Business Environment and STP Analysis of Body Shop Company

This report discusses the business environment associated with Body Shop Company, including political, economic, social, and technological factors. It also covers the STP analysis of the company and its marketing mix. Recommendations for expanding the business in Southampton are provided.

E-PORTOFOLIO - -
BODYSHOP - -

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Business Environment.......................................................................................................................3
Internal Analysis................................................................................................................................4
STP Analysis.....................................................................................................................................4
Research............................................................................................................................................5
Marketing Mix...................................................................................................................................6
Recommendation...............................................................................................................................6
CONCLUSION.....................................................................................................................................6
REFERENCES......................................................................................................................................8

INTRODUCTION
Marketing is a process to promote company’s products and services in target market.
This report is based on the case study of Body Shop Company. Body Shop Company was
established its business in the year 1976. Organisation deals in the beauty products for female
customers. Henceforth, report will project the business environment associated with the Body
Shop Company. SWOT Analysis will also draft of the company. Precise information related
to the STP Analysis of Body Shop Company will be framed. Furthermore, report will also
discuss about the elements of marketing mix associated with the company.
MAIN BODY
Business Environment
Business environment associated with the Body Shop Company is segregated in
following parts. This entire environment is a situation in which organization operate its
business operations. Environment comprises with factors like political, economic, social,
technological and other such factors.
Political Factor: Political factor involve all policies of government associated with the
corporate sector. Government in UK has been very supportive towards the growth and
development of corporate sector in country. As the corporate sector play huge role in the
economic growth of the country.
Economical Factor: Economical factor comprises with different aspects such as GDP
growth rate, currency exchange rate and many other aspects associated with the economy of
UK. Inflation in the economy is also among the key factor impact the business of the Body
Shop Company associated with the economical factor.
Social Factor: Social Factor involves culture, social values and beliefs of the people,
religion, diversity and other factors associated with society (Gherasim and Gherasim, 2016).
All factors involve in social factors directly influence the sales of Body Shop Company.
Fashion involved in business environment is also among the key aspects involved in the
social factor.
Technological Factor: Technological factor involve all technological advancement and
development of country. Government in UK give huge emphasis over technological
advancement of society. All factors involve in technological factors directly influences the
business growth capacity of the company.

All the above factors denotes the business environment of company.
Internal Analysis
Internal analysis of the Body Shop Company will be summarised in following
manner.
Strengths of Body Shop Company
 Effect brand value of Body Shop Company.
 High customer loyalty towards company’s products.
 Affordable price structure.
 Well diversified product range.
 Effective supply chain network.
Weaknesses of Body Shop Company
 Outdated technology.
 Company’s marketing strategies are ineffective (LATINI, 2019).
 Similarity in the product portfolio.
Opportunities of Body Shop Company
 Product development strategies.
 Product extension opportunities.
 Market expansion opportunities.
 Online sale with the support of ecommerce websites is a huge opportunity for
company.
Threat of Body Shop Company
 Competition in market is a huge threat for company.
 Huge traffic on ecommerce websites that provide opportunities to local traders.
 Fluctuating nature of market.
 Inflation in the economy is a huge threat.
All the factors indicate the internal analysis of the company.
Consumer behaviour

Consumer behaviour is defined as identifying about the individual behaviour of
customers in market. Body Shop Company deals in cosmetics which require company to
understand about the factors influence the buying decision of customers. Benefit of
understanding the customer behaviour is in form of easily attract the customers to buy the
product offer by Body Shop Company. The current users are identified as lower middle class,
middle class and upper class economic background peoples.
STP Analysis
STP Analysis tool involve segmentation, targeting and positioning strategies of the
company.
Segmentation: Segmentation is defined as a strategic way to segment company’s products in
target market. Segmentation is an effective strategic tool involve in STP Analysis. Marketing
team of the Body Shop Company will segregate the entire retail market into different
categories based on some common characteristics such as needs, wants, expectations, fashion
and other common elements of society. Company analysis the customer group that will
mostly like to procure the products of Body Shop Company (Luzhkovoy and et.al., 2017).
Marketing team will assess the needs of different customers group of society under
segmentation strategy. Income structure will play a key role in segmenting customers in the
retail market of Southampton. In order to conduct segmentation company will utilises the
demographic segmentation, Psychographic segmentation and behavioural segmentation.
Company will assess the age, gender, religion, income and education of the people in
Southampton under demographic segmentation. Marketing team will also assess the interest
of people, life style, values and attitude of people in Southampton in psychological
segmentation process. Purchasing behaviour will be analysed under behavioural segmentation
process. Communication channels such as email, social media and calls will be used to
conduct the segmentation.
Targeting: As the segmentation process is conducted company will analysis the target
customers for each customer category based on the segmentation process. Based on the needs
of different customer groups under market segmentation Process Company will decide target
customer for each products category of company.
Positioning: On the basis of teh outcomes of the segmentation and targeting Strategies
Company will frame suitable strategy for the positioning of each products of the Body Shop
Company. Company will draft strategies as per the target customers finalised under targeting
process of STP Analysis. Company will position its products with the support of marketing
campaign run over social media, radio and television. Company will use holdings to promote
its products based on the different target group customers.

Research
Primary Research: Marketing team of Body Shop Company will take customers reviews
over company’s products in Southampton under primary research. Company will also take
customers feedbacks in respect to the needs of the customers.
Secondary Research: Marketing team of Body Shop Company will also use secondary
research. Company will review all the researches already conducted over the needs of the
customers.
Both the research will guides company in respect to the needs and expectations of the
target customers in Southampton.
Marketing Mix
Marketing Mix of the Body Shop Company can be summarises in the following
manner.
Product: Products of the Body Shop Company is well diversified in nature as company
offers more than one thousand products of different categories. Company is more keen
towards providing environment friendly products to its target customers (Mezzanatto-
McNair, 2019). Company caters skin care products to heal and nourish different skin types
such as oily, dry and other skin types. Company also offer products like shampoo,
conditioners, combs and brushes.
Price: Price range of the products offer by Body Shop Company is consisted as affordable in
nature. Company’s business aim is to serve the quality products in the affordable price range
so that customers do not feel more burdens over the pocket. Affordable price structure of the
company will drive the success in the retail market of Southampton.
Place: Southampton is an effective place in respect to growing up the business. People are
very keen towards fashion and grooming products (Smigielska and Stefanska, 2017).
Company will target to all people with the support of its marketing campaigns and affordable
products.
Promotion: Marketing team of the Body Shop Company will channelize its promotional
activities over social media, radio, television and holding at different places in Southampton.
Company will also utilise different communication channels to interact with target customers
in Southampton.
All the four elements indicate about the marketing mix of Body Shop Company.

Recommendation
Body Shop Company plan to open a new outlet at Southampton to expand the growth
potential can be projected as the profitable business plan. Company has a diversified products
range that also available at affordable price range. People in Southampton are also keen
towards trendy products. It can be recommended that Body Shop Company can make
effective outcomes out of the business operations at Southampton.
CONCLUSION
This report has concluded about different macro and micro environment factor of
business environment such as political and other factors. Company will conduct segmentation
as per the income group, needs of the customers. Targeting will be conducted based on the
segmentation outcomes. Company will position its products with the support of social media
and other marketing strategies. Company has conducted primary and secondary research to
assess the needs and demands of different target customers group. Marketing mix elements
like products, price, place and promotion has also analysed in this report.

REFERENCES
Books and Journals
Gherasim, A. and Gherasim, D., 2016. The Role of Distribution in the Marketing
Mix. Economy Transdisciplinarity Cognition. 19(1). p.78.
LATINI, M., 2019. FACTORS THAT INFLUENCE THE ADOPTION OF AN ONLINE-TO-
OFFLINE STRATEGY IN RETAIL (Doctoral dissertation, Maynooth University).
Luzhkovoy, D. S. and et.al., 2017. The analysis of the external factors influence on the
efficiency of the absorption heat pumps inclusion in the scheme of a two-stage line
installation of a STP. In MATEC Web of Conferences (Vol. 141, p. 01059). EDP
Sciences.
Mezzanatto-McNair, S., 2019. An Analysis of Business Strategies for Economic Growth and
Expansion of Digital and Online Tech Industry: Southeast Asia and United States.
Smigielska, G. and Stefanska, M., 2017. Innovative positioning as a marketing tool of
retailers on the food market. Entrepreneurial Business and Economics
Review. 5(1).p.77.