The cosmetics industry is one of the biggest industries in the world. The worldwide annual expenditure for cosmetics is estimated at U.S. $18 billion. There is strong global competition in this industry. To obtain a competitive advantage, companies need to invest a lot. They have to innovate constantly, and invest in advertising campaigns in order to be known and successful. The Body Shop decided to be different. Its products are natural, and it is an ethical organization, associated with environmental friendliness.
How does the Body Shop take part in the cosmetic industry? What are its vision and mission, and what strategic directions should be recommended to the Body Shop in order to perform successfully in this industry?
The cosmetics industry is a very aggressive and challenging market, in order to be more competitive and to gain market shares and customer loyalty, companies such as The Body Shop needs to understand their environment.
[...] - The organization should develop his customer loyalty programs all over the world. People like to be considerate as a specific customer and expect to have a “specific treatment”. The loyalty card encourages consumers to be loyal in order to receive presents and special offers. - They also could extend their services: Selling at home should be proposed in numerous countries. Customers love being the main interest of the companies. With this service they feel caring and have the feeling to have customized services. [...]
[...] They also should create and develop a friendly website where customers could see all of their range of products and buy them online. Question Financial and strategic objectives: Financial objectives: Outcomes focused on improving financial performance Achieve revenue growth of 10% per year This objective is important and it is achievable. Indeed, thanks to P. Gourmay they have reached very good performances in term of profits and sales. This objective will be the consequences of the new strategy implementation. It also will be the results of a better customer satisfaction and brand awareness. [...]
[...] This environment analysis permits us to understand the strategy of beauty brands as The Body Shop. To identify the importance of each components of the industry, it is necessary to quantify them. In the last column, O will represents “opportunity” however T will represent “threats”. Moreover, a number will be associated to see the impact of each element. PESTE model for the Body Shop After this analyse of the trends, components and driving forces of the industry, it is interesting to see the place of the competitors in the industry the competition: immediate industry and competitive environment In order to understand the dynamism of The Body Shop, we have to understand the competitive structure of the cosmetic industry. [...]
[...] In this campaign, they have to be different and to communicate about their natural products, that is to say their specific skills, their high quality and excellence. The campaign will be a campaign or a TV one, if the budget allows these expenditures. - As I said before, The Body Shop has to be customer oriented. They should realise a friendly website where customers will be able to see their range of products and services and where they would be able to buy online products. [...]
[...] The Body Shop is an organization with strong values and identity. The Body Shop was one of the first organization focuses on social responsibility and fair trade. The Body Shop offers natural cosmetics and personal care products. They have services as home selling and massages in their shops. With ageing of population and the importance of well being nowadays, customers have strong expectations in terms of quality and excellence. The sustainable development is a recent value in our society and customers expect companies as The Body Shop to respect it. [...]
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