Strategic Management the Body Shop
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STRATEGIC MARKETING MANAGEMENT
Contents:The Body Shop
Page 1
STRATEGIC MARKETING MANAGEMENT 1. Company Background................................... Background.......................................................... .............................................. .......................................5 ................5 2. Situation analysis............................................. analysis.................................................................... .............................................. ......................................5 ...............5 3. External analysis........................................... analysis.................................................................. .............................................. .........................................6 ..................6 a !oli !oliti tica call "ac "acto tors rs # Economical "actors c
Soci Social al "act "actor orss
d $ec% $ec%no nolo logi gical cal "act "actor orss e
En&i En&iro ronm nmen ental tal "acto "actors rs
"
'egal "act actors
(. External )nalysis- *icro En&ironment................................ En&ironment....................................................... .......................................12 ................12 (.1 +ndustrial )nalysis a $%re $%reat atss o" o" ne, ne, entr entran ance ce # $%reats o" su#stitute products c Barg Bargain ainin ing g po,er po,er o" cust custom omer er d Bargai Bargainin ning g po,er po,er o" supp supplie lier r e Comp ompetit etito ors 5. *arket Segmentation..................................... Segmentation............................................................ .............................................. .......................................1 ................1 a Cons Consum umer er mark market et # !roducts c Comp ompetit etito ors
The Body Shop
Page 2
STRATEGIC MARKETING MANAGEMENT 1. Company Background................................... Background.......................................................... .............................................. .......................................5 ................5 2. Situation analysis............................................. analysis.................................................................... .............................................. ......................................5 ...............5 3. External analysis........................................... analysis.................................................................. .............................................. .........................................6 ..................6 a !oli !oliti tica call "ac "acto tors rs # Economical "actors c
Soci Social al "act "actor orss
d $ec% $ec%no nolo logi gical cal "act "actor orss e
En&i En&iro ronm nmen ental tal "acto "actors rs
"
'egal "act actors
(. External )nalysis- *icro En&ironment................................ En&ironment....................................................... .......................................12 ................12 (.1 +ndustrial )nalysis a $%re $%reat atss o" o" ne, ne, entr entran ance ce # $%reats o" su#stitute products c Barg Bargain ainin ing g po,er po,er o" cust custom omer er d Bargai Bargainin ning g po,er po,er o" supp supplie lier r e Comp ompetit etito ors 5. *arket Segmentation..................................... Segmentation............................................................ .............................................. .......................................1 ................1 a Cons Consum umer er mark market et # !roducts c Comp ompetit etito ors
The Body Shop
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STRATEGIC MARKETING MANAGEMENT d Brands
6. +nternal )nalysis........................................... )nalysis.................................................................. .............................................. ......................................21 ...............21 6.1 esources analysis........................................... analysis.................................................................. .............................................. ............................21 .....21 a !%y !%ysica sicall eso esour urce cess # /inancial esources c 0uma 0uman n eso esour urce cess d +nta +ntan ngi# gi#les les 6.2 Competences and capa#ilities a *arket # *aterials c *en d *oney e *ac%ines . S...$ )nalysis........................................... )nalysis.................................................................. .............................................. .....................................2( ..............2( 4. *arketing !lan............................................ !lan................................................................... .............................................. .........................................26 ..................26 4.1 #ecti&es 4.2 Strategies
The Body Shop
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STRATEGIC MARKETING MANAGEMENT 4.3 ap )nalysis 4.( eneric Strategy 4.5 )nso""7s *atrix 4.6 Competitor *arketing Strategy 4. *arket !ositioning !ositioning Strategy 4.4 +nstitutional Strategy 4. +mplementation !lans........................................... !lans.................................................................. .............................................2 ......................2 a !roduct # !rice c !lace d !romotio tion e !eople " !rocess g !%y !%ysical sical E&id E&iden ence ce
. Budget Breakdo,n....................................... Breakdo,n.............................................................. .............................................. .................................38 ..........38 18. *onitoring and Control...................................... Control............................................................. .............................................. ............................31 .....31 18. )ppendix.................................. )ppendix......................................................... ............................................... ............................................... ..............................32 .......32 11. e"erences.......................... e"erences................................................. .............................................. .............................................. .....................................(3 ..............(3
The Body Shop
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STRATEGIC MARKETING MANAGEMENT
1. Compa Company ny Back Backgr grou ound nd
1.1 *ission Statement Statement •
$o dedicate t%e #usiness to t%e pursuit o" social and en&ironmental c%ange.
•
Crea Creati ti&e &ely ly #ala #alanc ncee t%e t%e "ina "inanc ncial ial and and %uma %uman n need needss o" t%e t%e stake stake%o %old lders ers:: employees9 customers9 "ranc%isees9 suppliers and s%are%olders.
•
Ensure t%at t%e #usiness is ecologically sustaina#le9 meeting t%e needs o" t%e present ,it%out compromising t%e "uture.
•
*ean *eanin ing" g"ul ully ly cont contri ri#u #ute te to t%e t%e loca local9 l9 nati nation onal al and and t%e t%e inte intern rnat atio iona nall commun communitie itiess #y adopti adopting ng code code o" conduc conductt ,%ic% ,%ic% ensures ensures care9 care9 %onesty %onesty99 "airness and respect.
•
Campaign Campaign "or t%e protection o" t%e en&ironment9 en&ironment9 to de"end %uman rig%ts and agains againstt animal animal testin testing g ,it%in ,it%in t%e cosmetic cosmetic indust industry. ry. ;alue ;alue eport eport99 288 288 -2818
rgani so t%at t%ey can
The Body Shop
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STRATEGIC MARKETING MANAGEMENT de&elop ne, products to suite t%e c%anging trends o" t%e customer.
lo#al
+nsig%t9
288 !ulse per"ection
AS #ased companies %a&e Competiti&e de&eloped automated mascara ad&antage. t%at
coats
las%es
e&enly.
'Greal9 2818 oll on true matc%
Cosmetic
company
%as
de&eloped a roll on tec%niHue to
spread
t%e
*ore options "or t%e customers.
"oundation
e&enly on t%e "ace. 'Greal9 2818 *ulti- purpose products
e&elopment o" products suc% Customers looking "or as
t,o-in-one
s%ampoo
"ace
,it%
,as%9 consolidating
t%e
conditioner. #eauty #udget.
'Greal9 2818 E-commerce
Secure met%ods o" payment ,it%
security
code
orking
clients
or #uying more and more
pass,ord. 'ondon Boroug% products online. " ic%mond Apon $%ames9 288-2818
Conclusion: Competiti&e ad&antage may #e ac%ie&ed and gro,t% in t%e market.
e Environmental "actors "AC#$%S
E""EC#
$' &M!+&CA#&$'
C$SME#&C &'()S#%*
?atural !roducts
ro,ing
trends
en&ironmentally The Body Shop
o" Bene"its t%e companies t%at
"riendly Page 11
STRATEGIC MARKETING MANAGEMENT products.
o""er suc% products.
En&ironmental
o&ernment to cut car#on +t ,ill #e a necessity "or
!ollution.
emissions. 0ar&ey9 2818
companies
to
"ollo,
regulations.
Conclusion: Companies t%at are not socially and en&ironmentally conscious ,ill #e a""ected in its per"ormance and reputation.
+egal "actors "AC#$%S
E""EC# $' C$SME#&C &M!+&CA#&$' &'()S#%*
Certi"icate standards "or +S 2216 sa"ety standard cosmetic products.
Builds
con"idence
in
certi"icates pu#lis%ed on 15t% customers and makes t%e /e#ruary
2818
pro&ides organi C9 2884
d Brand $%e Body S%op "rom t%e #eginning "ocused on en&ironmentally "riendly products9 ,%ic% created a #rand image a#out t%e product among t%e customer ,%o really care a#out t%e en&ironment. $%e Body S%op also gi&es t%e customers an exceptional experience in store ,it% t%eir personal care products. $%e Body S%op9 288 - 2818
$%e Body S%op did not use animals "or testing t%eir products and t%ey #elie&ed in "air trading ,%ic% %elps t%e people to earn t%eir daily income ,%ic% ,ill ena#le t%em to create a #etter "uture.
4 &nternal Analysis
6.1 esource )udit
a !%ysical esources The Body Shop
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STRATEGIC MARKETING MANAGEMENT
•
esources are sourced "rom t%e Body S%op community trade programme ,%ic% includes oli&e9 soya9 cocoa9 sugar and sesame "rom parts o" Bra *edium
accessories.
#reats
&mplication
t%er Cosmetic companies
0ig%
+ncreased sales #y competitors
0ig%
Expensi&e resources
0ig%
Similar natural cosmetics
'o,
)lt%oug% $%e Body S%op ,as acHuired #y t%e cosmetic giant '7real in 28869 t%eir et%ics remain t%e same and t%ey operate separately as a separate unit ,it%in t%e '7real group. $%is ,ill not %a&e an impact on $%e Body S%op7s #rand image. ussel9 288
$%ey can "urt%er de&elop some product "or people "rom t%e age group o" 58-659 as t%ere is a demand anti-ageing product in t%e market. +ntroduction o" cosmetic product "or men also %as to #e introduced in a ,ide range.
The Body Shop
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STRATEGIC MARKETING MANAGEMENT
8. Marketing !lan9
See )ppendix 3
4.1 Company7s #ecti&es 1. $o launc% a ne, a ne, range o" #a#y products #y )ugust 2812 in AF. 2. $o expand t%e male cosmetic market #y 2 #y @uly 2811. 3. ),areness o" natural cosmetics "or males in $%e Body S%op stores9 'ondon underground9 promotions on t%e ,e#site.
4.3 ap " )nalysis
*arket S%are $arget sales K 5.5 Current Sales- 3.5
The Body Shop
Sales gap - 2
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STRATEGIC MARKETING MANAGEMENT
/orecast K 1.5
1yr
•
$ime
)ccording to analysis $%e Body S%op %ad 3.5 market s%are in 288 $%e Star nline9 288.
•
+ncrease in t%e market s%are #y 2 #y expanding t%e male cosmetic market #y 2811 ,ill #e 5.5.
•
+" not%ing is done to increase t%e market s%are it ,ill go do,n to 1.5 i.e. t%ere ,ill #e a gap o" 2 in t%e sales.
4.( !orter7s eneric Strategy
The Body Shop
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STRATEGIC MARKETING MANAGEMENT
!orter7s t%ree eneric Strategies *c?air9 2884: 1. i""erentiation K $%is strategy is "ollo,ed #y t%e Body S%op as t%ey deal ,it% natural cosmetic products ,%ic% separate t%em "rom t%e competitors and t%e products are sold at a premium price.
4.5 )nso""7s *atrix See )ppendix
The Body Shop
Source: Ansoff
Page 30
STRATEGIC MARKETING MANAGEMENT 1. Existing products in t%e existing market - $%e Body S%op use o" di""erent promotion tec%niHues selling di""erent types o" products as a package 2. ?e, product in t%e existing market- +ntroducing a ne, range o" cosmetics "or #a#ies #y )ugust 2812. 3. Existing product in t%e ne, market- +ncreasing sales o" cosmetics "or men #y promoting t%e product. (. ?e, product in a ne, market - $%e Body S%op does not %a&e any interest in de&eloping suc% a strategy due to t%e o#ecti&es set.
4.6 Competiti&e *arketing Strategy ""ensi&e Strategies: Bypass attack- +" t%e competitors attack $%e Body S%op #y imitating similar type o" products t%an t%e company7s positioning s%ould "ocus on t%e natural products de&eloped #y $%e Body S%op. Strategy e&elopment o" ne, products and promotions o" existing products at in"erior price t%an competitors.
4.. *arket !ositioning Strategy $%e Body S%op used to #e t%e market leader ,it% expanding markets and demand "or t%e products and a strong o""ensi&e and de"ensi&e strategies. ?o, it %as mo&ed to #ecome a market c%allenger ,%ere it does selecti&e targeting to an appropriate age group and attacks t%e ri&al competitors ,it% t%eir natural cosmetic range o" products.
4.4 +nstitutional Strategy
The Body Shop
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STRATEGIC MARKETING MANAGEMENT $%e Body S%op %as maintained its et%ical #elie"s and corporate culture e&en
t%oug% t%ey ,ere taken o&er #y '7real. +t operates as a separate unit ,it%in '7real #ut is o,ned #y it. $%e Body
S%op9 288 - 2818
+nstitutional !lans See )ppendix 2 *edia !romotions )d&ertise in t%e "as%ion maga
customer ser&ice #y
de&elopment "or t%e
84=18 in sta"".
sta"" %as to #e done ,it%in 2 mont%s
$o educate t%e sta""
a#out
sales7
•
tec%niHues
*oti&ate sta"" ,it% di""erent > regular c%eck
%as
to
#e
undertaken. !roduct
By 8=18 en%ance
•
By 11=18 +ntroduce
t%e sales o" male
packages
o"
products
di""erent
products
clu##ed toget%er
By 11=18 impro&e
t%e appearance o"
•
t%e stores in AF
By 81=11 %a&e to c%ange t%e ,%ole looks o" t%e s%ores
!rice
By 18=18 introduce
&alue
"or
pack
until
•
money
By
keeping
product
t%ey
t%e on
introductory
#ene"it.
discounts.
By 11=18 "orm a
•
+ntroduce
,ell planned cost
di""erentiation
strategy.
pricing
a"ter
market
t%e
demand
rises. !lace
By 86=11 open ne,
store in Scotland. By 8=18 de&elop
sc%emes The Body Shop
o"
"ree
•
Start
looking
"or
entrepreneurs interested
in
t%e
#usiness
in
3
Page 39
STRATEGIC MARKETING MANAGEMENT deli&ery o&er t%e
mont%s.
sales o" 28 pounds •
Start
pricing
t%e
products tactically. !romotion
En%ance
t%e sales
•
Start promotions on
o" male cosmetics
ta#loid ne,spapers9
#y 8=18 in AF.
'ondon underground
By 8=12 introduce
stations9
a ne, range o" #a#y
#uses9
trains.
cosmetics. •
!romote
on
maga Stern9 2886
)ppendix ( Bene"it Segmentation o" t%e Body 'otion *arket Segment
!rinciple
emogr Special
Brands
!ersonality
'i"estyle
name
#ene"its
ap%ic
Be%a&ioural
disproportionat
c%aracteristi
c%aracteristi
soug%t
Strengt%
c%aracteristi
ely "a&oured
cs
cs
li&e "la&our
Sel"
cs +ndepen
'o, cost
dent
orkin
0ea&y user
g men
K ;alue
-
automony
oriented
Socia#ility
)cti&e
0ig%ly
Conser&ati&
Sensiti&e
es
segment Socia#le
Scent > Noung
?ormal
Satsuma
"eel
skin
"la&our K Citrus
people9 teens
orrier
Skin care
*ot%ers and kids
Sensory
/la&our
The Body Shop
C%ildre
scented So"t skin
Butiri Ba#y
Ase o" "ruit @apanese c%erry Sel"-
0edonistic Page 43
STRATEGIC MARKETING MANAGEMENT segment
o"
t%e n
product
"la&oured lotions
#lossom
in&ol&emen t
)ppendix 5 Core Competency *odel.
The Body Shop
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STRATEGIC MARKETING MANAGEMENT
Source: +*S9 2818
)ppendix Anso matrix
The Body Shop
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STRATEGIC MARKETING MANAGEMENT
MA% Bansen/ %. +2009,. Marketing Management. &ng#and 'earson &ducation imited. am/ ./ Bair/ ./ > / M. +2008,. !"e %ssentials of Marketing' (t" edn. anada
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