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Anita Roddick founded The Body Shop in 1976. Her aim was to sell homemade, naturally inspired products with minimal packaging. She started with one shop in Brighton selling 25 products. There are now 1900 outlets in 50 countries including 300 in the United Kingdom. In recent years The Body Shop experienced bad times but is now in shape. Last Christmas, the company went back into positive figures.
The Body Shop classes its market as masstige - prestige for the masses. It positions its products higher than those available from high street chemists but lower than designer goods. The customer base, although generally women in the 19-45 age bracket, encompasses a wide range of men, women, young and old. The Body Shop has about 300 stores in the UK. The average spend is £13 but at Christmas this will increase to £16. In the ten weeks before Christmas The company takes 50% of its yearly takings. 50-60% of sales at this time are gift packs.
The Body Shop works to five key values:
- Against animal testing - it doesn't test any of its products on animals and only buys ingredients from an approved list
- Support community trade - it trades with disadvantaged communities throughout the world. It provides these communities with a fair deal and regular income so that they can invest in education etc.
- Activate self-esteem - it tries hard to promote images of realistic people in its marketing so that everyone feels good about themselves.
- Defend human rights - it works with groups such as Amnesty International and runs campaigns against domestic violence etc.
- Protect our planet - it tries to use renewable energy to help combat global warming.
At one time the Body Shop had a lot of franchise stores in the organisation but these are gradually being bought back. There are now four styles of store in the group. They look slightly different but all link to The Body Shop. There is 'Shop Me' - each product range has its own clear, well-lit space with testers and detailed advice panels, 'Green Box' - the original The Body Shop fit with green wooden shelves, mirrored or coloured back drops and a green and white tiled floor, 'Store Revitalisation Programme' (SRP) - brighter stores, illuminate wall panels, wooden and olive tiled floor, light brown wooden shelves and 'New Store Concept' (NSC) - similar to the SRP with natural brown wooden wall panels and glass shelving. The White Rose store is an example of NSC. Each of the stores is also classed by size from extra small (Leeds station), through small and medium to large (Harrogate).
The company has worked with the fashion industry to produce designs of how the stores should look. They are known as perfect quarters and so the designs change four times per year. The designs are prescriptive and each store must be comply with them. Each store is given diagrams and photographs of how each area of the store should look, bearing in mind its style and size. The stores are visited to ensure that they have complied with directions.
The stock is ordered by automatic replenishment. That means that the Head Office is informed electronically via the computerised tills of what has been sold in each store. It knows what each store needs to keep stocks to the required level. The White Rose store receives its stock every Tuesday but during Christmas period it receives deliveries 3-4 times per week. It currently carries approximately 6-8 weeks stock.
Customer Service is a priority within the organisation. A mystery shopper visits the store once a quarter to check on standards of service. The company considers good customer service is about meeting a customer's needs and then exceeding them. The members of The Body Shop team are encouraged to look, feel and act the part by being friendly and approachable, passionate about the product, listening to the customer and helping them choose the products to meet their needs. The store's environment is important because it affects the customer. Staff consider all the senses. The store smells good because they burn one of their home fragrance oils, it sounds good because appropriate music is playing in the background, it looks clean and well stocked and the customers are led to feel inspired.
The Body Shop has Key Performance Indicators to measure success in store. As is usual there are sales targets but ATC (average transaction units - that is the number of items a customer buys) is also important - the store target is three units but staff are currently achieving sales of five units. The Body Shop also wants a high conversion rate which is the number of people entering the shop compared with the number of people purchasing something. Finally the organisation has a target to sign 7% of customers to have the Love your Body club card. This club is not a loyalty card but enables members to receive discounts on their purchases, enjoy special events and receive free gifts. Membership costs £5 per year.
The Body Shop Questions- What are The Body Shop's key values?
- What are the names of the different styles of The Body Shop stores?
- What is The Body Shop's definition of customer service?
- How does it provide good customer service?
- Why does The Body Shop want all of its stores to look alike?
- The Body Shop aims itself at the masstige market. Give examples companies who would be above and below them?
- Why do you think it is important to The Body Shop to promote self-esteem?
- Why does The Body Shop need to achieve a high conversion rate?
- Why may the Love your Body club increase sales?
- Why are The Body Shop products popular Christmas gifts?
- Design a display unit that would fit into one of the types of Body Shop store mentioned.
