Strategies for Success in Cosmetics and Skincare Assignment Sample

Comprehensive Analysis of The Body Shop: Marketing, HR, and Financial Strategies

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Introduction of The Body Shop Assignment

This report determines the enbuvironment and organization structure that outlines a market plan for The Body Shop. The report will highlight the company's existing marketing strategies which will be assessing by implementation of a marketing mix. It will also cover up their current targeting and positioning strategies. This report will focus on the Human Resource plan of the company explaining development, training, and expansion reward within the organization. This report will attend to the monetary strategies of the Body Shop by examining their profit and loss account and balance sheet. The report will also provide a concise about the corporate social responsibility (CSR) of The Body Shop. After evaluating the entire factor of marketing and finance, at the end the report will estimate the effective approach which has contributed most significantly to the business's success.

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Company background

The Body Shop logo

Figure 1: The Body Shop logo

(Source:The Bodyshop, 2022)

The Body Shop was founded by Anita Roddickin 1976, who was a British entrepreneur, who understood health care, human rights, and environmental campaigns. The Body Shop is a cosmetics skin care and perfume company that manufactures and sells natural beauty commodities for healthy skin and body care (The Bodyshop, 2021). The company at present has a product range of over 1,000 which includes skincare, makeup, haircare, and body care products. These all products have awonderful smell with numerous choices according to skin needs and types. The Body Shop has over 3,000 stores located in the UK and internationally the company is dealing in 66 countries all of which stores are either owned or franchised. The Body Shop also deal in selling their products on an online platform through partnering with several websites like Sephora, Nykaa, etc, and also through the associates and The Body Shop at-home program (Voigtet. al. 2017). The owner of the company Anita Roddick died in 2007, but after that, the company is owned by the French cosmetics company L'Oréal between 2006-2017, the current owner of The Body Shop is the Brazilian cosmetics company name Natura & Co group.

Information on the Marketing Strategies of the Body Shop

The role of Marketing within Body Shop

Marketing strategy is a procedure that assists companies to intensify their accomplishments to customers in different markets and revolve them by providing them quality goods and services. An effective advertising plan helps the company to accomplish its preferred objectives, goal, and target. Targeting, segmentation, and positioning are the three main pillars of The Body Shop's marketing plan

  • Segmentation – the company's current marketing strategy focus on two type of market segmentation. The first methods are demographic segmentation and psychographic segmentation. demographic segmentation refers to where the company offers its products to both men as well as women (Fauziahand Mulyana, 2018). And psychographic segmentation attempts to understand the lifestyle, personality, and values of its customers.
  • Targeting – the approach the company applies helps in differentiating marketing which would refer to targeting the company's product more toward one target segment. The company focuses more on customers who want natural and healthy products. the plus point for the company is that it uses social and environmental campaigns to promote its brand in the target market.
  • Positioning – The Body Shop has been positioned strategically to meet requirements that are related to a healthy lifestyle and provide organic products for skin care. Positioning of products is the mindset of customers or positioning the products in the consumer's mind. The company is currently perceived by customers and its relationship with its competitors.

Implementation of the 4 P's (Product, Price, Place, Promotion)

  • Products: The product category of The Body Shop includes 350 body care products and around 600 sundry items. The company also provides modified skin care goods as per the pReferences and requirements of its consumers. The company's products include a natural element like vegetables, flowers, fruits, and different herbs as the main ingredient used in their manufacturing of goods. The company has launched perfume bars that can be used for lotions and scent oils and is available at every store at no extra charge for the same.

The Body Shop Products

Figure 2: The Body Shop Products

(source: The Body Shop, 2021)

  • Price: The price strategy of the goods of The Body Shop falls in the value range of lower to average depending on the product. Though, most of the product falls in the affordability of major customers. It becomes important for the company to know its target market and what the goal segment is willing to pay for the goods and services. The price should constantly be based on the pricing strategy of competitive firms. As a result, the company needs to know and in evolution about competitors' prices.
  • Packaging: The Company has kept promoting their product very simple and moderate, as they consider extreme wrapping. The company's overall ecological programs favor the refilling and recycling of bottles to give original recognition and dimension to their brand (Chairunnisa al. 2019) The company has to multiply some of its goods and has specified them as additional polished and subtle looks. They have also introduced 8 sub-brands where the company's name and logo have been given less importance. Another packaging strategy that is followed by the company is that they offer testers for their perfume and lotion so that consumers can smell and evaluate these products before taking any buying decisions.
  • Promotion: The Company's products always talked about self-esteem and an optimistic attitude. The company never makes any fake promise and claim to do incredible which is not possible. In the year 2012, the company decided to prepare itself for the future and is all set to attract the new age group with its fair-trade practices, price based strategy to serve the society in which it operates. The methods of creating the products are eco-friendly (Audi and Putra, 2020). The Body Shop has been victorious in a combination of innovation, kindliness, and performance in its products.

  • Place: The product of the company is accessible through the stores at different locations. The corporation has more than 100 stores in Australia and these supplies have been launched with the endeavor of linking with customers belonging to the young age group, especially women

Information on the Human Resource strategies (HR) of the Body Shop

Consider the Body Shop recruitment strategy, training, and development reward.

The Human Resource (HR) strategy of a business includes management through planning through the available human capital to act upon a range of business performances. Human Resource strategy include approach in the direction of Hiring, performance assessment, appraisal, expansion, and reimbursement of the workforce functioning in the association.

  • recruitment strategyis a way to appoint someone who first applies for the occupation with no conditional test. The recruitment procedure of the business stands on 3 easy restrictions. The 1st consideration is the entry criteria of the individual to exertion. The succeeding consideration check is to see if the person can stand for 8 hours, and the final consideration is to see if they can lift an additional 50 pounds of weight (Cooper, 2021). The business asserts that it decided to hire any person who meets every one of these requirements. As per the strategy, there would not be any drugs and conditions ensured for the individual applying for the career position.
  • Training and development - The Body Shop focuses on a variety of factors to offer guidance and growth programs to its workforce. Training and development incentives are the processes in an organization for the workers to create them conscious of their responsibilities, duty, and job roles. The company wants its workers to be resourceful is adequate to take the real-life challenge and achieve the goals and targets of an organization (Korovkin, 2020). The training programs increase the questioning skills, active listening, and development of self-awareness of the employees. Participants in the guidance and expansion agenda were asked to charge themselves beside all of these criteria at the beginning and end of the programs, which enables the business to monitor a person's development.

Information on the Financial Management Strategies of the Body Shop

Review the Body Shop Profit & Loss and Balance sheet and analyze their strategies through research.

The financial management strategy of The Body Shop is deliberatedin four diverse methods. The procedure of Sales assessment helps the company in a considerable way, as the company always gives importance to the calculation of its current sales volume and comparing it with the preceding year's sales and at last converting the outcomes into a proportion.

The effectiveness of the management strategies could be assumed by the financial forecasting which was done typically for The Body Shop to accomplish its current situation. According to studies the company used a mixture of two common methods of forecasting which are the account and the proportion of sales, both of these approaches provides the outcome of profit as the dividend of the business were considerable and the loss was also very insignificant (Kearins and Klyn, 2017).

The Balance sheet of The Body Shop for the year 2018 shows the sum assets of the corporation valued at 531million and on the other side, the sum liabilities of the corporation were valued at 180million.

The revenue statement or profit and loss statement of The Body Shop for the year 2018 show that the total revenue of the company is 806million which was 797million in the previous year. The (COGS) cost of the sold goods of the company was 194million in 2018 which provided a gross profit of 612million. Both the financial statements' Balance Sheet and the profit and loss statement of the company simplify that the business is progressively growing its revenue each year (Craft, 2021).

Income statement
Sales 422,733
Charge of goods sold 160,639
Functioning expenses 211,367
Interest expense (1,171)
Tax 15,570
Profit before tax 51,899
Profit after tax 36,329
dividends 10900
Earning reserved 25,429
Balance sheet
Existing assets 135,275
Permanent assets 110,600
Entire assets 245,857
Present liabilities 118,365
Debt (19,520)
Equity 147,029
Entire liabilities and net worth 245,875

Model of Analysis SWOT

The SWOT analysis is single best-proven management frameworks, which help the company to be familiar with more about itself by which it company can stand up with its strength, work on improving its weakness, overcome the threats, and explore all the opportunities. The SWOT of The Body Shop is as follows:

  • Strength – the strength of the company is as follows
    • Strong digital presence
    • Brand loyalty
    • Big franchise networks all over
    • Innovative creation
    • Unique product portfolio
    • Quality product and sustainability
  • Weakness – the weakness of the company are factors that are pulling down the company from the success which are as follows:
    • Quite a slow service
    • Weak supply chain
    • High prices of its products
    • Franchise system by which the proprietors do not have much control.
  • Opportunity – opportunity are the key factors that have an influence on the company to gain market opportunities
    • Building an omnichannel supply chain
    • Proper advertising
    • Growing importance on the health of its users (Purkayasthaand Fernando, 2017).
  • Threats – these are the external factors that have a great effect on the working of the company and pose potential harm to the company's not taken care of.
    • Huge competition
    • Accumulating raw materials
    • Customers' preferences are changing day by day.

Conclusion

The Body Shop is an international trade name that compacts cosmetics and skincare goods. The company has approximately 2900 outlets and also includes franchise stores across 64 countries worldwide. After discussing a marketing strategy, human resources strategy, and financial strategy it is obvious that every approach is performing a very important function in the growth along with the success of the company. The valuation of the consumer base and current market trends helps the company to appreciate the necessities, wants, desires, and condition of the customers which increase the amount of happy clients worldwide. The Body Shop for a time end focus on offering goods made up of ordinary resources which carry out withoutdamaging the surroundings by any means. Therefore, it is apparent that the correct proposition of industry strategy is a significant reason for the success and growth of the company.

Reference

  • Aditya Shastri, 2022. Complete SWOT Analysis of The Body Shop – 1 Stop-shop for Cruelty-Free Products (Online) :<https://iide.co/case-studies/swot-analysis-of-the-body-shop/>. (Accessed on 16/11/2022)
  • Chairunnisa, S.S., Fahmi, I. and Jahroh, S., 2019. How Important Is Green Marketing Mix For Consumer? Lesson From The Body Shop. JurnalManajemen, 23(2), pp.321-337.
  • Cooper, K., 2021. The Body Shop Just Smashed Recruitment Wisdom Apart. [online] Forbes. Available at: [Accessed 23 May 2021].
  • Craft.co. 2021. [online] Available at: [Accessed 23 May 2021].
  • Fauziah, P. and Mulyana, M., 2018. Formulation of The Green Marketing Development Strategy for the Body Shop Botani Square Bogor. In International Conference On Accounting And Management Science 2018 (pp. 171-181).
  • Helen Siwak, 2020. The Body Shop Launches eco-friendly concept store. (Online) :<https://ecoluxluv.medium.com/the-body-shop-launches-ecofriendly-concept-store-ecolux-lifestyle-1facaf0c82bc>. (Accessed on 16/11/2022)
  • Kearins, K. and Klyn, B., 2017. The body shop international plc: The marketing of principles along with products. In Greener Marketing (pp. 285-299). Routledge.
  • Korovkin, V., 2020. The Body Shop Case Analysis. The Challenges of Managing Business As Holistic Configuration. The Challenges of Managing Business As Holistic Configuration (April 14, 2020).
  • Purkayastha, D. and Fernando, R., 2017. The Body Shop: Social Responsibility or Sustained Greenwashing? 1. In Case studies in sustainability management and strategy (pp. 226-251). Routledge.
  • The Body shop, 2021. The Body Shop products (Online) https://www.thebodyshop.com (accessed on 15/11/2022).
  • The Body shop, 2022. The Body Shop logo (Online) https://www.thebodyshop.com (accessed on 16/11/2022).
  • Thebodyshop.com. 2021. Our Brand Purpose | Our Manifesto | The Body Shop®. [online] Available at: [Accessed 23 May 2021].
  • Voigt, K.I., Buliga, O. and Michl, K., 2017. Pure Beauty: The Case of The Body Shop. In Business Model Pioneers (pp. 25-39). Springer, Cham.
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