group assignment mkt304 the body shop

<span class="text_page_counter">Trang 1</span><div class="page_container" data-page="1">

FPT UNIVERSITY CAMPUS CAN THO

Cần Thơ, 21/07/2022

</div><span class="text_page_counter">Trang 2</span><div class="page_container" data-page="2">

a) Strengths of The Natura & co ...3

b) Strengths of The Body Shop ...3

c) The Body Shop's Weaknesses ...4

</div><span class="text_page_counter">Trang 3</span><div class="page_container" data-page="3">

I. Overview

Founded in 1976, The Body Shop is a global beauty brand and a certified BCorporation™. Natura CO are a global purpose driven group made up of fouriconic beauty companies They are Avon, Natura, The Body Shop and Aesop.

Natura &Co operates in more than 100 countries, with over 3,700 stores,35,000 employees and 7.7* million Representatives and Consultants.

1. Aspiration

We seek to make positive change in the world. We offer high-quality,naturally-inspired skincare, body care, haircare and makeup that is producedethically and sustainably. We see our community of employees and customersas a collective of activists who use our brand voice as a platform to drive socialand environmental justice issues around the world.

2. Purpose

The Body Shop exists to fight for a fairer, more beautiful world. This is ourpurpose, and it drives everything we do. Our beliefs are everything to us: thatbusiness is a force for good, the empowerment of women and girls and thebelief that everyone is beautiful.

3. Product

The body shop has proudly campaigned against animal testing in thecosmetic industry for decades. Vegan-friendly beauty products do not containany ingredients of animal origin and are lethal to animals. To help customerschoose products according to specific uses and ingredients, The Body Shopalso categorizes products according to each line with more than 50 differentproduct lines, Their main products are skin care. such as mask, makeupremover), body (featured products are body butter, shower gel, hand sanitizer,comb, shampoo), perfume, body spray and make-up.

4. Business

</div><span class="text_page_counter">Trang 4</span><div class="page_container" data-page="4">

The main competitors worldwide of The Body Shop are L’Occitane, YvesRocher, Lush and Weleda. These brands are also focus on natural ingredientsand environmental protection. Despite Maybelline New York is not an obviouscompetitor, it is a threat to The Body Shop because is started to position itselfagainst animal testing and for environmental protection. This company is well-known internationally in the cosmetics industry and so takes part of The BodyShop’s competitors.

The Body Shop reshaped priorities for 2020 to address the demandsimposed by the pandemic. With 90% of its 2,800 stores closed around theworld, The Body Shop off set this setback by pivoting to ecommerce and directsales (At Home) platforms

By creating a refreshed brand experience, the company is engaging its staffand customers to become part of a collective of global changemakers, withenvironmental and community-minded initiatives designed to return it to theforefront of ethical business.

These efforts resulted in the addition of The Body Shop to Brand Finance'sCosmetics Top 50 ranking in 2021 and the accolade as one of the fastestgrowing brands in the industry.

In 2021, has deployed 100 of stores in key locations to extend brandawareness. The expansion of The Body Shop’s geographic footprint is alsounderway. In the United States, a successful soft launch of the direct saleschannel added 8,000 new consultants in just six months, with full platformcapability expected towards the end of 2021. In Japan, The Body Shopacquired the business from a head franchisee, paving the way for acceleratedgrowth in this critical strategic market. The Chinese market remains animportant opening as part of a broader entry strategy being evaluated by thegroup.

II. Analysis

1. SWOT analysis

</div><span class="text_page_counter">Trang 5</span><div class="page_container" data-page="5">

a) Strengths of The Natura & co

Multi-brand: Natura & Co has many different brands that offer a widerange of products, targeting different types of consumers, from budget to high-end, on a global scale. The model allows Natura & Co to conduct its businessuniquely, maintaining an agile and decentralized business model that balancesautonomy with interdependence.

Leverage team size: Team synergies can be achieved in procurement,scale, and other initiatives. Natura & Co has created three sustainabilitynetworks (in digital enhancement, retail, and sustainability) that enable thedissemination of best practices.

Strong Corporate Governance: Strong corporate governance and anexperienced leadership team also reflect the strength of the Natura & Co groupto operate globally and drive sustainable long-term value.

Global Omnichannel Growth: Natura & Co believes that Natura & Cocan unlock growth synergies and also rebalance its global footprint bycapitalizing on excessive backlogs. There is space to develop different saleschannels, especially in digital sales.

b) Strengths of The Body Shop

Innovation and Sustainability: Natura & Co seeks to innovate and grow acomplementary and unique brand portfolio with shared best practices across thefour brands, such as a passion for connecting people and communities insustainable relationships, and living to the highest standards of social,environmental and economic impact.

Huge Franchise Network: They have over 2600 stores globally and apresence in 80 countries with beautifully designed stores that attract customersthrough their space.Strong Digital Presence: A strong digital presence alwayshelps brands reach more target groups and build relationships with theircustomers. The Body Shop is doing it! They have over 2 million followers onInstagram for their content. Remember that today, the digital presence of

</div><span class="text_page_counter">Trang 6</span><div class="page_container" data-page="6">

brands or small companies has become a must for everyone because themajority of your target customers are online!

Brand Loyalty: The Body Shop has a large loyal customer base. Theyform online communities that help each other with beauty tips, brand loyalty,and repeat purchases.

Unique product portfolio: They have an amazing range of products to caterto every beauty need from cleansers to shampoos. All natural, dermatologicallytested, and completely safe.

Sustainability: Their concern for the environment and society makesthem stand out from their competitors. Their campaigns about cruelty toanimals have helped them connect closely with like-minded people, helpingthem build a good brand image.

Problem-focused innovation: They not only create products to sell, butthey also create solutions through their products. Researchers say that 89% ofcosmetic users are looking for natural and harmless alternatives to chemicaland synthetic cosmetics. There is a huge consumer base for them!

c) The Body Shop's Weaknesses

High Price: The founders of the body shop thought customers would pay afew extra dollars for their natural products and it worked at the time. But overtime, competitors emerge with the same niche and competitive pricing. Pricecompetition has become tough for The Body Shop.

Media influence: Their digital presence and relationship with customersare helping them to differentiate to a large extent to stand out from thecompetition.

Slow service: Their stores are located in crowded areas and customersdon't have much time to wait for their turn to buy products.

Franchise system: Because The Body Shop manages its stores through afranchise system, the owner lacks control.

</div><span class="text_page_counter">Trang 7</span><div class="page_container" data-page="7">

Supply Chain: When it comes to the supply chain, The Body Shop has alarge supply chain in the UK. Meanwhile, when it comes to stores outside theUK, they need to be more efficient.

d) Macro analysis

From the beginning of 2020, the ISM index dropped sharply and graduallyrecovered again, until the end of 2021 and early 2022, continued to decreasedue to the influence of the Omicron variation. Up to the present time, accordingto the latest data, this index is 53%, lower than the index of the blind industrygroup of 55.3%. This shows that the production in the manufacturing sector isnot very positive.

</div><span class="text_page_counter">Trang 8</span><div class="page_container" data-page="8">

UMCSI shows how preferences influence customers' investment decisions.It can be seen that after the recovery period due to covid-19 in early 2021,UMCSI continued to decrease and showed no sign of increasing for threeconsecutive months. That is, users are still skeptical about the market. At themoment, it is not possible to implement the IMC plan until there are signs ofgrowth for three consecutive months, however, according to the data, there wasa slight growth in July from 50 to 51.1 and the situation Covid situation hasstabilized now, hopefully, businesses can return to producing new product linesand return to normal operations.

</div><span class="text_page_counter">Trang 9</span><div class="page_container" data-page="9">

In the M2 Money supply index, the money supply increases sharply in2020 and will increase gradually until the beginning of 2022 to nearly 22M,this means that inflation has increased, and now inflation is increasing, causingproduct prices to increase. the potential to increase or the number of assets togradually decrease. This is a threat to The Body Shop as this is a brand that issaid to be quite expensive.

From here it can be seen that, like many other businesses, Natura & Co, aswell as The Body Shop, are in a period with many threats from the market.

In addition, the body shop still has the following advantages anddisadvantages

 Expand their product range for men

 Strengthen your social media presence

</div><span class="text_page_counter">Trang 10</span><div class="page_container" data-page="10">

f) Threats

 Fierce competition in the cosmetic market. Businesses create newbrands and sell natural products

 Slower delivery due to chemical legalization

 Loss of supplies from certain countries. New commercial law comesinto effect affecting business activities.

2. 4P’s Analysis

a) Product Product types

Currently, The Body Shop has about 400 body care products and nearly500 other products including makeup, facial care, perfume, hair care, etc. Bylaunching related products, The Body Shop offers customers a stop shoppingopportunity – meaning they can find any product for holistic care when theyvisit the store.

In addition, the use of high-quality natural ingredients from all over theworld such as fruits, vegetables, herbs, etc. is the difference between The BodyShop. In addition, services such as customer care, gift basket making, freemakeup, etc. Also available in stores

Products of The Body Shop

_ Lips_ Face

_ Make up remover_ Make up tools

</div><span class="text_page_counter">Trang 11</span><div class="page_container" data-page="11">

Facial _ Cleanser_ Balance

_ Moisturizing essence_ Moisturizing_ Sunscreen…

Body & lotion

_ Shower gel_ Body milk_ Soap

_ Exfoliate dead skin_ Hand care_ ….

_ Moisturizing_ Deodorant

Hair care _ Conditioner_ Shampoo_ Hair care_ Making style

Besides, to meet the care needs of men's bodies, The Body Shop also hasproducts specifically for this customer such as skin care, perfume, shampoo,and facial cleanser.

 Product Lines

To help customers choose products according to specific uses andingredients, The Body Shop also categorizes products by line with more than

</div><span class="text_page_counter">Trang 12</span><div class="page_container" data-page="12">

50 different types. Some product lines of The Body Shop can be mentionedsuch as tea tree, mango, blueberry, and aloe,...

Tea Tree Product Line: The Body Shop's Tea Tree product line with themain ingredient from tea tree essence is one of the company's famous productlines specializing in oily and acne-prone skin. The complete skincare setincludes the main products: cleanser, toner, acne essence, oil-control lotion-based moisturizer, and sleeping mask.

There are also other products in the set such as BB Cream, makeupremover wipes, exfoliating gels, lotions, shower gels, and acne gels, clay masks,etc., all extracted from Tea Tree.

b) Price

The prices of The Body Shop products are in the average range – quite highfor similar brands. The Body Shop's advantage is high-quality ingredients atlow prices, bringing high benefits to customers. In addition, despite the highprice, the product capacity is quite large, so it can be said that this price is quitereasonable and suitable for the ability of the target customer to pay.

</div><span class="text_page_counter">Trang 13</span><div class="page_container" data-page="13">

To be able to select the best ingredients at a fair price, The Body Shop hasbeen running the Community Fair Trade program since 1987. It's committed todoing fair business with all suppliers.

c) Place

The company's distribution strategy is to bring products directly tocustomers without intermediaries. Currently, The Body Shop has about 2,500stores in 61 countries and an online sales channel via its website( The Body Shop stores operate throughfranchising and are increasingly expanding globally. The store system providesbusinesses with a competitive advantage through the display, staff attitude,samples, and comparison of products before buying.

d) Promotion Advertising Website

The Body Shop rarely promotes its products, only providing information,products, and store addresses on the website.

 Social media

Besides the company's official website, The Body Shop also appears onsocial networking sites such as Facebook, and Twitter to interact with

</div><span class="text_page_counter">Trang 14</span><div class="page_container" data-page="14">

customers and give information about promotions, and new products,... Moreeffective.

 Active Self Esteem: How to make customers and employees feelgood about themselves. People are the center and soul of The Body Shop'sbusiness

 Protect The Planet: In addition to using natural ingredients, TheBody Shop also cares about environmental protection through the use ofrecycled materials, reducing energy consumption and waste.

Therefore, the campaigns that The Body Shop implements are based on thecore values   that the company has set out, there are many campaignsinitiated to protect the victims, most of which are women and childrensuffering from trauma. unfair treatment in society

The Body Shop and Special Envoy for Youth at the United Nations haveembarked on the launch of the latest social activism campaign called Be SeenBe Heard, two partners looking to expand their reach. voice of the younggeneration in community life.

</div><span class="text_page_counter">Trang 15</span><div class="page_container" data-page="15">

The Body Shop has cooperated with ECPAT (Organization to PreventChild Prostitution, Child Pornography, and Child Trafficking) to deduct theprofit earned on each product "Soft Hands Kinh Heart Hand Cream" handsoftener) will contribute to the prevention of trafficking and sexual abuse ofchildren and young people around the world.

TheBody ShopFoundation:The Body Shop Foundation was establishedin 1990 with an annual donation of £650,000. Since its inception, the

</div><span class="text_page_counter">Trang 16</span><div class="page_container" data-page="16">

foundation has donated a total of more than 11,000,000 pounds to more than3,000 globally such as educational activities in Zambia, environmentalconservation in Romania, etc.

Sales Promotion: The Body Shop introduces the Love Your Bodymembership card program with cumulative incentives, special discounts, andexclusive participation in some programs,... To retain customers and build theirloyalty

Business marketing:The Body Shop is a brand of the Natura group whichis a well-positioned beauty group with a 2.0% global market share as ofDecember 31, 2021 thanks to our significant activity in Asia Pacific Oceania,Europe, North America, Oceania, and Latin America, according toEuromonitor. International data, April 2022 (Euromonitor InternationalLimited, Beauty and Personal Care, April 2022, RSP retail value includingsales tax, US dollars, fixed exchange rate 2021, current price operating athistorical/forecast unchanged for 2021).

The company has a strong presence in emerging markets, as well as parts ofEurope and Asia. In 2021, we are present in more than 100 countries, employmore than 35,000 employees and associates, and serve more than 200 millionconsumers.

Segment:Target market: Latin American: Ecuador, Guatemala, Costa Rica,Panama, Honduras, Dominican Republic. The market segment of the bodyshop is high earners, urban men and women.

Competitor:The best sales growth rate of 66% compared to Estee Lauderand 7.6% against P&G

</div>