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THE TEAM

APEKSHA PATEL Jain

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GABRIELA VELEZ

Vegetarian + Gluten Free

PRANAV RANAWAT Vegetarian

RACHEL SEGREST Generally Allergic


PREFACE As a group, we focused on an industry often taken for granted. The skincare industry expands across the globe with many brands having strong loyalties, deep cultural ties and years of experience. One such company is Beiersdorf. We chose Beiersdorf because it encompasses these elements while exhibiting the potential to adopt more sustainable behaviors. Through research we chose to narrow our focus to Beiersdorf’s most prominent brand: NIVEA. This book will display all of our team’s preliminary, secondary and primary research as well as our final campaign concept and the partnerships we are proposing to carry out our aims. Throughout the research phase, we have highlighted the important findings that helped guide us to that final campaign. We hope to influence both NIVEA and its consumers to develop more sustainable behaviors to benefit themselves and the world around them. Specifically, we structured our solutions to address three of the UN’s Sustainability Development Goals which are explained more fully after the explanation of our final concept at the end of this book.

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CONTENTS

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Skincare Industry Leaders Purpose Driven Company - Dr. Hauschka Integrated Company - The Body Shop

PRELIMINARY RESEARCH

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SECONDARY RESEARCH

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Company Profile Competitors AUDIO Personas Consumer Facing Strategies Sustainability Goals Notable Ingredients

Third Party Certifications Stakeholder Engagement Four Action Framework Three Tiers of Non-Consumers Service Package SWOT sSWOT


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Ingredient Research Create Cream Experience Insights End of Life Follow Up Survey Applying to Final Concept

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Overview Packaging Branding Truck Ingredients Road Trip Partners NIVEA’S Goals Sustainable Development Goals

PRIMARY RESEARCH

CONCEPT

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PRELIMINARY RESEARCH

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Before settling on Beiersdorf as our company to work with, our team first researched sustainable leaders in the skincare industry. We were tasked with finding and analyzing the most sustainable companies within the market: one purpose driven company and one integrated company. This was all in an effort to understand what was being done right in skincare and to hopefully gain inspiration as to how we could proceed successfully in implementing sustainability within the business sector. A purpose driven company is relatively self explanatory - it’s a business that was started with sustainability as its driving force and one that continues to guide its decisicionmaking processes. Meanwhile an integrated company was not necessarily begun by adhering to all the requirements of sustainability, but with time has come to integrate strong sustainable principles into its operating model. We chose Dr. Hauschka and The Body Shop respectively, the research from which is recorded on the following pages.

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PURPOSE DRIVEN COMPANY - DR. HAUSHKA

After achieving success in creating water based extract from rose petals for over 30 years, Dr. Hauschka started the first WALA laboratories in Germany in 1935. Along with Elisabeth Sigmund, the first line of Dr. Hauschka products were launched in 1967. Dr. Hauschka produces wide variety of Natural Skin care, toiletries, makeup and oral health products. The company celebrated their 50th anniversary by appointing Martina Joseph as the new CEO in 2016. Dr Hauschka Skin Care is a brand founded with an intense focus on the needs of people and the environment.

CONSUMER FACING STRATEGIES: Dr. Hauschka in Hollywood In front of the camera and behind the scenes, Dr. Hauschka Skin Care products help professional makeup artists keep their actors’ skin camera-perfect. We’ve proudly supplied the makeup artists on the TV and film sets below with Dr. Hauschka Face Care, Body Care, Bath & Shower Care and Makeup. Launching New Categories The collection - formulated without fluorides and sodium laureth sulfate - contains certified natural ingredients to help maintain healthy teeth and gums, freshen breath, remove plaque, prevent tartar, and support overall oral health. The line consists of four products including: Labimint Acute Lip Care, Sensitive Saltwater Toothpaste, Fortifying Mint Toothpaste, and Sage Mouthwash. (Launched October 2016)

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Reposting Consumer Posts They are very active on the social media and host a lot of giveaways and repost their customers photos on Instagram, to promote their brands and show honest reviews from the customers.


INNOVATION AND GOALS : The ‘NATRUE’ and/or ‘BDIH’ seals on Dr. Hauschka Skin Care products are a demonstration of our commitment to you of upholding our mission. We display them proudly for the many right decisions we have made to make the highest quality, most effective skin care products possible.

Product Research Accurate, detailed information is the backbone of the work that goes into producing Dr. Hauschka Skin Care. Whether informing the development and optimization of our natural skin care products or the selection, cultivation, storage and processing of our ingredients, reliable information is a necessity. We need to understand what ingredients and base elements exist within a plant, as well as how to best tap into its properties for the benefit of our products and, ultimately, your skin. Our Gardens and Growers As much as possible, we obtain our raw materials from certified organic or biodynamic sources. We have strong partnerships with many suppliers, including a shea butter cultivation project in Burkina Faso, castor oil producers in India and rose gardens in Turkey and Afghanistan, where we work with the World Hunger Organization to help support 700 farmers who grow roses using organic methods rather than cultivate opium. Product Production With his rhythmitised, water-based plant extracts, Rudolf Hauschka developed groundbreaking new pharmaceutical manufacturing processes. Even today, we still use his original procedure to produce our extracts: We chop freshly harvested plants, mix them with water for seven days, subject them to polarities of light and darkness, warmth and cold, and rest and movement, then press and filter them, sometimes adding a little ash to the pressed residues.

Dr. Hauschka products make use of over 70 varieties of ingredients ranging from apricots to witch hazel.

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INTEGRATED COMPANY - THE BODY SHOP CONSUMER FACING STRATEGIES:

The Body Shop was founded in 1976 by Anita Roddick in Great Britain with the intention of using business as a force for good. Under Sophie A. Gasperment Providing dermocosmetics “inspired by nature,” the company’s offerings include skin care, bath and body products, a makeup line including applicators, hair care, fragrances and a line of products created specifically for men. In 2006, L’Oreal acquired The Body Shop and has since expanded the brand into over 60 countries. 2015 brought retail sales of nearly $1.6 billion with profits of $58 million. Considered a leader on the sustainability front, the company practices ethical trading, aims to create relationships with small scale farmers, promotes campaigns for sustainable behavior, provides transparency regarding ingredients and strives to conduct itself by the mantra, Enrich not Exploit. Enrich People. Enrich Products. Enrich Planet.

Campaigns The Body Shop has been carrying out campaigns since its inception. The company values activism which it aptly shares for its customers to see. Long before Dove’s beauty campaign, The Body Shop launched an initiative in 1997 to raise women’s self esteem and challenge conventional standards of beauty. Commitment to Community Trade “We harness the expertise and knowledge of small-scale farmers all over the world to provide us with the finest ingredients. Through our partnership, we provide these local communities fair wages, employment opportunities and a better lifestyle.” Donations through Purchasing As part of its commitment to protect and enrich our world, The Body Shop is restoring habitats to help endangered species like ‘Reggie the monkey”. To make this dream a reality, the company has partnered with The World Land Trust, an international charity working to protect biodiversity hot spots.

INNOVATION AND GOALS : See infographic on following page. 12


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SECONDARY RESEARCH

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COMPANY PROFILE Beiersdorf was founded in 1882 by Paul C. Beiersdorf in Hamburg, Germany. Before opening his business, Beiersdorf had run a steel galvanizing plant and then owned a pharmacy. Today the Beiersdorf brand has grown to 17,000 employees with 150 affiliates and two distinct segments: The Consumer Business Segment which focuses on skin and body care and The tesa Business Segment which provides adhesive products for industrial and electronics applications. Our analysis focuses on the Consumer Business Segment whose sales topped $5.9 billion in 2015 - a growth percentage of 3.6 points from the previous year. According to its 2015 Annual Report, Beiersdorf serves consumers in over 170 countries. Currently under the leadership of Stefan F. Heidenreich, Beiersdorf’s sustainability claims center around its innovation in packaging, numerous campaigns and its initiative to responsibly source select ingredients such as palm oil. Because it is Beiersdorf’s most prominent brand, we have emphasized NIVEA in particular. The name was chosen for the original cream’s white color. The Latin base of the word means “snow” literally translating NIVEA as “snow white”. The sentiment and the branding stuck, as the company aimed to present its products as pure and simple.

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OUR BRANDS

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David Phillips

23 years old Studies Psychology at New York University Lives in Brooklyn, NY

Goals: - Graduate from NYU then travel abroad - Make a difference in the world

“Sometimes you just have to go with the waves.” - Unknown

Motivations: - Witnessing the power of positive change - Watching TED talks

Likes: - Lasting friendships and meeting new people - Mexican cuisine - Surfing - Reading self help books Dislikes: - Getting injuries from outdoor activities - Traveling to Michigan

PERSONAS

Sarah Lee

42 years old Quality Control Officer at Phillips Lives in Alpharetta, GA Mother of two children Goals: - Keep her kids happy and healthy. - Become the GM at Phillips, Alpharetta branch

“Being a single parent is not a life full of struggles, but a journey for the strong.” - Meg Lowery

Motivations: - Being complimented for looking very young - Walking to work everyday.

Likes: - Spending quality time with her kids - American and Italian cuisines - Cooking awesome food Dislikes: - Missing the husband she lost to heart attack - Managing her work, kids and household 19


Deforestation

Oceans & Fisheries

Ozone Layer Depletion

Waste Management

Air Pollution

Chemicals, Toxins & Heavy Metals

Biodiversity

Water

Energy

Climate Change

20 Agriculture. Landfill disposal Production material. despite recyclable Packaging. packaging.

Manufacturing. Deforestation. Freight and shipping.

Herbicides, Disposal down Pesticides, drains during use. Fertilizers runoff into water supply and affect aquatic life.

Glass to Plastic. End of life waste. Manufacturing waste. Manufacturing emissions. Landfilled packaging. Ingredients rely on healthy oceans, damage = loss.

Building stores. Coupons, flyers, bags, etc. Harvesting ingredients.

Shipping Transportation

Consumption Production Waste generation Water consumption

Ingredients. Factories and stores. Packaging.

Ingredients. Industrial sites. Packaging plants.

Toxic ingredients. Industrial production. Titanium dioxide Zinc oxide

Sustainable shipping Eliminate Emissions

Packaging take-back program. Encocurage recycling.

Factory emissions Consumer behavior Business travel

Over production. Improper consumer disposal.

Implement Palm Oil best practices.

Implement more thorough waste water treatment at production.

Reduce chemical reliance. Integrate agricultural ingredients.

Improper disposal. Additional tests called for chemical ingredients.

Foreign chemicals discharged into bodies of water

RSPO certification for Palm Oil. (Self reported numbers.)

Energy mgmt. Local production. Renewable resources. Low emission vehicles.

By 2020: generate 50% of sales with a “significantly reduced� env. impact.

O

Exploitation of hot spots could lead to species eradication.

Factory effluents. Drought Waste water mgmt.

Non-renewable resources. Global transportation.

Deforestation Bags, packaging, and displays in retail related to Palm Oil production. stores.

Shipping. Consumer travel.

Byproducts from consumer use

Cleaning. Disposal in landfill. Would enter water stream.

Water runoff

Ingredient sourcing from biodiversity hot spots.

Ingredients i.e. Palm Oil

Shipping. During use - enters water supply.

Freight.

I

End of life disposal. Product LCA performed on select packaging but not ingredients.

D

Agriculture Processing Shipping/transport. Access to water.

Freight.

Land cleared for agriculture. Emissions from facilities and production.

U

Ingredients. Shipping through bodies of water. Factory effluents.

Production. Manufacturing. Offices. Freight.

Electricity consumption.

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AUDIO ANALYSIS

A U D I O

The Aspects of our AUDIO analysis primarily touched on electricity consumption in both production facilities and retail outlets. Meanwhile running those operations at a global level means transportation and distribution is an important factor in every facet of our operations from extraction to distribution to consumer travel. Amidst these aspects is the

issue of waste encompassing all business-related operations in addition to products’ end-of-life. Beiersdorf’s products rely upon chemical usage which, combined with all of the previously mentioned Aspects results in emissions leaked throughout product life cycles.

Upstream, agricultural production of ingredients could have a negative effect on the climate as land is cleared, fertilizer and pesticides runoff into rivers and oceans and GHG are emitted from production processes. While Beiersdorf has a certification from RSPO (Responsibly Sourced Palm Oil) the numbers are self-reported and the

production of palm oil is still an operation to be monitored. Deforestation is an issue as the company produces paperbased materials for marketing. Freight and shipping still a necessity throughout the supply chain creating an opportunity to centralize manufacturing and reduce waste throughout the process.

Downstream impacts of disposal have been somewhat mitigated as Beiersdorf use product LCA’s to reduce the footprint of its packaging by 15%. Plastic packaging is now used in place of glass pots, allowing consumers the opportunity to recycle. However, downstream factors still include the emissions and waste associated with the

transportation necessary in getting both the final products into retail stores as well as customers.

While Beiersdorf used LCA’s to reduce the Impacts of its packaging, the company did not extend this method to its skincare products. Some of the manufacturing and retail facilities use non-renewable resources while the company’s global presence means heavy reliance on freight. Meanwhile, its reliance on chemicals in production

and processing makes Beiersdorf’s operations contribute to water contamination, and leaves the supply chain vulnerable to severe weather.

Some of the greatest opportunities for Beiersdorf lie in renewable energy, decreasing emissions, launching a take-back program for packaging and increasing localization, while making use of pilots and partnerships.

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CONSUMER FACING STRATEGIES 2013 Employees Christmas Market 2015 German Life Saving Association 2016 Reading for fun in kindergartens

NIVEA Cares for Families Map In 2013, Beiersdorf created the “NIVEA Cares for Family” campaign. In the last three years, NIVEA has committed to supporting families in need across the globe. By 2016, 342,745 families have already been supported by “NIVEA cares for family.”

2014 Healthy school breakfasts The Breakfast Club of Canada

2016 Young Business Talents

2015 Daycare with Creativity Môm’Artre

2013 NIVEA family parties SOS Children’s Villages

2013 Blue Bear

2013 Safe Playgrounds

2014 Safe Playgrounds

Map Key: Year Initiated Campaign Partner (NGO)

2014 Share the Care

2016 Back to School

2013 Blue Libraries

2013 Peaceful Learning Environment TAAP

2016 Sentuhan Ibu

2014 Caring families Plan Intl. Brazil

2016 Developing the Future SOS Children’s Villages 2016 Strengthening Family Ties SOS Children’s Villages

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2015 NIVEA blue hearts

2014 Ubuntu Care is beautiful

2014 Social team events

2014 2015 NIVEA Family Donations with NIVEA Tales Christmas Boxes SOS Children’s Villages SOS Children’s Villages

2015 Mom’s Touch ASEEMA


Bringing First Aid HOME Launched in 2015, Beiersdorf’s “Bringing First Aid Home” motivates as many people as possible to take part in a first aid course. Beiersdorf has been collaborating worldwide with the red cross to improve knowledge, skill, and confidence in people (particularly children) to use first aid.

NIVEA Men + Real Madrid Early in 2016 NIVEA Men and Real Madrid partner to give soccer fans a virtual reality experience to feel like they were part of the team. Three 360 degree videos give fans an exclusive insight into the sacred halls of Real Madrid in Santiago Bernabeu, that only come from being a player. With the purchase of two NIVEA Men products, each fan gets a pair of VR glasses.

NIVEA Men German Design Award Winner

“This is a first, and a very exciting step for us, but it won’t be our last. We will use the possibilities of digital innovations a lot more in the future to draw out our fans’ enthusiasm.” - Guillaume de Vitton Global Head of NIVEA MEN

“With this product we managed the impossible: persuading even men who never previously used any skincare product to finally adopt one into their daily grooming routine.” - Giuseppe Berardi Global Brand Manager NIVEA MEN The design was developed by Beiersdorf Research & Development together with the Hamburg f+s feldmann+schultchen design studio. 23


SUSTAINABLE GOALS + INITIATIVES By 2020: Products

Generate 50% of sales from products with a significantly reduced environmental impact.

Planet

Develop a new climate target based on recommendations of the UN Climate Conference in Paris 2015 (COP21), supported by the WWF Germany.

People

By 2016: Have achieved 18% of annual sales from products with a significantly reduced environmental impact. Cut our CO2 emissions per product sold by 46% – exceeding planet commitment for 2020 by 16 percentage points (Base Year 2005). Have expanded the scope of CO2 mapping and actions. Have gone beyond production centers to include categories like warehousing, transport, third party manufacturing, as well as employee travel and offices.

Aim to reach and improve the lives of one million families.

Since 2013, we have supported a total of 425,837 families through our global social commitment.

THINK PLANET CAMPAIGN

PEARLFINDERS

In 2012, the company-wide “We care.” engagement program focused on informing our employees about our sustainable strategies and targets. They were actively involved in the implementation and were inspired to make personal changes to become more sustainable. After success with the companywide “We care” campaign, Beiersdorf launched the “Think Planet” Campaign in 2013. This campaign raises awareness about the small steps employees can take to protect the environment, starting at work and filtering into their daily lives. The message, “be part of it, be creative, and share your ideas with your coworkers.”

Pearlfinders connects external cooperation partners from diverse industries, universities, and scientists with Beiersdorf researchers. Beiersdorf ensures collaboration and confidential exchange of ideas in a secure online environment. To ensure a trusting and open collaboration, community members can submit ideas on the Pearlfinders platform without fear that they will be misused. Because of the overlaps between areas of research, Beiersdorf hopes their unique Open Innovation environment will encourage more idea exchange across industries such as biotechnology or the food industry.

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NOTABLE INGREDIENTS

Emulsifying Agent Lanolin

Humectants

Petrolatum Glycerin

Paraffinum liquidum

Oil extracted from the wool of sheep. Used since discovery by chemist Isaac LifschĂźtz in 1900.

Prolonged contact destroys the natural oily barrier of the skin, leading to dryness. Some moisturizing effects dependent upon the climate.

Preservatives

Methylparaben Butylparaben

Surfacant

PEG-150 Simethicone

Isobutylparaben Propylparaben

Parabens are estrogen mimics. Excess estrogen is a trigger for cancers of the breast, ovary, uterus and testicles and may have effects on fetal development.

Synthetic Fragrances Parfum

Limonene Geraniol Linalool

Hydroxycitronellal

Form a film that traps other substances beneath them. May exacerbate skin irritation caused by sweat or other substances.

Severe skin and eye irritants. May trigger asthma attacks. Potential hormone-disrupters and carcinogens.

The ingredients in classic NIVEA cream are not dissimilar to many other lotions in the market today. Not only are these ingredients harmful for skin during use, they are also harmful for the aquatic ecosystems they encounter when they are washed down the drain. We learned that many ingredients that make lotion look and feel the way we have come to expect are counter effective as a way to protect and heal skin; the purpose of lotion. 25


COLLABORATE Advertising

HIGHER

Employees

Scientist Researchers

Pearlfinder

Retail Stores

CEO

NGOs

POTENTIAL FOR COOPERATION

News

LOWER

Competitors Financial Analyst

Sustainable Designers

Consumers

Plaintiffs

MONITOR LOWER

PETA

Policymaker

DEFEND

ISSUE INTENSITY

HIGHER

The stakeholder engagement map we implemented allowed us to rate stakeholders to see who had the highest potential for collaboration and who needed to be monitored. Connect: Considering the stakeholders who had the highest potential for cooperation, retail stores and NGOs ended up in the connect section. While these stakeholder do have high potential for cooperation, their issue intensity is low. Collaborate: The CEO, employees, scientists, researchers, advertising, and Pearlfinder are the best options for collaboration as they are highly likely to cooperate with Beiersdorf while having much to offer the company. 26

Monitor: Having fairly low incentive to cooperate with Beiersdorf, financial analysts still produce information that is relevant to the company’s reputation. Investors are most concerned with a company’s financial rating while other stakeholders present Beiersdorf with my pressing issues. Defend: Stakeholders who seemed unlikely to cooperate while covering issue that were highly relevant to the company included competitors, news media, consumers, sustainable designers, plaintiffs, PETA and policymakers.

STAKEHOLDER ENGAGEMENT MAP

CONNECT


FOUR ACTIONS FRAMEWORK

RISE Raising awareness among suppliers to manufacture more sustainable ingredients and employers to use as many sustainable methods of production as possible. The manufacturing standard must be raised to meet the industry average for becoming more sustainable.

ELIMINATE Beiersdorf has been using many of the same ingredients for over a 100 years, and there is an urgent need to eliminate some of the harmful chemicals used in the production of its products such as NIVEA Creme. Eliminating dangerous substances from the production cycle can lead to development of better more environmentally friendly ways of manufacturing products as healthier products for humans.

CREATE

NEW VALUE CURVE

Creating various programs to initiate a more sustainable future. For example, starting a take-back program for product packaging. Creating awareness about sustainability at all levels of the company. Creating better acquisitions can lead a long way towards reaching the sustainability goals.

REDUCE Reductions are an important way to make company greener. Factors such as industrial emissions and carbon footprints must be reduced well below the industry’s standard. 27


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Tier 1

Tier 2

Tier 3

Tier 1

Tier 2

Tier 3

The soon-to-be customers are the easiest to target group of people who are currently using products very similar to Beiersdorf but from its competitors like L’Oreal or Johnson and Johnson. Effective ad campaigns, branding strategies and proper targeted marketing are effective ways to get the ‘tier 1’ audience under the umbrella of Beiersdorf. Improving the traditional methods of manufacturing and making products more sustainable will also aid in increasing the customer base.

The refusing non-customers lack proper knowledge about the product and hence refuse from buying them. An online presence, social media marketing, ad campaigns, awareness programs are some of the methods which may help in penetrating to the tier 2 audience. This group of people needs to be convinced to start using Beiersdorf products instead of what they traditionally use. The unexplored noncustomers are the poor

group of people, who for a variety of reasons cannot buy Beiersdorf products. One of the major reasons being poverty. Such people can be helped by the company provide special discounts to tier 3 group of customers. Also, Beiersdorf can initiate social cause schemes and events so that the normal purchases made by the customers of the current market can be utilized to uplift the tier 3 segment.

THREE TIERS OF NON-CONSUMERS

Current Market


SERVICE PACKAGE

ENABLING SERVICES Retail Stores Manufacturing

Distribution

Payment Services

Online Sales

CORE SERVICES Providing skin care

Social Campaigns

Pearlfinders

Customer Service Mobile App

The Service package is useful in identifying the core services offered by Beiersdorf. Apart from core services, a sneak peak at the enabling and enhancing services gives a bird’s-eye view on which entities are more important than others. Core Service: Core services include the primary services that Beiersdorf delivers i.e. skin-care. It is the single largest section of the company and thus it is placed in the core services area of the Service Package. Enabling Service: Enabling services are required for the core services to function, but these may or may not be visible to the business customer. Some of the enabling services include manufacturing, distribution, payment service and retail stores. Enhancing Service: Enhancing services are not necessary for the core services to exist, but they make the service attractive. Enhancing services for Beiersdorf include pearl-finder, social campaigns, customer service and mobile app.

ENHANCING SERVICES 29


SWOT ANALYSIS

Positive

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Negative

Internal

Focused R&D Business Performance in Consumer Care Net working Capital Surplus Operational Performance

Lack of Presence in Organic Cosmetics

External

Favorable Renewable Policies in EU Prospects of Growth in China Positive outlook of Packaging Industry

Counterfeit Products Changing Consumer Preferences Regional and Economic Inuences


A traditional SWOT analysis looks at a company in terms of its strengths, weaknesses, opportunities and threats. Using a SWOT analysis produced by Reuters we were alerted to a need for NIVEA to enter the organic cosmetics market. This finding was in alignment with the results of our previously mentioned ingredient analysis. NIVEA products use chemicals that do not positively serve human health. Our team agreed that a logical next step would move NIVEA away from chemical components and toward more natural elements.

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sSWOT ANALYSIS

ACT

PRIORITIZE

Trusted Inexpensive Pearlfinders Broad reach Philanthropic Years of experience Scientific Innovation Qualified employees Most market share worldwide in 149 categories

STRENGTHS Multiple avenues available for feedback Need more closed looped systems in production Connections to nature through tech Better infrastructure for handling waste

OPPORTUNITIES

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Social Responsibility Sustainability Online Media Higher Education Bubble Climate change Threatened species Lack of biodiversity

US presidential election Policy Changes Stress Green Washing Global warming Water contamination

Chemical reliance Established customers International distribution

WEAKNESS Over population Global warming Water contamination Demand for natural ingredients Operations contributing to lack of biodiversity

THREATS Refugees Political Unrest Demonetization of Rupee Desire for Nature Suburban sprawl World hunger

ENVIRONMENTAL CHALLENGES & TRENDS

Drone usage Wearable Tech Internet of Things Smartphones Air pollution Overpopulation Urbanization


Similar to a traditional SWOT Analysis, and sSWOT provides a framework to evaluate a company’s strengths, weaknesses, opportunities and threats. The sSWOT (the “s” stands for sustainability) goes into more depth though, orienting these aspects among environmental challenges and global trends while calling attention to prioritization and action. Performing this analysis gave a our team a much better perspective on NIVEA’S sustainability status. Our research showed that numerous issues such as climate change and water contamination were intertwined with NIVEA’S operations. We found that NIVEA needed to close the production loops and participate more fully in the circular economy while using more natural ingredients and reducing the company’s chemical reliance.

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Johnson & Johnson

Sustainable

Body Shop

Beiersdorf

Avon

L’Oreal

BLUE OCEAN

Unsustainable

COMPETITOR MAP

Dr. Hauschka

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Packaging

Ingredients

Energy

Water

Environment

Raw Material

Social Impact

Animal Cruelty


We compared some major players in the skincare industry against Beiersdorf including Johnson and Johnson, Dr. Hauschka, The Body Shop, Avon and L’Oreal. Points plotted on the lower section of the graph mark areas where the companies are less sustainable, while points on the upper end of the graph indicate areas where they are more sustainable. Most of the companies performed poorly in ingredients and water stewardship while ranking high in social impact. Avon was a bit scattered in its sustainability efforts, and Johnson and Johnson was the least sustainable companies of all. Although Dr. Hauschka is one of the most natural companies, it still needed improvement in water. Beiersdorf is represented by the dark blue line. The company produced average performance in packaging, energy and animal cruelty with an above average rating in social impact. Areas that would benefit from improvement are ingredients, water and raw materials. The blue ocean of opportunity lay in addressing water issues. As all competitors assessed yielded low results in handling water, our team noted that proposing a solution pertaining to water could give Beiersdorf both a competitive and a sustainable edge.

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After completing our research on NIVEA and its competitors, we began to consider how we could address some of the United Nations Sustainable Development Goals. We listed all of the SDGs, and based on the information we gleaned from our secondary research, we began brainstorming possible final solutions. By starting this process early, we could better understand what possible directions to take our primary research experience. We noticed that most of the secondary research pointed to the ingredients used in classic NIVEA cream and the health of the water, both from NIVEA’s production and the users’ consumption. Beiersdorf focuses a lot on education opportunities for women and children. We looked for ways to take advantage of what they are already doing and push those steps toward equality farther.

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SDG BRAINSTORM

Organic Products - Lavender Garden: Buy, Grow, Use Community Gardens - Large scale + Raw Ingredients Homeless Work Program + Food Skin Care #DatingApp Highlight employee for think planet initiative + “its the little things” Women in S.T.E.M. Expand Think Planet to Consumers Better ingredients, Better people, NIVEA + Papa Johns Friendly environmental reminders on products

Make bottles look like a Particular figure or shape + Fish + Woman Ocean Plastic Bottles “Small Victories” “Doesn’t matter who you are, everyone has skin” Product packaging to evoke emotions Gender: Free Skincare Social Media Presence promoting health Educating Women in Developing Nations Knowledge sharing + Partner with Teach for India (NGO) 37


3

PRIMARY RESEARCH

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E VERYB ODY HA S SKIN are you taking care of yours?

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RESEARCH

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We decided to create a pilot line of skin lotion for NIVEA. Our goal was to familiarize ourselves with the process of making a lotion that genuinely nourished and improved skin while using all natural ingredients that were as locally sourced as possible. We researched different recipes from our competitors, people who were already familiar with making natural lotions, which ingredients we could find in Georgia. We paid special attention to how those ingredients that weren’t found locally affected their local communities and environments. We spent an evening creating different creams, testing combinations of oils, preservatives, blending methods. After failing several times, we ended up with three different lotions. We distributed them among ourselves to test for a week before attempting to create a primary research experience where we put the lotion on strangers.

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INGREDIENTS

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RECIPE

1

2

1 cup olive oil 3 ž cup aloe Ÿ cup beeswax/shea butter 1 cup coconut oil 3 tbsp arrowroot powder) 2 tbsp honey

3

4

1.

Put all the butter, oils and honey together and melted together over double boiler. Brought aloe in separate pan up to the same temp.

2.

Drizzled oil into the aloe vera while using the immersion blender. Continued to blend while adding the arrowroot powder.

3.

Scraped the sides of the bowl, blended some more then placed in the freezer for about 10-15 minutes. Alternated taking cream out of freezer, blending, then returning to freezer for 10-15 minutes about 5 times.

4.

Store final lotion airtight container in the fridge for up to four weeks.

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THE EXPERIENCE

After creating the lotion and testing it on ourselves for a week, our plan was to understand the reception of a 100% natural lotion to what people expect lotion to look, smell, and feel like. We wanted to know what people pay attention to when buying lotion, how they react to different lotions, and how those lotions react with their skin. While we are trying to promote natural and organic ingredients, we are not trying to get people to stop buying NIVEA. With longstanding consumer loyalty, we want to make sure NIVEA keeps their good name with their current consumers, while branching into a newer, younger market of ingredient conscious consumers.

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1 2 3 4

We chose the phrase “Everybody Has Skin� as a way to draw people in is an all encompassing blanket statement about humans, reducing any sort of inequalities around the topic of skin care.

The experience began with a survey to understand purchasing habits. We purposefully left out branding because we wanted to understand the why people truly made the decisions they did rather than focus on brand loyalty.

We then had each participant test three lotions on their inner arms. We created labeling icons for each of the three lotions based on where on the arm we placed them. These icons were introduced at the table in front of each glass and acted both as a label and as directions for the participant.

We then used the same icons in the follow up survey to ask their reaction to the lotions about an hour later via a Google survey texted to their cell phones.


3 E V E RYB O DY H A S S K I N Age:

Occupation:

Gender:

How many times per week do you use lotion? 5+

2-4

1

Never

2

What is your skin type? (circle all) Dry

Oily

Combo

Sensitive

Please rate the impact each factor has on your lotion purchasing decisions. (1 = low, 5 = high) Price

1 2 3 4 5

All natural Ingredients

1 2 3 4 5

Organic Ingredients

1 2 3 4 5

Packaging

1 2 3 4 5

1 2 3 4 5

Smell

1 2 3 4 5

Other:

What do you do with empty lotion containers?

After this survey we’ll ask you to please leave your phone number so we can send you the link to a couple short follow up questions. The survey is anonymous. Phone numbers will be deleted.

Age:

2-4

1

Never

What is your skin type? (circle all) Dry

Oily

Combo

Please rate the impact each factor has on your lotion purchasing decisions. (1 = low, 5 = high) Price

1 2 3 4 5

All natural Ingredients

1 2 3 4 5

Organic Ingredients Packaging Smell Other:

4

Occupation:

Gender:

How many times per week do you use lotion? 5+

1

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5

What do you do with empty lotion containers?

Sensitive

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EXPERIENCE PROTOTYPE


Advice from class after prototype: Add essential oils to made lotion Clarify instructions on surveys Add “Smell” and “Residue” to surveys Make all creams look messy Be mindful of color, texture, placement Change “moisturizer” to “lotion” Mindful of aesthetics. Removed black box from sight After prototyping with the class, we had a better understanding of how people would react to being asked to put unmarked lotions on their arms. We had rubber gloves and black phone number box but removed them to alleviate any unnecessary anxiety. To minimize the variables between the three lotions, we switched from a white Kiss My Face to a yellow Weleda hand lotion, moved the positions of the lotions on the participants arms, and remade a thicker more traditional looking lotion with essential oils. We added the purchasing factor of “smell” to the pre-experience survey, as well as asked the participants opinion about the smell of each lotion in the follow up survey. In order to make the transition from the physical experience to the follow up survey as easy on the participant as possible.

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GULFSTREAM EXPERIENCE

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FORSYTH EXPERIENCE We performed the first experience at SCAD’s Gulfstream Center for Design on Wednesday, February 15. Students at Gulfstream are more accustomed to fellow students conducting research and therefore were more likely to participate. With the help of more peers, we were able to fine tune our experience for the world outside of school. Again, the participants were interested primarily in the smell of each lotion. We noticed that each person would smell their arm as soon as we administered the lotion before moving on the next one. Some students even refused some of the creams because of the initial smell. Finding from their preliminary and post surveys will be discussed later. The following Saturday, February 18th, we conducted our experiment at Forsyth park from 9:30 to 11:30 am; peak hours of the Farmers’ market. It was a cool morning, and we had trouble getting people interested in rolling up their sleeves to participate. However, those who did participate were helpful both in the written surveys and in person. However, we did not receive as many post surveys from these participants, if they decided to give out their phone numbers in the first place. Most of the participants could pinpoint NIVEA in the line up of lotions, which pointed to our prior understanding of NIVEA’s current consumer market.

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EXPERIMENT FINDINGS

FEMALE MOTIVATIONS BY AGE At a glance, the smallest lined area exhibits the least concern for packaging while the largest lined area shows that all natural ingredients hold the highest importance.

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MALE MOTIVATIONS BY AGE In a simplified way, the small area of the yellow packaging line exhibits that men are the least concerned with it as a buying factor. The older a man is, the less he seems to care about packaging.

BUYING HABITS BY SKIN TYPE The buying decisions of people with Dry+Sensitive skin were least affected by price and most affected by ingredients. As with the other data, the small area of the package line indicates less concern over packaging

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END OF LIFE FINDINGS

GULFSTREAM CENTER FOR DESIGN

40.3%

FORSYTH FARMERS’ MARKET

62.5%

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39.6% 28.1%


19.2% 4.8%

Between the groups of participants from Gulfstream and those from Forsyth, the majority of both disposed of their spent lotion container by throwing them in the trash. Roughly a third of both recycled and the smallest percentage reused the containers for something new. The notable difference is that design students at Gulfstream claimed to throw away a significantly lower amount than participants in Forsyth. This meant design students not only recycled more but they were 4 times more likely to reuse their containers than the older, non-designer participants.

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FOLLOW UP SURVEY RESULTS

OVERALL

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SMELL

SOFTNESS

RESIDUE

RECOMMENDATION

NIVEA

3.1

3.1

3.1

2.0

2.8

OUR TEAM

2.7

2.6

3.3

2.2

2.6

WELEDA

3.6

3.4

4.2

2.3

3.2


The organic competitor cream we chose to test was Weleda which unsurprisingly performed better than our custom made cream and NIVEA. Our blind user test proved useful because it showed that without brand as a factor, users will favor creams that offer more naturallybased ingredients. The cream we created, did not have an appealing look and was without a deliberate scent until the middle of the Gulfstream testing. This means that the numbers surrounding smell are somewhat skewed. However, verbal feedback from testing clearly exhibited that users react strongly to scent. Not only did most testers immediately smell themselves where the creams were applied, the majority of participants refused to try our “unscented� cream because it smelled so bad. 55


APPLYING FINDINGS TO FINAL CONCEPT

NIVEA currently relies on the loyal customer base it has accumulated over the past 100+ years. Many people we spoke to said using NIVEA ran in their family and could often be found amongst an older relative’s toiletries. We feel that we can break into an emerging market of millennials with a more naturally derived lotion using responsibly sourced containers. With all of our findings in mind, we plan to launch a pilot line of lotion made of all natural ingredients as locally sourced as possible in bottles made of recycled ocean plastic. We chose to launch the pilot line in California because of its proximity to the Great Pacific Garbage Patch, the agricultural resources, sunny climate, and the mindset of its residents. We plan to partner with an NGO that gathers ocean plastics to create a bottle that can be used multiple times or reincorporated into the circular economy.

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CURRENT TARGET MARKET

EASE OF PRODUCTION

The older women who participated in our surveys indicated above all the importance of all natural and organic ingredients, which affirms the need for NIVEA to create a presence in the market for natural products. If these older demographics were to know the true negative characteristics of NIVEA’S current ingredients, the company could lose much of its current market share.

We created our own cream not only to test user responses but also to understand the process that goes into creating a cream from all natural, organic and locally sourced ingredients. While we faced obstacles to making our finished creams look appealing or “creamy” we believe with NIVEA’S century of scientific experience, the company should have no issues producing such a cream that is fit for the contemporary skincare market.

EMERGING TARGET MARKET

COSTS

Meanwhile, millennials are rapidly taking up market share in various industries, skincare included. In order to capture this emerging group of consumers, NIVEA also must incorporate better ingredients while still being conscious of price.

Millennials marked price as an important aspect of their buying decisions. They also marked ingredients as a highly important factor, and across participants, all natural ingredients were considered a more important factor than organic ingredients. Organic products are typically more expensive than other options because organic farming is more challenging and thus less lucrative for farmers than conventional farming. With the above information in mind, NIVEA should first focus most heavily on using all natural ingredients in the new cream we plan to pilot. Having organic ingredients is ideal and certainly an area we wish to strive for but given the costs and greater consumer concern over products being all natural we believe the best step is for NIVEA to focus its efforts on using all natural ingredients only.

NEW PACKAGING Users across the board throw many of their used containers away, so there is an opportunity for a product that consumers can reuse for a different role and thus divert waste from landfills and oceans.

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58


4

CONCEPT

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Eureka is a proposed cream to be piloted for NIVEA. It is sourced from all natural local ingredients from small scale producers. Packaged in a container made of recycled ocean plastic, a portion of sales will go to Clean Water Action, an NGO focused making clean water accessible to all. The pilot line will be launched in California due to the state’s proximity to the Great Pacific Garbage Patch, strong agriculture, high population of emerging market customers, and concerns of skin damage from the sunny climate.

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PACKAGING

The water ripples are also a way to keep water in the forefront of the consumer’s mind. Because lotion is part of a daily or weekly routine, the consumer will be reminded of water and ocean health on a regular basis. This will hopefully help them make further decisions about the packaging other things they buy is made of, remind them to stay healthy by drinking more water, and consider the amount of water they’re using in their daily lives. We’ve introduced a take back program in order to further reduct the waste leading to the ocean. When the consumer is finished with the tub, they can return it for a discount on their next purchase of eureka.

Because of the information we found from the primary research, we decided to focus water. We wanted to improve NIVEA’S relationship with water, through production, and the consumer’s relationship with water, through disposal. The top of the container is designed to look like water ripples. Those ripples also act as the negative of the bottom, allowing the tubs to stack in transportation and storage. The tub is made out of recycled ocean plastic. With the help of Envision Plastic, the company that worked with Method in 2012 to create the first ocean plastic liquid soap bottle. By using ocean plastic, we are helping to clean the ocean of harmful debris that is doing irreversible damage to aquatic life.

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CONSUMER WASTE STREAM Our oceans.

Your lotion.

Your container.

Your discount.

Take care.

OCEAN PLASTIC FACTS

80% of total ocean debris is plastic.

1 square mile of ocean holds 46,000 pieces of trash.

Millions of sharks and sea birds die from ingesting ocean plastic annually.

Pacific fish ingest 24,000 tons of plastic each year.

267 species are negatively affected by plastic.

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BRANDING

Original NIVEA Logo Eureka Logo

In order to further connect Eureka to water health, we created a logo showcasing a fish along with a new color scheme. Because NIVEA’S circular logo and typeface are recognizable, and we didn’t want to lose that customer loyalty. We used circles to create the silhouette of a fish, a circular typeface, and NIVEA, in its original typeface. We named the product Eureka. Eureka means “I found it” in Greek. It encompasses our idea of finding trash in the ocean to create the tub, finding local ingredients for the cream, and we want people to feel like they’ve found the perfect lotion that is natural and locally sourced.

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Our marketing road trip launches in Eureka, California and Eureka is the state motto. This connection to the state will create a stronger bond with our target customers in California, helping the pilot line gain popularity.


TRUCK DESIGN

Farmers’ market customers come across the Eureka trailer while purchasing local produce or see it driving along the street.

We wanted to create a more memorable experience for the early adopters and early majority of the cream. To launch the product our team decided to first aim for farmers markets and beaches along the California coast. Our research indicated that millennials would be the ideal target market for the Eureka cream to cater to, so we chose destinations heavily trafficked by millennials. Additionally, we wanted the launch to be big and memorable - something users would remember. Towing a mobile retail store to farmers’ markets would do just that. The trailer would park at farmers’ markets, beaches, college campuses along the coast of California. Once open, the trailer becomes an inviting space with a plant wall, natural light, and the opportunity for users to enter, test the lotion, and learn more about Eureka.

1

Customers enter the trailer and engage with a team member to learn more about the product. Have the opportunity to smell and test the lotion.

2

Purchase Eureka and are given a card to take home that further explains the partnerships, benefit of using ocean plastic, their role in the life cycle of the tub, and where they can find us on the road.

3

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INGREDIENTS

Eureka

Olive Oil from Pasture 42 Susan and Ken run a small scale family farm on 32 acres of pasture dedicated to sustainable farming practices, including preserving the land, and promoting local consumption.

Santa Rosa

Sacramento

Raspberry Seed Oil from Glashoffs Farms Larry and Maria’s families have been on the same 89 acres since it was established by Larry’s grandfather in the early 1900’s.

San Francisco

Santa Cruz

Jojoba Oil from La Ronna Jojoba Company Donna and Larry have dedicated their farm to producing jojoba oil as a replacement for sperm whale oil, commonly used in cosmetics.

San Luis Obisbo Santa Barbara Los Angeles

San Diego

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NIVEA can take advantage of local small scale farmers, who are focused, on producing with environmental consciousness. California leads the nation in production of a lot of produce, nuts, and herbs. We found some small scale farmers producing ingredients we can use in Eureka. Family farms like Glashoff’s have been around since the early 1900s. They have been passed down through generations and are cherished by the families. All of these producers are vendors at the farmers’ markets we have chosen so Eureka users will already be familiar with their products. With the help of NIVEA’s Research and Development team, the lotion can use these ingredients, have a “normal” look and feel, and benefit the local economy. We found that many oils have a natural SPF. One in particular, Raspberry Seed Oil, can range from SPF 25 to 50. By adding this ingredient to the lotion, we can help protect Californians’ skin during the nearly 300 days of sun every year.


ROAD TRIP

The distribution route for the traveling shop will encompass farmers markets in popular beach towns along the California coast. Because this pilot cream is geared at capturing millennial market share, we selected stopping points in areas frequented and inhabited by millennials. We want our product to serve a needed function of repairing and protecting skin, so we opted to keep the route along the coastline with the intention of reaching beach goers who activities entail extended sun exposure and potential skin damage. The trip will begin in the northern part of the state in Eureka, California. Eureka! is the state’s motto, and it means “I found it” - a fitting term for the theme of finding skin care that truly heals your skin using products found locally. In Eureka, CA our team will visit the North Coast Growers’ Association Farmer’s’ Market as well as the local beach before heading south toward Sacramento whose first stop will be the Midtown Farmers’ Market. From there the truck will travel a short distance to the Davis Farmers’ Market in the Central Valley. This area is renowned for its agricultural diversity as well as its small-scale eco-conscious farming efforts. From the central valley, the mobile shop will move south to San Francisco and down through the state, hitting major millennial hot spots such as the Echo Park Farmers’ Market in L.A. and the San Luis Obispo Farmers’ Market on the way. The final destination along the route is to be Horton Square Farmers’ Market in San Diego.

North Coast Growers Association Market

Eureka

Midtown Farmers’ Market Davis Farmers’ Market Sabestopol Farmers’ Market Sunday Marin Farmers’ Market Ferry Plaza Farmers’ Market Santa Cruz Farmers’ Market

San Luis Obispo Farmers’ Market Santa Barbara Farmers Market

Santa Rosa

Sacramento

San Francisco

Santa Cruz

San Luis Obisbo Santa Barbara Los Angeles

Santa Monica Farmers’ Market Echo Park Farmers’ Market Horton Square Farmers’ Market

San Diego

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PARTNERS

With a manufacturing plant located in Chino, California, Envision Plastics will serve as the ideal partner to produce ocean plastic based bottles for NIVEA’S Eureka line. Not only does the location of the plant align with this pilot programs local focus, but Envision also has a history of working with ocean plastics before. In 2012, Envision joined Method to serve as a key player in the manufacture of the cleaning company’s ocean plastic bottles for its 2-in-1 hand soap. Ocean plastic bottles are made with a blend of recovered ocean plastic and post-consumer recycled plastic, a combination that results in a uniquely gray resin.

Located in Oakland, California, Clean Water Action is an organization aimed at improving the environment, health, economic well-being and community quality of life. The mission for CWA is to enact these goals through the world’s most vital substance: water. Partnering with Clean Water Action is extremely beneficial to NIVEA’S pilot product, Eureka as the underlying motivations of both CWA and Eureka are focused on improving water quality while spreading awareness about water-related issues. Our research has shown that NIVEA’S operations regarding sustainability could be bettered by addressing issues surrounding water.

Eureka’s goals:

CWA’s goals:

Produce substances locally and sustainably

Protect our water from dirty energy threats.

Use no water in product Reduce ocean pollution by utilizing ocean plastic

Build a future of clean water Protect water and health.

Source natural ingredients from eco-conscious farms

Prevent loss of sea life 68

Get health-harming toxins out of everyday products.


NIVEA’S GOALS

Sustainability Goals by 2020 Products

With Eureka Products

Generate 50% of sales from products with a significantly reduced environmental impact.

Ocean plastic bottles take trash from the ocean, reducing production from virgin materials.

Planet

Planet

People

People

Develop a new climate target based on recommendations of the UN Climate Conference in Paris 2015 (COP21), supported by the WWF Germany.

Aim to reach and improve the lives of one million families.

Locally produced/distributed natural ingredients in the cream help cut down on emissions from shipping and large scale manufacturing. Making the lotion out of natural ingredients also prevents toxic chemicals from being washed into waterways from agriculture to end of life with the consumer.

Local production supports family owned farms. Partnership with Clean Water Action advocates for clean water laws across the country.

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IN CONCLUSION

The aim of this project was to reduce Beiersdorf’s negative impacts and guide the company to a more sustainable business model. One of the ways in which this objective was to be quantified was through the United Nations’ Sustainable Development Goals (SDGs). With the Eureka pilot, we have created a plan in which Beiersdorf can successfully address three SDGs: Reduced Inequalities, Responsible Consumption and Production, and Life Below Water.

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SUSTAINABLE DEVELOPMENT GOALS Unlike other skincare products, the Eureka line is not biased toward any specific gender or demographic. The packaging is simple and straightforward without indicators of whom should be buying it. While this pilot is California-specific, the idea of this pilot is to implement it in different localities across the globe. Sourcing ingredients and labor from local

communities would aid in reducing inequalities as more local people would be brought into the manufacturing and decisionmaking processes. Meanwhile, one of the reasons why Eureka uses ocean plastic is because it is an available resource that impacts the state of California. When employed in other states or countries, similarly relevant materials could be used engaging more local participation along the way.

The plan for creating this new line stemmed from performing an AUDIO analysis on NIVEA in which the products’ production and usage phase resulted in concern. Production was riddled with unnecessary pollution and emissions from large-scale manufacturing as well as shipping. Meanwhile the usage phase presented issues with water contamination and what users had to do with the product at its end-of-life.

harmful chemicals. Because the substance is all natural, when it inevitably enters the water stream as users wash it off their bodies, there is less contamination.

From the product to the packaging, the Eureka cream overhauls NIVEA’S traditional way of operating. The product sources natural ingredients from local farmers which not only eliminates the water contamination and other impacts caused by commercial farming but also rids the substance itself of

By utilizing plastic sourced from the ocean, the Eureka product helps life below water. Plastic waste in the ocean has wide ranging negative effects on sea life with 267 species reportedly harmed by plastic. Partnering with the Clean Water Action organization brings awareness to both ocean issues and other water-related problems. One of CWA’s primary goals is

Finally sourcing the packaging material from ocean plastic allows both more sustainable production and consumption for a variety of reasons. The production phase entails collecting plastic from the oceans - cleaning the body of water and reducing the harmful side effects of trash in the ocean including the detrimental effects it has on sea life. When finished with the cream, users can either reuse the container or send it back to be reincorporated into the production cycle, exhibiting participation in the circular economy.

to keep harmful toxins out of our water and out of production processes, which aligns with what the Eureka brand aims to do as well. Additionally, the container’s resemblance to a water ripple is meant to compel customers’ emotions. Seeing the shape of the container will ideally remind users of our most vital resource and hopefully prime them for the water-related messages found elsewhere on the package. 71


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