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How can The Body Shop Compete in the U. S. Market

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    I. Statement of the Problem How can The Body Shop compete in the U. S. market and retain its influence in the cosmetics industry despite threats like fiercer competition, apparent weaker competitive advantage, and the inevitable change in leadership? II. Case Facts and Background The Body Shop has been a fast-growing company in the cosmetics industry. Anita Riddick, the founder and managing director of the company had the habit of going against the tide of the industry’s established practices.

    It did not advertise, avoided traditional distribution channels, spent as little as possible on packaging, and used product labels to describe ingredients rather than to make miraculous claims. From a single storefront in 1976, it had grown to 576 shops by 1991, trading in 38 countries and 18 languages. But in the early 1990s, some began wondering if the The Body Shop’s phenomenal run of success was fading. With its entry in to U. S. Market , observers wondered whether it cold maintain its phenomenal growth.

    They pointed to the fact that sales in the United Kingdom, which represented 67% of the company’s total, had grown by only 1%, after inflation and new store openings had been removed from the 1990 figures. Although the $12 billion U. S. cosmetics market clearly represented the company’s greatest growth opportunity, Gordon Roddick, Anita’s husband, was particularly nervous about entering what had been described as “graveyard for British retailers. ” It was Gordon’s view that while the United States offered the The Body Shop the greatest potential for growth, it also represented the greatest potential for disaster.

    In 1988, The Body Shop’s first branch in U. S. was opened in Morristown, New Jersey. Under the direction of a British expatriate, twelve company-owned shops were opened on the East Coast. Total investment exceeded ? 10 million. In mid-1990, the company began franchising and by year’s end, 37 shops had been opened. By 1990, U. S. sales were ? 5. 8 million, or 7% of total revenues. But the question was, “Were the company good enough? ” Due to the high cost of the initial infrastructure, however, the U.

    S. operations were still running at a loss. Whether these initial losses would continue or indeed, whether stores remained open, dependent on how the company dealt with a different set of challenges. First, environmental concern had been less of a pubic issue in the United States during the 1980s, and it was not certain that The Body Shop’s strong image and unfamiliar practices would appeal to them. Roddick learned how difficult it was to transfer her values even within her organization.

    It was hard to recruit staff who embraced Body Shop values and could not fit into what she called “our quirky, zany, organization. ” She was also amazed by how constrained business was in a country that epitomized the free enterprise system. The Food and Drug registrations, the various state and city regulations, and the lawyers horror stories all made Roddick nervous about her decision. Furthermore, some experts questioned whether The Body Shop’s resistance to advertising would limit growth in the communications-intensive U. S. arket. Finally, The Body Shop’s global success had not gone unnoticed in the cosmetics industry. Betting that the “green consumer” population would continue to grow, many leading firms were introducing “natural” lines, and revamping the look and the marketing pitch of their products. Some analysts felt that the company had outgrown its historical strategy, organization, and event its leadership. Could the company adequately defend itself against the wave of new competition without restoring to advertising? III. Objectives 1.

    Discuss and evaluate the current marketing and leadership strategies of The Body Shop. 2. Evaluate whether the company should venture into advertising as it enters the U. S. market. 3. Propose marketing strategies that will strengthen the company’s presence in the U. S. market and increase its market share. IV. Assumptions 1. The Body Shop has decided to expand operations in the U. S. market. Now, the company is finding ways in which it can ensure its success in this new arena. 2. The group is analyzing this case using data and information from 1990. . No changes or new strategies have been employed by The Body Shop as of the discussion of this case. V. Areas of Consideration A. Internal Analysis SWOT Analysis |Strengths |From a single storefront in 1976, The Body Shop had grown to 576 shops by 1991, trading in 38 countries and| | |18 languages. Worldwide retail sales from companies and licensees were estimated at $391 million. | | |The Body Shop was voted U. K. Company of the Year in 1985, and U. K. Retailer of the Year in 1989. | |Anita Roddick, the founder of the company, had een the Veuve Cliquot Businesswoman of the Year in 1985 and | | |Communicator of the Year in 1987. In 1988, she was awarded the prestigious Order of the British Empire by | | |Queen Elizabeth. | | |The Body Shop has a strong social message. It is a company that not only makes a profit from society but | | |also returns something to that society. | |Roddick had strove to create a unique environment in her stores, one of honesty, excitement, and fun. | | |The Body Shop experienced phenomenal growth through the 1980 expanding sales at 50% yearly. | | |In January 1986, when it obtained a full listing on the London Stock Exchange, the stock was selling at 820| | |pence and become known as “the shares that defy gravity”. By February 1991, the company’s market value | | |stood at ? 50 million ($591 million). | | |Franchising – the Company’s explosive international growth has driven by its franchising program and by | | |early 1991, there were 586 shops worldwide. | |Weaknesses |The Body Shop did not advertise, avoided traditional distribution channels, spent as little on packaging | | |and used product labels to describe ingredients rather to make miraculous claims. | | |Its products were based on all-natural ingredients.

    Noticeably lacking, for a cosmetics retail company, were any photographs of models with beautiful hair and | | |perfect skin. Threats |Competition in the cosmetics business is continually increasing and becoming fiercer. | | |Environmental concerns had been less of a public issue in the United States during the 1980s and it was not| | |certain that The Body Shop’s strong image and unfamiliar practices would appeal to them. | | |The diversity of the U. S. arket, in terms of consumer values and demand, and the vocal nature of | | |dissident groups may make it difficult for the company to find a solid platform on which to build business. | | |Various cosmetic business constraints in a country that epitomized the free enterprise system, particularly| | |in the U. S. | | |The Body Shop’s resistance to advertising would limit growth in the communications-intensive U. S. market. | | |Analysts predicted that this would be a difficult challenge without advertising. | |Leslie Wexner, founder of the hugely successful retailer, The Limited, had opened 42 Bath and Body Work | | |shops, which looked “astonishingly like Body Shops. ” | |Opportunities |The market in the United Kingdom had already been established and there are still a lot of potential | | |markets to explore especially in the United States where $12 billion of the U. S. cosmetics market clearly | | |represented the company’s greatest growth opportunity. | |Potential additional sales and increased market coverage and consumer awareness through the conduct of | | |advertising or marketing activities. | Porter’s Five Forces Model 1. Buyer Power The Buyers have relatively low bargaining power and minimal influence on the price since the products of the company does not involve basic needs and demand is not directly related to the price of the products. Also, players in this market can integrate their own distribution / retailing in their operations. This is one characteristic that lowers buyer’s bargaining power. . Supplier Power The bargaining power of suppliers is high considering that the products of the company are manufactured exclusively to cater various specific needs and wants of consumers. There are limited suppliers who are willing to provide the same products. The products they provide are also differentiated and of high value, i. e. customized to address beauty needs of consumers. 3. Barriers to Entry The barrier to entry in the cosmetics industry is relatively high. Success is not assured unless the company would establish a name and awareness to the consumers.

    Most people are very particular to brand name when it comes to cosmetic products. Moreover, the capital necessary to set up and establish a cosmetic store is very high thereby discouraging many from getting into this business. In particular in the U. S. market, it entails high cost of investment for the initial infrastructure. 4. Threat of Substitutes Substitute products particularly in the U. S. market are quite high. Other cosmetic companies that have already established a name in the U. S. include among others the following: Revlon, Estee Lauder, The Limited and Bath and Body Works, Maybelline, Avon, and the like.

    These competitor companies threaten the profitability of The Body Shop because they have already established a brand and quality that appeal to the taste of the Americans. PEST (Political, Economic, Social and Technological) Political Environment • Liberated, pro-competition • Open to foreign investment • Well-developed, flexible labor market • Advanced e-government strategy Economic Environment • Very strong macroeconomic environment with GDP of USD 30-35K • 18-20 days to register new businesses • Minimum regulations against downsizing or expanding in most countries • Multiple sources of capital for new start-ups

    Social Environment • Very low population growth • High life expectancy • Average schooling 10 years+ • Rank in the top 20 of UN’s Human Development Index (HDI) Technological Environment • High Internet literacy of 50-60% of population; very high mobile penetration of 80-90% • High per capita ICT spend at USD 2000-2500 • Strong e-services market; many are leaders in technology • Countries lead in defining Internet laws and management of intellectual property Demographics of the United States Miscellaneous statistics Age structure: (2007 est. • 0–19 years: 27. 4% (male 42,667,761; female 40,328,895) • 20–64 years: 60. 1% (male 89,881,041; female 90,813,578) • 65 years and over: 12. 6% (male 15,858,477; female 21,991,195) Population growth rate: 1. 00% (2007 est. ) Birth rate: 14. 20 births/1,000 population (2007 est. ) Death rate: 8. 30 deaths/1,000 population (2007 est. ) Net migration rate: 3. 05 migrants/1,000 population (2007 est. ) Sex ratios: (2007 est. ) • at birth: 1. 05 males/female • under 15 years: 1. 05 males/female • 15–64 years: 1 male/female 65 years and over: 0. 72 male/female • total population: 0. 97 male/female Infant mortality rate: (2007 est. ) • total population: 6. 40 deaths/1,000 live births • male: 7. 00 deaths/1,000 live births • female: 5. 70 deaths/1,000 live births Life expectancy (source: Census Bureau, 2007): • total population: 78. 00 years • male: 75. 20 years • female: 81. 00 years Total fertility rate: 2. 09 children born/woman (2007 est. ) • 2. 01 children born/women (2000) • 1. 91 children born/women (1990) • 1. 81 children born/women (1980) • 2. 48 children born/women (1970) • 3. 5 children born/women (1960) • 3. 01 children born/women (1950) Unemployment rate (source: Bureau of Labor Statistics, May. 2007 est): • all workers: 4. 5% • adult men: 4. 0% • adult women: 3. 8% • teenagers: 15. 7% • white: 3. 9% • African American: 8. 5% • Hispanic or Latino ethnicity: 5. 8% • Asians: 2. 9% B. Competitor’s Analysis Since the case analysis focuses on The Body Shop’s success and effectiveness in entering the U. S. market, the group’s competition analysis will focus on those companies whose presence and influence in the United States are strong and substantial.

    Companies such as Shiseido (Japan) and ZA (France) will not be discussed here. [pic] The L’Oreal Group, headquartered in the Paris suburb of Clichy, France, is the world’s largest cosmetics and beauty company. L’Oreal has developed activities in the field of cosmetics, concentrating on hair color, skin care, sun protection, make-up, perfumes and hair care. L’Oreal is active in the dermatological and pharmaceutical fields. L’Oreal is also the top nanotechnology patent-holder in the United States. The name L’Oreal is synonymous with the legendary advertising campaign, “Because I’m Worth It”.

    This campaign not only began with the launch of the superior Preference haircolor line, but came to encompass the spirit of L’Oreal itself: To provide the most innovative, high-quality and advanced products at an affordable price for women, men, and children of all ages and ethnicities. As a world leader in the beauty industry, L’Oreal has an unparalleled commitment to technology, research and innovation. L’Oreal’s continued dedication to developing future landmark products has placed them far ahead of the competition in beauty-related patent [pic]

    Revlon listed itself as one of America’s top five cosmetic houses. Expanding its capabilities, the company bought Graef & Schmidt, a cutlery manufacturer seized by the government in 1943 because of German business ties. This acquisition made it possible for Revlon to produce its own manicure and pedicure instruments, instead of buying them from outside supply sources. Revlon is one of the leading companies in cosmetics, skin care, fragrance and personal care and is a leading mass-market cosmetics brand. Its vision is to provide glamour, excitement and innovation through quality products at affordable prices.

    To pursue this vision, Revlon’s management team combines the creativity of a cosmetics and fashion company with the marketing, sales and operating rigor of a consumer packaged goods company. Revlon’s global brand name recognition, product quality and marketing experience have enabled it to create one of the strongest consumer brand franchises in the world, with its products sold in approximately 175 countries and territories. Revlon’s brands include Revlon®, Color Stay®, New Complexion®, Revlon Age Defying®, Almay®, Ultima II®, Flex®, Mitchum® and Charlie®. Primary production in the U.

    S. is done at our facility in Oxford, North Carolina. Since 1932, Revlon has developed a long-standing reputation as a trendsetter in the world of cosmetics, skin care, fragrance, and personal care. Revlon’s vision is to provide glamour, excitement and innovation through quality products at affordable prices. [pic] Founded in 1946, this technologically advanced, innovative company has gained a worldwide reputation for elegant, luxurious products – products that come with a promise to uphold the finest standards of excellence through extensive research and stringent product testing.

    All these to bring its customers gentle and highly effective products. Today, the Estee Lauder collection of skincare, makeup and fragrance exemplifies the best that art and science can achieve. The Estee Lauder name on a product is recognized in over 100 countries for quality maintained and promises kept. Estee Lauder now sells its products in department stores across the world, as well as having a chain of freestanding retail outlets. It employs over 20,000 people, and in 2003, its sales topped $5 billion. [pic]

    Bath & Body Works was founded in New Albany, Ohio in the fall of 1990, and has always prided itself on the innovation, quality and performance of its products. A division of Limited Brands, Inc. , Bath & Body Works now has more than 1,600 stores nationwide. For the past decade, Bath & Body Works has reinvented the personal care industry with the introduction of fragrant flavorful indulgences, including shower gels, lotions, candles and accessories. With a focus on creating and offering the best products, and an emphasis on innovation from nature, Bath & Body Works is destined to become the ultimate personal care destination.

    Bath & Body Works is a 21st century apothecary integrating health, beauty and well-being. Combining the introduction of spa products that are easily used at home with the incorporation of simple rituals into daily life, Bath & Body Works is committed to helping consumers improve their emotional and physical being. We have accomplished this by combining traditional spa treatments with botanical and natural ingredients, then developing an extensive collection of advanced, easy-to-use personal care products with proven effectiveness. VI. Alternative Courses of Action

    Given the case facts and analysis of the external factors affecting The Body Shop, the group proposes four possible courses of action. These will be analyzed and discussed further in Section VII. ACA #1: Continue with the current marketing strategies of The Body Shop, which primarily includes the use of public relations and cause-related marketing. The first course of action that The Body Shop can employ in entering the U. S. market is to continue with its current strategies in marketing. This includes strategies in research and development, product development, packaging and promotions.

    The Body Shop does not advertise nor does it use traditional distribution channels. It spends very little on packaging and uses product labels to describe ingredients rather than make any claims. It relies heavily on its leader, Anita Roddick who constantly visits places around the world to discover new products that The Body Shop eventually develops. Her journeys and discoveries have generated wide public appeal and have been crucial in promoting The Body Shop. The company has also used cause-related marketing as a means of promoting the company’s values, principles and beliefs.

    This alternative focuses on this marketing strategy as well. As The Body Shop enters the massive and competition-rich U. S. market, they will continue with the tried-and-tested strategies the company has used since its inception. ACA #2: Develop an advertising campaign to create a stir in the U. S. market and ensure that The Body Shop is at pace with the advertising-hungry U. S. consumer. This second alternative course of action deviates from the current marketing strategies of The Body Shop. Now that the company is entering the advertising-rich and hungry U.

    S. market, it must begin to advertise. Instead of relying solely on the efforts of Anita Roddick, The Body Shop needs to make the U. S. consumer aware that it exists and that it offers products that are different and beneficial to them. Given that the U. S. if full of other cosmetics products, The Body Shop can not just sit still and wait for its potential consumers to find out about them through the adventures of Anita Roddick or the socially-oriented campaigns that the company joins. ACA #3:Use cause-oriented marketing as the company’s primary marketing tool.

    They can ally with key international social and environmental groups that represent the same values and principles of Anita Roddick. The Body Shop is popular for its cause-oriented campaigns and its support for environmental concerns among many others. It can continue to use their socially- relevant campaigns in the U. S. market. However, owing to the fact that the U. S. is vast and diverse, and The Body Shop does not have significant resources to introduce its causes all over this new market, it can ally with key international social and environmental groups that are parallel with the principles that The Body Shop wants to promote.

    In this way, the company remains true to their original and widely-known strategy of marketing The Body Shop as a company that “cares. ” At the same time, by allying with established groups, The Body Shop is ensured that they get the much needed publicity and awareness that it needs to drive their company upward in the U. S. region. ACA #4:Use niche marketing and experiential marketing as the company’s overall strategy in the U. S. market. Considering that competition in the cosmetics industry is intense, The Body Shop would benefit by using niche marketing and experiential marketing as its core strategy in penetrating this region.

    By niche marketing, the company focuses in a defined customer group that has a distinct set of needs. Niche marketing enables small to medium firms focus on the specific needs and wants of their chosen market. By understanding their consumer very well, The Body Shop will be able to attend to their unique traits and wants. This would be a good entry strategy. Eventually, they can use experiential marketing by promoting their products and at the same time connecting with their chosen consumer group.

    According to Kotler, “The ides is not to sell something, but to demonstrate how a brand can enrich a customer’s life. ” The attention that experiential marketing gives to the personal benefits of the product may be ideal for The Body Shop which focuses on the socially-relevant causes and principles it fosters and promotes as it conducts its business. VII. Discussion and Analysis of Alternatives The four alternatives which have been briefly explained in the preceding section will be evaluated by comparing and discussing their advantages and disadvantages. ACA #1

    Continue with the current marketing strategies of The Body Shop, which primarily includes the use of public relations and cause-related marketing. |ADVANTAGES |DISADVANTAGES | |The Body Shop has benefited considerably in this form of marketing. |There is a big chance that without advertising, The Body Shop may not | |Delivering quality and friendly products and their socially-relevant |establish itself in the U. S. market and increase awareness about the | |activities have propelled the company forward.

    This strategy could |company and its products. | |continue to assist The Body Shop in its new geographical market. |The Body Shop may not be able to compete with others in the industry | |Costs are considerably low considering that the company will not |who use advertising as their primarily means of selling products. | |venture into advertising and other traditional marketing activities. |The company’s reliance on Anita Roddick’s public campaign and efforts | |This strategy will enable The Body Shop to remain true to their |may be unfavorable to the company once she leaves The Body Shop. |principles, values and causes. |The U. S. market may not have a strong affinity for the values and | | |causes of The Body Shop. | | |Lack of advertising may cause U. S. consumers to think or perceive that| | |The Body Shop does not provide quality or superior products.

    Studies | | |say that some people believe that products that do not have strong | | |advertising campaigns are viewed as inferior or of lesser value. | ACA #2 Develop an advertising campaign to create a stir in the U. S. market and ensure that The Body Shop is at pace with the advertising-hungry U. S. consumer. |ADVANTAGES |DISADVANTAGES | This strategy will allow The Body Shop to introduce and create |The Body Shop has always believed that a large chunk of product cost | |awareness for its products and its causes in the U. S. market. |is due to advertising. Hence, to offer superior products at affordable| |Strong advertising campaigns make some consumers think that the |prices, it has averted from advertising. This has also been one of the| |product is valuable and superior. By advertising itself, The Body Shop|reasons the company is greatly admired by its loyal supporters. |can ensure that consumers think highly of their products. |Advertising in the U. S. market is inconsistent with the image and | |Advertising can efficiently reach geographically dispersed buyers. |values of the company, and this may be distasteful to its current | |Consumers believe that a heavily advertised brand must offer good |market. | |value. This perception may increase sales. (Kotler, p. 515) |This strategy requires a lot of investment. | ACA #3 Use cause-oriented marketing as the company’s primary marketing tool.

    They can ally with key international social and environmental groups that represent the same values and principles of The Body Shop. |ADVANTAGES |DISADVANTAGES | |This is consistent with the company’s current values and principles. |This strategy may not be enough to penetrate the U. S. market and | |By remaining true to their socially-relevant activities, the company |attract attention to purchasing products. |can retain their loyal customers while attracting those who have the |Just like the problems Anita Roddick had with Greenpeace, these groups| |same beliefs as The Body Shop. |may slow down the needs of the company. | |Allying with established groups in the U. S. will allow the company to | | |reach a wider market without spending toomuch | | |This strategy enables The Body Shop to continue with its causes and | | |programs, which are very important to the company. | |The Body Shop contributes considerably to important issues of the | | |world. And as the world increases awareness about environmental | | |concerns and the need to preserve it, The Body Shop is surely to | | |benefit being one of the pioneers in this quest. | |In employing this strategy, The Body Shop reduces its reliance on | | |Anita Roddick thereby ensuring that it can sustain its campaigns and | | |its longevity even as Anita Roddick leaves the company. | |

    ACA #4 Use niche marketing and experiential marketing as the company’s overall strategy in the U. S. market. |ADVANTAGES |DISADVANTAGES | |Through niche marketing, The Body Shop can focus on the needs of those|Niche marketing limits the reach of The Body Shop. By focusing | |consumers who share the same values and principles the company has. marketing on a particular group of people, The Body Shop may lose | |Niche marketing allows The Body Shop to focus resources on a select |potential profits and revenues from other segments of the U. S. market. | |group of people. |The Body Shop needs substantial resources if it ventures into niche | |Experiential marketing, on the other hand, focuses on the “personal |marketing. They would have to undergo incredible research and study | |benefits” a product provides. This, the group thinks, is very |into the special needs of their chosen market segment. |applicable to The Body Shop which gives strong attention to the | | |socially-relevant causes of the company and emphasizes the intangible | | |benefits of purchasing The Body Shop products. | | VIII. Decision Made or Taken The U. S. market is one of the more diverse, if not the most diverse, in terms of consumer types, wants and needs.

    They are also known to be highly empowered and will do much to obtain the kind of quality and service they feel they deserve. Going into the U. S. was a difficult and risky decision for The Body Shop. However, the company believed that in order to truly expand globally, it had to penetrate this region. Although there was much uncertainty about how well the U. S. market would receive The Body Shop, and its philosophies and unique culture, Anita Roddick decided to expand operations to the United States. The challenges that the company faces as it operates in this market are numerous and intimidating. First, the U. S. onsumer is bombarded with advertisements everywhere. Advertising has been the major driving force that influences them to buy. This is inconsistent with the strategies of The Body Shop, which stays away from advertising and other traditional marketing activities. Second, employees in the U. S. branches did not seem to “fit” the kind of employees the company wanted to have. Third, the cosmetics industry in the U. S. is heavily populated. It is made up of companies such as L’Oreal, Revlon, Bath & Body Works and Esteee Lauder. They have also seen the trend toward “green” initiatives. This arena was previously dominated by The Body Shop.

    But now that the consumers are becoming more environmentally-aware, The Body Shop’s competitors are starting to crawl into this area that was once the turf of The Body Shop. This poses a big threat to the competitive advantage of the company in the U. S. market. Lastly, much of The Body Shop’s awareness campaigns are done through public relations. This is led by Anita Roddick whose adventures, journeys and causes have ensured constant publicity for the company. However, Roddick will inevitably have to leave The Body Shop behind. How then can it sustain itself without their passionate and sometime controversial leader?

    After careful analysis of the internal and external factors affecting The Body Shop’s entry into the U. S. market, the group recommends that the company develop an advertising campaign to create a stir in the U. S. market and ensure that The Body Shop is at pace with the advertising-hungry U. S. consumer (ACA #2) and adopt cause-oriented marketing as the company’s primary marketing tool by allying with key international social and environmental groups that represent the same values and principles of The Body Shop (ACA #3). These two alternatives will enable The Body Shop to accomplish the following: 1.

    Penetrate the diverse and advertising-hungry market of the United States; 2. Promote awareness for the brand, its products; 3. Create the perception among U. S. consumers that the company’s products have good value; 4. Continue The Body Shop’s socially-relevant advocacies; 5. Allow the company to remain consistent with the values and principles it has long held and promoted in other countries it operates in; 6. Create partnerships with established groups or organizations that share the same principles and causes of The Body Shop thereby allowing the company to create awareness in a wider area of the country; and . Allow The Body Shop to contribute considerably to the causes it believes in. Although The Body Shop has long rejected advertising, it must realize that the U. S. market is unique, challenging, vast and demanding. More importantly, the competition is fierce and numerous. In order to attract consumers, it must first make them aware of The Body Shop’s presence in the country. It must develop an advertising campaign that will focus on getting attention to their presence in the industry and capture those people who believe in the principles of The Body Shop.

    However, The Body Shop must be careful in its advertising campaign. It must be designed in such a way that it does not dismay its loyal clients and become inconsistent with the company’s principles in advertising. The Body Shop will also increase awareness and create a strong presence in the U. S. market by building partnerships with groups and organizations that share the same principles and values of the company. Through these partnerships, The Body Shop will be able to “advertise” or promote itself directly to those people who share the same concerns as they do.

    However, The Body Shop must identify those causes that it wants to be involved in. It cannot be involved in all forms of causes because it may confuse their consumers and retailers or even intimidate them. Also, The Body Shop relies on how much their consumers believe in the product they purchase. Their clients build a relationship with The Body Shop’s products. Hence, The Body Shop must be careful in choosing the issues it involves itself in. It cannot be involved in issues which its target market does not feel strongly about.

    Otherwise, it will lose their loyalty and support. Also, affiliating with key organizations will strengthen the advocacy of the company. Long after Anita Roddick leaves The Body Shop, the company will still be able to maintain its advocacies and its cause-related programs. IX. Action Plans The Body Shop is a global manufacturer and retailer of naturally inspired, ethically produced beauty and cosmetics products. It now has over 2,100 stores in 55 countries, with a range of over 1,200 products, all animal cruelty free, and many with fairly traded natural ingredients.

    Developing an advertising campaign will ensure that The Body Shop is at par with its industry competitors that have continued to thrive in the wide US market. And one of the most important medium to tap is the television industry. The Body Shop will need to initiate tie-ups with leading television networks such as HBO, CBS, ABC, WB and NBC. A sizeable part of viewing Americans aged 20-64 can be tapped especially during primetime where lots of series shows usually flood these time slots. The Body Shop can also keep up with the pace of the advertising-hungry US customers by coming up with its own line of aggressive marketing.

    Being the first international cosmetics brand to be awarded the Humane Cosmetics Standard for its Against Animal Testing policy, The Body Shop will need to partner with Progressive Animal Welfare Society (PAWS), in order for it to push for its cause, while at the same time, reaching out to even more markets. It will also need to incorporate into its website its socially-oriented objectives and core values such as Support Community Trade, Defend Human Rights, Against Animal Testing, Activate Self-Esteem, and Protect Our Planet..

    Another way of catapulting the company to the public scene is through establishing a charity, where the main thrust will be on working to achieve progress in the areas of human and civil rights, environmental and animal protection. The charity’s objectives, intended beneficiaries, proceeds and other relevant information will also be posted in their website for wider promotion. ———————– De La Salle Professional Schools Inc. Case 2 In Partial Fulfillment of the Course Requirement In Marketing Management Submitted to: Professor Ernesto Perlas Submitted by: Lea Chua Angelo Doma Catherine Resurreccion Group 2 October 13, 2007

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