Body Shop Brand: Repositioning to Target the 'Masstige' Segment and Impact of its Acquisition by L'Oréal
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Case Details:
Case Code : MKTG181
Case Length : 25 Pages
Period : 2000-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : The Body Shop International Plc.
Industry : Beauty care / Cosmetics
Countries : Europe, USA.
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Background Note
In 1970, Roddick (then Anita Perella) and Gordon Roddick (Gordon) saw a store
called "The Body Shop" in Berkeley, California, USA, selling cosmetics like
shampoos, lotions, body creams, etc. The store was run by two entrepreneurs,
Jane Saunders (Saunders) and Peggy Short (Short), who sold these cosmetics on
the 'care for the environment' plank...
Building the Brand through Societal Marketing
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During the initial years, TBS adopted a marketing approach
that was different from other traditional retailers of cosmetic products. The
products were promoted through offbeat brochures. Roddick's social and
environmental activism was also central to the company's marketing strategy.
Her views about business as a model for social change and her rhetoric against
standard corporate practices soon attracted a lot of media attention. Roddick
had said, "There is no more powerful institution in society than business. I
believe it is now more important than ever before for business to assume a moral
leadership."...
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Re-Positioning
the Brand to Target The 'Masstige' Segment
In the early 2000s, some analysts felt that the marketing approach of TBS had
become no better than that of the typical retailers as it had gone soft on the
activism agenda. Following poor financial performance, the management was
changed and Roddick relinquished her position as the co-chairperson in 2002...
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Marketing Initiatives in 2005
In 2005, TBS took forward its strategy to consolidate its 'masstige'
positioning by launching new products and various campaigns. The aim was
to drive sales by providing customers with an improved shopping
experience. The focus was on launching an innovative range of personal
care products, new store design, and customer service programs for sales
associates and TBS At Home consultants. As a part of product development strategy, various innovative products were launched that aimed to encourage multiple purchases and higher transaction values (Refer to Table II for new products launched in 2005)... |
Criticisms Faced Over the Years
Though the company was widely considered as a pioneer in
corporate social responsibility it also had its fair share of critics. Since the
1990s, TBS had to face increased scrutiny from many quarters. For instance, Jon
Entine (Entine), a business ethics expert, was one of its fiercest critics...
Excerpts Contd...>>
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