A case study on Beauty Shop

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This is a practical slide that will help you to get a idea about the Beauty Shop.

Transcript of A case study on Beauty Shop

Team Name & Members

HOPELESS DREAMER

Md. Al AminMd. Arifin Faisal

Md. Mahmudul Hasan

The Body shop

FOUNDER OF BODY SHOP

Born in 1942United Kingdom

History

* In 1976, first shop open in UK

* In 1978, Anita begins licensing franchises

* In 1984, the Body Shop goes public

* In 1986, It sponsored posters for Greenpeace

* In 1990, the demand of Body Shop increased

* In 1990, The Body Shop established a charity funds

Case study Outline

• The brand• The product• Market analysis• SWOT• Goals / objectives • Strategic options• Choice for an option• Marketing mix

The brand

Founded in 1976 by Anita Roddick

Cosmetics shop

2 600 stores in 65 countries

Bought by L'Oreal

Product

Shea body butter

One of best seller of Body shop

PLC : maturity

Purchase decision category : emotion and high involvement

Product category: skin care

Core value

* Against Animal Testing

* Support Community Trade

* Activate Self – Esteem

* Defend Human Rights

The product

Shea body butter

advertising

Market : competition

3 types of competitorsThe beauty cosmetics

The bio cosmetics

The professional cosmetics

A very innovative market

Oligopolistic market

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

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

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

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

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

• 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

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

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

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.

Q &A

Session?