The renowned skincare brand Nivea is widely available in 150 countries worldwide. As it approaches its centennial milestone, the name “Nivea” originates from the Latin term “nivius,” signifying pure whiteness like snow. Pioneering the democratization of skincare, Nivea became the first brand to introduce skincare products to the general public, after being exclusive to the privileged classes. Developed by a team of dermatologists, Nivea Creme, their inaugural product, was hailed as “the world’s first enduring skin cream” (Manning-Schaffel, V. 2005). Its origin dates back to 1911, when German company Beiersdorf created this revolutionary marvel in the field of science.
The first oil in water cream that was stable and therefore seen as the start of modern cosmetics was discovered. This discovery was made possible by finding an emulsifier called “Eucerit” that allowed for the combination of oil and water to create a stable base for ointments. The cream had a pure white appearance due to its stable consistency. In 1924, Nivea began using its blue and white tins, which are still used today. As a brand rooted in dermatological expertise, Nivea is still trusted, reliable, and accessible to consumers.
Nivea, owned by Beiersdorf AG, a German branded goods company, has expanded its product range from one signature product to over 300. It now covers fourteen product categories with various sub-brands such as Body, Visage, Beaute, Sun, For Men, Hair Care, and Baby. Despite its growth, Nivea has achieved success in launching new products by consistently maintaining its brand messaging in both visual and verbal aspects.
Over time, NIVEA, primarily through NIVEA Creme, has established a distinct and universal brand image as a protector and nurturer of the skin. The NIVEA name is widely recognized for its associations with mildness, reliability, gentleness, protection, high quality, and value for money. Throughout Europe, many individuals were introduced to Nivea creme during their childhood and grew up seeing it as a versatile product suitable for the entire family and capable of fulfilling various needs. Thanks to consumers’ personal experiences with the brand and the company’s advertising efforts, NIVEA has become closely linked to shared family moments and boasts a wide range of other brand affiliations.
The brand’s core values, such as security, trust, closeness, and credibility, are reflected in NIVEA. Ralph Gusko, executive board member for brands at Beiersdorf, states that NIVEA embodies skin care, trustworthiness, quality, user-friendliness, and affordability. These values are valued by our global customers. It is crucial for our brand identity to encompass these values which can be achieved through product design. Around two-thirds of purchasing decisions occur at the point of sale. The new NIVEA design aims to enhance recognition so that consumers worldwide can easily find the desired NIVEA products.
NIVEA maintains a consistent design language across all channels, such as product packaging, point of sale, and advertising. This helps consumers identify with the brand and encourages them to use products from other categories. The brand’s core values are security, trust, closeness, and credibility. NIVEA emphasizes the use of natural ingredients and avoids animal fats. Their brand personality is emotionally engaging, centered on trust, childhood, and love. NIVEA aims to meet consumer needs by offering a wide range of skincare products. They prioritize keeping their brand youthful, attractive, energetic, and sympathetic. The strong bond between NIVEA and its consumers is evident throughout its history. It is a globally recognized brand with consistent product offerings worldwide.
The Nivea brand is a well-known example of a superior brand personality that arises from a distinctive product concept. Nivea’s exceptional quality and skincare expertise have contributed to its success as a globally recognized brand.
Beiersdorf has contributed to the expansion of Nivea by developing new products and introducing additional sub-brands and line extensions under the Nivea name. Each sub-brand addresses a specific skincare requirement and aligns with the core values of the Nivea brand. These distinct sub-brands have their own roles that distinguish them from one another, thus bolstering Nivea’s reputation as an expert in skincare. Moreover, Nivea is a widely accessible brand offering an extensive selection of skincare products.
The Nivea brand identity will be strengthened through the expansion of existing and new sub-brands. The establishment of these sub-brands is crucial as the Nivea brand has always been linked to individuals and has consistently adapted to fulfill consumer needs. The triumph of Nivea is credited to its capacity to predict upcoming trends. An essential factor that provides a brand with enduring competitive superiority is its heritage, encompassing its position, personality, social standing, and past.
Nivea’s brand personality encompasses a collection of favorable human values that are intertwined. People become acquainted with the brand during their childhood. Initial encounters with skincare products involve sensory experiences such as smell, touch, and sight, leaving lasting impressions in their non-verbal memory. Apart from the scent and texture, the visual presentation of the cream also plays a vital role in establishing brand loyalty. The cream’s white, creamy texture and the Nivea brand name logo displayed on a blue background are commonly linked with the Nivea brand.
Beiersdorf, the owner of the Nivea brand, characterizes the blue tin as the representation of Nivea’s “brand face,” which instills trust, intimacy, and expertise in consumers worldwide. This design effectively conveys the core values of the Nivea brand and ensures that products from all categories are readily identifiable. The Nivea brand possesses various drivers that shape its personality and are associated with the product, namely: Additionally, there are brand drivers and organizational strengths and weaknesses that are not directly related to the product.
Nivea, with over 128 years of experience in the industry, produces both skin and beauty products. They have good market coverage, offering products in both premium and mass price ranges. Nivea is a well-known brand that is present in around 20 product categories across more than 50 countries. It benefits from being under the parent name Beiersdorf. The brand has a strong recall and equity and is recognized for its iconic ‘Blue and White’ packaging. Nivea has excellent advertising and brand visibility, making it a top-of-mind brand for consumers. Since 2003, when Tchibo became the major stakeholder in Beiersdorf, the company has enjoyed financial stability. Nivea has identified the potential of emerging markets and has thus made growth in that direction a priority over mature markets.
Beiersdorf has weaknesses in the skincare industry, such as intense competition and over-reliance on its flagship brand, Nivea. If consumer confidence in Nivea decreases, it could significantly impact Beiersdorf’s sales since Nivea makes up the majority of its revenue. This places Beiersdorf at a disadvantage compared to companies that offer a wider range of brands. Additionally, Beiersdorf has a limited presence in the North American market, which is one of the largest regions for sales worldwide, following Western Europe and Asia Pacific.
The company is missing out on a potential opportunity for consistent and considerable earnings. When analyzing the competition in the beauty industry, it is evident that there is high competition due to the growing demand for products that cater to constantly evolving beauty desires of consumers. The cosmetic market is extensive and can be divided into different brand types, such as luxury, mass market, and dermocosmetic brands. The primary competitors include Procter and Gamble, L’Oreal, Unilever, and Avon. Beirsdorf is worried about the expansion of competitors into unfamiliar sectors.
Beiersdorf’s traditional core areas, including body care, sun care, lip care, and men’s grooming products, are being invaded by its competitors such as Procter & Gamble and L’Oreal who have grown larger over time. To cope with the pressure from these more innovative rivals, Beiersdorf needs to adopt a more extreme approach to developing new products. Due to the abundance of fresh and groundbreaking offerings, consumers are more likely to be enticed by products that catch their attention rather than remaining loyal to one particular brand. Beiersdorf’s strategy revolves around spotting market gaps where competitors are absent.
L’Oreal is the leading company in the cosmetics industry, having ownership of numerous cosmetic brands. Despite being the leader, L’Oreal has achieved its dominant position through a diverse range of brands within the top 30. On the other hand, Beiersdorf focuses its product offerings under the Nivea brand. With Nivea as its main brand, Beiersdorf has consistently maintained its position as the second largest global player in skincare, trailing behind L’Oreal.
Beiersdorf’s main focus for future business strategy is expanding their presence in different geographical regions. However, they will face tough competition from other major manufacturers who have also recognized the importance of Asia-Pacific, Eastern Europe, and Latin America for their own growth. Below is a list that ranks the top beauty companies worldwide according to estimated revenues from beauty products in 2011.
The widely recognized skincare brand Nivea is present in 150 countries globally. As it nears its centennial milestone, “Nivea” originated from the Latin word “nivius,” which signifies snow-white. Being the first brand to introduce skincare products to the masses, Nivea Creme, its inaugural product, was developed by dermatologists who touted it as the inaugural long-lasting skin cream worldwide (Manning-Schaffel, V. 2005).
