This case concerns the marketing program for Beiersdorf's flagship Nivea brand.

The case addresses the

issue of how to manage the brand image for a brand associated with different products. How can Nivea
continue to add new customers to their brand franchise without harming their brand equity? Further,
how can Nivea maintain its brand equity in its core skin crème product while also leveraging that equity
into new product categories? A number of issues are raised concerning the coordination of a branding
and communication program across existing and new products.

Discussion questions:

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?

The name of the brand has derived its name from the Latin word Nivius that means “Snow White”. The
dainty art nouveau design of the original NIVEA tin was replaced by a much simpler look (a blue tin with
the word NIVEA celebrated its debut in 1925). The NIVEA blue is not just a simple blue color but one that
went through a complex development process. The colors have this signification:

 Blue transmits sympathy, harmony, friendship and loyalty

 White signifies external cleanliness as well as inner purity
 As a result the mix of blue and white is ideal for an honest and appealing brand.

Product tag lines:

 Nivea Crème : “Nivea, The Crème De La Crème”; “Only Me” ; “Harmony In Blue”; “All That Skin
Needs To Live”
 Nivea For Men: “Less Alcohol, More Care”
 Nivea Hand: “Apparently You Can Tell A Woman’s Age By Her Hands… Now You Can Lie A Little”
 Nivea Beaute : “Colors That Care” Nivea Sun - “Where It’s Green, It Won’t Be Red”
 Nivea Sun : “The New Nivea Sun Makes The Sun Gentle”
 Nivea Visage “Anti-age” : “Science In All Confidence”
 Nivea Visage : “Get Fair, Stay Fair”
 Nivea Bath Care: “Delightfully Gentle And Creamily Mild”
 Nivea Hair : “Entire Care For Frequently Washed Hair”
 Nivea Deo: Aqua & Cool: “The Deo That Even Cares For Your Skin

Another source of equity for NIVEA is its marketing program.

Nivea has expanded significantly to offer a comprehensive choice of moisturizing, protection and care
expertise in the face, body, hand, lip, men’s sun and deodorant markets.

For skin care there is: NIVEA Body, NIVEA Visage, NIVEA for Men, NIVEA Sun, NIVEA Baby, NIVEA Crème,
NIVEA Vital, NIVEA Soft, NIVEA Hand, and NIVEA Lip.

For Personal Care there is NIVEA Deo, NIVEA Beauty, NIVEA Hair Care, NIVEA Bath Care, and NIVEA
Intimate Care.

The price is a reasonable one, one that the consumer perceives a balanced cost-benefit relationship.
Nivea is selling its products through wholesalers or distributors, retailers or dealers. Their apply the pull
strategy through advertising so that consumers come themselves to selling points in order to buy the
products.

2) What are the pros and cons of the sub-brand strategy? Should Nivea run a corporate brand or
umbrella ad for all of their products? What is the role of the Nivea Crème advertising? Should it
be changed?

3) Discuss the risks and benefits of Nivea’s brand extension into new product categories and customers.
How have Nivea’s executives managed this extension? Have they missed opportunities such as perfume
or foot care? Are there certain boundaries that Nivea should not cross?

4) Should Nivea pursue a Men’s grooming category? Does the company risk alienating its core consumer
base of families and women or is this a natural next brand extension?

5) What would you do now? What recommendations would you make to Nivea concerning next steps in
their marketing program?