1. Nivea would like to increase its share of the U.S. market. Define the management-decision problem.

Nivea (www.nivea.com), the skin care products company, is part of the German Beiersdorf conglomerate. As of 2011, Nivea’s skin care product line is marketed in more than 150 countries. The product line has been around for about 10 decades, originating with a scientific breakthrough of the first skin cream that did not separate into water and oil. That, coupled with intelligent marketing based on marketing research, has led to a strong positive brand image, which accounts for much of Nivea’s success.
Nivea, founded in 1911, began marketing in the 1920s when it changed its logo and began selling its product around the world. Early on, Nivea established its brand identity as a pure and gentle product that families could rely on. Early advertisements featured the Nivea Girl. In 1924, it broke from tradition and began advertising with the Nivea Boy. This helped Nivea convey the message that Nivea skin cream was for the entire family. Its brand image has transcended the decades with the help of a foundation built upon advertising that stresses family relationships and values.
In the 1970s, Nivea had to defend itself against true competition for the first time. It relied heavily on marketing research, which helped it to formulate a two-pronged response: (1) defense of its core business through a new advertising campaign—Crème de la Crème and (2) the introduction of new products, which helped keep the brand fresh and introduced new sources of sales.