Marketing Management - Body Shop Company - Case Study Example

L’Oréal acquired The Body Shop in March 2006 for £652 million. The acquisition has been controversial and engendered boycott threaten especially from the charity “Baby milk action” and “The ethical consumer magazine” (Kent and Stone 2007). The Body shop counted for O.9% of the L’Oréal brand shares in the UK market in 2011 (Euromonitor 2012).

Due to its diverse location in the international market, the company is susceptible to changes occurring in the external market. The changes can indeed affect the trend of the consumer and the consumption climate. However, with various strengths and opportunities that the company prides on, it has been able to penetrate the cosmetic market and created a niche. The main targets of Body Shop Company products are young people between the age of twenty and twenty-seven. Despite the saturation of major cosmetic companies in the industry, the company prides itself as one of the fastest-growing companies in the industry. The Body Shop cosmetic shops in the Hull area are increasingly doing well. This is as a result of various undertakings by the management to ensure the smooth flow of the business.

This paper aims to offer a holistic view of the market to The Body Shop and provide them with strategic insight in order to position its product during the spring of 2013 in Hull (UK). The report will be firstly composed of a deep analysis of the macro-, micro-, and the internal environment. We will derive a SWOT from all the previously collected data and conclude by setting marketing objectives as well as providing strategic recommendations related to our findings.

2.0 Situational analysis
2.1 Internal environment
The internal environment provides the controllable factors that affect the marketing strategy of the company.
2.1.1 Company Mission
To tirelessly work in order to narrow the gap between practice and principle, while making care, passion and fun a part of our lives
2.1.2 Company environment
The Body Shop Company is a cosmetic company that provides and markets personal products internationally. It was founded in 1979 by Anitta Ruddick and her husband.
2.1.3 Strategy
The Body Shop Company follows a strategy of growth through a geographical expansion, via franchising as a basic strategic tool. At the moment, there are 150 franchises, 278 stores and 129 owned stores. Prospective franchisees undergo extensive testing and interviewing so that they can be a good fit with the Body Shop Company.
2.2 Customer environment
The demographic of the company is simple. It is for fashion-forward men and women. The company is targeting professional make-up artists; nevertheless, most of the company’s products are so sold publicly, therefore, the customers can buy the products at any outlet. Still, there is a Pro collection that is only accessible to professionals only. The company's purpose is customer-oriented and designed for all ages, races and sexes. However, major customers are between the age of twenty and twenty-eight.
2.3 External environment
With the company taking the brands into foreign countries, the issue of foreign exchange, interest rate and terrorism are raised. Interest rates contracts for the company in the year 2011 were thirty million dollars. Terrorists and retaliation pose a threat to the opening of new stores in Arab countries. However, the latest annual report indicated that sales were up to thirty throughout the Arabian countries. In addition, half of the net sales were collected from foreign countries. The increase in sales is a result of people wanting and the ability to have a personal pampering. It is obvious that the company’s customers are optimistic about the current condition of the economy and therefore, the company will grow regionally and financially.
Technology advancement is tremendously growing in the company. The online environment will increase sales significantly. A concentration on an online advertisement will be a benefit for the promotional aspect of Body Shop.