The Body Shop

Mission Statement: “A company with a difference” and the reason for being
different are as follows:

 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.

Vision statement: “To become a world-class retailer, offering its customers prestige
products at value-prices, with excellent customer service.”

Internal Environment:

SWOT Analysis:

Strengths and Weakness: Identifying the strengths and weaknesses of the Body
Shop will help to clarify how the company is doing so far and what the lacking
aspects are so that it would be easier to improve. The Body Shop International has
many strong traits of strength that have catapulted them into the limelight throughout
the years. Their first strong strength revolves around the lack of a conventional
marketing plan by The Body Shop. Instead, their focus was on a viral marketing
strategy where customers take the burden of advertising upon The Body Shop and
share the experiences about the products they used to their friends or relatives.
Entering the viral strategy needs clients who are willing to "trade" out of the way and
tell their friends about the whole experience, and this strategy is embraced by their
incredible community.
 Strengths Weakness
 Wide range of products of more  Little advertising of its products.
than 1200 and a culture of  Due to franchisee system little
continuous innovation in its control by the proprietors.
product variety.  Number of retail outlets limited
 The Body Shop has seen strong which impacts sales volume.
online D2C by increasing the  As competition picked up The
sales even in Covid-19 lockdown Body Shop struggled with high
period especially in the key prices and lost a lot of business
markets of UK and Australia. to competitors.
 High brand value as it is viewed  The Body Shop relies too much
as a socially responsible on Western Europe's highly
company because of its competitive and mature regions,
engagement in many notably the United Kingdom and
philanthropic activities. North America, which together
 Globally recognized brand, with account for nearly 70 percent of
an ethical and environmental sales. Even in its other major
ethos as well as the pioneer of market, Asia Pacific, the
natural ingredients products that company’s largest market is
are brought from fair trade Japan and it is absent from
sources. China.
 The company’s products are in
step with current consumer
trends, both for natural and
organic products and for ethically
sourced ranges.

Opportunities and Threats:

Finding out the opportunities and threats can help the Body Shop to take the
greatest possible advantage of chances for success and figure out the competition
around for minimizing the risk and to change marketing strategy to outperform the
competition.
Opportunities Threats
 The number of online buyers are  Increased competition from low-
increasing and hence it can use cost producers, such as
its website portal for sale and pharmacy chains Boots Co and
free delivery that will increase its Superdrug, and multiple retailers
market share. Safeway, Tesco and Sainsbury,
 Increased interest of men in the threatens to make The Body
body shop products. Shop’s products seem
 The planned strengthening of increasingly expensive.
The Body Shop at Home direct  Reliance on a number of small
selling arm and the Internet retail disadvantaged communities for
channel will help the company to the supply of certain ingredients
widen the customer base and and accessories puts the
better exploit sales potential in company at risk from regional
developed markets. crop failure, or market instability.

Core/ strategic capabilities and core competencies:

These are needed by an organization to meet the necessary requirement to

compete in the given market. 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.

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.
 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.

The Body Shop differentiate their competitors by their method of sales and
promotion. 5 M’s can be used to analyze 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
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
The Body Shop employs over 10,000 people across the world where more
than 72 percent consists of women.
d) Machinery
As machinery also includes physical resources so they are sourced from the
Body Shop community trade program which includes olive, soya, cocoa,
sugar and sesame from parts of Brazil to Samoa, Daabon in Colombia.
e) Money:
 VRIN Analysis:

 Valuable
a) International distribution network: The Company has an international
distribution system with agents and contracts in countries across the world.
This helps the company in making sure that its products are widely available
and easily accessible to all consumers.

b) Experience in expansion to other countries: The experience of expansion to

other countries directly as well as indirectly has allowed the company to gain
exposure and experience in international business, culture and trades.

c) Marketing skills: The Company has a unique blend of marketing skills, which
allows it to reach consumers directly through various channels, in a creative
way. This is a valuable resource for the company as it allows the company to
ward off potential competition.

d) Market research: The Company invests in market research regularly, which

allows it to stay updated with market trends, consumer needs, demands, as
well as the changes that take place in different markets and consumer groups.
This is also valuable as it then allows Body Shop International to make
changes in product and service offering accordingly.

 Rare
a) Use of progressive technology: The Company makes use of
progressive technology and invests in new technology to help it make
the business more effective and efficient. This is important for
maintaining competitive differentiation. The technology used by the
company also allows lower chances of human error and increases
precision.

b) Use of progressive harvesting methods: The Company makes use of

modern as well as new and innovative means of cropping and
 harvesting as well. The means of production are important for a
business to maintain cost efficiency. This allows lower levels of spoilt
raw materials and enhances the quality as well as the feel of the final
product. Also, it allows the company to maintain the product quality in-
house, and maintain consistency in the raw material.

c) Efficient use of economies of scale in production: The Company’s

effective and efficient use of resources has allowed it to maintain
economies of scale. The company uses economies of scale as a rare
resource available to maintain costs, enhance production, and increase
sales – all the while maintaining a high focus on premium quality and
consistency of taste.

 Inimitable
a) Human resource management: The Company has taken part in
exemplified human resource management in all its function – from
recruitment to training of talent management. This has allowed the
company to develop an inimitable resource that is aligned with the
organizational goals, and mission, and which is synonymous to the
organization itself.
b) Innovation: The innovation at Body Shop International is an inimitable
resource that allows the company to stay ahead of the competition as
well as maintain high leadership in the industry by having the first
mover advantage in its product portfolio continuously.

c) Organizational culture: The organizational culture at Body Shop

International is supportive and innovative. Employees share
information freely. The organizational hierarchy is flatter, which makes
leadership and follower relation smooth and easy. This organizational
culture and its aspects cannot be imitated by competition.

 Non-substitutable
a) Brand recognition: The brand value and brand recognition enjoyed by
Body Shop International is a non-substitutable resource. The high
 brand recognition across different consumer groups in different
countries allows the brand to enjoy high consumer ship, high sales,
and a unique bond with the consumers.

b) Emotional affiliation with consumers: This means that the brand fulfils
not only functional but also emotional and psychological needs of the
consumers. Again, this is an inimitable resource which the company
has developed because of its honest and trusted relationship with the
clients over some time.

Porter’s Value Chain Analysis:

 Primary Activities
Inbound Logistics: This deals 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.

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 categorized into different types.

Marketing & Sales: The Body Shop is a socially active organization which
supports communities, different charities that support children and women.
The brand image itself acts as a supplier of environmental products which
makes people aware of the company and purchase the products.
 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 3000 store over 70 market
segments, as they have been acquired by Natura and Co in the present all the
financials are done under them; quality control is monitored closely for quality.

BCG Matrix:

Boston Consulting Group developed the BCG Matrix in the 1970s which were
designed to help with long term strategic planning. Each product is characterized into
dogs, question marks, cash cows and stars.

Stars Question Marks Cash Cows Dogs

According to The At present, the Body For The Body Shop The Body Shop
Body Shop, their body Shop have a limited the range fragrance products
butter, facial masks, product range for considered as ‘cash would be part of the
shower gels, foot and men. The next step cows’ would include ‘dogs’ range seeing
eye creams be is for the their body butters as they have a small
referred to as stars as organization to focus and facial creams. range and The Body
they are the best on introducing new These products Shop competitors
sellers which trend products to the previously would offer the same
highest therefore are range and following have been classed product with many
market leaders in the the launch, these will as stars, however alternatives. It is
growth market. Whilst fall into the Question with the suggested that The
these products are mark category.  development of new Body Shop follow
stars, for The Body Following this The products (vegan), the strategy of either
Shop to retain its Body Shop could different ingredients bringing in new
position they should reposition these and scents these innovations of the
invest which can also question marks by prime products are product or simply
support them with promoting the no longer attractive. withdrawing it. 
innovation/new products online Due to these being
product development. through social media low market growth,
and perhaps create The Body Shop
an in store campaign would need to focus
which could help on a strategy which
increase market consists on low
share. provision to
maximize profits
which will give the
organization more
funds for investment
in stars or
repositioning
question marks.