1. Describe the main characteristics of its marketing Environment. Describe the
elements that may compose its microenvironment and macroenvironment.
The Body Shop company was created by people who believed in environmental
campaigns and human rights. It is a British cosmetics skin care and perfume company. The
self-employment in the company is increasing nowadays (Franchise of the stores also
increasing). The Body Shop is the first to take a stand against animal testing in the
cosmetic industry. It has 60+ markets worldwide and about 3 000 stores in 66
countries. The owner of the company is Brazilian cosmetics company - Natura. Key
partners are suppliers (farmers and suppliers), vendors, distributors, Community Trade
Program. It is mostly targeted towards young women and its main competitors are
Estee lauder, Luxasia, Lush, Welenda, L’Occitane or Yves Rocher.
Macroenvironment: If we look at the political environment we can recognize that the
company facing with political issues which include potential certification law for natural and
organic products (also increase taxes, changes in interest rate). The company face unstable
economic environment situation. A real influence has a customer behaviour and attitudes
towards organic and vegan cosmetics (social environment). The company develops new
packaging solutions and works actively through online sales (I think we can name it
technological environment).
2. Provide information on each kind of competitive forces that may drive its
industry.
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Potential Entrants are quite low because it is mature market and are high entry barriers. It
is risky to create new products in the area of natural beauty.
Power of Buyers: these beauty stores have products at affordable prices.
Power of Suppliers is relatively moderate because company creates more of partnership
relationship with suppliers to meet customer satisfaction. In view of the competition the
brand must have good reputation.
Rivalry is on a medium level because the skincare industry is expected to grow annually
by 2.7% (CAGR 2019-2023).
The risk of substitutes is quite high – the products can be substituted by natural homemade products with easy-available ingredients for everybody. It can affect the Body Shop
company.(We can create products which can meet the same needs)
3. Explain which is its competitive advantage. Please justify it.
The competitive advantage of the company is built around 5 values: active self-esteem,
support fair trade, protecting the planet defending human rights, and being against animal
testing. They focuses on natural resources and promote health and safety of the planet
more than glamour what in my point of view is very unique strategy which attract not only
customers but also employees. The company focuses on aspects which are really important
nowadays what results in better communication with the clients. They also know how to
create a brand image – it sells ethical message behind the branding of the product – it helps
with differentiation of the company.
4. Describe 3 competitors it may have. List 3 advantages and 3 advantages
compared to its competitors.
Taking into consideration the first -Estee lauder Canada we can see that The Body Shop
has greater brand recognition, offers more discounts and promotions. It also offers student
discount policies what is not offered by Estee lauder company. Surprisingly it has no
significant cons.(We can just notice that salary in The Body Shop this year are a bit smaller
but it is not significant difference).
Another example is Yves Rocher company which is definitely cheaper than The Body
Shop but due to the clients’ comments is not so good and accurate for skin care. The offer
of the Body shop is also more effective ( due to the opinions). What is interesting- the most
positive comments are about Lush company – customers say that both The Body Shop and
Yves Rocher use a combination of natural and artificially synthesized ingredients when
Lush’s products are amazing and are made with minimal artificial ingredients. However
they are much more expensive than products of The Body Shop company.
Taking everything into account we can say that the quality of the product pf The
Body Shop is quite accurate for the price and the brand is great created – the market
strategy helps the company to attract customers. The company is still small but (due to
the statistics) we can recognize that it is stronger and become better and better during
years – even after the most visible time of crisis of Covid19. (One of the best position
from years in ranking).
https://www.rankingthebrands.com/Brand-detail.aspx?brandID=2531
5. List which kind of source of marketing information this company may use.
Explain the importance of each of these sources.
Usually we can recognize three the most common source of marketing information – internal
data, competitive intelligence and marketing research.
Due to the internal data company can understand who is their main customer – what are their
references, age and genders in order to create the most accurate and fitting brand. Using this
information, the company is able to apply sales and marketing techniques to increase sales,
profitability, and customer retention on behalf of its clients. So it can constantly create
cosmetics for the main group of customers and makes it interesting.
Competitive intelligence – is a strategy which helps better understand their competitors
and competitive market dynamics. The method is really important because company
tries to answer some crucial questions to create the best possible market strategy for
the future(for example : What are competitors saying about themselves? What do
competitors charge for their products? What do competitors charge for their products?)
The Body Shop constantly develops itself due to such marketing information.
The use of such methods as advertising throughout a lot of discounts (for example 2+1 winter
discounts) can be interesting for people because it can occur more cost-effective for them. It
is a part of marketing research which is used to improve the effectiveness and reach of
marketing activities such as market segmentation, messaging and communications,
advertising and media testing, events and sponsorships, packaging and display
testing. This source is definitely one of the most significant because due to it the
company can understand for example how environmental factors affect customers
behaviour and the customers’ views about certain products and their attitude to it. It
helps with creating the best natural products and messages for the main clients of the
company.
6.Explain which kind of market entry strategies this companies presents. For instance:
Internet, Exporter and Distributor, Licensing. Franchising, Strategic Alliances, etc.
For sure the company focuses mostly on its distribution channels through the
internet (websites and campaigns).It also use a strategy of franchising (a business
marketing strategy to cover maximum market share) specially in such countries like
Australia, South Africa, Japan and Malaysia. Franchising offers company a way to
earn a profit while taking an indirect management approach. It also presents the
strategy of acquisition( In Brazil).
7.Describe who are the company's consumers. Explain their main characteristics.
Company focuses mostly on young women between 20-55 years old. The segment
of people familiar with internet and online shopping(due to their strategy and channel
of distribution). The customer segments: tweens, elders, parents, youth.
8. Explain why this company can be (or not) considered a responsible and ethical
business. Please, provide evidence.
It can be consider as responsible and ethical business- the company fights against
animal testing and is a champion of cruelty-free ingredients. It has a real impact on
environment- encourages the customers to return the containers of products after
use, organizes campaigns to raise conscious of people about responsibility being a
citizen of earth to protect environment. Supporting community trade – for example
purchase of cocoa beans form Kuapa Kokoo Company in Ghana, which is a fair trade
cooperative with over 30,000 small-scale farmers
9. Describe the company’s effort and strategy to reach its consumer. Which
channels does it make use of?
The Body Shop’s company current marketing focuses on creating strong brand image
by which it shows that it takes initiatives for a cause – people are more likely to buy products
which are strongly connected with helping the environmental issue seriously . The company
creates also strong advertising strategies to position itself as a green company and invests
in campaigns like “Enrich and Not Exploit” “Forever against Animal Testing” in which they
works with number of influencers on social media ( promotion strategy); The company tries
to focus on the both men and women. It uses such channels as Instagram, Pinterest and
Snapchat what is working well due to the fact that the band’s main target is the women
between the ages 20-55 years (such channels are definitely more effective than TV).The
company is also seemed internationally by using multilevel marketing channel called “The
Body Shoo at home” successfully implemented in such countries like Australia, France,
South Korea, etc.
Other channel of distribution: BodyShop.com, Hemp Body Care online, Body shop retail
Stores, Card
10. What could be the understanding of value from this company's customers?
Please explain it.
I am under the impression that the values which are created by the company helps
to develop the emotional connection between its customers. Customers are convinced
more about sustainable development of the company and can easily find their own
main values in the products. They create the way of thinking that they are a part of
something more what can be really beneficial for the whole world and increase the
quality of living on our planet. The brand tries also to create equality due to what
customer can feel more special and unrepeatable. They choosing the company
because it is natural and the values shows them that it is worth tp buy the products of
the company.
11. Which is this company's value proposition? Justify it.
The company focuses on empowering women and girls, promotes women’s selfesteem and celebrate female leadership- it trying to make their product a way of
expression of self-love. Ensure customers that the ingredients are high-quality and that
they invest in social and environmental projects. They are also serious about
sustainability staying vegetarian and vegan friendly. Personally speaking this values are
really accurate for the time we live - he company creates unique blend of ethical
beauty with sense of humor and serious meaningful purposes .We should also notice
that the body shop creates variety of +1000 products and it delivery is quite quickly
what is a big advantage in my point of view.
12. Which are the strategies this business makes use to create customer loyalty?
Please, explain it.
The company shows their five core values of the brand which are strong and which
are important for customers. The Body Shop allows customer to feel he or she belongs
to the brand community by using their products – they have methods to show their
customers that they are part of it ( through the map of organic ingredients information
about different ethics partnership and programmes on the website) It not only shows
connection but also gives the opportunity for customers to interact with each other
what creates the real community. The part of the strategy is also adding other
information to the websites and communication channels such as beauty advices or
advices about how to properly use the product which informs consumer and creates
the feeling of stronger connection to the brand. We should also remember about
loyalty card and many accounts for long-term customers (what encourages them to
stay with the company longer)– which allows customers to unique offers .To sum upthe company creates really wide range of advantages and loyalty strategy is quite
strong.
Sources:
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https://www.oboolo.com/marketing/fashion-marketing/case-study/porter-five-forces-bodyshop-628936.html
https://www.marketing91.com/marketing-strategy-of-the-body-shop/
https://www.mbaknol.com/business-ethics/case-study-corporate-social-responsibility-atthe-body-shop/
https://blogs.ubc.ca/yuxi/2013/10/12/re-whats-the-core-market-value-of-the-body-shop/
https://naturalcosmeticslovers.wordpress.com/customers-insights/the-body-shop/
https://www.thebodyshop.com/en-us/
https://join.tabfranchise.com/franchise-opportunitiescountry/?gclid=Cj0KCQiAwJWdBhCYARIsAJc4idDIQxE61_9yWTfNmNroNPA7_foHTdHvDbD43
9WwEAI25OQMaZXL764aAv91EALw_wcB
https://www.fakespot.com/company/the-body-shop
https://www.indeed.com/career-advice/career-development/market-entry-strategies
https://www.google.com/search?q=marketing+Environment&sxsrf=ALiCzsZMnLSTXjy9a3LDXv8eBPX9NRHjQ:1671747398106&source=lnms&tbm=isch&sa=X&ved=2ahUKEwi0xc
WuoI78AhW6Q_EDHRPBCuUQ_AUoAnoECAEQBA&biw=1536&bih=746&dpr=1.25#imgrc=T5I
nuaFYyGIAEM
https://blog.hubspot.com/service/customer-acquisition
https://www.makeuptalk.com/threads/yves-rocher-vs-the-body-shop.132927/
https://www.momentive.ai/en/insights/?program=7013A000000ih75QAA&utm_bu=admv&utm_campaign=71700000084481306&utm_adgroup=58700007148061979&utm_conte
nt=43700064281864503&utm_medium=cpc&utm_source=adwords&utm_term=p64281864
503&utm_kxconfid=s4bvpi0ju&gclid=Cj0KCQiAwJWdBhCYARIsAJc4idDIvtKogtI9vuuOCCCQIN
XGrdiHszDTfnPLFbqyzcxtFPbAiZpnRnQaAs0mEALw_wcB&gclsrc=aw.ds
Oliwia Chołodowska,
First year of International Business