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Marketing Excellence >> Nivea In 1882, pharmacist Paul C. Beiersdorf established his company with a patent for medical plasters. Beiersdorf sold his company to Oscar Troplowitz in 1890. By 1911, Oscar Troplowitz had developed the world's first stable skin cream based on a water-in-oil emulsion. He named the product Nivea, derived from the Latin words nix, nivis, meaning "snow" or "of snow." With this brand name, the core benefit of Nivea was being highlighted: Nivea protected the skin so that it stayed white as snow-the ideal of female beauty in Europe at the beginning of the last century. By 1914, the company had already generated 42 percent of their sales outside of Germany and was doing business in 34 countries. Fourteen years after its market introduction, Nivea underwent what we would today call a relaunch. Before 1925, Nivea crme was sold in an off-white tin with the brand name written in green cursive lettering. With the re- launch, the package design was modernized. The dye of the tin was changed to blue, a color that is today SETTING PRODUCT STRATEGY CHAPTER 13 417 associated with the brand, and the typography was lotion packages was reshaped. It is now tilted toward the changed to a more modern font. Furthermore, the po user, and has a more inviting look and feel. sitioning strategy was switched to keep up with the Nivea for Men was renamed Nivea Men to strengthen social changes of that time. Nivea now allowed its con the brand's position in the fast growing market for sumers to get a healthy suntan to reflect the changed men's cosmetics. Also, the product line of Nivea was ideals of beauty. After a difficult period during World rearranged. Several products and categories, that War II, Beiersdorf started anew. In many countries, the were less successful and not enough in sync with the Nivea trademarks were lost since they had been seized brand's slightly reshaped core values-trust, care, and by the victorious nations. Soon after the war, Beiersdorf closeness, were abandoned. All in all, the product port- started buying back the trademarks. In 1963, it intro folio was reduced by approximately 25 percent, especially duced innovative products like the world's first liquid in over-segmented categories like deodorants. Beauty cream," Nivea Milk. With Nivea Men After Shave Balsam, was dropped as an additional core value of the brand Beiersdorf introduced in 1980 the first aftershave prod that had been added in the 1990s. Consistently, makeup uct that soothed the skin. By the 1990s, Nivea was the products were withdrawn from the product line. But the world's leading skin care brand with a standardized global innovation process still continued. With In-Shower Body brand policy. It had expanded its product line into new Moisturizer, Nivea introduced a highly innovative and suc- areas, like makeup, men's facial crme, and deodorants. cessful product to be used on wet skin that is faster and In only 10 years after standardizing its global more convenient to use than traditional body lotion. brand policy, sales had quadrupled and Nivea became Today, Nivea is one of the strongest face care brands. Beiersdorf's largest brand. But not all product line exten Around 30 percent of all women around the world use sions were successful and several of the company's inter Nivea products. The global brand awareness for Nivea national ventures were failures. The purchase of C-Bons is 93 percent. Nivea is the market leader in the skin care in 2007, China's number two hair care brand, was a flop. segment in 46 countries, and has repeatedly been voted Even in Westem Europe, Nivea sales dropped for several the Most Trusted Skin Care Brand by consumers in years in a row. Nevertheless, Nivea continued its inter- 12 European countries. national expansion strategy with a series of local product adaptations while the brand appearance was standard Questions ized. In Asian countries, for example, facial products sold much better since they contained ingredients promot- 1. What were the key steps in maintaining Nivea's lead- ing position in the global facial care market? ing a fair complexion whereas in the Middle East local fragrances like musk were used. 2. Explain the connection between cultural norms and In 2011, Beiersdorf started to restructure Nivea's product choice. What is Nivea's strategy in respect- product portfolio and brand appearance. Above all, ing cultural diversity while pursuing a global brand Nivea's current square logo was redesigned to resemble strategy? the classic Nivea logo. It now mirrors the famous tin 3. Discuss Nivea's future. What should Beiersdorf do packaging with a round blue logo with the brand name next with its product line? Where is the future growth Nivea placed prominently in the middle. All Nivea products for the brand? underwent these logo changes to reconnect the brand to its core product, Nivea crme. Tests showed that with the Sources: Gregor Kessler, "Neue Rezeptur," Capital, October 18, 2012; Michael Brandtner, new logo Nivea's visibility at the points of purchase had "Innovation & Branding," ABBOOM, September 25, 2014; Frauke Schobelt, "Weltweit neues Design: Beiersdorf adelt die Dose," w&v, January 15, 2013; Beiersdorf, www.belersdorf.com; improved. In addition, the package design of most Nivea products was changed. For example, the cap of all body Nivea, www.nivea.com