1

Consumer behavior 4th Team

2

WhyThe Body Shop

1.Goal is not profit

2.They do not advertise ac-tively

3

Natural cosmetice company- High Quality Cosmetics- Reasonable Price

England Brighton in 1976

Soap, lotion from Natural Resources

Eco-friendly Products

2800 branches (66 countries)

L'oréal buyout in 2006

Anita Roddick(1942. 10~2007. 9)

The Body Shop

4

Support Fair Trade (community)

Against Animal Testing

Protect the Planet

Activate Self Esteem

Defend Human Rights

Five Values

5

What TBS do

Using ‘Episkin’ for the test

Using synthetic musk

Various Value cam-paign

6

Financial Statements (2013)

Statement of financial activities Total funds 2013

VOLUNTARY INCOME £ 759,123.00 ACTIVITIES FOR GENERATING FUNDS MERCHANDISING INCOME

£ 633,164.00

INVESTMENT INCOME £ 496.00

TOTAL INCOMING RESOURCES £ 1,392,783.00

RESOURCES EXPENDED COSTS OF GENERATING FUNDSFUNDRAISING COSTS/AWARENESS RAISING £ 110,644.00 MERCHANDISING COSTS £ 394,742.00

£ 505,386.00 CHARITABLE EXPENDITUREHUMAN RIGHTS £ 368,190.00 ANIMAL & ENVIRONMENTAL PROTECTION £ 306,630.00

GOVERNANCE COSTS £ 67,440.00

£ 742,260.00 (60% of Total resources expended) TOTAL RESOURCES EXPENDED £ 1,247,646.00

NET INCOMING RESOURCES FOR THE YEAR £ 145,137.00 FUND BALANCES BROUGHT FORWARD AT 1 MARCH 2012 £ 501,020.00 FUND BALANCES CARRIED FORWARD AT 28 FEBURARY 2013

£ 646,157.00

　 THEBODYSHOP Balance sheet 2013

Fixed asset

tangible asset 　 £ 5,714.00

Current assets 　 　

Debtor £ 210,987.00

　

Cash at bank and in hand £ 560,800.00

　

　 £ 771,787.00

　

Creditors : Amount falling due within on year-£ 94,144.00

　

Net current assets 　 £ 677,643.00

Total asset less current liabilities 　 £ 683,357.00

Creditors : Amount falling due after more than one year 　 -£ 37,200.00

Total assets 　 £ 646,157.00

FundsDesignated £ 266.00

Unrestricted £ 496,724.00

　 £ 496,990.00

restricted £ 149,167.00

Total funds £ 646,157.00

7

Why THEBODYSHOP

They are winner of the Retail Awards 2010 for “Most Admired Retailer of the Year83% OF The body shop’s REGULAR CUSTOMERS SAY THAT THEY CHOOSE RETAILERS WHO TAKE SO-CIAL AND ENVIRONMENTAL ISSUES SERIOUSLY. (THE BODY SHOP INTERNATIONAL PLC VALUES REPORT 2011)

8

Why THEBODYSHOP

High Brand equity with High customer loyalty

We want to know what TBS’ customer have values and atti-tudes.

We thought about that TBS’ values are no more niche, So How TBS can solve this situation.

9

Consumer Analysis1) Attitude, Perception,

2) Motivation 3) Low& High effort

10

Attitude

Understanding why the con-sumer feels the way they feel.

Our products within the com-pany and how consumer atti-tudes can be changed.

Influ-ence

Attitude are built up over a period of time

11

Perception

Displaying these natural colors

→Appear fresher and cleaner

12

Motivation

13

Attitude, Perception, Motivation

Attitudes

Motiva-tion

Percep-tion

Purchase/

repur-chase

Have feeling toward the company

positively /

negatively

14

Market Consumer Catego-rize

Low effort

• Brand loyalty

• Experience

• Unconscious stimuli

High ef-fort

• Product attributes

• Others evaluation

15

In nature cosmetic product market, consumers tend to be repurchase product. Because impor-tance of product is suitable for their skin.

Initially it is hard to be loyal consumer, once be-ing brand loyalty, The repurchase rate is very high.

In The Body Shop, bestseller named White Musk has big brand loyalty.

Low effort

16

MISSHA INNISFREE THEFACESHOP

Communication source

INNISFREE

Low effort

17

Classical condition-ing

Paired

Natural and Healthy Beauty

(UCS,CS)

UCS

CS

Low effort

18

Dual-mediation Hypothesis

Positive response to현빈 or value cam-paign

Belief about TBS innatural cosmetic product.

Positive attitude toward Ad of TBS

Positive attitudeToward The Body Shop

Intention to pur-chase

Low effort

19

High effort consumer

How TheBodyShop communicates with high effort con-sumers

Love Your Body Membership TheBodyShop commu-nity

(Korea)

Good Quality

20

High effort consumer – Equity The-ory

Benefits

Attributes

Cus-tomers

$Pur-

chaseReview

Discount Sale Sam-ple

OtherCon-

sumers

Good deal

Exposure

21

Limitation and Solution

22

The Body Shop Loss its key strength

→ To stress position of market leader & use advertisement actively

LIMITATIONS (1)

23

BRAND IMAGE PROMOTION PRODUCTS

SUGGESTIONS

24

LIMITATIONS (2)

 acquired By L’oreal in 2006

Image deterioration

No direct intervention&

Shareholder, not acquisition.

25

Q&A