Nivea - Managing an Umbrella Brand

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Case Details:

Case Code : MKTG087
Case Length : 13 Pages
Period : 1987-2003
Pub Date : 2003
Teaching Note : Available
Organization : Nivea
Industry : Cosmetics
Countries : Germany

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

The Marketing Gameplan for Nivea

Millions of customers across the world have been familiar with the Nivea brand since their childhood. The visual (color and packaging) and physical attributes (feel, smell) of the product stayed on in their minds. According to analysts, this led to the formation of a complex emotional bond between customers and the brand, a bond that had strong positive undertones...

Innovations & Brand Extensions

Innovations and brand extensions went hand-in-hand for Nivea. Extensions had been made back in the 1930s itself and had continued in the 1960s when the face care range Nivea Visage was launched.

However, the first major initiative to extend the brand to other products came in the 1970s. Naturally, the idea was to cash in on Nivea's strong brand equity. The first major extension was the launch of 'Nivea For Men' aftershave in the 1970s...

The 'Global-Local' Strategy

From 1910 onwards Nivea was made available in Europe, and from 1920 onwards, it was made available in the US markets. Over the next few decades, the number of countries in which Nivea had a presence kept on increasing due to Beiersdorf's focus on global expansion. The cream's rapid acceptance in many parts of the world highlighted its truly global appeal...

The Beiersdorf Ownership Issue (And What it Means for Nivea)

The immense popularity and business value of Nivea had led to a battle of sorts since the late 1990s between Beiersdorf and various other companies.

At the beginning of the 21st century, Beiersdorf's largest shareholder, the insurance major Allianz, had expressed its intentions to sell its 44% stake in the company. Since then, many players had evinced interest in purchasing the stake - largely attracted by the Nivea brand...

Exhibits

Exhibit I: A Brief Note on Beiersdorf
Exhibit II: A Few Nivea Products