THE BODY SHOP

Beauty Products Inspired by Nature and Ethically Made

Section FSNEHA RAMAKRISHNAN

• “The business of business should not just be about money, it should be about responsibility. It should be about public good, not private greed.”Dame Anita Roddick. Human Rights Activist.

• We believe there is only one way to beautiful, nature’s way. We’ve believed this for years and still do. We constantly seek out wonderful natural ingredients from all four corners of the globe, and we bring you products bursting with effectiveness to enhance your natural beauty and express your unique personality. And whilst we’re doing this, we always strive to protect this beautiful planet and the people who depend on it. We don’t do it this way because it’s fashionable. We do it because, to us, it’s the only way.

SWOT ANALYSISInternal factors:

Strengths:•Brand (name, image, ethics, values , natural ingredients)•Experience, financial backing and expertise of L'Oreal Weaknesses:•Loss of trust from different stakeholders in the supply chain (publications in press)•Number of stores in the UK

SWOT ANALYSIS

External factors:Opportunities:•Increased interest of men in their appearance(The ‘Metrosexual’ factor)Threats:•Slower distribution (because of the chemical legislation)•Unstable supplies of ingredients, materials and products.

MARKET SEGMENTATION

WOMEN

• From 20 to 40 years old

• Working

• Taking care of herself

• Aware of economical and social aspects

MEN

• From 20-35 years old

• Income - £ 25 000 – 55 000

• Lifestyle – urban cosmopolitan men

TARGET MARKET• Men: - Advertise in GQ and similar periodicals targeted to the same

demographic (monthly) • Targeted on-line marketing campaign Google Ads (12 months)• Promotion on sites used heavily by the target segment (12 months)• Women: - In-store – up and cross-sell. • Flyers and targeted advertising to existing customer base (12

months). • Presents/gifts(4 times a year)

MARKETING STRAREGIES• Reinvent the design of products and shops in order to make them younger and more attracting• To make people forget that it is a subsidiary brand of L’Oréal• New positioning: “Haut de gamme” brand with average price

4 P’s OF MARKETING

• Product Organically grown body product Short durability Relatively low price• Price Medium price Affordable product

MARKETING PROGRAMS• Place B2C related Direct target: consumers Mix between intensive and selective distribution Shops are run on a franchising basis• Promotion Against promotion Own website Products are organically grown The Body Shop is against animal testing

OBJECTIVE

OBJECTIVE:• To achieve the sales growth of 2% in the face of economic

recession in the next 12months• Review and refresh product portfolio to ensure at least 30% of the

target demographic indicates likelihood to buy, as measured by focus-group product trials, by the end of 2009.

• Total adult males 20-35 = 6.6 million (ONS)• Percentage of adult males in AB grade = 28 % (Mintel)• Therefore Segment size = 1.86 million• 30% is 558 000

OBJECTIVE

• Promote awareness of the Body Shop core brand and specific men’s grooming product offerings through targeted channels such that at least 35% of the target demographic is aware of the products and the unique values of the Body Shop, as measured by market research, by the end of 2009. (35% is 651 000)

• Build loyalty to brand products so that at least10% of the target demographic becomes repeat buyers, as measured by market research, by the end of 2009. (10% is 186 000)

FINANCIAL OBJECTIVES• By September 2008 total retail sales increased by 5%• Reports modest growth in sales till 2012• To achieve the sales growth of 2% in the face of economic recession

in the next 12months• Build loyalty to brand products so that at least10% of the target demographic becomes repeat buyers, as measured by market research, by the end of 2009.

THANK YOU