Leverage potential in categories

“Outperform” is the first of our four new strategic priorities. We want to leverage the full potential in our product categories in order to gain market shares and thus to outperform our competition by:

  • actively managing our portfolio,
  • strengthening our top brands,
  • launching powerful innovations, and
  • focusing on our customers and consumers.

To capture the potential for accelerated growth and increased profitability in our categories, we have segmented them into three clusters:

Core, growth and value

In our core categories, we will continue to invest in strengthening and expanding our leading positions. In our growth categories, investments will fuel disproportionately high growth of existing and new segments. In our value categories, investments will be tailored to maximize our profit potential.

The acquisition of the pressure sensitive adhesives (PSA) product range from Cytec Industries Inc. in August 2012 demonstrates how we actively manage our product portfolio. It has strengthened our existing high-performance industrial adhesives business and thus offers added value to our customers.

Strengthening our brands

We will continue to focus on our top brands such as Persil, Schwarzkopf or Loctite while further consolidating our brand portfolio. By 2016, our top 10 brands are expected to generate approximately 60 percent of total sales (2012: 44 percent). To achieve this, we will expand our global brands and support our top brands with strong innovations and focused marketing investments. This has been proven with the successful international roll-out of innovative consumer products such as Persil Duo-Caps or Gliss Kur Oil Elixir.

Innovation and customer focus

A consistent innovation process, driving trend-based innovations that are developed to meet the individual needs of our customers and consumers, will help us to reinforce our innovation leadership. By capitalizing on sustainability and on trends such as accessible luxury or convenience, we will ensure that our products remain highly attractive and relevant for our customers and consumers.

To move our innovation capabilities closer to the growing consumer base in emerging markets, we will open seven research and development sites in these markets, for example in India, South Africa and Brazil. Our focus on customers and consumers will be strengthened through targeted customer relationship management programs and initiatives.

To understand and assess consumer needs in depth and to identify which shopper attitudes drive purchasing behavior, we conduct shopper studies in our branded goods businesses. These insights benefit our strong relationships with key retail customers, helping them to optimize their offer to their specific “shoppers.” Examples of how we are leveraging consumer insights and proximity on both a global and local level are the shopper studies conducted by our Laundry & Home Care and Beauty Care businesses.

Innovative Persil Duo-Caps

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Nourishing Gliss Kur Oil Elixir

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