The Body Shop Strengths and Weaknesses

One can asses The Body Shop strengths and weaknesses through the SWOT analysis below.

The Body Shop SWOT Analysis 
Parent CompanyCategorySector

Tagline/ Slogan

USP

L’Oréal groupCosmeticsBeauty product retail

Nature’s way to beautiful

Natural ingredients

STP
SegmentTarget Group 

Positioning

Masstige – Higher income, urban man and women,Beauty and health conscious women of higher income group, cosmopolitan customersLuxury natural care for the body
SWOT Analysis
Strengths 1. Huge franchisee network of over 2,500 franchised stores in more than 60 countries2. Eight Categories of beauty products with more than 1200 products3. Taking advantage of L’Oreal’s experience in research methodology and efficiency to improve and develop own existing products.

4. Re-designed store layout, not only ambience creates customer attraction, but also story selling to enhance emotional connection.

5. A high brand value and brand image viewed by customers as a socially responsible company due to its engagement in local charities and many philanthropic activities – 64% of The Body Shop loyal shoppers are ready to pay more for an ethical product

6. Strong Customer Community

Weaknesses 1. There is very little advertising of its products2. Due to franchisee system, there isn’t enough control by the proprietors3. Slow service for the customers due to crowded shopping center location, in combination with the fact of inadequate personnel

4. Slower distribution due to Chemical legislation

5.Unstable supply of ingredients and materials

6. New Legislation banning animal test products may rising competition by marketing this policy

 

Opportunity 1. Increased awareness of organic and eco friendly products (89% avoid synthetic chemicals in personal care goods)2. The number of online buyers are increasing and hence it can use its website portal for sale and free delivery that will increase its market share3. The increase supply of a wide range of products for men promote sales increase by satisfying demand on this particular niche market.
Threats 1. Fierce competition in the cosmetic market with a new brand launching itself every day. Competition both with mainstream big brands, and niche natural, environmental and ethical businesses.2. Economic downturn can hamper sales3. The products use some exquisite raw materials from all across the world. So legislations or some problems in trade with supplier countries can heavily impact its operations

Competition

Competitors 1. Nature based brands: L’OCCITANE, LUSH2. Mid-Low Range : Olay & Nivea

 

Yuhan ZHANG

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