Question: ivea, the worlds first stable skin cream based on a water-in-oil emulsion, was created by pharmacist Paul C. Beiersdorf. Fourteen years after its market introduction,

ivea, the worlds first stable skin cream based on a water-in-oil emulsion, was created by pharmacist Paul C. Beiersdorf. Fourteen years after its market introduction, Nivea underwent relaunch. Before 1925, Nivea crme was sold in an off-white tin with the brand name written in green cursive lettering. With the relaunch, the package design was modernized. The dye of the tin was changed to blue, a colour that is today associated with the brand, and the typography was changed to a more modern font. In 1963, it introduced innovative products like the worlds first liquid cream, Nivea Milk and the Nivea Men After Shave Balsam in 1980, the first aftershave product that soothed the skin. By the 1990s, Nivea had become the worlds leading skin care brand with a standardized global brand policy. It had expanded its product line into new areas, like makeup, mens facial crme, and deodorants. But not all product line extensions were successful and several of the companys international ventures were failures. Nevertheless, Nivea continued its international expansion strategy with a series of local product adaptations while the brand appearance was standardized. In 2011, Beiersdorf started to restructure Niveas product portfolio and brand appearance. Above all, Niveas current square logo was redesigned to resemble the classic Nivea logo. All Nivea products underwent these logo changes to reconnect the brand to its core product, Nivea crme. Tests showed that with the new logo Niveas visibility at the points of purchase had improved. Today, Nivea is one of the strongest face care brands and around 30% of all women around the world use Nivea products. Q1 Using your expertise as a Marketing Management consultant and facts from the above case: i. Discuss the product strategy and decisions adopted by Nivea. (15 marks) ii. Explain two (2) ways by which Nivea can stretch its current product line. (10 marks)

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