As an organization continues to grow and develop, the brand should too. A strategy for growing a brand is essential as it allows for a brand to assess its current situation and find a way to potentially grow in the future.
NIVEA has become well known for being one of the number one trusted skincare brands for men and women for decades. Its products have always been in line with the vision and identity of the NIVEA brand.
(IMAGE: Beyersdorf)
Over the last eighty years, NIVEA has expanded its brand from the famous blue tin cream to a full range of products that include sunscreen, shaving creams, lotions, body wash, and even roll-ons and sprays. These categories cater predominantly to women, men, and in some overseas countries, babies.
(IMAGE: Micheal84)
So let's talk further about the potential growth of the brand, shall we?
There are a few considerations for NIVEA such as a co-branding strategy, however, co-branding with another strong brand or organisation could run the risk of failure if it doesn't have a competitive advantage and may lead to a loss of reliability and trust in the core brand name,
NIVEA could employ a brand extension strategy, where they can launch a new product range to the current categories or even go as far as launching a whole new category.
A proposed new category would be for NIVEA TEENS.
Currently, some products are recommended for teens but there is no specific range dedicated to 13-18-year-old skincare regime. This could prove successful as the parent brand is strong and trusted and would be a viable line extension strategy.
This will be branded as NIVEA TEENS (like NIVEA MEN and BABY) and as NIVEA endorses self-confidence, natural beauty, self-care, and all-around self-love and acceptance and nurturing of people from the outside in, young girls will be encouraged to follow the same core values.
(IMAGE: NIVEA Baby)
Why I would choose/recommend the line extension strategy?
Allows increased brand awareness. NIVEA will now have more shelf space in stores to exhibit the NIVEA TEENS range.
Increase in profits as NIVEA will now meet the needs of a different market segment.
Low cost of development and production as NIVEA is an existing enterprise.
Possible low advertising and marketing costs as NIVEA already has a high brand awareness with the consumer.
As with any product or range extension, there are associated risks. These could include:
Confusion to the consumer of the extension is not clearly defined and differentiated. This is why a clear branding such as NIVEA BABY or MEN is needed.
If the extension is not successful it could hurt the parent or umbrella brand.
Market saturation could make it difficult for NIVEA to differentiate from its opposition brands.
Before developing a NIVEA TEENS range, the brand needs to consider the following:
Does the extension align with the brand's values, vision, and strategic goals?
Will the extension be sustainable in the future?
Will the extension be profitable in the long and short term?
What are the benefits of the extension?
What would the environmental impact be, as NIVEA has proven to care for the planet?
(IMAGE: NIVEA on Sustainability)
NIVEA falls under a multi-brand strategy approach and is one of the many skincare brands under the Beiersdorf group , which caters to the different needs of consumers. By saturating the skincare market, Beiersdorf reduces the opportunity for its competitors and fills all price and quality gaps in the market.
Over the decades, NIVEA has proven it is a strong brand through its various growth strategies and its exponential international expansions. For the brand to experience the same continued growth in the future it would need to consider potential growth strategies, such as the examples given in the above article. This will keep the brand relevant, and competitive and continue to grow in its profits, reputation and overall brand equity.
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