Case Study #8: NIVEA
NIVEA, one of the largest skin and face care brands in the world, was established in 1912 and introduced to the German markets. Germany has long been a center for skin care and cosmetics, and NIVEA was the leader and has continued to be one of the most recognized products in the market. With its brand image based on its products being clean, fresh, and natural it has become a timeless product recognized by its blue tin and white type face. Its first introduced NIVEA Crème in 1912, and became the base of their brand and was known as the “caretaker” of skin. For most of the lifespan of NIVEA Crème it was essentially the sole competitor in the face cream market, and so the consumers were able to get to know the brand and develop a close relationship to the brand. It did not face competition until 1960 when another German company launched Crème 21. Although it was an identical product to NIVEA’s Crème, Crème 21 was backed by a large amount of advertising aimed at the mass market. It is through this competition that NIVEA was forced to evaluate their business strategy and brand image. While they were happy that their brand image was recognized and understood by the market, they were shown how their brand had an “older” image and was not viewed as young, dynamic, and modern like the new competitors were. NIVEA’s decades of branding and assimilation into the everyday 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 over so many decades that had allowed them to adjust their branding strategy. Though sales of NIVEA Crème had become stagnant, the company developed a strategy which was twofold and allowed for stabilizing the market position of NIVEA and expands the strength of NIVEA Crème by transferring its brand equity to other product classes. NIVEA wanted to preserve their reputation for skin care and the market position for...
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