Case Study Nivea

Case conduct 8 NIVEA NIVEA, one of the largest peel off and noteing at c be scrapes in the world, was established in 1912 and introduced to the German tradeplace places. Germany has long been a perfume for strip down care and cosmetics, and NIVEA was the leader and has continue to be one of the near accepted point of intersections in the market. With its marker image establish on its crossways beingness clean, fresh, and natural it has bewilder a timeless proceeds recognised by its blue tin and sporting type face.Its first introduced NIVEA Creme in 1912, and became the radical of their send and was known as the caretaker of skin. For near of the lifespan of NIVEA Creme it was essenti entirelyy the sole rival in the face cream market, and so the consumers were able to get to know the brand and develop a close each(prenominal)iance to the brand. It did non face contender until 1960 when some different German smart set launched Creme 21. Although it was an identical reaping to NIVEAs Creme, Creme 21 was backed by a large amount of denote aimed at the mass market.It is with this competition that NIVEA was forced to evaluate their business system and brand image. While they were happy that their brand image was recognized and under(a)stood by the market, they were shown how their brand had an older image and was not viewed as young, dynamic, and modern like the sensitive competitors were. NIVEAs decades of stigmatisation and assimilation into the workaday lives of its consumers had built the equity for them that allowed them to maintain the market advantage for as long as they have.It is this brand equity they had built everyplace so many decades that had allowed them to adjust their branding strategy. Though sales of NIVEA Creme had become stagnant, the company developed a strategy which was forked and allowed for stabilizing the market condition of NIVEA and expands the ability of NIVEA Creme by takering its brand equity to other output classes. NIVEA wanted to preserve their repute for skin care and the market position for NIVEA Creme art object it was to a fault differentiating it from the competition.To do this they realised that while most ads showed NIVEA products being used, they had never directly specified the products emoluments. By addressing these product benefits they are negating the competitors claims. The abet portion of this plan was to introduce saucily products. They targeted new and growing market segments in which they could extend the NIVEA brand. They wanted to use these to compliment and broaden the meaning of the NIVEA brand stool and use the equity already gained by NIVEA Creme.This theme is carried through the brand hierarchy as well. A set of cardinal different criteria was set to ensure that all products reflected the desired NIVEA brand image and were unchanging with the philosophy of providing high quality skin care products. NIVEA Creme was considered the c ompanys most important product because it established the brand and its identity. Sub-brands have the advantage of announce the perplex brand, establishing brand loyalty across three-fold segments, and monopolize the market from competitors.The problem with sub-brands is that they stinker have a negative relate or take away from the sales of the mother brand. The role of the sub-brands was to continue to run to specific skin care and private care needs of their target market segments and contribute back their particular product class associations to reinforce and elaborate on the image of NIVEA as a skin care specialist. With this direction NIVEA should operate under an comprehensive ad for all of their products.An comprehensive brand essentially covers diverse products which are more or less related to to each other, and with NIVEAs small advertising budget, this would be the best way to maximize their marketing efforts with different product categories all carrying the NIVEA brand wee. The umbrella strategy also fits in with the NIVEA Creme advertising because with their value of timeless, ageless, pregnancy and happy family honesty and trustworthiness and the product benefits of mildness and quality they can transfer all of these center brand qualities through the NIVEA name to its sub-brands.The problem that NIVEA had was that all of their sub-brands were being handled as separate advertising plans, while they all were in line with the core values they did nothing to incorporate each of their branding strategies together. By using the umbrella branding strategy they can get under ones skin all of their products under one name and make a more glutinous branding strategy that will benefit all of their sub-categories.One thing that I bank is holding the NIVEA brand back is that they are so focused on not losing touch with the original product of NIVEA Creme, when unfeignedly they want to hold onto the core values which came with it. I believ e they need to look at the market strategy and carry through the core values that were derived from this original product but also look at the market and realize if they are quench being successful. If not, then they need to re-evaluate NIVEA Cremes placement in the market and see whether or not it should be dropped or downgraded in their grand scheme market and advertising strategies.