group 20 body shop
TRANSCRIPT
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Body shopBody shop
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Agenda
Body shop
External Analysis
Strategy ofBody shop
Corporate social responsibility
Success story
US Market and Body shop
Sustainability of competitive advantage
Post script
Q & A
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There is no scientific
answer for success. Youcan't define it. You've
simply got to live it and do
it
Anita Roddick
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Body shop
Started in 1976, Brighton, England
Today 2550 stores in 63 countries
Range of over 1200 cosmetics product
Commitment to society
Unique Management and operating policies
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Anita Roddick
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1985 UK company of the year
1985 Veuve cliquot Business woman of the year
1989 Queen Elizabeth Award
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External Analysis
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Before 1976
Products Synthetic preservatives, Artificial
colors
No much emphasis on naturals
Products are costlier
Traditional distribution
Heavy Investment on advertisements
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Cosmetics in 1970s
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Cosmetics in 1970s
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Body shop way
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Body shop way
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Strengths
Unconventional
Leadership Brand Name
CSR activities
Natural Products
Weakness
Combining
business strategywith personal
strategies
Less focus on
Investors
No Successor
Internal Factors
SWOT ANALYSIS
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Opportunities
Global Expansion
Product lines Increased
Awareness
Mens Products
Online distribution
Threat
Unstable supply
of raw materials Growing
Competition
Regulations
External Factors
SWOT ANALYSIS
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Initial Strategy
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Initial Strategy
Strategy of Survival
Body Shop its all just trading
Products offered in 5 different sizes
Refill done at 15% discount
Detailed label with ingredients information
Expansion through franchisee model
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Corporate socialresponsibility
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Success Story
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Whatever you do, be
differentif youredifferent you will stand
out
Anita Roddick
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Success Approach
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Pricing
Franchising (Choosingright people)
Productdevelopment (evolvedovertime)
Marketing
Organizationand Humanresources
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US Market
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US Cosmetics Market
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COMPETITIVERIVALRY
BARRIERS TOENTRY
POWER OF BUYERS
SUBSTITUTES
POWER OF SUPPLIERS
HIGH
LOW MEDIUM HIGH
HIGH
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US MarketChallenges
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Body shop & US Market
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Time ofEntry
very late into US Market in 1988
e t tion erio
Long period of 2 years
Franchising started as late as 1990
I eologie
followe
Stuck to the same as those followed in the UK
Followed a no marketing, advertising approach
ro uctr ngeoffere
Same as that in UK, no innovation
No branding or brand building activity done
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Sustainability
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Sustainability
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Keep business strategies and personal strategies
separate.
Advertising and Packaging
Invest in Human Resource
Body shop clubs and organizing events
Development of successor
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Sustainability
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Pr t
F r n
Regi n S ecificr duct
Pri e
Acc rdancewith
the
cun
try
Aven esOnline
New arkets
Pr m ti ns
InnovativeWay
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Post Script
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Post Script
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Change in Strategy
Media advertising
Opened in Malls
Appointed a PR company to promote its products(1994)
LOreal acquires Body shop
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Post Script
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Retail Sales by geographic zone
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Post Script
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Number of Stores
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Post Script
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Sales
1 Total sales to consumers through all channels2 Total sales to consumers by stores which operated continuously from January 1 to December31, 2009 and over the same period in 2008.
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Thanks
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A
Team Works
Presentation