Brands & Branding and Private Labels Case Study

Nivea’s Brand Extension Strategy in the US Market

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Abstract:
In 2005, $3.3 billion, NIVEA (Nivea) is the world largest skin and personal care brand. Owned by Beiersdorf, Nivea has grown from being a signature product to over 30 products encompassing fourteen product categories which included a vast expanse of sub-brands such as Body, Visage, Beaute, Sun, For Men, Hair Care and Baby It had used the ‘clear benefit concept’ to promote growth in Asia, Latin American and Eastern European Market. Nivea has succeeded with new products rollouts by maintaining consistency in its brand messaging, both visually and verbally. Increase in critical consumers, aggressive competitions and private labels is posing a threat for Nivea and their sales growth has been stagnant since 2002. To increase its global market share in skin and beauty care, the company has launched several new initiatives. This case discusses Nivea’s growth strategy over the years and it strategy to maintain its lead in the changing market place.

Pedagogical Objectives:

• Impact of competition and private label on Nivea
• Nivea’s brand extension strategy.

Keywords : Skin & personal care, clear benefit concept, Beierdorf, Nivea visage, Nivea for men, Word of mouth campaign, packaging, Brands & Branding Case Study, Market share