Beiersdorf AG

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Beiersdorf AG

• Presentation by
• Borislav Belenov
• Lindsey Jeske,
• Mirzohid Muminov
• Aastha Adhikari

2
Overview

• Introduction
• History Current and Future
• Growth strategies
• SWOT Analysis
• International Challenges
• Competitor Analysis
• Industry Analysis
• Recommendations

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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.

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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

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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

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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
  employees worldwide

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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

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Growth Strategies

• Market penetration
• New product development
• Market development
• Diversification

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Growth Strategies Market penetration

• Product
• Price
• Place
• Promotion

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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

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SWOT Strengths

• Strong Brands
• Nivea
• Brand worth 29 billion
• Strong, increasing focus on research and
  development
• 2006, 118 million on RD
• Produce newly and innovative products

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SWOT Weaknesses

• Over-Reliance on Europe
• LOreal and Clarins 46.6
• Beiersdorf 72.6
• Weak and low inventory turnover
• Average Industry 5.7
• Beiersdorf 2.9
• Products Expiration Date
• Over stock

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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

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SWOT Threats

• Demographic Trends in the United Stated
• 65 and older
• Beauty enhancing and revitalizing products
• Growth in mens toiletries and fragrances
• Advertising products
• Single men

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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

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Competitor Analysis

• LOreal
• Johnson Johnson
• Avon Products, Inc.
• 3M Company

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Competitors LOreal

• Incorporated 1939
• Headquarters Paris, France
• Employees 52,403
• Net Income 2,237 million (2006)
• Company Type Public
• Brands Lancôme, Maybelline, Garnier, Redken, and
  Matrix

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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

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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

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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

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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

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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 Mens personal care
  sector
• Clear geographical focus to deal with the price
  war

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• Thank You For Your Attention!!!