The Body Shop was founded in 1976 by Anita Roddick in the UK. It sells cosmetics and skin care products. One of its best-selling products is Shea body butter. The Body Shop's target market includes women aged 20-40 who care about the environment and fair trade. It positions itself as an eco-friendly brand compared to competitors like L'Oreal and Nivea. A SWOT analysis identifies its strengths as its brand reputation and niche market leadership, while weaknesses include a small number of stores and mature products. Goals are to refresh its image, expand its target market and reinforce its environmental policies. The strategic option is to reinvent products and shops to attract younger customers while keeping its eco

2. Team Name & Members

4. FOUNDER OF BODY SHOP
Born in 1942
United Kingdom

5. History

6. Case study Outline
• The brand
• The product
• Market analysis
• SWOT
• Goals / objectives
• Strategic options
• Choice for an option
• Marketing mix

7. The brand
Founded in 1976 by Anita Roddick
Cosmetics shop
2 600 stores in 65 countries
Bought by L'Oreal

8. Product
Shea body butter
One of best seller of Body shop
PLC : maturity
Purchase decision category : emotion
and high involvement
Product category: skin care

10. The product
Shea body
butter

11. advertising
Market : competition
3 types of competitors
The beauty cosmetics
The bio cosmetics
The professional cosmetics
A very innovative market
Oligopolistic market

12. 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

13. Positioning
The Body Shop L’Oréal Olay& Nivea
Product line Mainly skincare Broad Focus on skincare
Market position Environment
friendly
Leader Major competitor in
skin & body care
market
Competitive
advantage
Natural-based
and brand value
Very experienced
global brand
Low price and
product innovation
Price range Mid range Slightly lower than
the Body Shop
Mid low

14. Consumer insight
Eco investment
– Biodegradable
– Waste limitation
– Protect water resources
Motivation for choosing this product
– A trendy brand
– The best ingredient for moisturizing
– Fair trade with a women association in Ghana
– Helps education

15. SWOT Analysis
• STRENGTHS
• The brand itself
• Being part of the L'Oreal group
• Leading player in a niche
market
• High brand loyalty
• Innovative products
• Good quality and services
• WEAKNESSES
• Loss of trust from different
stakeholders
• Small number of stores in UK
• Problems in franchise system
• Many products are in the
mature or declining stage
• No marketing or advertising
department

16. SWOT Analysis
• OPPORTUNITIES
• Metrosexual factor
• Crisis
• Increased awareness
of organic and eco-
friendly product
• Increasing number of
online buyers
• Ageing population
• Ban of sale of animal
tested products in EU
• THREATS
• Chemical legislation
• Unstable supplies of raw
materials
• Legislation banning
animal tested products
• Strong competition
• Suppliers are not
required to adhere to
ecological standards
• No environmental
certification

17. • Create a marketing department which will:
– Develops the visibility of the brand
– Communicates about the non animal testing
policy
– Refreshes the image of the brand to:
• Wider the target : men/young men/ mature women
• Reinforce environmental policies by :
– Working only with eco-friendly suppliers
– Obtaining environmental certification
Goals and objectives

18. Our strategic option
Reinvent the design of products and shops in
order to make them
younger
more attracting
“Haut de gamme” brand with average price
New range of products « Nature’s way to
beautiful »
Keep their identity even if they were bought by
L’Oreal in 2006

19. Marketing mix
Product
• Shea body
butter
• Made of oil
and organic
sugar
• Organically
grown body
product
• Short
durability
• Relatively low
price
Price
• 15 €
• Medium price
• Affordable
product
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

20. Why this offer?
Create more brand
awareness;
Increase our direct
purchases and
revenues;
Reward guest loyalty;
Attract new segments
of customers;
Enhance customer
service experience.