Nivea - Managing an Umbrella Brand
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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.
An Ode to Nivea's Success Contd...
According to analysts, the brand was the single largest factor for the 4.4% increase in the company's revenues (€ 4.74 billion) and 10.7% increase in after-tax profit (€ 290 million) for the year 2002.
Nivea - Origin & Evolution
Beiersdorf was a well-known name in Germany in the early 1900s due to its range of body care products, adhesive tapes and bandages (Refer Exhibit I for a brief note on the company). In 1912, Beiersdorf's owner Oskar Troplowitz (Troplowitz), a chemist Isaac Lifschütz and a dermatologist Paul Unna jointly developed a skin cream based on Eucerit, the first ever water-in-oil emulsifier.
However, Beiersdorf mass-marketed Nivea, thus making it very popular with customers. As the market for female grooming evolved, Beiersdorf took the help of advertising to gain recognition. By the time the company began exporting Nivea to other countries in the 1920s, it knew that it had a winner on its hands...
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