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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.