The Blue Agenda

Beiersdorf is a global leader in the consumer goods industry with a total of over 17,000 employees in more than 150 affiliates.The goal of Beiersdorf‘s business activities is to sustainably increase the company‘s market share by achieving qualitative growth and, at the same time, to expand its earnings base.

The business is divided into two business segments:

Consumer Business Segment

Beiersdorf aims to be the No. 1 skin care company in its key categories and markets. The Blue Agenda sets the strategic direction to achieve this goal and fully leverage the growth potential of our strong brands. It consists of the following strategic focuses:

Success Factors

Brands

The strength of our brand portfolio is one of the keys to our company’s success. Beiersdorf’s brands stand for trust, quality, and consistency, and precisely meet consumers’ needs. In our core business of skin care, for example, NIVEA was again voted Germany’s most trusted brand in 2016*. Our disciplined brand management has succeeded in sustainably expanding our brands’ impact. The good results for our NIVEA, Eucerin, and La Prairie core brands during the reporting period clearly underline this success, as does the positive performance of regional and local brands such as Hansaplast/Elastoplast, Aquaphor, and Hidrofugal.

*Reader’s Digest, Trusted Brands Study, 2016

Innovations

In order to maintain its strong capacity to innovate, Beiersdorf is pursuing a long-term strategy that is clearly aimed at sustainable growth. This means developing and introducing new products with great potential to be future growth drivers. It also means extending the lifespan and growth of our major innovations to make full use of their potential. Combining these two aspects is key to Beiersdorf’s success, as is again reflected in the development of innovations in the year under review.

Markets

Understanding consumers’ specific needs is essential to developing and marketing products successfully. When it comes to consumers’ expectations of products, there are sometimes major differences from region to region. Being close to consumers at a local level is therefore crucial in order to incorporate changing expectations into product development quickly and flexibly. This is the only way to secure market share in the long term.

Efficiency

We improve our profitability with a range of measures to raise efficiency. Most recently these included strong cost discipline across the company, improved cost structures, focused use of the marketing budget, and the streamlining and harmonization of the product assortment. We have also made substantial progress in the management of warehouse logistics and working capital (= inventories plus trade receivables minus trade payables).

Digitalization

Besides expanding our local presence we promoted digitalization across the company to further strengthen our market positions and our relationship with consumers. We focus on three key fields regarding digitalization: Digital marketing, e-commerce, and the expansion of digital capabilities within the company. Firstly, we use digital marketing as an excellent way to directly interact with our consumers and reinforce brand loyalty. The digital content we produce has already won a number of awards. Secondly, the share of e-commerce in total sales has increased significantly, not least because of our close partnership with online marketplaces. Finally, we set up the digital factory, a think tank, which envisions and points at the realization of Beiersdorf’s digital future as a workplace, and the digital campus, which is a digital training platform for our employees.

People

The successes of the past year are first and foremost the achievement of our committed employees. During the year under review, we further simplified our processes and put the company on a considerably more efficient footing. Beiersdorf’s culture of open feedback and dialog at eye level is put into practice in our everyday work. Regular global “town hall meetings” for staff and other local events offer employees worldwide a multitude of opportunities to discuss directly and openly with members of the Executive Board and top management. We also successfully continued our established “CEO Direct” talk format in the reporting year, where the Chairman of the Executive Board takes questions from employees on a specific focus issue.

Beiersdorf Blue Agenda

tesa Business Segment

The tesa Business Segment is an independent part of the Beiersdorf Group that develops, produces, and markets self-adhesive products and system solutions for industry, craft businesses, and consumers. Consistently high quality, exceptionally innovative thinking, and the use of state-of-the-art technology are core elements of its brand philosophy and strategy.