The bodyshopconsumerbehavior kyungheeuniv(korea 2014 prof moon #4)
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The bodyshopconsumerbehavior kyungheeuniv(korea 2014 prof moon #4)



This PPT is the result of Group #4 of 2014 consumer behavior class(Kyunghee Univ. Prof.Moon, Korea) ...

This PPT is the result of Group #4 of 2014 consumer behavior class(Kyunghee Univ. Prof.Moon, Korea)
It has contents of Thebodyshop' customer analysis.

Group #4 Member ; Shin ohseob, Kim yoojin, Kim mincheol, Choo wonhye, Lee sunwoo, Kim jongyoon.




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  • Hi, everyone. I am presenter of our team, group n4.d our team searched about cosmetic company, the body shop. <br /> <br /> Let me start it. <br /> <br /> <br />
  • before we enter, I need to explain why we choose thebodyshop. There are so many companies bigger than TBS. <br /> But TBS has something special. First, real purpose of them is not profit. They emphasize CSR. And second they do not advertise actively. <br /> They form brand image through ethical movements, make brand loyalty group and the group is increased. <br /> These 2 points ( purpose is not profit and they don’t ad. Actively) are the reasons why we, team n.4 choose TBS. FIRST, let me inform about the company. <br /> <br />
  • 더바디샵은 is natural cosmetics company which sell high quality products at the reasonable price.. The Body Shop was set up by entrepreneur Dame Anita Roddick. 로딕 was activist who opened first store in 1976, in 브라이튼, England . As a activist, she made natural soap, lotion and the like first using natural resources such as 알로에 베라, 호호바오일, 코코아버터. After that, 바디샵 is doing business with 5 values made by 로딕. <br /> <br />
  • The 5 values is this. <br /> Support Fair Trade (also called trade community), Against Animal Testing, Activate Self Esteem, Defend Human Rights, Protect the Planet. They actually progrssed animal rights movement and the AIDS prevention campaign, fair trade training programs and various social contribution activities
  • As u can see, they deny uniformed beauty. She is relatively fat but they are beautiful in itself. This picture is linked with third values. Activate self esteem. And when they manipulate, they don’t use animals, just artificial musk , and use Episkin’ for the test for animal protect.
  • this is Financial status of the bodyshop. Pars with a green color say that 60% of total expenses are associated with charity. <br /> . Indeed, the company with these purpose could be success? <br />
  • Surprisingly 더바디샵 has very strong loyalty customer group in which 83% of customers said that ‘I am willing to buy products considering environment.” <br /> According to report named <a>by Daniel and McManus(2010) , consumers prefer pay more for the charity-linked product due to the consumer feel they do help some poor people and join charity contribution. <br /> Actually the body shop is prospering. They are winner of the Retail Awards 2010 for “Most Admired Retailer of the Year,” The Body Shop now spans more than 2,800 stores in 60 countries, having more than 100,000 “Love Your Body™ card members”. It is one kind of membership card and as u can guess, repurchase rate is very high. <br /> I will tell u later the reason.
  • We will discuss about the 2 points. <br /> To The body shop, which has High Brand equity with High customer loyalty, what values and attitudes their customers have. <br /> And the circumstances that the values they pursue is no more limited to them, which means it is common values in many companies, <br /> How the bodyshop can solve these problems.
  • First analysis is of the attitude, perception, and motivation of customers. <br /> and we divided customers into 2 groups. Low / high effort customers.
  • Customer attitudes are very important at The Body Shop . A consumers attitudes are built up over a period of time, they are based on how a consumer perceives  the organisation., weather they have had positive or negative experiences <br /> The Body Shop sells products that are not tested against animals, fair traded and protects the planet.  Therefore consumers attitudes towards the company are positive. <br /> These attitudes are generated through personal experiences, word of mouth and celebrity endorsements.  All these effect the customers usage and purchase. For example, if it came out that certain products were tested on animals then consumers would reconsider going there to buy any more products and this means that people will also send bad messages out to other potential customers or existing customers. <br />
  • As The Body Shop have been doing campaigns for years, even before it was a major issue, they are perceived to a reliable company. <br /> The Body Shop is also perceived to be a natural company, according to there website they are involved in many different humanitarian acts. Stimuli used here at The Body Shop are things such as using natural colours when advertising such as green and natural yellows. By displaying these natural colours, consumers may be more inclined to buy the products which appear fresher and cleaner
  • Special offers in The Body Shop are a great way of getting customers to come into the shop to have a look and purchase, motivating offers include 50% all items and buy one get on free, etc.
  • <br /> All these three concepts link together to make consumer buyer behaviour. <br /> Attitude allows a person to have a feeling towards the company, this can either be positive or negative. The attitude then leads to how one perceives the brand to be and they feel that they are given value for money and are they satisfied with their purchase. All these factors help to form a perception. This finally leads to motivation , if they have a positive attitude and perception towards The Body Shop they are more likely to be motivated to repurchase, or even make a first time purchase. <br />
  • In common, there are 2 groups in customer. Low effort customers or high effort customers. <br /> Low effort customers have high brand loyalty. Because there are many rebuyers in TBS. and it is crucial experience or heuristics rather than simple mktg. <br /> And by Unconscious stimulus such as ad, naming mktg, or negative mktg, people make decisions briefly. there is less thinking to do and most purchases will occur with very little thought going in to the decision making process <br /> <br /> On the other hand, most High effort customers choose products after comparing many attributes, very Meticulously. <br /> And of course, they are effected by others evaluations and sometimes they influence decision making of others. <br /> <br /> <br /> 현재 화장품 규모시장은 굉장히 크고 매스 마켓이며, <br /> 굉장히 많은 기업들이 진출해 있고, 몇몇 기업이 큰 시장점유율을 가져가고 있습니다. <br /> 그래서 화장품업계에서는 굉장히 niche한 시장을 찾고 있고, 초niche한 시장이 주목 받고 있습니다. <br /> 더 바디샵은 천연주의를 시초로 1970~80년대에 굉장히 유니크한 시장을 개척하였고, 전 세계적으로 그 가치를 <br /> 꾸준히 실행하며, 여러 가지 가치캠페인을 통해 이미지를 유지하고 있습니다. <br />
  • In nature cosmetic product market, consumers tend to be repurchase product. Because importance of product is suitable for their skin. <br /> Initially it is hard to be loyal consumer, once being brand loyalty, The repurchase rate is very high. <br /> The Body Shop do not need to priorities marketing communications with low involved consumers as they are loyal and will also stay with the shop <br /> Especially, In The Body Shop, bestseller named White Musk has big brand loyalty. <br />
  • And in the low effort situations, Communication source plays a key role.. As u know, Through Physical attractiveness or celebrity we can create positive, good affective attitudes. <br /> Missah , the faceshop use very beautiful source in that sense. <br /> <br /> Not only using beauty, but also using humor, u can create these effect. For example… 김부성 is here maybe saying 의리. <br /> <br /> I think he is in all commercials.
  • The Body Shop does not aggressive advertising activities, but recently they used 현빈 to build up a positive attitude. In aspects of Source, TBS take healthy images from 현빈. According to Classical conditioning theory, looking at 현빈 can automatically arouse positive feelings. (because he is handsome and he finished military services.) <br /> And these good feelings spread out to the body shop. And finally, the bodyshop also can have natural and healthy beauty images.
  • And In Dual-mediation Hypothesis, Positive response to 현빈 or value campaign can influence Positive attitude toward Ad of TBS. <br /> It also affect to Belief about TBS in natural cosmetic product or Positive attitude Toward The Body Shop <br /> and all of these process are linked to Intention to purchase
  • Now we will deal High effort consumer. They have relatively low brand loyalty. It make sense. Because when consumers have high brand loyalty, they should be low effort groups. <br /> Anyway, to catch High effort consumer, TBS provides many benefits. For example, membershipcard , community participation, etc. <br /> <br /> <br /> Also basically by providing good quality can be effective. Becuz consumers might compare many attributes by divers model.
  • <br /> <br /> Strategy to catch high effort consumers can be explained by Equity Theory , providing them with discount through the price deal or sampling is a great way to make them feel like they are getting a good deal. And they evaluate the products and post it on the internet. It makes other person purchase the goods.
  • Yet a major problem still exists. We thought about the problem and solution.
  • Although the Bodyshop was the trust brand to carry all natural body care products, it has somehow lost its leadership in this green trend <br /> Past, there are few companies to do not test on animals, but now, many companies are not only tested on animals, but also do CSR. <br /> By reestablishing the fact that The Body Shop was the first store to carry all natural bodycare products is important in creating new brand loyalty. There is something about history and tradition that can be appealing to many consumers. <br /> BuyingatTheBodyShopmeansthattheconsumersarebecomingpartoftheverythe first movement that is still continuing to make waves in society and make groundbreaking history through unique campaigns. This is something that no other competitor has to offer as there is only one true original leader
  • Brand image : not only emphasize images that doing not test on animals. But also stress fragrance they have which is made artifically. <br /> Promotion : simply buy 2 get one free promotion may seem lower quality products. So combining promotions with animals day, or earth day could be evoke more green brand image. <br /> Products : don’t highlight just one products. They should inform about diverse lines of products.
  • And second limitation is that they are acquried by loreal in 2006. there are possibility that image of TBS would be deterioted. <br /> <br /> To protect brand image of the face shop, they do no direct intervention to TBS . <br /> AND It is not about acquisition, actually it is about shareholder. <br /> So current situations, this problem are not matter. <br /> <br /> <br /> The Body Shop will continue to business to draw up the positive change in managerial conditions.
  • Thank you and is there any questions or comments? Everything would be fine.

The bodyshopconsumerbehavior kyungheeuniv(korea 2014 prof moon #4) The bodyshopconsumerbehavior kyungheeuniv(korea 2014 prof moon #4) Presentation Transcript

  • Consumer behavior 4th Team 1
  • Why The Body Shop 1. Goal is not profit 2. They do not advertise actively 2
  • Natural cosmetice company - High Quality Cosmetics - Reasonable Price England Brighton in 1976 Soap, lotion from Natural Resources Eco-friendly Products 2800 branches (66 countries) L'oréal buyout in 2006 Anita Roddick (1942. 10~2007. 9) The Body Shop 3
  • Support Fair Trade (community) Against Animal Testing Protect the Planet Activate Self Esteem Defend Human Rights Five Values 4
  • What TBS do Using ‘Episkin’ for the test Using synthetic musk Various Value camp aign 5
  • Financial Statements (2013) Statement of financial activities Total funds 2013 VOLUNTARY INCOME £ 759,123.00 ACTIVITIES FOR GENERATING FUNDS MERCHANDISING INCOME £ 633,164.00 INVESTMENT INCOME £ 496.00 TOTAL INCOMING RESOURCES £ 1,392,783.00 RESOURCES EXPENDED COSTS OF GENERATING FUNDS FUNDRAISING COSTS/AWARENESS RAISING £ 110,644.00 MERCHANDISING COSTS £ 394,742.00 £ 505,386.00 CHARITABLE EXPENDITURE HUMAN RIGHTS £ 368,190.00 ANIMAL & ENVIRONMENTAL PROTECTION £ 306,630.00 GOVERNANCE COSTS £ 67,440.00 £ 742,260.00 (60% of Total resources expended) TOTAL RESOURCES EXPENDED £ 1,247,646.00 NET INCOMING RESOURCES FOR THE YEAR £ 145,137.00 FUND BALANCES BROUGHT FORWARD AT 1 MARCH 2012 £ 501,020.00 FUND BALANCES CARRIED FORWARD AT 28 FEBURARY 2013 £ 646,157.00 THEBODYSHOP Balance sheet 2013 Fixed asset tangible asset £ 5,714.00 Current assets Debtor £ 210,987.00 Cash at bank and in hand £ 560,800.00 £ 771,787.00 Creditors : Amount falling due within on year -£ 94,144.00 Net current assets £ 677,643.00 Total asset less current liabilities £ 683,357.00 Creditors : Amount falling due after more than one year -£ 37,200.00 Total assets £ 646,157.00 Funds Designated £ 266.00 Unrestricted £ 496,724.00 £ 496,990.00 restricted £ 149,167.00 Total funds £ 646,157.00 6
  • Why THEBODYSHOP High Brand equity with High customer loyalty We want to know what TBS’ customer have values and a ttitudes. We thought about that TBS’ values are no more niche, So How TBS can solve this situation. 8
  • Consumer Analysis 1) Attitude, Perception, 2) Motivation 3) Low& High effort 9
  • Attitude Understanding why the consumer feels the way they feel. Our products within the company and how consumer attitudes can be changed. Influence Attitude are built up over a period of time 10
  • Perception Displaying these natural color s →Appear fresher and cleaner 11
  • Motivation 12
  • Attitude, Perception, Motivation Attitudes Motivation Perception Purchase/ repurchase Have feeling toward the company positively / negatively 13
  • Market Consumer Categorize Low effort • Brand loyalty • Experience • Unconscious stimuli High effort • Product attributes • Others evaluation 14
  • In nature cosmetic product market, consumers tend to be repurchase product. Because importance of product is suitable for their skin. Initially it is hard to be loyal consumer, once being brand loyalty, The repurchase rate is very high. In The Body Shop, bestseller named White Musk has big brand loyalty. Low effort 15
  • MISSHA INNISFREE THEFACESHOP Communication sourc e INNISFREE Low effort 16
  • Classical conditioning Paired Natural and Healthy Beauty (UCS,CS) UCS CS Low effort 17
  • Dual-mediation Hypothesis Positive response to 현빈 or value campaign Belief about TBS in natural cosmetic product. Positive attitude toward Ad of TBS Positive attitude Toward The Body Shop Intention to purchase Low effort 18
  • High effort consumer How TheBodyShop communicates with high effort consumers Love Your Body Membership TheBodyShop community (Korea) Good Quality 19
  • High effort consumer – Equity Theory Benefits Attributes Customers $ Purchase Review Discount Sale Sa mple Other Consumers Good deal Exposure 20
  • Limitation and Solution 21
  • The Body Shop Loss its key st rength → To stress position of market leader & use advertisement actively LIMITATIONS (1) 22
  • LIMITATIONS (2) acquired By L’oreal in 2006 Image deterioration No direct intervention & Shareholder, not acquisition. 24
  • Q&A 25