MCOM4040 - Marketing Report: The Body Shop - Analysis & Strategy

This report provides a comprehensive marketing analysis of The Body Shop, focusing on understanding customer needs, wants, and demands, assessing the marketing environment (including social and environmental factors), conducting a competitor analysis, and identifying the marketing mix strategy. The report emphasizes the importance of understanding customer needs and the adoption of social marketing concepts. It also examines the relevance of analyzing the marketing environment and the impact of social and environmental factors on The Body Shop's business operations. Furthermore, it assesses the competitive landscape, highlighting key competitors in the United Kingdom, and discusses the product and service offerings, pricing strategies, and place strategies employed by The Body Shop. The analysis concludes with recommendations for maintaining a competitive edge in the cosmetic product industry.

Running head: MARKETING AND COMMUNICATION

MARKETING AND COMMUNICATION 2
TABLE OF CONTENTS
Introduction................................................................................................................................................................................ 3
Overview of Body Shop..................................................................................................................................................... 3
Outline of Report.................................................................................................................................................................. 3
Task 1: Needs, Wants, and Demands.................................................................................................................................. 3
Importance of The Body Shop understanding its customer’s needs, wants, and demands............................3
Marketing Orientation/Concept that The Body Shop adopts..................................................................................4
Task 2: Marketing Environments......................................................................................................................................... 5
Relevanceof an organisation analysing the marketing environment....................................................................5
One social and one environmental factor that could impact The Body Shop’s business operations..........6
Social Factor..................................................................................................................................................................... 6
Environmental Factor..................................................................................................................................................... 6
Relevanceof The Body Shop conducting a competitor analysis.......................................................................7
Competitor analysis............................................................................................................................................................. 7
Task 3: Marketing Mix............................................................................................................................................................ 8
Product and service Offering............................................................................................................................................ 8
Pricing Strategies................................................................................................................................................................. 8
Place Strategy........................................................................................................................................................................ 9
Conclusion.................................................................................................................................................................................. 9
Reference list........................................................................................................................................................................... 11

MARKETING AND COMMUNICATION 3
INTRODUCTION
OVERVIEW OF BODY SHOP
The body shop is an international company that was developed in the year of 1976 by Dame
Anita Roddick. It is British beauty care, skin, perfume and cosmetic company. In current times, it
deals with over 1000 products that are sold in more than 3049 owned and franchised stores
internationally in 68 nations. Headquarter of this company is in Little Hampton and East
Croydon. The body shop is owned by Brazilian cosmetics firm Natura. Previously, between 2006
and 2017, it was part of the French cosmetic company that is L’Oreal. The mission statement of
this company is to communicate the self-esteem in their environment and among customers as
well as supporters in against of animal testing whereas supporting the community trade and
maintaining the human rights (The body shop, 2018).
OUTLINE OF REPORT
This report focuses on different marketing aspect regarding the body shop. It explains the needs,
wants and demand of customers for the products and services of the body shop. Marketing and
external environment of the company is assessed by recognizing and determining the
environmental factors. Social as well as an environmental factor is addressed that can influence
the growth and business operation of the body shop. Moreover, it also focuses on competitive
analysis by addressing the competitors of a body shop in the United Kingdom. This report also
identifies the marketing mix strategy for the Body shop.
TASK 1: NEEDS, WANTS,AND DEMANDS
IMPORTANCEOF THE BODY SHOP UNDERSTANDING ITS CUSTOMER’S
NEEDS, WANTS, AND DEMANDS

MARKETING AND COMMUNICATION 4
In the current business scenario, understanding the needs, wants and demands of customer’s area
is key aspect of each growing business. There are three key terms in marketing procedures such
as needs, demands and wants. Needs are a condition of self-deprivation among individual. Wants
are desires for particular satisfiers of needs. Furthermore, demands are defined as wants of
human that is backed by willingness and ability to purchase.
It will aid the company to make a strategic decision. In this procedure, the marketer will make
strategies to address the needs, wants and demands in order to reach at the targeted customers
and for better engagement of products and services. The demands, wants and needs are inter-
related and it arises as per the ability, desires,and requirements of customers. Detection of needs,
wants with demand is the significant procedure for Body Shop Corporation. The company
focuses on the needs and demands of customers as per the socio-cultural, income level and
demographic aspects (Trivicram, 2017). The corporation believes to incorporate the needs and
wants of customers as an essential element. It conducts the assessment of market research to
identify the needs of customers. In this investigation, it addresses that customers make demand
regarding value for money, and superior quality but also addresses the requirement for social
with environmental responsibility (Baker, 2016). The body shop emphasizes on potential
customers that are required for selecting the responsible choices. The body shop produces the
product as per the need of customers as it can directly influence the targeted customers. Hence,
the body shop should pool the information regarding customers so that it can offer them the high
extent of customer satisfaction and expand the business (Fuentes, 2015).
MARKETING ORIENTATION/CONCEPT THAT THE BODY SHOP ADOPTS
The body shop implements the social marketing orientation/concepts under its operation of the
business. It is an alignment, which implemented as per code of social welfare. It is stated that the

MARKETING AND COMMUNICATION 5
company should create a strategic decision to address the wants and needs of customers. The
body shop is one of leading example for societal marketing aspect. Body shop uses only natural
vegetables, and fruits as a raw material in ingredients in order to make the cosmetic products.
This company act against testing of animals to support the trading of community and protecting
the world. In this method, body shop should use an effective societal marketing orientation in its
procedure of corporations (Nadaf, and Nadaf, 2014).
Moreover, the corporation should consider the human rights, maintaining the business
environment, and stimulatesthe self-esteem. In the marketing concept, the body shop company
uses eco-conscious and valuing the aquatic atmosphere. It also considers the rigid standard
related to environment and biodegradability. It also limits the wastage from production as well as
packaging of cosmetic products. Along with this, the body shop has its own charity renowned as
the Body Shop foundation, which aid to make progression in civil fields as well as helps to
protect the human right and safeguarding the animals and atmosphere (Zarkada-Fraser, and
Fraser, 2015). As a result, it can be exhibited that the body shop should implement the societal
marketing orientation in their process of business.
TASK 2: MARKETING ENVIRONMENTS
RELEVANCEOF AN ORGANISATION ANALYSING THE MARKETING
ENVIRONMENT
The marketing atmospheres and its components are directly associated with the corporation and
its development in the industry. For the body shop, assessment of marketing environment is
essential because of certain reasons. One of the key cause is that the effect of the environment on
the company is huge. Hence, the body shop needs to identify the trends as well as needs to
evaluate the information regarding the needs of customers. Assessment of marketing atmosphere

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is required for the body shop as it aids to comprehend the alteration in an exterior situation that
may affect the operations and performance of all the distributions (Welford, 2016). The body
shop constantly assesses the atmosphere and organizes the factors in order to decline the threat
from its marketing and outsider’s atmosphere.
Analysis of marketing atmosphere is absolutely relevant to the marketing atmosphere, which aids
the body shop to gain awareness regarding the upcoming opportunities, threats,and key market
participants. As a result, it would be beneficial for the company to make future efforts and
strategy as per the situation (Yeh, and Hsieh, 2015).
ONE SOCIAL AND ONE ENVIRONMENTAL FACTOR THAT COULD IMPACT
THE BODY SHOP’S BUSINESS OPERATIONS
SOCIAL FACTOR
The key social factors, which can favorably affect the operation of Body shop is that men in the
United Kingdom are becoming aware regarding their manifestation. Along with this, a large
number of customers give preference to exercise the skin with hair care cosmetic brands. Aging
residents have a keenness to spend on cosmetic products at premium priced and apply the anti-
aging products. It has gained the revenues of the body shop’s product. In addition, about 65% of
the UK’s people exercising the internet hence the body shop can make the decision to sell online
products. It can be both less time consuming as well as convenient for customers. As a result,
this factor would be advantageous for operation of body shop (Brown, 2016).
ENVIRONMENTAL FACTOR
The body shop is accountable with regards to natural as well as environmental factors. The body
shop focuses on making sure the appropriate packaging of the product because people’s concern
is increasing with regards to atmosphere. Furthermore, the body shop applies several methods

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related to the recycling of products and safety disposal. It aids an organization to grab the
attention of people with regards to corporate social responsibility as well as environmental
efforts. In addition, the body shop has become environmentally accountable due to incorporating
the green market. This factor has favorably affected the expansion and achievements of the body
shop in cosmetic product industry (Usui, 2017).
RELEVANCEOF THE BODY SHOP CONDUCTING A COMPETITOR ANALYSIS
Competitor assessment plays a significant role in the business procedure of body shop. It is the
significant procedure for this corporation to gain awareness regarding marketing approaches and
ambitions of challenging brands. By implementing this assessment, the body shop can evaluate
the resources as well as the capabilities of key market players as it would be beneficial to preset
the objective. It also supportstoa firm to assess the rank of key market players in the marketplace
(Crane, 2017). This organizationconcentrates on having narrow and rationale strategy as it will
support to apply feasible approaches and gain the achievement. The body shop faces high rivalry
in the industry of cosmetic product. The key market players in the United Kingdom are
L’Occitane, Weleda UK,and Lush. These key market participants are influencing the business
process of the body shop. In the market research program, the Body shop assesses its key market
players (Hollebeek, Glynn, and Brodie, 2014). It should also identify their targeted market and
approaches in order to sustain in the market.
COMPETITOR ANALYSIS
Competitor’s assessment of Body shop in the United Kingdom is illustrated as follow:
Basis of Comparison Lush Weleda UK L’Occitane
Number of Stores Lush has 105 stores in
all United kingdom
nation and over 900
stores in 49 countries.
Weledahas its stores
in more than 50
nations in all five
continents.
L’Occitanehas more
than 1000 stores in
over 25 countries.

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Quality of Product Lush is very
conscious regarding
the quality of products
as well as its
ingredients
(Hollebeek, Glynn,
and Brodie, 2014).
An organization is
engaged to offer
quality in products.
The products of
Weleda are the
outcome of the finest
choice of raw material
via producers
(Chernev, 2018).
The product’s quality
of L'Occitane is worse
than Lush and Body
Shop. To provide
products at the
affordable rate, it
offers low quality.
Prices It facilitates its skin
and hair care products
at the premium rate.
It provides the
products at the
affordable price.
Online price of
products is relatively
low.
It exercises distinct
pricing strategies for
different products.
Certain products are
affordable for all
customers (Crane,
2017).
Benefits Lush provides several
products such as
creams, soaps,
shampoos, masks
scrubs, and lotions. A
customer can buy
different products for
their skin care, beauty
and health.
Weleda offers
naturopathic products
to its customers. It
also utilizes testing of
animal, which
influence the
perception of
customers towards
Weleda.
A customer can buy
their desired
cosmetics on
reasonable rate.
Use of natural
ingredients
A corporation
provides the home
made personal care
products to its
customers.
It designs its product
as per the principle of
anthroposophic. It
implements natural
ingredients grown
using distinct
techniques.
It applied traditional
techniques and raw
material for its
production.
The above competitor's assessment demonstrates that Lush is key market players for a Body
shop in the cosmetic industry as well as UK fashion. Although, LushCompany facilitates

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premium quality products at a premium rate but, it is competent to create a strong customer base.
Hence, the body shop should focus on the product’s quality. It should also make efforts to make
changes in its pricing policy. It should also emphasize on procuring the effective raw material
with ingredients to produce the products (Chernev, 2018).
TASK 3: MARKETING MIX
Marketing mix is an integration of factors, which could be controlled by an organization to
persuade the consumers for purchasing its products and services.
PRODUCT AND SERVICE OFFERING
The body shop is a globallyrecognized brand that focuses on considering the environmental and
natural ingredients in its products such as sesame seed oil and marula oil. The corporation
provides both hair care and skin products such as body gels, conditioners, perfumes, shampoo,
bath treats, treatment for hands and body oil. Certain illustration of the company is the New Fuji
Green Tea Cleansing Hair Scrub, The Body Shop Olive Body Scrub, and Ginger Shampoo (The
body shop, 2018).
PRICING STRATEGIES
Presently, the body shop is implementing premium pricing approaches. The price of its product
is considerably higher because of the vast differentiation and nature of a brand such as ethical
and environmentally friendly. This big package contributes to maximum costing. This is a key
cause to involve financial strong people in the targetedmarket (Sharif and Scandura, 2014). It
faces rigid rivalry among premium cosmetic retailers in the UK. For illustration, Lush is one of
the key market participants that provide products at the premium rate.
PLACE STRATEGY
Body shop provides its products via diverse distribution channels. For illustration, it highly sells
the products via online sites, Home Scheme of Body Shop and physical stores. An organization

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has made the giant investment to keep virtual existence. Online distribution channels of body
shop aid the customers to buy the cosmetic products more easily with conveniently (Heding,
Knudtzen, and Bjerre, 2015). Thus, the body shop is implementing an effective marketing
strategy in order to persuade the customers with regards to its products and services.
CONCLUSION
As per the above interpretation, it can be concluded that body shop is one of the
foremostcosmetic retail company in the cosmetic industry of UK. It can be evaluated that the
company deals in the business procedure by using significant marketing approaches and societal
marketing orientation. The corporation makes an effective strategy to persuade the customers
towards their products and services. It can be summarised that there are certain social as well as
environmental factors that may have a favorable impact on the operation of the Body shop. The
key competing brand of body shop is Weleda, Lush, and L’Occitane that creates a rivalry in
cosmetic retail industry. It can be concluded that the body shop makes effective pricing,
product,and place strategies to persuade the customers towards its cosmetic products.

MARKETING AND COMMUNICATION 11
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The body shop. 2018. About us.[Online]. Available at: https://www.thebodyshop.in/about-us
(Accessed: 26 July 2018).

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