Presentation by:Borislav BelenovLindsey Jeske,

Mirzohid MuminovAastha Adhikari

OverviewIntroductionHistory: Current and FutureGrowth strategiesSWOT AnalysisInternational Challenges Competitor AnalysisIndustry AnalysisRecommendations

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.”

IntroductionType – Aktiengesellschaft (Incorporated)Headquarters - Hamburg, GermanyKey people - Thomas-Bernd Quaas, Chairman

of the Management Board Products - Personal Care ProductsRevenue - 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 Future1882 - 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 Future1932 - 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

History: Current and Future1971 - 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 StrategiesMarket 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: StrengthsStrong Brands

Nivea

Brand worth $29 billion

Strong, increasing focus on research and development2006, $118 million on R&D

Produce newly and innovative products

SWOT: WeaknessesOver-Reliance on Europe

L’Oreal and Clarins 46.6%Beiersdorf 72.6%

Weak and low inventory turnoverAverage Industry 5.7Beiersdorf 2.9Products Expiration DateOver stock

SWOT: OpportunitiesPricing pressures from private labels

Well established brands at low price

Wal-Mart and Costco

Beiersdorf need to lower prices

Growing popularity of cosmetic surgeryInstant, long lasting results

Lower demand for Beiersdorfs products

SWOT: ThreatsDemographic Trends in the United Stated

65 and older

Beauty enhancing and revitalizing products

Growth in men’s toiletries and fragrancesAdvertising products

Single men

International ChallengesLawsuit 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 AnalysisL’Oreal

Johnson &Johnson

Avon Products, Inc.

3M Company

World Market Share of Companies at the end of 2006

3M 4%

Others 42%

Procter & Gamble 40%

Johnson & Johnson 6%

Avon Products 5%

Beiersdorf AG 3%

Competitors: L’OrealIncorporated: 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 & JohnsonIncorporated: 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: 3MIncorporated: 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 ProductsIncorporated: 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 AnalysisMain 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!!!