Nivea – Managing an Umbrella Brand

Nivea – Managing an Umbrella Brand

Management strategies which are aimed at cashing in on the equity of an umbrella brand.

The case describes the brand management strategies of the German branded goods major Beiersdorf for its Nivea range of products. Nivea’s journey from being a one-product brand to a range encompassing fourteen product categories and over 300 products by the beginning of the 21st century is explored. The case examines in detail Beiersdorf’s ‘twin-strategy’ of brand extension and globalization, which made Nivea the number one skin care brand in the world. It studies Beiersdorf’s strong focus on innovation-led product development and customer-focused marketing, and examines the strategies taken by the company to ensure that brand dilution did not hamper the umbrella branding initiatives for Nivea.                

Issues:

  • Management strategies which are aimed at cashing in on the equity of an umbrella brand.

  • Rationale behind extending a successful brand into other related (and slightly unrelated) product categories.

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