In celebration of the centennial of its flagship Nivea skin-care franchise, Beiersdorf is placing its entire €1 billion ($1.4 billion) marketing budget this year behind a new campaign that aims to connect the brand more intimately with consumers around the world.

Launching in May with the slogan “Nivea: 100 Years Skincare for Life,” the campaign will strive to reach consumers via “all possible media channels,” the Hamburg, Germany company said in a March 3 release.

“Nivea will have a more intense dialogue with existing consumers than ever before and will be able to fascinate new and especially young target groups,” Beiersdorf said.

The investment will include a digital mobilization campaign in partnership with singer Rihanna that will tap into her large following on social network sites such as Facebook.

Though the company did not go into detail on the initiative, it says the campaign geared toward younger consumers is expected to generate more than one billion page views in its first week.

Also, in retail stores throughout the world, the company will deploy the Nivea Skin Advisory Tour. Comprising 75,000 promotional stands in retail stores, the project is intended to capitalize on the fact that two-thirds of purchase decisions are made while the shopper is standing in front of a retail shelf.

Through the tour, the company aims to reach out to more than 13 million consumers and conduct 1.7 million skin consultations in stores.

Beiersdorf will also release five million special-edition tins of Nivea Crème. Through a partnership with the children’s aid organization Plan International, a percentage of proceeds from each “Care and Connect” Nivea crème tin sold will go toward the organization.

“With the new strategy, planned activities and Nivea's new branding, we are showing that Nivea100 years after its birth is still young, modern and a powerful innovator in cosmetics – and above all, is a synonym for skin care that endures,” says the firm.

Investment Supports Long-Term Growth

The new campaign for Nivea – which is the top-selling skin-care brand on a global scale – will help position the brand for long-term growth, which is critical considering the economic uncertainty that lies ahead, the firm suggested.

“Due to the economic crisis, the core values of trust, honesty, reliability, family and quality are again the drivers for shoppers' purchase decisions,” the firm said. “These values have been attributed to the Nivea brand for consumers for generations.”

With the major campaign, Beiersdorf also reiterates its commitment to skin care as a “core competency” of its portfolio.

“By 2015, 45% of the total growth in the cosmetics market is expected to come from this area,” board member Markus Pinger notes in the release. “As the largest skin-care brand in the world, [Nivea] will profit from this strong growth.”

Last year, Beiersdorf announced its new “Focus on Skin Care. Closer to Markets” strategy, which underscores the company's renewed focus on skin and body care. Its launch was accompanied by a change in management structure (Also see "Beiersdorf R&D Tackles Problems Of Sweaty Teens, Under-Applied Sunscreen" - HBW Insight, 23 August, 2010.).

In a March 3 release of its 2010 sales and earnings results, Beiersdorf reported that the Nivea brand achieved worldwide growth of 1.8% to around €4 billion ($5.59 billion) for the year, while Eucerin was up 9% and luxury brand La Prairie advanced 7.5%.

Total organic growth of the consumer segment for the year was €5.32 billion ($7.44 billion), representing a 1.66% increase.

In a letter by Beiersdorf Chairman Thomas-B. Quaas, released March 3 as part of the company's 2010 annual report, the exec said the performance of the consumer business during the year failed to live up to the firm's expectations.

Quaas noted that 2010 was a year of “realignment” for the company, which recently announced it is exiting the decorative cosmetics business in Germany and spinning off other businesses (Also see "Beiersdorf Stays Skin-Care Course, Withdrawing From Cosmetics In Germany" - HBW Insight, 20 December, 2010.).

Quaas says that 2011 will be another transitional year for the firm, but the efforts will help restore the company's past momentum.

R&D Investments Paying Off

Beiersdorf has stepped-up its R&D efforts, filing patents for 77 innovations in fiscal year 2010, compared with 50 the year before.

In the firm's annual report, Beiersdorf highlights research is it undertaking for various categories of personal care, including skin aging, where it is broadening its understanding of the biological processes involved in the aging process.

Key launches last year that resulted from the research included Eucerin Aquaporin Active, based on data that showed that hydrating ingredient gluco-glycerol stimulates the formation of new aquaporin water channels, which are responsible for the water transport between cells.

Beiersdorf also worked with outside partners on a technology that stimulates the receptors in skin responsible for registering cold. From that work the firm introduced Nivea for Men Arctic Freeze, consisting of three fast-absorbing face-care products that “leave behind a long-lasting feeling of freshness after shaving,” the company says.

Nivea for Men DNAge was launched last year as the counterpart to Nivea Visage DNAge for women, which debuted several years ago. The entire DNAge anti-aging collection is being supported with new research demonstrating the efficacy of the line's folic acid and creatine actives.

The research, conducted by Beiersdorf scientists and published online Feb. 21 in the Journal of Cosmetic Dermatology, showed that application of the actives helps to firm skin by improving collagen density.

Recent research also led to last year's launch of Nivea Deodorant Pure & Natural Action and Nivea Silver Protect Deo-Shower deodorants.

Also in 2010, Beiersdorf spearheaded “groundbreaking” research in the relatively new field of chronobiology. “Our researchers were the first to show that gene expression in skin cells is driven by a day-night cycle,” the company says.

The company is working together with universities in a new research network called AgeScreen, which is being supported by Germany's Federal Ministry of Education and Research.

The goal of the project is to “develop a new optical technique permitting more rapid, systematic and automatic testing of living cells,” according to Beiersdorf. “The system is designed to be used in clinical diagnostics and in the search for pharmaceutical active ingredients, as well as to develop anti-aging products more effectively.”

Beiersdorf recently launched the Pearlfinder open innovation initiative, which allows the firm to involve external partners in product R&D and packaging at an early stage (Also see "In Brief" - HBW Insight, 31 January, 2011.).

By Eileen Francis

In Centennial Year, Nivea Supported With €1 Billion Global Campaign

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