Marketing Management

Lecturer:Mr. Liam McCormick

TeamYixuan Wang (AMY)

Zhuoqin Ye (ANGEL)

CONTENTS

Company Introduction

Market Summary

Competitive Analysis

SWOT Analysis

The Body Shop Strategy

Recommendation

Company Introduction

The Body Shop 2085 retail stores 54 countries 600 products 400 accessories Sells a product every four second Second most trusted brand in UK 28th top brand in U.S 27th most respect in the world

Company Introduction

The Body Shop’s Values

Against animal testing Support community trade Activate self esteem Defend human right Protect our planet

Marketing Summary

Market SegmentationThe Body Shop operates in four regions Americas Asia Pacific Europe, Middle East & Africa UK & Republic of Ireland

Market Summary

Target Market The Body Shop has different target market in different

regions where it does business.

Target Market

In Americas, target markets also include 18-35 years-old women with rather high education, who would like to participate in environmental conservation.

In the UK market, Body Shop wants to attract customers aged 20-30 and is focusing its efforts on eight cities: Newcastle, Manchester, Leeds, Birmingham, Cardiff, Liverpool, London and Bristol.

In Canada for example, the target market is married, university educated, professional women, aged 31-45 with a family.

Market Summary

Market Positioning

Market Positioning

Young Women: colour cosmetics

Middle age female group: skin care products, protection and maintain youth.

Men: men’s grooming products (shave cream and deodorants)

Global Market

Increasing growth natural cosmetics( example, French) The Body Shop had strong global sales performance i

n 2005: total +7%, compare to 2004. Product price: An increasing number of customers do

not see cosmetic products as luxuries and therefore demand cheaper products.

Customization

The Body Shop's Invent Your Scent gives scope to consumers to create their own individual scent

Global Market

Convenience Trend: portability

--All-in-one brow care (Estee Lauder)

Growing number of ethnic consumers

Growing awareness of personal well-being

UK Market

People are becoming more educated, and therefore concerned about what skincare & beauty products they use to maintain their health & well-being.

Seeking a natural, clean alternative and precautionary principle, without the use of GM & not tested on animals

The ‘Beckham effect’, the market for men’s

products has seen a significant growth

Northern Ireland Market

Increasing women employment--Increasing by 0.9%

Support of environmental benefits through purchase.

--The most ethically aware area

The Future Development

The Body Shop agreed a £652m sale to L’Oreal last month.

Stock is increasing since sold to L’Oreal Becomes part of the L’Oreal empire The Body Shop will remain an independent outfit and

continue to champion environmental and ethical causes.

COMPETITIVE ANALYSIS Market Overview

Competitor Analysis

The Body Shop

L’Oreal Olay&Nivea

Product line Mainly skincare

Broad Focus on skincare

Marketposition

Environmental friendly

leader Major competitor in skin & body care market

Competitiveadvantages

Natural-based & brand value

Rich experiences Globe brand

Low price & product innovation

Price

range

Mid range Slightly low than the Body Shop

Mid-low

COMPETITIVE ANALYSISCompetitive environment

-Threat of new entrants: Skincare (Relatively high) Hair care (Relatively high) Make- up (High)

-Threat of substitutes: Relatively low – increasing popularity of plant ingredients within cosmetics and toiletries market

-The power of buyers: High – Dual distribution with multi- channel strategy

-The power of suppliers: Relatively high – using supply chain management

-Competitive Rivalry: high

SWOT ANALYSISThreats

Suppliers are not required to adhere to ecological standards

Environmental management system is not certified to an official standard (e.g. ISO 14001)

No marketing department and no advertising department

Opportunities

People become mature in their early ages.

Growth in men’s skin care products

Consumer preferences for plant ingredients

Environmental responsibility is regulated throughout the company

Purchased by L’Oreal for ￡ 652 million

SWOT ANALYSISStrengths

Innovation products High branding loyal Successful leadership

skills Experienced executive

management team Good quality and

services

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.

STRATEGY

Product

Brand Repositioning Product innovation

- The recent successes

Spa wisdom range Passion fruit bath and Body range Seasonal make-up collections capitalizing on fashion

trend Seasonal home fragrance oils and burner collections

STRATEGY

Product

Future New Product Development - Strong pipeline of new product innovation in 2007

Make-up Bath & Body Fragrance Skincare - Focus on innovation and building on heritage ranges

Packaging

STRATEGY-Pricing

Shin care Make-up Hair

Line-Mix

Prining

High

Low

Nivea

(P&G)

OLAY

(Beiersdorf)

L’oreal

The Body Shop

Vichy(L’oreal)

Clinique (Estee Lauder)

L’oreal

The Body Shop

MID-RANGE

Maybelline

(L’Oreal)

STRATEGY

Promotion

Public Relations

Inform the public and customers

Love Your Body

STRATEGYPlace (Distribution) Dual Distribution

The multi-channel strategy• The Body Shop At home• A new e-commerce channel• Franchised outlets• Company-owned stores

The Body Shop – Company-owned Stores

The Body Shop Customers

Franchisees

Customers

Recommendation

Product: Launch Children Products

Convenient Products

Distribution Adopt to competition by expanding into new markets.

(China Market)

Thank you for your attention

Any questions?