The Body Shop: A Company Analysis
The Body Shop is a cosmetics company that was founded in 1978 by Dame Anita Roddick. It is now a subsidiary of the French cosmetics company L’Oréal. The company has more than 2,500 stores in over 60 countries. The company is known for its ethical policies, such as its stance against animal testing and its support of social causes such as human rights, environmental protection, and fair trade
2. Consumer behavior
-What is it and how The Body Shop influences it
Consumer behavior can be defined as the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society (Hawkins et al., 2001).
There are many factors that influence consumer behavior, such as culture, family, personal factors (age, occupation, lifestyle), social class, reference groups, and marketing mix (product, price, place, promotion) (Kotler & Keller, 2009).
The Body Shop influences consumer behavior by using marketing mix to target their consumers. For example, The Body Shop offers a wide range of products that are vegan and cruelty-free. They also use celebrity endorsements to promote their products. In addition, The Body Shop has a loyalty program called Love Your Body™ which gives members discounts on purchases and other benefits
3. L’Oreal and The Body Shop
-The creation of the company
-The reasons for the sale
The Body Shop was founded in 1978 by Dame Anita Roddick. The company was started with just £600 ($782) of borrowed money. The first store was opened in 1976 in Brighton, England. In 1984, The Body Shop became a public company listed on the London Stock Exchange. In 1987, The Body Shop had 150 stores in 25 countries. In March 2006, L’Oréal announced its intention to purchase The Body Shop for £652 million ($1 billion). The deal was completed in June 2006.
There are several reasons why L’Oréal wanted to purchase The Body Shop. First of all, L’Oréal is a cosmetics company and The Body Shop is a cosmetics retailer. This would give L’Oréal a greater presence in the retail market. Second of all, L’Oréal wanted to acquire The Body Shop’s image as an ethical and responsible company. This would help boost L’Oréal’s own image as some of its practices (such as animal testing) have come under criticism from animal rights activists. Finally, L’Oréal hoped to increase its sales by expanding The Body Shop’s operations into new markets such as Asia and Latin America
4. Anita Roddick
-What she did for the image of the company
Anita Roddick was born in 1942 in Littlehampton, England. She was the founder of The Body Shop. Roddick started the company with just £600 ($782) of borrowed money in 1976. In 1984, The Body Shop became a public company listed on the London Stock Exchange. In 1987, The Body Shop had 150 stores in 25 countries. In March 2006, L’Oréal announced its intention to purchase The Body Shop for £652 million ($1 billion). The deal was completed in June 2006.
Roddick was a pioneer in the use of natural ingredients in cosmetics and toiletries. She was also a champion of fair trade, taking a stand against animal testing, and campaigning for human rights. Roddick was awarded the title of Dame Commander of the Order of the British Empire (DBE) in 2003. She died in 2007 at the age of 64
Roddick did a lot to build The Body Shop’s image as an ethical and responsible company. She was a pioneer in the use of natural ingredients in cosmetics and toiletries. She was also a champion of fair trade, taking a stand against animal testing, and campaigning for human rights. Thanks to Roddick’s efforts, The Body Shop had a great reputation as an ethical company. This helped boost sales and made The Body Shop attractive to potential buyers such as L’Oréal
5. The problems of The Body Shop
-The conflict with L’Oreal
Despite its ethical image, The Body Shop has faced some criticism over the years. One issue is animal testing. While The Body Shop does not test its products on animals, its parent company L’Oréal does test on animals when required by law (such as in China). Another issue is the conflict between The Body Shop’s founder Anita Roddick and its current owner L’Oréal. Roddick was critical of L’Oréal’s practices (such as animal testing) and she accused L’Oréal of trying to “destroy” The Body Shop’s image.
6. The Body Shop in the United States of America
The Body Shop has a significant presence in the United States of America with more than 400 stores across the country. The first store opened in Boston in 1984. The company has been successful in the USA thanks to its focus on natural ingredients, ethical policies, and social responsibility. The Body Shop has also partnered with other companies such as schools and charities to help promote its brand
7. The social responsibility of The Body Shop
The Body Shop is known for its commitment to social responsibility. The company has supported causes such as human rights, environmental protection, and fair trade. In addition, The Body Shop has a foundation which donates money to charitable causes around the world. Thanks to its social responsibility initiatives, The Body Shop has won numerous awards including the Green Globe Award and the Ethical Corporation Award
Integrity is one of The Body Shop’s core values. This means that the company is honest and transparent in all its dealings with customers, employees, shareholders, suppliers, and partners. For example, The Body Shop is open about its use of natural ingredients and it does not test its products on animals. In addition, The Body Shop has strict guidelines on how its products can be advertised and marketed. This ensures that customers are not misled about what they are buying
The Body Shop is a cosmetics company that was founded in 1978