The Body Shop & LOccitane - Corporate Development - Essay Example

?Case Study of The Body Shop & L'Occitane: Evaluation of Design as a Tool for Corporate Development Introduction Design as an integrated part of the business process has only recently been recognised. The growing importance of design has managers and the whole operations team involved in all its process. It has been suggested that management is a “design science” and that design was a primary descriptor of management practice (Simon, 1969). It has also been proposed that management practise is the art of getting tasks done by people (Kootsra, 2006) and their actions were based on tacit knowledge, intuition, and creativity based on experience. This is where design comes in as before a manager does any action, he will have to reflect on the intentions and then design an intervention or strategy, including structure and system. This will be useful in getting things done at the right time and at the right price (van Aken, in Huff et al, 2006). In addition, van Aken (Huff et al, 2006) suggested that “academic management research as a design science develops valid knowledge to support organizational problem-solving” (p 413). It provides direct, indirect or instrumental support as well as general enlightenment (van Aken, in Huff et al, 2006). The design sciences have been juxtaposed against natural or explanatory sciences and design sciences aim to develop knowledge to support the creation of solutions to field problems experienced by professionals such as in the medicine and engineering fields. This paper will try to identity the design process undertaken by The Body Shop & L'Occitane as a tool for corporate development and provide comparison and contrast on their communication, clarification, confirmation, and evaluation process. The research method to be used shall be evaluation of communication materials, research on published data, and other materials that will determine the objectives of this paper. 1. Introduction into the two brands history The Body Shop Acquired by cosmetics giant L’Oreal in 2006, the Body Shop was founded by Anita Roddick who had the aim to conduct business as a force of good which profit will not compromise principles (The Body Shop, 2009). The first The Body Shop store was opened in 1976 in Brighton, United Kingdom. It introduced ethical shopping by promoting health and well-being through innovative products that were not tested on animals, did not destroy the environment, and did not exploit the people who made them (The Body Shop, 2009). This was achieved through use of natural and traditional ingredients and recipes such as the babassu oil from Brazil by community people who are marginalised. Today, the Body Shop is globally known for its nature-inspired and ethically produced beauty and cosmetic products. It now has more than 2,500 stores in more than 60 countries with a product range exceeding 1,200. The Body Shop (2009) states that The Body Shop “We believe there is only one way to be beautiful, nature's way.” The company sought out wonderful natural ingredients from all four corners of the globe then brought consumers products that burst with effectiveness to enhance natural beauty. The company also strives to protect the planet and the people who depend on it not because it is fashionable but because it is the only way (The Body Shop, 2009). It went on to state “The Body Shop: Sustainable Design for The Body Shop” which hopes to achieve a natural balance of sustainability and beauty. The context of which is to “support and amplify its new brand positioning, Nature’s Way to Beautiful, evolve its existing retail formula for the launch of a premium, eco-friendly concept store in Singapore. The challenge is to evolve the brand’s retail formula specifically for their flagship outlet at Singapore’s newest premium mall—Ion Orchard with the aims: to enhance the brand’s beauty, but also reduce the environmental footprint of The Body Shop stores. Proposed solution has been to showcase eco-conscious retail design, employing sustainable materials and environmentally friendly lighting. Here, furniture is made from discarded pallets, salvaged and recycled by a local Singaporean company, whilst the use of energy- and cost-efficient LED lighting has reduced consumption by 70%. The measures are communicated to shoppers at key points along the customer journey, thereby reinforcing the brand’s commitment to preserving the planet through sustainability,” (The Body Shop, 2009, 4). communication, clarification, confirmation, and evaluation The Body Shop has committed to several goals in its values programme that encompass improvement of the condition of workers they deal with, communities they trade with, and protection of environment. These were clarified in all their communication process, most especially their investor materials, advertisements, and announcement to media. The confirmation is done by the company in their business dealings with their contract suppliers through actual monitoring and inspection of their supplier factories, workers, and communities. Self-evaluation were also conducted and certain percentages of achievement were provided by the Body Shop in their report accessible to the public (The Body Shop, 2009). L’Occitane L’Occitane was established in 1976 by Olivier Baussan in Provence, France. It has become an international manufacturer and retailer of skincare, body care, fragrance and hair care. Today, it is sold in over 85 countries around the world with a wide network of boutiques and strategic partners. Its products are introduced as high quality, efficient and sensorial, formulated with “traceable, natural and active ingredients inspired by Provencal traditions and offering the experience of well-being,” (L’Occitane, 2011, About). L'OCCITANE cosmetics and well-being products are made up of natural and organic ingredients. The company is committed to bring the L'OCCITANE brand as a designed, manufactured and marketed on natural and organic ingredients that came from or near Provence. The L'OCCITANE products are: Body care that encompass body lotions and creams, body scrubs and sun protection lotions; Face care such as facial moisturisers and treatment products, face wash, face masks, face scrubs, sun protection lotions and lip glosses; Fragrances eau de toilette and eau de parfum; Hair care shampoos and conditioners; Toiletries soap bars, shower gels, bath products and deodorant for men and women; Men's grooming shaving creams, after shave balms, facial moisturisers and eaux de toilette; Home fragrances home perfumes and perfumed candles (L’Occitane, 2011, About). The L'OCCITANE brand and its first line of products were created in 1976 by the founder, Olivier Baussan, currently a creative consultant. The first L'OCCITANE store opened in 1978 in Provence. Reinold Geiger took control of the business in 1996 that signaled expansion and distribution of L’Occitane to over 80 countries and over 1,500 retail locations. L'OCCITANE products and stores are decorated in a standardised L'OCCITANE design. The L'OCCITANE operates their own 753 retail shops 753, 470 were operated by third party distributors and 294 were operated by L’Occitane airport and duty-free store staffs. L’Occitane’s strategic review and prospects for first half achievements include sales growth, investments, 62 net store openings (vs. 43), renovations, marketing focused on promo tools and advertising, launch Melvita in major countries, increased infrastructure in R&D, Marketing and international management, re-built inventories, continue investment in new stores in emerging and fast growing countries, focus on the holiday season to achieve successful sales during this key period, continue to develop Melvita in France and key markets. The second half prospects are focus on execution of future growth, explore strategic acquisition opportunities, finalize SAP for first go-lives in FY2011, continue improving supply chain forecasting and inventory management, and implement factories and central warehouse projects. communication, clarification, confirmation, and evaluation The commitment communicated by L’Occitane focused in achieving zero-waste, which it also acknowledged as very ambitious (Bourgeois, 2011). This commitment was clarified in their website and news releases published (Gorb, 2001). Confirmation was conducted through an internal supervision of an environmental engineer that determines the carbon impact of all their packaging choices and materials. Evaluation has been that the company has been moving progressively towards their goal although it could be very unlikely that zero-waste will ever be achieved despite a widespread education of their consumers to reuse, recycle and sort (Turner and Topalian, 2002). 2. Discuss about two brands’ branding The two brands have adopted ways to identify their own product concept using a design concept from planning to post-consumer criteria. For L’Occitane, the method “cradle to cradle” was a target although not yet fully realised. Philippe Brugiere explained that Bausan, from the start, has been concerned with the future of the planet and that use of recyclable materials, probably for packaging and retail presentation. The integrated eco-design approach was started in 2007 through the packaging development, using the “Guideline manual on eco-design” and worked towards ingredients and formula (Burdek, 2005). The packaging used plain-designed packs of papers sourced from the Forest Stewardship Council. Water-based inks and suppliers that have been certified by Imprim Vert were also favoured. The least finishing techniques such as vacuum metallisation and hot-stamping, and separable parts such as pumps and screw parts were applied for end-of-life sorting (Bourgeois, 2011). The eco-design process pass through several decision levels: first was the concrete and systematically implementable stage, second was application of approved decisions to concerned departments, and third is the level of options for systems that still undergo validation focused on development (Bourgeois, 2011). Brugiere (Bourgeois, 2011) reported that an internal creation and implementation of a “qualitative eco-design grid” for each product meant a need to pass through 14 criteria representing all aspects of product packaging. The life-cycle analysis (LCA) method was also applied in order to determine the least carbon dioxide emission for all packaging choices and that environmental information for consumers will also be developed as Brugiere emphasised that eco-design is a continuing improvement principle (Bourgeois, 2011). L’Occitane hopes to achieve a zero landfill waste, least possible consumption of energy, water, and non-renewable materials and maximise sorting and recycling at the same time influence consumers to reuse packaging (Bourgeois, 2011). For The Body Shop’s Anita Roddick stated that “The business of business should not be about money, it should be about responsibility. It should be about public good, not private greed.” (The Body Shop, 2009, 10). In the incorporation of design, The Body Shop aside from pursuing social and environmental change, has in its mission statement to “creatively balance the financial and human needs of our stakeholders: employees, customers, franchisees, suppliers and shareholders […] Courageously ensure that our business is ecologically sustainable, meeting the needs of the present without compromising the future…” among others (The Body Shop, 2009, 10). Its core values are guided against animal testing, supporting community trade, activating self-esteem, defending human rights, and protecting the planet. 3. Products differentiation The products differentiation identified between The Body Shop and L’Occitane is that The Body Shop employed in its beginnings business ethics that are until today considered “fashionable” in social responsibility whilst L’Occitane uses packaging and design as a method of gauging its social or environmental impact. This meant that The Body Shop is more well-rounded and encompassing in its approach with a thorough consideration of sourcing, employee welfare, and social-environmental commitment. L’Occitane focused on its product packaging with the goal to someday incorporate design in their products. 4. Target audiences and market sectors Both brands target the same socially and environmentally-conscious consumers, both men and women, who are not restrained by finances and access to information and socially-relevant products. The demographics of their market may encompass a large segment, as mentioned, both genders, and probably, a wider age range. One of the more advantaged on the wider market segment age range is Body Shop for its use of natural ingredients which may immediately translate to safe use by the whole family. The marketing communication process of the Body Shop also aids in reaching a wider and more responsive audience. Wider awareness, according to the survey conducted by The Body Shop (2009) indicated consumer loyalty as well as use of wider range of products. By encompassing a wider social and environmental commitment, The Body Shop also edged L’Occitane in reaching a bigger market and audience as well as informing their audience about what they do and offer. 5. Communication The communication process of L’Occitane is limited as compared to The Body Shop. The acquisition by L’Oreal definitely provided a substantial edge on the marketing communication adopted by the Body Shop over L’Occitane. As suggested by Tranfield (2006), management is a science that incorporates the need to clarify the identity of management and reposition it “as a design science that complements more explanatory sciences,” (414). This has provided a basis for the adoption of The Body Shop for a method of design, clarification and identity which was consistent from the beginning, and which lend it an upper hand on branding. As Tranfield (Huff et al, 2006) further explored, identity that was established by The Body Shop created a shared sense of purpose for its stakeholders. Design encompasses the production of field-tested and grounded technologies (Huff, Tranfield, and van Aken, 2006; Fisher, Ury, Patton, 1981) that solve relevant problems or concerns. On top of its packaging which L’Occitane has recently achieved and developed, The Body Shop went way ahead in its campaign for various causes from human rights development provided for its supplier-workers and employees, community-trading that resonates improvement in communities they deal with, as well as environment concerns with focus on the delivery of naturally sourced products (Ahlava and Edelman, 2009). Whilst the brand and message being communicated may be huge and varies in concerns, The Body Shop was able to sustain a cohesive approach with the use of the materials featured here as well as cooperation with media entities like MTV. These causes, however, were all incorporated on both brands from manufacturing, packaging, delivery, marketing and promotions, shop design, up to post-consumer concerns, such as recycling, sorting and reuse (Emmit, 2007). On the after-sales communication, L’Occitane edges The Body Shop for its intensive environment improvement campaign as it is focused on decreased waste consumption that it hopes to rub on its customers. 6. Conclusion There are several and various ways that design has been incorporated thoroughly in the management process of L’Occitane and The Body Shop. In comparison, while The Body Shop has employed outsourcing or contract basis for its suppliers and focused on product development and marketing, it has tapped on a core of socially relevant issues that address sustainability and which it used for its marketing campaigns. On the other hand, the focus of L’Occitane on environment impact has kept it at a slower pace on brand image development against The Body Shop. Whilst environment is the biggest issue that has emerged globally the most recent decades, sustainability has linked the environment, society and all forms of human activities as one that delivers a common goal. This made The Body Shop went ahead of L’Occitane in their marketing communication campaigns despite their common year of establishment. Sustaianbility is the bigger picture that The Body Shop tapped, whilst L’Occitane only tapped a portion of it; the environment factor. Design in the process of The Body Shop has a well-focused vision that started in its beginnings. The conduct of business has been designed by Roddick to balance profit and community benefit that also embodied consideration for the environment. This consistent design has provided a well-founded marketing approach to The Body Shop that it can continue improving throughout its lifetime. On the other hand, L’Occitane will need to focus, refocus and reposition its products as they integrate other sustainable ways in their design management process. Reference: Ahlava, A.; Edelman, H. 2009. Urban Design Management: a guide to good practice. Taylor & Francis. pp. 242. Burdek, Bernhard E. 2005. Design – Geschichte, Theorie und Praxis in der Produktgestaltung (3rd ed.). Berlin: Birkhauser – Verlag fur Architektur The Body Shop. 2009. Living our Values. Values Report 2009. Bourgeois, Jean-Yves. 2011. L’Occitane: eco-design as a global process. Accessed April from Premium Beauty News - www.premiumbeautynews.com Emmit, Stephen. 2007. Design Management for Architects. Oxford: Blackwell Publishing. Fisher, R.; Ury, W.; Patton, B. M. 1981. Getting to yes: negotiating agreement without giving in. Boston: Houghton Mifflin Gorb, Peter. 2001. “The design management interface”. In Designthinkers. edited conference transcript. 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