The body shop report: entering new markets

Résumé du document

The Body Shop was established in 1976 by Anita Roddick in West Sussex, England. It competes primarily in the cosmetics and toiletries industry and its major competitors are Boots Plc, Bath & Body Works, and L'Oreal. The company's niche market is based on the production of naturally inspired, ethically produced beauty and cosmetic products. Accordingly, it has been performing successfully by generating high revenues in many markets around the world. Through periods of strategic rejuvenation to adapt to market changes and competitive forces, in 2000, the company redefined its position and target market specifically towards the masstige, mass and premium market customers. And this led to the introduction of the brand extension products in 2005 (Euromonitor International, 2007). The company is a global manufacturer and retailer of naturally inspired, ethically produced beauty and cosmetic products. The Body Shop currently is operating in 55 countries with over 2100 stores worldwide and with a range of over 1200 products. The Body Shop has the unique identity for its naturally inspired products which are not tested on animals. Based on its commitment to ethical and socially responsible business, the company has been very active in supporting the developing world, particularly in Africa and Latin America, where most of its natural ingredients and cosmetic accessories are sourced from.

Extraits

[...] We recommend that the Body shop set up Flag Ship stores in Brazil; also, all identified penetration strategies for pricing, promotion and distribution should be considered. With over 30years of experience in the Industry, The Body Shop has been able to effectively keep its values and ethics at the core of its business operations. Expanding into markets outside of the UK have been successful, and even when challenges occurred, like in the US market, in the 90s, the company was able to reinvent itself to stay competitive in the market. [...]

[...] This might not be an issue for Body Shop, which still operates independently as a subsidiary; it also stands to benefit from L'Oreal's global experience and its vast resources. REFERENCES Body Shop (2008) The Body Shop [online] available from [4-04-2008 Doing Business (2008) The Doing Busin Ess [online] available from [3-03-2008 Euromonitor (2008) the Body Shop Corporate Profile, Cosmetics and Toiletries Industry ' [online]. [...]

[...] Thus, we strongly advice, the expansion to take place in promising markets based on consumer population and purchasing capabilities, while also taking into consideration, regulatory conditions that can positively influence The Body Shop's expansion into a new market. Phase III Report The objective of Phase 3 was to identify the best target market country for The Body Shop and its products. The following presents this analysis of our findings: Contacts and Competitive Analysis BRAZIL We identified three contacts within Brazil. Two of our contacts are officials at the British Chamber of Commerce in Brazil. [...]

[...] The variables are: The Imports of your product variable is useful in evaluating the estimated amount of products to be imported and introduced into the new market. Local product/service consumption variable is also useful in evaluating the projected usage of the products in the new market. Local competitor(s) variable is useful in determining a competitive and suitable strategy against locally produced goods in the same product category as our products in the new market. The International competitor(s) variable is helpful in determining a competitive and suitable strategy against similar products in the same product category as our products. in the international market. [...]

[...] CROATIA We identified two contacts within Croatia. They are both officials at the Croatian Chamber of Economy. They can help in reaching other contacts that can help in establishing The Body Shop in Croatia. Total Market Potential The total sales market potential for Cosmetics and Toiletries products in Croatia is estimated at $540 million (Euromonitor International 2007). This estimate is based on a prediction that 67% of the population which is in the age range of 15-64 years in Croatia consumes the products at least once a month with the average spending of $18 per month. [...]