Individual Reflective Note

Marketing Transition to Sustainability

Submission Details:
Name: Sahil Hak
Student ID: e203985
Part 1
Product Details
The product chosen is NIVEA Crème which is a general-purpose moisturizer and falls under the cosmetic category. NIVEA is a
brand of the German cosmetic maker Beiersdorf. An image of the brand can be seen in the below figure.

Nivea Crème Moisturizer (Google Images)

Part 2
Answers to Questions

Q1) Do you know how it was made?

The product is made chemically by the following process (1):

Stearic acid derived from palm tree oil is mixed with refined lanolin blended with isopropyl myristate which make up the oil
soluble phase of the moisturizer. Water soluble phase is made up by glycerin (derived from corn) which is heated. The oil soluble
phase is added at the bottom of the mixture in a tank and the temperature is lowered which results in a creamy mixture . This is
pumped into the jars made up of plastic or tin and dispatched to end consumers.

Q2) Do you know where the materials originated and which if any were toxic?

The ingredients used in creating the product are outlined in the matrix below (2 (3)(4):

Ingredient Name Sourcing Toxic/Non- Remarks Impact

Type Toxic
Aqua N NT Water NA
Paraffinum Liquidum C T Chemically created (Mineral oil) Carcinogen

Cera Microcristallina C T Chemically created Endocrinal

impact/Carinogen
Glycerin N NT Natural compound present in Mineral NA
oils

Lanolin Alcohol N T Organic compound derived from fat of Immunotoxicity

(Eucerit®) wool shearings

Paraffin C T Cheap byproduct of refinining crude oil Carcinogen

Panthenol N NT Naturally derived ( Panthotenic Acid) NA

Magnesium Sulfate N NT Natural derived (Springs) NA

Decyl Oleate N NT Derived from vegetable oils NA
Octyldodecanol C NT Naturally derived (Coconut) NA
Aluminum Stearates C T Chemically created Non reproductive system
toxicity
Citric Acid N NT Fruit derived (Citrus fruits) NA
Magnesium Stearate C NT Chemically created NA
Sodium Anisate C NT Naturally derived ( Preservative, NA
derived from Anise and Fennel)

Limonene N T Fruit derived (Citrus fruits) Immunotoxicity

 Ingredient Name Sourcing Type Toxic/Non- Remarks Impact
Toxic
Hydroxycitronella N T Fruit derived (Citrus fruits) Immunotoxicity
l
Linalool N T Plant Derived (Aromatic plants) Immunotoxicity
Citronellol N T Plant Derived (Roses) Immunotoxicity
Benzyl Benzoate N T Plant derived (Polyalthia) Immunotoxicity/Endocrinal
impact
Cinnamyl Alcohol C T Naturally derived (Cinnamon Immunotoxicity
leaves)

Perfume C T Chemically created Carcinogen/Immunotoxocity

(C: Chemical, N: Natural, T: Toxic, NT: Non Toxic)

Q3) Do you know what waste was created?

The various wastes created are outlined below (5)(6):
1. Production Waste
Includes plastic packaging, foil, paper and cardboard wastes. However, NIVEA has launched an ambitious zero waste to landfill
program(7)
2. Inventory Wastes
Despite having supply chain processes intact, some of the goods at the warehouses do not sell and suffer from shelf life issues.
These are treated as scrap and form a part of the Inventory that cannot be sold.
3. Packaging Wastes
Nivea’s tin can was made of aluminium and earlier large aluminium sheets were procured which led to metal wastage. However,
they have changed the procurement policy to purchasing pre-cut aluminium parts which have led to waste reduction of 14
tons/year.

Q4) What will become of it when you are through with it?

Once the contents i.e. the moisturizing cream is finished, the tin in which it comes is a waste that is of no use and is thrown
away. There are no applications/scenarios in which the tin can be reused nor the company incentivizes recycling like the
beverage drinking companies such as Coca-Cola do in which a (deposit amounting to 0.25 euros) (8) is paid by the customer while
purchasing and returned to the customer when he recycles the bottle

Part 3
Answers to Questions

Q1) How might the product be made more sustainable ?

The answer to this depends on the type of market NIVEA is operating in. Primarily, two types of markets are addressed here

1. Developed Markets (Europe, USA)

Here we can use natural & less toxic ingredients which would add to the cost of the product from a sourcing perspective
using a product imitation strategy by taking Body shop as a reference. In these markets willingness to pay is not low so we
can use this approach here. We can use a platform marketing strategy to raise awareness regarding the benefits of the
product and the environmental impact using carbon footprint as a loyalty scheme and giving discounts basis a tiered
category of users whose consumption habits are inline with environmental friendy actions.
(The packaging initiatives would be the same as in Emerging packets)

2. Emerging Markets (India)

Here the focus is more on packaging and not on ingredients as this is a market marked by lower willingness to pay. The
proposition is a two pronged approach:
 Implement an environmental deposit equivalent to 10% of the product and treat it as a deposit made by the
customer for using the plastic/aluminium tin case which is to be returned once the customer redeposits the case
thereby inculcating a recycling habit in the customers
  Expand refillable stations(9) for NIVEA Crème in which customers can refill the moisturizer by using their pre-owned
cans and charge them lesser than the original product as a reward for reusing

Q2) Would add to its value for you?

Primarily as an Indian consumer, the value addition through is through saving on prices of NIVEA products. So, I would be
inclined to reuse the tin/plastic cans and effect the same change to my parents. This is a small but important step in changing
the habits of the consumers since I do not own any high end cosmetic.

Q3) Whom else would it benefit?

The key stakeholders whom these practices would benefit are outlined below:
1. NIVEA
 Cost savings through reduced investment in packaging production facilities as people are going to purchase the tin
can once and reuse it
 A brand image reinforced through sense of mission marketing based approach in the minds of the consumers

2. Family & Friends

 Influencing and changing their lifestyles by adopting environmentally friendly habits
3. Superstores
 A lot of superstores also stock and sell NIVEA products such as EDEKA, REWE, NETTO and ALDI in Germany where
refilling stations and platform strategy can make a reference marketing strategy thereby increasing their brand
image and attracting users in their stores
4. Supply chain stakeholders
 While NIVEA currently uses sustainable palm oil (RSPO Certified) (10)and sustainable land use practices(11), it is also
good to look after the workers who get affected by chemical processes involved in manufacturing the product
which would get reduced by using natural products

Part 4

Carbon Footprint (2.61 Tonnes of Carbon dioxide)

Slavery Footprint (18)

Water Footprint
Ecological Footprint/Earth Overshoot Day (5.8 Earths)

References

(1). Science Channel, (2020 November 23), How it’s Made: Skin Cream [Video], Retrieved from
https://www.youtube.com/watch?v=CjL_dQ5HAAg
(2). EWG, (2021 November 15), NIVEA Crème [Website] Retrieved from https://www.ewg.org/skindeep/products/927363-
Nivea_Creme/
(3). Pat T., (2021 November 16), Behind the Label: NIVEA Crème [Website], Retrieved from
https://theecologist.org/2005/jun/01/behind-label-nivea-moisturising-lotion
(4). INcidecoder, (2021 November 16), NIVEA Crème [Blog], Retrieved from https://incidecoder.com/products/nivea-creme
(5). Beiersdorf,( 2021 November 1), Waste [Website], Retrieved from
https://www.beiersdorf.com/sustainability/environment/fully-circular-resources/waste
(6). Beiersdorf, (2021 November 2), Waste reduction & Recycling [Website], Retrieved from
https://www.nivea.co.uk/about-us/sustainability-at-nivea/waste-reduction-and-recycling
(7). Beierfsdorf, (2021 November 2), Waste reduction & Recycling [Website],Retrieved from https://www.nivea.co.uk/about-
us/sustainability-at-nivea/waste-reduction-and-recycling
(8). Coca Cola Deutschland, (2021 November 3),Einweg, Mehrwerg, PFAND: Ein Uberblick,
Retrieved from https://www.coca-cola-deutschland.de/verantwortung/verpackungen/ausgetrunken-und-dann-fakten-zu-den-
coca-cola-getraenkeflaschen
(9). Designboom, (2021 November 2), NIVEA launches its first shower gel refill station to reduce plastic packaging waste
[Website],

Retrieved from https://www.designboom.com/design/nivea-launches-first-shower-gel-refill-station-08-13-2020/

(10). Beiersdorf, (2021 November 5),Sustainable palm (kernel oil) [Website], Retrieved from
https://www.beiersdorf.com/sustainability/environment/sustainable-land-use/palm-oil
(11). Beiersorf,( 2021 November 10), Sustainable Land Use [Website], Retrieved from
https://www.beiersdorf.com/sustainability/environment/sustainable-land-use