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STRATEGIC MARKETING MANAGEMENT

Assignment: Marketing Plan - The Body Shop, UK.

Course: DMS/GROUP A

Date: 30/05/2010

Lecturer: Mr. John Heather

By: Ashley Pereira

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Contents:-

1. Company Background.................................................................................................5
2. Situation analysis..........................................................................................................5
3. External analysis...........................................................................................................6

a) Political factors
b) Economical factors
c) Social factors
d) Technological factors
e) Environmental factors
f) Legal factors

4. External Analysis- Micro Environment.......................................................................12

4.1) Industrial Analysis

a) Threats of new entrance


b) Threats of substitute products
c) Bargaining power of customer
d) Bargaining power of supplier
e) Competitors

5. Market Segmentation...................................................................................................19

a) Consumer market
b) Products
c) Competitors
d) Brands

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6. Internal Analysis........................................................................................................21

6.1) Resources analysis..............................................................................................21

a) Physical Resources
b) Financial Resources
c) Human Resources
d) Intangibles

6.2) Competences and capabilities

a) Market
b) Materials
c) Men
d) Money
e) Machines

7. S.W.O.T Analysis.......................................................................................................24
8. Marketing Plan............................................................................................................26

8.1) Objectives

8.2) Strategies

8.3) Gap Analysis

8.4) Generic Strategy

8.5) Ansoff’s Matrix

8.6) Competitor Marketing Strategy

8.7) Market Positioning Strategy

8.8) Institutional Strategy

8.9) Implementation Plans........................................................................................29

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a) Product
b) Price
c) Place
d) Promotion
e) People
f) Process
g) Physical Evidence

9. Budget Breakdown...............................................................................................30

10. Monitoring and Control.........................................................................................31

10. Appendix...............................................................................................................32
11. References.............................................................................................................43

1. Company Background

1.1 Mission Statement

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• 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. (Value Report, 2009
-2010)

Organizational Structure

The Body Shop has a hierarchical structure. They have departmental heads spread all
over the world. The Body Shop encourages open-door policy and two-way
communication within the company. They have a strong belief in the company values
which creates a bound between the employees. (Our People, 2009-2010)

1.2 Product/Market Range

Products: Facial skin care products, make-ups, bath & body products, hair products
and fragrance products.

Market: Western Europe, North America, Asia, Eastern Europe, Latin America,
Africa, Orient and Pacific.

1.3 Customer Target

Professional stylists, non-professional stylists, these mainly include females clients.


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1.6 Financial Profile

Since June 2006, The Body Shop is wholly owned by L’Oreal therefore it is no longer
a listed company. (About Us, 2009-2010)

• Volume sales of The Body Shop in 2009: 726 million units.

• Total sales L’Oreal by division in 2009: 16,257 million units.

• Net Profit of The Body Shop in 2009: €54 million, weight 2.1%, growth based
on published sales +48.4%, percentage of sales 7.4%. (Annual Report, 2009-
2010)

2. Situation Analysis

According to Blythe (2005) Marketing Audit is a reassessment of the firm’s current


objectives, strategies, organization, company performance and activities. The main
objective of this analysis is to highlight the strengths and weaknesses of the company,
so that they can be improved for the future.

The marketing audit is a summary of what is happening in the company at present,


hence this type of analysis have to be carried out on a regular basis, taking into
consideration about the time and money that can be invested by the company.

3. External Analysis/Marco Environment

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The macro environment includes major forces, the environmental factors that have
an impact on the organisation on a varying scale (Jonhson, Scholes, & Whittington,
2008). The main element of macro environmental is the PESTEL framework which
identifies the major drivers of change. The macro environments affecting the core
business of the organization are identified below:

a) Political Factors

FACTORS IMPACT ON COSMETIC IMPLICATIONS


INDUSTRY

Terrorism Restriction to carry personal Significant impact on


care and fragrance products in the sales of the
handbags when travelling cosmetic retail stores at
abroad. (Decision News the airport and the high
Media SAS, 2000-2010) streets.

E-commerce UK industry and government Growing number of


backed trust mark schemes. demand for online
(Cosmetic announces, 2009) products and lose of
loyal customers.

Employment Due to the recession Jobless number


businesses find in difficult to outgrows positions
survive in the market. available.

Conclusion: An opportunity arises on expanding an online purchase service for


customers. Threats to the industry arise from the unstable economic and security
environment where a contraction in demand is visible.

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b) Economical Factors

FACTORS EFFECT ON COSMETIC IMPLICATION


INDUSTRY

Exchange rates Fluctuation in the exchange Raise the cost of


rate against the pound and in import of raw materials
countries that supply the or finish products from
companies with raw the rest of the world.
materials. (Wearden, 2009)

Increase in VAT UK’s new chancellor George This will increase the
Osborne announced on 21st price of daily
May 2010, the hike on tax to commodities which
20% by next April. (Clark, would lead to restrict
2010) customers to buy
cosmetics.

Direct selling Allows customers to buy Better customer


products outside the relationship, firms can
traditional retail enterprise. keep the cost low and
(Dsa, 2009-2010) avoids expenditures on
product promotion.

High unit labour cost High labour cost in UK has Company strategies
left a gap in productivity as cannot be pursued to
compared to the counter parts the fullest extent.
like America and Japan.
(Mail Online, 2010)

Oil Prices Increase in oil prices. (Mail Can affect promotion,


Online, 2009) sale and distribution as
well as demand and
purchasing power.

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Conclusion: Due to the recession profits of the company can be affected, as the
demand for the product will reduce and due to changes in the exchange rates which
could affect product manufacturing.

c) Social Factors

FACTOR EFFECT ON THE IMPLICATION


COSMETIC INDUSTRY

Demographics According to the Office for Increase in the sales of


National Statistic in April the anti-aging
2010, the percentage of British products.
public aged from 65-85 is
growing and as of now the
figure shows a growth of 1.5
million. (McCraddie, 2010)

Cultural Changes Use of natural ingredients in Changing behaviour of


the manufacturing of the customer towards
cosmetics by some firms. the natural product.

Cosmetic Testing Companies using animals for Affects brand image.


their product testing. (Silva,
2002)

UK cosmetic industry UK’s cosmetic industries are Affect brand image.


risk to tiger forests. buying product made out of
talc from illegal and
destructive mines from

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wildlife in India.
(Environmental Investigation
Industry, 2003)

London Olympics 2012. Increased number of tourists Opportunity for


in the country. promotion and increase
awareness.

Conclusion: Diversification of culture that changes the buying power of the


customer will affect greatly the company, which will depend on factors like
promotion, value and ethics.

d) Technological Factors

FACTORS EFFECT ON COSMETIC IMPLICATION


INDUSTRY

Research & Development Cosmetic companies invest a Brand recognition.


lot on R&D so that they can
develop new products to suite
the changing trends of the
customer. (Global Insight,
2007)

Pulse perfection US based companies have Competitive


developed automated mascara advantage.
that coats lashes evenly.
(L'Oreal, 2010)

Roll on true match Cosmetic company has More options for the
developed a roll on technique customers.
to spread the foundation
evenly on the face. (L'Oreal,
2010)

Multi- purpose products Development of products such Customers looking for


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as two-in-one face wash, consolidating the


shampoo with conditioner. beauty budget.
(L'Oreal, 2010)

E-commerce Secure methods of payment Working clients


with security code or buying more and more
password. (London Borough products online.
Of Richmond Upon Thames,
2009-2010)

Conclusion: Competitive advantage may be achieved and growth in the market.

e) Environmental Factors

FACTORS EFFECT ON IMPLICATION


COSMETIC INDUSTRY

Natural Products Growing trends of Benefits the companies that


environmentally friendly offer such products.
products.

Environmental Government to cut carbon It will be a necessity for


Pollution. emissions. (Harvey, 2010) companies to follow
regulations.

Conclusion: Companies that are not socially and environmentally conscious will be
affected in its performance and reputation.

f) Legal Factors

FACTORS EFFECT ON COSMETIC IMPLICATION


INDUSTRY

Certificate standards for ISO 22716 safety standard Builds confidence in


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cosmetic products. certificates published on 15th customers and makes the


February 2010 provides organization keen on
resources to organisations to supporting their business at
select their specifications. domestic and international
(Cosmetic Design, 2010) level.

International Trade Companies import all its The company has made
Policy. products from overseas any strategic plans to look for
changes will have an effect alternative sources of supply.
on cost.

Conclusion: Companies has to abide by the rules and regulations set by government.

4. External Analysis/Micro Environment

These are the internal factors of the company that has direct impact on the
organisations strategy. They include customers, employees, suppliers, shareholders,
media and competitors.

There are three factors to be looked upon while carrying out the analysis, credible
alternative future, improving the organisational learning and evaluating and
developing strategies for each situation. (Jonhson, Scholes, & Whittington, 2008)

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To analyse the company, it should be considered Porter’s five forces.

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Source: (Jonhson, Scholes, & Whittington, 2008)

a) Threats of New Entrants

FACTORS LEVEL OF THREAT IMPLICATION

Scale and experience Low Products of The Body


Shop are natural unlike
other cosmetics. They are
aware of the resources
available for their
products. New companies
try to copy but will take
them a considerable
amount of time and money.

Capital Required Low The capital required to set


up a business like Body
Shop is of great scale.

Access to supply or Medium Each of the cosmetic


distribution channel. products is different
depending on the brands in
store. But for companies
like The Body shop there is
less possibility to mix them
with other brands.

Product Differentiation High Cosmetic products are


unique in their brand name
but, they can be more

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appealing by promotion.

Switching Cost Low Cost will differ according


to the brand name, if there
is a niche market than there
won’t be any new entrant
in the market.

Brand Identity Low The Body Shop has been


established since 1976 in
UK and since then has
expanded with strong core
values of natural products.

Cost Advantage Low Different skills and


methods of production
have given The Body Shop
an edge over the other
competitors. Hence can set
its price.

Conclusion: Looking at the factors above the possibility of a new entrant entering in
this industry is fairing weak.

b) Threats of Substitute Products

FACTORS LEVEL OF THREAT IMPLICATION

Price and performance Medium Substitutes can offer the


ratio similar product for the
same or higher price. The
difference depends upon
the performance advantage
the customer’s value.

Extra industry effect Low Managers of the company


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should look outside their


own industry to look for
threats, but in case of The
Body Shop its less.

Substitute products Medium Inexistence of substitutes.

Conclusion: As there are no substitute for each brand of cosmetic product the threat
of substitutes is weak.

c) The Power of Buyer

FACTORS LEVEL OF THREAT IMPLICATION

Concentrated Buyer Medium Buyer power increases if


there are large retailers
having different brands
under one roof. Different to
The Body Shop as they
have their own stores.

Low Switching Cost High As buyers can easily switch


between suppliers for a
competitive price.

Buyer Competition Threat Medium Cosmetic companies


supply to their large retail

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buyers like Boots so the


possibility of setting up
their own supply chain
direct to the customers is
low, with certain
exceptions.

Conclusion: Looking at the above analysis buyer power is considerably at an


average.

d) The Power of Supplier

FACTORS LEVEL OF THREAT IMPLICATION

Concentrated Supplier High Suppliers have to face the


competitors in the market
where all the brands are
sold by one large retailer.

High Switching Cost Medium Buyers have the power to


negotiate the deals with the
supplier as there are a lot
of brands in the cosmetic
industry.

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Supplier Competition Low Due to e-commerce the


Threat customers can directly buy
the products from the main
supply of the company.

Conclusion: Supplier power is relatively low in this case as buyers have a wider
range of options.

e) Competitive Rivalry

FACTORS LEVEL OF THREAT IMPLICATION

Competitive Balance High There is average growth in


the cosmetic market and
there is a lot of competition
among the big players.

Industry Growth Rate High Due to stiff competition


among cosmetic brands
there is a risk of altering
the price of the products.

Exit Barrier High Exit barrier for big players


in the cosmetic industry is
high, as they are lack of
alternative. More use of the
assets.

High Fixed Cost Medium High cost in importing raw


materials from other
countries with the import
duties. Have to keep the
cost high to cover up the
expenditure.

Low Differentiation High Similar products available


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in the market influence the


customer not to be loyal to
one particular brand.

Conclusion: The competitive rivalry within the cosmetic industry is strong as there is
no great product differentiation in terms of cost, quality, performance and variety.
Thus the exit barrier is very high.

Taking into consideration the above analysis the cosmetic industry can be rated at ** out
of five industry. It is a great market for The Body Shop to operate in as the changing
trends and shifting attitude of the customer to move on to natural and environmental
friendly products is growing in the industry.

5) Market Segmentation

A market segmentation table of the company can be found on Appendix 4

a) Customer Market

• The Body Shop creates a product differentiation market, its customer’s are
usually single females from the age group of mid twenty’s or early forties
professionals with good qualification and a focus on environmental issues. It
also targets men but is not as expanded.

• So they have to increase the promotion of male products.


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b) Products

The Body Shop has environmentally friendly products that are made up natural
ingredients. The Body Shop deals with the following products:

 Facial skin care products.

 Make-up.

 Bath & Body products.

 Hair Products.

 Fragrances.

 Accessories.

c) Competitor Analysis

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Being a cosmetic company The Body Shop has a range of competitors, but by
analysing the Perceptual Map the competition between product with high quality and
low price is relatively high. In this case companies reinforce in their customers with
brand ethics and values.

The Perceptual Map.

High Quality

High Price Low Price

Low Quality

Source: (Lamb, Hair, & C, 2008)

d) Brand

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The Body Shop from the beginning focused on environmentally friendly products,
which created a brand image about the product among the customer who really care
about the environment. The Body Shop also gives the customers an exceptional
experience in store with their personal care products. (The Body Shop, 2009 - 2010)

The Body Shop did not use animals for testing their products and they believed in
fair trading which helps the people to earn their daily income which will enable them
to create a better future.

6) Internal Analysis

6.1 Resource Audit

a) Physical Resources

• Resources are sourced from the Body Shop community trade programme
which includes olive, soya, cocoa, sugar and sesame from parts of Brazil to
Samoa, Daabon in Colombia.

• Community Trade now works with over 30 suppliers in more than 20


countries.

• 2500 stores in 60 countries around the world.

b) Financial Resources

Since June 2006, The Body Shop is wholly owned by L’Oreal therefore it is no
longer a listed company. (The Body Shop (2009 – 2010)

• Volume sales of The Body Shop in 2009: 726 million units.

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• Total sales L’Oreal by division in 2009: 16,257 million units.

• Net Profit of The Body Shop in 2009: €54 million, weight 2.1%, growth based
on published sales +48.4%, percentage of sales 7.4%. (Annual Report, 2009-
2010)

c) Human Resources

The Body Shop employs over 10,000 people across the world.

d) Intangibles

The Body Shop is an original, natural and ethical beauty brand.

6.2 Competencies and Capabilities

See Appendix 5.

Competencies:

Threshold capabilities

These are needed by an organisation to meet the necessary requirement to compete in


the given market (Johnson, Scholes, & Whittington, 2008). 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.

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Unique resources and 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.

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.

The Body Shop differentiate their competitors by their method of sales and promotion,5
M’s can be used to analyse 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

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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

Please refer to Human Resources 6.1 – c

d) Money

Please refer to Financial Resources 6.1 – b

e) Machines

Please refer to Physical Resources 6.1 – a

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7) SWOT Analysis (see Appendix 6)

Strengths Level of Implication

Investment in R&D High

Financial Resources Medium

Developing Niche market High

Brand Loyalty High

Natural Products High

Acquisition by L’Oreal, entry in the global Medium


market.

Weaknesses Level of Implication

Acquisition by L’Oreal damaged the brand Medium


image.

High cost of operation High

Franchisee issues Medium

Market Competition High

Opportunities Level of Implication

Developing Anti-ageing products High

Baby Products Medium

Publicity of the company at London High


Olympics 2012

Recognition of e-commerce to developing High


countries will boost sales.

Male cosmetic market Medium

Eco-friendly fashion jewellery & Medium

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accessories.

Threats Implication

Other Cosmetic companies High

Increased sales by competitors High

Expensive resources High

Similar natural cosmetics Low

Although The Body Shop was acquired by the cosmetic giant L’Oreal in 2006, their ethics
remain the same and they operate separately as a separate unit within the L’Oreal group.
This will not have an impact on The Body Shop’s brand image. (Russel, 2007)

They can further develop some product for people from the age group of 50-65, as there is
a demand anti-ageing product in the market. Introduction of cosmetic product for men also
has to be introduced in a wide range.

8. Marketing Plan:
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See Appendix 3

8.1 Company’s Objectives

1. To launch a new a new range of baby products by August 2012 in UK.

2. To expand the male cosmetic market by 2% by July 2011.

3. Awareness of natural cosmetics for males in The Body Shop stores, London
underground, promotions on the website.

8.3 Gap (f) Analysis

Market Share

Target sales – 5.5%

Current Sales- 3.5% Sales gap - 2%

Forecast – 1.5%

1yr Time

• According to analysis The Body Shop had 3.5% market share in 2009 (The Star
Online, 2009).

• Increase in the market share by 2% by expanding the male cosmetic market by


2011 will be 5.5%.

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• If nothing is done to increase the market share it will go down to 1.5% i.e. there
will be a gap of 2% in the sales.

8.4 Porter’s Generic Strategy

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Porter’s three Generic Strategies (McNair, 2008):

1. Differentiation – This strategy is followed by the Body Shop as they deal with
natural cosmetic products which separate them from the competitors and the
products are sold at a premium price.

8.5 Ansoff’s Matrix (See Appendix 7)

Source: Ansoff

1. Existing products in the existing market- The Body Shop use of different
promotion techniques (selling different types of products as a package)

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2. New product in the existing market- Introducing a new range of cosmetics for
babies by August 2012.

3. Existing product in the new market- Increasing sales of cosmetics for men by
promoting the product.

4. New product in a new market- The Body Shop does not have any interest in
developing such a strategy due to the objectives set.

8.6 Competitive Marketing Strategy

Offensive Strategies:

Bypass attack- If the competitors attack The Body Shop by imitating similar type of
products than the company’s positioning should focus on the natural products
developed by The Body Shop.

Strategy Development of new products and promotions of existing products at


inferior price than competitors.

8.7. Market Positioning Strategy

The Body Shop used to be the market leader with expanding markets and demand
for the products and a strong offensive and defensive strategies. Now it has moved
to become a market challenger where it does selective targeting to an appropriate
age group and attacks the rival competitors with their natural cosmetic range of
products.

8.8 Institutional Strategy

 The Body Shop has maintained its ethical beliefs and corporate culture even
though they were taken over by L’Oreal.

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 It operates as a separate unit within L’Oreal but is owned by it. (The Body
Shop, 2009 - 2010)

9) Institutional Plans

(See Appendix 2)

Media Promotions

 Advertise in the fashion magazines.

 Local tabloid newspapers.

 Underground train stations, Buses, Ferry’s.

 In store promotion for both men and women cosmetics not just women.

 Advertising on the television.

a) People

 I.T – To enhance the shopping experience online, and encourages new


user by online promotional offers.

 Sales Department – To increase sales and make the customers aware of


the different range of products to the customer.

 Operations Department – To monitor all the stock moving from each


store.

 R&D – To develop a new range of baby cosmetic products.

 Marketing Department – To set targets by implementing marketing


plan, to keep a track of promotions and monitor if the strategies are
followed correctly.
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b) Process

o Appropriate software for the billing process.

o Return policy – Exchange/return the product if not according to the


taste.

o To keep a track of time taken to deliver product purchased online.

c) Physical Evidence

 Monitor time taken to deliver an online product.

 Stock checks should tally with the inventory stock.

 Good ambience has to be developed in stores to attract potential


customers.

 Sample of each product should be available for the customer to try.

9) Budget Breakdown

£ Million

Overall cost is £3.78 Million

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Promotion – 60% estimated cost £ 17, 00,000

Product – 18% estimated cost, £936,000

People – 8% estimated cost, £416,000

Physical Evidence – 2% estimated cost, £104,000

Process – 5% estimated cost, £260,000

Place – 7% estimated cost £364,000

Total Cost £ 3780000

Promotion

Product

People

Physical
Evidence
Process

Place

10. Monitoring and Control

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 Quarterly meetings will be held with the head of marketing department regarding new
implementations of marketing plan to remain stable or gain profit.

 Gantt chart will be followed to draw conclusions about the cost involved in
implementation and how much time would it take to complete it.

 Reports of implementation plan will be given to all the board members to show the
status of each implementation.

 New trends and technology required for the new product development will be
discussed after every 3-6 months.

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Appendices

Appendix 1:

Internal Analysis/Value Chain Analysis (Porter, 1998)

Primary Activities

Inbound Logistics: this deal 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.

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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 categorised into different types.

Marketing & Sales: The Body Shop is a socially active organisation which supports
communities, different charities that support children and women. The brand image as
a supplier of environmental products makes people aware of the company.

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.

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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 2500 store over 60 market segments, as
they have been acquired by L’Oreal all the financials are done under them; quality
control is monitored closely for quality.

Appendix 2:

Implementation Plan

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Topics Strategy Tactics

People  To improve • Training &


customer service by development for the
08/10 in staff. staff has to be done
within 2 months
 To educate the staff
about sales’ • Motivate staff with
techniques different & regular
check has to be
undertaken.

Product  By 09/10 enhance • By 11/10 Introduce


the sales of male packages of
products different products
clubbed together
 By 11/10 improve
the appearance of • By 01/11 have to
the stores in UK change the whole
looks of the shores

Price  By 10/10 introduce • By keeping the


value for money product on
pack until they introductory
benefit. discounts.

 By 11/10 form a • Introduce


well planned cost differentiation
strategy. pricing after the
market demand
rises.

Place  By 06/11 open new • Start looking for


store in Scotland. entrepreneurs
interested in the
 By 07/10 develop
business in 3
schemes of free

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STRATEGIC MARKETING MANAGEMENT

delivery over the months.


sales of 20 pounds
• Start pricing the
products tactically.

Promotion  Enhance the sales • Start promotions on


of male cosmetics tabloid newspapers,
by 07/10 in UK. London
underground
 By 07/12 introduce
stations, buses,
a new range of baby
trains.
cosmetics.
• Promote on
magazines related to
child care, mothers.

Physical Evidence  By 09/10 develop • Let the IT


software for department develop
customer history for it by the next 2
members of the months.
loyalty group.
• From 06/10 check
 By 10/10 form a the progress of sales
promotional of each product till
strategy for new 10/10 and form a
product launch. competitive price
for those products.

Process  By 03/11 develop • By 09/10 organise


online learning the online web link
course for on the company
employees. website for
employees.
 By 02/12 develop
self service check • By 02/11 introduce
out tills in store. self service tills for
saving time &
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STRATEGIC MARKETING MANAGEMENT

money.

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STRATEGIC MARKETING MANAGEMENT

Appendix 3:

Segmentation, positioning and planning

Market Segmentation

1. Identify customer needs


and segment the
market.

2. Develop profiles of
resulting segment.

Target marketing

1. Evaluate attractiveness of
each segment.

2. Select target segment.

Marketing Positioning

1. Identify differential
advantage for each
segment.

2. Formulate marketing
mix.

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STRATEGIC MARKETING MANAGEMENT

Marketing Planning

1. Develop marketing plan


each segment.

2. Develop marketing
organisation.

Source: (Doyle & Stern, 2006)

Appendix 4

Benefit Segmentation of the Body Lotion Market

Segment Principle Demogr Special Brands Personality Lifestyle


name benefits aphic Behavioural disproportionat characteristi characteristi
sought Strength characteristi ely favoured cs cs
cs

Indepen Low cost Workin Heavy user Olive flavour Self – Value -
dent g men automony oriented
segment

Sociable Scent & Young Normal Satsuma Sociability Active


feel people, skin flavour – Citrus
teens scented

Worrier Skin care Mothers Soft skin Butiri Baby Highly Conservativ
and kids Sensitive es

Sensory Flavour Childre Use of fruit Japanese cherry Self- Hedonistic


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STRATEGIC MARKETING MANAGEMENT

segment of the n flavoured blossom involvemen


product lotions t

Appendix 5

Core Competency Model.

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STRATEGIC MARKETING MANAGEMENT

Source: (RIMS, 2010)

Appendix 7

Ansoff matrix

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STRATEGIC MARKETING MANAGEMENT

MARKET PENETRATION PRODUCT DEVELOPMENT

- TARGET NEW MARKET AND - DEVELOPMENT OF NEW RANGE


OF BABY PRODUCTS
- IMPROVE SERVICES

MARKET DEVELOPMENT DIVERSIFICATION

- SOCIAL SERVICES

- ENTER INTO THE UNTAPPED - INCREASE CORPORATE SOCIAL


MARKET FOR MALE RESPONSIBILITY
COSMETICS INDUSTRY
-

- According to Ansoff matrix analysis, The Body Shop has newly entered in different
sectors in market penetration,

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STRATEGIC MARKETING MANAGEMENT

- And as they are leader in the cosmetic industry and are looking forward to enhance the
male cosmetic market.

- They are also looking to get diversified in sectors like financial services, products, retail
business, social services, ethical welfare.

Product Life Cycle:-

Source: (Luck, 2008)

Product life cycle shows that growth of a company is staring from a fix position, In the
beginning company don’t make any profit when they launch their product in the market, there
are chances of loss or make profit, The Body Shop has already has a good reputation in the

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STRATEGIC MARKETING MANAGEMENT

market if they launch any new product they don’t need to do behave like new entrance
because people trust this brand and they will buy their product.

Appendix 8

Resource Plan:

Activities JAN FEB MAR APR MAY JUNE JULY AUG Resources

Enrolment Manager

Structure Executive

Approval Management

Product HR

Advertisement Marketing

Distribution HR

Sales Marketing

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