group 20 body shop

8/8/2019 Group 20 Body Shop

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Body shopBody shop


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Agenda

Body shop

External Analysis

Strategy ofBody shop

Corporate social responsibility

Success story

US Market and Body shop

Sustainability of competitive advantage

Post script

Q & A

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There is no scientific

answer for success. Youcan't define it. You've

simply got to live it and do

it

Anita Roddick

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Body shop

Started in 1976, Brighton, England

Today 2550 stores in 63 countries

Range of over 1200 cosmetics product

Commitment to society

Unique Management and operating policies

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Anita Roddick

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1985 UK company of the year

1985 Veuve cliquot Business woman of the year

1989 Queen Elizabeth Award


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External Analysis

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Before 1976

Products Synthetic preservatives, Artificial

colors

No much emphasis on naturals

Products are costlier

Traditional distribution

Heavy Investment on advertisements

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Cosmetics in 1970s

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Cosmetics in 1970s

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Body shop way

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Body shop way

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Strengths

Unconventional

Leadership Brand Name

CSR activities

Natural Products

Weakness

Combining

business strategywith personal

strategies

Less focus on

Investors

No Successor

Internal Factors

SWOT ANALYSIS

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Opportunities

Global Expansion

Product lines Increased

Awareness

Mens Products

Online distribution

Threat

Unstable supply

of raw materials Growing

Competition

Regulations

External Factors

SWOT ANALYSIS

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Initial Strategy

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Initial Strategy

Strategy of Survival

Body Shop its all just trading

Products offered in 5 different sizes

Refill done at 15% discount

Detailed label with ingredients information

Expansion through franchisee model

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Corporate socialresponsibility

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Success Story

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Whatever you do, be

differentif youredifferent you will stand

out

Anita Roddick

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Success Approach

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Pricing

Franchising (Choosingright people)

Productdevelopment (evolvedovertime)

Marketing

Organizationand Humanresources


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US Market

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US Cosmetics Market

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COMPETITIVERIVALRY

BARRIERS TOENTRY

POWER OF BUYERS

SUBSTITUTES

POWER OF SUPPLIERS

HIGH

LOW MEDIUM HIGH

HIGH


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US MarketChallenges

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Body shop & US Market

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Time ofEntry

very late into US Market in 1988

e t tion erio

Long period of 2 years

Franchising started as late as 1990

I eologie

followe

Stuck to the same as those followed in the UK

Followed a no marketing, advertising approach

ro uctr ngeoffere

Same as that in UK, no innovation

No branding or brand building activity done


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Sustainability

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Sustainability

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Keep business strategies and personal strategies

separate.

Advertising and Packaging

Invest in Human Resource

Body shop clubs and organizing events

Development of successor


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Sustainability

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Pr t

F r n

Regi n S ecificr duct

Pri e

Acc rdancewith

the

cun

try

Aven esOnline

New arkets

Pr m ti ns

InnovativeWay


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Post Script

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Post Script

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Change in Strategy

Media advertising

Opened in Malls

Appointed a PR company to promote its products(1994)

LOreal acquires Body shop


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Post Script

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Retail Sales by geographic zone


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Post Script

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Number of Stores


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Post Script

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Sales

1 Total sales to consumers through all channels2 Total sales to consumers by stores which operated continuously from January 1 to December31, 2009 and over the same period in 2008.


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Thanks

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A

Team Works

Presentation

group 20 body shop

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