Academic MBA Question:
Question: The market size of India’s beauty, cosmetic, and grooming market is expected to reach $ 20 billion by 2025 from the $ 6.5 billion, with the rise in disposable income of the middle class and growing aspirations of people to live a good life and look good. This was surely a huge opportunity for Nivea brand in India.
The 120-year old, Hamburg (Germany) based Beiersdorf has often been
credited for meticulously building the Nivea brand into the world’s number one
personal care brand. According to a survey conducted by A C Nielsen in the late
1990s, the brand had a 15% share in the global skin care products market. While
Nivea had always been the company’s star performer, the 1990s were a period of
phenomenal growth for the brand. By successfully extending what was essentially
a ‘one-product wonder’ into many different product categories, Beiersdorf had
silenced many critics of its umbrella branding decisions
For year ended December 2017, Beiersdorf surpassed HUL in the
deodorants segment for the first time, with an 8.7% share of the urban market,
compared with HUL’s Axe that had 7.7% share. A year ago, HUL’s share was 8.3%,
versus Nivea’s 7.1%. Since 2011, Nivea India has been the fastest growing
affiliate within Beiersdorf’s operations. “In all the segments that Nivea has
entered, it has gone from being an insignificant brand into one of the top
three brands in the category,” said Rakshit Hargave, SVP for Beiersdorf India
and Sub-Saharan Africa. “In 2016, Nivea has outgrown the category by three
times and has been able to beat market sluggishness in the December quarter.”
(Source:https://economictimes.indiatimes.com/industry/cons-products/fmcg/we-are-market-leader-in-some-sectors-against-the-mighty-hul-nivea/articleshow/57678531.cms
Source: https://www.oreilly.com/library/view/marketing-management-indian/9789352861859/xhtml/chapter011.xhtml/)
Question: Evaluate the positioning of Nivea and discuss how the positioning strategy has led to the brands success.
Academic Assignment Answer:
