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

Page 1: A case study on Beauty Shop
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Team Name & Members

HOPELESS DREAMER

Md. Al AminMd. Arifin Faisal

Md. Mahmudul Hasan

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The Body shop

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FOUNDER OF BODY SHOP

Born in 1942United Kingdom

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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

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Case study Outline

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

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The brand

Founded in 1976 by Anita Roddick

Cosmetics shop

2 600 stores in 65 countries

Bought by L'Oreal

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Product

Shea body butter

One of best seller of Body shop

PLC : maturity

Purchase decision category : emotion and high involvement

Product category: skin care

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Core value

* Against Animal Testing

* Support Community Trade

* Activate Self – Esteem

* Defend Human Rights

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The product

Shea body butter

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advertising

Market : competition

3 types of competitorsThe beauty cosmetics

The bio cosmetics

The professional cosmetics

A very innovative market

Oligopolistic market

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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

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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

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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

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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

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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

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• 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

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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

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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

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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.

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Q &A

Session?

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