SWOT Analysis of Body Shop’s retail outlet in Canada Water Executive summary Body Shop International (Body Shop) is a multinational company which is mainly producing ecological skin and hair products. Their products are solely based on natural ingredients and manufactured according to an ethical code which is opposed to animal testing. The cosmetics franchise is considered to be one of the biggest around the globe with a well established reputation in 54 countries. L’Oreal, the dominant company in the beauty industry, acquired Body shop in 2006. Although Body Shop has become a subsidiary of L’Oreal S.A it still acts according to its own policy, values and ethical code. The acquisition has solved Body Shop’s financial problems and has provided the means for expansion to a bigger market share. Introduction This report will be a SWOT analysis of Body Shop’s retail outlet in Canada Water. It will mainly focus on: • Strength, weaknesses, opportunities and threats of the particular retail outlet. • What was the effect of the acquisition on the particular branch. Findings Strengths • Brand Loyalty – Body Shop is greatly dependent on its brand reputation which is a critical factor in sales. Due to its unique products, it has come out to be seen as one of the most environmentally friendly retailers. • L’Oreal’s support – By being a subsidiary of L’Oreal, Body Shop appears to have an increase in sales. Furthermore, L’Oreal’s experience in advertisement and marketing can boost overall sales. • Niche marketing – Body Shop targets a niche market. By stating that it is not testing its products on animals and by appearing to have an ecological profile, it has appealed to customers with ethical issues. Being the only shop in the shopping centre that sells ecological products, has given it advantage in the local market. • Charity support - Body Shop provides financial aid in charities by giving small amount of money from particular products they sell. Body Shop’s support in local charities and non-profit organisations enhances its image in the local society. Weaknesses • Slow service – Body Shop’s location, inside a shopping centre where it is always crowded, in combination with the fact that there is inadequate personnel results in slow service for the customers. Customers may be discouraged and might prefer a retail outlet in a central location. Opportunities • Product development – Body Shop can take advantage of L’Oreal’s experience in research methodology and efficiency in order to improve and develop their own existing products.
The literature reviewed to produce this report consisted of different online trusted sources, and official data from Loblaw Canada Limited website. Tangible and intangible assets have been taken into consideration, as well as the company’s stated goals, vision, mission and an overall structural review of the company. In order to properly conduct the analysis of Loblaw Canada Ltd., some well recognized tools were used, such as Porter’s Five Forces, SWOT analysis and PEST. Online journals, additional publications, and Loblaw’s annual reports were consulted throughout the report producing
There has been some controversy regarding L’Oréal Canada and their use of animal testing in their cosmetic products. For certifications regarding safety, we currently possess 86% of manufacturing facilities that are either OHSAS 18001 or VPP certified. (L’Oréal Canada, 2014) Safety is a priority for us at L’Oréal Canada to ensure that our products are safe for our consumers so that they can enjoy the beauty of our cosmetic products. Health Canada has stated that science has not advanced to the point where they feel comfortable banning animal testing in the cosmetic industry, but that animal testing is not required for cosmetic products. (Bendall, 2011) However, the European Union has recently passed a Cosmetics Directive in 2009, which bans the use of animal testing in the cosmetic industry. The Cosmetics Directive bans the testing of finished products, ingredients within a product and the marketing of a product that has been tested on animals. (European Commission, 2014) As a result of these changes in Europe, it is important for L’Oréal Canada to consider alternative methods to animal testing for business to continue with countries in Europe, and so that consumers will feel more positive about purchasing our products due to them being cruelty-free.
The growth expansion of the firm was too rapid and sales, margin and stock prices began to decline as a result. The growth rate quickly declined as competitors such as Bath & Body Works flooded the market. This decrease in market share led to poor decision making by the owner. The Body Shop quickly saturated the market and began to dilute their brand name. It quickly became a mass-market line franchised to every suburban shopping mall and street corner.
...e over ten million customers, providing over 500 brands and thousands of products. For added income, in December of 2012, the company launched their own supplement line taking into account all the positive and negative reviews of existing brand reviews, to create a product consumers like, with the ability to offer lower prices by eliminating the middle man, selling directly from their site. They advertise their personal product line all throughout their site, so that visitors leaving the site without seeing their product are rare. They also provide their own clothing and accessory line, offering customers top of the line products for low prices, which serves as a way to advertise for a profit. Strategically, Bodybuilding.com uses top Youtube.com famous professional and inspirational bodybuilding models, displaying their product on recognizable faces and fit bodies.
Product as an element of the marketing mix is at the base of Primark 's marketing strategy, as it is meant to attract customers researching those very actual benefits which only Primark products should be able to provide. In this Primark also has to be careful, shall other companies adapt their products to provide similar benefits the targeted customers may chose other companies ' products, so benefits may also comport risks for Primark as those are not very specific.
Based on the information provided in the L’Oreal case, Yue Sai struggled to grow and capture additional sales in the high-end Chinese cosmetics sector. In the past, L’Oreal attempted to position Yue Sai in several different ways which can be viewed as detrimental to the company image, showing uncertainty as the company struggles to see which positioning strategy will stick. The most recent positioning presented in the case, which desires to “deliver Yue Sai’s longstanding brand promise that ‘Nobody knows Chinese skin better than Yue Sai’”, allows the highest probability of success for the company capitalizing on countless fresh trends in Chinese cosmetics (6). The positioning statement would reflect this new strategy: “For the modern Chinese woman Yue Sai offers a line of high-end cosmetics. Unlike other high-end cosmetics Yue Sai combines traditional Chinese medicine and sophisticated technology adapted to the unique skin type of Chinese women.” Yue Sai saw reasonable success and hope in the new Vital Essential line which utilized traditional Chinese medicine and, therefore, resulted in above average repeat purchases. Continuing to focus the strategy around traditional Chinese medicine should benefit Yue Sai considerably. Another suggested strategy would be to wholly reposition Yue Sai, however this is ill advised. As stated in the case, Yue Sai tried numerous different positioning strategies, which ultimately provided no clear path strategy. Repositioning would show uncertainty in the company, lowering brand value in the eyes of the consumer.
Overview NARS Cosmetic is a cosmetic company founded by Francois Nars in New York, US in 1994 (Hollywoodnoirmakeup.com, 2012). It is considered as one of the best-selling cosmetics and skincare products company in U.S.A, Canada, Korea, Japan, and Taiwan (Shiseido Co., 2014). Since the demand for cosmetics is growing every year and people are looking for more quality products, the company decided to open a new branch in the Middle East to have more customers and to satisfy them by making the NARS product more easily accessible. The aim of this paper is to indicate the best country among the GCC to open a new NARS Cosmetic branch by studying every country’s feasibility of a new cosmetic branch. We hope this expansion can please our customers and make better reputation in GCC countries,besides increase our profit.
L’Oreal is the largest beauty company in the world and in the past 100 years that it has expanded, it has supplied to 130 countries with offices in 58 different countries. This global company is the number one premium cosmetic product in the world today and has taken the core and beauty of people’s everyday lives since 1907, the beginning of L’Oreal. The superior leadership of a guy named Eugene Schueller started this strategic company with basic products such as hair care and also the first man-made hair color product. Five years later you could find these products in Austria, Italy, and the Netherlands. In 1934 Eugene invented the first mass market of soap less shampoo and this led the success of L’Oreal in the country of Europe which soon recognized them as the leader in body care and hair coloring products. Finally soon after World War II L’Oreal moved into the United States and the company seemed to change. When L’Oreal expanded the competition was more involved and more growth was needed in order for the company to be more successful. With problems like this, the strategy and planning that has been applied in L’Oreal has been huge for the success of the company. L’Oreal realized they needed to expand in other fields of the beauty market and target markets in order to stay alive and successful. This would mean that L’Oreal would need to acquire other companies as part of their expansion and through this they have kept the constancy of the leading company with acquisitions of many small companies. Finally in the 1980s they started their globalization into new markets all around the globe by acquiring new companies that would form the cosmetics that we know today. Although the role of acquisitions has never been the main focus of the company, internal growth and strategy was the number one reason for L’Oreal becoming such a big name. The main strategy was to adopt new companies and expand it from within believing that the brand could be taken globally and benefit their overall brand portfolio. The main role of acquisitions was to increase and lengthen the internal growth rate. L’Oreal started acquiring companies from the beginning of their name. They started with the basics of their own brands such as L’Oreal Professional, L’Oreal Paris, Kerastase, and Club des Createurs de Beaute.
The beauty industry has great opportunities for companies wanting to profit from the growth and resiliency of the sector. Finding the right niche is important for becoming visible in the industry. Communicating the unique selling point to the target group will distinguish the company from the competition so it can survive. Also, product sales are needed to earn revenue beyond the service income. The success of Sugar Wax Salon will rely on its ability to offer a beneficial service, create the right products, and promote them to the right people at the right price.
The environment of L 'Oreal is very competitive and progressive. The trends of consummation force the company to be always more innovative in the production of products, but also in the sale of these products. To continue to be the leader and to compete on the market, L 'Oreal must adopt new strategy in the future in balance with his customers and his environment.
The topic of research on animal testing in the cosmetic industry has long been a controversial and prominent topic. While some believe that it is necessary to test the products on animals before trying them on humans, the others stand by their support for the animals. Even though many major cosmetic companies have claimed to discontinue the practice due to new alternative ways, it still continues around the world. Companies like L’Oreal, Lancôme, Max ...
After studying the cosmetic market we can identify a series of needs in this market:
Today, vast product selections require marketers to identify and understand their target market, and to ensure their message is specifically directed to, and clearly received by their target market. In Dove’s example, early marketing strategies targeted all woman who needed an alternative to harsh soaps. However, as soaps progressively became less harsh, the Dove brand required more strategic positioning in the minds of their consumer. When speaking to Dove’s re-positioning efforts, Flagg (2013), points out that while similar products associate brand image with slender, stereotypical models, Dove’s “2004 campaign for Real Beauty” (p.1) specifically targeted ordinary women, celebrating women’s diverse body shapes, and the importance of every woman feeling good about herself (p.1). With ever increasing product offerings entering the marketplace, marketers must clearly communicate to their target group why their product is right for them, as compared to other
Nowadays, people attach great importance to appearance. In order to meet different customer needs, each company in cosmetic retailer industry provides various beauty products to customers. Skincare, make-up, hair care products, body care products, perfumes, health and beauty supplements are included.
Beauty product can be defined as cosmetics; materials and devices made and sold for the purpose of enhancing the physical attractiveness of users or in other words, as any product, especially a cream or lotion, intended to improve a person's appearance . We live in society where people nowadays are very obsessed with beauty and spending so much money on beauty products. Since we were children, the society taught us that beauty is happiness, wellness and everything. This creates a mindset that only attractive physical appearance is beauty, even though ‘beauty’ is a very subjective word where it can apply to many things. It is a rare sight these days to