A Beiersdorf case study
PART 1: INTRODUCTION
When a company grows it will expand into areas that offer new opportunities. It will also cut back in areas that are not performing as well or are in permanent decline. A company can grow internally by ploughing back profits into the business and building on its successful areas. This is organic growth. A business can also grow externally by taking over other successful businesses.
Beiersdorf is Europe's leading skincare company and engages in both types of activity. It concentrates, however, on organic growth. This is not surprising. Beiersdorf’s NIVEA brand is so well known worldwide that it makes sense for the company to build organically on an established success story. NIVEA is the master brand that drives the success of the whole NIVEA portfolio of sub-brands. It is the No. 1 skincare brand worldwide. Beiersdorf continually strives to strengthen this position through research in products and markets.
Beiersdorf UK's development of the NIVEA brands fits in well with Igor Ansoff's product/market expansion grid. The company continues to build a successful business by developing new and existing products and markets as well as diversifying into new markets with new products.
PART 2: BEIERSDORF’S GROWTH STRATEGIES
NIVEA Visage Soft Facial Cleansing Wipes
In 1999, NIVEA launched the NIVEA Visage Soft Facial Cleansing Wipes. Market research at the time showed only 66% of UK women used a facial cleanser, whilst only 27% has a face care regime (cleanse, tone, moisturise). Women were looking for an easy, convenient, face care routine. NIVEA's Soft Facial Cleansing Wipes remove eye make-up and cleanse and tone in one simple step thus meeting customers' known requirements. Not surprisingly, NIVEA rapidly became the No.1 brand.
NIVEA Lip Care
The core products of the NIVEA Lip Care range are 'Essential', 'Repair', 'Rose' and 'Sun'. NIVEA Lip Care...