THE MARKET ACHlEVEMENTS THE HlSTORY

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T he M a r k e t

A chie v e me n t s

Barnängen is one of Sweden’s most popular brands and a Swedish icon within the body and hair care market. The market for body and hair care varies constantly. Today we find an infinite variety of products while consumers become increasingly aware and more demanding. Barnängen strives to make quality products at a good price, with a formula containing natural ingredients to suit the Nordic market. Local brands are also attractive to today’s consumers, which gives Barnängen a lead over their international competitors. The security and feeling Barnängen conveys, with an assortment of products suitable for the whole family, has contributed to strong increases in all segments. Barnängen is market leader in the segment solid soap, and the third strongest brand in the shampoo market. Within the segments hair care and shower gel, Barnängen increased by as much as 17 and 16 percent respectively in 2009, and Barnängen strives to continue increasing their market shares.

Barnängen has always been the brand with strong trust among the Swedish people. As much as 93 percent is aware of the brand, and it has been like that since the 1990s. The brand has a long history and as early as 1873 Barnängen became Royal Warrant, an honor that means a lot to the company. The title has become a hallmark of Swedish quality. In recent years, Barnängen has continued to strengthen its position as one of the most established brands in Sweden. From having been a traditional brand aimed at children, Barnängen is nowadays a brand for the whole family, where everyone can find their favorite product. Since Barnängen is aimed at the whole family, the brand has a large target group. Today Barnängen’s consumers are environmentally aware, committed, down to earth people in the middle of life. The new product launches have been enormously successful, and have contributed to that more consumers have discovered the brand, which has boosted sales. The body and hair care line Yogurt Aloe Vera, as well as the shampoo and conditioner Pärlglans, launched in the mid 2000s, are today top performers. Another popular product is Barnängen’s latest addition within shower gel and liquid soap, Creme & Olja, which was launched in 2009. The company behind the brand Barnängen is Henkel Norden AB. Henkel has market leading brands and develops solutions making people’s lives easier, better and more beautiful. Henkel operates in three strategic business areas - household products, cosmetics and hygiene products, as well as adhesives, sealants and surface treatments. During fiscal year 2008, the Henkel Group achieved a

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turnover of 14.1 billion euros. Henkel exists in some 125 countries and has 55 000 employees worldwide. Henkel has brands such as Schwarzkopf, Barnängen, Loctite and Plastic Padding. The company has 540 employees in the four Nordic countries and generated sales of 194 million euros in 2008.

T he His t ory Barnängen was founded in 1868 in Sweden by merchant Johan Wilhelm Holmström. During the plant’s first years, all production was carried out by hand. The first products manufactured at the company were ink and Eau de Cologne in luxury packaging. Barnängen started to produce soap in 1873 and on January 2, 1885, Barnängen was registered as a trademark. At that time it was both a heavy and time-consuming work to manufacture soap. In the 1930s, Barnängen introduced the children line, which already at that time was developed in cooperation with pediatricians and was specially adapted for small children’s sensitive skin. In the 1950s - a new modern soap processing plant was launched, De Laval Centerpure procence, which not only reduced production time but also improved the quality and consistency of the soap. Barnängen continued its expansion in the 50 - and 60s together with Shang Tung School, which further developed the store personnel and retailers of beauty in order to become better sales people. In 1983, Barnängen’s new factory was inaugurated on Ekerö by the Royal Couple. Barnängen also launched in the 1980s the Creme shampoo and conditioner line that still exists. In 1992, Barnängen was acquired by Henkel, who still owns the brand. In the

Product development, design changes and new communication in the 2000s made Barnängen increased even more in popularity. The stunning development that has followed Barnängen is the result of the work to consistently follow their strategic concept to reach out to all segments and target groups with their products. Quality, courage, and innovation has paid off. The goal is to continue to strive for new innovations in product development and comply with consumers’ needs by always be timely.

M a r k e t ing

­­ mid-2000s, the new Kids line was launched with products for slightly older children, and the year after, the first shower gel with yogurt protein and aloe vera came. Barnängen is the only brand using yogurt protein, and it has become a very popular product. Since then, the product portfolio has continued to expand with innovative, modern and mild products within body and hair care as well as deodorants which is Barnängen’s latest product addition.

T he P roduc t In Barnängen’s assortment you find body and hair care products for everyone, both children and adults. All parts of the assortment provide a pleasant, relaxed, clean feeling that you want to relive every day. A sense of caring, naturalness and genuineness, that makes the consumer associate to Swedish summer, close to the Scandinavian nature. The products of Barnängen places them in a unique position, based on man’s original needs for natural and caring products. The brand still retains classic product line for children in blue and white as one always associates with Barnängen, but the selection has become even more attractive through innovative products for all skin and hair types, in new packaging design with a more colorful approach.

R e ce n t De v e l opme n t s Despite the fact that today there are more players than ever in the body and hair care market, Barnängen is still one of Sweden’s strongest brands. By combining timelessness with modernism Barnängen has managed to stay on top and positioned itself at the level of major international brands.

Barnängen’s marketing starts from the brands identity and expresses Barnängen’s personality and position. Barnängen’s pay-off »clean feeling«, expresses shortly, the two characteristics of Barnängen which forms the basis of all communication. Each new release within Barnängen is accompanied by vigorous marketing in the form of television advertising with a taste of summer, print advertising, trade press and creative promotional solutions. Always with the focus of being close to the consumer. Another important part is the annual retail campaigns. Barnängen launches two major campaigns per year, during both summer and winter, with activities for the whole family. The Web is now an increasingly important tool for bringing out one’s message. With that in mind Barnängen launched a new website in late 2009, adapted to the brand’s new profile. The website has undergone a radical transformation, and contains all information about Barnängen and its products with a lot of interaction for users.

Br a nd Va l ue s As early as in the 1800s, when the Barnängen story began, the company took a great social responsibility, both for the employees and the environment. Working conditions were favorable, and ahead of its time. Even today, this is reflected in Barnängen’s basic values, where one works successfully for social responsibility. Barnängen has chosen to support two organizations that goes hand in hand with it’s own values. Since the summer of 2009, Barnängen has a collaboration with the Swedish Life Saving Society (SLS), where the goal is to promote water safety among children and adolescents. Barnängen also helps to sponsor the project, Look Good, Feel Better, which provides women treated for cancer, free courses about skin care and makeup. Barnängen is associated with safety and freshness throughout live. The brand is associated with Barnängen’s value words timeless, genuine, caring, natural, pure and committed. Barnängen’s consumers use products with security and genuineness both for themselves and for their children.

Things you didn't know about BARNÄNGEN • The brand was named after the area Barnängen in the district Södermalm in Stockholm, when the first factory was located on Stora Bondegatan 39. • Since 1873, Barnängen is a supplier to the Royal Court. The title has become a hallmark of Swedish quality and the appointment is based on the fact that the company delivers products to the Royal House. • As much as 93 percent of the Swedish population is aware of Barnängen, and it has been so since the 1990s. • Barnängen has since the summer of 2009 a collaboration with the Swedish Life Saving Society (SLS) where the goal is to promote water safety among children and adolescents.

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