The Body Shop: A Case Study in Marketing and Communication

This report examines The Body Shop, a British cosmetics company, through the lens of marketing principles. It explores the importance of understanding customer needs and demands, analyzes the company's marketing environment, and delves into its marketing mix strategies. The report also includes a competitor analysis, comparing The Body Shop to key rivals like Lush, and highlights key areas for improvement.

Marketing and Communication
1

Contents
Introduction................................................................................................................................3
Task1 Needs, wants and demands..............................................................................................4
a. Understanding customers’ needs, wants and demands is at the centre of every successful
business. Discuss the importance of The Body Shop understanding its customer’s needs,
wants and demands.................................................................................................................4
b. Identify and discussthe marketing orientation/concept that The Body Shop adopts..........5
Task2 Marketing environment...................................................................................................6
a. Explain the relevance of an organisationanalysing the marketing environment................6
b Considering the macro environment of The Body Shop, identify and discuss one social
and one environmental factor that could impact The Body Shop’s business operations.......7
c. Lush is one of the key competitors of The Body Shop in the UK. Explain the relevance
of The Body Shop conducting a competitor analysis.............................................................8
d. Using one of the competitor analysis templates develop a competitor analysis table for
three key competitors of The Body Shop in the UK..............................................................9
e. Discuss the findings of the competitor analysis in task d above, highlighting key areas
for The Body Shop to consider.............................................................................................10
Task3 Marketing mixes............................................................................................................11
a. Identify and describe The Body Shop’s............................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13
2

Introduction
Overview of the Body shop
The body shop is a British based company which is providing the goods and services related
to cosmetics, aroma perfumes and other skin care products. The company has been
established in the year 1976 and the business was started by Dame Anita Roddick. He was
the campaigner forBritish environment and human rights. In the beginning, the firm has just
started with 25 products. The company is socially very much responsible and is motivating
and encouraging the public to recycle the packages. Also, the firm is majorly focusing on the
natural ingredients which are ethically very right for the society as well as for the company. It
has expanded its operations later in many places and the customers have consistently
increased and were loyal to the firm. In the year 2006, the body shop’s shares and ownership
have been sold to the biggest giant in the cosmetic industry that is to L’Oreal in a handsome
amount of £652m. Later, in the year 2017, the ownership has again transferred to another
company called Natura in£880 million. This company is one of the finest organisation which
has started the operation with the motive to serve in an ethical and right manner.
Purpose of the report
The main objective to perform this study is tounderstand the customer needs and demands
which an organization needs to determine before producing or selling the goods or services.
The importance of understanding this is the prime concern. Along with this the marketing
environment where the promotional activities of the firm need to be done is also a major
aspect to be focused. The marketing is very important factors of the company which will also
be considered and understood in the context to Body Shop Company. Hence, these three
aspects are the main objectives for carrying out this project.
3

Task1 Needs, wants and demands
a. Understanding customers’ needs, wants and demands is at the centre of every
successful business. Discuss the importance of The Body Shop understanding its
customer’s needs, wants and demands
The customers are the king of the market; therefore it is very necessary for the organisation to
understand what actually the customers are willing to have from a firm. The customers are
rationale and it is not necessarily the products which are been offered by the firm will always
be accepted by the customers in the same way the firm is offering. Sometimes the company is
flawlessly working but still, it could not able to meet the market challenges and requirement.
This is the only reason the company is not concerned about the needs and requirements of the
customers. The understanding for the needs wants and demands of the customers by Body
shop company is very important as with the help of this the firm will get to know what are the
actual things which are been required by the customers in the market (Pearson, 2016).
Significance
 Growth in the competitive market
 Challenges and threats can be managed effectively.
 The better and enhanced operations and activities can be done.
 It will help in fulfilling the needs and demands of the general public.
 Helps in attaining and increasing the level of customer’s satisfaction.
 The end goal of the firm could be attained effectively (Pollard, et. al., 2016).
4

b. Identify and discuss the marketing orientation/concept that The Body Shop adopts
The marketing is basically the method used by the company which is necessary to promote
and creates awareness about the products and services which is been [produced by the
company. There are several concepts of marketing which the companies in the UK at the
present time are using.
Source: (Author, 2018)
There are several concepts but the most effectively used marketing concept by Body Shop
Company is the societal marketing concept. This is very effective and appropriate as this
concept is not only focusing and concerning about the needs and requirements of the
company as well as the customers but also the concerning aspect is the society’s welfare and
long-term interest. The Body Shop Company is focusing on the aspect that the services and
offerings which will be made by it will also provide long-term benefit to the customers and
the people of the society. This is very appropriate as the society will always be preferred to
the one who is availing them the best for what they pay. Therefore, the company’s concept of
doing marketing is not to just deliver what customer’s wants but also that aspect which ill is
making the society to get grow and live a satisfactory life (Sheth and Sisodia, 2015).
5
MarketingconceptProductionconceptSellingconceptSocietalmarketingconceptExchangeconceptProductconcept

Task2 Marketing environment
a. Explain the relevance of an organisationanalysing the marketing environment
There is a great relevance for an organisation to conduct a market environment analysis. This
is so because the marketing environment is the combination of internal as well as external
factors that have a great bearing on the company’s operations and efficiency. The marketing
environment includes such factors which impact upon the company’s ability to establish and
perform in the market and serve its customers.
The marketing environment is broadly classified into two categories such as micro factors
and macro factors. The assessment of micro factors helps in analysing the impact of internal
factors which have a direct bearing on the company. On the other hand, the macro factors are
those which are external to the company and contain both the direct and indirect impact on
the organisational function.
Relevance
 It helps in understanding the factors to which the business is surrounded with.
 It is crucial for planning the organisational resources and making important
organisational decision (Armstrong, et. al., 2015).
6

B Considering the macro environment of the Body Shop, identify and discuss one social
and one environmental factor that could impact The Body Shop’s business operations
The macro factors are those external elements which are having a great influence on the
operations and activities of the firm. This is very necessary for the organisation to understand
so that the possible challenges and problems can be able to get met by the management of the
company. The external factors are having a direct and both positive and negative impact on
the operations and activities of the business, therefore the understanding of the influence of
these factors are very important. There are basically six elements of the macro environment,
political economic, social, technological, environmental and legal factors which are to be
understood how it will be impacting the business operations and activities (Van Wormer and
Besthorn, 2017).
Change in the taste and preferences comes under the social factor which will be having a
negative impact on the company’s operations as the customers will switch and the firm will
have to bear losses due to low selling.
The company is using natural and environmental materials, but the resources are decreasing
which has to be protected for long, therefore the use of environmental products may hamper
the business activities of the business and profitability will get a decrease (Chaffey and Ellis-
Chadwick, 2016).
7

c. Lush is one of the key competitors of The Body Shop in the UK. Explain the relevance
of The Body Shop conducting a competitor analysis
In order to understand the marketing competitor and competitor’s pricing strategies it
becomes crucial for Body Shop to conduct the competitor analysis. With the help of
competitor analysis the company is able to know the various things.
 The competitor analysis is important for knowing the marketing strategies of Lush
and also to examine the level to which it is influencing the business of the company
Body Shop.
 The competitor analysis is helpful in making of the competitive strategies so that
Body Shop can attain a specific position in the market and gain competitive advantage
in the dynamic business environment (Slater, et. al., 2010).
8

d. Using one of the competitor analysis templates develops a competitor analysis table
for three key competitors of The Body Shop in the UK.
Competitive analysis
Factors Body shop company Lush company
Products  Body butter
 Fragrances
 Skin care (Fan, et.
al., 2015).
 Fresh and unique
products
 Natural ingredients
used items
 Handmadegoods
Price  Premium pricing
 Competitive pricing
Penetration pricing is
effectively used by the
company
Place Different outlets in more
than 66 nations of the world.
The company is having
different chain-based stores.
Promotion The societal marketing
concept is being effectively
used by the body shop
organisation.
Personal selling as well as
the direct marketing concept
is being adopted by it
(Bahadir, et. al., 2015).
9

e. Discuss the findings of the competitor analysis in task d above, highlighting key areas
for The Body Shop to consider.
The competitor of Body shop company is also using very similar kind of strategies; this is
creating a high level of threat to the company. it is very important for the organisation to use
the more effective and appropriate strategies to meet the requirements of the market along
with this the firm also need to develop all its planning and tactics in a different manner. The
competitor is reaching to the customers by meeting them personally, and selling the products
to them directly, this is one of the best approaches which have been used by the company.
Therefore, it is very important for the Body shop company to also do creativity in its function
of promotions and other activities as well. The firm also needs to change the pricing
strategies as well, because the premium pricing is only being affordable by the higher-level
class people of the society and the others will not be able to use the benefits and assistance of
the products offered. Therefore, the concerning things for the Body shop company are that
the firm needs to develop and enhance its current strategies and plans in the most required
manner. Also, the products and services have to be very supportive and must have quality in
nature. The customer'ssatisfaction necessary and changing needs of the customers also need
to be fulfilled in the appropriate and required way.
10

Task3 Marketing mixes
a. Identify and describe The Body Shop’s
i) product and service offerings- The company is majorly into the cosmetic sector which is
very effectively operating in the market there are several products which is been offered by
the company in the UK market which is helping it to draw in the attention of the customers
towards its offerings. The products which are offered by it are-
 Body butter
 Skin care products for men
 Fragrances which are for both men and women.
 Hair care products for men and women.
 Skincare items for the customers.
ii) pricing strategies- The pricing is one of the strategies through which the company can
attract the customers to buy the products instead of others. There are different strategies
which are to be used by the firm, the best one will be used which ultimately will result in
attaining the growth and sustainability in the market. The company is basically using two
different pricing strategies, premium pricing for the premium goods and products and at the
same time, competitive pricing is also being used by it as this with help in competing in the
competitive world (Bhasin, 2016).
iii) place strategy – The placing strategy is one if the aspect which is been used by the
company for making the products and service reach to the customers. The placing strategy of
the company is very strong as it has several outlets which are present nearly at 66 countries.
The availability of the products is very easy for the customers. Through outlets and different
store, the company is reaching to the customers.
11

Conclusion
From the study, it has been understood that the company at the present time need to
understand the needs and demands of the customers so that the firm can be able to deliver the
services to the clients in the best possible manner. From the study it can be concluded that the
Body shop has transferred its ownership to L’Oreal in the year 2006 and later in 2017 Natura
company has owned the operations. The marketing approaches are several in the market
which can effectively be used by the firm but the Body shop company is using the societal
marketing concept which is very effective and suitable for it as the concern is for the welfare
of the customers as well. In this study, the discussion about the company’s marketing mix has
also been done to better understand about the offerings and different strategies used by it. The
marketing environment where the company is operating has been understood in this
discussion which helps in knowing the different elements of the environment which need to
be considered by the firm. The comparison of the body shop with its competitors in the UK
market has also been understood in an effective way.
12

References
 Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an
introduction. Pearson Education.
 Bahadir, S.C., Bharadwaj, S.G. and Srivastava, R.K., 2015. Marketing mix and
brand sales in global markets: Examining the contingent role of country-market
characteristics. Journal of International Business Studies, 46(5), pp.596-619.
 Bhasin, H., 2016. Marketing mix of the Body Shop. [Online]. Markleting91.
Available at: https://www.marketing91.com/marketing-mix-of-the-body-shop/.
[Accessed: 29th June 2018. ]
 Chaffey, D. and Ellis-Chadwick, F., 2016. Digital marketing. Prentice Hall.
 Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for
business intelligence through the lens of marketing mix. Big Data Research, 2(1),
pp.28-32.
 Pearson, S., 2016. Building brands directly: creating business value from
customer relationships. Springer.
 Pollard, D., Chuo, S. and Lee, B., 2016. Strategies for mass
customization. Journal of Business & Economics Research (Online), 14(3), p.101.
 Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform? Fresh
perspectives on the future. Routledge.
 Slater, S.F., Hult, G.T.M. and Olson, E.M., 2010. Factors influencing the relative
importance of marketing strategy creativity and marketing strategy implementation
effectiveness. Industrial Marketing Management, 39(4), pp.551-559.
 Van Wormer, K. and Besthorn, F., 2017. Human behavior and the social
environment, macro level: Groups, communities, and organizations. Oxford
University Press.
13