BODY SHOP

Case Study

GROUP MEMBERS

191610042 – Sohaib Azeem

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Body Shop as an International Business Case Study
The body shop is an international cosmetic brand successfully progressing in many countries. This
brand is covering many beauty/body products but distinguishing themselves by putting emphasize on
social and environmental issues. As an international brand, body shop entered in the Pakistan market
from 2006. Since then they opened many outlets in different cities of Pakistan. Recently, the body shop
open an outlet in Fazal Centre, Gujranwala. In this study we are trying to explore the challenges and
problem the body shop faced in the evolvement and growth in Pakistan while availability of many
other brands. In this way our study type is descriptive in nature. This study will contribute in literature
and enables managers of other brands who want to launch international brands in Pakistan that what
are the strategies and decisions they should made so that the challenges and problem will be
minimized. This study gave the pathways and strategies to the management of similar type of brand.

Introduction
Company’s Background
The body shop journey began in 1976 in Brighton, England with the ideal vision of its founder, Anita
Roddick, who believed in something revolutionary. She believes in creating a business that can be a
source of benefits to all those who are in touch with the business. Following its vision, The Body Shop
has been seen as a significant change organization for over 40 years. In 2017, Body Shop found a new
home in Natura and Aesop, along with other like-minded souls. It is now part of Natura & Co, a global
cosmetics group committed to the non-violent beauty and ethical business. The first Pakistan store
opened in Karachi in 2006. Since then, we have opened 34 stores across Pakistan and are working to
build more outlets in Pakistan.
Mission Statement
The Body Shop’s mission statement
“A company with a difference”
“Their reason for being is:
 Dedicate our business to the recreation of social and environmental change.
 Creating a creative balance between financial and human needs of our stakeholders: employees,
customers, franchisees, suppliers and shareholders.
 Courage to ensure that our business is environmentally sustainable: to meet the needs of the
present without compromising the future.

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  Meaningful participation in the local, national and international communities in which we do
business, adopting a code of conduct that ensures care, honesty, justice and respect.
 To protect the environment, human and civil rights, and to campaign vigorously against animal
testing in the cosmetics and toilet industries.
 Working tirelessly to bridge the gap between principle and practice by making fun, passion and
care a part of our daily lives.
Body Shop Products
The Body Shop carries a wide range of products for the body, face, hair and home. The Body Shop
claims its products are "inspired by nature" and feature ingredients sourced through the Community
Trade program.
Products include:
 Body butters (including, Satsuma, Moringa, Olive, Strawberry, Mango, Shea, and Coconut)
 Body scrub, body butter and bath lilies
 Cosmetics (including eye shadow, mascara, cotton rounds, lipstick and lip gloss)
 Complete combinations of skin care (including aloe vera, tea tree, vitamin C, vitamin E, and
seaweed)
 Men's skin care (Including maca root and white musk)
 Hair care (including their famous Banana shampoo and Banana conditioner)
 Fragrances (Women's and Men's)
 Bath products including shower gels and solid soaps.
Body Shop Competitive Advantage
The Body Shop is definitely not the average beauty retailer. From their ethical moral to their active and
ongoing social activism, value is added to the customer’s entire experience.
They build their competitive advantage around their 5 core values:
 Protect the planet
 Activate self esteem
 Against animal testing
 Defend human rights
 Support fair trade

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Industry Background
Historians can trace our use of cosmetics and beauty to 4000 BC, and the early Egyptians who used
Kohl to make eyes. Today, the worldwide beauty product, which includes everything from hair and
skin care to make-up, is an estimated 5 425 billion industry. The history of the beauty industry is as
diverse and colorful as the lipsticks and nail polish on display at your local makeup counter.
Early cosmetic and beauty reigns relied heavy upon natural elements, including berries, bugs, and
charcoal to create a variety of colors, and many products were used for more than one purpose, a
preview of today’s makeup multi-taskers. Early beauty treatments also consumed the area’s natural
resources, locally obtaining natural materials for scrubs, pastes, and exfoliates. This pattern of using
local, natural ingredients is an ongoing trend throughout the history of the beauty industry.
In the late 19th and early 20th centuries, the beauty industry became an important and viable career
path for women, especially African-American women, who designed haircuts specifically for different
textures. Prepare finished products. Madame CJ Walker and Marjorie Joyner were two African-
American businessmen who used their expertise to create a new standard of beauty for their
communities.
Today, the beauty industry is back in its roots, with science-based products doing double and triple
duty. Not only do women want to look beautiful, but they also want their make-up and hair care
products to benefit them. Beauty balms, correction creams, ultra-serum and anti-aging formulas are
designed to show a woman's beauty, correct any flaws or flaws and help her shine inside and out.
SWOT Analysis
1. The Body Shop

Strengths
 A charismatic leader
 Brand reputation: Body shop received PETA award, give money to welfare organizations.
 Ethical business practice
 Graphical identification: unique colors and designs.
 Eco-friendly: Products made from natural ingredients.
 Use 100% post-consumer recyclable plastics for bottles
 It does fair trade with small communities

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  Global position: located in 61 different countries
 Management Techniques: Classification is easy to communicate and women are treated equally
with men.
 Strong customer experience: Shops have a unique atmosphere, the idea is to provide a sense of
uniformity to customers in all body shops around the world
 Study of customer’s behavior and needs
 Testing on voluntary staff

Weaknesses
 Have many mature products
 No adds: it is using a word of mouth strategy
 Lacking in introduction of celebrities to attract young crowd
 High transportation costs
 Avoid traditional distribution channel
 Though candidate selection
 Controversies: criticism of charging 50% more Irish customers than the British ones

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Analysis
The most important strength of The Body Shop is that its products are never tested on animals and the
product is 100% recycled after packaging. Body Shop believes in empowering the community. It
targets small communities to import raw materials, which allows them to increase their employment.
The company's agenda is to take care of its employees, customers and the environment. The brand has
a huge network, has stores in 61 countries, and they all provide the same environment that is an
integral part of the customer experience. Along with her involvement in charity, her leader, Anita
Roddick, made her media report. Another important step taken by The Body Shop is to study customer
attitudes and needs, as well as its unique management techniques.
One of the weaknesses of the body shop is the presence of many adult products in its catalog, which
means that it lacks innovation and therefore lacks research and development. Due to their non-
advertising policy, their products are not known to many people and it is becoming very difficult to
reach customers as newcomers are targeting the market through large marketing campaigns. For
example, many companies are using celebrities to promote their products, especially to reach younger
customers. Higher transportation costs also affect the price of a company's products. The recruitment
process is really difficult and costs the company a lot on time.
2. Cosmetic Industry

Threats
 Hardening of the laws on animal testing in Europe
 New ingredients prohibited by the European legislation

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  Unstable supplies of raw materials
 Strong competition in market
 Requirement for suppliers to obey to ecological standards
 Need of environmental certification
Opportunities
 Growth of the male market
 Improvement the packing quality to make the product attractive
 Increased awareness of organic and eco‐friendly product
 Increasing number of online buyers
 Ageing population: new market segment
Analysis
The biggest business opportunity is the male customer segment that has just emerged. Improving
packing features, more customers can be brought from all walks of life to make the product more
attractive. Online market expansion can be a good opportunity. Therefore, cosmetics are very personal
and need to be tested before buying so that the online platform will not only bring new customers but
also promote the loyalty of existing people. Increasing customer honesty for environmental challenges
can open the door to new products but also to newcomers.
On the other hand, the enactment of new laws on animal testing and the growing concerns of the states
about the environment could affect product manufacturers. For example, if some products require
some environmental certification to be released, the market will change completely. Unstable supply of
raw materials can affect production due to economic problems as well as transportation problems.
Summary of Analysis
Organic ingredients and against animal testing is strength. Weakness is advertisement and need strong
base should launch in BRIC. The supplier threat is high and opportunity to increase the male product.
After analysis the company’s management should take the opportunities and take steps to remove the
threats to survive or enhance their brand experience in future.
Overview / Analysis
The brand was built around five core values: building self-confidence, fighting animal testing,
supporting community fair trade, defending human rights and protecting the planet. In addition, it has a
specific marketing strategy. Body Shop does not pay for advertising. It also avoided traditional
distribution channels and preferred to have less packaging time.

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Body shop uses new management methods. For example, staff are trained to be lenient and the
recruitment process is not about skills but about values. In addition, the employee can bypass the
manager and contact his director directly. These methods are also contributing to the body shop
experience.
Why body shop is popular
As in Pakistan people love natural and chemical free make-up and beauty products. Body shop claims
that their all products are chemical free which attracts people more towards them as they are chemical
free their all products can be tested on animals as well. Females didn’t prefer make-up brands that are
new in market they always prefer brands that can be trusted not only by them but also by many others.
International and national actresses also prefer body shop as their first preference. Body shop is a high
end make-up store but with a wide skin care range. Body shop not only carries make-up products but
also it deals with skin care as well. Corporate social duty (CSR) or corporate citizenship involves
organizations carrying on in a socially capable way, and managing different business parties who do
the same. It implies: A commitment, past that required by the law and financial aspects, for a firm to
seek after long haul objectives that are useful for society. The proceeding with duty by business to
carry on morally and add to monetary turn of events while improving the personal satisfaction of the
workforce and their families just as that of the neighborhood network and society on the loose.
The Body Shop is a maker and retailer of normally motivated, morally created magnificence and
makeup items. As indicated by The Body Shop Corporate Social Responsibility site, "In the event that
business accompanies no ethical compassion or good code of practices, at that point God help all of
us." is The Body Shop's mantra. The Body Shop dispatched Community Trade. It is a focused on
flexibly anchor system to buy normal fixings and embellishments from socially or financially
underestimated networks far and wide. It gives these makers admittance to a market that would
somehow be far off and gives a reasonable and dependable salary, just as a pledge to making a feasible
business. For instance, The Body Shop's saturating socks created by a Community Trade Supplier,
Craft Aid in Mauritius, gives work to 160 individuals, 40% of which have handicaps.
Engaging the Community through Community-based Projects: One way to deal with taking part in
corporate social duty is through network based advancement ventures.
An example: The Body Shop's dispatch of the 2008 Stop Violence in the Home lobby on the topic of
companionship. By giving functional apparatuses to engage ladies to offer help to companions out of
luck, the mission meant to be a wellspring of motivation and backing for many ladies around the globe.

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Growth of body shop in Pakistan
On the off chance that there is one thing ladies will spend on in spite of a need to call the shots on their
handbags, it will quite often be make-up items. Taking everything into account in Pakistan. Imports of
oils and resinoids, perfumery and latrine planning were almost $7.7 million in June FY10, an
expansion of around 29 percent over a similar period a year ago. As the nearby scene is overwhelmed
with a few global organizations, assortment and decision for purchasers winding, so does rivalry in the
business. Starting late, items from organizations, for example, L’Oréal Paris, Neutrogena, and
Maybelline. Body Shop is getting one of the regular commonly recognized names. The neighborhood
players are intently following behind, expanding their item portfolios, yet additionally driving up
incomes with showcasing and appropriation endeavors. In 2008, Luscious Cosmetics, a nearby brand
dispatched its scope of make-up merchandise, professing to utilize just natural and creature free fixings
in its items. These brands has been very generally welcomed by the buyers. Samsol, a main beautifying
agent’s organization of Pakistan began with a little hair oil business in 1962. As of now it has
shampoos, hair hues, baby powders and shaving creams on its items run. What's more, joining the
positions of these built up beautifying agents organizations is the prestigious Pakistani VIP Atiqa
Odho, who happens to be an incredible marvel symbol of her occasions. The brand is in effect broadly
exposed and promoted on the neighborhood media. Riding the flood of market development in the
nation, Unilever Pakistan’s Fair and Lovely is additionally commending its 6th year of twofold digit
turnover development while Ponds wandered into an enemy of maturing item which has seen rich
reaction from customers. A somewhat offbeat improvement in men’s makeup is additionally being
seen because of the elevated impact of media, rising per capita pay and an expanded association of
Pakistani men in a few advertising and advertising jobs. Colognes, deo splashes and sticks, shower
gels, and, the exceptionally offbeat reasonableness creams are currently promptly accessible as men’s
items at accommodation stores, indicating the changing pattern and inclination for makeup in the
nation. Advertisers have additionally been having their influence in spreading mindfulness with respect
to different excellence items and their employments.
Body shop is giving intense rivalry to every one of these brands and working monstrously great from
the time it's dispatched in Pakistan till today. Body Shop offers its clients an evaluate benefit to utilize
its items in its shop fronts, despite the fact that the real purchasing out proportion is lesser than the
evaluate extent. New types of make-up lines, for example, the recently imagined halal and mineral
make-up are additionally liable to fuel the beauty care products furor, despite the fact that some view
these as simple showcasing apparatuses to catch buyers. Saeed Ghani, a chain of home grown

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individual consideration items, has oil-based fragrances as an exceptionally famous halal product
offering. Because of a much globalized media, and expanding mindfulness and acknowledgment of the
utilization of beautifying agents by the two people, the market for make-up items is by all accounts a
rewarding one for both nearby and worldwide players. Regardless, items intended for the Pakistani
populace should be indigenized as per the taste and inclinations of the individuals to catch the market
with full power.
Company’s Evolvement and Challenges
One is how we use our business to meet the needs of society, especially young people, how some
consumer products make them feel. I think these are some of the areas we need to pay special attention
to. There are many, many challenges, but I think the most interesting thing for us is that we know
where we want to go. We have made a mark in the sand and that is the way. At least we know where
we are going and that makes it much easier to decide. Here or there with a little tweak, we are very
clear about a solution. It's a long-term goal, but it makes life a lot easier for our decision makers.
It is difficult. There are two elements to our company, one is what we do in running our business. The
second is how we use this business as a voice and I think it was Anita's brilliance, the brilliance of our
teams around the world, in using that voice to create momentum for change. The anti-animal testing
campaign is about that, and it has garnered the support of more than six million voices to impress the
United Nations. It is at the heart and soul of the body shop. The question is how can we take it and
build it?
Suitable Strategy and Action Plan
Reaching new targets
The body shop has to focus on a specific segment of the market as it is fighting not on the price level
but on the price level. New targets have emerged as young men and adult women who can embrace
body shop values. The same is true for emerging market markets that are now opening up.
Investment in research and development
The Body Shop's R&D department will be developed for new products that can be tailored to target
market segments.
Aggressive marketing campaigns
New departments will have to be created, similar to its non-animal testing policy, to maintain product
exposure for consumers and promote the company's agenda. Promotional strategies and aggressive
marketing campaigns ensure that the product entering the market is well understood. Creating market
awareness will ensure that you reach a higher level. A combination of Internet and mass media

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advertising should be used to reach all segments of the target market, especially in the US market. The
introduction of celebrities in product advertisements can also attract young people who will be their
future customers.
Environmental consciousness-raising
The body shop should only strengthen environmental policies by working with environmentally
friendly suppliers, and obtaining environmental certification will help the company maintain the brand
name and value of the product.
Keep The Body Shop identity
Finally, the identity of the body shop and the brand name L'Oreal must be maintained so that the
existing body shop can still connect the customer with the brand. If not, the customer may feel lost and
may not recognize the price of the body shop.

References
https://www.avenuefive.edu/brief-history-beauty-industry/
https://impakter.com/bodyshop-challenging-future/
https://www.academia.edu/11914681/The_Body_Shop

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