The Body Shop- Know Your Mind, Love Your Body!

We Are:

Student Names Roll Nos.Abhilash Varghese 1Aditya Rajagopalan 3Akshaya Iyer 102Anubha Garg 8Dhara Manek 7Gaurav Tyagi 32Kritika Prakash 48Meenakshi Chettiar 20 Nimisha Nair 85Parag Vad 118Vivek Sharma 107

Introduction

• The Body Shop founded by Late Dame Anita Roddick in the year 1976, is headquartered in Littlehampton, England.

• “The Body Shop International plc”, known famously as The Body Shop, has 2,400 stores in 61 countries, and is the second largest cosmetic franchise in the world.

• They were the first one to position themselves as a socially and environmentally conscious company.

• The Body Shop carries a wide range of products for the body, face, hair and home care.

• Currently, a 100 percent subsidiary of L’oreal group, it’s competitors include Sally Beauty Supply, Bath & Body Works and Sephora.

The Body Shop: Rise, Fall and RISE

• Body Shop had recorded a rapid growth during the 1970’s and saw the slump in 1990’s.

• Major Marketing Strategy - Using Social and Environmental issues.

• Claimed That No “Body Shop” products were tested on animals.

• US operations failed due to lack of sound marketing analysis. Lost £ 3.4 million.

• By the year 2000, it was sold off to L’oreal Group for £ 656

million.

Significant Issues

• Better start and Rapid growth in 1970 -80s. Why Body shop experienced bad times at the end of 1990s?

• How could the company be different than its competitors, when the competitors were following the same strategy?

Was Anita Right in ridiculing the marketing strategies?

• Initially marketing was not that important; going with the promotional approach was enough.

• Anita was able to convince people & build faith by sticking to its green strategy during its initial growth.

• After mid 80s, she was unable to identify the growing market trends & the change in perception of the customers.

• Lack of creating awareness by innovative marketing in the times when competition by similar players came into the picture.

Following above : To make customers aware that they still are the strongest

player & is not effected by competition.

Mistakes Made By Anita In Her Venture: Our Perspective!

• Anita was against marketing throughout the run of the company.

• Lack of understanding Market sentiments.

• Anita adopted a complete autocratic approach to running her organization.

• Not much efforts shown for : o New product development & refreshing its product rangeso Innovationo Reducing prices.

• Unable to track the strategies followed by its competitors.

Contd…

• “Body-Shop”: incompetent on various issues like :

• Corporate Governance.

• Relationship with Shareholders.

• Responsiveness to complaints of customers.

• Accuracy of promotional claims.

• Self-promotion instead of product promotion.

Anita’s Unique Positioning of the “Body-Shop” Identity

• Products were organic in nature.

• No testing on Animals or Live human subjects.

• Body-Shop Foundation promoted social and environmental issue.

• Key Issues Being:

Promoting Woman and civil rights. Pollution control .

Women opportunities. Energy Conservation.

Suggested Courses of action For US operations for “The Body Shop”

Comprehensive market research:

• Survey.

• Understanding Consumer needs.

• Test Marketing.

• Understanding and tracking competitors.

Joint Ventures and Franchising:

• Collaboration with existing retailers.