Beiersdorf AG

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Presentation by:
Borislav Belenov
Lindsey Jeske,
Mirzohid Muminov
Aastha Adhikari
Overview
 Introduction
 History: Current and Future
 Growth strategies
 SWOT Analysis
 International Challenges
 Competitor Analysis
 Industry Analysis
 Recommendations
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.”
Introduction
 Type – Aktiengesellschaft (Incorporated)
 Headquarters - Hamburg, Germany
 Key people - Thomas-Bernd Quaas, Chairman of the
Management Board
 Products - Personal Care Products
 Revenue - 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 Future
 1882 - 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 Future
 1932 - 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
History: Current and Future
 1971 - 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 Strategies
 Market 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: Strengths
 Strong Brands
 Nivea
 Brand worth $29 billion
 Strong, increasing focus on research and development
 2006, $118 million on R&D
 Produce newly and innovative products
SWOT: Weaknesses
 Over-Reliance on Europe
 L’Oreal and Clarins 46.6%
 Beiersdorf 72.6%
 Weak and low inventory turnover
 Average Industry 5.7
 Beiersdorf 2.9
 Products Expiration Date
 Over stock
SWOT: Opportunities
 Pricing pressures from private labels
 Well established brands at low price
 Wal-Mart and Costco
 Beiersdorf need to lower prices
 Growing popularity of cosmetic surgery
 Instant, long lasting results
 Lower demand for Beiersdorfs products
SWOT: Threats
 Demographic Trends in the United Stated
 65 and older
 Beauty enhancing and revitalizing products
 Growth in men’s toiletries and fragrances
 Advertising products
 Single men
International Challenges
 Lawsuit 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 Analysis
 L’Oreal
World Market Share of Companies at the end of 2006
 Johnson &Johnson
 Avon Products, Inc.
Beiersdorf AG 3%
Others 42%
Procter & Gamble
40%
 3M Company
3M 4%
Johnson &
Johnson 6%
Avon Products 5%
Competitors: L’Oreal
Incorporated: 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 & Johnson
 Incorporated: 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: 3M
 Incorporated: 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 Products
 Incorporated: 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 Analysis
 Main 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
Thank You For Your Attention!!!
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