The Body Shop International Limited was founded in 1976 by Anita Roddick. It offers products in the line of skincare, perfume, body care, bath products, and cosmetics, specifically retailing natural beauty products. This case study deals with the marketing mix components and marketing concepts adopted by the Body Shop International.
Christopher A. Bartlett; Kenton W. Elderkin; Krista McQuade
Harvard Business Review (392032-PDF-ENG)
November 13, 1991
Case questions answered:
- As a newly appointed marketing executive of The Body Shop’s marketing team, you have been tasked with writing a report that addresses each of the following areas:
a. Understanding customers’ needs, wants and demands is at the center of every successful business. Discuss the importance of The Body Shop International understanding its customer’s needs, wants, and demands.
b. Identify and discuss the marketing orientation/concept that The Body Shop adopts
- a. Explain the relevance of an organization analyzing the marketing environment.b. Considering the macro environment of The Body Shop, identify and discuss one social and one environmental factor that could impact The Body Shop’s business operations.
c. Lush is one of the key competitors of The Body Shop in the UK. Explain the relevance of The Body Shop conducting a competitor analysis.
- Task 3: Marketing Mix
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Case answers for Body Shop International
1.0 Introduction – Body Shop International Case Study
a. Company Overview – Body Shop International
The Body Shop International Limited is a British skin care, perfume, and cosmetic company (Bloomberg.com, 2018). It operates in the cosmetic industry retailing and producing ethically-made natural beauty products. It offers body care and bath products such as body cleansers, body scrubs, moisturizers, lip care, and fragrance. The company was started in 1976 with Anita Roddick as the founder and in 2006 it was sold to L’Oréal for about 940 million dollars (Hartzenberg, 2017). The company is headquartered at Croydon, London, and operates in about 66 nations through concessions, online shops, and stores. According to Mintel (2018), the Body Shop has over 2,500 stores globally.
In 2017, it recorded €1.5 billion in sales with an operating profit of -38.2% (€34 million). The brand was experiencing some difficulties under the ownership of L’Oréal. Before 2016, the company was recording about 4.9% year-on-year decline in total sales and for that reason, it was sold to Natural Cosmetics (Mintel, 2018). To increase its market share, the company started opening concessions in Spain’s El Corte Ingles store chains. The Body Shop retail offering includes over 950 products with brand pricing positioned at upper-end to mid of the mass market (Mintel, 2018). The closest competitor is the Lush brand.
b. Report Purpose
The report objective is to explain and identify the marketing mix components and marketing concepts adopted by the Body Shop International Company. Product offerings, place, and pricing strategies will be some of the marketing mix components discussed. The paper’s primary focus will be expounding on marketing environments that determine the competitive advantage of an organization. Besides, it will center on understanding the relevance of marking environments that influence business operations, the importance of customer needs, demands, and wants. The report’s purpose will also include conducting a competitor analysis. The aim of these analyses will be to understand the models and concepts underpinning business marketing environments and operations.
2.0 Task 1: Demands, Wants, and Needs
a. The relevance of understanding the needs, wants and demands of customers
Successful businesses, including the Body Shop International, often concentrate on understanding their customers’ needs, demands, and wants. As explained by Armstrong et al. (2015), assessing customers’ needs, wants and demands helps corporations build want-satisfying product offerings and value-laden consumer relationships.
Wants are described as the unsatisfied desires of a customer that are shaped by cultural and personal preferences which boost their fulfillment. Customer needs are part of human conditions which is a state of deprivation while customer demands are the measures of human desires of product/services driven by availability (Kotler & Armstrong, 2014). The table below provides a summary of the three elements (Kotler & Armstrong, 2014).
The importance of understanding customers’ needs, demands, and wants is to…