Strategic Management

STRATEGIC MARKETING MANAGEMENT

Assignment: Marketing Plan - The Body Shop, UK.

Course: DMS/GROUP A

Date: 30/05/2010

Lecturer: Mr. John Heather

By: Ashley Pereira

ASHLEY PEREIRA


Contents:-

1. Company Background.................................................................................................5

2. Situation analysis..........................................................................................................5

3. External analysis...........................................................................................................6

a) Political factors

b) Economical factors

c) Social factors

d) Technological factors

e) Environmental factors

f) Legal factors

4. External Analysis- Micro Environment.......................................................................12

4.1) Industrial Analysis

a) Threats of new entrance

b) Threats of substitute products

c) Bargaining power of customer

d) Bargaining power of supplier

e) Competitors

5. Market Segmentation...................................................................................................19

a) Consumer market

ASHLEY PEREIRA


b) Products

c) Competitors

d) Brands

6. Internal Analysis........................................................................................................21

6.1) Resources analysis..............................................................................................21

a) Physical Resources

b) Financial Resources

c) Human Resources

d) Intangibles

6.2) Competences and capabilities

a) Market

b) Materials

c) Men

d) Money

e) Machines

7. S.W.O.T Analysis.......................................................................................................24

8. Marketing Plan............................................................................................................26

ASHLEY PEREIRA


8.1) Objectives

8.2) Strategies

8.3) Gap Analysis

8.4) Generic Strategy

8.5) Ansoff’s Matrix

8.6) Competitor Marketing Strategy

8.7) Market Positioning Strategy

8.8) Institutional Strategy

8.9) Implementation Plans........................................................................................29

a) Product

b) Price

c) Place

d) Promotion

e) People

f) Process

g) Physical Evidence

9. Budget Breakdown...............................................................................................30

10. Monitoring and Control.........................................................................................31

ASHLEY PEREIRA


10. Appendix...............................................................................................................32

11. References.............................................................................................................43

1. Company Background

1.1 Mission Statement

To dedicate the business to the pursuit of social and environmental change.

Creatively balance the financial and human needs of the stakeholders:

employees, customers, franchisees, suppliers and shareholders.

Ensure that the business is ecologically sustainable, meeting the needs of the

present without compromising the future.

Meaningfully contribute to the local, national and the international

communities by adopting code of conduct which ensures care, honesty,

fairness and respect.

Campaign for the protection of the environment, to defend human rights and

against animal testing within the cosmetic industry. (Value Report, 2009 -

2010)

ASHLEY PEREIRA


Organizational Structure

The Body Shop has a hierarchical structure. They have departmental heads spread all

over the world. The Body Shop encourages open-door policy and two-way

communication within the company. They have a strong belief in the company values

which creates a bound between the employees. (Our People, 2009-2010)

1.2 Product/Market Range

Products: Facial skin care products, make-ups, bath & body products, hair products

and fragrance products.

Market: Western Europe, North America, Asia, Eastern Europe, Latin America,

Africa, Orient and Pacific.

1.3 Customer Target

Professional stylists, non-professional stylists, these mainly include females clients.

1.6 Financial Profile

Since June 2006, The Body Shop is wholly owned by L’Oreal therefore it is no longer

a listed company. (About Us, 2009-2010)

Volume sales of The Body Shop in 2009: 726 million units.

Total sales L’Oreal by division in 2009: 16,257 million units.

Net Profit of The Body Shop in 2009: €54 million, weight 2.1%, growth based

on published sales +48.4%, percentage of sales 7.4%. (Annual Report, 2009-

2010)

2. Situation Analysis

According to Blythe (2005) Marketing Audit is a reassessment of the firm’s current

objectives, strategies, organization, company performance and activities. The main

ASHLEY PEREIRA


objective of this analysis is to highlight the strengths and weaknesses of the company,

so that they can be improved for the future.

The marketing audit is a summary of what is happening in the company at present,

hence this type of analysis have to be carried out on a regular basis, taking into

consideration about the time and money that can be invested by the company.

3. External Analysis/Marco Environment

The macro environment includes major forces, the environmental factors that have

an impact on the organisation on a varying scale (Jonhson, Scholes, & Whittington,

2008). The main element of macro environmental is the PESTEL framework which

identifies the major drivers of change. The macro environments affecting the core

business of the organization are identified below:

a) Political Factors

FACTORS IMPACT ON COSMETIC

INDUSTRY

IMPLICATIONS

Terrorism Restriction to carry personal

care and fragrance products in

handbags when travelling

abroad. (Decision News

Media SAS, 2000-2010)

Significant impact on

the sales of the

cosmetic retail stores

at the airport and the

high streets.

E-commerce UK industry and government

backed trust mark schemes.

(Cosmetic announces, 2009)

Growing number of

demand for online

products and lose of

ASHLEY PEREIRA


loyal customers.

Employment Due to the recession

businesses find in difficult to

survive in the market.

Jobless number

outgrows positions

available.

Conclusion: An opportunity arises on expanding an online purchase service for

customers. Threats to the industry arise from the unstable economic and security

environment where a contraction in demand is visible.

b) Economical Factors

FACTORS EFFECT ON COSMETIC

INDUSTRY

IMPLICATION

Exchange rates Fluctuation in the exchange

rate against the pound and in

countries that supply the

companies with raw

materials. (Wearden, 2009)

Raise the cost of

import of raw

materials or finish

products from the rest

of the world.

Increase in VAT UK’s new chancellor George

Osborne announced on 21st

May 2010, the hike on tax to

20% by next April. (Clark,

2010)

This will increase the

price of daily

commodities which

would lead to restrict

customers to buy

cosmetics.

Direct selling Allows customers to buy

products outside the

traditional retail enterprise.

(Dsa, 2009-2010)

Better customer

relationship, firms can

keep the cost low and

avoids expenditures on

ASHLEY PEREIRA


product promotion.

High unit labour cost High labour cost in UK has

left a gap in productivity as

compared to the counter parts

like America and Japan.

(Mail Online, 2010)

Company strategies

cannot be pursued to

the fullest extent.

Oil Prices Increase in oil prices. (Mail

Online, 2009)

Can affect promotion,

sale and distribution as

well as demand and

purchasing power.

Conclusion: Due to the recession profits of the company can be affected, as the

demand for the product will reduce and due to changes in the exchange rates which

could affect product manufacturing.

c) Social Factors

FACTOR EFFECT ON THE

COSMETIC INDUSTRY

IMPLICATION

Demographics According to the Office for

National Statistic in April

2010, the percentage of British

public aged from 65-85 is

growing and as of now the

figure shows a growth of 1.5

million. (McCraddie, 2010)

Increase in the sales of

the anti-aging

products.

ASHLEY PEREIRA


Cultural Changes Use of natural ingredients in

the manufacturing of

cosmetics by some firms.

Changing behaviour of

the customer towards

the natural product.

Cosmetic Testing Companies using animals for

their product testing. (Silva,

2002)

Affects brand image.

UK cosmetic industry

risk to tiger forests.

UK’s cosmetic industries are

buying product made out of

talc from illegal and

destructive mines from

wildlife in India.

(Environmental Investigation

Industry, 2003)

Affect brand image.

London Olympics 2012. Increased number of tourists

in the country.

Opportunity for

promotion and increase

awareness.

Conclusion: Diversification of culture that changes the buying power of the

customer will affect greatly the company, which will depend on factors like

promotion, value and ethics.

d) Technological Factors


INDUSTRY

IMPLICATION

Research & Development Cosmetic companies invest a

lot on R&D so that they can

develop new products to suite

the changing trends of the

Brand recognition.

ASHLEY PEREIRA


customer. (Global Insight,

2007)

Pulse perfection US based companies have

developed automated mascara

that coats lashes evenly.

(L'Oreal, 2010)

Competitive

advantage.

Roll on true match Cosmetic company has

developed a roll on technique

to spread the foundation

evenly on the face. (L'Oreal,

2010)

More options for the

customers.

Multi- purpose products Development of products such

as two-in-one face wash,

shampoo with conditioner.

(L'Oreal, 2010)

Customers looking for

consolidating the

beauty budget.

E-commerce Secure methods of payment

with security code or

password. (London Borough

Of Richmond Upon Thames,

2009-2010)

Working clients

buying more and more

products online.

Conclusion: Competitive advantage may be achieved and growth in the market.

e) Environmental Factors

FACTORS EFFECT ON

COSMETIC INDUSTRY

IMPLICATION

Natural Products Growing trends of

environmentally friendly

Benefits the companies that

ASHLEY PEREIRA


products. offer such products.

Environmental

Pollution.

Government to cut carbon

emissions. (Harvey, 2010)

It will be a necessity for

companies to follow

regulations.

Conclusion: Companies that are not socially and environmentally conscious will be

affected in its performance and reputation.

f) Legal Factors


INDUSTRY

IMPLICATION

Certificate standards for

cosmetic products.

ISO 22716 safety standard

certificates published on 15th

February 2010 provides

resources to organisations to

select their specifications.

(Cosmetic Design, 2010)

Builds confidence in

customers and makes the

organization keen on

supporting their business at

domestic and international

level.

International Trade

Policy.

Companies import all its

products from overseas any

changes will have an effect

on cost.

The company has made

strategic plans to look for

alternative sources of supply.

Conclusion: Companies has to abide by the rules and regulations set by government.

4. External Analysis/Micro Environment

ASHLEY PEREIRA


These are the internal factors of the company that has direct impact on the

organisations strategy. They include customers, employees, suppliers, shareholders,

media and competitors.

There are three factors to be looked upon while carrying out the analysis, credible

alternative future, improving the organisational learning and evaluating and

developing strategies for each situation. (Jonhson, Scholes, & Whittington, 2008)

To analyse the company, it should be considered Porter’s five forces.

ASHLEY PEREIRA


Source: (Jonhson, Scholes, & Whittington, 2008)

a) Threats of New Entrants

FACTORS LEVEL OF THREAT IMPLICATION

Scale and experience Low Products of The Body

Shop are natural unlike

other cosmetics. They are

aware of the resources

available for their

products. New companies

try to copy but will take

them a considerable

amount of time and

money.

Capital Required Low The capital required to set

up a business like Body

Shop is of great scale.

Access to supply or

distribution channel.

Medium Each of the cosmetic

products is different

depending on the brands in

store. But for companies

like The Body shop there

is less possibility to mix

ASHLEY PEREIRA


them with other brands.

Product Differentiation High Cosmetic products are

unique in their brand name

but, they can be more

appealing by promotion.

Switching Cost Low Cost will differ according

to the brand name, if there

is a niche market than

there won’t be any new

entrant in the market.

Brand Identity Low The Body Shop has been

established since 1976 in

UK and since then has

expanded with strong core

values of natural products.

Cost Advantage Low Different skills and

methods of production

have given The Body Shop

an edge over the other

competitors. Hence can set

its price.

Conclusion: Looking at the factors above the possibility of a new entrant entering in

this industry is fairing weak.

b) Threats of Substitute Products


Price and performance Medium Substitutes can offer the

ASHLEY PEREIRA


ratio similar product for the

same or higher price. The

difference depends upon

the performance advantage

the customer’s value.

Extra industry effect Low Managers of the company

should look outside their

own industry to look for

threats, but in case of The

Body Shop its less.

Substitute products Medium Inexistence of substitutes.

Conclusion: As there are no substitute for each brand of cosmetic product the threat

of substitutes is weak.

c) The Power of Buyer


Concentrated Buyer Medium Buyer power increases if

there are large retailers

having different brands

under one roof. Different

to The Body Shop as they

have their own stores.

ASHLEY PEREIRA


Low Switching Cost High As buyers can easily

switch between suppliers

for a competitive price.

Buyer Competition Threat Medium Cosmetic companies

supply to their large retail

buyers like Boots so the

possibility of setting up

their own supply chain

direct to the customers is

low, with certain

exceptions.

Conclusion: Looking at the above analysis buyer power is considerably at an

average.

d) The Power of Supplier


Concentrated Supplier High Suppliers have to face the

competitors in the market

where all the brands are

sold by one large retailer.

High Switching Cost Medium Buyers have the power to

negotiate the deals with the

ASHLEY PEREIRA


supplier as there are a lot

of brands in the cosmetic

industry.

Supplier Competition

Threat

Low Due to e-commerce the

customers can directly buy

the products from the main

supply of the company.

Conclusion: Supplier power is relatively low in this case as buyers have a wider

range of options.

e) Competitive Rivalry


Competitive Balance High There is average growth in

the cosmetic market and

there is a lot of

competition among the big

players.

Industry Growth Rate High Due to stiff competition

among cosmetic brands

there is a risk of altering

the price of the products.

Exit Barrier High Exit barrier for big players

in the cosmetic industry is

high, as they are lack of

alternative. More use of

the assets.

High Fixed Cost Medium High cost in importing raw

ASHLEY PEREIRA


materials from other

countries with the import

duties. Have to keep the

cost high to cover up the

expenditure.

Low Differentiation High Similar products available

in the market influence the

customer not to be loyal to

one particular brand.

Conclusion: The competitive rivalry within the cosmetic industry is strong as there is

no great product differentiation in terms of cost, quality, performance and variety.

Thus the exit barrier is very high.

Taking into consideration the above analysis the cosmetic industry can be rated at ** out

of five industry. It is a great market for The Body Shop to operate in as the changing

trends and shifting attitude of the customer to move on to natural and environmental

friendly products is growing in the industry.

5) Market Segmentation

A market segmentation table of the company can be found on Appendix 4

a) Customer Market

The Body Shop creates a product differentiation market, its customer’s are

usually single females from the age group of mid twenty’s or early forties

ASHLEY PEREIRA


professionals with good qualification and a focus on environmental issues. It

also targets men but is not as expanded.

So they have to increase the promotion of male products.

b) Products

The Body Shop has environmentally friendly products that are made up natural

ingredients. The Body Shop deals with the following products:

Facial skin care products.

Make-up.

Bath & Body products.

Hair Products.

Fragrances.

Accessories.

c) Competitor Analysis

Being a cosmetic company The Body Shop has a range of competitors, but by

analysing the Perceptual Map the competition between product with high quality and

low price is relatively high. In this case companies reinforce in their customers with

brand ethics and values.

The Perceptual Map.

ASHLEY PEREIRA


High Quality

High Price Low Price

Low Quality

Source: (Lamb, Hair, & C, 2008)

d) Brand

The Body Shop from the beginning focused on environmentally friendly products,

which created a brand image about the product among the customer who really care

about the environment. The Body Shop also gives the customers an exceptional

experience in store with their personal care products. (The Body Shop, 2009 - 2010)

The Body Shop did not use animals for testing their products and they believed in

fair trading which helps the people to earn their daily income which will enable them

to create a better future.

6) Internal Analysis

6.1 Resource Audit

a) Physical Resources

ASHLEY PEREIRA


Resources are sourced from the Body Shop community trade programme

which includes olive, soya, cocoa, sugar and sesame from parts of Brazil to

Samoa, Daabon in Colombia.

Community Trade now works with over 30 suppliers in more than 20

countries.

2500 stores in 60 countries around the world.

b) Financial Resources

Since June 2006, The Body Shop is wholly owned by L’Oreal therefore it is no

longer a listed company. (The Body Shop (2009 – 2010)

Volume sales of The Body Shop in 2009: 726 million units.

Total sales L’Oreal by division in 2009: 16,257 million units.

Net Profit of The Body Shop in 2009: €54 million, weight 2.1%, growth based

on published sales +48.4%, percentage of sales 7.4%. (Annual Report, 2009-

2010)

c) Human Resources

The Body Shop employs over 10,000 people across the world.

d) Intangibles

The Body Shop is an original, natural and ethical beauty brand.

6.2 Competencies and Capabilities

See Appendix 5.

Competencies:

Threshold capabilities

ASHLEY PEREIRA


These are needed by an organisation to meet the necessary requirement to compete in

the given market (Johnson, Scholes, & Whittington, 2008). The Body Shop has

created a niche market by focusing on development of natural cosmetic products, now

it is also entering the changing trend market by introducing anti-aging products due to

the growing aging population in UK.

Unique resources and core competencies

The Body shop uses natural resources for their products which cannot be

easily copied by the competitors.

The core competency of The Body Shop business is their values which are,

against animal testing, support community trade, active self esteem, defend

human rights and protect our planet. These make the company different from

others.

Core Capabilities:

The Body Shop supplies its customers with natural products which are

environmentally safe. This creates a competitive advantage over the other

cosmetic companies in the market.

These types of products are not easily developed, as a result of which The

Body Shop has created a niche within the cosmetic industry.

The Body Shop differentiate their competitors by their method of sales and promotion,5

M’s can be used to analyse its competences and capabilities.

a) Market

The Body Shop is the leader in environmental friendly products but now companies

like Herbal, Lush have come on board to compete with the similar type of product,

But the Body Shop has maintained their image for a long time which won’t affect the

sales.

b) Materials

ASHLEY PEREIRA


Over the past few years The Body Shop has invested setting up new stores across the

country with unique design. They have also introduced merchandises that contribute

towards children.

c) Men

Please refer to Human Resources 6.1 – c

d) Money

Please refer to Financial Resources 6.1 – b

e) Machines

Please refer to Physical Resources 6.1 – a

7) SWOT Analysis (see Appendix 6)

Strengths Level of Implication

Investment in R&D High

Financial Resources Medium

Developing Niche market High

ASHLEY PEREIRA


Brand Loyalty High

Natural Products High

Acquisition by L’Oreal, entry in the global

market.

Medium

Weaknesses Level of Implication

Acquisition by L’Oreal damaged the brand

image.

Medium

High cost of operation High

Franchisee issues Medium

Market Competition High

Opportunities Level of Implication

Developing Anti-ageing products High

Baby Products Medium

Publicity of the company at London

Olympics 2012

High

Recognition of e-commerce to developing

countries will boost sales.

High

Male cosmetic market Medium

Eco-friendly fashion jewellery &

accessories.

Medium

ASHLEY PEREIRA


Threats Implication

Other Cosmetic companies High

Increased sales by competitors High

Expensive resources High

Similar natural cosmetics Low

Although The Body Shop was acquired by the cosmetic giant L’Oreal in 2006, their ethics

remain the same and they operate separately as a separate unit within the L’Oreal group.

This will not have an impact on The Body Shop’s brand image. (Russel, 2007)

They can further develop some product for people from the age group of 50-65, as there is

a demand anti-ageing product in the market. Introduction of cosmetic product for men also

has to be introduced in a wide range.

8. Marketing Plan:

See Appendix 3

8.1 Company’s Objectives

1. To launch a new a new range of baby products by August 2012 in UK.

ASHLEY PEREIRA


2. To expand the male cosmetic market by 2% by July 2011.

3. Awareness of natural cosmetics for males in The Body Shop stores, London

underground, promotions on the website.

8.3 Gap (f) Analysis

Market Share

Target sales – 5.5%

Current Sales- 3.5% Sales gap - 2%

Forecast – 1.5%

1yr Time

According to analysis The Body Shop had 3.5% market share in 2009 (The Star

Online, 2009).

Increase in the market share by 2% by expanding the male cosmetic market by

2011 will be 5.5%.

If nothing is done to increase the market share it will go down to 1.5% i.e. there

will be a gap of 2% in the sales.

8.4 Porter’s Generic Strategy

ASHLEY PEREIRA


Porter’s three Generic Strategies (McNair, 2008):

1. Differentiation – This strategy is followed by the Body Shop as they deal with

natural cosmetic products which separate them from the competitors and the

products are sold at a premium price.

8.5 Ansoff’s Matrix (See Appendix

7)

ASHLEY PEREIRA


Source: Ansoff

1. Existing products in the existing market - The Body Shop use of different

promotion techniques (selling different types of products as a package)

2. New product in the existing market - Introducing a new range of cosmetics for

babies by August 2012.

3. Existing product in the new market - Increasing sales of cosmetics for men by

promoting the product.

4. New product in a new market - The Body Shop does not have any interest in

developing such a strategy due to the objectives set.

8.6 Competitive Marketing Strategy

Offensive Strategies:

Bypass attack- If the competitors attack The Body Shop by imitating similar type of

products than the company’s positioning should focus on the natural products

developed by The Body Shop.

Strategy Development of new products and promotions of existing products at

inferior price than competitors.

8.7. Market Positioning Strategy

The Body Shop used to be the market leader with expanding markets and demand

for the products and a strong offensive and defensive strategies. Now it has moved

to become a market challenger where it does selective targeting to an appropriate

ASHLEY PEREIRA


age group and attacks the rival competitors with their natural cosmetic range of

products.

8.8 Institutional Strategy

The Body Shop has maintained its ethical beliefs and corporate culture even

though they were taken over by L’Oreal.

It operates as a separate unit within L’Oreal but is owned by it. (The Body

Shop, 2009 - 2010)

9) Institutional Plans

(See Appendix 2)

Media Promotions

Advertise in the fashion magazines.

Local tabloid newspapers.

Underground train stations, Buses, Ferry’s.

In store promotion for both men and women cosmetics not just women.

Advertising on the television.

a) People

I.T – To enhance the shopping experience online, and encourages new

user by online promotional offers.

Sales Department – To increase sales and make the customers aware of

the different range of products to the customer.

Operations Department – To monitor all the stock moving from each

store.

R&D – To develop a new range of baby cosmetic products.

Marketing Department – To set targets by implementing marketing

plan, to keep a track of promotions and monitor if the strategies are

followed correctly.

ASHLEY PEREIRA


b) Process

o Appropriate software for the billing process.

o Return policy – Exchange/return the product if not according to the

taste.

o To keep a track of time taken to deliver product purchased online.

c) Physical Evidence

Monitor time taken to deliver an online product.

Stock checks should tally with the inventory stock.

Good ambience has to be developed in stores to attract potential

customers.

Sample of each product should be available for the customer to try.

9) Budget Breakdown

£ Million

Overall cost is £3.78 Million

Promotion – 60% estimated cost £ 17, 00,000

Product – 18% estimated cost, £936,000

People – 8% estimated cost, £416,000

Physical Evidence – 2% estimated cost, £104,000

Process – 5% estimated cost, £260,000

Place – 7% estimated cost £364,000

Total Cost £ 3780000

ASHLEY PEREIRA


10. Monitoring and Control

Quarterly meetings will be held with the head of marketing department regarding new

implementations of marketing plan to remain stable or gain profit.

Gantt chart will be followed to draw conclusions about the cost involved in

implementation and how much time would it take to complete it.

Reports of implementation plan will be given to all the board members to show the

status of each implementation.

New trends and technology required for the new product development will be

discussed after every 3-6 months.

ASHLEY PEREIRA


Appendices

Appendix 1:

Internal Analysis/Value Chain Analysis (Porter, 1998)

Primary Activities

Inbound Logistics: this deal with the receiving, storing and distributing inputs of

product. The Body Shop receives its raw materials from 30 suppliers worldwide

which are normally shipped to UK. If these resources are stopped or discontinued

from the foreign countries then the company needs to think about some alternatives.

ASHLEY PEREIRA


Operations: The Body shop products are against animal testing, the packaging used

for the products can be fully recycled. Everything in the store is environment friendly,

even the bags used to pack during direct sales.

Outbound Logistics: The distribution is done to all the retail Body Shop stores in the

UK where they are further categorised into different types.

Marketing & Sales: The Body Shop is a socially active organisation which supports

communities, different charities that support children and women. The brand image as

a supplier of environmental products makes people aware of the company.

Service: The Body Shop has created a niche market that sells natural beauty products.

Support Activities

Procurement: The Body Shop supports community trade from where the raw materials

are sourced.

Technological Development: The Body Shop has invested a lot in R&D in the past to

make their product as natural as possible. E-commerce has also contributed in the

direct sale of the product.

Human Resource Management: Recruiting at The Body Shop UK is done online,

further the managing, training and developing is done throughout the carrier path.

They also recruit people that can work from home as consultants.

Firm Infrastructure: The Body Shop has over 2500 store over 60 market segments, as

they have been acquired by L’Oreal all the financials are done under them; quality

control is monitored closely for quality.

ASHLEY PEREIRA


Appendix 2:

Implementation Plan

Topics Strategy Tactics

People To improve

customer service by

08/10 in staff.

To educate the staff

about sales’

techniques

Training &

development for the

staff has to be done

within 2 months

Motivate staff with

different & regular

check has to be

undertaken.

Product By 09/10 enhance

the sales of male

products

By 11/10 improve

the appearance of

the stores in UK

By 11/10 Introduce

packages of

different products

clubbed together

By 01/11 have to

change the whole

ASHLEY PEREIRA


looks of the shores

Price By 10/10 introduce

value for money

pack until they

benefit.

By 11/10 form a

well planned cost

strategy.

By keeping the

product on

introductory

discounts.

Introduce

differentiation

pricing after the

market demand

rises.

Place By 06/11 open new

store in Scotland.

By 07/10 develop

schemes of free

delivery over the

sales of 20 pounds

Start looking for

entrepreneurs

interested in the

business in 3

months.

Start pricing the

products tactically.

Promotion Enhance the sales

of male cosmetics

by 07/10 in UK.

By 07/12 introduce

a new range of baby

cosmetics.

Start promotions on

tabloid newspapers,

London

underground

stations, buses,

trains.

Promote on

magazines related to

child care, mothers.

Physical Evidence By 09/10 develop

software for

customer history for

Let the IT

department develop

it by the next 2

ASHLEY PEREIRA


members of the

loyalty group.

By 10/10 form a

promotional

strategy for new

product launch.

months.

From 06/10 check

the progress of sales

of each product till

10/10 and form a

competitive price

for those products.

Process By 03/11 develop

online learning

course for

employees.

By 02/12 develop

self service check

out tills in store.

By 09/10 organise

the online web link

on the company

website for

employees.

By 02/11 introduce

self service tills for

saving time &

money.

ASHLEY PEREIRA


Appendix 3:

Segmentation, positioning and planning

ASHLEY PEREIRA

Market Segmentation

1. Identify customer needs and segment the market.

2. Develop profiles of resulting segment.

Target marketing

1. Evaluate attractiveness of each segment.

2. Select target segment.

Marketing Positioning

1. Identify differential advantage for each segment.

2. Formulate marketing mix.


Source: (Doyle & Stern, 2006)

Appendix 4

Benefit Segmentation of the Body Lotion Market

Segment

name

Principle

benefits

sought

Demogr

aphic

Strength

Special

Behavioural

characteristi

cs

Brands

disproportionat

ely favoured

Personality

characteristi

cs

Lifestyle

characteristi

cs

Indepen

dent

segment

Low cost Workin

g men

Heavy user Olive flavour Self –

automony

Value -

oriented

Sociable Scent &

feel

Young

people,

teens

Normal

skin

Satsuma

flavour – Citrus

scented

Sociability Active

Worrier Skin care Mothers

and kids

Soft skin Butiri Baby Highly

Sensitive

Conservativ

es

Sensory

segment

Flavour

of the

product

Childre

n

Use of fruit

flavoured

lotions

Japanese cherry

blossom

Self-

involvemen

t

Hedonistic

ASHLEY PEREIRA

Marketing Planning

1. Develop marketing plan each segment.

2. Develop marketing organisation.


Appendix 5

Core Competency Model.

Source: (RIMS, 2010)

ASHLEY PEREIRA


Appendix 7

Ansoff matrix

- According to Ansoff matrix analysis, The Body Shop has newly entered in different

sectors in market penetration,

ASHLEY PEREIRA

MARKET PENETRATION

- TARGET NEW MARKET AND

- IMPROVE SERVICES

PRODUCT DEVELOPMENT

- DEVELOPMENT OF NEW RANGE

OF BABY PRODUCTS

MARKET DEVELOPMENT

- ENTER INTO THE UNTAPPED

MARKET FOR MALE

COSMETICS INDUSTRY

DIVERSIFICATION

- SOCIAL SERVICES

- INCREASE CORPORATE SOCIAL

RESPONSIBILITY

-


- And as they are leader in the cosmetic industry and are looking forward to enhance the

male cosmetic market.

- They are also looking to get diversified in sectors like financial services, products, retail

business, social services, ethical welfare.

Product Life Cycle:-

Source: (Luck, 2008)

Product life cycle shows that growth of a company is staring from a fix position, In the

beginning company don’t make any profit when they launch their product in the market, there

ASHLEY PEREIRA


are chances of loss or make profit, The Body Shop has already has a good reputation in the

market if they launch any new product they don’t need to do behave like new entrance

because people trust this brand and they will buy their product.

Appendix 8

Resource Plan:

Activities JAN FEB MAR APR MAY JUNE JULY AUG Resources

Enrolment Manager

Structure Executive

Approval Management

Product HR

Advertisement Marketing

Distribution HR

Sales Marketing

ASHLEY PEREIRA


Works CitedAbout Us. (2009-2010). Retrieved June 04, 2010, from The Body Shop International: http://www.thebodyshop.com/_en/_ww/services/aboutus_media-centre.aspx

Annual Report. (2009-2010). Retrieved June 05, 2010, from L'Oreal: http://www.loreal-finance.com/eng/annual-report

Clark, T. (2010, June 24). Business. Retrieved June 24, 2010, from The Guardian: http://www.guardian.co.uk/uk/2010/jun/24/budget-2010-tom-clark-analysis

Cosmetic announces. (2009, Nov 09). Retrieved June 05, 2010, from My News Desk: http://www.mynewsdesk.com/uk/view/pressrelease/mac-cosmetics-mac-cosmetics-announces-new-website-launch-and-christmas-collections-347578

Cosmetic Design. (2010, Feb 15). Retrieved June 05, 2010, from Understanding the ISO 22716 Safety Certification Standard for Cosmetic Products: http://www.cosmeticsdesign.com/smartlead/view/289025/4/Understanding-the-ISO-22716-Safety-Certification-Standard-for-Cosmetic-Products

Decision News Media SAS. (2000-2010). Retrieved 05 31, 2010, from http://www.cosmeticdesign.com/Products-Markets/Political-turmoil-turns-luxury-cosmetics-markets-on-its-head

Doyle, P., & Stern, P. (2006). Marketing Management and Strategy. England: Financial Times.

Dsa. (2009-2010). Direct Selling Association. Retrieved June 12, 2010, from Direct Selling Legislation: http://www.dsa.org.uk/legislation.htm

ASHLEY PEREIRA


Environmental Investigation Industry. (2003). UK Cosmetic Industry Risks Tiger Forests. Media Briefing , 1-9.

Gilligan, C., & Wilson, R. (2009). Strategic Marketing Planning. Great Britain: Macmillan Publishing Solutions.

Global Insight. (2007). A Study of the European Cosmetic Industry. The Power of Perspective , 1-22.

Harvey, F. (2010, June 08). Financial Times. Retrieved June 10, 2010, from Taget for emissions cut to be exceeded: http://www.ft.com/cms/s/0/e45a4450-7332-11df-ae73-00144feabdc0.html

Johnson, G., Scholes, K., & Whittington, R. (2008). Exploring Corporate Strategies. England: Financial Times.

Jonhso, J., Scholes, K., & Whittington, R. (2008). Marketin Audit. In J. Jonhso, K. Scholes, & R. Whittington, Exploring Corporate Strategy. England: Finantial Times.

Kotler, P., Keller, K., Brady, M., Goodman, M., & Hansen, T. (2009). Marketing Management. England: Pearson Education Limited.

Lamb, C., Hair, J., & C, M. (2008). The Essentials of Marketing, 6th edn. Canada: Nelson Education.

London Borough Of Richmond Upon Thames. (2009-2010). Retrieved June 14, 2010, from Make a Payment Online: http://www.richmond.gov.uk/payments

L'Oreal. (2010). The UK Beauty Industry. Trends 2010 , 1-12.

Luck, D. (2008). The Official CIM Course book. UK: Elsevier ltd.

Mail Online. (2009, November 24). Retrieved June 14, 2010, from News: http://www.dailymail.co.uk/news/article-1230478/Shark-oil-tankers-Jurassic-Coast-environmental-accident-waiting-happen.html

Mail Online. (2010, June 18). Retrieved June 18, 2010, from News: http://www.dailymail.co.uk/news/article-1287718/Whitehall-experts-cost-taxpayer-2billion-wages.html

McCraddie, L. (2010, April). Anti-ageing trends. Retrieved June 14, 2010, from Professional Beauty: http://www.professionalbeauty.co.uk/products/skincare/anti-ageing-trends-skincare/5013082.article

McNair, L. C. (2008). Management Accounting Business Strategy. UK: CIMA.

Our People. (2009-2010). Retrieved June 03, 2010, from The Body Shop International: http://www.thebodyshop.co.uk/_en/_gb/services/aboutus_ourpeople.aspx

Porter, M. (1998). Competitive Advantage. America: The Free Press.

ASHLEY PEREIRA


RIMS. (2010, June). Risk and Insurance Management Society. Retrieved Jun 10, 2010, from Education: http://www.rims.org/education/PublishingImages/rrmccmgraphic.jpg

Russel, J. (2007, March 11). Ethical Corporation. Retrieved June 11, 2010, from Body Shop Take Over - Ethical business as usual: http://www.ethicalcorp.com/content.asp?ContentID=4936

Silva, O. D. (2002). The Contribution of European Cosmetic Industry to the Developement of Aternative to Animal Testing. Steering Commitee on Aternatives to Animal Testing , 189-183.

The Body Shop. (2009 - 2010). Retrieved June 10, 2010, from About Us: http://www.thebodyshop.co.uk/_en/_gb/index.aspx

The Star Online. (2009, Jan 10). Retrieved June 15, 2010, from Business: http://biz.thestar.com.my/news/story.asp?file=/2009/1/10/business/2882015&sec=business

Value Report. (2009 -2010). Retrieved June 04, 2010, from The Body Shop International: http://www.thebodyshop.co.uk/_en/_gb/values-campaigns/assets/pdf/Values_report_lowres_v2.pdf?

Wearden, G. (2009, Jan 2009). Business. Retrieved June 05, 2010, from The Guardian: http://www.guardian.co.uk/business/2009/jan/20/pound-sterling-dollar-low

ASHLEY PEREIRA

Strategic Management

Documents

Transcript of Strategic Management