Body Shop Marketing: A SWOT and PESTLE Analysis Report

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Added on  2022/11/23

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This report provides a comprehensive SWOT and PESTLE analysis of The Body Shop, a cosmetics company competing in the beauty industry. It examines the role of marketing in supporting organizational objectives, emphasizing the importance of understanding the business environment for strategic development and implementation. The PESTLE analysis covers political, economic, social, technological, legal, and environmental factors influencing the company, while the SWOT analysis identifies strengths, weaknesses, opportunities, and threats. The report also discusses the marketing mix (product, price, place, promotion) and key skills in sales and negotiation, concluding with the importance of advertising and quality products and services for attracting and engaging consumers. The analysis highlights the need for Body Shop to leverage social media and influencer marketing to enhance reach and market share amidst competition from industry giants like L'Oreal and Lakme.
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SWOT AND PESTLE
ANALYSIS
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Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Understanding of the role of marketing within your chosen organization to support organizational
objectives.....................................................................................................................................................3
PESTLE AND SWOT ANALYSIS.............................................................................................................5
Marketing Mix.............................................................................................................................................7
Key skills in sales and negotiation...............................................................................................................8
CONCLUSION...........................................................................................................................................9
REFERENCES............................................................................................................................................9
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INTRODUCTION
This report is based on the importance of SWOT and PESTLE analysis for an organization in
order to understand its business environment and developing and implementing strategies which
can helps in achieving goals and objectives. This report is based on Body Shop organization
which is a cosmetics company based in United Kingdom and it competes in beauty industry
among other competitors. Before making investment decisions company's long - term orientation
or the introduction of a comprehensive marketing plan, the SWOT analysis is indeed an
incredibly valuable method for analyzing and analyzing the firm's situation. Any employee
inside the business can do a SWOT analysis. PEST assessment is a technique for assessing
independent factors. Before to doing a SWOT analysis, that is generally beneficial to conduct a
PEST analysis, however it would be more beneficial to conduct a PEST evaluation of, or even
after, the SWOT analysis. The SWOT analysis evaluates a company unit, whereas a PEST study
evaluates industry developments and trends.
MAIN BODY
Understanding of the role of marketing within your chosen organization to
support organizational objectives
This report is based on Body Shop organization which deals in cosmetics and sells products
related to beauty and it also competes in beauty industry against its competitors. Body Shop
focuses on providing quality products to its consumers which can help them in achieving their
goals and objectives while ensuring productivity and profitability. This cosmetics business is
made up of companies that produce and market cosmetics. Color cosmetics such makeup and
false lashes, healthcare like lotions and wipes, hair products like conditioners, dryers, and color
combinations, and hygiene like warm bath and body wash are all examples. Companies
throughout the beauty sector offer programs to assist people looking its finest. Barber shops are
the most common type of business in this market. Many cosmetic businesses include cosmetics,
care products, or beauty treatments, with so many firms offering a variety of services.
That's nearly difficult to go on twitter and facebook without coming across information linked
towards the cosmetics industry. That might be an advertising campaign, a marketing strategies,
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or information regarding company purchases or debuts. Earlier on, several cosmetic businesses
realized the power of social media to expand their advertising and marketing reach. How that can
help their company's brand trust and engagement. Let's look at some of the most popular
marketing ideas in the cosmetics business right now.
Purchasing patterns have been shifting. Modern technology opened the door for shopping and
online platforms, allowing companies to connect through new products and services and
messaging services. This is no longer completely well about goods for customers. However,
they've shifted their attention to the experience, with new networking playing an increasingly
important role.
That's no longer always about increasing interaction or detecting trends on social networking
sites; it's also about generating brand recognition and organization structure. The reality is that
advertisers never longer have the power. Customers now control a larger portion of online
discourse about their business. Customers in social connections respect their friends' and
colleagues' comments and opinions more often than company advertisements.
Body Shop competes in beauty industry with organizations such as Loreal, Lakme etc. which are
the top organizations in this industry and in order to gain advantage over competitors Body Shop
have to increase their reach and market their products with the help of social media or utilizing
social media influences as a way to advertise their products. All marketing realizes how difficult
it is to get the interest of their core demographic. Everybody here is generating material, but only
a compelling tale can genuinely engage customers. Customers were becoming indifferent to
advertisements as a result of being inundated with this much sponsored information. Whenever,
from the other hand, such material is generated by a genuine customer, an ordinary citizen,
people are much more inclined to connect with that as well. When deciding to buy form
business, the ordinary customer needs to have a genuine social connection with the business.
People use their smart phones to look for new and original information on digital and social news
sites. Among the first industries to recognize the value of social media influencers has been the
cosmetics business. People are no longer buying for cosmetic goods in the very same way they
used to, and traditional media no more does have the same impact.
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Cosmetic businesses are partnering with bloggers to effectively socialize and engage among its
core demographic, as today’s consumers need honesty and inclusion. Bloggers usually get a well
network of supporters that believe in their ideas and can connect with respective tales. One
would accept a buddy's counsel, just as you would a colleague's counsel.
PESTLE AND SWOT ANALYSIS
This cosmetics business is vast, encompassing even more than simply cosmetics and face
creams. Don't forget about some little things like mouthwash and cologne. Despite the fact that
this sector has an infinite number of items, companies always promote the same thing: a healthier
yourself.
Political Factor
Fashion brands provide you with the techniques to support your look and, through extension,
overall self-esteem. Mouthwash improves the odor of the mouth. Furthermore, numerous
companies in this business simply imported materials from these other nations or offer goods to
consumers on multiple fronts. They must adhere to all economic and political obligations in
every nation they are visiting, which might be difficult.
Economic Factor
The cosmetics sector is relatively immune to financial crises. This even made it through the 2008
Global Depression. Consumers grew increasingly cost aware, opting to purchase more or less
what people require for existence, but it's not the point. Cosmetic goods would become as
essential as food and a shelter over someone's heads. Individuals would always feel tempted to
have shampoos and lotion on hand in their bathrooms. Hair stylists, manicurists, beauticians,
beauty products specialists, and personal trainers are among the approximately one million
individuals engaged in this business. From anyway, the figures are just going to rise.
Social Factor
This cosmetic business includes cosmetic surgery, face creams, tanning salons, hair care,
cosmetic surgeries centers, barber shops, medical spas, and perfume bottles. And then if one
stroll along some of these lanes, one'll see hundreds of different companies all selling exactly the
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same stuff. Consumers will experiment with a variety of items until they discover the right
option.
Technological Factor
This cosmetics business was truly transformed by the online. Most everything may be purchased
and brought to the doorstep within a week or two. Considering big-name companies like L'Oreal
and Dove, this is both beneficial and terrible. Those two, must say, since they've been in this
same cosmetics business for a long time. But there was a period when they were just battling
amongst companies that were comparable to gain.
Legal Factor
This same FD&C keeps track of chemicals depending on how they're used, as well as making
sure there really is no misrepresentation on the labels. Whether there are any problems, the goods
don't always make it to the stores. It also might necessitate a suspension. Furthermore, if
substances weren’t up to
Environmental Factor
This cosmetics business is putting more emphasis than most on being “green.” Because reduced
environmental strain, company material is now becoming progressively sustainable and
environment. However, there will still be a developing problem with excessive plastic use in the
makeup and skincare industries. For quite a while, a skin-care component known as
"microbeads" dominated the news. Dead cells were exfoliated that use these particles.
SWOT ANALYSIS
Strengths
Body Shop was created especially top models who needed to be able to endure very bright lights
& brightness of something like the runway. Celebrities, designers, good makeup technicians,
shooters, and other early consumers exposed their company to major fashion leaders such as
creators and writers of fashion houses publications.
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Professional makeup is hand-picked with meticulous attention to detail. Customers are highly
fashion designers or individuals with an explicit or implicit link to the cosmetics business and
expertise. As a result, they are not only industry experts, and yet also potential consumers or
promoters.
Weakness
Body Shop cosmetics are costly, therefore for those with a better position financially could
continue to spend them. Even just a small segment of the population could purchase the label,
therefore it must depend upon sales volume.
Body Shop Products were focused on European study. These products are much more adapted
for ginger hair than to darker complexions. Throughout Asia, these products really aren't
especially popular.
Opportunities
Overall proportions of women that wear cosmetics on either a daily basis have risen amongst
these media era. With both the rise of internet purchasing, more individuals are ready to try new
appearances and spend a lot of money on expensive products. With cosmetic firms, this is really
a big potential. If Body Shop could understand the concept of the each location, the company's
potential would grow.
Threats
Sephora, Revlon, Maybelline, and L'Oreal are among Body Shop's primary rivals. People are
becoming increasingly worried about the health hazards associated through the use of cosmetics
that contain harmful chemicals. This will have an impact on products sales and market share in
particular.
Marketing Mix
Product
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Its Body Shop offers a diverse range of goods. Analyzing its whole range might help you
understand their brand development approach. Companies make items for various aspects of
beauty treatments, including such eyeliner and eye shadows.
Price
Its consumer goods unit's products are sold through retailers, providing products accessible to the
general public. Also as way, businesses benefit handsomely from such a split. Skilled goods are
accessible in venues all over the globe, and customers who frequent such establishments are
willing to pay for all these items because they're not overpriced.
Place
Consumers all across the globe can purchase these items through its many functional
departments. Body Shop additionally ensures that they also have extensive supply chains in order
to maintain a solid patent portfolio. They've bought a lot of various firms all around the globe to
expand its company's brand reach.
Promotion
This business does have an integrated marketing advertising approach that is strong. Its celebrity
endorsements include beautiful individuals. Body Shop also has a successful marketing
approach.
Key skills in sales and negotiation
I have ensured that consumers need should be understood and products as well as services
offered to them should be according to their preference. I also understood that it is important that
an effective relationship with consumer should be build as it helps in engaging consumers with
organization products and services. As an individual I should know the products and services of
my organization which can help me in effectively engaging with consumers and it will also help
in retaining the consumers.
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CONCLUSION
This report concludes about the importance of different analysis in order to understand the
external environment for business. This report concludes about Body shop and how it can attract
new consumers and engage with organization products by ensuring quality products and
services. This report also concludes about importance of advertising in order to boost revenues
and increase market share.
REFERENCES
Books and Journals
Benzaghta, M. A., and et. al.. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights, 6(1), pp.54-72.
Fedushko, S., Peráček, T., Syerov, Y. and Trach, O., 2021. Development of Methods for the
Strategic Management of Web Projects. Sustainability, 13(2), p.742.
Huang, Z., Ahmed, C. and Mickael, G., 2020. A model for supporting the ideas screening during
front end of the innovation process based on combination of methods of EcaTRIZ, AHP, and
SWOT. Concurrent Engineering, 28(2), pp.89-96.
Lohrke, F.T., Mazzei, M. J. and Frownfelter-Lohrke, C., 2021. Should It Stay or Should It Go?
Developing an Enhanced SWOT Framework for Teaching Strategy Formulation. Journal of
Management Education, p.10525629211021143.
Matovic, I. M., 2020. PESTEL Analysis of External Environment as a Success Factor of Startup
Business. ConScienS, p.96.
Pu, R., and et. al., 2021. The Interaction between Banking Sector and Financial Technology
Companies: Qualitative Assessment—A Case of Lithuania. Risks, 9(1), p.21.
Thakur, V., 2021. Framework for PESTEL dimensions of sustainable healthcare waste
management: Learnings from COVID-19 outbreak. Journal of cleaner production, 287,
p.125562.
van Steenbergen, D. I., 2021. Profitability in a social business: an environmental analysis of the
social sector in Portugal (Doctoral dissertation).
Wu, Y., 2020, February. The Marketing Strategies of IKEA in China Using Tools of PESTEL,
Five Forces Model and SWOT Analysis. In International Academic Conference on Frontiers in
Social Sciences and Management Innovation (IAFSM 2019) (pp. 348-355). Atlantis Press.
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