Innovation Reimagined:
BASF and Natura's Path to Sustainable Growth
The case involves the relationship between BASF and Natura&Co which faced several challenges due to the pandemic, supply chain issues, and Natura's acquisition of Avon. To address this, BASF sought to reconnect with Natura’s R&D team and understand their needs through the Triple Fit Canvas. This initiative aimed to foster collaboration, improve innovation scores, and ultimately drive sustainable growth for both companies.
The Situation
BASF was initially challenging due to the lack of intimacy and communication with Natura&Co, particularly regarding innovation processes. BASF struggled to maintain focus on innovation projects due to the pandemic and the integration of Avon into Natura. This resulted in Natura scoring BASF zero for innovation in their supplier evaluation. Additionally, there was a significant turnover in both BASF and Natura's R&D teams, leading to a lack of clarity about roles and responsibilities, and a failure to establish a collaborative relationship.
The Challenge
The challenge faced by BASF in its relationship with Natura&Co was the need to find a new way to listen to the customer and understand their pains and needs in a structured and collaborative manner. This was crucial due to the previous lack of focus on innovation and the strained relationship. BASF's processes were seen as cumbersome and not agile, which hindered effective collaboration and responsiveness to Natura's needs. There was a deficiency in sharing knowledge and insights between the two companies, which limited the potential for co-creation and innovation. The goal was to reconnect with Natura’s R&D team and create a focused agenda for unlocking growth.
Fabiane Martins (l) at the Value Creation Summit 2024
The Benefits
The financial benefit for Natura&Co from the collaboration with BASF includes the potential for €12 million in additional net sales over the coming years, as outlined in the collaborative strategic plan developed through the Triple Fit Canvas initiative. This plan focuses on innovation and sustainability, which are key pillars for Natura's growth in the cosmetics market. Additionally, the improved relationship with BASF has enhanced Natura's evaluation in the innovation category, moving from a score of zero to ten. Natura was able to identify additional sales potential in the range of a market size of more than $100 million, and project higher profits opportunities due to ongoing go-to-market support.
The Solution
The Triple Fit Canvas helped BASF by facilitating a deep and strategic dialogue with Natura’s R&D team. This approach allowed BASF to capture customer perceptions and engage with various decision-makers. Additionally, it enabled BASF to conduct a self-assessment of its interactions with Natura, identifying key areas for improvement. The feedback gathered through this process highlighted strategic pains and demands from Natura, which were essential for defining a collaborative strategic plan focused on innovation and sustainability.
Millions of additional Revenue
Millions of sales potential