Body Shop Brand: Repositioning to Target the 'Masstige' Segment and Impact of its Acquisition by L'Oréal
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Please note:
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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Case Details: |
Price: |
| Case Code |
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MKTG181 |
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extraThemes
Marketing Management/ Product management, Consumer
behavior, New and emerging media |
| Case Length |
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25 Pages |
| Period |
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2000-2007 |
| Pub Date |
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2008 |
| Teaching Note |
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Not Available |
| Organization |
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The Body Shop
International Plc. |
| Industry |
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Beauty care /
Cosmetics |
| Countries |
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Europe, USA. |
Abstract:
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The case discusses the evolution of 'The Body Shop' brand
since its inception - its rapid growth in the 1980s; decline in the 1990s;
repositioning to target the 'masstige' segment; acquisition by L'Oréal; and,
impact of the acquisition. Since its inception in 1976, The Body Shop
International Plc (TBS) had caught the imagination of its customers as well as
the world through its ethical stance and social activism of its founder Dame
Anita Roddick (Roddick). The brand, considered an example of the societal
marketing concept, grew rapidly for more than a decade till it faced some
serious problems in the 1990s and the early 2000s. It suffered due to a
combination of factors - quality issues related to its products; emergence of
many other 'me-too' brands; and, targeted by critics who alleged that TBS was
not as ethical as it projected itself.
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This was the time the management of TBS decided to reposition
the brand to target the 'masstige' segment. It took various initiatives to
reinforce the positioning and by the mid2000s, TBS was well on its path to
recovery. In 2006, TBS's management agreed to be acquired by multinational
cosmetics giant L'Oréal. This decision led to a spate of criticisms against TBS
and Roddick as the critics alleged that L'Oréal did not share the values of TBS.
Some felt that the 'The Body Shop' brand was irrevocably damaged through its
association with L'Oréal. However, TBS sales seemed to be unaffected by the
criticisms and consumer backlash that followed the acquisition, at least in the
short term.
Issues:
» Understand the issues and challenges in building up a brand through the societal marketing concept
» Understand the issues and challenges in repositioning a brand, particularly to the
'masstige' segment of the consumers
» Understand the reasons for the consumer backlash against TBS after it agreed to be acquired by L'Oreal and the effect social criticism/consumer backlash has on a brand
Contents:
Keywords:
Body Shop, L'Oreal, Societal marketing concept,
Repositioning, Masstige segment, Positioning, Anita Roddick, Multi-channel
strategy, The Body Shop At Home, e-commerce, Loyalty program, Corporate social
responsibility, Ethical score
Strange Bedfellows?
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