NIVEA. What makes the Brand so successful?

Introduction

The brand name NIVEA is familiar to many people from childhood onwards. However, not many people know the actual meaning of the name NIVEA^[1]. The name comes from the Latin adjective “niveus/NIVEA/niveum” meaning snow-white. NIVEA was invented in 1911 and celebrates its 100th Anniversary this year. In that time the original blue tin packaging of the cream has changed its appearance (Appendix 1), but the actual formulation has changed very little since its first launch.

According to Interbrand^[2] (2011a) NIVEA is one of the top 100 best global brands with a brand value of $3,734m. Additionally, in Reader's Digest Trusted Brands^[3] annual consumer survey (2011) NIVEA has been voted the most trusted brand for the last five years in 15 out of 16 European countries (Appendix 2). With a brand awareness of 99% (Appendix 3) in Germany, there can be no doubt that NIVEA is a success story (Gruner and Jahr, 1994 cited in Marketingverein, 1997).

The research questions addressed by this essay are how NIVEA became the market leader, and how it has kept increasing its market share over the years to hold that market position successfully. The first part will analyse NIVEA’s brand identity and visual identity. The author has decided to concentrate on these brand elements because creation of a strong corporate identity is crucial for companies in gaining a competitive advantage. This is followed by a brief discussion of NIVEA as a mother brand and the management of its umbrella brands. The last part will examine the factors that have made NIVEA’s success sustainable over such a long period. Finally, an evaluation will be made of the brand, and a conclusion will summarise the main findings.

Brand Identity

The identity of a brand can be defined as the human characteristics or traits that are associated with the brand. Keller et al (2008:419) argues that the easiest way to respond to this question is to think: “If the brand were to come alive as a person what would it be like?”

NIVEA is one of those brands that has acquired a very unique brand identity over the years. According to Keller (2006) NIVEA’s brand identity is seen as the “caretaker” of the skin. Many people know the brand NIVEA from their childhood, and it is widely regarded as a brand that can be used by the whole family and satisfies everybody’s needs. Keller (2006:96) argues that “over time the name NIVEA has become a synonym for protection and care for the skin”. Other words and substantives that are strongly associated with the brand NIVEA can be seen in Exhibit 1.

Exhibit 1: NIVEA Mental Map

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NIVEA as a Person

Bauer Media^[4] (2008) carried out a study where women characterised the personality of various skincare brands. As can be seen from Exhibit 2, NIVEA was visualised as a self-confident person and a natural beauty. Interestingly, the response showed quite definitely that NIVEA was not considered a Diva or Hollywood Star. It should also be pointed out that L’Oreal and Garnier were seen as possessing similar characteristics, while NIVEA was regarded as more individual.

Exhibit 2: NIVEA Brand Personality

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Source: Translation of exhibit in Bauer Media (2008)

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^[1] In accordance with the custom of giving Latin names to pharmaceutical products, Dr. Troplowitz callled his snow-white cream NIVEA (Beiersdorf, 2011a)

^[2] Interbrand’s method looks at the ongoing investment and management of the brand as a business asset.(Interbrand, 2011b)

^[3] The survey's primary objective is to find out which brands Europeans trust the most across a range of consumer product categories (Reader's Digest Trusted Brands, 2011)

^[4] Bauer Media Beauty Guide 2008 surveyed women between 20 – 69 Years in Germany (Bauer Media, 2008)