The Body Shop Internaltional Plc Commerce Essay
Successful concern ventures go through the way into concern over the decennaries if non centuries to accomplish its ends and aims which The Body Shop International plc ( The Body Shop ) finds itself in such high respects. The laminitis of The Body Shop was Dame Anita Roddick from Littlehampton, an English seaboard town ( Dame Anita Roddick: The Body Shop International plc, 2012 ) . It had its really first mercantile establishment launched on 26th March 1976 in Brighton, on the south seashore of England ( Our History: The Body Shop International plc, 2012 ) .The Body Shop offers beauty merchandises that are original, natural and ethical beauty trade name ( Our Company: The Body Shop International plc, 2012 ) .
The Body Shop introduces new merchandises into the market with the usage of natural stuffs and ingredients which is just trade ( Support Community Fair Trade: The Body Shop International plc, 2012 ) . The Body Shop emphasises on positive societal and environmental through runs with five nucleus values of Activate Self Esteem, Protect Our Planet, Against Animal Testing, Support Community Trade and Defend Human Rights ( Our Valuess: The Body Shop International plc, 2012 ) .Harmonizing to ( About United states: The Body Shop International plc, 2012 ) its web site based indicates the desire for this trade name is to do the merchandises with love and attention that creates the motto of ‘Beauty with Heart ‘ .
The Body Shop offers comparatively high quality beauty merchandises in the market to run into consumer ‘s demands.
The specific aim of the concern venture is to place the internal and external factors that are favorable and unfavorable to accomplish aims. ( McDonald, Rogers, & A ; Woodburn, 2000, p. 148 ) suggested that ‘A SWOT is an analysis of your strength and failings compared to rivals and of the chances and dainties by a cardinal history ‘ .Strength – The Body Shop trade name itself holds a strong image in the market which good known for its beauty merchandises ( The Body Shop: The Body Shop International plc, 2012 ) . Natural ingredients are use to green goodss good quality and advanced merchandises.
We are the taking cardinal participant in the niche market where aiming and fulfilling demands of the clients. The Body Shop has a high trade name trueness from consumers due to the merchandise distinction.Failings – The Body Shop does non hold direct selling or advertisement section where there is no strong physical public consciousness. In the United Kingdom ( UK ) The Body Shop have little figure of retail shops in operation. The merchandises are either in the mature or diminution phase of the merchandise life rhythm due to high and low consumers demand. The franchise system has specific demand that cause job to pull new franchisee.Opportunities – The Body Shop merchandises are produce with natural stuff and ingredients that increased consciousness of organic and eco-friendly ( Protect The Planet: The Body Shop International plc, 2012 ) .
Today ‘s universe with advanced engineering of cyberspace, develop an online web site to increased figure of on-line purchasers ( The Body Shop UK: The Body Shop Interational plc, 2012 ) . Aging population has increased in the current market that The Body Shop could aim the ageing consumers who are willing to pass on merchandises claiming anti ageing belongingss.Treats – The Body Shop faces a immense turning competition within the beauty industry that offers similar merchandises. In the current harmful environment state of affairs that cause clime alteration and planetary heating will impact unstable supplies of natural stuffs. When UK faces fiscal crisis in the economic downswing, The Body Shop is in the status of decreased on gross revenues turnover in the overall market.
2.0 KEY PRODUCT
The cardinal merchandise of The Body Shop is Tea Tree Oil which chiefly for blemished tegument.
The usage of this merchandise will hold the consequence of soothing, has antibacterial belongingss and does non dry out teguments which can use straight to all skin type. ( Best Sellers: The Body Shop International plc, 2012 ) .
2.01 ENVIRONMENTAL VARIABLES
An administration, consumers or in general will carry on a market research that benefits the direction to better economic development. There are six environmental variables which is Political factors, Economic factors, Geographical factors, Cultural factors, Educational-Philosophical factors and Sociological factors use by administration direction to widen the selling research within a state. ( Loudon, 1975, p.
95 ) Tea Tree Oil considered looking into three environmental variables of Cultural factors, Economic factors and Political factors.Cultural factors – In every state have their ain civilization to larn and act upon by tradition that affect different perceptual experience towards other civilization. Tea Tree Oil is the cardinal merchandise of The Body Shop due to its natural belongingss where some states use as an ingredient in medicine redresss for mending. Some states may comprehend Tea Tree Oil as a common merchandise where some believe is a valuable merchandise.Economic factors – Economic factors plays an of import function for any concern industry where clients buying power and determination devising procedure is concern. Addition costs on natural stuffs that affect retail monetary value to increase.
Most consumers perceived Tea Tree Oil as a valuable merchandise because it uses natural ingredients. Tea Tree Oil could be marketed to any state due to its natural belongingss that can be use on any skin type.Political factors – The Body Shop construct relationship with providers from different state in order to acquire finest natural ingredients to bring forth Tea Tree Oil. Commit local authorities regulations and ordinance to import natural stuffs and ingredients from different state. In the current UK market faces recession that causes The Body Shop to confront unstable economic and political environment state of affairs. Tea Tree Oil is a good known merchandise in the universe for its natural belongingss.
02 PHYSIOLOGICAL VARIABLE
In physiological variable can be related to Maslow ‘s hierarchy of demands which include Physiological demands, Safety needs, Social needs, Esteem needs and Self-actualisation ( Shaw, Dibeehi, & A ; Walden, 2010, pp. 81-87 ) . The demands that influence Tea Tree Oil are Physiological demands, Safety needs and Social demands.Physiological needs – Physiological demands are the rudimentss of life. Tea Tree Oil is consumer ‘s basic demand on day-to-day use as a beauty merchandise or traditional medical specialty. Tea Tree Oil has a positive impact on consumers who are beauty witting.
It has its ability to mend lesions of course because human organic structure has the ability to absorb oil easy.Safety needs – Safety demands are most of import where consumers concern on merchandise safety which Tea Tree Oil is contact with tegument. Tea Tree Oil has gone through the production procedure of utilizing just trade natural ingredients and tested on human alternatively of animate being before its being marketed. The Body Shop good trained gross revenues helpers and merchandise label provides appropriate information about Tea Tree Oil to maintain the keeping and trueness of the consumers towards its merchandise and trade name.
Social needs – Sociable needs where clients and employees build relationship with each other to place the civilization and demands of clients to supply best services and information related to its merchandise. The Body Shop keeps promises of utilizing the natural stuffs and ingredients to bring forth good quality and advanced merchandises that will derive good connexion with clients. Tea Tree Oil itself has its ain ability to construct relationship with consumers with the positive responds and natural belongingss.
3.0 Selling Mix
Marketing mix is an indispensable theory for every merchandise or service provided in the concern industry. The Michael Porters 4 P ‘s theoretical account entails Product, Price, Place and Promotion which are more appropriate for touchable goods. In today ‘s universe selling mix has extended to 7 P ‘s with an extra of Peoples, Process and Physical Evidence that is used in the service industries. ( Borden, 1984, pp.
7-12 ) . In The Body Shop concern is involved in merchandises which marketing mix of 4 P ‘s is indispensable.Product – Tea Tree Oil is a cardinal merchandise which is organically adult beauty merchandise that has natural belongingss and safe to utilize in contact with tegument. Tea Tree Oil is made from extraction of oil from foliages of the Melaleuca alternifolia to organize the merchandise which is organic ( Wong, 2012 ) . Tea Tree Oil has a short life span due to natural ingredients without preservatives.Price – The current retail monetary value in shop are selling at ?7 a bottle of 10ml in the UK ( Best Sellers: The Body Shop International plc, 2012 ) . The monetary value of Tea Tree Oil is comparatively low compared to other rivals in the market.
Tea Tree Oil is in the medium monetary value scope among the merchandise in shop. The Body Shop Tea Tree Oil is considered as an low-cost merchandise with the natural belongingss.Place – The Body Shop is a business-to-consumer related administration that involve in the retail industry. Direct mark market of The Body Shop is on consumers. The distribution types that The Body Shop emphasises are the mix of intensive distribution and selective distribution. The Body Shop retail shops in the market run their concerns on a franchising footing ( Franchising: The Body Shop International plc, 2012 ) .
Promotion – The Body Shop are against publicity because there is no direct selling and advertisement section. We own a web site for clients to shop for information and purchase merchandises through online. All beauty merchandises in shop are organically grown for its natural belongingss. The Body Shop nucleus values of against animate being proving which protect animate being, cruelty-free and vegetarian ( Against Animal Testing: The Body Shop International plc, 2012 ) .
4.0 Selling Aim
Marketing aims are an administration desire to accomplish its mission and vision to bring forth more gross and market portion. ( Lamb, Hair, Jr.
, & A ; McDaniel, 2012, p. 39 ) commented that ‘A selling aims is a statement of what is to be accomplish through selling activities ‘ . It is indispensable of any administration to hold a selling aim in order to develop a selling program activity.
4.01 Smart Analysis
The Body Shop marketing aims can be set by utilizing SMART analysis to organize a selling program to spread out its roots to a foreign market ( Robinson, Wale, & A ; Dickson, 2010, p. 144 ) .
Specific – The Body Shop should specifically specify the purposes to accomplish in future with clear focal point on its aims and develop attacks that can be use to accomplish defined aims to derive important market portion.Measurable – The Body Shop should do certain that its aims can be measured and quantified in the concern operation.Accomplishable – The Body Shop should utilize the market cleavage to analyze in order to avoid puting unrealistic and unattainable marks.Realistic – The Body Shop should concentrate on its available resources such as financess, clip, natural stuffs and ingredients, machine and employees before puting its realistic mark to spread out.Timed – The Body Shop should do certain that its aims are timed sagely and calculate its gross revenues and net incomes in the long term period of clip.The aims been set by The Body Shop are smart and clip edge as we can turn out that The Body Shop presently still stand strongly in the market. We need to develop the visibleness of the trade name to make public consciousness.
Emphasiss against carnal testing in the foreign market that shows The Body Shop is cruelty-free and vegetarian. Widen the mark market to pull the leg of ‘s scope that is organic to review the image of the trade name. See to reenforce environmental policies by working merely with Community Fair Trade provider to maintain the trueness of the consumers. Obtain environmental enfranchisement to turn out to foreign market consumers that The Body Shop is in the concern of ethical trading.
5.0 THEORETICAL CONCEPTS OF GLOBALISATION PROCESS
In the globalization procedure is base on theoretical constructs which there is no specific definition.
Harmonizing to ( Bozyk, 2006, p. 1 ) the most of import portion of the research is ‘From the theoretical point of position, globalisation means an limitless entree to these markets for all interested concern regardless of state of beginning and economic parts. Globalisation is a free market to come in into any foreign market to get down a concern without any barriers.Another theory identified that globalization procedure involves compaction.
Harmonizing to ( Zajda, 2005, p. 614 ) the most of import portion of the research is ‘Compression makes the universe a individual topographic point by virtuousness of the power of a set of globally diffused thoughts that render social and cultural individualities and traditions irrelevant except within local contexts ‘ . Administration set aims that is standardise to suite the local market and foreign market.The Body Shop have no issues to come in into any foreign market due to its natural stuffs and ingredients being usage to bring forth merchandises. The Body Shop emphasises the nucleus values that brings positive impact to the foreign market with the organic and eco-friendly policies.
6.0 BEHAVIOURAL TRENDS AND PATTERNS
Today ‘s universe, consumer demands are broad that every administration is hard to perpetrate. Consumer purchasing behavior relates to the societal and civilization of the consumer determination doing procedure.
The tendencies and forms of the consumers are form base on the development behavior among a big population in the long term.The Body Shop consumers dickering power and buying power in the current market are strong that demands and outlooks are high. The foreign market tendencies and forms of the consumers are different from one another due to its societal life and civilization environment influences. The Body Shop looks into the tendencies and forms of a foreign market in order to aim the right market and achieve aims. Market cleavage plays an of import function to understand the foreign market tendencies and forms of the consumers. The Body Shop behavior focused groups that provide valuable information of the merchandises market credence.On the other manus, The Body Shop experience different perceptual experience and background of consumers in different state.
The tendencies and forms of consumers are dynamic which is hard to perpetrate. Consumer ‘s personal life style will act upon a trade name in the market if consumers are branding witting.
6.01 MACRO ENVIRONMENTAL FACTORS
Macro environmental factors which PESTEL analysis is a utile concern strategic tool to step and understand how The Body Shop market grows or diminution, place in the market, possible and way for its operations ( Yeates & A ; Wakefield, 2004, p. 265 ) . In any concern strategic determination doing procedure, the employment of PESTEL analysis can be use as a model.
Political and Legal factors – The Body Shop construct relationship with the Community Fair Trade providers for natural stuff and ingredient in different state ( Our Valuess: The Body Shop International plc, 2012 ) . Rules and ordinance of the local authorities in foreign market are different from one another. The Body Shop faces unstable economic and political environment when foreign market is in the recession period.
Economic – In the current market place consumer ‘s demand for good quality beauty merchandises due to climate alteration and unhealthy repasts cause skin jobs. The addition cost on natural stuffs and ingredients that affect the retail monetary value to increase due to high demand. Consumer buying power is influences by the disposable income of single clients.
Customers may comprehend The Body Shop as a luxury trade name in some foreign market.Socio-Cultural – The Body Shop consumers may switch to other beauty trade name which besides offers organic and eco-friendly merchandises. The Body Shop failed to wider the mark market to pamper and pull the leg of scope that is organic and natural ingredients for delicate tegument. Social media marketing such as Facebook and Twitter is developed to supply information and updates on merchandises to clients.Technology – The Body Shop uses societal media selling to advance trade name globally and make consciousness. The usage of natural stuffs and ingredients that form natural belongingss creates advanced merchandises. Establishing ‘Love Your Bodya„? ‘ card to make consumers retention with the rank privileges when usage in shop ( OUR LOVE YOUR BODYa„? CARD: The Body Shop International plc, 2012 ) .Environmental – Climate alteration and planetary heating will impact unstable supplies of natural stuffs and ingredients.
Emphasiss on the eco-friendly policy in order to salvage the female parent Earth ( Protect The Planet: The Body Shop International plc, 2012 ) .
7.0 INTERNATIONAL BUSINESS MANAGEMENT PROCESS
The procedure of internationalization concern direction can be explained that international concern intends to come in the planetary market in its earliest phase to increase the gross revenues and profitableness. Certain circumstance do do for alterations, such as the environment do take topographic point which will impact the internationalization procedure.
In houses which are successful in their internationalization procedure will last through the old experience being gained. ( Vahlne & A ; Nordstrom, 1993, p. 531 ) . There is different industry characteristic impacting the procedure of internationalization which is economic systems of graduated table, research and development strength, merchandise distinction, governmental policies and transit costs ( Vahlne & A ; Nordstrom, 1993, p. 532 ) .The Body Shop invests in the foreign market need to believe planetary and act locally in the market to fulfill the consumer ‘s demands.
The Body Shop needs to implement international concern direction procedure in order to spread out its roots to a foreign market successfully.
7.01 INTERNATIONAL HUMAN RESOURCE MANAGEMENT
International human resource direction is of import in the international concern operation. ( Briscoe, Schuler, & A ; Tarique, 2012 ) commented that ‘Broadly defined, the field of international human resource direction ( IHRM ) is the survey and application of all human resource direction activities as they impact the procedure of pull offing human resource in endeavor in the planetary environment ‘ .
The human resource policies and patterns need to implement to back up the planetary scheme in any international company.The Body Shop needs to larn the civilization of the foreign market in order to hold an appropriate human resource direction section. Learning and understanding the foreign market local civilization that brings positive impact to work and pass on with aliens
7.02 INTERNATIONAL Selling
International selling can be explained that local company takes the chance to put in the foreign market to derive important net incomes and market portion. There is no specific definition to international selling where most definitions of selling are acceptable. Harmonizing to ( Vasudeva, 2006, p.
5 ) commented that ‘marketing activities carried out by a seller in more than one state across national boundaries may be termed as international selling ‘ . Understanding of what selling is and how it operates in an international context will finish the survey of international selling.The Body Shop goes to international market will profit to the consumers who concern on beauty and organic merchandises. The Body Shop invest in the international market will bring forth more gross to the company that addition gross revenues turnover. Furthermore, deriving experience from foreign market in order to better company aims and schemes.
03 INTERNATIONAL LOGISTICS
International logistics definition is divided to international and logistic which it gives a different significance. ( Wood, Barone, Murphy, & A ; Wardlow, 2001, p. 1 ) commented that ‘International agencies that it will cover with minutess affecting persons or houses in more than one state ‘ . ( Wood, Barone, Murphy, & A ; Wardlow, 2001, p. 1 ) besides commented that ‘Logistics means the organized motion of goods, services and sometimes people ‘ . The combination of international logistics can be defined as local company invest in the international market and export goods across the boundary line. International logistics involves the purchasers, the Sellerss, the carries, the mediators or jobbers and sometimes the authorities.
The Body Shop involves in the international logistics where the purpose to spread out its roots to the foreign market that exporting goods and experience people to get down up the concern. As a consequence international logistics are dearly-won due to export responsibilities, revenue enhancements and other disbursals incurred when exporting.
The Body Shop is a successful company in the beauty industry where people, animate being and planet are concern. Natural stuffs and ingredients being usage to bring forth merchandises to salvage the female parent Earth with guaranteed good quality and safety merchandise. Through its good concern theoretical account that satisfied the consumer ‘s demand which keep consumers keeping and trueness.
The Body Shop objectives to accomplish with the engagement from employees will take to good repute that shows the accomplishment being met. The Body Shop objectives that have achieved will maximize the gross and employees efficiency of work public presentation.
9.0 REFERENCES AND BIBLIOGRAPHIES
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