Market Analysis for The Body Shop's Expansion into Argentina

Individual Written Report
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Contents
1.0 Introduction..........................................................................................................................3
2.0 Product/Service Nomenclature and Brand Theory...............................................................3
2.1 Kotler’s product levels analysis through Company, Brand, Product/Service..................3
2.2 Core, Formal and Augmented ('CFA') Analysis...............................................................4
2.3 Kapfaerer’s Prizm.............................................................................................................4
2.4 Ansoff Matrix...................................................................................................................5
3.0 Analysing the Market...........................................................................................................5
4.0 PESTEL Analysis.................................................................................................................7
5.0 Examination of Markets by Segment, Target, and Position.................................................8
5.1 Segmentation....................................................................................................................8
5.2 Targeting...........................................................................................................................9
5.3 Positioning........................................................................................................................9
6.0 Consumer Journeys and Insights........................................................................................10
7.0 Examining Niche Markets..................................................................................................10
8.0 Analysis of Consumer Attitudes and Behaviour................................................................11
References................................................................................................................................13
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1.0 Introduction
Founded in England in 1976, The Body Shop is now a worldwide leader in the cosmetics and
skincare industries (Thebodyshop.com, 2023). Company, Brand, and Product/Service are the
three tiers of the company's product/service naming scheme derived from Kotler's product
levels analysis. This paper will analyse a potential overseas market for The Body Shop's
growth beyond its current domestic market. This study will justify the new market option and
locate unmet needs and emerging opportunities driven by the market. The potential for
extending British markets into Argentina is the primary emphasis of the paper.
2.0 Product/Service Nomenclature and Brand Theory
2.1 Kotler’s product levels analysis through Company, Brand, Product/Service
Kotler's product levels analysis provides a framework for examining a company's offerings.
The Body Shop's commitment to ethical and sustainable practices is its main advantage at the
company level (Ma et al. 2021). The company has always been open about its goals to
improve people's lives via items inspired by nature and positively impact the world through
sustainable practices. The Body Shop, for one, has long been against animal testing and, in
1996, became the first global beauty brand to advocate for a ban on animal testing in
cosmetics. Effective and high-quality all-natural and organic personal care products are The
Body Shop's generic product at the brand level (Thebodyshop.com, 2023). The natural
components, eco-friendliness, and ethical business practices are the cornerstones of the
brand's identity.
The ingredients are obtained fairly and sustainably, and the brand's packaging is constructed
from recycled materials. As a result, the brand has developed a solid reputation in the beauty
sector as a sustainable and ethical brand (Thebodyshop.com, 2023). At the product/service
level, The Body Shop should provide the characteristics people look for in all-natural
cosmetics and toiletries. Customers can trust that the company's goods are safe and won't hurt
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the environment since they are made with organic and natural components. Additionally, the
augmented product level of the company contains elements that go above client expectations,
such as its refill scheme and recycling programme (Thebodyshop.com, 2023). Because of
this, the brand has built a dedicated following of consumers who respect its commitment to
ethical and sustainable business practices.
2.2 Core, Formal and Augmented ('CFA') Analysis
The Core, Formal, and Augmented (CFA) analysis examines the many levels of value
provided by a company's goods or services (Zanger et al. 2022). When applied to The Body
Shop, this framework reveals that the store's natural and organic items most directly
contribute to a feeling of well-being and self-care. The overt benefits are the goods' high
standards of quality and safety, as well as their eco-friendliness and commitment to ethical
manufacturing. The company's refill and recycling programmes, which provide extra value to
environmentally concerned consumers, are part of the augmented benefit, which also includes
additional services that go above and beyond what customers anticipate (Thebodyshop.com,
2023). The CFA analysis of The Body Shop emphasises the importance of the company's
commitment to sustainability and ethical practices as part of the brand's value proposition.
2.3 Kapfaerer’s Prizm
Kapfaerer's PRIZM is a segmentation technique that divides American families into one of 68
distinct lifestyle categories according to demographic and behavioural factors (ADLE, n.d.).
The "Urban Edge" PRIZM, which comprises young, diverse, and educated people living in
Urban areas, is the target audience for The Body Shop. They are a wonderful match for The
Body Shop's brand principles since they are socially concerned and appreciate environmental
sustainability (Thebodyshop.com, 2023). They value high-quality personal care products and
are ready to spend a premium for them, and they are interested in organic and all-natural
ingredients.
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