Analysis of Marketing Strategies for The Body Shop

This report provides a comprehensive analysis of marketing principles, using The Body Shop as a case study. It begins with an introduction to marketing processes and the benefits and costs of a marketing orientation. The report then delves into macro and micro environmental factors impacting marketing decisions, utilizing PESTEL analysis. It examines segmentation criteria, targeting strategies, and the influence of buyer behavior on The Body Shop's marketing activities. Furthermore, it explores positioning tactics, product development for competitive advantage, distribution, pricing, and promotional activities. The report also covers the extended marketing mix and concludes with a discussion of key findings.

MARKETING PRINCIPLE

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................2
TASK 1 ...........................................................................................................................................2
1.1 Elements of marketing process ............................................................................................2
1.2 Cost and benefit of marketing orientation for The Body Shop............................................3
2.1 Macro and micro environmental factor influence on marketing decision ...........................3
2.2 Segmentation criteria for the selected The Body Shop product ...........................................5
2.3 Targeting strategy for The Body Shop product.....................................................................6
2.4 Buyer behavior impact on The Body Shop marketing activity ............................................6
2.5 Positioning tactic for The Body Shop product......................................................................7
3.1 Producing product to sustain competitive advantage ...........................................................7
3.2 Arranging distribution ..........................................................................................................7
3.3 Setting the prices as per the market condition .....................................................................7
3.4 Promotional activity..............................................................................................................8
3.5 Extended marketing mix ......................................................................................................8
TASK 2 ...........................................................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES ...............................................................................................................................9

Illustration Index
Illustration 1: PESTEL analysis.......................................................................................................4
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INTRODUCTION
Marketing principle consists of different elements which is being used by the manager of
organization for the purpose to raise the sales of the product in an effective way. With an aim to
compete in the business environment which is highly competitive in nature, manager of firm has
to take help from the number of marketing tactics (Ruckman, Saraf and Sambamurthy, 2015).
Here, with the help of an effective marketing means only, significant improvement can be carried
out by firm in the sales and profits. With an aim to carry out this report, The Body Shop is
selected which is the famous cosmetic manufacturer company in UK. This report will depict the
importance of marketing for the firm. Furthermore, the study will also showcase the impact of
different macro and micro environmental factors on the operation of firm.
TASK 1
1.1 Elements of marketing process
The process of marketing consists of number of elements which the manager of The
Body Shop can use with an aim to formulate an appropriate marketing strategy for the firm. The
explanation regarding the assessed process is depicted in below: Analyzing the situation in market environment: It is the first step of marketing process
in which manager of an organization analyzes the situation which is prevailing in market.
In order to perform this, cited firm manager can take help from the famous external
environmental analysis tool such as PESTEL and Porters five forces model. With the help
of given tool, decision regarding the type of product which it must introduce in the
market can be taken by the firm (The elements of marketing process, 2015). Marketing strategy: After making the selection of the product which firm will produce in
the specified time limit, in this section firm will formulate the varied marketing tactic.
Here, they basically take decision about the segmentation and targeting criteria which
will be formulated as per the newly produced product. Marketing mix: Finally, in this section marketing mix will be framed as per selected
product. It consists of product, price, place and promotion etc.
 Implementation of the assessed tactics: Thus, in the last phase all the tactics which is
being formulated by the manager will be implemented. The success of these strategies
will be assessed on the basis of significant improvement in sales and profitability related
condition of the company (Rippin, 2007).
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1.2 Cost and benefit of marketing orientation for The Body Shop
Marketing orientation is the systematic process wherein manager of organization will
carry out its efforts with regard to perform the production of goods and services as per the
specific needs of the buyers (Olimpia, 2011). This concept has the huge importance of the cited
firm. However, still there are some cost associated with the given concept which will prove as
the biggest disadvantage of given approach. In this respect, the benefit and cost related with
marketing orientation is detailed in below:
Benefit High customer satisfaction: The satisfaction of the buyers is hindered when firm will not
carry out the production of goods and services as per their needs and demands. However,
with the help of marketing orientation The Body Shop can build an effectual relationship
with its buyers. Due to this, they can get the benefit in the form of increased profits and
sales in an effectual way. Customer retention: Marketing orientation provides opportunity to the firm with regard
to mold their services as per the specific needs of buyer. This type of practices makes the
customers feel like that they are being regarded as the important part of company. As a
result of it they become loyal towards the firm (Li and et.al., 2013).
Cost
 Extensive research: The needs and demands of buyers is the matter of constant changes.
Thus, while using this concept the manager of The Body Shop has to perform huge
investment in its research and development department. This leads to raise the cost of
firm and as a result of it they have to make the decision with regard to charge high prices
upon its product.
2.1 Macro and micro environmental factor influence on marketing decision
There are number of external and internal factors prevails in the business environment
which affects major decisions of the company. However, with an aim to analyze the impact of
these factors, The Body Shop can take help from the famous external environmental analysis tool
such as PESTEL.
Impact of macro environmental factor on The Body Shop marketing decision
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 Political: The marketing decision of the cited company is influenced through different
type of political factors which includes interest rate and taxation policy etc. These factors
have its influence on the marketing mix related approach of the company. For instance,
firm has decided to reduce the prices upon its product with an aim to lure the large
buyers. This aim cannot be met if government raise the rate of taxation upon all
production activity of all cosmetic products (PESTEL analysis, 2015). Economical: This has its influences on the buying behavior of the firm. For example, the
promotional plan which is being framed by The Body Shop will be proved as ineffective
if the country where it is operating its operation affected through the condition like
recession. This situation lowers the purchasing capacity of customers. Thus, in this
circumstance buyers gives priority for fulfilling their basic needs such as food, cloth and
shelter. Social: The marketing decision of buyer is also affected through the changing tastes and
preferences of buyers. For instance, customers are demanding that firm must produce
product for male consumers too. The given thing will force the firm with regard to
perform significant changes in its existing product segmentation tactics. This takes lots of
time and money of enterprise (Brooksbank, 2001).
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Illustration 1: PESTEL analysis
(Source: PESTEL analysis, 2015)

 Technological:The introduction of new technology in the field of firm's promotional
activity is impeding the marketing tactic. Here, development in promotional technology
opens new way for performing the advertisement for the corporation. This forces firm
like The Body Shop with regard to perform changes in its promotional activity in an
effectual manner. Environmental and legal: It is also required by The Body Shop that it must comply with
all environment related legal laws and regulations. This is because, if not abide then in
for the firm it becomes difficult with regard to carry out its operation smoothly (Alebaki
and Iakovidou, 2011).
Impact of micro environmental factors
This includes all the factors which leads to influence the internal operation of firm. It
consists of individuals such as employees and suppliers. Here, with the help of the talented and
skilled marketing team only firm will be able to carry out its efforts with regard to perform its
work as per the planned approach. Thus, the absence of talented marketing team members will
lead to influence the marketing operation of The Body Shop.
In the similar way, the commitment which firm will make can be fulfilled if it has the
good team of suppliers on which firm rely (Morgan, 2012). For example, in order to promote
product firm has promised to its buyers that it will provide small sample for each of its product.
This promise can be fulfilled by The Body Shop if its suppliers supplies the material with regard
to the same within the given specified time limit. Furthermore, the micro environmental factors
also consists the action which is being taken by the respective competitors of firm. The strategic
move as being taken by the rivalry of The Body Shop also influence the operation of company.
For example, competitor of cited firm has decided to use low pricing tactic upon its product.
Then in order to maintain the competitiveness in market, The Body Shop will also have to
comply with the given type of tactic. Thus, with an aim to perform the same firm will have to
change its overall marketing tactic.
2.2 Segmentation criteria for the selected The Body Shop product
Segmentation is being regarded as the process which is used with an aim to make the
proper segregation of the company's product. In this context, it can also be said that segmentation
is being regarded as the process of dividing whole market of company into varied subsections.
Here, with an aim to divide the whole market of firm different criteria of segmentation can be
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used by the manager of The Body Shop. It consists of demographic, psychographic, behavioral
and geographic etc (Kotler, 2011).
Here, segmentation criteria is suggested for the organic strawberry flavor body lotion of
The Body Shop. The given product of firm will be segmented on the basis of demographic
criteria. In this regard, The Body Shop can select different age group of buyers with respect to
the specific product. For the given product, two different type of customers can be targeted by
the firm such as buyers who belongs to 4 -7 age group and the buyers who belongs to 11-16 year
age group. Here, by performing significant variation in the ingredients which is being used in
this product, both type of customers can be targeted by the firm in an effective manner. For
instance, mild ingredients will be used while making the product for the individual who belong
to the 4-7 year of age group. In addition to this, slightly high ingredients will be used for the kids
who belongs to 11-16 year age group. This is done because both given type of buyers have
varied skins. By complying with the given type of practices, satisfaction level of both type of
buyers can be enhanced in an effective manner.
2.3 Targeting strategy for The Body Shop product
In order to attract the buyers, firm will have to make the selection of an appropriate
targeting strategy. Here, by selecting the suitable targeting tactic as per the product firm can
perform necessary improvement in its sales and profitability related condition. In accordance
with the given context, there are three different type of targeting tactic identified such as
undifferentiated, concentrated and differentiated (Hollebeek, 2013).
Here, manager of The Body Shop can use differentiated target marketing tactic for the
organic strawberry flavor body lotion. In this regard, more than one promotional message can be
framed by firm for the given product. For example, for the buyers who belongs to the age group
of 4-7 year mild ingredients in lotion will be used. This is because, these customers have very
sensitive skin. In the similar way, different type of ingredients will be used by The Body Shop
for the other targeted age group of buyers. Through this way, firm can fulfill the needs and
demands of different type of buyers in an effective way. This helps in enhancing sales and profits
of firm.
2.4 Buyer behavior impact on The Body Shop marketing activity
The marketing activity of the firm is influenced through the behavior as being carried out
by the buyer. The main objective of firm marketing activity is to spread information about the
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product among respective buyers. Thus, in order to perform the same marketing team of firm
take help from number of promotional means.
However, the marketing objective as being framed by the firm is affected through the
behavior of buyers which largely depends upon situation. For instance, rebuy is one of the type
of situation in which repeat purchasing behavior of buyer largely depends upon its own personal
experience (Douglas and Craig, 2011). Here, it became difficult for the firm with respect to raise
the sales of its product if customers have bad experience of using their product.
In this circumstance, firm cannot raise the sales of its product even after taking help from
different promotional means. In the similar way, another buying situation is of modified rebuy in
which firm's decision to purchase the product of specific company is influenced their friends and
family personal experience. Thus, with an aim to attract the buyers firm must formulate an
appropriate marketing tactic. This is because, if not formulated then in this condition it will
become difficult for the firm with regard to attract the large number of buyers towards the
corporation in an effectual way.
2.5 Positioning tactic for The Body Shop product
Positioning is the practice of building the unique and distinct image about the product in
the mind of respective buyer. This is basically done with an aim to attract the large number of
buyers towards the corporation in an effectual manner. In addition to this, with the help of
positioning only, firm can raise the sales of its new product in an appropriate way.
In accordance with the given context, varied criteria of positioning identified which cited
firm can use. It is consists of benefit and quality of product. For example, the product of The
Body Shop such as organic strawberry flavor body lotion can be positioned by firm on the basis
of its quality. In this regard, firm can showcase its buyers that it is using all natural ingredients
with an aim to prepare this product. In addition to this, the firm can also show the benefit of
using its product to the buyers. By complying with the given type of activity firm can attract its
targeted buyers (Desbordes, 2012).
3.1 Producing product to sustain competitive advantage
Building the competitive advantage in market is not an easier task because it required by
the firm that it must conduct the thorough environmental analysis. This is because, here it is by
complying with the given type of activity only, firm can gather appropriate information which it
can use in order to produce unique product. For example, In order to sustain the competitive
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advantage, firm can launch its new product in different quantities such as 50, 250 and 500 ml. In
addition to this, competitive advantage with regard to organic strawberry flavor body lotion
related product can also be gained by firm by using different type of packaging strategy. For
example, sachets can be used by the firm with an aim to sale the product to its targeted buyers
(Ashworth and Goodall, 2012).
3.2 Arranging distribution
Distribution is the process of delivering the produced product directly to the buyers.
Here, for the firm it is very essential that it must select the suitable mean for distributing its
product. This is because, if it is not done then direct impact will be seen upon the sales and
profits of firm. While making the decision about the distribution strategy, customer convenience
is the major factor which needs to be consider by the firm. This is because, product distribution
tactic plays crucial role in maintaining the satisfaction of the customers in an effective manner.
For example, The Body Shop can use its website with an aim to distribute its organic strawberry
flavor body lotion among respective buyers. With the help of this mean, convenience related
need of buyers can be fulfilled (Kotler and et.al., 2012). This is because, the given mean provides
opportunity to the corporation with regard to sale its product at the home of respective buyer.
Thus, this helps in maintaining the satisfaction of the customers in an effectual manner.
3.3 Setting the prices as per the market condition
While setting the prices of the product, manager of The Body Shop must consider the
condition which is occurring in the environment where firm is working. Here, on the basis of
market condition only firm must carry out the selection of an appropriate marketing strategy. For
example, The Body Shop must use price penetration tactic for the new product in the
circumstance such as recession. This is because, the situation such as recession causes direct
impact upon the purchasing capacity of buyers. As a result of it they prefer to use more economic
goods than expensive one. However, in some other situation cited firm can use price skimming
tactic for the product such as organic strawberry flavor body lotion (Malhotra, Birks and Wills,
2013). In addition to this, while setting the prices firm must also assess the type of tactic which is
being used by its competitor. For example, it is assessed by the cited firm that its competitors are
selling product at low prices. Then firm must adopt the given tactic. If not adopted then it will
become difficult for the enterprise with regard to attract large number of buyers towards the
corporation in an effectual manner.
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3.4 Promotional activity
Promotional is the practice of giving the information about the produced product among
the respective buyers. In addition to this, it can also be said that it is the way with the help of
which firm attract large number of customers towards its products and services. Thus, this play
critical role in raising the profits of corporation. The promotional mean must be selected as per
the targeted group of customers. Here, The Body Shop is targeting the young customers basically
teens and children. Thus, with an aim to spread the information about the product firm must take
help from television advertisement (Promotional mean, 2015). In this regard, firm must place ad
about its product in the famous cartoon channels which is being liked by these customers (Shaw,
2011).
3.5 Extended marketing mix
Traditional marketing mix is of four type such as product, price, place and promotion etc.
However, some extensions are being made in the traditional marketing mix. Extended marketing
mix is prepared as per the new product of firm: People:The Body Shop is selling its product through online website. Thus, it will require
the skilled employees who will handle all the technical problems which may occur during
the process of selling the product. Process: Firm must have to set its online goods selling process in an appropriate manner
with an aim to maintain the satisfaction of its buyers (Shimp and Andrews, 2013).
 Physical evidence: This play important role when firm sale its product through store.
This element depict about the interior and exterior theme which is used by the firm.
Overall, it can be said that these extensions plays very crucial role for the firm as it help
enterprise with regard to build its distinct brand image in the mind of its customers in an
effectual manner.
TASK 2
4.1 Marketing mix for two segments
For the organic strawberry flavour body lotion related product of The Body Shop, two
segments are selected. It is of children who belongs to 4 -7 age group and children which
belongs to 11-16 year age group.
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 Product: Slight variation will be performed in lotion for both the given segments. For 4-
7 year age group, organic but mild ingredient will be used in lotion. In the similar way,
for 11-16 year age group of customers slightly strong ingredients will be used.
 Price: For both the given segment, price penetration tactic will be used. This is because,
here by charging low process for the respective product large number of buyers can be
attracted by the firm.
 Place: For both the given segment, lotion will be sold through the website of company.
Through this mean, convenience related need of buyer can be fulfilled.
 Promotion: The information about the product must be spread by The Body Shop
through television advertisement. The cartoon channel such as Disney must be used for
this purpose.
4.2 Difference between marketing product to business than customers
Basis B2B B2C
Detailed information These customers require the
detail information about the
product as they purchase it in
huge quantity.
These customers do not
require the detailed
information about the product.
Decision basis They take logical and rational
decision while purchasing any
product.
They take emotional decision
when purchasing the product.
4.3 Marketing product in international and domestic market
Basis International market Domestic market
Level of competition
This is high in global market
as there are many firm
compete for specific market.
This is low as compared to the
global market.
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