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The Body Shop History

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Introduction There is success in body care. Behold the Body Shop, one of the famous international cosmetics brand. It is not just one’s ordinary shop for body or hair care. It is extraordinary just as its pioneer. The entrepreneur assessed in this paper is in no way or another connected to me. Personal Profile The name behind the Body Shop, a famous cosmetic line for decades now, is Anita Roddick. On October 23, 1942 in Littlehampton, Sussex, England marks her birth to an immigrant Italian family.

After completing her degree at the Newton Park College of education, she worked as a part-time teacher and for the United Nations in Geneva.

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She traveled to different places like Tahiti, New Hebrides, New Caledonia, Reunion, Madagascar, Mauritius, Australia, and Johannesburg. Her fascination with the women she encountered in these places became an episodic event in her life. It later formulated her tale of success. As stated in Lessem and Palsule (1999), she was mesmerized by the organic products that women in the Polynesian islands use to nurture their bodies.

Then, she went back to England and married a Scotsman poet and traveler named Gordon Roddick in 1971. Five years later, the Body Shop was born.

The Body Shop started out in the same area where Roddick grew up. It was just a small shop painted with green. Its products were just placed in little recycled bottles while its labels were just handwritten. All of which was to lessen production costs. Through the years, the body care business developed hand in hand with political causes. Dame Roddick, as how she is referred to now, has been acclaimed for many things. She has been London’s Business Woman of the Year in 1985. She has received an Order of the British Empire in 1988.

In 1988, she has been the Communicator of the Year, and Retailer of the Year. She has been the United Nation’s “Global 500” Environmental award. On the other hand, the Body Shop brand has been regarded as the second most trusted brand in the UK according to the Consumers Association. As said by the 1997 Interbrand survey criteria, it is known to be the top 28 brand in the world, and ranks second in the retail sector. The International Chief Executives in the Financial Times conducted a survey in 1998 and found Body Shop to be the 27th most respected company in the world (The Body Shop International.

Available at [http://www. thebodyshopinternational. com/web/tbsgl/about. jsp]. [Accessed 30/05/2006]). The Body Shop is aged 30 this year, 2006. From a small and simple shop, it has grown into a multinational company, though she prefers Body Shop to be described as “global. ”  It operates in 50 countries with over 1, 900 outlets. Indeed, the Body Shop has gone global, cutting across various cultures. That is how far it has gone. Recently, the Body Shop entered in an agreement with L’Oreal for its take over. The deal is reported to be worth ? 52 only. Founder and major stockholders Anita and Gordon Roddick, who still own 18% of its stock, are likely to receive ? 130M from the said agreement (British Broadcasting Company. Available at [http://news. bbc. co. uk/2/hi/business/4815776. stm]. [Accessed at 31/05/2006]). Successful Factor What does it take to become a successful entrepreneur? In Dame Anita Roddick’s case, what are the factors that lead for her and her business’ success? Success is measured according to sales growth, income, employment trends and satisfaction Solymossy (2000).

The reason why she came back to England while traveling Africa was because she was asked to by the English officials after finding out that that she did not do what a white is supposed to do in a black country. Years later, she made use of her encounter to open a “body shop. ”  Opening a shop that satisfies the need of nurturing the body out of indigenous science refers to the risk that Dame Roddick has taken. Indeed, it is interesting to note that she risked selling products, inspired by ethnic body rituals, among her fellow Westerners, being the consumers. She risked selling alternative body care products.

Nevertheless, she dealt with it with optimism. In order to face success, it is of crucial importance to think of the ways by which the business model will thrive in the marketplace. Another is to assess the strengths and opportunities of the business. Lastly, it is always important to innovate, as this has always described entrepreneurs (Baghai, Coley, and White, 2000). Innovations are proven to increase the business’ performance. During Christmas last year, upon launching a new product, i. e. a strong Christmas gift range, and improving customer services, operating profits from the division boosted to 17% to ? 1. 7 million (Geary, 2005). This is a recent event in the innovation strategies of Body Shop. Schumpeter (1939), as cited in Mintrom, Schneider and Teske (1995), asserts that an entrepreneur functions to innovate, which means devising new production function out of the existing factors of production. In simpler terms, an entrepreneur is one who introduces a new product or a product that deviates from the ordinary. Such is the basic idea or definition of an entrepreneur from which its modern definitions have developed. Apart from the above, there is something about the packaging of the Body Shop products.

Roddick started with small bottles since that was what she was complaining on. According to Kassaye and Verma (1992), lesser materials should be use to produce smaller, thinner and lighter packages. This is one of the ways by which a company can minimize packaging costs, and at the same time, maintaining products to be in line with “green”. Supporting the environment is ensconced in the Body Shop from the very beginning. Years later, as the Body Shop grew larger and larger, Roddick combined principles with profit. Jones’ (2005) article entitled “Good Deeds for Business Success” speak for itself.

In the case of Roddick, she sells body products through the Body Shop while supporting local community trade in Third World Countries. Personality has much to say in defining Roddick’s success. Taylor (1988) discusses 8 characteristics of women entrepreneurs, but in this case, three of which pertinently describe the subject of study. Introducing naturally made cosmetics speak for her creativity and capacity to innovate. She is confident enough to sell her body products in the market. And, she is driven by autonomy. In Roddick’s eyes, Body Shop succeeded because of two reasons.

Economic survival of her family, especially during its beginnings, was a primary driving factor; and, the passion to establish a shop of her own and to engage in trading was the other (Lessem and Palsule, 1999). She therefore succeeded not because of a capitalist goal, which is profit. What she did was she thought of ways to survive in the market. She did not dream of a big shop. The shop eventually did. Critically Appraisal Business Domain and Products Life Cycle The Body Shop is known for its cosmetic products that are naturally made and environment-friendly.

Struck by the body rituals among the women in the Polynesian islands, Dame Roddick made sure that the kinds of cosmetics that her shop sells are made naturally. Moreover, in this present age, this is what Body Shop offers still to its customers. Likewise, having roamed the corners of the world, Dame Roddick is able to acquire knowledge on the various natural products that different women across the globe use. If we are to make a careful scrutiny of the products sold at the Body Shop, then we will see the different products with different functions that are composed of ingredients that come from different countries.

Examples of which are the following: sesame seed from Nicaragua, shea butter from Ghana, coco milk, mangoes, strawberries, etc. Thus, if I am a shopper who passes by the Body Shop and get to see these products, then, no wonder, I will exactly feel the same fascination that Dame Roddick felt decades ago. All of these natural products are sold in all 50 countries where it exists. Target Customers Selected and Why Body Shop, as the brand implies, deal with the body. However, it is not mainly concerned with making the body merely to be beautiful as what most cosmetics pledge to do.

When we think of cosmetics, the immediate implication is that it pertains to beauty products and therefore, for women. On the contrary, is it only for women? In this present time, women and men alike undergo vanity rituals. Caring for the body is not just a female activity. It is an activity that males today look into. It is for individuals, male and female alike across various age brackets and social or cultural groups, who are geared towards nurturing their bodies. Anita Roddick did not really start the Body Shop with an intense will to have women being her primary target customers.

Rather, she created a venture with innovative products driven by the desire to own a shop of her own and the determination to survive. Unique Selling Point Lowson (2002) says that differentiation deals with offering uniqueness. Being different implies being unique. This is not the function of a particular entity in the organization, but the entire organization as a whole. Value is placed either on the product or the service or in both cases. In order to attain competitive advantage, he suggests focusing on the value that customers seek as the operations strategy.

This can be done by looking at the quality, reliability, variety, features, services, location, delivery, after sales support, etc. According to Aldrich and Fiol (1994), as cited in Shepherd (2003), cognitive legitimacy works simply through what is/are being signified in a particular sign or symbols. What makes the Body Shop unique? On the one hand, it deviates from its fellow cosmetics line with regard to its advertisements. It never made use of famous celebrities nor supermodels to endorse its products.

Furthermore, the characteristics that its models posses are far from the stereotypical model or from the Western standards. If we are to access the Body Shop International’s website, as cited in this paper, we will find out that these models are black. From this we can derive that the pioneer of Body Shop ventures into something that is more than just business. There is politics behind. The cosmetic business is bound by principle. According to Glancey and McQuaid (2000), two essential factors make Body Shop to be distinct. First, the value of integrity defines its interaction with its customers, staff and suppliers.

Second, it is the intense environmentalist philosophy of the business. Body Shop products are known for being naturally-made and environment-friendly. Thus, both the product and service compose Body Shop’s competitive advantage. Mintrom, Schneider, and Teske (1995) define an entrepreneur in relation to two essential aspects. First, entrepreneurs are determined to engage in risky actions in order to come up with new prospects. Second, they have the ability to organize or harmonize the actions of other people or the individuals around them in order to see their goals fulfilled.

Shepherd (2003) has concluded in his study on cognitive legitimacy that customers opt to have knowledge on the products and the culture within and the operation strategies of a newly opened enterprise. He has found this to be essential and beneficial for the company. This analysis on the Body Shop’s unique selling points shows that it actually overlaps with its competitive advantage. Its unique selling points define its competitive advantage. Critical Success Factor The organizational belief that Anita Roddick wants the Body Shop to live by is essential for the business’ performance. Body Shop has grown into a multinational company.

However, in Roddick’s perspective, she preferred her shop to be described as “global. ”  She believes that a global company functions because of values, whereas multinational ones “just trade. ”  Profit is not merely the motive of business. To be a “live, vibrant, and honorable” organization is what she believes as the function of business (Lessem and Palsule, 1999). The Body Shop’s organizational beliefs are strong, as they are strongly believed by its pioneers, both Anita and Gordon Roddick. They would even want to work with people or hire employees that share the same principle as theirs.

Strategy Taken and Market Share It is very clear in the beginning which path will Body Shop traverse. The identity that it possesses is that its products are made for a cause, i. e. social and environmental justice, while of course, keeping that its products are marked with quality and excellence. According to the Body Shop Retail Sales report, the total sales worldwide boosted by 7% to ? 772 million (Body Shop International. Available at [http://www. thebodyshopinternational. com/epages/wizard/images/CLIENT81146811462054_lg. pdf] [Accessed at 05/30/2006].

With the growing market capacities of the Far East Asian region, international brands like Body Shop will definitely create big. It is reported that Body Shop stores in the Asia Pacific region, particularly in Southeast Asia, Hong Kong and Taiwan, increase its sales by 12% while operating profits to ? 19. 7 million (Geary, 2005). American-born Peter Saunders, who is responsible for Body Shop’s operations in the United States of America, has devised a way to sell Body Shop products. In 2002, shoppers do not just go to its chains just to buy its products, because the Body Shop products themselves are the ones that go to the American homes.

Surprisingly, the results are promising. Saunders has predicted a 35% profit in operations. He comments, “You simply cannot underestimate the significance of being able to spend two hours with customers in their own homes…  It doesn’t cannibalize sore sales, in fact it bring in a lot of people who were not formerly customers. It’s all about brand awareness (cited in Lyons, 2005: 8). ” This only shows the variety of strategies that has to be taken by a multinational company in order to survive. If products fail in shops, then let the products be sold at home.

Analysis of the Business in the next five years The organizational strengths of the Body Shop have to do with its organizational culture. The uniqueness of the products in terms of its packaging as well as its ingredients stands for the beliefs and/or values that the organization dwells in. The end that a consumer arrives into from using the Body Shop’s quality products is neither just beauty nor skincare, but also a sense of an ideal being in this unjust world. Its ethical and environmental principles that the great Dame Roddick propagates define the strength of the Body Shop.

This is the identity of Body Shop that enables it to stand among the rest of its cosmetic rivals. Let us now deal with the deemed weaknesses of the Body Shop. According to Entine (1997), as cited in Giampetro-Meyer (1998), the very problem that troubles the Body Shop for ages is that its image does not parallel reality. The Body Shop boasts its natural products, and yet its products are not always fresh. Worst, its product formulas loaded with petrochemicals are actually outmoded. The Body Shop claims that it is against the use of animals to test its products, but its products’ ingredients are actually tested on animals.

The Body Shop asserts that it promotes development among Third World Countries by supporting local trade. However, does it really do so? The reality is that its Trade Not Aid program are said to provide only token relief to the indigenous group that it supports. Could the aforementioned be true? Or could it be just propaganda? This is no time to search for truth. A counter attack to such damaging propaganda is a simple label of propaganda by rival companies. What matters is to maintain the economic survival of the business. Body Shop has chosen a business path that goes along with social justice.

The perception that its products are for a cause is all that matters for the consumers. Running for 3 decades now, the Body Shop has proven that every aspect of it has acquired high performances. Of utmost concern at the moment is that L’Oreal’s takeover could be a threat to a certain extent. The agreement that both parties entered into is something new. It took place just a couple of months ago. Agreements today can become disagreements in the future. Body Shop’s autonomy may change through time. L’Oreal could be a threat to the Body Shop’s performance in years to come.

L’Oreal has made a smart move on Body Shop, being its rival. In terms of profit, the success of the latter is likewise the success of the former. Moreover, the former is at an advantage stance, for it competes with the latter while at the same time gaining from it. Most likely in the near future, both of which will be the giants in the arena of cosmetic business. Women and men alike will most likely purchase products that pertain to the body. Women will always spend on cosmetic products. As mentioned in the aforementioned paragraphs, Body Shop’s products stand among the rest of the cosmetic products.

In relation to this, its suppliers come from the ethnic or cultural groups in different Third World countries that it supports. Body Shop may stand among the rest but for how long? Other body products are likewise improving its weaknesses. There is indeed a variety of alternative body care products in the market. However, things will also depend on the strategies that L’Oreal will take. Recommendation Dame Anita Roddick and the Body Shop have gone a long way in the cosmetics business. It is interesting to note the irony behind. A capitalist who is not greedy is one who actually survives and succeeds the most in the world.

It is then recommended that studies in business should consider principles or ideals and not just the art of profit making. Conclusion Dame Anita Roddick deserves the praises for her exemplary performance as an entrepreneur. She has become successful because of the clear goals that she wants her Body Shop to have and attain. In her case, risk undertaking, creativity and being innovative, and beliefs, are the factors that made her a successful entrepreneur. The first step is not to succeed in the marketplace, but to enter the marketplace with a strong identity. The Body Shop is just somebody’s body shop.

Now, it is everybody else’s “body shop. ” With the $950-million Indian cosmetics market expected to grow 15-20 percent annually despite the slowdown, Britain-based personal care products retailer The Body Shop has drawn up a fresh strategy, including aggressive discounts and opening of new stores, to tap the market. The company, a 100-percent subsidiary of French cosmetics giant L’oreal, has already cut prices of its products by 20-30 percent even as it plans to add new Indian cities to its footprint in India – a market which has emerged among top priorities for the group. We are very bullish on India and want to expand to more cities. This year we will add 10 stores. We have also cut product prices to make them more attractive to customers,” said Shriti Malhotra, The Body Shop’s general manager for India operations. “We will be focussing on the south market and are planning to open stores in places like Chennai and Hyderabad,” Malhotra told IANS, but declined to divulge any figures, either on sales or on investment.

At present, the company is operating 25 stores in eight Indian cities under a franchise agreement with retail major Future Group, controlled by Kishore Biyani, whose enterprise also runs the Pantaloon and Big Bazaar chains. But The Body Shop does not want to lose its premium, upmarket tag, although it slashed prices March 1. For example, a 250 ml shower gel bottle from The Body Shop costs Rs. 325, while one can get the Palmolive version at a third of that price. “Our products are definitely priced at a premium. We operate in a niche segment.

But we have been keeping in mind the current economic environment and customer’s feedback. So these price cuts will attract more customers,” said Malhotra. The company is also going the shop-in-shop route to expand its presence in India – a concept for retail strategy where large departmental stores, shopping malls or retailiters let out space to other brands. “We already have a tie-up with Future group’s Central malls and Debenhams, a UK-based garment accessories and fashion retailer. We plan to go to other cities with this concept,” she added.

The L’oreal subsidiary was started at Brighton in the UK by two entrepreneurs – Dame Anita Roddick and her husband Gordon – by borrowing 3,000 pounds sterling (now valued at $4,200), some 30 years ago. Three years ago, L’oreal paid 652 million pounds ($915 million) to buy the company which has 2,500 stores in 60 countries. According to estimates by the Confederation of Indian Industry (CII), the total Indian beauty and cosmetic market size stood at $950 million in 2008 and was growing at 15-20 percent per annum. More at : The Body Shop cuts costs, plans expansion to tap growing market http://www. thaindian. om/newsportal/business/the-body-shop-cuts-costs-plans-expansion-to-tap-growing-market_100164740. html#ixzz0xii9O3ko The Body Shop, part of Planet Retail Group, has announced lowering prices of over 200 products by 20 to 30 per cent in India. Further, the company plans to re-launch it’s customer club with better benefits and privileges for members in India, according to a company press release. Shriti Malhotra, general manager, The Body Shop India, said, “In response to the current economic environment, we have listened to our customers feedback and want to offer even better value for money on our products. Some of the products at new price points include body butters, shower gels, body scrubs, vegetable soaps and lip colours. Besides, the company also launched its instant loyalty enrolment offer that enables customers with savings of 10 per cent on purchases of all full priced products. Currently, the company operates 25 The Body Shop stores across eight cites in India. Body Shop aims to achieve long term corporate growth through the exploitation of a differentiation strategy in satisfying customer needs in terms of beauty products supporting a relaxed, natural and healthy life style.

In addition the Body Shop seeks to contribute to society by holding campaigns including ones against animal testing, on environmental issues as well as support for domestic violence help hotlines. * Product: To provide varied ranges of high quality natural and/or environmentally friendly products to the public. * People: To build good relationships with interested parties including shareholders, employees, customers and the general public. * Branding: To create and maintain a strong brand name for the Body Shop in terms of high levels of awareness and recognition in the market for quality products and superior service. Organisation: To achieve organisational growth over the long term. * Social responsibility To encourage community trade and in turn to develop solid relationships with suppliers * who provide natural ingredients. To consistently oppose the testing of products on animals. To focus on the protection of human rights such as in actions against child labour. 2. Competitive and Brand positioning As one of the most famous beauty products brand the Body Shop is positioned as a natural ingredient cosmetics producer and provider.

A core image of the brand is that it seeks to improve the quality of people’s life through sourcing and producing environmentally friendly and natural products. In adding to this element of the brand the strong promotion of corporate and social responsibility through supporting various campaigns further strengthens the brand’s positioning as an internationally ‘Green’ company. 3. Marketing Strategic Objectives for 2006 The marketing strategic objectives are based on the corporate aims outlined for 2006 which are focused on different areas including product, people, branding, organisation and social responsibilities.

Product: 1. Offer high quality beauty products sourced from natural ingredients based suppliers. 2. Offer products which are able to improve quality of life including both cosmetics and home goods ranges such as home fragrance products. 3. Offer a high level of professional customer service through motivated and trained customer care and beauty consultants. People: 1. Provide superior and professional customer services based on high quality products and high standards of employee training. 2. Maintain a stable relationship with employees in order to fulfil effective work performance in terms of customer service. . Satisfy the corporate board by achieving financial goals including increasing sales and profit returns in 2006 and achieve organisational growth through securing a 10% market share. Branding: 1. Improve brand awareness through an effective marketing and communication mix. 2. Maintain brand images reflecting core business principles 3. Improve sales performance supported by branding strategy. Achieve organisational growth. 1. Secure organisational expansion in the next three years in the UK and Irish regions. 2. Achieve a 10% growth rate in 2006 and 5% in the following two years. . Achieve market leadership in the natural beauty product retailing industry. 4. Maintain effective organisational controls through intranet and supporting team work between different departments. 5. Maintain good relationships with suppliers in order to obtain cost advantage and logistical efficiencies. Social responsibilities 1. Continuously express concerns with protecting animals and advocate against testing products on animals. 2. Improve public awareness on protecting the environment. 3. Improve performance in supporting protections of human rights. . Contribute to healthy industrial growth through supporting small natural ingredient suppliers and local fair trade produce. 4. Segmentation – Target Markets Market segmentation is able to provide the basis for the selection of target markets which for the Body Shop’s targeted customers are general members of the public at all ages who seek natural and healthy beauty products. Additionally people who have an awareness of particular social issues which concern them such as animal testing and environmental protection are also targeted as potential customers.

Firstly the Body Shop provides natural beauty product ranges including cosmetics for both women and men and home range. In this sense the general public from all age groups can be seen as potential customers. Secondly the most important variable in defining possible segmentations is based on psychographic characteristics namely lifestyle which will be discussed in detail in the next section. In additional the Body Shop brand is a quite famous national brand for beauty products in the UK and its brand image is closely linked with the campaigns it pursues in light of its corporate social responsibility objectives. . Target Characteristics Customer segmentation for the Body Shop is strongly associated with psychographic variables namely lifestyle ones with one of the major characteristic of customers being growing levels of awareness over health and social issues Additionally another characteristic of beauty goods customers is that they are concerned with brands to a high degree. This is to say people prefer products which are both perceived as being healthy and which have a strong brand image linked with beauty products.

Of note also is that along with traditional media forms the emergence and growth of new media channels in the UK such as the Internet represent new challenges and opportunities in targeting customers. According to research by BT it is forecasted that 90% of the country will have some type of Internet connection by 2010 with a large proportion being on high bandwidth connections such as ADSL which is suggested as being the basis for a new integrated communication and information environment (Kitchin, 1998).

Arguably then the wide use of the Internet has become a vital characteristic of modern customers which the Body Shop needs to address. It is undoubted that the female customer group is the most important and major source of customers and that due to increasing pressures resulting from the growing role of women in the workplace there is a growing demand for lifestyle linked products. A healthy lifestyle has become a key expressed principle in modern life which is linked with people becoming more concerned with the environment and social issues.

The Body Shop’s strong social responsibility programs in this area represent a significant advantage in targeting these customers which can be leveraged further. 6. Marketing Messages by Segment The Body Shop cosmetics product ranges are mainly based on natural ingredients which is able to respond to the requirements for better levels of product quality exploiting an image of namely the more natural the better the product will be. While the strong brand image of the Body Shop generates competitive advantages in the natural beauty product market its association ith the protection of animals, environmental issues and human rights allow it to respond to the changing preferences of customers in terms of supporting ethical and socially responsible companies. In response to the use of the Internet the online corporate website will play an increasing role in communicating with customers as well as the creation of new customers through effective web based communication. The position in the marketplace for The body Shop is very high due to their target marketing; This company has enormous varieties of supplies for everyone; adolescents, toddlers, children, teenagers, adults, and elderly adults. . Retail Brand Management and Research 2. Founder of The Body Shop * Anita Roddick – known for her innovation, integrity and social responsibility. * She campaigned for green issues for many years before it became fashionable to do so and inspired millions to the cause by bringing sustainable products to a mass market . 3. The beginning . . . * In 1976, Anita Roddick opened her first store in Brighton, England – The Body Shop. * It sold its products with a hype free presentation, reflecting values that set it apart from its competitors – anti glitz, anti waste and natural ingredient philosophy. . The beginning . . . * From its first launch in 1976 The Body Shop experienced rapid growth, expanding at a rate of 50 percent annually . * After it obtained a full listing on the London Stock Exchange, the stock was given the nickname “The shares that defy gravity,” as its price increased by more than 500%. 5. The Body Shop – Mission * “ The way we do business, the way we make products, the way we * source ingredients, and the way we use our voice; we’re different * because of our Values” Activate self-esteem * Protect our planet * Against animal testing * Support community trade * Defend human rights 6. Activate self esteem * ‘ Ruby ,’ The Body Shop’s ‘Rubenesque’ self-esteem icon. Adorning magazines and posters in 25 countries, she appeared next to the headline: ‘There are 3 billion women who don’t look like supermodels. And only 8 who do. ’ Inspiring international debate and challenging beauty stereotypes * Raising awareness of domestic violence – ‘Stop Violence in the Home ’ ongoing campaign has reached 2. m pounds, had reached more than 50 countries by 2007 7. 8. Activate self esteem * In 2006, partnered with UNICEF and United Nations Secretary Generals Study into the effects of Domestic Violence on Children * In 2007 launched Wise Woman – a range of advanced products especially developed for mature skin * ‘ In 2008 launched Well-being ranges – Total energy, Deep Sleep, Divine Calm & Simply purify * Staff gets paid time-off to do work for the charity of their choice 9. 0. Activate Self esteem workshop 11. 12. Against Animal Testing and Protect our planet * In 1986, launched first window campaign, ‘ Save the Whale ’ calling for an end to whaling, and introduced jojoba oil to replace sperm whale oil in cosmetics * In 1986, 4 million people signed our petition against animal testing in Europe; in 1998, animal testing of cosmetics was banned in the UK * One of the first retailers to use sustainable palm oil in our bars of soap. All The Body Shop products are vegetarian * Avoid excess packaging wherever possible, Possible – reduce, reuse and recycle 13. Against Animal Testing and Protect our planet 14. Defend Human Rights * People are at the heart and soul of The Body Shop’s business. * They treat people in a fair and open fashion , to respect and value their integrity. * They take enormous pride in their community trade rogramme, not just because they were a pioneer in bringing fair trade to the cosmetic industry, but because of the real difference it makes to the lives of the farmers, producers and their communities. * * In 1991, launched the Big Issue in Britain to benefit homeless people – Europe’s first street paper sold by homeless people so that they can earn income and regain self confidence * In 1993 saw the start of their first HIV and AIDS awareness campaign * 15. Defend Human Rights * In 1994 began campaigning against domestic violence The Body Shop was founder member of the Ethical Trading Initiative , which brings together organisations to help improve working conditions for people around the world * * In 2007, The Body Shop celebrated 21 years of Community Trade * They now work with over 25,000 people around the world, guaranteeing them a fair price , offering them business advice should they need it, and sustainable benefits to the community as a whole 16. 17. 18. Support community trade * Marula oil – from Namibia – Lip Colours, and most of make-up items. Through the supplier, the inspirational women-owned and run Eudafano Women’s Cooperative , more than 4,800 women now receive a fair income, and with it greater independence and an increased sense of standing in the community * Aloe vera from Gautemala –is hand harvested by the farmers who receive a fair price for it and educational materials for local schools * Body butter has community trade ingredients benefitting marginalized communities around the world * Guarana Lip Butter – along with MTV and thousands of customers came together to raise awareness and funds for Global HIV and AIDS campaign, in 2008 19.

Support community trade 20. * The Body Shop has donated 11 million pounds to more than 300 projects around the world through The Body Shop Foundation Trust 21. Social Activism * In its earliest years, The Body Shop did not visibly market itself as committed to social causes * It promoted its products as ; natural ,; and by the standard of the times they were. However, the bright colours and strong fragrances were created by chemicals, including from petrochemicals, which were also used as preservatives 22.

Social Activism * In 1986 The Body Shop proposed an alliance with Greenpeace in the UK to promote their line as helping to save the whale * Soon other promotions tied to social causes were launched, with much public and media interest * The Body Shop regularly featured posters on shop windows and sponsorship of local charity and community events 23. Community trade The Body Shop instituted pioneering social audits in the mid-1990 * Now regularly promotes its values such as Community Trade, reflecting its avowed practice of trading with communities in need and giving them a fair price for natural ingredients or handicrafts they purchase from these often marginalized countries * The first Community Trade activity in 1987 was a footsie roller which was supplied by a small community in Southern India (today known as Teddy Exports) and still a key Community Trade supplier . Since then, The Body Shop has found many trade partners in over 20 different countries that are often overlooked by the local as well as the global society 24. Current Situation * In March 2006, French cosmetics giant L’Oreal acquired The Body Shop for ? 652. 3m * Presently, The Body Shop has 2,400 stores in 61 countries and is the second largest cosmetic franchise in the world. * Range of over 1,200 naturally inspired ethically produced beauty and cosmetics products targeted at different female and male age groups. * Sustainable/green packaging * Recycling/disposal of by-products Concern for deforestation (Supply of palm oil and brazil nut oil from forests in conserved areas) 25. Current Situation * As part of its Nature’s Way to Beautiful campaign , the first marketing effort since its purchase by L’Oreal * The Body Shop has launched its Wellbeing line of  beauty products in 100% PCR (post-consumer recycled plastic) bottles , and will feature in-store displays describing the environment friendly nature of their products. * The company converted all of their PET bottles from 30% PCR to 100% , by 2008 – using fewer natural resources and reducing the emissions of greenhouse gases. By the end of 2008, Carrier bags were made of 100% recycled paper and printed with water soluble inks 26. Current Situation * In an effort to get customers to stop using plastic bags, they have also introduced the Bag of Life , a shopping bag made of organic cotton-canvas, with $2. 00 from each purchase being donated to the National Coalition Against Domestic Violence * By 2010, 80% of The Body Shop products should contain Community Trade ingredients, or come from a Community Trade supplier. * In the long term, The Body Shop intends to become carbon neutral by 2010. 27.

SWOT analysis * Strengths * Brand (name, image, ethics, values, natural ingredients) * Innovative products * High brand loyalty * Successful leadership skills * Experienced executive management team * Good quality and services * Experience, financial backing and expertise of L’Oreal * Weaknesses * Many products are in the mature/ declining stage * Lack of celebrity in promotion for attracting young people * Sales volume restricted by the limited no. of retail outlet. * Instances of loss of trust from different stakeholders in the supply chain (publications in press) 28.

SWOT analysis * Opportunities * Increased awareness of organic and eco friendly products * Growth in men’s skin care products * Increasing number of online buyers * Ageing population (willingness to spend on premium-priced products claiming anti-ageing properties) * Ban of sale and marketing of animal tested products in European Union from march 2009 * Threats * Suppliers are not required to adhere to ecological standards * Environmental management system is not certified to an official standard (e. . ISO 14001) * No marketing department and no advertising department 29. Competition Analysis The Body Shop L’Oreal Olay & Nivea Product line Mainly skincare Broad Focus on skincare Market position Environment friendly Leader Major competitor in skin & body care market Competitive advantages Natural-based & brand value Very experienced global brand Low price & product innovation Price range Mid range Slightly lower than the Body Shop Mid-low 30. Promotion Strategy Public Relations – sensitize customers, bonding, creating value relationships with their consumers, collaboration with charitable foundations, United Nations, MTV, create awareness campaigns, posters * Inform Public – Best sellers, Members Special, Best Buy, Discounts, Newsletters, Winter treat offers, E– brochures, On facebook, Mobile Coupons * Love your body – is unique members club that rewards you with discounts, free gifts and access to the kinds of perks and privileges only club membership brings 31. RECOMMENDATIONS * Venturing into untapped markets like China, Malaysia etc. Create WORLD WIDE online Store for customers – easy accessibility, brand equity, promotion of new range of products, tracking consumer response to the products, getting feedback/complaints/compliments/advice * Brand Extensions for The Body Shop * Start a Bath and Body, Skincare collection for kids * Can venture into Eco – Friendly Apparels for women sourced from communities around the world * Can venture into Home Accessories department , sourcing from communities with rich culture thereby preserving their ethnicity and providing them with a means of livelihood 32.

Bath and Body collection for kids * Target Audience – kids (6-12 year olds) * The Collection is called ‘bubbles’ and the tagline is * fun. love. nurture. 33. Products 34. Logo options 35. Logo options 36. Bubbles – final logo 37. 38. Brand Profile * bubbles is a playful, fun and colourful range of bath and body care products that will be sold exclusively at The Body Shop outlets. * Inspired by the transparency and colours reflected in the bubble when light passes through it. * The round shape also signifies protection and care. * Different colours of the world easily reflect on the surface of bubbles.

Thereby carrying forward the values of The Body Shop – human rights and community trade. 39. Brand Personality * Excitement * Cool, young, spirited, outgoing, adventurous, unique, surprising, fun * Sincerity * Real, ethical, thoughtful, caring, genuine, ageless, classic, friendly, warm, happy * Competence * Reliable, efficient, trustworthy, confident, influential, careful 40. Brand values * Protect our planet and Against animal testing * Natural ingredients sourced from different places around the world – South Africa – Shea butter, Columbia – palm oil, India – coconut parts . Etc * Use 100% recycled packaging. Use post-consumer recycled plastic in the bottles – reducing the emission of green house gasses 41. Brand values * Defend human rights and Support community trade * Support research against domestic violence on children and campaigning against it. * Setting up shelters and schools for kids in the developing areas ensuring healthy food and safe study environment. * Support the protection of of existing parks and building of more green reserves and open grounds in the cities. Sourcing raw materials for the products from developing communities practicing fair-trade and providing them with a source of income. 42. Promotion * Activate self-esteem * Organising Group activities like dance classes, painting sessions, karate classes and guitar sessions. * Health activities like yoga sessions, swimming classes, outdoor games and activities like – trekking, camping and gardening. * TBS Awards – given to children for showcasing extra ordinary talent and skills. 43. bubbles store 44. Competition * Johnsons and Johnsons * Himalayas baby care * Doy soaps * Loreal kids shampoo

The Body Shop International CASE ISSUES: Market Saturation/Loss of Sales (CI#1) – Growth Strategy is no longer working for The Body Shop. Their store growth has diminished since the mid-1990s, and by 2002 the company’s profit was shrinking, and sales were not growing proportionally to the rapid expansion of stores. Having entered a retrenchment phase, they need to focus on profitability without rapid expansion. Is Anita Gone? (CI#2) – Though Anita Roddick stepped down as CEO in 1998, and resigned as Executive Chairman in 2002, it is unclear how much influence she has on day-to-day operations and strategy.

Core Values (CI#3) – By changing top management and governance, The Body Shop runs the risk of losing their identity and their core values. Losing touch with these values could cause a loss of reputation, however, clinging to them above shareholder’s value is also detrimental. Loss of Image (CI#4) – The Body Shop’s image seems to be undergoing another makeover. With Anita Roddick being at least a less visible member of the organization, The Body shop no longer practices eccentricity for eccentricity’s sake. However, changing their image has also meant they have lost their uniqueness among their competitors.

I. CURRENT SITUATION A. CURRENT PERFORMANCE The Body Shop achieved an overall solid performance for the year 2004 especially with strong sales in the USA (+ 4%), the Middle East (+4%), the Nordic countries (+4%) and most part of Asia pacific (+2%). However, these encouraging numbers were offset by weak sale in the United Kingdom (-13%), Canada (-10%) and parts of Europe (-7%). This growth occurred while the growth of stores slowed. This may signal a shift away from the extreme growth model to a focus on quality. B. STRATEGIC POSTURE Missions Oslash;To dedicate their business to the pursuit of social and environmental change ;To balance the financial and human needs of their stakeholders: employees, customers, franchisees, suppliers and shareholders. ;To ensure that their business is ecologically sustainable: meeting the needs of the present without compromising the future ;To contribute to local, national and international communities in which they trade, by adopting a code of conduct which ensure care, honesty, fairness and respect. ;To campaign for the protection of the environment, human and civil rights, and against animal esting within the cosmetics and toiletries industry. Objectives ;Drive customer loyalty “focus on customer’ satisfaction by providing them with the best global practices and services among the four regions we are running our brand”. ;Launch a $100 million expansion program which aims to: expand operations, open new channels, and install new infrastructure ;Developing innovative and credible products ;Keep price affordable Strategies ;Move the brand to a “masstige” positioning by developing original products at affordable price. CI#4) ;Launch marketing initiatives in order to promote their “masstige” brand positioning. (CI#2)(CI#4) ;Promote the Body Shop’s image as a corporate mainstream retailer rather than as an activist’s company. (CI#3) (CI#4) ;Focus more on quality rather than growth (CI#1) Policies ;The Body Shop is against animal testing on cosmetic products and ingredients. They do not purchase from suppliers who perform animal testing. ;The corporate seeks to trade with local communities, who would not normally have the chance to trade with companies like Body Shop. CI#3) ;The Body Shop defends human rights and support social responsibilities through doing business. (CI#3) ;The Body Shop supports and campaign the protection of the environment, perhaps in a less rabid way than before. (The Body Shop International and Greenpeace joined forces in 2001 to run the Choose Positive Energy campaign. ) II. CORPORATE GOVERNANCE A. BOARD OF DIRECTORS NameDirector SinceTitle Anita Roddick1976Non-Executive Director and Founder Gordon T Roddick1977Non-Executive Director Peter Saunders2002Executive Director, CEO Adrian P Bellamy1997Executive Director

Jack Keenan1999Non-Executive Director Irene Miller2000Non-Executive Director Ronald de Waal2000Non-Executive Director Anita Roddick As the founder, Anita has always had the clearest and strongest vision for the company. In 2000, she stepped down as CEO of the company, handing that torch to Peter Saunders. Again in 2002, she resigned as executive director, remaining a non-executive director of the company. Since then, her influence on the company has been less visible (CI#4), but it is unknown if her strength has weakened at all (CI#2). Gordon T Roddick Anita’s husband has supported her company from the beginning.

For years, Anita was the CEO, and both husband and wife chaired the board of directors. This tag-team supported Anita’s entrepreneurial style of management. Since Gordon has always followed Anita’s lead, when she stepped down in 2002, so did he. Peter Saunders Saunders was hired in 1998 as the Chief Operating Officer to turn around the floundering United States business. With that success, he was granted the position of CEO in 2000. Saunders provided what the Roddicks lacked: business experience. He has experience as COO of a Canadian retail firm (advantage) Adrian Bellamy

When business first started to look bad for The Body Shop in 1997, the Roddicks entered a Joint Venture with Bellamy Retail Group to spin off the U. S. business under Bellamy’s control. This, along with the addition of Saunders was so successful that the Roddicks bought BRG, and brought Bellamy and Saunders into the company to run worldwide operations. Bellamy also serves as non-executive director for several other retail chains, such as The Gap and Williams-Sonoma (conflict/advantage? ). Jack Keenan Keenan is a non-executive director who brings experience with similar industries to The Body Shop.

He previously worked with Diageo, best known for Guinness Beer. Keenan currently also serves on the boards of Marks & Spencer PLC, Tomkins PLC and General Mills, Inc (Conflict? ). Irene Miller Irene brings retail experience to the company with her time at Barnes & Noble. She still currently serves as a non-executive director of B. Robert de Waal De Waal is a non-executive director who also sits on the board of the Dutch National Retailers Association (conflict? ) B. TOP MANAGEMENT & MANAGEMENT STYLE ;Bellamy and Saunders have a partnership style of management ;Anita still looms (CI#2)

III. EXTERNAL ENVIRONMENT SCAN A. SOCIETAL ENVIRONMENT 1Economic ;The seemingly improving economy can lead to higher consumer spending and investment. ;Sales of products that include components obtained from foreign suppliers can be adversely affected by currency exchange rate fluctuations and by international trade regulations (tariffs and antidumping penalties). ;Low interest rates in the United States 2Technological ;Advent of the internet in the industry is a key market ;Most retailers offer their products online as well Oslash;The Body Shop has gotten ahead of the pack by being the first to offer a Direct Selling service. 3Political-Legal ;International trade regulations such as tariffs, quotas and taxes can significantly affect the company’s operating results. ØNAFTA, European Union and other regional trade pacts opening doors to markets in Europe, Asia, Latin America that offer enormous potential. 4Sociocultural ØPromotes human and animal rights ØThe Body Shop is no longer alone in this, however ØThe company is value conscious, and appears to be free of any sociocultural threats.

B. TASK ENVIRONMENT Threat of New Entrants: ØLow – It is difficult for new competitors to enter the market due to high costs and high existing competition Threat of substitute products: ØHigh – Competitors (Bath and Body Works or Crabtree & Evelyn) make products which can be substituted for most of the Body Shop’s products Bargaining power of suppliers: ;Low – The Body Shop has an upper hand on its suppliers. They will not buy products that are tested on animals ;Use of suppliers in 3rd world countries that are economically depressed

Bargaining power of buyers: ;Medium-High – Materials used can be obtained worldwide. Buyers have the advantage here, competition is generally nearby Rivalry among competition: ;High – There are many companies involved in the industry who are able to offer lower prices IV. INTERNAL ENVIRONMENT SCAN A. CORPORATE STRUCTURE The company’s structure is a hybrid. Primarily, B. CORPORATE CULTURE Corporate Culture well-defined and strongly entrenched along 5 lines: 1Against Animal Testing 2Support Community Trade 3Activate Self Esteem 4Defend Human Rights 5Protect Our Planet

The Body Shop does more than claim to take the high road. With regard to animal testing, they “consider such tests to be morally and scientifically indefensible. ” To support this position, they have had a no-animal-testing rule since 1991. This means they refuse to buy ingredients from suppliers who perform animal testing, and The Body Shop conducts annual inspections to ensure that none of their suppliers are animal testing. The Community Trade program is a “targeted purchasing programme of accessories and natural ingredients from disadvantaged communities around the world. “We get good quality products at a fair price which covers production, wages and also enables communities to invest in their future. They get a sustained source of income which can be used for improving education or sanitation, building homes and modernising farming methods, to name but a few. ” As an example, in 1998, a line of products was introduced using oil from a citrus fruit grown in Calabria, Italy. The advent of cheap synthetics to this oil destroyed the grove economy in that area. Through the Community Trade program, Anita decided to use the actual fruit in The Body Shop’s product line, which revitalized the economy in Calabria.

Improving women’s self-esteem is a key goal of the Body Shop. Their products claim to make you “feel good about yourself”. The corporate website offers this frank description of their products: We’re in the business of skin and hair care. Our products care for your skin and your hair. That’s all. We want you to buy our products because they work. That’s it. We don’t claim to sell miracles . . . We don’t sell false promises. One campaign, which took place in the late 1990s, featured a doll named Ruby whose body represented that of real women.

The thrust of the campaign was: “There are three billion women in the world who don’t look like supermodels and only eight who do. ” Since 1988, The Body Shop has been involved in dozens of Human Rights campaigns, making progress in the areas of child labor, education, gender equality, and the right to housing. Finally, The Body Shop believes that all businesses have the responsibility to protect Earth, and recognizes the many ways in which an organization indirectly impacts the environment. As a retail business there are many activities involved in bringing products to market that have a direct impact on the environment.

Examples include fuel used to distribute goods to our stores, waste generated by our office activities and store design. One of the more notable contributions of The Body Shop in this area is their support of Farm Aid, and their support of non-narcotic hemp. This strong, well-defined corporate culture is both a Strength and a Weakness. It is a strength because it creates a positive image of the company to customers, but it is a weakness because in every respect, social and environmental responsibility is put ahead of productivity, cost control, and competitive pricing. C.

CORPORATE RESOURCES Marketing The Body Shop has always been very clever when it comes to marketing. The only marketing strategy compatible with their activist philosophy is no marketing at all. From the beginning, Anita flatly refused to advertise or have a marketing campaign. However, like many other “green” organizations, they have procured their fair share of publicity from their social agendas. The body Shop makes a lot of noise about the causes they support. This results in free marketing, and adds to their reputation as a company with a social conscience–whether it is true or not.

Primary Target Market: Middle-Class Women aged 30-50 Customers who care about social issues. Emerging Markets: None. Company is in retrenchment, trying to regain it’s market Marketing Mix: ØPRODUCT: The primary products of the Body Shop are the all-natural skin- and hair-care products. However, there are several important byproducts that cannot be ignored. ØSelf-Esteem The Body Shop does not market using supermodels or make judgments about how anyone should look. They claim that their products make you “feel good about yourself. ” Inconsistent? Claiming this puts them in a risky position as they also claim “We don’t sell false promises. ” ØEnvironmental and Social Activism By buying Body Shop products, customers are made to feel that, simply by buying lotion made from hemp, that they are effecting social change. The Body Shop seeks to endow its position on social issues on its physical products. Cheap? – This may actually weaken their stand on issues with the message: “change the world, buy shampoo. ” ØThe Body Shop Experience Each Body Shop location is meant to be different and unique. It is crafted to be calming and pleasing to the senses.

Changing? – With a visible move toward more corporate, universal store design, Body Shop locations may be losing their uniqueness. ØPLACEMENT: Trying to shift market placement from eccentric, small-production, all-natural brand to a mainstream, “masstige”, all-natural brand. ØStores – Stores are more inviting, more corporate. ØSimilar to Williams-Sonoma (no surprise, since Bellamy also sits on their board) ØProducts – Through packaging, they are attempting to shift their product to a “masstige” position. ØPackaging has come a long way from hospital urine sample jars. Oslash;The transformation is still not quite complete. The Body Shop’s Image does not quite match its pricing (see below) ØPROMOTION: Minimal advertising. Promotion is done primarily by ØSampling – In-store sampling for all products ØGifts – As with other cosmetic companies, they promote new products by giving away gifts with other purchases. ØPRICE: Price is average to high compared to competitors. Image needs to support the higher pricing. No longer offers multiple product sizes Customers forced to buy the more expensive, larger increment of the product.

This was one of Anita’s founding principles. Vanished. 1Finance ØGross profit increased by 3% to 240. 4 million in 2004 (2003: 234. 2 million) ØOperating profit for 2004 increased to 30. 3 million, up 25% (2003: 24. 3 million) ØExcellent performance from the Americas region (+110%) ØWorldwide retail sales were flat at 699. 5 million, comparable store sales down 4% ØProfit before tax of 28. 5 million, up 40% (2003: 20. 4million) ØEarnings per share for the 52 weeks to 28 February 2004 increased sharply to 10. 7p, up 53% (2003: 6. 8p). ØStable dividend of 5. p–same as last year. ØGlobal growth with over 2000 store in 50 countries Balance Sheet: See Next Page BALANCE SHEET GroupCompany 28 Feb 20041 Mar 200328 Feb 20041 Mar 2003 ₤m₤m₤m₤m Fixed Assets Intangible Assets31. 734. 70. 20. 2 Tangible Assets61. 967. 837. 236. 5 Investments6. 14. 102. 093. 2 99. 7107. 2139. 4129. 9 Current Assets Stocks52. 449. 137. 234. 5 Debtors: receivable within one year36. 236. 865. 864. 4 Debtors: receivable after more than one year5. 97. 14. 95. 9 42. 143. 970. 770. 3 Cash at bank and in hand17. 625. 96. 115. 6 112. 1118. 9114. 0120. 4

Creditors: amt falling due within one year(73. 0)(96. 9)(83. 0)(109. 9) Net current assets39. 122. 031. 010. 5 Total assets less current liabilities138. 8129. 2170. 4140. 4 Creditors: amt falling due after more than one year(0. 9)(1. 6)(0. 3)(0. 5) Provisions for liabilities and charges(2. 5)(1. 6)(3. 1)(1. 6) 135. 4126. 0167. 0138. 3 Capital and reserves Called up share capital10. 410. 210. 410. 2 Share premium account54. 752. 554. 752. 5 Profit and loss account70. 363. 3101. 975. 6 Shareholders’ funds – equity135. 4126. 0167. 0138. 3 2Research and Development Product R&D According to the Annual Report 2004: Our strategy is to move the brand to a ‘masstige’ positioning by developing innovative and credible products for our customers at affordable prices. Major developments during the year included two ingredient-led, technically advanced product ranges: a complete performance-driven Sun Care range that combines 100% mineral sunscreens with advanced antioxidant and moisturising benefits; and a new Hair Care range (containing six Community Trade ingredients, including beeswax and honey from Zambia, and sesame oil from Nicaragua) that has been expertly formulated to deliver outstanding results. New products are a necessity in this industry. Product R&D seems to be a priority for The Body Shop. New products are not always a success, though. The Body Shop’s make-up line was rolled out twice unsuccessfully. This may be due to The Body Shop’s focus on well-being and not beauty. Process R&D “The Body Shop At Home business, in which agents sell products directly through parties, saw sales growth of 28 per cent in the ten week Christmas period, with sales up 34 per cent for the year to date. ” Franchising and Company Stores were the The Body Shop Way for years.

The numbers show that the e-Commerce and the direct selling arms of the business are outperforming the traditional stores. Process R&D seems to be paying off for them. 3Operations and Logistics Operations is one area where The Body Shop’s “Social Custodian” attitude both hurts and helps them. The Body Shop’s Community Trade program contributes to the company’s image. By sourcing from third-world countries, they have a good image of helping underprivileged communities. (CI#4) While they do have a fairly spotless record in dealing with these communities, dealing with low-infrastructure suppliers presents potential logistics problems.

Using Zambian beeswax is admirable but risky if the Zambian government decides it does not want you doing business with its beeswax sector. Once more, putting core values above shareholder’s value is dangerous in a for-profit organization. (CI#3) 4Human Resource Management HRM at the Body Shop is largely above reproach. The question that nags, however, is: To what degree must employees subscribe to the company’s (Anita’s) social agendas? (CI#3) In the early days of the company, Anita personally interviewed and judged the worthiness of each franchise applicant.

The degree to which this attitude filters to the employee level will be discussed in the next section. 5Information Systems / Communication The Body Shop keeps abreast of technological advances in the retail industry, and has made wise use of technology to communicate with and educate its employees at all levels. By means of video releases, employees are trained in new product lines, company policies, and so forth. However, these videos often inform employees of “important” social issues. This raises a question. Are employees at the Body Shop required to be activists to work there?

Does the “education” amount to brainwashing? Apparently not. After speaking with Body Shop employees, it’s apparent that the company’s reputation on human, animal, and environmental issues attracts employees who have a strong social conscience as well. One employee said “I think it’s what sets us apart from other companies, is that you know where we stand. ” V. SWOT/TOWS ANALYSIS A. SWOT StrengthsWeaknesses 1. Strong view of the environment2. Increase in retail sales in US3. Focus on product development4. Great stand on social, political issues5. Reduced debt1.

Too much focus on personal beliefs and controversial subjects2. Puts social responsibility above shareholders value3. Brand Image lower than competitors OpportunitiesThreats 1. Attract more customers through its strong stands on human rights, animal testing etc. 2. Improve brand image and placement3. Good relationship with suppliers1. Losing sales at home2. Anita’s increasing activism B. TOWS ;SO (++) 1. Develop products appealing to a higher market segment (S3,O2 2. Continue to market on the green platform (S1, O1) ;ST (+-) 1. Realize that what works in the US may not work in the UK (S2, T1) 2.

Distance from Anita while continuing to focus on the environment (S1, T2) ;WO (+-) 1. Developing “Masstige” product placement will help put company on par with competitors (W3, O2) 2. Express more mainstream views of social topics to avoid alienating potential customers. (W1, O1) ;WT (–) 1. De-emphasize Core Values and Anita in favor of a profitable company. (W2, T2) VI. STRATEGIC ALTERNATIVES AND RECOMMENDED STRATEGY A. STRATEGIC ALTERNATIVES 1Turnaround With a move more toward a corporate image, the Body Shop could be heading for a complete change of image.

While maintaining all-natural and innovative status, they could start by putting shareholder value above saving the whales, so to speak. Use effective marketing strategies to correctly place the brand image as “masstige. ” Invest more in R for new products. PROS: ;Shedding the activist mask would

Cite this The Body Shop History

The Body Shop History. (2018, Aug 01). Retrieved from https://graduateway.com/the-body-shop-history/

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