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The Body shop Essay

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Below is an essay on "The Body shop" from Anti Essays, your source for research papers, essays, and term paper examples.

Comparing to the cosmetic industry standard, The Body Shop was a fast growing company during the 80’s focusing on a niche market. The Body Shop has strong brand image developed by its founder, Anita Roddick, who had emphasized on several global and environmental concerns. During her years, she had been a role model and had a substantial influence on her company. She had a control over and had to be involved in every level of The Body Shop from management to store employees. It is crucial to incorporate the brand philosophy into every employee, but as the business expands, it becomes more difficult for one person to do such things. However, stockholders and the whole company seemed to have no worry, as long as the company is profitable.

The Body Shop differentiated itself as an alternative choice with exotic natural ingredients and environmental concern attracting a growing niche of customers. With almost no other competitor for this market at the late 70’s, The Body Shop was the only cosmetic that served the market needs. It then became a marketing advantage as it developed a strong relationship with customers and the unique brand image made them feel that they are different by using The Body Shop products, and satisfying customers spread out the words.

Although The Body Shop is targeting toward a niche segment, I will use the whole cosmetic industry to analyze five forces as it is a dynamic that cosmetic consumers will shop around and tend to not stay with only one brand. Therefore, the barrier to entry is low. Although it requires some capital to invest, cosmetic is a high margin product with a large amount of demand, less strict government control and low customer switching cost. A company may not have to invest on manufacturing facilities as it can just subcontract with existing manufacturers in the industry to develop a product under a particular brand. Major costs in cosmetic industry are advertising and packaging. In addition, it is not difficult to...

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