A case study on Beauty Shop
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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?