Growing a business by
developing products and
markets
LEARNING OUTCOMES FOR THIS
LESSON
• Recognise Beiersdorf as a leading skincare
company with famous brands.
• Understand how growth helps firms to better
meet customer needs and to become more
competitive.
• Know that businesses can grow by developing
both products and markets.
INTRODUCTION
• A business that grows is often better placed to
meet its customers' needs.
• Growth can help a business stay ahead of
competitors.
• Beiersdorf is the skincare company behind
leading brands NIVEA, ELASTOPLAST, ATRIXO
and EUCERIN.
• Over the past 10 years the company has grown
rapidly through expansion of its products.
GROWTH
• Beiersdorfs growth has mostly been organic,
where is has grown from the inside.
• This is done by:
– 1. Developing new product categories,
e.g. NIVEA FOR MEN.
– 2. Moving into new countries. Since the
1980s, Beiersdorf has expanded into many
Eastern European economies. Today, it has a
growing presence in China, a rapidly
expanding market.
– 3. Expanding market share in established
markets. NIVEA has continuously expanded
its share of the Lipcare market over a number
of years, despite the fact that previously this
market was quite a mature and established
one.
EXPANSION
• Beiersdorf has expanded by using each of these
methods.
– NIVEA Lip Care products are an example of market
penetration. New varieties of these meant that the
business sold more in its current
– NIVEA deodorant shows market development. The
NIVEA brand was used so that the product is a known
one.
– NIVEA Visage Soft Facial Cleansing Wipes show
product development. Women who bought skincare
products were looking for new ways to clean and care
for their skin.
– NIVEA FOR MEN shows diversification. The business
carried out market research. This showed that men
also wanted face care products. These were not just
shaving gels and foams but also new products such
as moisturisers. This is a new product range aimed at
a new market
CONCLUSION
• Beiersdorf has remained a huge success.
• It has kept its place in the market by growing in
a number of ways.
• It has a grown a bigger product range and
bigger markets.
ASSESSMENT OF LEARNING
OUTCOMES
• How well do you recognise Beiersdorf as a
leading skincare company with famous brands?
• How well do you understand how growth helps
firms to better meet customer needs and to
become more competitive?
• How well do you know that businesses can
grow by developing both products and markets?