Open Innovation at Beiersdorf – The Launch of Nivea Invisible for Black & White

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Excerpts....

Innovation had always been a part of the company’s ethos. It focused on relevant and effective innovations to deliver product benefits to consumers. During the 1930s, it was the first company to introduce sunscreen products. It was also the first to introduce products like skin cream, body lotion, the pump action spray, and alcohol-free aftershave. ..... In 1922, the company introduced Hansaplast, a plaster with a gauze pad. In 1935, it invented transparent tape named tesafilm. After that, all self-adhesive products came under the tesa umbrella brand. In 1936, Beiersdorf was the first company to launch the world’s first sunscreen, Nivea Ultra-Oil.......

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Innovation was important for companies like Beiersdorf as it functioned in an industry which was highly competitive and the lifecycle of a typical cosmetic product was around four years. In order to remain competitive and on the growth path, frequent introduction of new products was necessary. This called for continuous innovation and the input of ideas from various sources, both internal and external. ..........

In 2008, Nivea planned to come out with a new deodorant. Though there were several ideas for a new product, the company did not find any of them worthwhile and sought to come out with a product that would revolutionize the market. It wanted to develop a product that was different from its existing products, understand consumers’ concerns about deodorants, and find a solution to the issues that had not been addressed till then. Initially, ideas were generated with feedback obtained from consumer surveys and inputs from the marketing department. .........

The R&D team then found that the main reason for the white stains on dark fabric was a residue. Dr.Stefan Biel (Biel), Head of Prototyping Deodorant at Beiersdorf, said, “White armpit residue is caused mainly by the active ingredients in antiperspirants: aluminum salts. We use a special technology by which the aluminum salts are dissolved in an emulsion and then coated in oils that make any residue invisible.” ..........

Nivea Invisible for Black & White was launched in February 2011 in two versions – for men and women. The deodorants were free of alcohol and did not contain any colorants. Within a span of just nine months, Nivea for Invisible Black and White found four million buyers. The product was widely discussed on blogs and online forums. Consumers said that it fulfilled their long unmet needs. Several consumers posted their experiences with the product and recommended it strongly. .........

Exhibit I:Beiersdorf – Brands
Exhibit II:Beiersdorf - Annual Financial Statements
Exhibit III:Passion for Success
Exhibit IV:Some of the Questions in The Survey