The Body Shop Marketing Plan Marketing Essay

The automobile trunk divulge Marketing Plan Marketing EssayThe purpose of this paper is through outline the live mart environment to establish the marketing devise of The Body Shop in Hull to help it hold the competitively position during the spring of 2013.The context of practise will analysis the external environment and the internal environment of the Body stigmatise in Hull, and based on these information to do the SWOT analysis to evaluate the current market and try to build reasonable marketing objectives which atomic add 18 benefits for the development of the their market shargon.background of the Body ShopAccording to the Bodys Shop website, their business is about engaging and inspiring customers around their individual use ups for skin care and hair care this relies on attracting and retaining the skills, knowledge and creative endowment fund to deliver excellent products with exceptional service to their millions of customers world all-inclusive. The company ha s a presence in over 51 countries, conducts business in 21 langu geezerhoods, operates nearly 2000 stores (about 70% are franchised), and employs over 6000 people in company stores, regional offices and UK-based Service concentrate on. Products are as well sold via the Body Shop at bag, an in-home sales plan that operates in 48 US states and Australia and via a company website in the US.Environment analysisIn order to add-on marketing share in a current market, companies must carefully examine a host of issues. One of the some important issues is the marketing environment. The marketing environment includes two essential elements, iodine is external environment, the other one is internal environment.External EnvironmentThis part explores that the trading and ability of an organization to satisfy its customers who are influenced by the external forces which dismount into two categories the macro and micro forces of the marketing environment (Dibb, 2006).Macro EnvironmentThe m acro-environment defined by Worthington and Britton (2009, p.6) as those macro-environmental influences on business which affect a wide variety of businesses and which can emanate not only from local and national sources but overly from international and supranational developments comprises the PEST checklist which stands for Political, Economic, Sociocultural and Technological.PoliticalThe governing will shrink the finance expending, which may further reduce consumers shopping willingness. At the same time, governments al minuscule passed specified law to forbid animal-testing (CNN, 2003). Additionally, this series of industries need to deal with the waste and rubbish, which comes with production. In this expressive style, all over the nations, societies, and companies would keep a sustainable development and material recycle using. The Hull Council involve doorstep recycle collections anda network of recycling sites, and they launch it easy for people to recycle.(www.hullcc. gov.uk,2012)Above all, the whole industry should not make any pollution to our environments. Lastly, the countrys political steady is the square up line to keep a regular industry chain (Nicholls A, Opal C, 2005).EconomicNot only in the UK but similarly in the whole EU, governments are now all suffering from financial issues more or less. Following debt-fuelled growth, households remain laden with debt. As a result, the sweetheart and in the flesh(predicate) care market saw increased price consciousness among consumers and thus a switch to family and great deal purchases during 2011 (Euromonitor International,2012) . In this situation, its really not a positive circumstance for snobbish label products development. More importantly, in such a negative economic situation, the companies need to do mostthing more, such as promotion and discounting, or develop some more products for some more potential consumers.SocioculturalIn this branch, the health and beauty industries need t o take the aging and male potential consumers into consideration, in which way to satisfy their special needs (Euromonitor International,2012).Secondly, an industry should be responsible for their customers. The products need to be developed without any synthetic ingredients in order to lower the happen for health (Euromonitor International,2012),and also over half of women refuse to use any beauty products, which have been tested on animals first.( peel offInc,2008).Lastly and equally importantly, Consumers upgraded to one time bulk purchases in categories such as bath and shower, deodorants, hair care and oral care (Euromonitor International,2012)TechnologyIncreasing the potation of e-commercial sale methods, such like mod coming products introduction and promotion on line, dealing and negotiation over the internet, or business consultants with live video chat. And the company is highly recommended to build their consume website or with some relative partners, via which to disp lay the productions and deepen their sends as well(Euromonitor International,2012).Meanwhile, companies should focus on developing new technologies, for example, whiting, In this way, related companies would also in a positive competitive. Most importantly, an efficient product is the root of a brand as to a company.Micro EnvironmentMicro environment have a very board influence on every organisation operating in a particular market, from market to distributers to competitors to customers, and such an impact is largely universally felt by such organisations (Dibb, 2006, p89).Market2010 is a year of prosperity and growth for the beauty and personal care industry. The growth rate of the industry pass judgment increased from 4% to 5%, which was contributed mostly by the mass market. In particular, with 3% value growth following a 0.5% drop in the at long last year, the recovery of cosmetics was the most eye-catching in this industry(Beauty and Personal Care State of the Industry, 201 1).CustomersTarget referenceThe first target audience is females, age 18 to 34, who have low brand awareness for the personify shop and little discretionary income but still want to indulge in the spa-at-home products.The second target audience is females, age 35 to 55. Currently in the US, there are 43.98 million total women ages 35 to 55.Buyer power(see appendice3).Customer behaviorThe price in Hull are similar low in the market, and people use less money to buy convenience products or high price products like house, so people have more free money to buy beauty products like products which are sold in the Body Shop especially the add up scratch have increased. (www.hullcc.gov.uk/,2012)(see appendice8).CompetitorsThe body shops main rival is Bath Body Works who notchs a variety of beauty products. Bath Body Works runs more than 1600 stores in the UK compared to the body shops 300 nationwide stores. In 2009, the turnover of Bath Body Works exceeded 2,300 million dollars, at the same time, it spent more than 915,000 dollars in advertising(see Appendice7). Compared the website paginate with The Body Shop, they are similar except the color, but The Body Shop have a high high brand loyalty(www.dmnews.com/beauty-product-retailers-tick-all-the-boxes-but-only-one-passes-the-sniff-test/article/265442/,2012)(see Appendice9).SuppliersThe suppliers of this industry could also be divided into three classes. The first one is Top-level brands, Most of the suppliers are sold in bulk and the diversity of special ingredient is not to a fault much, so the power of the suppliers is stronger than other suppliers. The second one is Mid-Level instigators. In this level, the suppliers also produce non-differentiated products and specialized . The power of those suppliers is also strong, and the switching costs are low as the same as top-level brands. The last one is Generic Brands. in that respect are various suppliers in this group, the diversity of the products is low , therefore, the switching costs are low(IAA Cosmetics, 2002).DistributorsThere are two main kinds of distributors. One is according to the traditional distributors, the supermarkets played a dominant role in the distribution channel of beauty and personal care industry in the UK, it accounted for a 49.8% share of totality in 2010. (Hand Body Care Industry Profile, 2011)Another one is internet sell, The internet retailing makes beauty and personal care advanced remarkably.Internal environmentThe last step in the Environment Analysis is gathering information for the internal environment.Brand ImageThe Shop ensures their image by guarantying its cosmetics and personal care products are not tested on ani-mals, and that they contain sustainably sourced oils and other vegetarian ingredients (The Body Shop). In addition, the campaigns in which The Body Shop participates is another step they take to make a difference both environmentally and individually.The company promotes beauty is in the customers eye kinda of the beholders (Hoovers, 2004).Competitive advantagesIf the company can sell the products which are hard to copy and have great value which their competitors cannot have, the company own the competitive advantages which can increase their market share and build their brand identity. We compare The Body Shop with LOreal and OlayNivea(see Appendices3,4).Product/ServiceThe Body Shopoperates in the global cosmetic and toiletries (CT) industry. FromEuromonitior, the CT industry includes the following broad group ofproducts baby care, bath andshower products, deodorants, hair care, color cosmetics, mens grooming products, oral hygiene, fragrance, skincare, sun care anddepilatories. Skin care products are the majority occupying 27% of all products. (Schieffer Multimedia The Body Shop Media Plan ). Company has already produced a range of over 600 beauty and health products and more than 400 related accessories including exfoliating bath gloves, mitts, body buffer s and so on until March, 2010. These products can further be segmented into two categories based onproduct ingredients those made from natural materials and those madefrom synthetic chemicals.As green policies TBS always pursues, company reduces their box by use as little packaging as possible in the first place. For the vast majority of products they use simple bottles and jars, with no secondary packaging (The Body Shop Values Report, 2009) and most of their gift packaging can be reused.TBS also provides varieties of services for customers. TBS official website includes a Technical Support area designed for those experiencing difficulty with the online store. An extensive FAQ section with categories pertaining to shopping, ordering, shipping, returns and so on(see appendice1,2).PriceThe prices are ranged from highest 43 pounds to lowest 2 pounds. Compared with the average income level in Hull, the price of TBSs products can be considered as relatively low-cost level. Compared wi th competitors in Hull, the price of TBS is medium level described as massige price.PlaceIn Hull city, TBS owns two stores managed directly by headquarter. There are also some shops which are run on a franchising basis in Hull. These two shops locating separately in Princes Quay Shopping Centre and St Stephens Shopping Centre which are largest shopping centers in the Hull where can attract quantities of people especially on the weekends.In order to satisfy the customers requirements and obtain timely and expatiate market information, the body shop the reduce the distribution channels, they want to do the direct market which do not contain any agents to sell their products. They use their own shops and websites to do the selling.PromotionThe body shop does little advertising because they regard stores as the most effective platform to advertise themselves.Advertising handed-down media the TBS in Hull advertises on traditional media such as magazines.New media the body shop try to us e new media to attract more customers, they make a high profit through the website campaign.TBS develops an e-CRM structure as network marketing of TBS matures and evolves. This system provides different services containing the Body Shop SPA, personalization program and so on. And TBS in Hull also sells products face to face with kind service. Staff of stores in Hull have been train well to be familiar with products and offer good service.(see appendice5)Following the development of the apple online shop they promote their own app software called Love Your Body. They also build the home shopping party plan in the UK.Personal sellingTBS had built a unique member club for loyal customers where rewards them with discounts, free gifts and access to the kinds of perks and privileges only club membership brings.They also have a lot of discounts and gift packages in different seasons and festivals which can attract customers.SWAT AnalysisStrengths1.Leader of Animal Protection2.Expand E-Com merce Activities3.Innovative products4..High brand loyaltyWeaknesses1.Small number of stores in UK2.Many products are in the mature of declining stage3.little advertisingOpportunitiesBans of animal-testing laws which help the body shop to attract more customers2.Expand The Body Shop at Home Program3.Increased awareness of organic and eco-friendly product4.Increasing number of online buyersThreats1.the shrink finance which influence peoples awareness to buy products2.Competition in Cosmetic Industry3.Risks in corporeal SupplyMarketing Objectives1.Reinvigorate the body shop in the minds of women who have previous experience with the brand to increase the market share.The body shop can do some campaign like give people free samples and show people the material of the product.2.Promote awareness of the Body Shop core brand and ad hoc mens grooming product offerings through targeted channels such that at least 35% of the target demographicare aware ofthe products and the unique values ofthe Body Shop.In Hull there are marginally more males in the general population than females whilst in the East Riding there are marginally more females, this is likely to be a function of the younger population in the city. The Hull City Assessment Report notes that in Hull in under 70 age bands males outnumber females in every age group whilst females outnumber males in older age groups. This highlights the continued trend towards higher female life expectancy(Economic Development Regeneration, 2011)(see Appendices8 ).ConclusionIn conclusion, in order to get a high market share and attract more customers, the body shop should do more advertising and extend their market to the men.AppendicesAppendice1 radiation diagram 1 The Body Shop UK Estimated sales as share of UK cosmetics and toiletries specialists sales, 2006-10SOURCE MintelAppendice2FIGURE 2 The Body Shop Outlet data, 2006-102006 2007 2008 2009 2010UKOutlet numbers312322338329311Of whichCompany owned261282299295297Franch ises6140393414Estimated sales per return (000)542577511477490Estimated sales per outlet (000)797849639536581SOURCE LOral Company Accounts and Annual Reports/MintelAppendice3FIGURE 3 The Body Shop shoppers in last 12 months, by gender, age and socio-economic group, November 2011Note Bars show The Body Shop shoppers relative to all people who have bought skincare, cosmetics and fragrances/aftershaves in the last 12 monthsSOURCE Ipsos Mori/MintelAppendice4FIGURE 4 The Body Shop shoppers in last 12 months, by ACORN group, November 2011Note Bars show The Body Shop shoppers relative to all people who have bought skincare, cosmetics and fragrances/aftershaves in the last 12 monthsSOURCE Ipsos Mori/MintelAppendice5FIGURE 5 The Body Shop Online consumer demographics, three month average to October 2011SOURCE comScore/MintelAppendice6 tabularise 1Table United Kingdom hand body care market distribution % share, by value 2010Channel% ShareSupermarkets/hypermarkets49.8%Pharmacies/drugstores19. 0%Specialist Retailers13.2%Others18.0%Total 100% obtain Datamonitor DATAMONITORAppendice7Table 2Compare with other beauty brandThe body shopLOrealOlayNiveaProduct lineMainly skincareBroadFocus on skincareMarket positionEnvironment friendlyLeaderMajor competitorIn skin body care marketCompetitive advantagesNatural-base brand valueVery experienced global brandLow price product innovationPrice rangeMid-rangeSlightly lower than the body shopMid-low(the body shop, Kannu Priya Rawat 30th Mar 2010)ONS MYE 2009 Hull East Riding GBAppendice8Table 3Resident populationONS MYE 2009 HULL East Riding GBNumber % Number % Number %Resident Population (2009)1 262,400 100%337,000 100%60,003,100 100%Males 132,800 50.6%166,000 49.3%29,495,400 49.2%Females 129,600 49.4%171,000 50.7%30,507,700 50.8%Source ONS Mid Year Estimates 20091Percentage is proportion of total populationAppendice9Figure6the average earning increaseSourceHULL ECONOMIC SITUATION UPDATE No. 31 28 April 2011Appendice9Table 4 compare th e Body Shop with BathBody work