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Nivea Case Study
International Marketing
Universitat Pompeu Fabra
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Nivea (nivea) is a brand owned by Beiersdorf AG (beiersdorf) whose majority shareholder is Tchibo (owns 30 per cent of the Beiersdorf shares).
2014 key figures: Net sales: €6,285 million EBIT: €796 million Number of employees: Approximately 17,
In 1911, Nivea launched its first line of body care products, capitalizing on an innovation that created a new type of skin crème. Today the mass-market cosmetics and toiletries brand, Nivea, is Beiersdorf’s largest brand in terms of sales, product and geographical reach. It represents over 70 per cent of the company’s consumer division sales. It is present across all cosmetics and toiletries, except oral hygiene, through its different lines: Nivea Visage, Nivea Beauté, Nivea Hair Care, Nivea Creme, Nivea Soft, Nivea Body, Nivea Sun, Nivea for Men, Nivea Hand, Nivea Deodorant, Nivea Vital, Nivea Bath Care, Nivea Lip Care, Nivea Baby and Nivea Intimate Care.
Nivea developed from a €545 million brand in 1990 to one with sales of €2 billion in 2005. The brand became leader in a number of areas, including skin care and sun care. Beiersdorf often uses the brand to expand into new products or regions. This allows the company to use the brand’s global appeal for its new products, while optimizing its investment in brand support. Nivea’s geographical strength is in Western Europe. It is still relatively marginal in the North American cosmetic and toiletries market.
Lately, Beiersdorf launched Nivea Vital, a range of skin care targeted at ageing consumers. This enables the company to benefit from the growth of anti-ageing products, while preserving Nivea Visage’s reputation as a caring, purifying brand for younger skins. Nivea Beauté and more recently Nivea Hair were both launched in an attempt to tap into areas different from Nivea’s traditional skin care, colour cosmetics and hair care. Whereas Nivea Beauté is still struggling to establish itself in highly competitive colour cosmetics, Nivea Hair’s recent performance bodes well for its future.
Questions:
1. Which degree of market responsiveness and global coordination/integration does Nivea represent? Nivea is an example of a glocal company, being global and local at the same time, or in another words: Nivea represents both a high degree of ‘Market Responsiveness’ and ‘Global Coordination/Integration’. A range of factors that favour global integration include universal desire for personal care and beauty; the rise of global fashion and simple products. Also global spanning networks let Nivea centrally manage marketing and provide brandconsistent media for use by local partners, such as ad agencies and retailers.
2. Do you think that the Nivea Vital commercial (shown in the video) is able to cross borders without any adaptation? If not, which elements should be adapted? For the most part, Nivea uses a standardized marketing mix, also with the international communication. The key advertising messages could remain the same across borders. However, Nivea should modify some elements in the commercial when it crosses borders. In order to adapt to local cultures and preferences Nivea could, for example , use a local actor in the commercial if it enters markets in Asia.
3. Which marketing problems does Nivea anticipate, when penetrating the US market?
- Lower brand awareness.
- Need for new products more frequently, because of the intensive competition.
Nivea Case Study
Assignatura: International Marketing
Universitat: Universitat Pompeu Fabra
- Més de:International MarketingUniversitat Pompeu Fabra106 Documents
