Usage and Attitude Study: Bath and Shower Category with focus on The Body Shop

Presented by Neha Shinde MGB12CMM086 Group 16

Agenda

Overview of my research Research methodology Primary data analysis Observational research Interviews with Industry experts Impact of acquisition by LOral Marketing efforts in the region Managerial recommendations
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Research objectives
To study consumer segments based on their psychographic needs and behavioral attributes in the bath and shower category To understand the various value propositions and unique features offered by The Body Shop To identify potential growth areas for The Body Shop in this category To study the impact on the image of The Body Shop after it has been taken over by LOral

The Body Shop An overview

Retail brand in the personal care industry Beauty with Heart Vicarious marketing Corporate Social Responsibilities Five core values that they practice and preach

Research Methodology

Analysis of secondary data Discussion guide and content analysis Primary data collection Factor and Cluster analysis Qualitative research on the impact of Acquisition Observational research Interviews with Industry experts Convenient sampling Sample size 121 respondents
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Primary data analysis

Factor analysis on the attitude battery Bathing and shower habits Cluster analysis to segment the respondents on psychographics 3 distinct clusters formed

Cluster 1 The Variety Seekers

Pleasure - seeking
1 0.8 0.6 0.4

Routine

0.2 0 -0.2 -0.4 -0.6

Habitual

C1

Experimental

Aesthetic attraction

Planner
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Cluster 1 The Variety Seekers

Age
0% 0%
<15 years 16-25 years 26-35 years

Nationality

0%

13%

13%

13%
Emirati Expat Arab Expat Asian

29%

58%

36-45 years

46-55 years
>55 years

40%

34%

Westener

Cluster 1 The Variety Seekers

Monthly Income Usage

8% 8% 18% 8% 11% 3% 18% 5% 21%

<10,000 10,000 - 15,000 15,001 - 20,000 20,001 - 25,000 25,001 - 30,000 30,001 - 35,000 35,001 - 40,000 40,001 - 45,000 > 45,000

42%

42%

Shower gel alone Bath soap alone Both

16%

Cluster 1 The Variety Seekers

Monthly expenditure Visits to per month malls

3% 3% 10% 29%
<10 11-20 21-30 Usually never 1-3 times

3%

10% 26%

13%

4-6 times
7-9 times 9-11 times

32% 26%

31-40
>40

45%
12 times and above

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Cluster 1 The Variety Seekers

Perception for The Body Shop
Innovative
7

Variety offered

6 5 4 3

Familiar

Knowledgeable staff

2 1 0

Eco Friendly

Ambience

Easily accessible

Price

Quality of the product

Sales promotions
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Cluster 1 The Variety Seekers

39 respondents 33% 63% know the brand but do not use its products Important expected attributes: suitable for skin type and lathering followed by color, texture and good packaging Brand image The Body Shop does not offer variety and innovation Frequent mall visitors
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Cluster 2 Potential Brand Loyalists

Pleasure - seeking
0.5 0.4 0.3 0.2 0.1

Routine

0 -0.1 -0.2 -0.3 -0.4 -0.5

Habitual

C2

Experimental

Aesthetic attraction

Planner
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Cluster 2 Potential Brand Loyalists

Age Nationality

0% 0%
19% 43% 17% 17%

<15 years
16-25 years 26-35 years 36-45 years

23%
Emirati Expat Arab

6% 54%

Expat Asian

46-55 years
>55 years

Westener

21%

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Cluster 2 Potential Brand Loyalists

Monthly income Usage

9%

<10,000

19%

9%

10,000 - 15,000
15,001 - 20,000 20,001 - 25,000

37% 50% 13%

13%
19% 6% 15% 6% 4%

25,001 - 30,000 30,001 - 35,000 35,001 - 40,000 40,001 - 45,000 > 45,000

Shower gels alone Bath soap alone Both

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Cluster 2 Potential Brand Loyalists

Monthly expenditure Visits per month to malls

6% 9% 33%
<10 11-20 21-30 31-40

2% 10% 19%

2%

Usually never 1-3 times

34%

4-6 times 7-9 times 9-11 times

33% 19%

>40

33%
12 times and above

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Cluster 2 Potential Brand Loyalists

Perception for The Body Shop
Innovative Variety offered
10 9 8 7 6 5 4 3 2 1 0

Familiar

Knowledgeable staff

Eco Friendly
Series1

Ambience

Easily accessible

Price

Quality of the product

Sales promotions
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Cluster 2 Potential Brand Loyalists

Almost 51% know the brand but do not use its products Important expected attributes: texture, suitable for skin type and lathering followed by good packaging Brand image does not synchronize with the brand perception the marketers create for the brand Mainly buy from supermarkets

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Cluster 3 Compulsive Bathers

Pleasure - seeking
0.6 0.4 0.2 0 -0.2 -0.4 -0.6 -0.8 -1 -1.2 C3

Routine

Habitual

Experimental

Aesthetic attraction

Planner
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Cluster 3 Compulsive Bathers

Age Nationality

0% 0% 13%
<15 years

16%

13%

16-25 years

26%

Emirati Expat Arab Expat Asian

45%

26-35 years 36-45 years

46-55 years

39%

19%

Westener

29%

>55 years

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Cluster 3 Compulsive Bathers

Monthly income Usage

3% 3% 7%
<10,000 10,000 - 15,000

14%
20% 13% 30%

15,001 - 20,000 20,001 - 25,000 25,001 - 30,000 30,001 - 35,000

16%

29%

55%

Shower gels alone Bath soap alone Both

10%

0%

35,001 - 40,000 40,001 - 45,000 > 45,000

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Cluster 3 Compulsive Bathers

Monthly expenditure Visits per month to malls

3%

0% 0%
<10

Usually never 1-3 times

29% 36%

19% 29% 13%

11-20 21-30 31-40 >40

4-6 times 7-9 times 9-11 times

19% 13%

39%
12 times and above

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Cluster 3 Compulsive Bathers

Perception for The Body Shop
Innovative Variety offered
2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0

Familiar

Knowledgeable staff

Eco Friendly
Series1

Ambience

Easily accessible

Price Sales promotions

Quality of the product

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Cluster 3 Compulsive Bathers

Almost 52% know the brand but do not use its products Important expected attributes: color, texture and suitable for skin type Brand image The Body Shop is expensive but does not have innovative products Usually buy from supermarkets and groceries

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Target Variety seekers

Young buyers aged 16-35 Not price-conscious as long as they get what they want Brand image of The Body Shop does not match the perception its marketers want to create Diluted brand identity Main issue of concern: The attributes that are key strengths of The Body Shop not communicated effectively in this region Eco-friendliness as a product attribute is not very important to these buyers
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Interview with Industry experts

Asra Iftekari Head of Marketing Operations, Paris Gallery Fragrances are very important in this geography Cultural sensitivity need to be very alert and careful It is not about what I say to them, but what they ultimately hear. Consumers not really loyal to a brand Revitalization of products
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Interview with Industry experts

Surekha Dsouza, General Manager of Marketing Operations and Nicola Fineran, Assistant Marketing Operations Manager at Al Tayer Group Focus on color cosmetics and fragrances No discounts!

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Interview with Industry experts

New visuals need to be created for this market for advertising No bare legs and shoulders No low cuts Saudis find dogs offensive Demos of make-up may have to be in separate enclosures within the retail stores No sexual connotations in advertising materials Make-up artistes cannot be males
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Marketing efforts in the region

Print ad in the UK

The same print ad in the UAE

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Impact of Acquisition LOral on The Body Shops image

March 2006 - 562 million Win-win situation The acquisition attracted great speculation and criticism

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Qualitative analysis
25 frequent users of The Body Shop and expert interviews None of them were aware of the acquisition Buyers tend to extrapolate the image they have of LOral in terms of product attributes to The Body Shop Some said they will continue to buy from The Body Shop and other will not

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Qualitative analysis

The Body Shop is losing its competitive positioning. What The Body Shop does is all marketing blah blah. They are not doing anything that will make them relevant to consumers. Many do not care about organic products. All they care about is the effect. LOral killed it. Its image is very diluted now to me.

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Key managerial recommendations for Variety Seekers

Immediate steps to be taken

Increase consumer engagement in the brand Make brand presence active online tailored to the

needs of buyers here Communicate what already exists brand attributes such as product aesthetics, quality and advantages (effect) that are important factors for buyers to purchase shower gels and soaps Facebook, blogs, Twitter and YouTube
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Key managerial recommendations for Variety Seekers

Long-term recommendations
Cultural sensitivity and relevance in the region Maintain separate brand identity from LOral but

leverage their marketing expertise within the region Create a different value proposition for buyers in this region natural and mild alone will not yield profitability in this category Product innovations into variety of fragrances within shower gels Arabic scents Product revitalizations
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Key performance indicators for Immediate Action Plan

Engagement and reach through likes, shares, tweets etc. Social page views Unique and repeat visitors Online purchases and sales at the retail outlets conversion Depth and duration of visits on the website

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Return on Investment for the Immediate action plan

Consider outsourcing management of online presence for The Body Shop to a Social Media Agency charge of Dhs. 5,000 per month Variety seekers 33% of the women population in UAE = 33% * 25% * 9 million = approx. 750,000 If the initial efforts get even 250,000 women to purchase from The Body Shop => Dhs. 10 million worth of revenues per month (Price of shower gel = Dhs. 40) Rough calculations to indicate the gravity of small investment in social media platforms
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Marketing efforts in the region

Pulse store The Heartbeat of the Community Experiential marketing Advent into color cosmetics 9.1% profit jump in 2012 with brand revamp Proactive digital marketing team

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Thank you

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