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Abstract

The iconic British Beauty and Personal care retailer ‘The Body Shop’ had set a fresh approach towards its Indian market. It had chalked out an aggressive business expansion plan by leveraging on its brand recall to get closer to its Indian consumers as India was its key market. The company wanted the ‘The Body Shop’ to be the most accessible foreign brand to Indian consumers and to be the one-stop beauty shop for them. It had aimed for a ten fold increase in growth rate by 2014 targeting around 15 million people living in India's tier two and three cities. It had also planned to add 100 new locations by 2012, launch eco-conscious products, improve packaging etc to escalate its business. But the Indian Beauty and Personal care market was undergoing dynamic changes and had become aggressively competitive with arrival of more brands in quick succession. To beat the competition, The Body Shop had taken the strategic business decision of reducing its product prices by 35% to improve consumer base and scale up revenues. It was optimistic that the price adjustment would have a positive impact upon the sales volumes and would generate good profits. But the experts had pointed that The Body Shop was expanding at the cost of the parent company L'Oreal, which was facing the risk of reducing profit margins over the years. Besides, the increased entry of foreign brands and imports had made the Beauty care industry a tough battleground to fight for their market share. Will The Body Shop be successful in having a profitable leadership in the Indian Beauty and Personal care market with its new strategic moves?
Location:
Other setting(s):
2010, 2011

About

Abstract

The iconic British Beauty and Personal care retailer ‘The Body Shop’ had set a fresh approach towards its Indian market. It had chalked out an aggressive business expansion plan by leveraging on its brand recall to get closer to its Indian consumers as India was its key market. The company wanted the ‘The Body Shop’ to be the most accessible foreign brand to Indian consumers and to be the one-stop beauty shop for them. It had aimed for a ten fold increase in growth rate by 2014 targeting around 15 million people living in India's tier two and three cities. It had also planned to add 100 new locations by 2012, launch eco-conscious products, improve packaging etc to escalate its business. But the Indian Beauty and Personal care market was undergoing dynamic changes and had become aggressively competitive with arrival of more brands in quick succession. To beat the competition, The Body Shop had taken the strategic business decision of reducing its product prices by 35% to improve consumer base and scale up revenues. It was optimistic that the price adjustment would have a positive impact upon the sales volumes and would generate good profits. But the experts had pointed that The Body Shop was expanding at the cost of the parent company L'Oreal, which was facing the risk of reducing profit margins over the years. Besides, the increased entry of foreign brands and imports had made the Beauty care industry a tough battleground to fight for their market share. Will The Body Shop be successful in having a profitable leadership in the Indian Beauty and Personal care market with its new strategic moves?

Settings

Location:
Other setting(s):
2010, 2011

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