

1. Crème
2. Deodorant
3. Lotion
4. Shower
  Marketing & Branding strategy of Nivea

Marketing Strategy:

Distribution & Promotion:

Nivea has a very strong distribution channel. Distribution channel plays a

vital role to make the products available to the customers. They do
adopt various channels to reach out to the customers. Customers can
buy Nivea’s products online which means they themselves need to take
care of the promotional activities. But the main channel for selling the
products is the retail outlets. They have many outlets spread across the
country where customers can directly choose the products based on
his/her needs. It has been surveyed that around two-third of the sales
happen through high street shops. One-third of the Nivea sales happen
through grocery chains.
Nivea distributes the offerings of the brand with the help of 17000 odd
employees of the parent company Beiersdorf and more than 170
affiliates across the globe. By using affiliates it makes sure to control the
distribution cost and penetrate to the remotest areas of the market.
Also, the skin care products developed by the brand are tailored to the
local needs and giving due consideration to the demographic and
environmental factors. It distributes its product to all the six continents
i.e. North America, Australia, Asia, Europe, Africa, and America.

Nivea products are best in the skin and beauty care segment. It is
because of the product quality that makes them the market leader. They
use various promotional techniques to attract their customers. They
follow above the line marketing technique i.e. they go for TV
advertisements. They also follow below the line strategy such as trade
fairs and promotional events. They also come up with online magazine
named FYI- Fun, Young and Independent. They also have presence in
social networking sites such as Facebook.
Branding Strategy:

Their strategy is to capture large target audience and Nivea has played
smart by introducing product variants so that they can tap every
consumer in any corner of the world.
Nivea has also established itself a brand with hardcore value that are not
compromised at any cost. The brand is known for not using animal fat in
its products. The products developed are made of natural ingredients.
The Nivea Crème tin is 100% recyclable, the brand uses environment
friendly processes to source its raw ingredients and even its packaging is
designed to save resources.
Nivea has been strong when it comes to advertising. The brand has
always tried to connect to its consumers through emotional approach
rather than being pushy. The brand priority in its ad campaigns is to be
presented as a brand that that helps you in keeping young, attractive,
energetic and sympathetic.
Nivea has established itself as a strong brand in skin and body care
products by strategic planning. The brand has wide range of products
that cater to needs of both men and women of all age group. The brand
has presented itself as one that offers care, mildness, reliability,
gentleness, protection, high quality and feel good products. Nivea is
truly a global product and everywhere the products and quality standard
are same.
Nivea also connects with its communities and goes beyond being just a
commercial company. The brand has a co-operation named ‘We care
and connect’ that helps providing education to unprivileged children and
youth. The co-operation is a joint association of Nivea and Plan
International.
3. Brand Image of Nivea:

Nivea strives to create a strong brand image among its consumers by

making use of the six important aspects as mentioned above:

Physical facet & Personality: All beauty care products aim at basically
one thing, to trigger the feel good factor in a person by making them
looking good whilst protecting their skin. Nivea skincare products does
the same for its women skincare products (Nivea body lotion, body milk,
etc.). An example of the same can be seen as per below image:
Culture & Self-image: Nivea brand ads have always been very simple and
has been effective in its message communication. Also, their products
nourishes the skin by which the women feel good and thus it helps them
mentally in gaining a better self-image of themselves in the society. An
example of ad simplicity and a possible example of enhancing self-image
can be seen in the following image:

Relationship & Reflection: Nivea through its ads tries to show that the
care is transmitted from generation to generation which depicts a strong
relationship and that their products are effective on the mother’s skin as
well as her son. A very good example of the same can be seen in below
image where it can be seen that the Nivea cream is visible on both – the
mother’s face as well as the child’s which shows a growing bond
between the two along with the notion that care is transmitted from
generation to generation.
4. Positioning of Nivea:

Nivea goes for the strategy of positioning their products as being of

quality at affordable prices (“More for the same”). This is coherent with
the idea of Nivea being the perfect choice of the whole family. Caring
mothers and fathers who want to provide their families with good
quality products can still afford doing so by buying Nivea skincare. This
goes along with the fact that discounts on Nivea products are often
found. In terms of price Nivea products always appear competitive with
brands, such as Dove, Johnson & Johnson or Labortoire Garnier, which
may be situated next to them in the shops. However, among these the
brand takes care that it does not appear to charge less so that the image
of being a quality brand remains believable for customers.

POP (Point of Purchase) / POS (Point of Sale):

The point of sale (POS) or point of purchase (POP) is the time and place
where a retail transaction is completed. At the point of sale, the
merchant calculates the amount owed by the customer, indicates that
amount, may prepare an invoice for the customer (which may be a cash
register printout), and indicates the options for the customer to make
payment. It is also the point at which a customer makes a payment to
the merchant in exchange for goods or after provision of a service. After
receiving payment, the merchant may issue a receipt for the transaction,
which is usually printed but is increasingly being dispensed with or sent
electronically.

NIVEA has carved a niche for itself over the years as a reliable skin and
personal care brand and has never shied away from highlighting its
positioning at retail. They follow a two point strategy. There has been
good awareness of the brand over the time, Nivea being a 100 years old
brand, but they reinforce it through ATL, and also try to replicate the
same through various touch points for the consumer and the shoppers
at the retail end. They work in two categories, personal care and skin
care and these categories also have their sub categories. In skin care,
they operate in body lotions, moisturizing creams, cold creams, lip care,
face cleansing and Nivea for men. In personal care category they have
deodorants, talcum powders, shower gels, soaps, and for men they have
shaving and post shaving products. For each sub category, they operate
in a different manner with the common touch point being the umbrella
brand Nivea.

The key is deciding on the right POS Material for a category for both
traditional and modern trade. For example, when one looks at skin care,
it is more a loyalty based category where consumers don’t really change
their most often used brand because there is a lot at stake. The shopper
is the consumer in most cases and when a shopper tries out a product
and it suits his/her skin, he/she tends to remain loyal to that
brand/product. But sub category like lip care is impulse-led. They
leveraged their shopper understanding in lip care by creating category
space/wall units in traditional/modern outlets where both NIVEA and
competition products could be stocked.

POD (Point of Difference):

Point of difference refers to the factors of products or services that

establish differentiation. Differentiation is the way in which the goods or
services of a company differ from its competitors. Indicators of the point
of difference's success would be increased customer benefit and brand
loyalty. However, an excessive degree of differentiation could cause the
goods or services to lose their standard within a given industry, leading
to a subsequent loss of consumers. Hence, a balance of differentiation
and association is required, and a point of parity has to be adopted in
order to allow a business to remain or further enhance its
competitiveness.

Nivea had carried out a “Beauty is…” campaign wherein they created
points of difference which consumers could not find in competitor’s
products and also competitors were not able to create such PODs.
As also mentioned above in some ad images of Nivea we see that the
mother son caring relation, simplicity of the ads, self-image and
personality of the woman in the ad are some good examples as to how
Nivea has been successful in carrying out a Point of Difference in all of
these ads which no other competitor has been able to work on. Also,
Nivea has followed the “Blue” Campaign since long and even in many of
their ads they have used dark navy blue shades / themes and also the
clothing of the actors in the ads have been in that shade which easily
creates a POD since the consumers can easily recognize that this has to
be a Nivea ad even before the name is displayed on the TV screen.
Target market Nivea:

The target market for Nivea is all middle age working class people who
have a middle to high income and are self-empowered. They take care of
their skin well for their own goodness and to boost confidence. As a
result, we rarely see Nivea using celebrity as brand presenter.