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The Body Shop

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Lera Plytnik

on 23 February 2014

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Transcript of The Body Shop

The Body Shop
By Maria Rylova, Aigul Kuanysheva, Valeria Plytnik, Elena Zvereva

About the company
Body Shop is the original, natural and ethical beauty brand
Over 2,500 stores
First “The Body Shop” store opens on 26th March 1976 in Brighton
Founded by Anita Roddick
First overseas franchise became in 1978 in Brussels
From 2006 operates independently within the L'Oréal Group
Product mix
Bath and body (soaps, shower gels, body scrubs, body butters, lotions, hand creams)
Skincare (toners, cleansers, masks, serums, moisturizers, eye care, lip care)


Hair care


For men

Core values
Support Community Trade
Defend Human Rights
Against Animal Testing
Activate Self-Esteem
Protect the Planet
Against Animal Testing
Animal cruelty free

Fair trade
The Body Shop launched Community Fair Trade in 1987
Small-scale farmers, traditional artisans and rural co-ops
Body Shop offer good trading practices and independence-building prices

Charitable Foundation
Launched in 1990
Financial support to pioneering, frontline organizations
Human and civil rights, environmental and animal protection

SWOT analysis
Innovative products
High brand loyalty
Successful leadership skills
Experienced executive management team
Good quality and services
Experience, Financial backing and experience of L’Oreal

Many products are in the mature/declining stage
Lack of celebrity in promoting for attracting young people
Sales volume restricted by the limited number of retail outlet
Instances of loss of trust from different stakeholders in supply chain

Increased awareness of organic and eco friendly products
Growth in men’s skin care products
Increasing number of online buyers
Aging population
Ban of sale and marketing of animal tested products in European Union from march 2009

Suppliers are not required to adhere to ecological standards
Environmental management system is not certified to an official standard
No marketing department and no advertising department

Porters 5 forces
Target group
Well-educated women ages 18-55
Well-educated men 30-55 with higher income
Interested in ethical and environmentally friendly products
Willing to pay more for quality beauty products

In-Store consumer demographics
Ansoff Matrix analysis
Financial Analysis
The Body Shop constitutes about 4% of L'Oreal's net sales and includes a chain of over 2,500 free standing 'The Body Shop' stores in over 65 countries across the globe.

Winning new customers
offline and online
Online sales have increased this year by more than 40%
Digital communication is a strategic tool for trans- forming The Body Shop and plays a central role, both as a driver of customer recruitment—by generating traffic into the stores—and as a distribution channel in its own right.
Countries of operating
•  Canada
•  Mexico
•  United States

•  Australia
•  China
•  Hong Kong
•  India
•  Indonesia
•  Japan
•  Malaysia
•  New Zealand
•  Pakistan
•  Philippines
•  Saudi Arabia
•  South Korea
•  Singapore
•  Taiwan
•  Vietnam

•  Austria
•  Belgium
•  Denmark
•  Estonia
•  Finland
•  France
•  Germany
•  Greece
•  Hungary
•  Ireland
•  Italy
•  Latvia
•  Lithuania
•  Netherlands
•  Norway
•  Poland
•  Portugal
•  Romania
•  Russia
•  Spain
•   Switzerland
•  Sweden
•  Turkey
•  United Kingdom
Other Countries
• Newworldmap.svg International
•  South Africa
•  Botswana
The beauty cosmetics
The bio cosmetics
The professional cosmetics

Very innovative market
Oligopolistic market
Main Competitors
Product mix
Market positioning
Competitive advantage
The Body Shop
Skin and body care products
Broad (from make-up products to skin and body care products)
Skin care products
Environmentally friendly, trendy
Natural based and brand valuable
Middle-range/above average
Leader of the industry
Experienced global brand
Depends on the brand
Low price/innovative products
Main problem:
Low brand awareness
Main goal:
Raise awareness of the brand by
• Developing visibility of the brand
• Communicating core values
• Widening target audience (men, children, mature women)
Strategic options:
• Product development (new range of lower cost products in the existing markets)
• Market development (South America, Eastern Europe)
• Keep the identity by communicating core values (community trade programs, against animal testing events, etc)
• Redesign in order to look fresher and more trendy
Thank you for your attention!
Full transcript