Essay on Marketing Analysis on Body Shop

4410 Words Dec 27th, 2010 18 Pages
INTRODUCTION

The Body Shop International plc is a global manufacturer and retailer of naturally inspired, ethically produced cosmetics products. Founded in the UK in 1976 by Dame Anita Roddick, The Body Shop now has over 2,400 stores in 61 countries, with a range of over 1,200 products.

Body Shop has a strict no animal testing policy. In fact The Body Shop is the first international cosmetics brand to be recognized under the Humane Cosmetics Standard for our Against Animal Testing policy.

The Body Shop is a leader in promoting greater corporate transparency, and it has been a force for positive social and environmental change through our campaigns around our five core Values: Support Community Trade, Defend Human Rights, Against
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The franchise tends to experience boom in sales during festive periods, as people tend to purchase more of the products as gift items. Reasons for the demand of Body Shop products include; the ethical codes in which the products are made, the natural materials used to make the products, and the price of the products. It has been observed that Body Shop products tend to have lower prices than other brands in shops.

Environmental analysis (Political Factors)

Political unrest, and instability in different areas where some of the ingredients that are used to make the products of The Body Shop is a major factor affecting the operations of the organisation. For example, the political unrest that in Guatemala, from where The Body Shop sources its aloe vera ingredient used in production, or the political situation in Peru, where the Brazil Nut Oil is sourced from in the Amazon forest.

MARKET ANALYSIS

Market size

The cosmetics industry is a very large industry housing more than 40 established brands, and over 70 smaller brands. The market leader in the industry is L ‘Oreal, followed by the likes of Estee Lauder, Proctor and Gamble, Revlon, and Avon to mention a few. The Body Shop as a sole entity is amongst the top 15 brands in the industry. The acquisition of Body Shop by L ‘Oreal, has brought about an increase in the brand presence in the market, and in its total market size in the industry.

Market share

Coming off a

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