SWOT Analysis of The Body Shop with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis
The Body Shop
Beauty product retail
Nature's way to beautiful
Higher income, urban man and women
Beauty and health conscious women of higher income group, cosmopolitan customers
Luxury natural care for the body
1 Huge franchisee network of 2,600+ franchised stores in 60+ countries
2. Wide range of products of more than 1,200 and a culture of continuous innovation in its product variety
3. Well-designed store layout and ambience creates customer attraction
4. Has a high brand value and is viewed as a socially responsible company because of its engagement in many philanthropic activities
5. Very good supplier network. Sources raw materials through Community trade fairs.
1.There is very little advertising of its products
2. Due to franchisee system little control by the proprietors
3. Number of retail outlets limited which impacts sales volumes
1. With the increasing awareness of natural and eco-friendly products it has a huge potential to grow
1. The products use some exquisite raw materials from all across the world. So legislations or some problems in trade with supplier countries can heavily impact its operations
2. There is very stiff competition in the cosmetic market with a new brand launching itself every day. Some companies are selling natural products made according to the customer’s needs and may become a serious threat to The Body Shop
3. Economic downturn can hamper sales
1. Alliance Boots GmbH
2. Bath & Body Works, LLC
3. Sephora USA, Inc.
The table above concludes the The Body Shop SWOT analysis along with its marketing and brand parameters.
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Swot Analysis Of Body Shop
- Length: 745 words (2.1 double-spaced pages)
- Rating: Excellent
SWOT Analysis of Body Shop’s retail outlet in Canada Water
Body Shop International (Body Shop) is a multinational company which is mainly producing ecological skin and hair products. Their products are solely based on natural ingredients and manufactured according to an ethical code which is opposed to animal testing. The cosmetics franchise is considered to be one of the biggest around the globe with a well established reputation in 54 countries. L’Oreal, the dominant company in the beauty industry, acquired Body shop in 2006. Although Body Shop has become a subsidiary of L’Oreal S.A it still acts according to its own policy, values and ethical code. The acquisition has solved Body Shop’s financial problems and has provided the means for expansion to a bigger market share.
This report will be a SWOT analysis of Body Shop’s retail outlet in Canada Water. It will mainly focus on:
• Strength, weaknesses, opportunities and threats of the particular retail outlet.
• What was the effect of the acquisition on the particular branch.
• Brand Loyalty – Body Shop is greatly dependent on its brand reputation which is a critical factor in sales. Due to its unique products, it has come out to be seen as one of the most environmentally friendly retailers.
• L’Oreal’s support – By being a subsidiary of L’Oreal, Body Shop appears to have an increase in sales. Furthermore, L’Oreal’s experience in advertisement and marketing can boost overall sales.
• Niche marketing – Body Shop targets a niche market. By stating that it is not testing its products on animals and by appearing to have an ecological profile, it has appealed to customers with ethical issues. Being the only shop in the shopping centre that sells ecological products, has given it advantage in the local market.
• Charity support - Body Shop provides financial aid in charities by giving small amount of money from particular products they sell. Body Shop’s support in local charities and non-profit organisations enhances its image in the local society.
• Slow service – Body Shop’s location, inside a shopping centre where it is always crowded, in combination with the fact that there is inadequate personnel results in slow service for the customers. Customers may be discouraged and might prefer a retail outlet in a central location.
• Product development – Body Shop can take advantage of L’Oreal’s experience in research methodology and efficiency in order to improve and develop their own existing products.
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Body Shop Swot Analysis Shopping Centre Niche Marketing Brand Loyalty Market Share Financial Aid Outlet
• The male grooming products – The increase in the usage of male grooming products indicates that there is a demand on this particular niche market. Therefore the supply of a wider range of products for men can increase overall sales.
• Brands comparison – L’Oreal can prove to be harmful for Body Shop’s reputation. The public perception of Body Shop as ethical can be altered due to the fact that L’Oreal is considered to be unethical.
• Competition - Body Shop can face competition in Canada Water if a company that also produces natural based products e.g. LUSH, decides to open an outlet inside the shopping centre.
Preserving a good image:
• The management should inform the customers that Body Shop International is still following their own policy, even though if it has entered the L’Oreal Group, so as to preserve a good positive image.
• Faster services should be provided to the customers either by hiring more employees or by improving their own efficiency so as to achieve better financial outcome.
The retail outlet in Canada Water has gained a competitive advantage by being the only shop that sells natural-based products in the area. Customers prefer it due to the fact that it has established its brand name for over 20 years and their products are unique. The introduction of a new range of products has given the opportunity to attract a new segment of the local market, men. By being under the umbrella of L’Oreal, it can take advantage of their marketing strategy and their reputation in order to increase their sales. There is, though, the possibility of being compared which is going to have the opposite effect. The absence of a competitor near or inside the shopping centre, contributes to their monopolization in the local market. However their service is slow and it should be improved in order to avoid future fall of sales or in the number of clients.