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Nivea Discussion

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by

Cibbey Abraham

on 8 October 2013

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Transcript of Nivea Discussion

Provides a benchmark to measure sub-brand performance, as well.
Sub-brands can be effectively measured for awareness, brand recognition, and brand equity.
Introduction
1882
World's first water in oil emulsion
1922
Nivea Creme enters USA market
1925
Standardized Font and Logo
Entered Global market
Discussion Q1
1. What is the brand image and sources of equity for the Nivea brand? Does it vary across product classes? How would you characterize their brand hierarchy?
Discussion Q2
What are the pros and cons of sub-brand strategy?
Should Nivea run a corporate brand or umbrella ad for all of their products?
What is the role of Nivea Crème advertising?
Should it be changed?
What are the risks and benefits of Nivea's brand extension into new product categories and customers?
Men’s Grooming: Fad or Future brand extension?
Company founded by Pharmacist Charles Paul Beiersdorf
2013
1926
PROS
CONS
REDUCE THE IMPACT OF PARENT BRAND
Extend Creme Brand Equity
Sub-brands may be in segments Creme can not
authentically
enter
Each sub-brand has ability to grow
INDEPENDENTLY
Protect Creme from cannibalization - sub-brands are in different segments
Insulates Creme from product failure
Efficient Brand marketing and management
Provides entry into specific segments
Allows for clear consumer differentiation
STRETCHES RESOURCES
15 Products Groups - Cohesive theme
Brand Resonance
Direct link to 100 years of Brand Equity
“It was like taking a teaspoon (figuratively) of Nivea Crème and putting it into every new Nivea product as a special benefit - as an additional amount of care. In this way the new product was really a two-in-one product; satisfying a basic need plus offering the Care of Nivea Cream as a symbol."
Enforce the link, Enhance the resonance, Extend the equity into other product groups.
Copy typeface/logo/scripting - Subtle but powerful link
Having built its 100-year history through the Crème, Nivea should continue to use this flagship product when appropriate since it resonates so well with consumers. This will reinforce and maintain the brand history, quality and trust that was built through Nivea Crème.
Nivea Creme remains the lynchpin of the entire skin care product line.
Source of Brand Equity
Provides critical support role in sub branding strategy
Source for "Blue Bible"
Leverages goodwill to various product classes of Nivea
Managing Extensions
New Market Rollout Guidelines – 7 total
Teaspoon of Crème added to each new product
Use of the “Blue Bible”
Illustrate “continuity plus innovation”
Have expanded in hot growth segments like Nivea for Men
Continue R&D spend to stay with trends – Q10
Product lines need to fit within the brand charter without spreading themselves too thin
Pro-Grooming
U.S. facial care market is expected to grow 8% at a constant rate as American women, and increasingly men, invest in looking good
Growth opportunity for Nivea – natural product extension of Nivea for Men
Adheres to the brand guidelines
Brand Image
Trust
Reliability
Universal
Pure
Clean, fresh, natural
Universal caretaker of skin
Complete skincare brand
Then:
Today:
Thank you
Questions?
SOURCES OF EQUITY
Complete Caretaker of Skin
Q-10
Anti-aging enzyme
Unavailable anywhere else in skin cream
Familial ties
Introduced at infancy
Nivea tied to nurturing
Universal
Ties do not break as users age to different products
Associations of Uniqueness
Strength of Associations
Recognizable logo, packaging
Image (care, reliability, trust)
Protection
Self-enhancement
“Nivea Woman”
Associations of Favorability
`
BRAND HIERARCHY
Risks
Lack of clarity on what role the product plays
Need to ensure continuity between sub-brands
Benefits
Increased brand awareness and capitalizing on consumer recognition
15 new product groups by 2005
Any Missed Opportunities?
Anti-Grooming
Risk alienating core customer base of women and families?
No; this would actually serve to make a much more holistic concept of the "family" ideal, by providing multiple products that meet the needs of the entire family, including man, woman, and child.
19 products
Shower, Shaving, Face, Body
Grooming Guides (Manscaping 101; Sport of Shaving)
State of Affairs
Nivea has glacial brand equity
Blue packaging = Trust, Family, & Reliability

Consumers shifted from “one size fits all”
Trends drive product development but they don’t all:
Match the brand
Guarantee sales
Direction Forward
Control costs
Products conflicting with brand
Wait for blockbuster CoQ10
Stay relevant through R&D but be extra selective
Launch into new markets with existing lines
New Market Rollout Guidelines
Opinion leader endorsements critical
Assume low competition
Two options : Umbrella or segmented?
Corporate Guidance vs. Sub-Brands
Invest in corporate branding but provide bulk of budget to sub-brands to communicate with product line extension demographics
How different are the categories?
P.O.P.’s vs P.O.D.’s
Marketing Next Steps
INCREASED COMPETITION

NO
1890
Company sold to Pharmacist Dr. Oscar Troplowitz
1900
Eucerit (oil-in-water emulsion) patent
1911
Nivea Creme enters German market
1959
Nivea Creme gets signature log
100 year campaign
Full transcript