The Bodyshop Case

CASE STUDIES

The Body Shop case study

Retaining core business practices after a takeover

DATAMONITOR VIEW

CATALYST

Reference Code: CSCM0114 Publication Date: March 2007

When L'Oreal acquired The Body Shop in March 2006, critics were skeptical that the company could maintain its ethical business under such as global player. However, The Body Shop has increased sales and store numbers under its new owners, while retaining its ethical focus, enhancing its global marketing efforts by utilizing L'Oreal's substantial marketing budgets.

SUMMARY

• The Body Shop has defied the critics by achieving further growth under L'Oreal, increasing sales and its global store numbers. The company has utilized L'Oreal funding to increase its masstige image, refurbishing existing stores to be more upscale, while also focusing on growth in emerging markets such as India.

• By operating independently under the L'Oreal wing, The Body Shop has retained its ethical focus, continuing to campaign for human rights such as children affected by domestic violence. L'Oreal has also used the company to learn about more ethical business practices, such as The Body Shop style community trading programs.

• The Body Shop's marketing has traditionally focused on humor to attract consumer attention, raising issues such as body image in a comical way. Recent marketing has been represented more seriously, such as a partnership with MTV to promote HIV. The campaign was promoted through a new spray in Body Shop stores, as well as Spray To Change Attitudes marketing on the MTV channel.

The Body Shop case study CSCM0114/ Published 03/2007 © Datamonitor. This brief is a licensed product and is not to be photocopied Page 1

The Body Shop case study

ANALYSIS

Purchase by L'Oreal enhances The Body Shop's global positioning

The Body Shop defies critics by increasing sales under L'Oreal

When L'Oreal purchased The Body Shop in March 2006 for US$1.2 billion, many critics were sceptical that the...