The Beiersdorf logo appears on the backside of the packaging of the products under its portfolio, informing consumers about its connection, and making them shadow endorsers. Refer to Image 1, which shows the Beiersdorf logo on the back of a NIVEA Sun product.

To sum up, it can be successfully evaluated that Beiersdorf follows the houses of brands strategy and the sub-strategy of shadow endorsement. Eventually, as NIVEA drove the majority of its equity, Beiersdorf converted NIVEA into an umbrella brand and NIVEA’s extensions were established as sub-brands.

​

C. Evaluation of NIVEA according to Keller’s parameters

A brand report card is generated for NIVEA based on the characteristics of a strong brand outlined by Kellar (Kellar, 2000).

a. Kellar states that a product is a collection of attributes, along with the brand’s image, the services and other tangible and intangible factors and consumers buy into it all together (Kellar, 2000). NIVEA’s “NIVEA Creme” became the first multi-purpose skin cream and was adopted by families globally (Sonpal et al., 2009). It can be deduced that the reason behind NIVEA Creme’s success is that they offer consumers what they truly desire, a multipurpose cream that can be used by all age groups.

b. According to Kellar, in strong brands, both, the quality of the product or service combined with various intangible factors contribute to brand equity (Kellar, 2000). In addition to this, strong brands timely upgrade their intangibles (Kellar, 2000). Although NIVEA has long enjoyed its superior position, it recently came under fire and was accused of racism (Vizard, 2017). An advert for NIVEA body cream in Africa displays a problematic message and sparked controversy among the general masses (Vizard, 2017). In addition to this, NIVEA was dropped by the ad agency FCB for allegedly making homophobic remarks (Dimitrioski, 2019). Unfortunately, these two incidents prove that NIVEA still has to adapt to the times.

c. All NIVEA products are distributed through on-trade and off-trade drugstore distribution channels, which fits perfectly with NIVEA’s consumer perception of an affordable skincare brand. A supermarket store (Tesco, 2023), a health and beauty retailer (Superdrug, 2023) and NIVEA’s website (NIVEA, 2023 a) sell the products at reasonable prices.

d. As stated by Keller, successful brands create POPs (points of parity) when the competitors are trying to find an advantage while simultaneously creating PODs (points of difference) in other areas. (Kellar, 2000). The use of organic ingredients in NIVEA’s skin care products is one of the many similarities or points of parity it shares with other brands in the same category (NIVEA, 2023 b). Additionally, as described in detail in an article by Daily Mail, NIVEA Creme offers the same results when compared with its high-priced competitor, essentially differentiating itself from the competition in terms of price point while offering the same benefits (Cisotti, 2013).

e. Brands that strike an equilibrium between continuance in marketing activities and the kind of change they need to make to keep the brand relevant come out as strong. (Kellar, 2000) As the colour scheme became an integral part of NIVEA’s visual identity, it used the popular blue and white colour combination in all its visual communications (Sonpal et al., 2009). This practice is followed by NIVEA to date as observed in a recent advert for NIVEA Creme which makes heavy use of a cool colour palette (NIVEA Canada, 2022).

​

f. The brand report card mentions that each brand in the hierarchy at each level must contribute to brand equity and each brand must have its boundaries. As NIVEA’s portfolio expanded, its product extensions established their own independent identities as ‘sub-brands’ (Sonpal et al., 2009), retaining “NIVEA” as the main driver for brand equity. All the ‘sub-brands’ for NIVEA begin with the prefix NIVEA; for instance, “NIVEA For Men”, “NIVEA Sun”, etc.; thus verbally adding and strengthening NIVEA’s brand equity.

g. Kellar suggests that a strong brand mixes and matches its marketing elements to perform various brand-related functions (Keller, 2000). Managers of a strong brand even use marketing activities to promote a specific role, such as showing the ideal consumer of the brand and where, when and why a product is used. For instance, the NIVEA Men ad suggests that if one aspires to be a bold and confident man, one must use NIVEA. User imagery is used to describe the exact personality of the ideal consumer of NIVEA Creme for Men (NIVEA MEN, 2017).

h. The totality of the brand’s image is recognised by managers of strong brands (Keller, 2000). Different perceptions, beliefs, attitudes and behaviours that customers associate with the brand, comprise the brand image as a whole (Keller, 2000). NIVEA has strategically extended its sub-brands while preserving associations of mildness, gentleness, protection, high quality, and value for money across all its product categories (Sonpal et al., 2009), thus positively understanding consumer needs.

i. Ever since NIVEA’s first product was launched in 1911 (NIVEA, 2023 c), Beiersdorf has carefully nurtured the brand. This active support has earned NIVEA the first position as the foremost skincare brand in the UK (Statista, 2022).

j. A major contributor to NIVEA’s brand equity is the NIVEA Soft formula. The recent annual report of Beiersdorf promises an even long-lasting moisturizer, that hydrates the skin for 48 hours (Beiersdorf, 2022 b) By diligently reviewing NIVEA’s strong equity drivers and making appropriate adjustments, NIVEA continues to dominate the skincare market.

​

Overall, NIVEA scores very high on the brand report card, making it a very robust brand.

​

D. Role of NIVEA as an umbrella brand

D.1 Critical factors used by Beiersdorf to extend the NIVEA brand

Beiersdorf’s continued efforts in product development led to an accomplished collection for NIVEA from 6 sub-brands in 1993 to 15 sub-brands in 2006. (Sonpal et al., 2009). The first extension for NIVEA was in the form of soap, in 1919. In due course, NIVEA launched its first baby care product, a baby soap followed by baby powder in 1921 (Sonpal et al., 2009). These products were developed especially for the sensitive skin of babies and aligned with NIVEA Creme’s brand values (Sonpal et al., 2009). It even inspired a supplementary brand association of ‘maternal goodness’ (Sonpal et al., 2009), which further boosted NIVEA’s brand equity. Additionally, a type of brand extension occurs when the same product is used in a different form (Tauber, 1988). For instance, the sub-brand NIVEA Sun offers three different formulations of its sunscreen for kids in the form of cream, spray and stick. Thus, increasing its presence in the kids’ sun care category (NIVEA, 2023 d). The risk of launching a new product into the market can be lower by effectively leveraging a strong brand name (Aaker & Keller, 1990). In the case of NIVEA, its launch into new markets is initiated with its cornerstone product, NIVEA Creme (Sonpal et al., 2009). After building initial trust among the consumers, NIVEA proceeds to launch its other care products (Sonpal et al., 2009). Finally, leveraging the established goodwill and fame of the core brand, NIVEA launches its sub-brands (Sonpal et al., 2009). A study by the University of Minnesota Consumer Behavior Seminar 1987 concluded with sufficient evidence that perceived similarity is directly proportional to the positive or negative effect on the new product (Aaker & Keller, 1990). Therefore, the larger the perceived similarity, the greater the effect (Aaker & Keller, 1990). Regarding the extensions established by NIVEA, its strong brand identity led to an effortless transfer of brand associations (‘gentleness and ‘softness’) onto its sub-brands making the extensions favourable for the brand as a whole. Implementing the umbrella branding strategy, the practice that labels multiple products under a single brand name (Rasmusen, 2015), NIVEA assisted in increasing the levels of consumer acceptance for its sub-bands (Sonpal et al., 2009). NIVEA Creme’s classic formula was capitalised on and utilized for different products within its sub-brands. For instance, in the body care category, NIVEA has a line of body washes known as “Creme Soft Shower Gel” (NIVEA, 2023 e). “Creme” even appears on the packaging making consumers aware of the extension (NIVEA, 2023 e). This was well received by the consumers and even led to a seamless extension into the body wash category.

​

In conclusion, NIVEA efficiently leveraged the reputation of its core brand to extend its sub-brands, thereby creating a coherent brand architecture.

​

4.2. Challenges in extending the NIVEA brand

NIVEA’s brand equity is assessed using Kellar and Soods’s brand equity dilution model.
 

1. Strength
A sufficiently strong enough extension experience can trigger brand dilution (Kellar & Sood, 2003). Although the extensions of NIVEA Creme did not result in a consequential experience, NIVEA Creme’s multipurpose usage was cannibalised by skin care products in its other categories, such as NIVEA Creme bath NIVEA Baby Care creme (Sonpal et al., 2009), thus risking its brand equity.
 

2. Diagnosticity
The degree to which consumers believe the relevance of the extension is indicative of the parent brand (Kellar & Sood, 2003). NIVEA’s extension into kids’ care is successful as they have always maintained the stance of a gentle skincare brand.
 

3. Inconsistency

A potential for change is created when there is an inconsistency in the extension experience and the exception of the parent brand (Kellar & Sood, 2003). NIVEA’s extension of NIVEA Hair made use of chemicals in their products which did not align with the brand’s philosophy of gentle skin care (Sonpal et al., 2009).

​

In summary, NIVEA is at a major risk of brand equity dilution. A brand audit where redundant extensions, as
well as extensions that undermine the fundamental strategy, can be dissolved.

​

D. Conclusion

Overall, Beiersdorf AG has carefully constructed a comprehensive brand portfolio allowing them to capture and serve a wider audience. Despite its primary focus on NIVEA, they have managed to create a versatile portfolio. Even after 100 years, NIVEA remains a strong brand with a large and loyal consumer base. Furthermore, a thorough brand audit would easily resolve any dilution threats to NIVEA’s brand equity.