Beiersdorf ag f07

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Beiersdorf ag f07

  1. 1. Presentation by: Borislav Belenov Lindsey Jeske, Mirzohid Muminov Aastha Adhikari
  2. 2. Overview <ul><li>Introduction </li></ul><ul><li>History: Current and Future </li></ul><ul><li>Growth strategies </li></ul><ul><li>SWOT Analysis </li></ul><ul><li>International Challenges </li></ul><ul><li>Competitor Analysis </li></ul><ul><li>Industry Analysis </li></ul><ul><li>Recommendations </li></ul>
  3. 3. Beiersdorf AG <ul><li>Mission Statement </li></ul><ul><li>“ 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.” </li></ul>
  4. 4. Introduction <ul><li>Type – Aktiengesellschaft (Incorporated) </li></ul><ul><li>Headquarters - Hamburg, Germany </li></ul><ul><li>Key people - Thomas-Bernd Quaas, Chairman of the Management Board </li></ul><ul><li>Products - P ersonal C are P roducts </li></ul><ul><li>Revenue - Gross Sales $6,756 million (2006) </li></ul><ul><li>Net income - $508 mil lion (2006) </li></ul><ul><li>Employees - 16,500 (as of December 31, 2006) </li></ul><ul><li>Website - www.beiersdorf.com </li></ul>
  5. 5. History: Current and Future <ul><li>1882 - Established in Hamburg Germany and was known as a producer of medical plasters </li></ul><ul><li>1893 - E ntered International Market </li></ul><ul><li>1900 - First patent for Eucerin </li></ul><ul><li>1911 - Introduced of NIVEA - first stable water-in-oil emulsifier - NIVEA Crème </li></ul>
  6. 6. History: Current and Future <ul><li>1932 - 50th anniversary, 1,400 workers, business with 34 countries </li></ul><ul><li>1933 - Changes in Executive Boards for Political reasons. </li></ul><ul><li>1936 - I nvention of TESA </li></ul><ul><li>1945 - End of WW II; Company Re-Established </li></ul><ul><li>1972 - Company became really global – 10000 employees worldwide </li></ul>
  7. 7. History: Current and Future <ul><li>1971 - New Ad Campaign “Only You” </li></ul><ul><li>1980 - Beiersdorf reached 1 Billion Deutsche Marks ! </li></ul><ul><li>2002 - Florena became fu lly owned by Beiersdorf </li></ul><ul><li>2003 – Tchibo Holding AG acquires 44% shares Of Beiersdorf </li></ul>
  8. 8. Growth Strategies <ul><li>Market penetration </li></ul><ul><li>New product development </li></ul><ul><li>Market development </li></ul><ul><li>Diversification </li></ul>
  9. 9. Growth Strategies: Market penetration <ul><li>Product </li></ul><ul><li>Price </li></ul><ul><li>Place </li></ul><ul><li>Promotion </li></ul>
  10. 10. Growth Strategies <ul><ul><li>New product Development: Launch of Nivea Visage Soft Wipes in 1999 </li></ul></ul><ul><ul><li>Market Development: The UK launch of Nivea deodorant </li></ul></ul><ul><ul><li>Diversification : Nivea for Men </li></ul></ul>
  11. 11. SWOT: Strengths <ul><li>Strong Brands </li></ul><ul><ul><li>Nivea </li></ul></ul><ul><ul><li>Brand worth $29 billion </li></ul></ul><ul><li>Strong, increasing focus on research and development </li></ul><ul><ul><li>2006, $118 million on R&D </li></ul></ul><ul><ul><li>Produce newly and innovative products </li></ul></ul>
  12. 12. SWOT: Weaknesses <ul><li>Over-Reliance on Europe </li></ul><ul><ul><li>L’Oreal and Clarins 46.6% </li></ul></ul><ul><ul><li>Beiersdorf 72.6% </li></ul></ul><ul><li>Weak and low inventory turnover </li></ul><ul><ul><li>Average Industry 5.7 </li></ul></ul><ul><ul><li>Beiersdorf 2.9 </li></ul></ul><ul><ul><li>Products Expiration Date </li></ul></ul><ul><ul><li>Over stock </li></ul></ul>
  13. 13. SWOT: Opportunities <ul><li>Pricing pressures from private labels </li></ul><ul><ul><li>Well established brands at low price </li></ul></ul><ul><ul><li>Wal-Mart and Costco </li></ul></ul><ul><ul><li>Beiersdorf need to lower prices </li></ul></ul><ul><li>Growing popularity of cosmetic surgery </li></ul><ul><ul><li>Instant, long lasting results </li></ul></ul><ul><ul><li>Lower demand for Beiersdorfs products </li></ul></ul>
  14. 14. SWOT: Threats <ul><li>Demographic Trends in the United Stated </li></ul><ul><ul><li>65 and older </li></ul></ul><ul><ul><li>Beauty enhancing and revitalizing products </li></ul></ul><ul><li>Growth in men’s toiletries and fragrances </li></ul><ul><ul><li>Advertising products </li></ul></ul><ul><ul><li>Single men </li></ul></ul>
  15. 15. International Challenges <ul><li>Lawsuit against Nivea International of People, Inc. </li></ul><ul><li>Non-First Mover Advantage in BRIC countries </li></ul><ul><li>Pricing pressures of local private firms </li></ul><ul><li>Acquisition of C-BONS Hair Care </li></ul>
  16. 16. Competitor Analysis <ul><li>L’Oreal </li></ul><ul><li>Johnson &Johnson </li></ul><ul><li>Avon Products, Inc. </li></ul><ul><li>3M Company </li></ul>
  17. 17. Competitors: L’Oreal <ul><li>Incorporated: 1939 </li></ul><ul><li>Headquarters : Paris, France </li></ul><ul><li>Employees : 52,403 </li></ul><ul><li>Net Income : $2,237 million (2006) </li></ul><ul><li>Company Type: Public </li></ul><ul><li>Brands : Lancôme, Maybelline, Garnier, Redken, and Matrix </li></ul>
  18. 18. Competitors: Johnson & Johnson <ul><li>Incorporated: 1887 </li></ul><ul><li>Headquarters : New Brunswick, New Jersey, USA </li></ul><ul><li>Employees : 116,200 </li></ul><ul><li>Net Income : $11 billion (2006) </li></ul><ul><li>Company Type: Public </li></ul><ul><li>Brands : Band-Aid, Tylenol, JOHNSON'S, Neutrogena, Clean & Clear </li></ul>
  19. 19. Competitors: 3M <ul><li>Incorporated: 1902 </li></ul><ul><li>Headquarters : Two Harbors, Minnesota, USA </li></ul><ul><li>Employees : 67,000 </li></ul><ul><li>Net Income : $22.923 billion (2006) </li></ul><ul><li>Company Type: Public </li></ul><ul><li>Brands : Nexcare™, Post-it®, Scotch®, Scotch- Brite™, and Scotchgard™ </li></ul>
  20. 20. Competitors: Avon Products <ul><li>Incorporated: 1886 </li></ul><ul><li>Headquarters : New York, New York, USA </li></ul><ul><li>Employees : 40,300 </li></ul><ul><li>Net Income : $477.6 million (2006) </li></ul><ul><li>Company Type: Public </li></ul><ul><li>Products Lines : Avon Color, Anew and Solutions, Skin-So-Soft and Naturals </li></ul>
  21. 21. Industry Analysis <ul><li>Main markets - North America and Europe </li></ul><ul><li>Size of the industry - 178 billion USD </li></ul><ul><li>“ Economize but spend more on cosmetics” </li></ul><ul><li>Metro sexuality, Rich and Beautiful lifestyle </li></ul><ul><li>Decorative Surgery </li></ul>
  22. 22. Recommendations <ul><li>Increase returns and inventory turnover </li></ul><ul><li>Increase marketing for low sales rate products </li></ul><ul><li>Decrease the over reliance on Europe </li></ul><ul><li>Strategy for demographic trends in the US </li></ul><ul><li>Prospective of growth in Men’s personal care sector </li></ul><ul><li>Clear geographical focus to deal with the price war </li></ul>
  23. 23. <ul><li>Thank You F or Your A ttention!!! </li></ul>

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