Industry And Competitive Analysis Marketing Essay

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23 Mar 2015

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According to the Bodys Shop website, their business is about engaging and inspiring customers around their individual needs for skin care and hair care... this relies on attracting and retaining the skills, knowledge and creative talent to deliver excellent products with exceptional service to [their] millions of customers worldwide". The company has a presence in over 51 countries, conducts business in 21 languages, operates nearly 2000 stores (about 70% are franchised), and employs over 6000 people in company stores, regional offices and UK-based Service Centre. Products are also sold via the BodyShop at Home, an in-home sales program that operates in 48 US states and Australia and via a company website in the US.The company's mission statement is as follows (www.thebodyshop.com, 2004):To dedicate our business to the pursuit of social and environmental change.To creatively balance the financial and human needs of our stakeholders: employees, customers, franchisees, suppliers andshareholders.To courageously ensure that our business is ecologically sustainable: meeting the needs of the present withoutcompromising the future.To meaningfully contribute to local, national and international communities in which we trade, by adopting a code of conduct, which ensures care, honesty, fairness and respect.To passionately campaign for the protection of the environment, human and civil rights, and against animal testing withinthe cosmetics and toiletries industry.To tirelessly work to narrow the gap between principle and practice, while making fun, passion and care part of our dailylives.The company promotes "beauty is in the customer's eye instead of the beholders" (Hoovers, 2004). Based on this philosophy they sell a wide range of natural skin and hair care products to their customers. Examples of their wide range of products include Peppermint Foot Lotion and Banana Shampoo. The Body Shop combines activism with marketing,encouraging women to focus on self-esteem and environmental issues; and is committed to a concept that they refer to as sustainable governance. Sustainable governance means that the "directors [of The Body Shop] are committed to integrity and accountability in the stewardship of the Company's affairs... this includes social and environmental performance, and animal protection" (www.thebodyshop.com).

INDUSTRY AND COMPETITIVE ANALYSIS

Overview of the IndustryThe Body Shop International Plc is listed under different related and synonymous industries. In the UK, the company is listed under the medicine industry. Globally, it is operating in the Cosmetics and Toiletries (C&T) industry. This industry is synonymous to Fragrances and Care Industry, Personal Care Industry, Chemical Industries Manufacturing Beauty Products,Beauty Industry, and Consumer Products-cosmetics Sector Industry. For the purpose of the project, we would like to focus on the Global/Regional C&T industry, which is the main industry where The Body Shop, is operating in (MSN money,Hoover's online, 2004).

Structure of the Industry

The Body Shop operates in the global cosmetic and toiletries (C&T) industry. From Euromonitior, the C&T industry includes the following broad group of products; baby care, bath and shower products, deodorants, hair care, color cosmetics,men's grooming products, oral hygiene, fragrance, skin care, sun care and depilatories. These products can further be segmented into two categories based on product ingredients - those made from natural materials and those made from synthetic chemicals. One point is noteworthy here, segment boundaries are getting blurred day by day as producers are trying to achieve market share in both the segments. According to Hoover's, The Body Shop's top competitors include, Bath& Body Works, Boots Group and Estee Lauder

Internal environment

Internal Audit

The Ethical Audit department has protocols and checklists which it uses to audit compliance of manufacturing and production sites with The Body Shop's Against Animal Testing policies and procedures. These protocols are now being applied to third party manufacturers of finished products supplied to the company. These audits are much more like 'quality assurance', ie. Checking that management systems and procedures are in place, then 'quality control' which is a more direct day-to-day responsibility.

Amazing ingredients, sourced through Community Fair Trade

Against animal testing, activate self esteem, product the planet

The Body Shop offers a line of hundreds of skin and beauty products, including lotions, moisturizers, soaps, hand washes, bath oils, toners, cleansers, exfoliators, masks, eye treatments and more.

The testimonials posted on The Body Shop website indicate that the company's products are highly effective

The Body Shop reduces their packaging by use as little packaging as possible in the first place. For the vast majority of the products they use simple bottles and jars, with no secondary packaging (The Body Shop Values Report, 2009) and most of their gift packaging can be reused.

The body shop has many product lines-include skin care, body, bath, hair, makeup and so on guarantee company can provide various products to meet different demands. The Body shop has already produced more than 600 kinds of beauty care products and over 400 kinds of product add-ons.

Marketing communications

Advertising

Runs cutting edge social awareness campaigns on issues including, for example, HIV/Aids and domestic violence. A three year campaign 'Stop Sex Trafficking of Children and Young People' began in mid-2009. Popular products are linked to these campaigns and profits donated to relevant NGOs. McCann London landed the global advertising account in 2010 and is focusing on the core ethical values plus the innovative NPD programme.

e-commerce and home shopping

Transactional website

www.thebodyshop.com. Transactional sites in 10 countries: UK, Germany, France, Italy, Netherlands, Switzerland, USA, Canada, Australia and Korea.

Online revenues

n/a

Mobile enabled platform

No

Apps

'Love Your Body' app to view member account and awareness campaigns.

Social media

Facebook (34 countries), Twitter (10 countries), YouTube.

The Body Shop at Home

Home shopping party plan operation operates in the UK, USA, Australia and Germany.

SWAT Analysis

Strengths

Leader of Animal Protection

The Body Shop is the first cosmetic company involved in the campaign for animal protection. People notice the company when they're thinking about animal protection. This allows goodwill to be developed around the brand name of the company. It also allows the company to charge a premium for their product.

Community Trade Program

The company has created a special purchasing program, called Community Trade Program. It develops long-term sustainable trading relationships with communities in needs around the world by helping them to create livelihoods, and to explore a trade-based approach sustained by sourcing ingredients and accessories directly from the developing countries.The programme is beneficial to the company for more raw materials can be found for inclusion in the best-selling products. The supply of raw materials would be cheaper and more stable. Also, the community trade shares the sales of the company. They now account for almost 10% of the company's total sales. Finally, the programme gives a very good image to its publics.

Weaknesses

Packaging and Transportation Problems

The Body Shop uses plastic containers made from petrochemicals, which are not recyclable in the vast majority of markets in which the company operates. The recycling capability of the packaging materials is limited and the cost of recycled paper is higher than prime paper. Transportation - The mass production of Body Shop products and their transportation over large distances not only results in environmental damage but also necessitates the products containing many preservatives and other synthetic ingredients.

Opportunities

1-Expand The Body Shop at Home Program

A potential opportunity for The Body Shop is for them to expand upon their current Body Shop at Home program that iscurrently only offered in Australia and US. This program capitalizes on the re-vitalization and growing popularity of 'girls'nights' and parties where merchandise is sold. It is modeled on the traditional 'Tupperware Parties'. The benefits of these parties are that customers (women) get the opportunity to socialize and try products before they purchase them. This model allows the company to reach customers who they may not have been able to reach previously at a cost that is less than opening a new franchise. A benefit to it is that positive results are currently being observed where it is in place.

2-Expand E-Commerce Activities

The Body Shop could expand their E-Commerce program This would allow the company to reach individuals that they previously could not reach because their retail stores are only available in large urban centers. This would increase the level of brand awareness while dramatically cutting business costs - because the e-commerce technologies cost less to set-up and maintain than a traditional bricks and motor retail environment. The company could consider the possibility of partnering or outsourcing their e-commerce aspect of business to a company that specializes in e-commerce technology.

Threats

1-Competition in Cosmetic Industry

There is an increase in competition means that consumers have more choice in the products that they are purchasing which can potentially have a derogatory affect the market share that the company controls. Finally, the markets that The Body Shop currently operates are experiencing growth that is plateauing and in some instances actually declining.

2-Risks in Material Supply

Most of the ingredients in its products are plant based. The growth of plants is highly dependent on factors that cannot bereadily controlled - weather, fires, and insect infestations. Also as the climate changes and rain forests are being destroyed plant species are being lost

Marketing objective

Promote awareness of the Body Shop core brand and specific men's grooming product offerings through targeted channels such that at least 35% of the target demographic are aware of the products and the unique values of the BodyShop.

The bodyshop uk website and

http://www.fitnesshealth101.com/review/skin-beauty/the-body-shop



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