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Table of Contents
Company Background. 2
Macro-environmental Analysis PESTL.. 2
Political Factors. 2
Economic Factors. 3
Social Factors. 3
Technological Factors. 3
Environmental Factors. 4
Legal Factors. 4
Micro-environmental Analysis Porters Five Forces. 4
SWOT Analysis. 5
Strengths. 5
Weaknesses. 5
Opportunities. 5
Threats. 5
Segmentation Strategies. 6
Market Targeting. 6
Strategic Positioning. 7
Company Current Marketing Strategy. 7
Product 7
Price. 7
Place. 7
Promotion. 8
Proposed Marketing Mix the 7ps. 8
Price. 8
Product 8
Promotion. 9
Place. 9
People. 9
Process. 10
Physical Evidence. 10
Effectiveness of the Current CRM of the Body Shop. 10
Current CRM Strategy. 10
Ineffectiveness of Current CRM 12
New CRM Objectives. 12
How the objectives will be achieved. 13
Supporting the New CRM Strategy Using the 4Ps of Marketing Mix. 13
The Body Shop Marketing Plan. 14
Current Market, Customer, and Industry Trend. 14
New Market Objectives. 15
A Marketing Budget to Achieve the New Objectives. 16
Evaluating the Perfomance of New Marketing Objectives. 17
Conclusion. 17
Works Cited. 19
Company Background
Dame Anita founded the Body Shop Company, which is located in the United Kingdom, in
1976. Today, this company operates in 61 countries across the globe, with close to 2 500
outlets. The company mainly produces and sells a variety of beauty and cosmetic products,
which total to approximately 1 200. The Body Shop mainly targets males and females of
different age groups. In 2006, the ownership of Body Shop was transferred to LOreal, a
French cosmetics company. The mission of this company is to impart self-esteem in their
clients, protect the environment, be advocates against animal testing, while defending human
rights, and supporting the community trade (Mennen, 2011).
Economic Factors
Body Shop Company utilizes the franchising policy as one of its
strategies for growth. The decreasing interest today makes the company
stands a better growth opportunity as this works in its favour. Secondly,
the global trend exhibits a decline of financial institutions, even as
countries are advised to brace for tougher economic times ahead. The
Body Shop, being a player in the global economy, will also feel a pinch in
case this happens in the future. In addition, the current exchange rate
indicates a gradual decline of the pound. Therefore, continued weakening
of the pound may result in increased prices on imports, including
products and product ingredients (Assenmacher, 2012).
Social Factors
Most social factors work in favour of the company. First, there is
increased awareness of the companys fair trade, as well as the nature of
Technological Factors
Dangerous chemical and acidic components such as Kojic acid used in
beauty and cosmetics products may be harmful to peoples melanin count
in skin. This is according to the Scientific Committee on Consumer
Products. This makes preference for Body Shop products high, as they
are natural. In addition, technological advances such as internet boost
business operation and communication (Assenmacher, 2012).
Environmental Factors
The company ensures sustainable packaging of products and safely
disposes or recycles by-products. Additionally, the companys
responsibility in the deforestation issue raises concerns, since their
ingredients such as Brazil nut oil and palm oil are supplied from forests in
conserved places (Mennen, 2011).
Legal Factors
The EUs enactment of a chemical legislation in 2008, requiring all
imported chemicals in Europe to measuring 1 tonne per year, undergo a
registration with the newly set up body of European Chemical Agency
(ECHA). Additionally, from March 2009, animal tested products were
banned. This affects Body Shop differently (Assenmacher, 2012).
SWOT Analysis
Strengths
Niche positioning by Body Shop makes its products unique in the market,
and this helps differentiate them from those of competitors. The
company is also known for its ethical stand of against animal testing, as it
aims at providing natural products to its customers. In addition, the
diversified geographical presence is advantageous. This company has 61
branches across the globe. This is an opportunity for growth, even as
market risks are minimized. Finally, by practising fair trade with the poor
world communities, Body Shop incurs low costs of ingredients, while
maintaining an ethical image to the public (Assenmacher, 2012).
Weaknesses
There has been a previously considerable decrease in Body Shops
profits. Between 2006 and 2008, profits dropped from 9.4 percent to 8.5
percent. In addition, there is weak performance, as the UK market has in
the past registered a weak performance as compared to other markets.
This leads to a decrease in market shares (Assenmacher, 2012).
Opportunities
The testing of different cosmetic products in 2007 established that they
Threats
Intense competition from other big and small cosmetics company has
forced Body Shop to reduce product prices for favourable competition in
the market. Clashing Ideology is another threat. Since LOreal acquired
Body Shop, its animal testing on products conflicts with Body Shops
stand against animal testing. This becomes confusing to clients. Finally,
the global unpredictability of the economy forces people to cut on
spending and save money for future use. This reduces companies market
share (Assenmacher, 2012).
Segmentation Strategies
Body Shop bases its market segmentation on two main aspects, which
include behaviour and demographics. Basing on demographic
segmentation, market segmentation involves age. This therefore falls into
two main categories of customers, including adults and young people.
In behaviouristic segmentation, customers are categorized into two
groups, including advanced users and beginners. Therefore, market
segmentation results in four categories of customers, including young
advanced users, middle-aged advanced users, young beginners, and
middle-aged beginners (Pahlavanzadeh, 2011).
Market Targeting
Body Shop targets more females aged16-55. These should be well
educated and with good computer skills. The kind of men Body Shop
targets are those aged 30-35, with a stable income. Men in the
cosmopolitan are also targeted due to their increased awareness of their
physical appearance. Nonetheless, the targeted customers are those that
are willing to spend more on beauty products, given Body Shops
considerably high product prices. These target customers are also those
Strategic Positioning
The Body Shop uses various strategies to appeal to customers. Its stand
against animal testing and support for fair community trade shows
passion. The mission of the company to activate self-esteem, protect
human rights and the environment bring out the company as responsible
and natural, an appealing image to customers (Assenmacher, 2012).
Product
Products include shaving, hair and body, face care, accessories, and Eau
de Toilettes. The company conducts annual research on relationship
between the product and market demand. These products come in
packages, which are considerably big. Generally, customers are not given
an opportunity to choose from a wider range of products, as these are not
diversified.
Price
The prices of Body Shop products are considerably high because of the
great differentiation and nature of branding, which is ethical and
environmental friendly. The big packages of products contribute to their
high cost. This is why the target market include the financially stable.
Place
The Body Shop mainly sells its products in its different physical outlets,
at the Body Shop Home Scheme, and over the internet. However, this
company has invested more in its virtual presence. Its online distribution
channels help its clients to shop for products more easily.
Promotion
Promotion of mens products is through monthly advertisements in
different periodicals that target men. In addition, products for men are
advertised for the whole year on Google Ads and other promotional sites
with high male viewing. Womens products are advertised through flyers
and other channels with high female audience throughout the year.
Additionally, promotion is through gifts and presents to specific females
four times a year (Assenmacher, 2012).
Price
For a better marketing mix for Body Shop, the prices of its products
should be considerate of the present economic climate. Therefore, pricing
should not be based on their branding, but be determined in relation to
their competitors prices. High prices make customers shy away from
buying products, considering the present harsh economy. Therefore,
lower prices, with competitors in mind, will attract more customers.
Product
Promotion
Body Shop should improve its online channels of distribution by
venturing in the social media channels such as Face book, Twitter, and
You Tube for advertisement purposes. The Body Shop should launch a
page for each of these sites and invest more in social media
advertisements. Promotions on the social media will increase product
visibility as more people today spend a considerable time on Facebook,
Twitter, and YouTube. Additionaly, teaming up with media channels such
as MTV will help in the promotion of the existing products.
Place
Exploring newer markets is essential for Body Shop to achieve its
business objectives. Investment in new markets will reduce the
companys operational costs, as the company will use the resources of the
host country. In addition, the company should make its in-store
experience for customers better. For instance, pictures in the stores should
be replaced with new ones, billboards and posters showing the months
theme should be introduced in the stores (Mennen, 2011). Enhancing the
in-store experience for customers will make shopping to be an exciting
procedure and not boring (Assenmacher, 2012). This new marketing mix
could be effective, as the current one has not managed to achieve the
sales and marketing targets of this company
People
First, the consultants and shop assistants working for the Body Shop are
influential in the marketing process of the company (Pahlavanzadeh,
2011). These should therefore, be given adequate training and enhanced
product information to deal with customers better.
Process
On the process, body Shop must ensure a reliable online presence. This is
because most men prefer to shop for beauty products online and not
physically. Currently, Body Shop does not have a big brand awareness
due to its restrictive modes of public awareness creation. Its online
distribution channels are limited. Therefore, to solve low brand
awareness, further investment in its online presence is imperative.
Physical Evidence
Physical evidence for the company should include making the in-stores
favourable to men by including more male staff. This serves to suit the
needs of both genders. Additionally, the online-shopping experience
should be made easier and more exciting for customers.
Effective customer relationship management will retain customers and
develop their relationships. Therefore, the recommended marketing mix
ensures the integration of and balance between people, technology, and
process. The inclusiveness of these will result in profitability and
customer loyalty for the company (Pahlavanzadeh, 2011).
The time sensitive offers by The Body Shop creates a notion that the
company is manipulating its customers. Another objective should be
improving on the time scale for the offers since the current period for the
offers is at times too short. Moreover, the discounts are at times too high,
and should be decreased to avoid the customers doubt the quality of the
products. Another objective should focus on changing the communication
strategies to increase the sales. Although The Body Shop has been using
emails to inform their customers of their existing products, the
descriptions given are too shallow. Moreover, their website lacks in-depth
descriptions of products. Most cosmetic companies use their websites to
teach different aspects on how the body functions, which has attracted
customers. The several offer messages sent to the customers through the
phones create a sense of desperation on the side of the company.
should be ensuring that the products manufacture reflect the needs of the
consumers. The other objective should focus on the price. If product
manufactured is of good quality, it will be easy for the company to fix
competitive prices. The company should consider fixing the price
depending on location of the store. Moreover, the company should
identify the amount of money the target group is willing to pay and
beware of the competitors price (Lindgreen, 2004; Berndt & Brink,
2204). The overuse of promotions has created a negative notion about the
quality of The Body Shops product. Therefore, the company should
consider marketing strategies that attract the target group, which are the
Youths. The promotion should thus include activities such as sponsoring
beauty shows and sporting activities. Social Network is another
marketing strategy that should be used to attract young people. Moreover,
their websites should be more detailed to orient the customers to different
products. Additionally, advertisements using bill boards television and
magazines should be enhances (Lau & Seetner, 2011).
In the franchised shops, the company should enhance selective
distribution. Different people from different regions prefer varying
products. Therefore, the company should identify the varying needs of the
customers in different localities. Moreover, the company should carry out
a study to find out the distribution of their customers and locate their
distributors appropriately (Berndt & Brink, 2204). Hence, the company
requires improving on the strategies of making offers to avoid it
appearing too desperate. The offers should be reasonable and should last
for longer periods to ensure the customers enjoy them. Currently, the
offers are short lived and most customers complain that such offers are
unreasonable (Lau & Seetner, 2011).
Conclusion
Works Cited
Assenmacher, K 2012, The Body shop An Analysis of the Company s
Actions towards Sustainability, GRIN Verlag, London.
Berndit, A & Brink, A 2004, Customer Relationship Management and
Customer Service, Juta and Company Ltd, New Jersey.
Berndt, A. & Brink, A 2004, Customer Relationship Management and
Customer Service, Juta and Company, London.
Cathy, L. H. & Caryn, L. B. 1999, Marketing strategies and the search for
virtue: A case analysis of the body shop, international, Journal of
Business Ethics, 20(3), 249-263. Retrieved from
http://search.proquest.com/docview/198112887?accountid=45049
Epstein, M. & Yuthas, K 2009, Evaluating the Effectiveness of Internet
Marketing Initiatives, Management Accounting Guideline, pp. 1-40.
Kossowski, A 2007, Strategic Management: Porters Model of Generic
Competitive Strategies Theory and Analysis, GRIN Verlag, London.
Lau, C. & Seetner, E 2011, The Body Shop, Available at:
http://www.slideshare.net/ChesterLau/the-body-shop-marketingcampaign
[Accessed 19 Dec 2012].
Lindgreen, A 2004, The design, implementation and monitoring of a
CRM programme: A case study, Marketing Intelligence &
Planning, 22(2), 160-186. Available at
http://search.proquest.com/docview/213130431?accountid=45049
Marsh, H. 2001, Has the Body Shop lost its direction for good?
Haymarket Business Publications Ltd, London, United Kingdom,
London.