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To download this short case study (No. SCMKTG087) click on the link below, and select from the list:
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| Abstract The case describes the brand management strategies of the German branded goods major Beiersdorf for its Nivea range of products. Nivea's journey from being a one-product brand to a range encompassing fourteen product categories and over 300 products by the beginning of the 21st century is explored. The case examines in detail Beiersdorf's ‘twin-strategy'of brand extension and globalization, which made Nivea the number one skin care brand in the world. It studies Beiersdorf's strong focus on innovation-led product development and customer-focused marketing, and examines the strategies taken by the company to ensure that brand dilution did not hamper the umbrella branding initiatives for Nivea. | ||||||||||||||
| Issues: » Management strategies which are aimed at cashing in on the equity of an umbrella brand. » Rationale behind extending a successful brand into other related (and slightly unrelated) product categories. | ||||||||||||||
| Key words: Brand management strategies, German, Beiersdorf, Nivea, one-product brand, product categories, 300 products, twin-strategy, brand extension, innovation-led product, customer-focused marketing, brand dilution |
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Questions for Discussion:
2. According to you, what are the core values of the Nivea brand? What type of brand extension framework did Beiersdorf develop to ensure that these core values did not get diluted? Do you think the company was able to protect these core values? Why/Why not?
3. What were the essential components of Beiersdorf's global expansion strategy for Nivea? Under what circumstances would a 'global strategy-local execution' approach be beneficial for a company? When and why should this approach be avoided?
4. Given the uncertainty over the ownership of Beiersdorf in mid-2003, what do you think the future has in store for Nivea? What measures would you suggest the brand's managers to help Nivea sustain its leadership status? | ||||||||||||||
