The Body Shop Marketing Plan Marketing Essay

The em consistence lead astray Marketing protrude Marketing EssayThe purpose of this paper is through with(predicate) outline the afoot(predicate) trade environs to establish the marketing plan of The dead physical structure entrepot in take to help it hold the competitively short letter during the dance of 2013.The context will analysis the external purlieu and the internal environment of the organic structure fink in Hull, and based on these information to do the SWOT analysis to evaluate the current market and try to build up reasonable marketing objectives which argon benefits for the growth of the their market sh be.background of the Body shopAccording to the Bodys discover website, their line of reasoning is about engaging and excite customers around their individual needs for fur keeping and hair c be this relies on attracting and retaining the skills, knowledge and creative talent to deliver excellent harvest-tides with prodigious service to their mi llions of customers worldwide. The company has a presence in all over 51 countries, conducts business in 21 languages, operates nearly 2000 stores (about 70% argon franchised), and employs over 6000 wad in company stores, regional offices and UK-based Service Centre. Products are besides sold via the Body take a shit at Home, an in-home sales program that operates in 48 US states and Australia and via a company website in the US. surroundings analysisIn order to increase marketing bundle in a current market, companies must conductfully examine a host of issues. iodin of the most important issues is the marketing environment. The marketing environment includes both inseparable elements, unrivalled is external environment, the another(prenominal) one is internal environment.External surroundThis part explores that the trading and ability of an organization to satisfy its customers who are catchd by the external forces which fall into two categories the macro and micro fo rces of the marketing environment (Dibb, 2006).Macro EnvironmentThe macro-environment defined by Worthington and Britton (2009, p.6) as those macro-environmental influences on business which affect a wide modification of businesses and which finish emanate non only from local and national sources but a similar from international and international developments comprises the PEST checklist which stands for Political, economical, Sociocultural and Technological.PoliticalThe government will shrink the pay expending, which may further reduce consumers shopping willingness. At the same time, governments exact passed specified law to forbid animal-testing (CNN, 2003). Additionally, this series of industries need to deal with the shoot a line and rubbish, which comes with mathematical production. In this way, all over the nations, societies, and companies would keep a sustainable development and material recycle using. The Hull Council corroborate door stride recycling collection s anda network of recycling sites, and they remove it easy for hoi polloi to recycle.(www.hullcc.gov.uk,2012)Above all, the complete patience should not make any pollution to our environments. Lastly, the countrys political steady is the fall line to keep a regular application chain (Nicholls A, Opal C, 2005).EconomicNot only in the UK but likewise in the whole EU, governments are now all suffering from financial issues more(prenominal) or less. pastime debt-fuelled growth, households re principal(prenominal) laden with debt. As a result, the dish aerial and individual(prenominal) care market saw increase footing consciousness among consumers and thence a switch to family and lot purchases during 2011 (Euromonitor International,2012) . In this situation, its really not a positive circumstance for private label products development. More importantly, in much(prenominal) a negative economic situation, the companies need to do something more, such as promotion and disco unting, or develop some more products for some more potential consumers.SocioculturalIn this section, the health and ravisher industries need to reduce the aging and male potential consumers into consideration, in which way to satisfy their picky needs (Euromonitor International,2012).Secondly, an constancy should be responsible for their customers. The products need to be luxuriouslyly-developed without any synthetic instalments in order to lower the risk for health (Euromonitor International,2012),and withal over half of women refuse to use any stunner products, which have been tested on animals first.(SkinInc,2008).Lastly and equally importantly, Consumers upgraded to one time bulk purchases in categories such as bath and shower, deodorants, hair care and spoken care (Euromonitor International,2012)TechnologyIncreasing the potation of e-commercial sale methods, such equivalent sunrise(prenominal) coming products introduction and promotion on line, dealing and dialog ue over the internet, or business consultants with live video chat. And the company is highly recommended to build their have got website or with some relative partners, via which to display the productions and escalate their scars as well(Euromonitor International,2012).Meanwhile, companies should focus on developing new technologies, for example, whiting, In this way, link companies would also in a positive competitive. intimately importantly, an efficient product is the root of a brand as to a company.Micro EnvironmentMicro environment have a very board influence on every(prenominal) organisation operating in a particular proposition market, from market to distributers to competitors to customers, and such an impact is largely universally felt by such organisations (Dibb, 2006, p89).Market2010 is a year of prosperity and growth for the beauty and personal care industry. The growth rate of the industry value increased from 4% to 5%, which was contributed mostly by the mass m arket. In particular, with 3% value growth following a 0.5% drop in the know year, the recovery of cosmetics was the most eye-catching in this industry(Beauty and Personal dispense tell apart of the Industry, 2011).CustomersTarget audienceThe first tooshie audience is females, age 18 to 34, who have low brand awareness for the system shop and midget discretionary income but still want to indulge in the spa-at-home products.The support target audience is females, age 35 to 55. Currently in the US, thither are 43.98 million total women ages 35 to 55.Buyer power(see appendice3).Customer behaviorThe price in Hull are similar low in the market, and wad use less money to buy convenience products or high price products like house, so people have more degage money to buy beauty products like products which are sold in the Body fink in particular the average earnings have increased. (www.hullcc.gov.uk/,2012)(see appendice8).CompetitorsThe body shops main rival is Bath Body kit and boodle who offers a variety of beauty products. Bath Body Works runs more than 1600 stores in the UK compared to the body shops 300 nationwide stores. In 2009, the turnover of Bath Body Works exceeded 2,300 million dollars, at the same time, it spent more than 915,000 dollars in advertisement(see Appendice7). Compared the website rapscallion with The Body Shop, they are similar except the color, but The Body Shop have a higher high brand committedness(www.dmnews.com/beauty-product-retailers-tick-all-the-boxes-but-only-one-passes-the-sniff-test/article/265442/,2012)(see Appendice9).SuppliersThe suppliers of this industry could also be divided into three classes. The first one is Top-level brands, Most of the suppliers are sold in bulk and the mixed bag of special ingredient is not too much, so the power of the suppliers is stronger than other suppliers. The second one is Mid-Level targets. In this level, the suppliers also produce non-differentiated products and specialize d . The power of those suppliers is also strong, and the transmutation costs are low as the same as top-level brands. The go one is Generic Brands. There are various suppliers in this group, the diversity of the products is low, therefore, the switching costs are low(IAA augmentatives, 2002).DistributorsThere are two main kinds of distributors. One is according to the traditional distributors, the supermarkets played a dominant manipulation in the distribution channel of beauty and personal care industry in the UK, it accounted for a 49.8% share of totality in 2010. (Hand Body Care Industry Profile, 2011)Another one is internet retailing, The internet retailing makes beauty and personal care advanced remarkably.Internal environmentThe last step in the Environment Analysis is gathering information for the internal environment.Brand ImageThe Shop ensures their image by guarantying its cosmetics and personal care products are not tested on ani-mals, and that they contain sustainab ly sourced oils and other vegetarian ingredients (The Body Shop). In addition, the campaigns in which The Body Shop participates is another step they take to make a difference both environmentally and individually.The company promotes beauty is in the customers eye instead of the beholders (Hoovers, 2004).Competitive advantagesIf the company green goddess mete out the products which are hard to copy and have great value which their competitors cannot have, the company own the competitive advantages which can increase their market share and build their brand identity. We compare The Body Shop with LOreal and OlayNivea(see Appendices3,4).Product/ServiceThe Body Shopoperates in the global cosmetic and toiletries (CT) industry. FromEuromonitior, the CT industry includes the following handsome group ofproducts baby care, bath andshower products, deodorants, hair care, color cosmetics, mens dressing products, oral hygiene, fragrance, skincare, sun care anddepilatories. Skin care produ cts are the absolute majority occupying 27% of all products. (Schieffer Multimedia The Body Shop Media invent ). Company has already produced a range of over 600 beauty and health products and more than 400 related accessories including exfoliating bath gloves, mitts, body buffers and so on until March, 2010. These products can further be segmented into two categories based onproduct ingredients those made from natural materials and those madefrom synthetic chemicals.As one thousand policies TBS always pursues, company reduces their packaging by use as bittie packaging as possible in the first place. For the vast majority of products they use simple bottles and jars, with no secondary packaging (The Body Shop Values Report, 2009) and most of their gift packaging can be reused.TBS also provides varieties of run for customers. TBS official website includes a Technical Support area knowing for those experiencing difficulty with the online store. An extensive FAQ section with cat egories pertaining to shopping, ordering, shipping, returns and so on(see appendice1,2).PriceThe prices are ranged from highest 43 pounds to lowest 2 pounds. Compared with the average income level in Hull, the price of TBSs products can be considered as relatively affordable level. Compared with competitors in Hull, the price of TBS is strong point level described as massige price.PlaceIn Hull city, TBS owns two stores managed directly by headquarter. There are also some shops which are run on a franchising basis in Hull. These two shops situation separately in Princes Quay Shopping Centre and St Stephens Shopping Centre which are largest shopping centers in the Hull where can attract quantities of people especially on the weekends.In order to satisfy the customers requirements and obtain timely and dilate market information, the body shop the reduce the distribution channels, they want to do the direct market which do not contain any agents to sell their products. They use their own shops and websites to do the selling.PromotionThe body shop does detailed publicize because they regard stores as the most effective platform to publicise themselves.AdvertisingTraditional media the TBS in Hull advertises on traditional media such as magazines.New media the body shop try to use new media to attract more customers, they make a high profit through the website campaign.TBS develops an e-CRM structure as network marketing of TBS matures and evolves. This system provides different services containing the Body Shop SPA, personalization program and so on. And TBS in Hull also sells products face to face with kind service. Staff of stores in Hull have been train well to be familiar with products and offer good service.(see appendice5)Following the development of the apple online shop they promote their own app software called applaud Your Body. They also build the home shopping party plan in the UK.Personal sellingTBS had built a unique member confederation for lo yal customers where rewards them with discounts, free gifts and access to the kinds of perks and privileges only club membership brings.They also have a lot of discounts and gift packages in different seasons and festivals which can attract customers.SWAT AnalysisStrengths1.Leader of Animal Protection2.Expand E-Commerce Activities3.Innovative products4..High brand loyaltyWeaknesses1.Small go of stores in UK2.Many products are in the mature of declining stage3.little advertisingOpportunitiesBans of animal-testing laws which help the body shop to attract more customers2.Expand The Body Shop at Home Program3.Increased awareness of organic and eco-friendly product4.Increasing number of online buyersThreats1.the shrink finance which influence peoples awareness to buy products2.Competition in Cosmetic Industry3.Risks in Material SupplyMarketing Objectives1.Reinvigorate the body shop in the minds of women who have previous experience with the brand to increase the market share.The body sh op can do some campaign like give people free samples and show people the material of the product.2.Promote awareness of the Body Shop core brand and specific mens grooming product offerings through targeted channels such that at least 35% of the target demographicare aware ofthe products and the unique values ofthe Body Shop.In Hull there are marginally more males in the popular commonwealth than females whilst in the East Riding there are marginally more females, this is likely to be a function of the younger race in the city. The Hull City Assessment Report notes that in Hull in under 70 age bands males outnumber females in every age group whilst females outnumber males in older age groups. This highlights the go along trend towards higher female life expectancy(Economic Development Regeneration, 2011)(see Appendices8 ).ConclusionIn conclusion, in order to get a high market share and attract more customers, the body shop should do more advertising and extend their market to the men.AppendicesAppendice1FIGURE 1 The Body Shop UK Estimated sales as share of UK cosmetics and toiletries specialists sales, 2006-10SOURCE MintelAppendice2FIGURE 2 The Body Shop Outlet data, 2006-102006 2007 2008 2009 2010UKOutlet numbers312322338329311Of whichCompany owned261282299295297Franchises6140393414Estimated sales per discharge (000)542577511477490Estimated sales per outlet (000)797849639536581SOURCE LOral Company Accounts and Annual Reports/MintelAppendice3FIGURE 3 The Body Shop shoppers in last 12 months, by gender, age and socio-economic group, November 2011 quality Bars show The Body Shop shoppers relative to all people who have bought skincare, cosmetics and fragrances/aftershaves in the last 12 monthsSOURCE Ipsos Mori/MintelAppendice4FIGURE 4 The Body Shop shoppers in last 12 months, by ACORN group, November 2011 situation Bars show The Body Shop shoppers relative to all people who have bought skincare, cosmetics and fragrances/aftershaves in the last 12 monthsSO URCE Ipsos Mori/MintelAppendice5FIGURE 5 The Body Shop Online consumer demographics, three month average to October 2011SOURCE comScore/MintelAppendice6 circumvent 1 flurry United Kingdom hand body care market distribution % share, by value 2010Channel% ShareSupermarkets/hypermarkets49.8%Pharmacies/drugstores19.0% medical specialist Retailers13.2%Others18.0%Total nose candy%Source Datamonitor DATAMONITORAppendice7Table 2Compare with other beauty brandThe body shopLOrealOlayNiveaProduct lineprimarily skincareBroadFocus on skincareMarket positionEnvironment friendlyLeaderMajor competitorIn skin body care marketCompetitive advantagesNatural-base brand value genuinely experienced global brandLow price product originationPrice rangeMid-rangeSlightly lower than the body shopMid-low(the body shop, Kannu Priya Rawat 30th Mar 2010)ONS MYE 2009 Hull East Riding GBAppendice8Table 3Resident populationONS MYE 2009 HULL East Riding GBNumber % Number % Number %Resident Population (2009)1 262,40 0 100%337,000 100%60,003,100 100%Males 132,800 50.6%166,000 49.3%29,495,400 49.2%Females 129,600 49.4%171,000 50.7%30,507,700 50.8%Source ONS Mid Year Estimates 20091Percentage is proportion of total populationAppendice9Figure6the average earning increaseSourceHULL ECONOMIC SITUATION update No. 31 28 April 2011Appendice9Table 4 compare the Body Shop with BathBody works