STRATEGIC MARKETING MANAGEMENT
Assignment: Marketing Plan - The Body Shop, UK.
Course: DMS/GROUP A
Date: 30/05/2010
Lecturer: Mr. John Heather
By: Ashley Pereira
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Contents:-
1. Company Background.................................................................................................5
2. Situation analysis..........................................................................................................5
3. External analysis...........................................................................................................6
a) Political factors
b) Economical factors
c) Social factors
d) Technological factors
e) Environmental factors
f) Legal factors
4. External Analysis- Micro Environment.......................................................................12
4.1) Industrial Analysis
a) Threats of new entrance
b) Threats of substitute products
c) Bargaining power of customer
d) Bargaining power of supplier
e) Competitors
5. Market Segmentation...................................................................................................19
a) Consumer market
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b) Products
c) Competitors
d) Brands
6. Internal Analysis........................................................................................................21
6.1) Resources analysis..............................................................................................21
a) Physical Resources
b) Financial Resources
c) Human Resources
d) Intangibles
6.2) Competences and capabilities
a) Market
b) Materials
c) Men
d) Money
e) Machines
7. S.W.O.T Analysis.......................................................................................................24
8. Marketing Plan............................................................................................................26
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8.1) Objectives
8.2) Strategies
8.3) Gap Analysis
8.4) Generic Strategy
8.5) Ansoff’s Matrix
8.6) Competitor Marketing Strategy
8.7) Market Positioning Strategy
8.8) Institutional Strategy
8.9) Implementation Plans........................................................................................29
a) Product
b) Price
c) Place
d) Promotion
e) People
f) Process
g) Physical Evidence
9. Budget Breakdown...............................................................................................30
10. Monitoring and Control.........................................................................................31
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10. Appendix...............................................................................................................32
11. References.............................................................................................................43
1. Company Background
1.1 Mission Statement
To dedicate the business to the pursuit of social and environmental change.
Creatively balance the financial and human needs of the stakeholders:
employees, customers, franchisees, suppliers and shareholders.
Ensure that the business is ecologically sustainable, meeting the needs of the
present without compromising the future.
Meaningfully contribute to the local, national and the international
communities by adopting code of conduct which ensures care, honesty,
fairness and respect.
Campaign for the protection of the environment, to defend human rights and
against animal testing within the cosmetic industry. (Value Report, 2009 -
2010)
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Organizational Structure
The Body Shop has a hierarchical structure. They have departmental heads spread all
over the world. The Body Shop encourages open-door policy and two-way
communication within the company. They have a strong belief in the company values
which creates a bound between the employees. (Our People, 2009-2010)
1.2 Product/Market Range
Products: Facial skin care products, make-ups, bath & body products, hair products
and fragrance products.
Market: Western Europe, North America, Asia, Eastern Europe, Latin America,
Africa, Orient and Pacific.
1.3 Customer Target
Professional stylists, non-professional stylists, these mainly include females clients.
1.6 Financial Profile
Since June 2006, The Body Shop is wholly owned by L’Oreal therefore it is no longer
a listed company. (About Us, 2009-2010)
Volume sales of The Body Shop in 2009: 726 million units.
Total sales L’Oreal by division in 2009: 16,257 million units.
Net Profit of The Body Shop in 2009: €54 million, weight 2.1%, growth based
on published sales +48.4%, percentage of sales 7.4%. (Annual Report, 2009-
2010)
2. Situation Analysis
According to Blythe (2005) Marketing Audit is a reassessment of the firm’s current
objectives, strategies, organization, company performance and activities. The main
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objective of this analysis is to highlight the strengths and weaknesses of the company,
so that they can be improved for the future.
The marketing audit is a summary of what is happening in the company at present,
hence this type of analysis have to be carried out on a regular basis, taking into
consideration about the time and money that can be invested by the company.
3. External Analysis/Marco Environment
The macro environment includes major forces, the environmental factors that have
an impact on the organisation on a varying scale (Jonhson, Scholes, & Whittington,
2008). The main element of macro environmental is the PESTEL framework which
identifies the major drivers of change. The macro environments affecting the core
business of the organization are identified below:
a) Political Factors
FACTORS IMPACT ON COSMETIC
INDUSTRY
IMPLICATIONS
Terrorism Restriction to carry personal
care and fragrance products in
handbags when travelling
abroad. (Decision News
Media SAS, 2000-2010)
Significant impact on
the sales of the
cosmetic retail stores
at the airport and the
high streets.
E-commerce UK industry and government
backed trust mark schemes.
(Cosmetic announces, 2009)
Growing number of
demand for online
products and lose of
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loyal customers.
Employment Due to the recession
businesses find in difficult to
survive in the market.
Jobless number
outgrows positions
available.
Conclusion: An opportunity arises on expanding an online purchase service for
customers. Threats to the industry arise from the unstable economic and security
environment where a contraction in demand is visible.
b) Economical Factors
FACTORS EFFECT ON COSMETIC
INDUSTRY
IMPLICATION
Exchange rates Fluctuation in the exchange
rate against the pound and in
countries that supply the
companies with raw
materials. (Wearden, 2009)
Raise the cost of
import of raw
materials or finish
products from the rest
of the world.
Increase in VAT UK’s new chancellor George
Osborne announced on 21st
May 2010, the hike on tax to
20% by next April. (Clark,
2010)
This will increase the
price of daily
commodities which
would lead to restrict
customers to buy
cosmetics.
Direct selling Allows customers to buy
products outside the
traditional retail enterprise.
(Dsa, 2009-2010)
Better customer
relationship, firms can
keep the cost low and
avoids expenditures on
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product promotion.
High unit labour cost High labour cost in UK has
left a gap in productivity as
compared to the counter parts
like America and Japan.
(Mail Online, 2010)
Company strategies
cannot be pursued to
the fullest extent.
Oil Prices Increase in oil prices. (Mail
Online, 2009)
Can affect promotion,
sale and distribution as
well as demand and
purchasing power.
Conclusion: Due to the recession profits of the company can be affected, as the
demand for the product will reduce and due to changes in the exchange rates which
could affect product manufacturing.
c) Social Factors
FACTOR EFFECT ON THE
COSMETIC INDUSTRY
IMPLICATION
Demographics According to the Office for
National Statistic in April
2010, the percentage of British
public aged from 65-85 is
growing and as of now the
figure shows a growth of 1.5
million. (McCraddie, 2010)
Increase in the sales of
the anti-aging
products.
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Cultural Changes Use of natural ingredients in
the manufacturing of
cosmetics by some firms.
Changing behaviour of
the customer towards
the natural product.
Cosmetic Testing Companies using animals for
their product testing. (Silva,
2002)
Affects brand image.
UK cosmetic industry
risk to tiger forests.
UK’s cosmetic industries are
buying product made out of
talc from illegal and
destructive mines from
wildlife in India.
(Environmental Investigation
Industry, 2003)
Affect brand image.
London Olympics 2012. Increased number of tourists
in the country.
Opportunity for
promotion and increase
awareness.
Conclusion: Diversification of culture that changes the buying power of the
customer will affect greatly the company, which will depend on factors like
promotion, value and ethics.
d) Technological Factors
FACTORS EFFECT ON COSMETIC
INDUSTRY
IMPLICATION
Research & Development Cosmetic companies invest a
lot on R&D so that they can
develop new products to suite
the changing trends of the
Brand recognition.
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customer. (Global Insight,
2007)
Pulse perfection US based companies have
developed automated mascara
that coats lashes evenly.
(L'Oreal, 2010)
Competitive
advantage.
Roll on true match Cosmetic company has
developed a roll on technique
to spread the foundation
evenly on the face. (L'Oreal,
2010)
More options for the
customers.
Multi- purpose products Development of products such
as two-in-one face wash,
shampoo with conditioner.
(L'Oreal, 2010)
Customers looking for
consolidating the
beauty budget.
E-commerce Secure methods of payment
with security code or
password. (London Borough
Of Richmond Upon Thames,
2009-2010)
Working clients
buying more and more
products online.
Conclusion: Competitive advantage may be achieved and growth in the market.
e) Environmental Factors
FACTORS EFFECT ON
COSMETIC INDUSTRY
IMPLICATION
Natural Products Growing trends of
environmentally friendly
Benefits the companies that
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products. offer such products.
Environmental
Pollution.
Government to cut carbon
emissions. (Harvey, 2010)
It will be a necessity for
companies to follow
regulations.
Conclusion: Companies that are not socially and environmentally conscious will be
affected in its performance and reputation.
f) Legal Factors
FACTORS EFFECT ON COSMETIC
INDUSTRY
IMPLICATION
Certificate standards for
cosmetic products.
ISO 22716 safety standard
certificates published on 15th
February 2010 provides
resources to organisations to
select their specifications.
(Cosmetic Design, 2010)
Builds confidence in
customers and makes the
organization keen on
supporting their business at
domestic and international
level.
International Trade
Policy.
Companies import all its
products from overseas any
changes will have an effect
on cost.
The company has made
strategic plans to look for
alternative sources of supply.
Conclusion: Companies has to abide by the rules and regulations set by government.
4. External Analysis/Micro Environment
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These are the internal factors of the company that has direct impact on the
organisations strategy. They include customers, employees, suppliers, shareholders,
media and competitors.
There are three factors to be looked upon while carrying out the analysis, credible
alternative future, improving the organisational learning and evaluating and
developing strategies for each situation. (Jonhson, Scholes, & Whittington, 2008)
To analyse the company, it should be considered Porter’s five forces.
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Source: (Jonhson, Scholes, & Whittington, 2008)
a) Threats of New Entrants
FACTORS LEVEL OF THREAT IMPLICATION
Scale and experience Low Products of The Body
Shop are natural unlike
other cosmetics. They are
aware of the resources
available for their
products. New companies
try to copy but will take
them a considerable
amount of time and
money.
Capital Required Low The capital required to set
up a business like Body
Shop is of great scale.
Access to supply or
distribution channel.
Medium Each of the cosmetic
products is different
depending on the brands in
store. But for companies
like The Body shop there
is less possibility to mix
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them with other brands.
Product Differentiation High Cosmetic products are
unique in their brand name
but, they can be more
appealing by promotion.
Switching Cost Low Cost will differ according
to the brand name, if there
is a niche market than
there won’t be any new
entrant in the market.
Brand Identity Low The Body Shop has been
established since 1976 in
UK and since then has
expanded with strong core
values of natural products.
Cost Advantage Low Different skills and
methods of production
have given The Body Shop
an edge over the other
competitors. Hence can set
its price.
Conclusion: Looking at the factors above the possibility of a new entrant entering in
this industry is fairing weak.
b) Threats of Substitute Products
FACTORS LEVEL OF THREAT IMPLICATION
Price and performance Medium Substitutes can offer the
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ratio similar product for the
same or higher price. The
difference depends upon
the performance advantage
the customer’s value.
Extra industry effect Low Managers of the company
should look outside their
own industry to look for
threats, but in case of The
Body Shop its less.
Substitute products Medium Inexistence of substitutes.
Conclusion: As there are no substitute for each brand of cosmetic product the threat
of substitutes is weak.
c) The Power of Buyer
FACTORS LEVEL OF THREAT IMPLICATION
Concentrated Buyer Medium Buyer power increases if
there are large retailers
having different brands
under one roof. Different
to The Body Shop as they
have their own stores.
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Low Switching Cost High As buyers can easily
switch between suppliers
for a competitive price.
Buyer Competition Threat Medium Cosmetic companies
supply to their large retail
buyers like Boots so the
possibility of setting up
their own supply chain
direct to the customers is
low, with certain
exceptions.
Conclusion: Looking at the above analysis buyer power is considerably at an
average.
d) The Power of Supplier
FACTORS LEVEL OF THREAT IMPLICATION
Concentrated Supplier High Suppliers have to face the
competitors in the market
where all the brands are
sold by one large retailer.
High Switching Cost Medium Buyers have the power to
negotiate the deals with the
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supplier as there are a lot
of brands in the cosmetic
industry.
Supplier Competition
Threat
Low Due to e-commerce the
customers can directly buy
the products from the main
supply of the company.
Conclusion: Supplier power is relatively low in this case as buyers have a wider
range of options.
e) Competitive Rivalry
FACTORS LEVEL OF THREAT IMPLICATION
Competitive Balance High There is average growth in
the cosmetic market and
there is a lot of
competition among the big
players.
Industry Growth Rate High Due to stiff competition
among cosmetic brands
there is a risk of altering
the price of the products.
Exit Barrier High Exit barrier for big players
in the cosmetic industry is
high, as they are lack of
alternative. More use of
the assets.
High Fixed Cost Medium High cost in importing raw
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materials from other
countries with the import
duties. Have to keep the
cost high to cover up the
expenditure.
Low Differentiation High Similar products available
in the market influence the
customer not to be loyal to
one particular brand.
Conclusion: The competitive rivalry within the cosmetic industry is strong as there is
no great product differentiation in terms of cost, quality, performance and variety.
Thus the exit barrier is very high.
Taking into consideration the above analysis the cosmetic industry can be rated at ** out
of five industry. It is a great market for The Body Shop to operate in as the changing
trends and shifting attitude of the customer to move on to natural and environmental
friendly products is growing in the industry.
5) Market Segmentation
A market segmentation table of the company can be found on Appendix 4
a) Customer Market
The Body Shop creates a product differentiation market, its customer’s are
usually single females from the age group of mid twenty’s or early forties
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professionals with good qualification and a focus on environmental issues. It
also targets men but is not as expanded.
So they have to increase the promotion of male products.
b) Products
The Body Shop has environmentally friendly products that are made up natural
ingredients. The Body Shop deals with the following products:
Facial skin care products.
Make-up.
Bath & Body products.
Hair Products.
Fragrances.
Accessories.
c) Competitor Analysis
Being a cosmetic company The Body Shop has a range of competitors, but by
analysing the Perceptual Map the competition between product with high quality and
low price is relatively high. In this case companies reinforce in their customers with
brand ethics and values.
The Perceptual Map.
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High Quality
High Price Low Price
Low Quality
Source: (Lamb, Hair, & C, 2008)
d) Brand
The Body Shop from the beginning focused on environmentally friendly products,
which created a brand image about the product among the customer who really care
about the environment. The Body Shop also gives the customers an exceptional
experience in store with their personal care products. (The Body Shop, 2009 - 2010)
The Body Shop did not use animals for testing their products and they believed in
fair trading which helps the people to earn their daily income which will enable them
to create a better future.
6) Internal Analysis
6.1 Resource Audit
a) Physical Resources
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Resources are sourced from the Body Shop community trade programme
which includes olive, soya, cocoa, sugar and sesame from parts of Brazil to
Samoa, Daabon in Colombia.
Community Trade now works with over 30 suppliers in more than 20
countries.
2500 stores in 60 countries around the world.
b) Financial Resources
Since June 2006, The Body Shop is wholly owned by L’Oreal therefore it is no
longer a listed company. (The Body Shop (2009 – 2010)
Volume sales of The Body Shop in 2009: 726 million units.
Total sales L’Oreal by division in 2009: 16,257 million units.
Net Profit of The Body Shop in 2009: €54 million, weight 2.1%, growth based
on published sales +48.4%, percentage of sales 7.4%. (Annual Report, 2009-
2010)
c) Human Resources
The Body Shop employs over 10,000 people across the world.
d) Intangibles
The Body Shop is an original, natural and ethical beauty brand.
6.2 Competencies and Capabilities
See Appendix 5.
Competencies:
Threshold capabilities
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These are needed by an organisation to meet the necessary requirement to compete in
the given market (Johnson, Scholes, & Whittington, 2008). The Body Shop has
created a niche market by focusing on development of natural cosmetic products, now
it is also entering the changing trend market by introducing anti-aging products due to
the growing aging population in UK.
Unique resources and core competencies
The Body shop uses natural resources for their products which cannot be
easily copied by the competitors.
The core competency of The Body Shop business is their values which are,
against animal testing, support community trade, active self esteem, defend
human rights and protect our planet. These make the company different from
others.
Core Capabilities:
The Body Shop supplies its customers with natural products which are
environmentally safe. This creates a competitive advantage over the other
cosmetic companies in the market.
These types of products are not easily developed, as a result of which The
Body Shop has created a niche within the cosmetic industry.
The Body Shop differentiate their competitors by their method of sales and promotion,5
M’s can be used to analyse its competences and capabilities.
a) Market
The Body Shop is the leader in environmental friendly products but now companies
like Herbal, Lush have come on board to compete with the similar type of product,
But the Body Shop has maintained their image for a long time which won’t affect the
sales.
b) Materials
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Over the past few years The Body Shop has invested setting up new stores across the
country with unique design. They have also introduced merchandises that contribute
towards children.
c) Men
Please refer to Human Resources 6.1 – c
d) Money
Please refer to Financial Resources 6.1 – b
e) Machines
Please refer to Physical Resources 6.1 – a
7) SWOT Analysis (see Appendix 6)
Strengths Level of Implication
Investment in R&D High
Financial Resources Medium
Developing Niche market High
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Brand Loyalty High
Natural Products High
Acquisition by L’Oreal, entry in the global
market.
Medium
Weaknesses Level of Implication
Acquisition by L’Oreal damaged the brand
image.
Medium
High cost of operation High
Franchisee issues Medium
Market Competition High
Opportunities Level of Implication
Developing Anti-ageing products High
Baby Products Medium
Publicity of the company at London
Olympics 2012
High
Recognition of e-commerce to developing
countries will boost sales.
High
Male cosmetic market Medium
Eco-friendly fashion jewellery &
accessories.
Medium
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Threats Implication
Other Cosmetic companies High
Increased sales by competitors High
Expensive resources High
Similar natural cosmetics Low
Although The Body Shop was acquired by the cosmetic giant L’Oreal in 2006, their ethics
remain the same and they operate separately as a separate unit within the L’Oreal group.
This will not have an impact on The Body Shop’s brand image. (Russel, 2007)
They can further develop some product for people from the age group of 50-65, as there is
a demand anti-ageing product in the market. Introduction of cosmetic product for men also
has to be introduced in a wide range.
8. Marketing Plan:
See Appendix 3
8.1 Company’s Objectives
1. To launch a new a new range of baby products by August 2012 in UK.
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2. To expand the male cosmetic market by 2% by July 2011.
3. Awareness of natural cosmetics for males in The Body Shop stores, London
underground, promotions on the website.
8.3 Gap (f) Analysis
Market Share
Target sales – 5.5%
Current Sales- 3.5% Sales gap - 2%
Forecast – 1.5%
1yr Time
According to analysis The Body Shop had 3.5% market share in 2009 (The Star
Online, 2009).
Increase in the market share by 2% by expanding the male cosmetic market by
2011 will be 5.5%.
If nothing is done to increase the market share it will go down to 1.5% i.e. there
will be a gap of 2% in the sales.
8.4 Porter’s Generic Strategy
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Porter’s three Generic Strategies (McNair, 2008):
1. Differentiation – This strategy is followed by the Body Shop as they deal with
natural cosmetic products which separate them from the competitors and the
products are sold at a premium price.
8.5 Ansoff’s Matrix (See Appendix
7)
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Source: Ansoff
1. Existing products in the existing market - The Body Shop use of different
promotion techniques (selling different types of products as a package)
2. New product in the existing market - Introducing a new range of cosmetics for
babies by August 2012.
3. Existing product in the new market - Increasing sales of cosmetics for men by
promoting the product.
4. New product in a new market - The Body Shop does not have any interest in
developing such a strategy due to the objectives set.
8.6 Competitive Marketing Strategy
Offensive Strategies:
Bypass attack- If the competitors attack The Body Shop by imitating similar type of
products than the company’s positioning should focus on the natural products
developed by The Body Shop.
Strategy Development of new products and promotions of existing products at
inferior price than competitors.
8.7. Market Positioning Strategy
The Body Shop used to be the market leader with expanding markets and demand
for the products and a strong offensive and defensive strategies. Now it has moved
to become a market challenger where it does selective targeting to an appropriate
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age group and attacks the rival competitors with their natural cosmetic range of
products.
8.8 Institutional Strategy
The Body Shop has maintained its ethical beliefs and corporate culture even
though they were taken over by L’Oreal.
It operates as a separate unit within L’Oreal but is owned by it. (The Body
Shop, 2009 - 2010)
9) Institutional Plans
(See Appendix 2)
Media Promotions
Advertise in the fashion magazines.
Local tabloid newspapers.
Underground train stations, Buses, Ferry’s.
In store promotion for both men and women cosmetics not just women.
Advertising on the television.
a) People
I.T – To enhance the shopping experience online, and encourages new
user by online promotional offers.
Sales Department – To increase sales and make the customers aware of
the different range of products to the customer.
Operations Department – To monitor all the stock moving from each
store.
R&D – To develop a new range of baby cosmetic products.
Marketing Department – To set targets by implementing marketing
plan, to keep a track of promotions and monitor if the strategies are
followed correctly.
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b) Process
o Appropriate software for the billing process.
o Return policy – Exchange/return the product if not according to the
taste.
o To keep a track of time taken to deliver product purchased online.
c) Physical Evidence
Monitor time taken to deliver an online product.
Stock checks should tally with the inventory stock.
Good ambience has to be developed in stores to attract potential
customers.
Sample of each product should be available for the customer to try.
9) Budget Breakdown
£ Million
Overall cost is £3.78 Million
Promotion – 60% estimated cost £ 17, 00,000
Product – 18% estimated cost, £936,000
People – 8% estimated cost, £416,000
Physical Evidence – 2% estimated cost, £104,000
Process – 5% estimated cost, £260,000
Place – 7% estimated cost £364,000
Total Cost £ 3780000
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10. Monitoring and Control
Quarterly meetings will be held with the head of marketing department regarding new
implementations of marketing plan to remain stable or gain profit.
Gantt chart will be followed to draw conclusions about the cost involved in
implementation and how much time would it take to complete it.
Reports of implementation plan will be given to all the board members to show the
status of each implementation.
New trends and technology required for the new product development will be
discussed after every 3-6 months.
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Appendices
Appendix 1:
Internal Analysis/Value Chain Analysis (Porter, 1998)
Primary Activities
Inbound Logistics: this deal with the receiving, storing and distributing inputs of
product. The Body Shop receives its raw materials from 30 suppliers worldwide
which are normally shipped to UK. If these resources are stopped or discontinued
from the foreign countries then the company needs to think about some alternatives.
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Operations: The Body shop products are against animal testing, the packaging used
for the products can be fully recycled. Everything in the store is environment friendly,
even the bags used to pack during direct sales.
Outbound Logistics: The distribution is done to all the retail Body Shop stores in the
UK where they are further categorised into different types.
Marketing & Sales: The Body Shop is a socially active organisation which supports
communities, different charities that support children and women. The brand image as
a supplier of environmental products makes people aware of the company.
Service: The Body Shop has created a niche market that sells natural beauty products.
Support Activities
Procurement: The Body Shop supports community trade from where the raw materials
are sourced.
Technological Development: The Body Shop has invested a lot in R&D in the past to
make their product as natural as possible. E-commerce has also contributed in the
direct sale of the product.
Human Resource Management: Recruiting at The Body Shop UK is done online,
further the managing, training and developing is done throughout the carrier path.
They also recruit people that can work from home as consultants.
Firm Infrastructure: The Body Shop has over 2500 store over 60 market segments, as
they have been acquired by L’Oreal all the financials are done under them; quality
control is monitored closely for quality.
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Appendix 2:
Implementation Plan
Topics Strategy Tactics
People To improve
customer service by
08/10 in staff.
To educate the staff
about sales’
techniques
Training &
development for the
staff has to be done
within 2 months
Motivate staff with
different & regular
check has to be
undertaken.
Product By 09/10 enhance
the sales of male
products
By 11/10 improve
the appearance of
the stores in UK
By 11/10 Introduce
packages of
different products
clubbed together
By 01/11 have to
change the whole
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looks of the shores
Price By 10/10 introduce
value for money
pack until they
benefit.
By 11/10 form a
well planned cost
strategy.
By keeping the
product on
introductory
discounts.
Introduce
differentiation
pricing after the
market demand
rises.
Place By 06/11 open new
store in Scotland.
By 07/10 develop
schemes of free
delivery over the
sales of 20 pounds
Start looking for
entrepreneurs
interested in the
business in 3
months.
Start pricing the
products tactically.
Promotion Enhance the sales
of male cosmetics
by 07/10 in UK.
By 07/12 introduce
a new range of baby
cosmetics.
Start promotions on
tabloid newspapers,
London
underground
stations, buses,
trains.
Promote on
magazines related to
child care, mothers.
Physical Evidence By 09/10 develop
software for
customer history for
Let the IT
department develop
it by the next 2
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STRATEGIC MARKETING MANAGEMENT
members of the
loyalty group.
By 10/10 form a
promotional
strategy for new
product launch.
months.
From 06/10 check
the progress of sales
of each product till
10/10 and form a
competitive price
for those products.
Process By 03/11 develop
online learning
course for
employees.
By 02/12 develop
self service check
out tills in store.
By 09/10 organise
the online web link
on the company
website for
employees.
By 02/11 introduce
self service tills for
saving time &
money.
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STRATEGIC MARKETING MANAGEMENT
Appendix 3:
Segmentation, positioning and planning
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Market Segmentation
1. Identify customer needs and segment the market.
2. Develop profiles of resulting segment.
Target marketing
1. Evaluate attractiveness of each segment.
2. Select target segment.
Marketing Positioning
1. Identify differential advantage for each segment.
2. Formulate marketing mix.
STRATEGIC MARKETING MANAGEMENT
Source: (Doyle & Stern, 2006)
Appendix 4
Benefit Segmentation of the Body Lotion Market
Segment
name
Principle
benefits
sought
Demogr
aphic
Strength
Special
Behavioural
characteristi
cs
Brands
disproportionat
ely favoured
Personality
characteristi
cs
Lifestyle
characteristi
cs
Indepen
dent
segment
Low cost Workin
g men
Heavy user Olive flavour Self –
automony
Value -
oriented
Sociable Scent &
feel
Young
people,
teens
Normal
skin
Satsuma
flavour – Citrus
scented
Sociability Active
Worrier Skin care Mothers
and kids
Soft skin Butiri Baby Highly
Sensitive
Conservativ
es
Sensory
segment
Flavour
of the
product
Childre
n
Use of fruit
flavoured
lotions
Japanese cherry
blossom
Self-
involvemen
t
Hedonistic
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Marketing Planning
1. Develop marketing plan each segment.
2. Develop marketing organisation.
STRATEGIC MARKETING MANAGEMENT
Appendix 5
Core Competency Model.
Source: (RIMS, 2010)
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STRATEGIC MARKETING MANAGEMENT
Appendix 7
Ansoff matrix
- According to Ansoff matrix analysis, The Body Shop has newly entered in different
sectors in market penetration,
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MARKET PENETRATION
- TARGET NEW MARKET AND
- IMPROVE SERVICES
PRODUCT DEVELOPMENT
- DEVELOPMENT OF NEW RANGE
OF BABY PRODUCTS
MARKET DEVELOPMENT
- ENTER INTO THE UNTAPPED
MARKET FOR MALE
COSMETICS INDUSTRY
DIVERSIFICATION
- SOCIAL SERVICES
- INCREASE CORPORATE SOCIAL
RESPONSIBILITY
-
STRATEGIC MARKETING MANAGEMENT
- And as they are leader in the cosmetic industry and are looking forward to enhance the
male cosmetic market.
- They are also looking to get diversified in sectors like financial services, products, retail
business, social services, ethical welfare.
Product Life Cycle:-
Source: (Luck, 2008)
Product life cycle shows that growth of a company is staring from a fix position, In the
beginning company don’t make any profit when they launch their product in the market, there
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STRATEGIC MARKETING MANAGEMENT
are chances of loss or make profit, The Body Shop has already has a good reputation in the
market if they launch any new product they don’t need to do behave like new entrance
because people trust this brand and they will buy their product.
Appendix 8
Resource Plan:
Activities JAN FEB MAR APR MAY JUNE JULY AUG Resources
Enrolment Manager
Structure Executive
Approval Management
Product HR
Advertisement Marketing
Distribution HR
Sales Marketing
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STRATEGIC MARKETING MANAGEMENT
Works CitedAbout Us. (2009-2010). Retrieved June 04, 2010, from The Body Shop International: http://www.thebodyshop.com/_en/_ww/services/aboutus_media-centre.aspx
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Decision News Media SAS. (2000-2010). Retrieved 05 31, 2010, from http://www.cosmeticdesign.com/Products-Markets/Political-turmoil-turns-luxury-cosmetics-markets-on-its-head
Doyle, P., & Stern, P. (2006). Marketing Management and Strategy. England: Financial Times.
Dsa. (2009-2010). Direct Selling Association. Retrieved June 12, 2010, from Direct Selling Legislation: http://www.dsa.org.uk/legislation.htm
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Environmental Investigation Industry. (2003). UK Cosmetic Industry Risks Tiger Forests. Media Briefing , 1-9.
Gilligan, C., & Wilson, R. (2009). Strategic Marketing Planning. Great Britain: Macmillan Publishing Solutions.
Global Insight. (2007). A Study of the European Cosmetic Industry. The Power of Perspective , 1-22.
Harvey, F. (2010, June 08). Financial Times. Retrieved June 10, 2010, from Taget for emissions cut to be exceeded: http://www.ft.com/cms/s/0/e45a4450-7332-11df-ae73-00144feabdc0.html
Johnson, G., Scholes, K., & Whittington, R. (2008). Exploring Corporate Strategies. England: Financial Times.
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Kotler, P., Keller, K., Brady, M., Goodman, M., & Hansen, T. (2009). Marketing Management. England: Pearson Education Limited.
Lamb, C., Hair, J., & C, M. (2008). The Essentials of Marketing, 6th edn. Canada: Nelson Education.
London Borough Of Richmond Upon Thames. (2009-2010). Retrieved June 14, 2010, from Make a Payment Online: http://www.richmond.gov.uk/payments
L'Oreal. (2010). The UK Beauty Industry. Trends 2010 , 1-12.
Luck, D. (2008). The Official CIM Course book. UK: Elsevier ltd.
Mail Online. (2009, November 24). Retrieved June 14, 2010, from News: http://www.dailymail.co.uk/news/article-1230478/Shark-oil-tankers-Jurassic-Coast-environmental-accident-waiting-happen.html
Mail Online. (2010, June 18). Retrieved June 18, 2010, from News: http://www.dailymail.co.uk/news/article-1287718/Whitehall-experts-cost-taxpayer-2billion-wages.html
McCraddie, L. (2010, April). Anti-ageing trends. Retrieved June 14, 2010, from Professional Beauty: http://www.professionalbeauty.co.uk/products/skincare/anti-ageing-trends-skincare/5013082.article
McNair, L. C. (2008). Management Accounting Business Strategy. UK: CIMA.
Our People. (2009-2010). Retrieved June 03, 2010, from The Body Shop International: http://www.thebodyshop.co.uk/_en/_gb/services/aboutus_ourpeople.aspx
Porter, M. (1998). Competitive Advantage. America: The Free Press.
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RIMS. (2010, June). Risk and Insurance Management Society. Retrieved Jun 10, 2010, from Education: http://www.rims.org/education/PublishingImages/rrmccmgraphic.jpg
Russel, J. (2007, March 11). Ethical Corporation. Retrieved June 11, 2010, from Body Shop Take Over - Ethical business as usual: http://www.ethicalcorp.com/content.asp?ContentID=4936
Silva, O. D. (2002). The Contribution of European Cosmetic Industry to the Developement of Aternative to Animal Testing. Steering Commitee on Aternatives to Animal Testing , 189-183.
The Body Shop. (2009 - 2010). Retrieved June 10, 2010, from About Us: http://www.thebodyshop.co.uk/_en/_gb/index.aspx
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Wearden, G. (2009, Jan 2009). Business. Retrieved June 05, 2010, from The Guardian: http://www.guardian.co.uk/business/2009/jan/20/pound-sterling-dollar-low
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