The Body Shop was established in 1976 by Anita Roddick in West Sussex, England. It competes primarily in the cosmetics and toiletries industry and its major competitors are Boots Plc, Bath & Body Works, and L'Oreal. The company's niche market is based on the production of naturally inspired, ethically produced beauty and cosmetic products. Accordingly, it has been performing successfully by generating high revenues in many markets around the world. Through periods of strategic rejuvenation to adapt to market changes and competitive forces, in 2000, the company redefined its position and target market specifically towards the masstige, mass and premium market customers. And this led to the introduction of the brand extension products in 2005 (Euromonitor International, 2007). The company is a global manufacturer and retailer of naturally inspired, ethically produced beauty and cosmetic products. The Body Shop currently is operating in 55 countries with over 2100 stores worldwide and with a range of over 1200 products. The Body Shop has the unique identity for its naturally inspired products which are not tested on animals. Based on its commitment to ethical and socially responsible business, the company has been very active in supporting the developing world, particularly in Africa and Latin America, where most of its natural ingredients and cosmetic accessories are sourced from.
[...] Regarding the promotion variable, Body Shop is relatively popular in Europe and North America, so much will have to be done to inform consumers in the newer markets about the product and its uniqueness in comparison to alternatives such as local products or other branded products available in the local market. At this stage, the countries with a score of 60 or higher will move on to the next stage; those below 60 will be removed from the country list. [...]
[...] Phase IV Report The objective of Phase 4 was to develop entry strategies and marketing plans for entering Brazil that are based on The Body Shop's strengths relative to the competition. The following presents this analysis for our considerations: Entry Mode In order to determine the best entry mode strategy we evaluated thirteen possible modes of entry and evaluated them based on ten drivers. The following table presents the results from that analysis: Drivers Key A = Goals/Objectives B = Control C = Resources D = Experiences E = Competition F = Regulations G = Market Size H = Risk I = Flexibility J = Feedback The entry mode with the highest score was establishing a Foreign based sales Branch. [...]
[...] Through these initiatives the company is able to establish relationships with its suppliers, their communities and the high street shops where the end products are traded. Distribution The Body Shop currently markets its products through its own distribution channels. These include high street stores, online shopping, franchises and direct selling through The Body Shop at Home. High street stores are usually located in urban cities, high streets and in shopping centres. Marketing The Body Shop only markets and sells products under its own brand name. [...]
[...] GLOBAL READINESS Using a series of questions based on the company's product, current international presence and entry strategy in comparison to international competitors, it can be argued that The Body Shop can expand into newer markets to exploit opportunities that might be present in those countries. Answers to the questioned were scored and based on the company score of 80, out of a possible 110, Direct exporting was suggested as an option of entry to the new market. STRENGHTS, WEAKNESSES, OPPORTUNITIES & THREATS Strengths Niche Positioning- The Body Shop is famous for creating a niche market sector for naturally inspired Bath& Body care products. [...]
[...] Thus, we strongly advice, the expansion to take place in promising markets based on consumer population and purchasing capabilities, while also taking into consideration, regulatory conditions that can positively influence The Body Shop's expansion into a new market. Phase III Report The objective of Phase 3 was to identify the best target market country for The Body Shop and its products. The following presents this analysis of our findings: Contacts and Competitive Analysis BRAZIL We identified three contacts within Brazil. [...]
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