Presentation by:Borislav BelenovLindsey Jeske,
Mirzohid MuminovAastha Adhikari
OverviewIntroductionHistory: Current and FutureGrowth strategiesSWOT AnalysisInternational Challenges Competitor AnalysisIndustry AnalysisRecommendations
Beiersdorf AG
Mission Statement
“We at Beiersdorf understand our consumers and delight them with innovative products for
their skin and beauty care needs. This strengthens the trust and appeal that our
brands enjoy. Every day. Worldwide.”
IntroductionType – Aktiengesellschaft (Incorporated)Headquarters - Hamburg, GermanyKey people - Thomas-Bernd Quaas, Chairman
of the Management Board Products - Personal Care ProductsRevenue - Gross Sales $6,756 million (2006)Net income - $508 million (2006)Employees - 16,500 (as of December 31, 2006)Website - www.beiersdorf.com
History: Current and Future1882 - Established in Hamburg Germany and
was known as a producer of medical plasters
1893 - Entered International Market
1900 - First patent for Eucerin
1911 - Introduced of NIVEA - first stable water-in-oil emulsifier - NIVEA Crème
History: Current and Future1932 - 50th anniversary, 1,400 workers, business with
34 countries
1933 - Changes in Executive Boards for Political reasons.
1936 - Invention of TESA
1945 - End of WW II; Company Re-Established
1972 - Company became really global – 10000 employees worldwide
History: Current and Future1971 - New Ad Campaign “Only You”
1980 - Beiersdorf reached 1 Billion Deutsche Marks!
2002 - Florena became fully owned by Beiersdorf
2003 – Tchibo Holding AG acquires 44% shares Of Beiersdorf
Growth StrategiesMarket penetration
New product development
Market development
Diversification
Growth Strategies: Market penetration
Product
Price
Place
Promotion
Growth Strategies New product Development: Launch of Nivea
Visage Soft Wipes in 1999
Market Development: The UK launch of Nivea deodorant
Diversification: Nivea for Men
SWOT: StrengthsStrong Brands
Nivea
Brand worth $29 billion
Strong, increasing focus on research and development2006, $118 million on R&D
Produce newly and innovative products
SWOT: WeaknessesOver-Reliance on Europe
L’Oreal and Clarins 46.6%Beiersdorf 72.6%
Weak and low inventory turnoverAverage Industry 5.7Beiersdorf 2.9Products Expiration DateOver stock
SWOT: OpportunitiesPricing pressures from private labels
Well established brands at low price
Wal-Mart and Costco
Beiersdorf need to lower prices
Growing popularity of cosmetic surgeryInstant, long lasting results
Lower demand for Beiersdorfs products
SWOT: ThreatsDemographic Trends in the United Stated
65 and older
Beauty enhancing and revitalizing products
Growth in men’s toiletries and fragrancesAdvertising products
Single men
International ChallengesLawsuit against Nivea International of
People, Inc.
Non-First Mover Advantage in BRIC countries
Pricing pressures of local private firms
Acquisition of C-BONS Hair Care
Competitor AnalysisL’Oreal
Johnson &Johnson
Avon Products, Inc.
3M Company
World Market Share of Companies at the end of 2006
3M 4%
Others 42%
Procter & Gamble 40%
Johnson & Johnson 6%
Avon Products 5%
Beiersdorf AG 3%
Competitors: L’OrealIncorporated: 1939
Headquarters: Paris, France
Employees: 52,403
Net Income: $2,237 million (2006)
Company Type: Public
Brands: Lancôme, Maybelline, Garnier, Redken, and Matrix
Competitors: Johnson & JohnsonIncorporated: 1887
Headquarters: New Brunswick, New Jersey, USA
Employees: 116,200
Net Income: $11 billion (2006)
Company Type: Public
Brands: Band-Aid, Tylenol, JOHNSON'S, Neutrogena, Clean & Clear
Competitors: 3MIncorporated: 1902
Headquarters: Two Harbors, Minnesota, USA
Employees: 67,000
Net Income: $22.923 billion (2006)
Company Type: Public
Brands: Nexcare™, Post-it®, Scotch®, Scotch- Brite™, and Scotchgard™
Competitors: Avon ProductsIncorporated: 1886
Headquarters: New York, New York, USA
Employees: 40,300
Net Income: $477.6 million (2006)
Company Type: Public
Products Lines: Avon Color, Anew and Solutions, Skin-So-Soft and Naturals
Industry AnalysisMain markets - North America and Europe
Size of the industry - 178 billion USD
“Economize but spend more on cosmetics”
Metro sexuality, Rich and Beautiful lifestyle
Decorative Surgery
Recommendations Increase returns and inventory turnover
Increase marketing for low sales rate products
Decrease the over reliance on Europe
Strategy for demographic trends in the US
Prospective of growth in Men’s personal care sector
Clear geographical focus to deal with the price war