Its a Brand Building Strategy for Nivea; A Strategic Brand Management Project

1. BRAND BUILDING STRATEGY FOR NIVEA A Strategic Brand Management Project 4/2/2011 STEVENS B SCHOOL Presented By: Nikita Sanghvi

2. Flow of Presentation 4/2/2011 STEVENS B SCHOOL

3. BRAND INVENTORY 4/2/2011 STEVENS B SCHOOL

4. INTRODUCTION Nivea is a German brand marketed in India by NIVEA India Pvt. Ltd. NIVEA India Pvt. Ltd, owner of the No.1 skin care brand in the world, started operations in India in 2006, as a 100% affiliate of the global cosmetics & toiletries giant Beiersdorf AG The Nivea brand, has been present in India for about 40 years but the subsidiary was set up only in 2006. This brand has a history of around 100 years. Nivea came into existence in the year 1911. 4/2/2011 STEVENS B SCHOOL

5. HISTORY 4/2/2011 STEVENS B SCHOOL

7. MARKETING PROGRAM: PRODUCT 4/2/2011 STEVENS B SCHOOL

9. MARKETING PROGRAM: PRODUCT Product: Tag Line Nivea Sun – The New Nivea Sun Makes The Sun Gentle Nivea Visage - Get Fair, Stay Fair Nivea Shower And Bath-delightfully Gentle And Creamily Mild Nivea Hair - Entire Care For Frequently Washed Hair NiveoDeo: Aqua & Cool-the Deo That Even Cares For Your Skin 4/2/2011 STEVENS B SCHOOL

10. MARKETING PROGRAM: PRODUCT 2006 has seen the launch of several innovative new products. Nivea transferred its nourishing, tanning and firming expertise into the new and rapidly growing gradual tanning segment with the launch of Nivea body Sunkissed Skin, a daily moisturiser with a hint of tan, which also helps firm the skin. Nivea body Age Defying Lotion, formulated to replenish the levels of Creatine in skin, helping boost the skin's natural anti-ageing process. Nivea Deodorant Pearl & Beauty, a deodorant offering 24-hour protection along with pearl extracts designed to leave underarms feeling smooth and cared for. Also new for the 2006 Sun market is immediate protection for children in spray and lotion formulations, forming part of the new NIVEA Sun Children's SPF 50+ range. 4/2/2011 STEVENS B SCHOOL

11. MARKETING PROGRAM: PRODUCT Nivea for Men line included Two new fairness products - a Whitening Moisturizer and Multi-White Whitening Facial Foam. Deodorant Aqua Cool, Multi Protecting Facial Foam, Moisturizing Shaving Foam, Shaving Gel and Cooling Gel Moisturiser, a light hydro gel, with Iso Magnesium and Mint Extracts Less alcohol, more care 4/2/2011 STEVENS B SCHOOL

13. MARKETING PROGRAM: PROMOTIONS NIVEA India: First TV Commercial on Air The newly founded Beiersdorf affiliate NIVEA India aired the first TV commercial in major TV-channels and cinemas in 2006. The massive integrated campaign showed uplifting results: NIVEA Creme sales in July and August like-for-like increased by 143.2 %. Total NIVEA sales grew by 121.8 % in the same period. In collaboration with TBWAndia, the NIVEA marketing team produced two scenes to add some "Indian Masala" to the highly successful international NIVEA Creme spot. The TV spots flanked by a print campaign as well as extensive point-of-sale material and consumer promotions Official face care partner of IPL team Chennai Super Kings 4/2/2011 STEVENS B SCHOOL

14. MARKETING PROGRAM: PROMOTION To launch a new skin care campaign to mark the 100th year celebration of renowned cream brand Nivea. (With the business strategy “Focus on Skin Care. Closer to Markets) The campaign titled “100 Years Skincare for Life” will be launched in May. To reach new target groups, Nivea will launch its largest ever digital mobilization campaign in social media along with International star Rihanna and it is expected to generate over one billion page views per week. Another focus in Nivea’s 100th birthday year is the support of a special project for socially disadvantaged children undertaken by Nivea in global partnership with the children aid organization Plan International. Aiming to take the 100th anniversary straight to the consumer NIVEA will be throwing a “thank you” event to celebrate with consumers from around the globe. 4/2/2011 STEVENS B SCHOOL

15. BRAND EXPLORATORY 4/2/2011 STEVENS B SCHOOL “In many countries, consumers are convinced that Nivea is a local brand, a mistake which Beiersdorf, the German makers, take as a compliment.” As quoted on leading brand consultancy Wolff-Olins' website, www.wolff-olins.com

16. Building Brand Equity 4/2/2011 STEVENS B SCHOOL

17. QUALITATIVE RESEARCH Free Association Brand Personality & Values 4/2/2011 STEVENS B SCHOOL

18. Free Association 4/2/2011 STEVENS B SCHOOL

19. Questionnaire 4/2/2011 STEVENS B SCHOOL 1.Which Brand(s) comes to your mind when you think of Personal Care ? 2. Which brand "do you use"/ "would you prefer" in Personal Care category in general? 3. NIVEA is targetted to: (Multiple Selection) a. Female (Under 40yrs) b. Male (Under 40yrs) c. Kids d. Old age (M/F & 40+ years) 3. Do you know the product portfolio of NIVEA? 4. If Yes to the above Question, please mention its product portfolio? 5.In what ways is NIVEA Brand similar and different from Personal Care Brands? 6. When & Where do you use NIVEA & please mention the product category also. 7.If the brand were to come alive as a person, what would it be like (You can give the name of any known personality with his or her characteristics)? What would it talk about?

20. Questionnaire 4/2/2011 STEVENS B SCHOOL 8. Rate the NIVEA on the scale of 1-5 (where 1= Least and 5= Highest) over the following parameters: a. Gentle e. Sticky b. Protective f. Oily c. Smooth g. Value for money d. Caring 9.If I say NIVEA what feeling does it evoke in you? a. Happy e. Like b. Satisfied f. Good c. Joy g. Fresh d. Soft h. If Any other ---pls specify 10. Do you remember the TV commercial of NIVEA ? Y/ N 11. Rate the personality of NIVEA on the scale of 1 - 5 (where 1 = not at all descriptive and 5= Descriptive) over the following parameters: a. Sincerity ( down-to-earth, honest, wholesome, cheerful) b.Excitement ( daring, spirited, imaginative, up-to-date) c. Competence ( reliable, intelligent, successful) d. Sophistication ( upper class, charming) e. Ruggeddness ( outdoorsy, tough)

21. KNOWLEDGE STRUCTURE 4/2/2011 STEVENS B SCHOOL

22. SFU Association 4/2/2011 STEVENS B SCHOOL

23. CBBE Pyramid 4/2/2011 STEVENS B SCHOOL Resonance: Commitment: Continuous use in winter; Brand Switching Judgments: Wide range of products, Reliable, Consistent, Better products at low cost available Feelings: Freshness, Good , Satisfied, Soft, Sophistication Unsatisfied Performance: Caring & Protective, High Cost, Attractive Packaging, Pleasant Fragrance, High Quality, Mild, Gentle, Smooth, Less knowledge about its multiple functions Imagery: Blue tin & white logo, Used in winter since childhood, For dry skin, Sincere, Sophisticated, Targeted to males & females of age under 40 yrs Salience: Various products and purposes, Less recall

24. Inference Salience: Nivea is not a top of the mind recall brand; it doesn’t fall into consideration set also ; no mention of the company Synonym with high quality and consistent performance but at high cost The white logo and blue tin is the ultimate brand image The knowledge about the brand breadth and depthis considerably good but the nodes are weak Targeted to males & females of age group under 40 yrs It is observed that Nivea cream can only be used in winter because of its characteristics of oiliness and stickiness The brand personality: Caring, Protective, Sincere, Reliable, Consistent, Sophisticated Resonance:Upto a limit IMC Campaign: Frequency is too less; no ad of collectives product; not describing multiple uses of the product; difficult to relate with the Indian consumer 4/2/2011 STEVENS B SCHOOL

25. IMC PLAN 4/2/2011 STEVENS B SCHOOL

26. Steps in Developing Effective Communication 4/2/2011 STEVENS B SCHOOL

27. Communication Objective Informative: Explaining multi-purpose uses of Nivea crème & similar product range Telling the market about the targeted segment Describing the wide spectrum of products To create the high visibility among the target segment Building a brand & company image Positioning it as the only companion for all times in the skincare category 4/2/2011 STEVENS B SCHOOL

28. Designing a Message MESSAGE CONTENT Musical Appeal: Captures the listener’s attention, can be linked with emotions, memories, & other experience MESSAGE STRATEGY Cognitive Strategy: Generic message EXECUTIONAL FRAMEWORK Slice of Life Testimonials 4/2/2011 STEVENS B SCHOOL

29. Designing a Message MESSAGE STRUCTURE Close ended conclusion One sided argument Strongest argument last 4/2/2011 STEVENS B SCHOOL

31. Frequency - high / intense

33. Product characteristics

34. Message characteristics

35. Cost4/2/2011 STEVENS B SCHOOL

36. Communication Tools MEDIA Print Media Newspaper – Times of India, The Economic Times Fashion/ Personal Care magazines – India Today, GruhShobha Supplements – The Strategist Broadcasting Media TV advertisement – 3 Phases: Involve common people Films oriented to youth: F.A.L.T.U., Break KeBaad, Aisha Electronic Media Social Networking Websites Youtube – Broadcast the multiple use of Nivea by different peplethat will create involvement 4/2/2011 STEVENS B SCHOOL

37. Communication Tools Sponsorship TV Serial; Skin Care Awards: Most Beautiful Face, Most Smooth Skin, Most Gentle Skin Sales Promotion Bundling 4/2/2011 STEVENS B SCHOOL

38. Communication Tools TV Ad Multiple Uses of Nivea Cream; It protects my skin from the cold It helps small injuries heal faster It smoothes areas of dry skin It gently removes make-up Its fragrance make us feel fresh It is perfect for any occasion My dry hands long for it It soothes the skin after shaving Demonstrate all the products all together; Around the World Tour and the only companion all the times 4/2/2011 STEVENS B SCHOOL

39. Communication Tools In-Store Promotion Kiosk: Displaying the products in attractive manner; may be the whole range can be displayed all together: Visibilty at Point of Purchase New Media Technique Advertorials - An advertorial is an advertisement in the form of an editorial. The Strategist, The Times Life 4/2/2011 STEVENS B SCHOOL

40. Thank You 4/2/2011 STEVENS B SCHOOL