Nike Case

What is the market’s perception of the Nivea family brand on each of the a ollowing dimensions? a. Performance Nivea decided to create a family of products that symbolically could be represented as the “Nivea universe”. The company had a “mono-product” philosophy which means there would be only one product promising consumers universal application in each product category.

b. Imagery Early ads established the image of the Nivea woman as clean, fresh, and natural. Over time, Nivea ads were altered to reflect change in self-images and lifestyle.

For example, when German women were becoming more athletic, Nivea began to show women in more outdoor and active setting. Also, Nivea brand enjoyed a high degree of goodwill and represented reliability, quality and honesty. c.

Judgments One issue is how the traditional Nivea Cream could be maintained if the company also needed to innovate. What’s more, going forward was how the company could best manage its brand hierarchy. d. Feelings It seems Nivea products give customers clean, protect, and nature. Also, it shows specific attributes of each product.

For example, if consumers say “I’d like to buy the blue bottle of Nivea”, it means Nivea Body Milk. Moreover, two-in-one product: satisfying a basic need plus offering the care of Nivea cream as a symbol. 2. In which categories (branding strategy breadth) does Nivea participate? What might competing in multiple markets do to the Nivea umbrella brand? Nivea branding strategy breadth divides into two parts which are skin care and personal care. Competing introduce a variety of specialized cremes into the market, particularly moisturizing cremes, designed for specific skin care uses.Nike-inc-strategic-case-study/”>NIKE, INC. STRATEGIC CASE STUDY

Also, create some similar products of Nivea, use the same marketing to market their products. 3. Identify the brand associations (individual brands under the family umbrella) for the following 3 sub brands: Visage, Vital, Beaute. What role does each sub brand play in entering the respective product-markets? In other words, why shouldn’t the company just use the family brand without individual brands? Mildness is important image which Nivea Visage focused on.

By way of series of actions, Cosmed upgraded Nivea Visage’s image. The first reason, the firm changed the packaging of its products from plastic to glass.

Then, the logo was altered by the company. Third, the business improved its product, offering day and night creme. Last, Cosmed introduced new ads to develop a more sophisticated specialty image, unlike Nivea’s traditional codes of simplicity and universality. Vital targets women over 50 years old.

The ads of Vital is more mature and incorporated the color red and curved gold bands, which was intended to suggest energy and femininity. Beaute was positioned with primary focus on the skin-care attributes of the products by using the slogan “Colors that Care”.

The products were packaged in stylish containers made with deep-blue hues that resonated with the Nivea Creme packaging. Each product specialized in meeting the needs of different consumers. 4. How does the Nivea brand help to differentiate the sub brands from the competition within these product-markets (e.

g. , Beaute) ? The company used the recognition and reputation of the Nivea brand name to promote sub-brands. Moreover, Nivea used different ad campaign for each sub-brand. In other words, each sub-brand had not only set up its own personality but also developed its own brand associations.

Continuity and innovation are two important components for Nivea’s sub-brands.

Each sub-brand progressed unique product attributes and benefits which could satisfy the demands of its target market, and included Nivea basic messages for its customers which were quality and care. 5. Which product categories seem to be a logical extension for Nivea? Explain. Which categories seem to be a far stretch for Nivea? Analyze the decision to enter the ‘color cosmetics’ category under the Beaute brand. a.

Nivea for Man is introduced in 1980. It was a very specific product since it is designed for men’s skin care market.

As said in the case, “the product embodied the Nivea brand extension requirement of product innovation with brand continuity. ” Nivea has acquired a unique, widely-understood brand identity as a “caretaker” of skin. Nivea for Man, as a skin care product for men, keeps identical with Nivea’s original brand image. Moreover, since Nivea was introduced as a product that could be used by the entire family, customers usually associate Nivea with shared family experience.

However, the former products, such as Nivea visage and Nivea Vital, were concentrated on the female market.

Therefore, extent Nivea product to men’s skin care market is an appropriate and logical strategy for the company. b. Nivea is familiar as a “caretaker” of skin to customers. Especially, Nivea Beaute was positioned with primary focus on the skin care attributes.

In 1997, Nivea made its first appearance in the color cosmetics and created a slogan “Colors that Care. ” As we know, Niveas’s goal is skin and body care. Nivea let customers understand that they not only get beauty but also protect their skin when they use the color cosmetic of Nivea.

In addition, Nivea combined its Q 10 innovation with Nivea Beute line and develop Nivea Beaute Time Balance Q10 make up. According many researches, Q10 can keep water stay in the peoples’ skin. It lets customers to have a high – image of cosmetic product of Nivea.

Moreover, Nivea Beaute line have a halo effect on the overall brand since customers will think the company ‘s product is very care people’s skin after they use color cosmetics of Nivea. 6. Discuss the pros/cons of extending Nivea into all the categories they have entered? How does this affect Nivea? The sub brands?

How to maintain growth while preserving the established brand equity was an important issue when Nivea expanded it’s product portfolio. By extending Nivea categories, Nivea could be more competitive in the market share, and provide more alternatives to the customers in order to meet the needs from the consumers. Nivea nourished its existing sub-brand and broke into additional market through adding new sub-brands.

However, Nivea should figure out how to achieve proper synergy between the Nivea Creme core brand and the sub-brand from other product class. How to define and manage its brand hierarchy was also critical while developing sub-brands. . Should Nivea advertise each sub brand or run an umbrella campaign? Explain the pros/cons of each. We think yes, because each sub brand run an umbrella campaign, it will let customers know more details of each product attributes. On the other hand, if company doesn’t have action like that, Nivea has a bunch of products that customers may even know what they are.

Although it might cost more ads fee for company, for a long term, product’s value can not calculate. Just like the case mentioned, Nivea tryied for 10 years to give the sub-brands a life of their own.