Growing a business by developing products and markets

LEARNING OUTCOMES FOR THIS LESSON Recognise Beiersdorf as a leading skincare company with famous brands. Understand how growth helps firms to better meet customer needs and to become more competitive. Know that businesses can grow by developing both products and markets.

A business that grows is often better placed to meet its customers' needs. Growth can help a business stay ahead of competitors. Beiersdorf is the skincare company behind leading brands NIVEA, ELASTOPLAST, ATRIXO and EUCERIN. Over the past 10 years the company has grown rapidly through expansion of its products. INTRODUCTION

GROWTH Beiersdorfs growth has mostly been organic, where is has grown from the inside. This is done by: –1. Developing new product categories, e.g. NIVEA FOR MEN. –2. Moving into new countries. Since the 1980s, Beiersdorf has expanded into many Eastern European economies. Today, it has a growing presence in China, a rapidly expanding market.

–3. Expanding market share in established markets. NIVEA has continuously expanded its share of the Lipcare market over a number of years, despite the fact that previously this market was quite a mature and established one.

Beiersdorf has expanded by using each of these methods. –NIVEA Lip Care products are an example of market penetration. New varieties of these meant that the business sold more in its current –NIVEA deodorant shows market development. The NIVEA brand was used so that the product is a known one. –NIVEA Visage Soft Facial Cleansing Wipes show product development. Women who bought skincare products were looking for new ways to clean and care for their skin. EXPANSION

–NIVEA FOR MEN shows diversification. The business carried out market research. This showed that men also wanted face care products. These were not just shaving gels and foams but also new products such as moisturisers. This is a new product range aimed at a new market

CONCLUSION Beiersdorf has remained a huge success. It has kept its place in the market by growing in a number of ways. It has a grown a bigger product range and bigger markets.

ASSESSMENT OF LEARNING OUTCOMES How well do you recognise Beiersdorf as a leading skincare company with famous brands? How well do you understand how growth helps firms to better meet customer needs and to become more competitive? How well do you know that businesses can grow by developing both products and markets?