Marketing Analysis of the Body Shop

BRAND BACKGROUND

The Body Shop is a global manufacturer and retailer of naturally inspired and ethically produced beauty and cosmetics products. Founded in the UK in 1976 by Dame Anita Roddick, it now has over 2,500 stores in 60 countries with a range of over 1,200 products. The Body Shop is a leader introducing positive social and environmental changes through various campaigns around five core values: Support Community Trade, Defend Human Rights, Against Animal Testing, Activate Self-Esteem and Protect Our Planet. Now, the Body Shop is belonged to the family of the French cosmetic giant - L'Oreal.

MARKETING MIX

Product

The Body Shop carries a wide range of products for the body, face, hair and home, and they feature ingredients such as marula oil and sesame seed oil sourced through the Community Trade fair trade programme. The Company aims to source ingredients such as plants, herbs, fruits and nuts from natural sources, and uses specific ethical guidelines when choosing a supplier, their products are made in a number of countries around the globe. All products come in recyclable packaging and some contain at least one Community Trade ingredient. Products are basically divided into 10 categories: Well-being, Make-up, Bath & Body, Skin Care, Men, Home fragrance, Fragrance, Hair, Accessories & Gifts.

Apart from its product line, the first Body Shop has been keen on using "green" in its store design. The Company's Green Concept Store in Hong Kong opened on Sep 2009 at Ocean Centre, Tsimshatsui, is a good example. The store has provided an exciting new shopping experience for customers.

The Body Shop's response to "Green Marketing" can be seen by its efforts in reducing packaging waste, their plastic bottles are made from 100% recycled material, all carrier bags and paper bags are 100% recycled and now offer the Community Trade Bag for Life made from 100% organically grown cotton. They've also increased the recycled content in the gift packaging and ensuring that they can be recycled through standard household and business recycling systems.

Price

As a global cosmetic brand, the price of the Body Shop is perceived as quite fair. In comparison with its closest competitor L'Occitane, 'Body Wash' of the Body Shop ranges from HK$59/250ml whereas L'Occitane is from HK$150/200ml. 'Shampoo' of the former ranges from HK$100-149 while the cheapest from L'Occitane is HK$150. Furthermore, the price of its skin care positions similar as market brand such as L'oreal Paris, so its overall price is affordable and competitive.

Promotion

In recent years, the Body Shop has engaged itself in more Public Relations activities such as participating in the international campaigns such as "Stop Violence in the Home", "Say Yes to Safe Sex", "Stop Sex Trafficking", and "Spray to Change Attitude". Soon other promotions tied to social causes were launched, with much public and media interest, the Body Shop regularly featured posters on shop windows and sponsorship of local charity and community events. The Body Shop will also launch sales promotion to boost sales such as offering samples free trial, short-term discount to push the items and create instant purchase, and marketers could then evaluate market response.

To enhance long-term customer relations, the Body Shop introduced "Love Your Body" loyalty program which will reward members with discounts, mobile coupons, free gifts and access, etc. The Body Shop has its own member newsletter published every month, it is also available in the on-line platforms of Facebook and YouTube to connect its patrons and provide on-line news and promotions.

Place

The Body Shop International plc is the original, natural and ethical beauty brand, with over 2,500 stores in over 60 markets worldwide, with Australia, Canada, France, Japan, Korea, UK and USA providing on-line shopping services. Locally, it has a total of 44 stores in Hong Kong which spanned widely from Hong Kong Island to the Outlying Island - Lantau. Most stores are located in the area of a large floating population such as Mongkok, Central, Causeway Bay, etc., and strategically located at the ground level of major shopping malls or MTR stations. Those locations are easily accessible by its potential customers, but the Body Shop might have to consider developing E-marketing - a cost-effective marketing communication channel to targeted customers and enhance the brand value.

TARGET SEGMENT

The Body Shop provides natural beauty product ranges from cosmetics and skin care products to home fragrance and accessories for one's well-being. In this sense, the Body Shop targeted customers are the adults of all ages who are keen to use natural and healthy beauty products and who have awareness of particular social issues such as animal testing and environmental protection. Psychographic characteristics namely lifestyle is the key factor to define the possible segmentation, which will be further explained in the next section. The Body Shop is a famous international brand with a history of 34 years on beauty products started from the UK, the fact that a cosmetic brand highly involved in various global campaigns for the benefits of social, political and environmental issues has enough to receive brand awareness and positive image on consumers' minds, so the Body Shop's target market is rather wide and it is a big advantage to develop its business.

Psychographic Segmentation

A healthy lifestyle has become a key expressed principle in modern life. The Body Shop is strongly associated with customers with psychographic variables namely lifestyle ones who have growing awareness on health and social issues. As beauty products are so personal and important, customers tend to support the cosmetic brand which appreciates natural ingredients and with a reliable long history like the Body Shop. The Company's strong social responsibility programs have a significant advantage in targeting the above customers which has to be leveraged further.

Demographic Segmentation

The Body Shop sells products which are organic and natural. It actually targets the general public at all ages that looks for natural and healthy beauty and