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.
Mazal Group was founded in 2007, in Chatsworth, California. They have six main brands and two brands being developed. With their emphasis on cosmetics, they have shown excessive growth in the last few years, opening an average of eight new stores and ten kiosks each year. They have eighty-four employees in their headquarters, up from the initial eight that started in 2007. In 2013, the cosmetics industry in the United States earned revenues of $56.63 billion, with facial skin care representing 27% of the industry (Exhibit 1). CEO, Adi Oded, says, “The cosmetics industry, especially in skincare, is booming. We have all these baby boomers getting older and looking for anti-aging solutions and we are giving them those solutions” (personal communication, June 27, 2014). The cosmetic industry is constantly developing and this in-depth analysis will provide the explanation of why Mazal Group has had so much success in recent years.
...so very successful because of their unique forms of advertising and promotions. Contacting certain audiences which is their main target during different promotions is a wonderful way to go. Understanding advertising will better help you understand yourself and make you realize whom you really are and whom you will always be no matter how many cosmetics you buy.
The beauty business is one of the most profitable markets in the world. The beauty industry experiences tremendous amounts of growth despite economic challenges faced throughout the globe. Annually, people in the United States spend eight billion dollars on cosmetics alone. (Matters of Scale- Spending Priorities, 1999) Estee Lauder is a pioneering company that is internationally known for its cosmetics.
...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.
By 2013, the organization had about one hundred and thirty-five stores in the United States, two in Hong Kong, twenty-four in Australia, Fifty-one in Canada and one in the United Kingdom. The latest annual report of the Lululemon company shows that the company employed approximately seven thousand people, with the majority working in the corporate 's retail positions. The company registered a double-digit development in its net income and revenue. Precisely, its net income grew by forty-seven percent and its revenue grew by thirty-seven percent. The notion of geographical extension offers a complete range of potential advantages for Lululemon. The product currently operates retailing events in approximately one hundred and fifty stores situated mainly in the United States and Canada, Hawaii, China, New Zeeland, Australia and England. With the society–oriented marketing method, Lululemon has developed strong industry upon a model of opening company stores in different regions. The company operates strategic sales programs partnering with fitness and yoga facilities to feature Lululemon yoga equipment and attire in the studio. The approach of partnering offers valuable marketing opportunities that the firm exploits to maximize its profits. The firm is big enough and has the requisite market power that helps it
...tralian cosmetic and toiletries industry to grow. Over the past 5 years this industry has grown in sophistication and professionalism because we are now manufacturing most of our products using organic compound synthesis techniques which are producing more products quickly and products of a higher quality.
In 1984, new CEO Owen-Jones began pushing for L’Oreal to become the largest cosmetics firm in the United States. In order to accomplish this, the company began assessing acquisition opportunities that would broaden L’Oreal brands throughout the U.S. The first tw...
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.
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.
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 cosmetic industry in the United States is huge – the sale of skincare, hair care, make-up, perfumes, toiletries, and deodorants generates about $80 billion a year. The vast majority of cosmetic and beauty products are manufactured by a handful of large companies who dominate the industry, and who are more focused on profits than they are on using safer, higher quality ingredients in their products.
competitors include Mary Kay Inc., and Revlon, Inc. The company’s top foreign direct selling companies of beauty products are L’Oréal (France) and Infinitus (China). AVON sold their North American division, as 90% of sales come from non-U.S. markets. These companies are the top competitors for AVON, due to the similar product base within the cosmetic environment, price points, and target market audience (Wood, 2013). AVON has lost domestic market shares to Revlon, who has increased their marketing campaign against the company. AVON has a challenging foreign market to infiltrate between rivals in respected countries such as L’Oréal and Infinitus. The threat of substitutes is highly competitive within foreign markets in an already competitive industry to
Mistine is still the number one cosmetic in Thailand and provides more than 6,000 products, which are divided into 5 groups (Mistine Cosmetics, n.d.). Mistine offers Body Care, Personal Care, Make Up, Fragrance, and Skin Care (Mistine Cosmetics, n.d.). All of their products are certified and produced through quality manufacturers (Mistine Cosmetics, n.d.). The distributor, Better Way Company, feels that because of its acceptance throughout the Thai market Mistine can become “number one in the heart of worldwide cosmetics users” (Mistine Cosmetics, n.d.). Better Way recently built a new “state-of –the-art” distribution center (Mistine Cosmetics, n.d.). It is being considered “one of the most advanced technological systems in South East Asia” (Mistine Cosmetics, n.d.).
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.