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NMIMS 4TH SEM ASSIGNMENTS - In the increasingly competitive environment of business, the d

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Brand Management

1. 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.”
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)

3. 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. The Dove brand started its life in 1957 in the US, with the revolutionary new beauty cleansing Bar. With its patented blend of mild cleansers and ¼ moisturizing cream, it is #1 Dermatologist Recommended brand in the US.
Today apart from its moisturizing soap, Dove has extended the brand by launching many new products like: Body Washes, Hand and Body Lotions, Facial Cleansers, Deodorants, Shampoos, Conditioners and Hair Styling products. In India, Consumer goods major Hindustan Unilever launched a brand of soap in 1990s that was considered expensive, frightfully expensive, for the times we lived in. For about Rs 30 for a bar, it was nearly twice as expensive as any toilet soap brand that was then sold in India.
Dove did what it does best all over the world - not use supermodels to endorse the brand. Rather it got real women who used the product to give testimonials of their experience with the brand. In India, Doves brand team in the 1990s decided to adopt the same line of thought for the Indian market too. In some ways the brand was the opposite of Lux, the beauty bar of film stars. Dove showed beauty in ordinary people. Dove extended to shampoos in 2007, the brand decided to take the similar route. However, this time around user-generated content had started becoming very popular. HUL tied up with online service providers and even took content generation offline. Camera crews in Mumbai, Delhi and Bangalore asked women questions on hair care. In less than two weeks about 1,000 minutes of video footage was recorded and uploaded on popular portals. In a span of 9 days, over 250 women were interviewed and 1,000 minutes of footage recorded. This content when uploaded online elicited a huge response and according to HUL took the online involvement of consumers to a new high. Then talking about damage to hair in the daily routine of real women like
How staying in an air-conditioned environment strips hair of moisture and so on, were highlighted. Not willing to give its damage care expert image to the competition, Dove has even extended rapidly into hair conditioners and hair masks.
a. Evaluate the brand extension strategy of Dove. (5 Marks)
b. What are the reasons for the success of Dove in other categories and the potential benefits to the parent brand? (5 Marks)

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