A Proposed Brand Portfolio Strategy for Nivea to Gain Competitive Advantage.

AuthorAlberti, Briana

BACKGROUND

Nivea is consistently viewed as one of the best skin care brands in the world. It is a top cosmetics brand with its foundation in Germany but has since expanded into markets all over the world. Nivea is a skin care and personal care brand consisting of distinct sub-brands under the Nivea name, which are made up of various product extensions such as Nivea Sun, Nivea for Men, and Nivea Hair Care. Based on the long-running success of Nivea Creme, consumers have been introduced to new product lines from Nivea, creating brand associations including: care, mildness, reliability, gentleness, protection, quality, good feeling, and reasonable price. This image varies slightly for differing categories and sub-brands, such as the Nivea Beaute line, which was launched in 1997 to enter the high-end beauty products market. The Beaute line focused more on reliability, quality, and good feelings than other sub-brands such as Nivea for Men, which has associations with popularity and coolness more than other, more established skin care and beauty brands. The Nivea image has evolved since the introduction of Nivea Creme in the early 20th century, as Nivea transitioned from a skin creme brand to a skin care brand consisting of various sub-categories.

According to Keller (1993), consumer-based brand equity is derived from the marketing effects uniquely attributable to the brand, for example, when certain outcomes result from the marketing of a product or service because of its brand name that would not occur if the same product or service did not have that name (Keller, 1993). The product that has generated the most brand equity for Nivea is the Nivea Creme. Nivea Creme was the world's first multipurpose and universal skin cream that was used for nearly every skin-care need. This cream is Nivea's main product. When looking at brand equity from the standpoint of paying the premium price of a product over the generic brand price, Nivea Creme has certainly produced much brand equity for Nivea. A 6.8 ounce container of Nivea Creme costs $6.58 at WalMart, with a $0.81 cost per ounce. The WalMart brand Equate has a 6.5 ounce skin cream for $2.98. For just about the same ounces of cream, people are willing to pay 2.21 times more for the Nivea brand, generating strong brand equity for Nivea. The name "Nivea" comes from the Latin word "nix" or "nives" which means "snow." This "snow" essence is reflected in the pure white color of the Nivea Creme, enhancing the brand image and recognition of Nivea (Keller, 2015). The favorability of Nivea Creme has been reflected upon other Nivea products. Nivea's sub-brands have product-related attributes, such as high quality, because the products are considered to have at least a teaspoon of Nivea Creme in them so that there is an added benefit, and consumers are essentially receiving a two-in-one product. The non-product related attributes include Nivea's reasonable prices, signature logo on its packaging, and relatable user and usage imagery, as nearly everyone in the world can use Nivea products and there will always be a need for personal care, so the usage of the products will not change. Nivea products carry many perceived benefits in the minds of consumers. Functional benefits include satisfying skin care needs. Experiential benefits would include the fact that Nivea identifies itself as a "caretaker" of the skin and Nivea's high quality would give the consumer the idea that Nivea products are protecting their skin. Symbolic benefits (Keller, 2015) give consumers the perspective that Nivea products will make them feel good in their own skin. Nivea also has a positive brand attitude, as consumers associate Nivea with trust, closeness, and expertise. Nivea's favorable qualities has given the brand strong brand associations, resulting in its noteworthy brand equity (Keller, 2015).

ANTECEDENTS AND MODERATORS OF BRAND DELETION PROPENSITY

The forthcoming analysis of Nivea's brand portfolio utilizes Varadarajan DeFanti, and Busch's (2006) conceptual model of the drivers and moderators of brand deletion propensity. Nivea currently possesses various sub-brands primarily situated in the skin care market, with some adjacent brands in other personal care areas. In order to better unify the Nivea brand name across all categories and to more strongly associate Nivea with skin care, Beiersdorf should delete the Nivea Hair Care sub-brand. This sub-brand offers products including shampoos and in-shower conditioners, as well as styling products such as gels, hair sprays, mousses, and moisturizers. None of these products are designed for skin care, and thus fall outside of the core brand of Nivea Creme. Beiersdorf...

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