Growing a business by developing products and markets
A Beiersdorf case study

Below is a list of Business Case Studies case studies organised alphabetically by company. To view more companies, please choose a letter from the list below.

Page 5: Market development

Market development

The UK launch of NIVEA deodorant is a good example of market development within the NIVEA range. This is Europe's No. 1 brand. The chart shows 2004 figures for selected countries in Western Europe. It indicates the growth potential for NIVEA deodorant in the UK.
The UK deodorant market is currently worth £300m annually. It is a highly competitive market, dominated by one major manufacturer, Unilever, who account for over 60% of all sales. NIVEA believes its traditional skincare expertise will help to bring new UK consumers into the brand. Currently, 5 million UK consumers buy into the NIVEA brand, all of whom are potential NIVEA deodorant users. By capitalising on this potential Beiersdorf intends to maintain its rapid and consistent growth.

Launching the product in the UK required careful product and market research. Recognising Unilever's dominance of the market, through pre-launch research, NIVEA identified a strong match between traditional NIVEA brand values and those required in a skincaring deodorant, i.e.:

  • protection
  • suitable for my skin
  • mild/skin friendly
  • pleasant fragrance
  • reliable brand
  • high quality.

This allowed NIVEA to enter the market in the more specialist skincaring deodorant segment, away from the bigger, high-performance focused brands, with which the NIVEA brand image had fewer synergies. This market segment gives greater scope for expansion than the entire deodorant market. NIVEA aims to become the number 1 skincaring deodorant in the market, and to control this area, rather than to control the market as a whole. Given the size of the UK deodorant market, dominating the skincaring segment, which accounts for nearly 20% of the market, can be as rewarding as being the leading brand in a smaller market.


Beiersdorf has a history of being an innovative company. It has always been prepared to develop new products for new markets. This is well illustrated by the development of the NIVEA FOR MEN range. This development results from several trends. These include:

  • The softening and blurring of "male" and "female" gender roles
  • Increased spending on lifestyles with more people attending gyms and caring about their appearance
  • New media developments, e.g. the revolution in men's magazines provide direct contact with men through advertising.

NIVEA was the first mass-market brand to set out to develop male facial care/moisturising. The NIVEA FOR MEN range provides straightforward practical solutions to men's skincare needs. It targets men who value their appearance and who see it as a key contributor to self-confidence i.e. NIVEA has diversified into the male sector of the market. The NIVEA FOR MEN range built on the NIVEA brand heritage. At its launch in the late 1990s, the product range included:

  • shaving foam
  • shaving gel
  • aftershave balm
  • sensitive aftershave balm
  • moisturising lotion
  • intensive cream.

The emphasis was on encouraging men to consider using face care products as a route to building a good self image and self confidence.

Beiersdorf | Growing a business by developing products and markets