Brand Equity and Deletion Analysis on the Company of Nivea, Study Guides, Projects, Research of Architecture

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Brand Equity

and Deletion

Analysis on the

Company of

Nivea

By Chloe Rogers

Overview

EXECUTIVE

SUMMARY

PROCESS PROMPT

QUESTIONS

BRAND

EXPANSION

BRAND

DELETION

The Process

1. Read the Nivea Case Study
2. Read Varadarajan, DeFanti and Busch’s work
3. Collected information about the brand
4. Answered all three prompt questions
5. Took the prompt a bit further
6. Made an educated analysis of brand deletion and expansion recommendations

Three Prompt Questions

1. What is the brand image and sources of equity for the Nivea brand? Does it vary across product classes? Has it changed over the years?
2. How would you characterize the Nivea brand extension strategy? Has the company properly expanded the brand? How consistent and cohesive is its brand hierarchy?
3. What are the pros and cons of the various brand architecture options available to Beiersdorf management? Should management run a corporate umbrella campaign for all products or revert to sub-brand strategy?

Nivea Beauté: Expand – Can gain market share in the United States – Can gain market share in the younger generations – Industry is valued at $532 billion Overview: Market size growth, perceived value, attractiveness, perceived quality and expandability

Nivea Sun: Expand – Social awareness and exposure – Seasonality can be combatted by sunless tanning methods and makeup Overview: Expandability, perceived value and strength of associations

Nivea Body: Delete – Contradictory to social trends – Social responsibility – Rise of eating disorders and body dysmorphia – Overview: Gap between corporate and brand image, social trends, cost of repositioning

Pricing Analysis from the scope of CVS Nivea Product 3 in 1 Bodywash 3 in 1 Lotion Men’s Facewash CVS selling price $5.99 $8.79 $7. Price per oz $0.34/ oz $0.52/ oz $1.60/ oz Other Brand Products Dial 3 in 1 Blade Face + Body Lotion for Men Neutrogena Men’s Facewash CVS price $6.79 $8.29 $8. Price per oz $0.42/oz $1.63/oz $1.63/ oz

Pricing Analysis Overview Pricing in accordance with brand image CVS store brand Economies of scale Packaging/ distribution Ingredients

Conclusion Nivea for Men: Expand 01 Nivea Beauté: Expand 02 Nivea Sun: Expand 03 Nivea Body: Delete 04 Nivea Hair: Delete 05