THE BODY SHOP MARKETING PLAN ANALYSIS 19th, December, 2012
Table of Contents Company Background. 2 Macroen!"ronmental #nalys"s #nalys"s $ %&'T(.. 2 %ol"t"cal )actors. 2 &conom"c )actors. * 'oc"al )actors. * Technolog"cal Te chnolog"cal )actors. * &n!"ronmental )actors. + (egal )actors. + M"croen!"ronmental #nalys"s #nalys"s $ %orters %orter s )"!e )orces. + '-T #nalys"s. / 'trengths. / -eaknesses. / pportun"t"es. / Threats. / 'egmentat"on 'trateg"es. Market Target"ng. 'trateg"c %os"t"on"ng. Company Current Market"ng 'trategy 'trateg y. %roduct %r"ce. %lace. %romot"on. %roposed Market"ng M"3 $the ps. %r"ce. %roduct %romot"on. 9 %lace. 9 %eople. 9 %rocess. 10 %hys"cal &!"dence. 10 &ffect"!eness of the Current C4M of the Body 'hop. 10 Current C4M 'trategy 'trateg y. 10 5neffect"!eness of Current C4M6 12 7e8 C4M bect"!es. 12 :o8 the obect"!es 8"ll be ach"e!ed. 1* 'upport"ng the 7e8 C4M 'trategy ;s"ng the +%s of Market"ng M"3. 1* The Body 'hop Market"ng %lan. 1+ Current Market, Customer, and 5ndustry Trend Trend.. 1+ 7e8 Market bect"!es. 1/ # Market"ng Budget to #ch"e!e the 7e8 bect"!es. 1 &!aluat"ng the %erfomance of 7e8 Market"ng bect"!es. 1 Conclus"on. 1 -orks C"ted. 19
Company Background Dame #n"ta founded the Body 'hop Company, 8h"ch "s located "n the ;n"ted <"ngdom, "n 19. Today, th"s company operates "n 1 countr"es across the globe, 8"th close to 2 /00 outlets. The company ma"nly produces and sells a !ar"ety of beauty and cosmet"c products, 8h"ch total to appro3"mately 1 200. The Body 'hop ma"nly targets males and females of d"fferent age groups. 5n 200, the o8nersh"p of Body 'hop 8as transferred to (real, a )rench cosmet"cs company. The m"ss"on of th"s company "s to "mpart selfesteem "n the"r cl"ents, protect the en!"ronment, be ad!ocates aga"nst an"mal test"ng, 8h"le defend"ng human r"ghts, and support"ng the commun"ty t rade =Mennen, 2011>.
Macroen!"ronmental #nalys"s $ %&'T( %ol"t"cal )actors D"fferent factors "n the e3ternal en!"ronment of Body 'hop cont"nue to affect "ts market operat"ons. Most of these factors are beyond the control of th"s company, as "t has less "nfluence on "ts e3ternal en!"ronment. T8o maor pol"t"cal factors ha!e affected the product"on and sale of beauty and cosmet"c products by th"s company. )"rst, pol"t"cal "nstab"l"ty "n ?uatemala l"m"ts the companys product"on of beauty products. ?uatemala produces #loe @era used "n manufacture of beauty products by the Body 'hop. %ol"t"cal "nstab"l"ty destab"l"Aes maor bus"ness processes and bus"ness transact"ons 8"th fore"gn countr"es. 'econdly, %eru "s also faced 8"th pol"t"cal "nstab"l"ty, yet "t "s the maor producer of the BraA"l nut o"l, used "n manufacture of beauty products =#ssenmacher, 2012>.
&conom"c )actors Body 'hop Company ut"l"Aes the franch"s"ng pol"cy as one of "ts strateg"es for gro8th. The decreas"ng "nterest today makes the company stands a better gro8th opportun"ty as th"s 8orks "n "ts fa!our. 'econdly, the global trend e3h"b"ts a decl"ne of f"nanc"al "nst"tut"ons, e!en as countr"es are ad!"sed to brace for tougher econom"c t"mes ahead. The Body 'hop, be"ng a player "n the global economy, 8"ll also feel a p"nch "n case th"s happens "n the future. 5n add"t"on, the current e3change rate "nd"cates a gradual decl"ne of the pound. Therefore, cont"nued 8eaken"ng of the pound may result "n "ncreased pr"ces on "mports, "nclud"ng products and product "ngred"ents =#ssenmacher, 2012>.
'oc"al )actors Most soc"al factors 8ork "n fa!our of the company. )"rst, there "s "ncreased a8areness of the companys fa"r trade, as 8ell as the nature of
products, 8h"ch are natural, de!o"d of an"mal test"ng. #dd"t"onally, more men are concerned 8"th the"r appearances, thus 8"ll go for beauty products. The company has reg"stered an "ncrease "n the number of onl"ne customers, cons"der"ng that "n 200 appro3"mately / percent of Br"t"sh fam"l"es had access to the "nternet. )"nally, the 8"ll"ngness of the buy ant"age"ng products "s a boost to the company =Mennen, 2011>.
Technolog"cal )actors Dangerous chem"cal and ac"d"c components such as .
&n!"ronmental )actors The company ensures susta"nable packag"ng of products and safely d"sposes or recycles byproducts. #dd"t"onally, the companys respons"b"l"ty "n the deforestat"on "ssue ra"ses concerns, s"nce the"r "ngred"ents such as BraA"l nut o"l and palm o"l are suppl"ed from forests "n conser!ed places =Mennen, 2011>.
(egal )actors The &;s enactment of a chem"cal leg"slat"on "n 200, reu"r"ng all "mported chem"cals "n &urope to measur"ng 1 tonne per year, undergo a reg"strat"on 8"th the ne8ly set up body of &uropean Chem"cal #gency =&C:#>. #dd"t"onally, from March 2009, an"mal tested products 8ere banned. Th"s affects Body 'hop d"fferently =#ssenmacher, 2012>.
M"croen!"ronmental #nalys"s $ %orters )"!e )orces The probab"l"ty of ne8 entrants "n the market "s lo8 as there e3"sts h"gh
barr"ers to ne8 entr"es "n the market. Th"s "s because of the e3"st"ng beauty compan"es "n the market, 8h"ch are mature and strongly establ"shed. The suppl"ers to Body 'hop are small and l"m"ted. These are ma"nly commun"t"es that engage "n fa"r trade 8"th the company for pro!"s"on of company "ngred"ents. There "s cons"derable r"!alry bet8een Body 'hop and other beauty compan"es. :o8e!er, the ma"n compet"tors "nclude ohnsons and ohnsons, Doy 'oaps, (oreal <"ds 'hampoo, and :"malayas Baby Care. These are mature markets, 8h"ch are also n"che players. #part from "ts reta"l outlets and consultants, Body 'hop has no spec"f"c group buyers. )"nally, subst"tutes for Body 'hops products are ma"nly the homemade and other nonorgan"c beauty products =.
'-T #nalys"s 'trengths 7"che pos"t"on"ng by Body 'hop makes "ts products un"ue "n the market, and th"s helps d"fferent"ate them from those of compet"tors. The company "s also kno8n for "ts eth"cal stand of aga"nst an"mal test"ng, as "t a"ms at pro!"d"ng natural products to "ts customers. 5n add"t"on, the d"!ers"f"ed geograph"cal presence "s ad!antageous. Th"s company has 1 branches across the globe. Th"s "s an opportun"ty for gro8th, e!en as market r"sks are m"n"m"Aed. )"nally, by pract"s"ng fa"r trade 8"th the poor 8orld commun"t"es, Body 'hop "ncurs lo8 costs of "ngred"ents, 8h"le ma"nta"n"ng an eth"cal "mage to the publ"c =#ssenmacher, 2012>.
-eaknesses There has been a pre!"ously cons"derable decrease "n Body 'hops prof"ts. Bet8een 200 and 200, prof"ts dropped from 9.+ percent to ./ percent. 5n add"t"on, there "s 8eak performance, as the ;< market has "n the past reg"stered a 8eak performance as compared to other markets. Th"s leads to a decrease "n market shares =#ssenmacher, 2012>.
pportun"t"es The test"ng of d"fferent cosmet"c products "n 200 establ"shed that they
used harmful (ead "n the"r l"pst"cks. :o8e!er, Body 'hops products 8ere purely natural, thus, boost"ng consumer trust "n Body 'hop. 5n add"t"on, the onl"ne a!a"lab"l"ty of Body 'hop captures potent"al customers "n a costeffect"!e manner, as more people today search onl"ne "nformat"on on beauty products before buy"ng =.
Threats 5ntense compet"t"on from other b"g and small cosmet"cs company has forced Body 'hop to reduce product pr"ces for fa!ourable compet"t"on "n the market. Clash"ng 5deology "s another threat. '"nce (real acu"red Body 'hop, "ts an"mal test"ng on products confl"cts 8"th Body 'hops stand aga"nst an"mal test"ng. Th"s becomes confus"ng to cl"ents. )"nally, the global unpred"ctab"l"ty of the economy forces people to cut on spend"ng and sa!e money for future use. Th"s reduces compan"es market share =#ssenmacher, 2012>.
'egmentat"on 'trateg"es Body 'hop bases "ts market segmentat"on on t8o ma"n aspects, 8h"ch "nclude beha!"our and demograph"cs. Bas"ng on demograph"c segmentat"on, market segmentat"on "n!ol!es age. Th"s therefore falls "nto t8o ma"n categor"es of customers, "nclud"ng adults and young people. 5n beha!"our"st"c segmentat"on, customers are categor"Aed "nto t8o groups, "nclud"ng ad!anced users and beg"nners. Therefore, market segmentat"on results "n four categor"es of customers, "nclud"ng young ad!anced users, m"ddleaged ad!anced users, young beg"nners, and m"ddleaged beg"nners =%ahla!anAadeh, 2011>.
Market Target"ng Body 'hop targets more females aged1//. These should be 8ell educated and 8"th good computer sk"lls. The k"nd of men Body 'hop targets are those aged *0*/, 8"th a stable "ncome. Men "n the cosmopol"tan are also targeted due to the"r "ncreased a8areness of the"r phys"cal appearance. 7onetheless, the targeted customers are those that are 8"ll"ng to spend more on beauty products, g"!en Body 'hops cons"derably h"gh product pr"ces. These target customers are also those
that apprec"ate and sho8 "nterest "n beauty products that are en!"ronmentally fr"endly. 5n return, Body 'hop donates a percentage of "ts prof"ts to char"ty, and ma"nly construct"on of schools "n 5nd"a and ?uatemala.
'trateg"c %os"t"on"ng The Body 'hop uses !ar"ous strateg"es to appeal to customers. 5ts stand aga"nst an"mal test"ng and support for fa"r commun"ty trade sho8s pass"on. The m"ss"on of the company to act"!ate selfesteem, protect human r"ghts and the en!"ronment br"ng out the company as respons"ble and natural, an appeal"ng "mage to customers =#ssenmacher, 2012>.
Company Current Market"ng 'trategy The Body 'hop bases on "ts "mage of be"ng natural and earthly to market "tself. Therefore, the brand messages carry th"s "nformat"on. Most of the market"ng for Body 'hop "s done onl"ne as "t "s bel"e!es that most en!"ronmental"sts do not subscr"be to ne8spapers.
%roduct %roducts "nclude sha!"ng, ha"r and body, face care, accessor"es, and &au de To"lettes. The company conducts annual research on relat"onsh"p bet8een the product and market demand. These products come "n packages, 8h"ch are cons"derably b"g. ?enerally, customers are not g"!en an opportun"ty to choose from a 8"der range of products, as these are not d"!ers"f"ed.
%r"ce The pr"ces of Body 'hop products are cons"derably h"gh because of the great d"fferent"at"on and nature of brand"ng, 8h"ch "s eth"cal and en!"ronmental fr"endly. The b"g packages of products contr"bute to the"r h"gh cost. Th"s "s 8hy the target market "nclude the f"nanc"ally stable.
%lace The Body 'hop ma"nly sells "ts products "n "ts d"fferent phys"cal outlets, at the Body 'hop :ome 'cheme, and o!er the "nternet. :o8e!er, th"s company has "n!ested more "n "ts !"rtual presence. 5ts onl"ne d"str"but"on channels help "ts cl"ents to shop for products more eas"ly.
%romot"on %romot"on of mens products "s through monthly ad!ert"sements "n d"fferent per"od"cals that target men. 5n add"t"on, products for men are ad!ert"sed for the 8hole year on ?oogle #ds and other promot"onal s"tes 8"th h"gh male !"e8"ng. -omens products are ad!ert"sed through flyers and other channels 8"th h"gh female aud"ence throughout the year. #dd"t"onally, promot"on "s through g"fts and presents to spec"f"c females four t"mes a year =#ssenmacher, 2012>.
%roposed Market"ng M"3 $the ps Customer relat"onsh"ps are essent"al "n the market"ng strategy of compan"es. Therefore, bas"ng on customer relat"onsh"ps of Body 'hop Company, recommendat"ons on a more effect"!e market"ng matr"3 can be made. Th"s ne8 market"ng m"3 could be effect"!e, as the current one has not managed to ach"e!e the sales and market"ng targets of th"s company.
%r"ce )or a better market"ng m"3 for Body 'hop, the pr"ces of "ts products should be cons"derate of the present econom"c cl"mate. Therefore, pr"c"ng should not be based on the"r brand"ng, but be determ"ned "n relat"on to the"r compet"tors pr"ces. :"gh pr"ces make customers shy a8ay from buy"ng products, cons"der"ng the present harsh economy. Therefore, lo8er pr"ces, 8"th compet"tors "n m"nd, 8"ll attract more customers.
%roduct
The company should cons"der product d"!ers"f"cat"on. -hen products are d"!ers"f"ed, customers 8"ll ha!e a lot to choose from, thus el"m"nat"ng l"m"tat"on of the"r cho"ce. 5n add"t"on, reg"on spec"f"c products 8"ll be h"ghly apprec"ated "n the market. )or "nstance, produc"ng and sell"ng sunscreens "n 5nd"a 8"ll boost market shares of the company. %roducts "n smaller packag"ng 8"ll attract more customers as they are eas"ly affordable, compared to the b"g e3pens"!e packages offered today by the company.
%romot"on Body 'hop should "mpro!e "ts onl"ne channels of d"str"but"on by !entur"ng "n the soc"al med"a channels such as )ace book, T8"tter, and Eou Tube for ad!ert"sement purposes. The Body 'hop should launch a page for each of these s"tes and "n!est more "n soc"al med"a ad!ert"sements. %romot"ons on the soc"al med"a 8"ll "ncrease product !"s"b"l"ty as more people today spend a cons"derable t"me on )acebook, T8"tter, and EouTube. #dd"t"onaly, team"ng up 8"th med"a channels such as MT@ 8"ll help "n the promot"on of the e3"st"ng products.
%lace &3plor"ng ne8er markets "s essent"al for Body 'hop to ach"e!e "ts bus"ness obect"!es. 5n!estment "n ne8 markets 8"ll reduce the companys operat"onal costs, as the company 8"ll use the resources of the host country. 5n add"t"on, the company should make "ts "nstore e3per"ence for customers better. )or "nstance, p"ctures "n the stores should be replaced 8"th ne8 ones, b"llboards and posters sho8"ng the months theme should be "ntroduced "n the stores =Mennen, 2011>. &nhanc"ng the "nstore e3per"ence for customers 8"ll make shopp"ng to be an e3c"t"ng procedure and not bor"ng =#ssenmacher, 2012>. Th"s ne8 market"ng m"3 could be effect"!e, as the current one has not managed to ach"e!e the sales and market"ng targets of th"s company
%eople
)"rst, the consultants and shop ass"stants 8ork"ng for the Body 'hop are "nfluent"al "n the market"ng process of the company =%ahla!anAadeh, 2011>. These should therefore, be g"!en adeuate tra"n"ng and enhanced product "nformat"on to deal 8"th customers better.
%rocess n the process, body 'hop must ensure a rel"able onl"ne presence. Th"s "s because most men prefer to shop for beauty products onl"ne and not phys"cally. Currently, Body 'hop does not ha!e a b"g brand a8areness due to "ts restr"ct"!e modes of publ"c a8areness creat"on. 5ts onl"ne d"str"but"on channels are l"m"ted. Therefore, to sol!e lo8 brand a8areness, further "n!estment "n "ts onl"ne presence "s "mperat"!e.
%hys"cal &!"dence %hys"cal e!"dence for the company should "nclude mak"ng the "nstores fa!ourable to men by "nclud"ng more male staff. Th"s ser!es to su"t the needs of both genders. #dd"t"onally, the onl"neshopp"ng e3per"ence should be made eas"er and more e3c"t"ng for customers. &ffect"!e customer relat"onsh"p management 8"ll reta"n customers and de!elop the"r relat"onsh"ps. Therefore, the recommended market"ng m"3 ensures the "ntegrat"on of and balance bet8een people, technology, and process. The "nclus"!eness of these 8"ll result "n prof"tab"l"ty and customer loyalty for the company =%ahla!anAadeh, 2011>.
&ffect"!eness of the Current C4M of the Body 'hop Customer 4elat"ons Management "n!ol!es the strateg"es used by a company to obta"n customers and de!elop longterm relat"onsh"ps 8"th them.
Current C4M 'trategy The body shop cons"ders customer relat"ons as one of the most cruc"al aspect "n "ts operat"ons. Th"s "s because the management has real"Aed the longterm benef"ts of customer retent"on as 8ell as customer comm"tment. The current body shop C4M a"ms at de!elop"ng and manag"ng the relat"onsh"ps bet8een the company and the customers and other stakeholders. The strateg"es enta"l use of mechan"sms such as technology "n organ"A"ng and coord"nat"ng bus"ness processes part"cularly those "n!ol!ed "n market"ng of the products. The a"m of the Body 'hop C4M "s to attract ne8 customers, reta"n the e3"st"ng customers, and ent"ce customers 8ho ha!e e!er used the"r products to start us"ng them aga"n. Moreo!er, the Body 'hop hopes to make use of C4M "n reduc"ng "ts operat"onal cost by decreas"ng the need for e3cess"!e use of other
market"ng strateg"es =Berndt F Br"nk, 200+>. The company has real"Aed that the loyalty of customers "s cr"t"cal for the success of the"r bus"ness. :o8e!er, the company needs to ded"cate the"r bus"ness to meet"ng the companys f"nanc"al needs and the needs of the customers. Moreo!er, The Body 'hop cont"nues to protect the en!"ronment to ensure that the needs of the current soc"ety are met 8"thout comprom"s"ng on the needs of the future generat"ons. ther strateg"es that The Body 'hop uses to acu"re and reta"n customer "nclude tak"ng corporate soc"al respons"b"l"ty through "ts stand aga"nst an"mal test"ng, support"ng commun"ty trad"ng, defend"ng human r"ghts, and protect"ng the en!"ronment. The Body 'hop follo8s three phases "n "mplement"ng the C4M. The f"rst phase enta"ls acu"s"t"on of the customers. The Body 'hop acu"res ne8 customers through use of strateg"es such as contact management, 8eb based C4M, sell"ng of ual"ty products, and fulf"llment. The second phase enta"ls enhancement. The Body 'hop makes use of strateg"es such as 8ebenabled C4M and other customer ser!"ce tools to enhance the ual"ty of ser!"ces. The company has h"red sales representat"!e and spec"al"sts "n d"fferent spec"alt"es to enable them "dent"fy and meet the need of the current customers. Moreo!er, the company uses soc"al net8orks such as )acebook to offer consultant ser!"ces on the"r products =Berndt F Br"nk, 200+>. The th"rd phase enta"ls reta"n"ng the e3"st"ng customer. The Body 'hop has C4M soft8are and other databases that enable "t to recogn"Ae and re8ard those customers 8ho ha!e rema"ned loyal for a long per"od by g"!"ng those offers and d"scounts. The (o!e Eour Body 4e8ards "s one of the groups through 8h"ch The Body 'hop "dent"f"es and re8ards loyal customers. Moreo!er, thee databases enable The Body 'hop "mpro!e "ts target market as 8ell as de!elop appropr"ate market"ng "n"t"at"!es =Berndt, F Br"nk, 200+>.
5neffect"!eness of Current C4M The Body 'hop C4M "s not 8ork"ng appropr"ately. #lthough the 8ebs"tes attract se!eral users 8ho e!entually start buy"ng from The Body 'hop, The Company has not been mak"ng adeuate prof"ts espec"ally "n the recent past. Th"s "s due to e3cess"!e use of act"!"t"es meant to enhance corporate soc"al respons"b"l"ty and e3cess"!e use of offers and d"scounts. Moreo!er, the 8ebs"tes lack "mportant "nformat"on that cosmet"c customers seek for 8h"le dec"d"ng 8hether to buy a product.
7e8 C4M bect"!es The current C4M reu"res "mpro!ement and alterat"ons "n some areas. ne of the obect"!es should a"m at "mpro!"ng the re8ard"ng systems.
The t"me sens"t"!e offers by The Body 'hop creates a not"on that the company "s man"pulat"ng "ts customers. #nother obect"!e should be "mpro!"ng on the t"me scale for the offers s"nce the current per"od for the offers "s at t"mes too short. Moreo!er, the d"scounts are at t"mes too h"gh, and should be decreased to a!o"d the customers doubt the ual"ty of the products. #nother obect"!e should focus on chang"ng the commun"cat"on strateg"es to "ncrease the sales. #lthough The Body 'hop has been us"ng ema"ls to "nform the"r customers of the"r e3"st"ng products, the descr"pt"ons g"!en are too shallo8. Moreo!er, the"r 8ebs"te lacks "ndepth descr"pt"ons of products. Most cosmet"c compan"es use the"r 8ebs"tes to teach d"fferent aspects on ho8 the body funct"ons, 8h"ch has attracted customers. The se!eral offer messages sent to the customers through the phones create a sense of desperat"on on the s"de of the company.
:o8 the obect"!es 8"ll be ach"e!ed The ne8 of the company should focus on creat"ng the "dea of the un"ue effect"!eness of the"r products. Moreo!er, the company should "ncrease the use of med"a through ad!ert"sements. By enhanced use of ema"ls, the company 8"ll be able to connect appropr"ately 8"th the customers, "dent"fy the"r needs, and manufacture products that meet the"r needs. ;s"ng ema"ls and 8ebs"tes to educate the customers 8"ll make them "nformed of the d"fferent products and "ncrease the"r 8"ll"ngness to buy. The company can reorgan"Ae the"r offer schedules and make offers dur"ng certa"n per"ods such as fest"!e seasons. =("ndgreen, 200+ 'um"t F Chaudhur", 200/>.
'upport"ng the 7e8 C4M 'trategy ;s"ng the +%s of Market"ng M"3 The ne8 C4M can be supported by the four %s, 8h"ch "nclude %roduct, %romot"on, %lace, and %r"ce. By us"ng 8ebs"tes to demonstrate the effect"!eness of the"r products, the Body 'hop 8"ll be able to con!"nce customers that the pr"ce of the products "s 8orth. Th"s "s more so "n 5nd"a 8here people !"e8 the products as too e3pens"!e =Berndt F Br"nk, 220+>. Product: The Body 'hop should ensure that the ual"ty of the"r product "s reta"ned. Moreo!er, the company should a!o"d o!erus"ng offers and d"scounts to market "ts products. Th"s "s because th"s strategy "s creat"ng a bad "mage of the company. PeopleG The Company should thus focus on educat"ng the customers about the products. Th"s could be through use of the"r onl"ne consultants 8ho can post mater"als related to the companys products us"ng s"mpler language =(au F 'eetner, 2011 ("ndgreen, 200+>. PlaceG The company can use google map to enable customers locate
places 8here the"r shops are located. Promotio!: Moreo!er, promot"ons should be used moderately espec"ally "n areas 8"th much compet"t"on. The promot"ons should be strateg"c and a"m at demonstrat"ng the un"ueness of The Body 'hops products as compared to those from compet"tors =Mennen, 2011>.
The Body 'hop Market"ng %lan Bus"ness obect"!es can be def"ned as the stated and measurable goals that a company comes up to enable "t ach"e!e "ts a"ms. The bus"ness obect"!es dep"ct the future of any company. Moreo!er, the obect"!e should be measurable, spec"f"c, t"me spec"f"c, real"st"c and agreed upon by the maor stakeholders "n a company. The bus"ness obect"!e of any company can be cons"dered as "ts statement of purpose =&pste"n F Euthas, 2009>.
Current Market, Customer, and 5ndustry Trend The obect"!es of The Body 'hop are ma"nly asked on the con!"ct"on that the success of a bus"ness "s determ"ned by ho8 a company treats the en!"ronment and people, espec"ally the less fortunate ='um"t F Chaudhur", 200/ Marsh, 2001>. Currently, the market"ng strategy focuses on the products as be"ng natural and earthly. The maor customers are 8omen s"nce most of the products ser!e the needs of 8omen. :o8e!er, there are some products meant for men. The cosmet"c "ndustry "s becom"ng more d"!erse and compet"t"!e due to the "ncreas"ng number of cosmet"c shops "n the market. Moreo!er, the number of men us"ng cosmet"cs has "ncreased. Most cosmet"c compan"es are focus"ng more on reta"n"ng the"r customers as opposed to creat"ng ne8 ones =Marsh, 2001>. ne of the maor obect"!es of The Body 'hop "s to "n!ol!e "tself "n act"!"t"es a"med at br"ng"ng change to the en!"ronment and the soc"al l"!es of the soc"ety. Th"s obect"!e targets the soc"ety. Moreo!er, "t 8"ll enable The Body 'hop ga"n an "mage of a car"ng company. Current market"ng obect"!es ha!e not been !ery successful.
7e8 Market bect"!es The ne8 bect"!es should focus on the +%s of the market"ng m"3. The companys obect"!e should be to meet the +%s "n a 8ay that attracts the groups targeted by "ts products. The company should cons"der "f the"r products meets the needs of the target group. The company should focus on attract"ng young customers and reta"n"ng them. Therefore, the market"ng strateg"es should be more youthor"ented. Th"s "s because the company "s mak"ng plans to e3pand "ts market "n add"t"on to "ncreas"ng the prof"tab"l"ty of "ts bus"ness operat"ons. The ma"n obect"!e here
should be ensur"ng that the products manufacture reflect the needs of the consumers. The other obect"!e should focus on the pr"ce. 5f product manufactured "s of good ual"ty, "t 8"ll be easy for the company to f"3 compet"t"!e pr"ces. The company should cons"der f"3"ng the pr"ce depend"ng on locat"on of the store. Moreo!er, the company should "dent"fy the amount of money the target group "s 8"ll"ng to pay and be8are of the compet"tors pr"ce =("ndgreen, 200+ Berndt F Br"nk, 220+>. The o!eruse of promot"ons has created a negat"!e not"on about the ual"ty of The Body 'hops product. Therefore, the company should cons"der market"ng strateg"es that attract the target group, 8h"ch are the Eouths. The promot"on should thus "nclude act"!"t"es such as sponsor"ng beauty sho8s and sport"ng act"!"t"es. 'oc"al 7et8ork "s another market"ng strategy that should be used to attract young people. Moreo!er, the"r 8ebs"tes should be more deta"led to or"ent the customers to d"fferent products. #dd"t"onally, ad!ert"sements us"ng b"ll boards tele!"s"on and magaA"nes should be enhances =(au F 'eetner, 2011>. 5n the franch"sed shops, the company should enhance select"!e d"str"but"on. D"fferent people from d"fferent reg"ons prefer !ary"ng products. Therefore, the company should "dent"fy the !ary"ng needs of the customers "n d"fferent local"t"es. Moreo!er, the company should carry out a study to f"nd out the d"str"but"on of the"r customers and locate the"r d"str"butors appropr"ately =Berndt F Br"nk, 220+>. :ence, the company reu"res "mpro!"ng on the strateg"es of mak"ng offers to a!o"d "t appear"ng too desperate. The offers should be reasonable and should last for longer per"ods to ensure the customers enoy them. Currently, the offers are short l"!ed and most customers compla"n that such offers are unreasonable =(au F 'eetner, 2011>.
# Market"ng Budget to #ch"e!e the 7e8 bect"!es To ach"e!e the ne8 obect"!es, The Body 'hop should cons"der alter"ng "ts budget. The company should spend about +H of "ts gross "ncome on the de!elopment and ma"ntenance of the 5T "nclud"ng the 8ebs"tes, telecommun"cat"on, and databases. The databases should be used to collect customers feedback. The company should cons"der reduc"ng "ts spend"ng on offers and en!"ronment reno!at"on programs. Though corporate soc"al respons"b"l"ty "s an appropr"ate tool for Market"ng, The Body 'hop has been o!erspend"ng on "ts proects a"med at "mpro!"ng the en!"ronment. The company should thus spend about *H of the gross re!enue. Moreo!er, some of the proects that are "neffect"!e should be d"sregarded. The promot"ons should be more log"cal. )or e3ample, the company can use a strategy such donat"ng about 1H, for e!ery purchase
made at a certa"n pr"ce to the char"ty and en!"ronmental organ"Aat"ons. Th"s 8"ll enable the company make prof"ts and conduct commun"ty proects =Cathy F Caryn, 1999>. Th"s "s because customers 8"ll be 8"ll"ng to buy 8hen they real"Ae that the"r purchase contr"butes to donat"ons. Th"s campa"gn should cost the company about 2H of the gross re!enue. ther forms of market"ng should "nclude b"llboard ad!ert"sements, ad!ert"sements through the magaA"nes, soc"al net8orks, tele!"s"on and sponsor"ng of act"!"t"es should take about *H of gross re!enue. Therefore, the company should focus on market"ng strateg"es that benef"t both the company and the stakeholders =%ahla!anAadeh, 2011>. Dur"ng the sponsorsh"p act"!"t"es such as sports, the company should use banners. The company should also cons"der organ"A"ng conferences to create a8areness on the en!"ronment, a method that should not take more than 1H off gross "ncome. Moreo!er, the"r 8ebs"te should "nclude educat"!e art"cles on the en!"ronment. Th"s 8"ll reduce the cost use "n en!"ronmental "ssues. The total re!enue use "n market"ng should not e3ceed 10H of the gross re!enue =Berndt F Br"nk, 200+ &pste"n F Euthas, 2009>.
&!aluat"ng the %erfomance of 7e8 Market"ng bect"!es #fter "mplement"ng a market"ng strategy, "t "s "mportant to measure "ts effect"!eness and make changes 8here necessary. The mon"tor"ng and e!aluat"on should enta"l analyA"ng the sales and compar"ng the changes "n sales 8"th the market"ng cost. The effect"!eness of the ne8 market"ng strategy can be assessed us"ng !ar"ous strateg"es. ne strategy should be through measur"ng determ"nat"on of change "n sales follo8"ng "mplementat"on of the d"fferent market"ng strateg"es. Measurement should enta"l compar"son of the performance 8"th the d"fferent market"ng strateg"es. Moreo!er, the management should collect data and analyA"ng "t. #nalys"s of the performance can also be done through numer"cal count"ng and report"ng. Th"s can be through determ"n"ng the number of people !"s"t"ng the company 8ebs"tes and the d"fferent stores. Moreo!er, the performance can be measured through compar"ng data on the number of people !"s"t"ng the store and the sales made on da"ly bas"s. To assess the onl"ne sales, the company can "nstall soft8are to analyAe data through compar"son of the number of !"s"t and the number of onl"ne purchases. Moreo!er, the company can carry out onl"ne sur!eys to f"nd out the number of customers 8ho are tr"ggered to make purchases by the d"fferent companys market"ng strateg"es =&pste"n F Euthas, 2009>.
Conclus"on
Customer 4elat"ons Management enta"ls the strateg"es used by a company to obta"n customers and de!elop longterm relat"onsh"ps 8"th them. Currently, The Body 'hop Ma"nly depends on offers to attract and reta"n customers. :o8e!er, o!eruse of offers has created a negat"!e att"tude about th"s company. The ne8 market"ng obect"!es should focus on other strateg"es of attract"ng customers 8"thout appear"ng desperate. 'uch strateg"es "nclude pos"t"on"ng of the"r franch"ses, ad!ert"sements, and customer educat"on. The company can cont"nue g"!"ng offers but they should be log"cal and reasonable. Th"s 8"ll make the customer real"Ae that the products are of ual"ty and 8orth the pr"ce. The Body 'hop market"ng budget should be cons"derate to ensure the company does not cont"nue reduc"ng "ts prof"ts. Moreo!er, focus"ng on creat"ng en!"ronmental a8areness us"ng onl"ne techn"ues such as 8ebs"tes 8"ll enable The Body 'hop spend fe8er funds "n conduct"ng corporate soc"al respons"b"l"ty and "ncrease prof"ts.
-orks C"ted #ssenmacher, < 2012, The Body shop – An Analysis of the Company s Actions towards Sustainability, ?457 @erlag, (ondon. Bernd"t, # F Br"nk, # 200+, Customer Relationship Management and Customer Serice, uta and Company (td, 7e8 ersey. Berndt, #. F Br"nk, # 200+, Customer Relationship Management and Customer Serice, uta and Company, (ondon. Cathy, (. :. F Caryn, (. B. 1999, Market"ng strateg"es and the search for !"rtueG # case analys"s of the body shop, "nternat"onal, !ournal of Business "thics, #$=*>, 2+92*. 4etr"e!ed from httpGIIsearch.prouest.comIdoc!"e8I19112Jaccount"dK+/0+9 &pste"n, M. F Euthas, < 2009, &!aluat"ng the &ffect"!eness of 5nternet Market"ng 5n"t"at"!es, Management Accounting %uideline, pp. 1+0. , 101. #!a"lable at httpGIIsearch.prouest.comIdoc!"e8I21*1*0+*1Jaccount"dK+/0+9 Marsh, :. 2001, as the Body Shop lost its direction for good:aymarket Bus"ness %ubl"cat"ons (td, (ondon, ;n"ted <"ngdom, (ondon.
Mennen, M 2011, The Body Shop& Strategic Business Management , ?457 @erlag %ahla!anAadeh, ' 2011, N# Cr"t"cal #nalys"s of Customer 4elat"onsh"p Management from 'trateg"c %erspect"!e, *'".R !ol.*, no. 1, retr"e!ed 19 December 2012 OhttpGII888."pedr.comI!ol*I9M1002.pdfP 'um"t, '. F Chaudhur", < 200/, The Body 'hopG The &th"cal Beauty 4eta"lers ?ro8th 'trateg"es, Case .eelopment Centre, #!a"lable at, nl"neG #!a"lable at httpGII888."bscdc.orgICaseQ'tud"esICorporate H20'oc"alH204espons"b"l"tyIC'4001/.htm.
