Brand Management
- 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/in dustry/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/mar keting-management-indian/9789352861859/xhtml/chapter011.xhtml)
Evaluate the positioning of Nivea and discuss how the positioning strategy has led to the brands success.
- 2. Iconic US superbike maker Harley-Davidson is planning to launch a mid-size motorcycle in the 250-500 cc range for emerging markets as it eyes major gains in India and plots to challenge Royal Enfield’s leadership position. Harley-Davidson will be addressing this fast-growing segment through a strategic alliance with a manufacturer in Asia after a tieup between TVS and BMW and one between Bajaj Auto and Triumph Motorcycles.
Announcing new mid-term plan till 2027 named ‘More Roads to Harley-Davidson’, the US giant said it is developing small-displacement (250-500 cc) bike for Asia’s emerging markets through a strategic tie-up with a manufacturer in Asia. This new product and broader distribution is intended to fuel Harley-Davidson’s customer access and growth in India, one of the largest, fastest growing markets in the world, and other Asia markets,” the company said in a statement. Harley-Davidson plans to offer its most comprehensive lineup of motorcycles, competing in many of the largest and fastest growing segments with a full portfolio across a spectrum of price points, power sources, displacements, riding styles and global markets.
Examine the brand personality of Harley-Davidson and its relevance in a promising market like India. (10 Marks)
- In the increasingly competitive environment of business, the development and launch of new products has become an important competitive tool. In a crowded marketplace, there is greater need for differentiation; in markets that are stagnant there is pressure to create excitement.
