Contemporary Brand Management: NIVEA - Dissertation Example

Contemporary Brand Management: NIVEA 1.0 Introduction Brand management is a vital aspect of marketing in today’s business. A proper brand management helps a marketer to create sustainable image of their brands or products in the market. A company develops a branding strategy in order to create good image in the eyes of consumers and also to assist the consumers to gain confidence while purchasing any specific brand. In this paper, the concepts of branding and its relation to the brand NIVEA have been discussed. The paper comprises of theoretical concepts of brand positioning and brand analysis related to NIVEA brand. The concept of ethics and branding of NIVEA have also been included. Finally, the ways of improvement of brand management has been recommended in the paper. Brand Brand is regarded as a trademark that distinguishes itself from other brands or products. The visual uniqueness of a brand is the combination of several features such as name, symbols, letters, shape, slogan, signature, colour and others. Name is considered as the most vital element of brand. The name of the brand cannot change frequently but other elements can be changed in due course of time. There is an important reason to change the name of products or services. It is generally conducted to expand the brand appeal in new markets where the original name may not act as advantageous or considered as standardised in the ‘international trademark portfolio’ of the company. Brand may generate higher revenue that may have an influence on the overall performance of the business (Interbrand, 2004). Product is considered as a thing that can be bought or used, but brand is the promise related to certain things i.e. intangible. It may be guarantee of quality, heritage, prestige and others. A company when enters a new market, might launch new products, but they are totally depended on their existing brand for success (Davis & Baldwin, 2006). Brand is considered as the image related to products or services that can be developed in the mind of the consumers. On the other hand, company image relates to prospective customers, valued customers, lost customers and group of people associated with the company (Scribd, 2011). NIVEA is one of the international skin care companies and family owned brands by Beiersdorf. The brand is targeted in satisfying the need of the consumers. Their products range from female face as well as body products to shaving gel, sun care lines and deodorants for men (Keller, n.d.). The market of the brand is segmented based on the fulfilment of consumer’s needs. Segmentation is done in two ways: one relates to include consumer with identical tastes or needs and the other, consumers are highly content by products so as to meet the needs. The NIVEA brand introduced three product segments, i.e. protection, after sun and self tan. There are various products that come under this segment (Scribd, 2011). The women were the major target market of NIVEA, especially the upper section of the society. They are delighted with the products of NIVEA that involve both care and to beautify the skin. However, nowadays their products range from women towards men care products (Slideshare, 2011). There are several competitors of NIVEA that include L’Oreal, Unilever, Procter & Gamble, Estee Launder Cos, Avon Products and Johnson & Johnson among others (Adbrands.net, 2011). The cream of NIVEA has become the primary product of their business and it is indicating their brand name as well. Besides NIVEA cream, other related products such as sun care products, body soap, powder, tanning lotion and oil also become the major products of the brand. The cream has received brand identity as a ‘caretaker’ of skin (Keller, n.d.). In order to be more competitive the executive at Beiersdorf’s (BDF) changed the distribution strategy from special line outlets towards food outlets. The promotional strategy of the brand has also been enhanced. The other related strategies include standardising the advertising features in order to maintain the steady appearance of its sub-brands. Agencies named as FCB and TBWA with Cosmed improved the advertising along with the concepts of marketing and executed ‘perfect local execution’. The company introduced “Blue Bible” with basic information such as brand identity, mission, and vision and success factors of NIVEA for assisting the consumer with various guidelines (Keller, n.d.). 2.0 Brand Positioning Positioning the brand within a target market is a significant factor because it assists to differentiate the products and services from the competitors. This will bring uniqueness of the products which encourages the consumer to buy. The brand positioning involves two elements. Firstly, the physical characteristics, functionality as well as ability of related brands and the secondly, the way through which the brand is communicated to the consumers and the approach of the consumers on distinguishing the brand with other related competitive brands in the market. Proper communication of the brand is essential as it determines position of brand in the market (Ries & Trout, 1972). According to Kotler (1997), “Positioning is the act of designing the company’s offerings and image so that they occupy a meaningful and distinct competitive position in the target customer’s mind” (Kotler, 1997). For sustainable position of a brand in the market, it is a vital aspect to gather complete information about the market and also the way of competing with the competitor’s brand. Positioning is rather an attribute and design of the products and its process of communication in front of the consumers (Ries & Trout, 1972). NIVEA is one of the global brands. The positioning of the brand has to be conducted based on various aspects. As it is clearly identified from the above discussion that brand communication is more necessary for promotion, NIVEA is thus required to develop customer focused brand positioning. The more strong the position, the more will be its sustainability in the market. The brand can change their tagline or promotional language by maintaining their previous contents (Customer manufacturing Group, 2006). The positioning statement of the brand must focus on clear idea about the desire of brand management, positioning of the brand and products which are carrying the brand name. When advertising slogan is prepared it must not be misunderstood with positioning statement. The brand positioning is valuable than the brand promotion. Since positioning involves product design, pricing as well as distribution, NIVEA must focus on these three aspects. For positioning decision, the marketer of NIVEA must choose the product attributes or benefits that can provide them to gain superiority over their competitors. The major focus of positioning is to help consumers with reliable brand. Therefore, the marketer must formulate communication statement as ‘point of reference’ in order to assist consumers to compare with the competitive brands. NIVEA brand ought to position based on three criteria: product focused position, user-focused position and competitors focused position. In the first factor, the brand may be positioned by promoting the specific attributes of the products in order to set the brand in consumer’s mind. In user focused positioning, NIVEA may position the brand by means of promoting the consumer’s image. The competitor-focused positioning involves that NIVEA can be positioned by promoting critical aspects of competing brand or its users (University of Dayton, n.d.). The above positioning strategies may lead to more improvement in the brand poisoning of NIVEA. These factors are chosen as this may assist the brand to sustain its presence in the competitive market of skin products. The skin care products’ market has become extensively competitive, therefore in order to maintain the brand image and attract the customers these positioning strategies will provide positive outcomes. The brand Unilever is one of the leading companies in global market. It is using the same brand name but developing various positioning strategies in a few countries. The positioning statement also varies considerably. Unilever positions the products in the market by considering various criteria. They develop emotional attachment with the target market. The balanced price of the products also attracts the target market (Douglas & Craig, 1999). 4.0 Brand Analysis Brand image refers to unique set of connection in the minds of customers and stakeholders about the position of the brand and the reliability of the promises it has made. The image involves entire internal as well as external characteristics of a brand (Scribd, 2011). The good brand image may facilitate the consumer to purchase the products with confidence. The brand image and consumers’ appreciation compel for the purchase decision. The asset value of brand is extensively recognised not by brand owners but by investors (Interbrand, 2004). Brand identity is considered as a strategic goal for acquiring exclusive set of association related to the brand. This association involves potential assurance to customers (Scribd, 2011). Brand personality involves ‘more descriptive usage imagery but involves much richer, more contextual information’. It can also be characterised as human traits, i.e. the feature of a brand (Keller, n.d.). Brand association is determined by brand identity that the company wants their brand to stand for in the mind of consumers. It is also related to certain positive things so that the consumers consider the brand to be positive. Brand association is referred as the degree to which a particular product or service are recognised within its product or service class or category (Management Study Guide, 2011). NIVEA brand has received exclusive brand identity and acquired the recognition as a ‘caretaker’ of skin. This brand was extensively used throughout Europe due to its exclusive appeal. NIVEA cream was first introduced with a view that the cream can be used by the entire family. In the year 2005, the products of NIVEA had extended from six to fifteen. These include skin care, for example, NIVEA Cream, NIVEA Sun, NIVEA Soft, NIVEA Body, and NIVEA for Men, NIVEA Baby, NIVEA Lop and NIVEA Hand. Personal care products consist of NIVEA Deo, NIVEA Hair Care, NIVEA Bath Care, NIVEA Intimate Care and NIVEA Bath Care (Keller, n.d.). In the present scenario, NIVEA has developed various new sub-brands that have led to increase their products offerings and identity. Various ranges of products have been introduced by BDF’s Cosmed Division such as NIVEA cream, milk, soap, sun and skin care along with personal care products (Keller, n.d.). The brand image of NIVEA has also reached its excellence. In FHM Grooming Award 2008, NIVEA FOR MEN had received awards for the Best Skincare Range for the fifth time. This award was voted by consumers, who use this product. The consumer assumed that this product has high positive ‘brand image’ than other products in the market. The core values of the brand for which it has created great brand image are security, credibility, trust and others. Starting from women skin care products towards men skin care products, the brand has attained huge success (NIVEA, n.d.). NIVEA has acquired the concept of superior brand personality as it develops the products from exclusive product idea. The brand name is well known worldwide due to its unique quality and skin care proficiency. The brand personality of NIVEA symbolises worldwide complexity related to positive human morals woven together. The consumers become aware of the brand and become emotionally attached to the brand. The skin care products are ‘olfactory’ and ‘tactile’ in nature. They also seem to be visual and become embossed in the non-verbal memory. The major aspect is that in spite of using celebrities for brand personality, they use ‘real people in real world’ (NIVEA, 2000). The appearance of the cream develops brand ‘loyalty’ in the minds of the consumers. NIVEA also possesses exclusive ‘brand value’ related to trust, gentleness, care, accessibility, reliability in a long run for every family. The sub-brands of NIVEA accomplish a particular skin care need and contribute towards its brand values (NIVEA, 2000). The various product categories of NIVEA brand is expanding with an intention to lead in the market globally. The extension of various products is due to expand the brand equity of NIVEA (Slideshare, 2011). The brand association of NIVEA with shared family experiences and other associated factors such as, ‘gentleness’, ‘mildness’, ‘reliability’, ‘care’, ‘high quality’ ‘protection’, ‘feeling good’, and ‘reasonably priced’. The brand philosophy has focused on maintaining the attachment of ‘universality’ related to the products of NIVEA. The brand has represented both skin care as well as personal care products. Facial skin care products of the brand has represented 75% European skin care market and is strongly associated with NIVEA’s ‘general skin care’ associated with NIVEA cream (Keller, n.d.). Brand Pyramid Brand pyramid comprises of several layers of meaning as well as involvement of the brand. At the lowest level, the brand is regarded as the identification mark to distinguish from other products. The product specification of the brand is greatly different from others. This level is termed as ‘specification’. The next level is ‘mark of assurance’. NIVEA has quality, reliability and consistency of their brand. The brand in the next level becomes ‘moments of choice’. For a successful brand, positioning is the only choice to promote in the market. The brand NIVEA has become the choice of everyone thus it is required to purchase. The subsequent step is ‘mark of association’ where consumers develop a feeling of emotional attachment with the brand. Since the consumer has been using the cream of NIVEA from childhood, it develops a bonding of attachment with each other. The more the attachment, the brand will move to further level as ‘emotional involvement’ (Dobney.com, 2010). Fig Pyramid Model of NIVEA Source: (Dobney.com, 2010). 5.0 Special Interest Branding is a vital function in the concept of marketing besides providing the name of the product. The development of relationship between organisations and stakeholders along with consumers is possible through branding. Ethical branding is considered as a sub set of ethical marketing. The ethical marketing is connected to several moral values and standards as it may help in examining the viable decisions related to branding. Besides evaluating the brand upon financial terms, it may also be assessed through moral values. Ethical brand provides no harm to the public; rather it helps in promoting public good. A good brand attempts to be legal as well as ethical (Fan, 2005). Ethical brand is referred as the range of products or brands that exert an influence on the purchasing decision of consumer. Various segments of society is targeted by ethical brand by using different messages comprising of environmental concern, employee welfare, fair pricing, community action among others. There are diverse reasons of ethical branding from the perspectives of a marketer. The ethical branding can be understood as a response towards fundamental changes of marketing procedures across the business range. Through ethical branding entry barrier is reduced to facilitate broad range of companies to get involved with it. Several companies follow illegal ways of business, but in order to uphold their image in the minds of the customers, companies adopt ethical branding strategy. For improving the profitability of a company, the manager of a company becomes extensively cautious with ethical branding. The development of ethics in branding largely contributes to the changes in the characteristics of marketing (Zhang, 2006). In the present scenario, consumers are fascinated towards the brand that uses ethical code. Unethically marketed products possess no value in the minds of the consumers and the ethical brands are expanding rapidly. Customers are generally attracted by the brand that represents moral values. It becomes extensively common for the marketer to focus on ethical purpose of the business. Ethical branding provides greater benefits to the company than other factors of business (Mead & Andrews, 2009). For its brand advertising strategy, NIVEA has used ethical concepts. The brand utilised smart USP and model in order to create emotional connection with the customers. They never used any functional techniques or unreliable concepts in their advertisement. This facilitates them to enhance their product sustainability as well as the brand (Hattab, 2008). They are associated with ecological and social responsibility in the case of branding strategy. Since they are concerned for ethical processes and methods, the promotion taken by NIVEA not only depends on economic success of the brand but they are also based on the approach towards environmental protection as well as safety along with their commitment for the society. Through the ethical standards, their main aim is to make the life of customer much better through the unremitting improvement of the brand. Sustainability of a brand in the market is a process that develops new goals and measures (NIVEA, 2010). 6.0 Brand Management Recommendation Brand management is a vital factor of a corporate management strategy. Branding is essential in all businesses because without it a company cannot create its proper brand image and will get its focus diverted from the target market. Thus, if NIVEA wants to maintain the proper brand image and sustainability, then they need to focus extensively on the branding communication strategy. A reliable communication strategy of a brand towards the customers’ market will develop the customer’s trustworthiness related to the brands or products. The positioning of the brand becomes highly reliable when the communication statement is more ethical and valid. For branding strategy proper communication planning is needed so as to reach the target markets and consumers. In this regards, ten steps are required to develop successful brand communication strategy. At first, the role of brand in business is examined for understanding the loyalty it develops in the market. The factors that are applied for understanding the brand value is required to be recognised properly. The target market and customers for whom the brand positioning and promotion are performed must be noticed vigilantly. The distinctive characteristics related to the communication strategy may enhance the growth of the business. When consumers get more involved with a brand, perception may be developed that could deter their capability to react to distinctive promises of the marketer. However, this barrier must be removed in order to express great promises that have been made. A convincing message may help to develop a progressive communication and achieve success. Effective tools are also indispensable to be developed for creating proper communication approach. Determination of most favourable media to drive target audience is also a challenging task. By discovering the value of messages as well as media, the tool used for subsequent years can be examined. The entire process can be repeated persistently by the company for brand expansion, strategy and positioning (Interbrand, 2004). 7.0 Conclusion With reference to the above discussion, it has been observed that the theory of branding and brand management are important aspects of marketing. The good brand image helps the product to distinguish itself from its existing competitors in the market. In this paper, the brand NIVEA and its entire branding strategy in the market has been considered. NIVEA has developed positive brand image amid the people due to its maintenance of quality, reliability and consistency as well. The positive image of brands of NIVEA has enabled them to ensure sustainability of their brands. Their products have been able to catch the imagination of the consumers throughout the world. The varied assortment of offerings along with products according the changing tastes and preferences of the consumers have been the strength of NIVEA over the years. 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