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Retail Marketing Case Study – The Body Shop and the Retail Marketing Mix

Extracts from this document...

Introduction

Retail Marketing Case Study - The Body Shop and the Retail Marketing Mix Technology and globalisation are the two largest and most significant influences on the world's economic landscape. Technology is the propelling force behind globalisation. Today's technology is extensive and rapidly progressing on a constant basis. This is inherent in the products widely available today. Satellites, VCRs, fax machines, e-mail, the internet, laptop computers, answering machines, photocopiers, digital watches, camcorders etc... All these would astonish even people who lived thirty years ago. The 'global village', as predicted by McLuhan, is now reality, Daniels & Radebaugh (1998:23). Marketing & Retailing "Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with others," Kotler (1994:6). Marketing can be explained as people satisfying their needs and wants through an exchange. Exchange is when a person acquires something they need or want from someone by sacrificing something in return. Therefore, it can be said that exchange is at the very heart of marketing, Baker (1990:189). "Retailing is... a very visible form of economic activity, and one that exerts a major influence upon the lives of customers... The marketing concept may be simply expressed as the identification and satisfaction of consumer needs and wants, at a profit," McGoldrick (1998:1). The Retail Marketing Mix Just as marketing has a marketing mix so does retailing. The retail marketing mix can be defined as: "...the total package of goods and services that a store offers for sale to the public. The retail mix, then, is the composite of all effort which was programmed by management and which embodies the adjustment of the retail store to its market environment," Lazar & Kelley (1961:237). The retail marketing mix is composed of three main dimensions: * Goods and service mix * Physical distribution mix * Communications mix Lazar & Kelley (1961:238). ...read more.

Middle

Clothing retailers commonly use this format for store layout as it encourages consumers to look around; they feel relaxed and not compelled to walk around every area of the store as forced by the grid pattern layout. However, it does have its drawbacks. It is usually more expensive to the retailer and uses up more space. If the set-up is not well planned, it may make the store look a little disorganised. A modification o the free-flow layout, the boutique layout, discussed by Rosenbloom (1981:67), is characterised by the fixtures being arranged according to speciality. For example, in a clothing retailer's store they might have one display made up of underwear, one made up of swimwear, one made up of sandals etc... This has the same drawbacks as the free-flow layout. Rosenbloom (1981:69) identifies five different display techniques: * Open Displays - characterised by surrounding the consumer with the products, it motivates consumers to browse. * Theme Displays - the theme can be picked from a wide variety e.g, festivals, local or national events, season etc... * Life-style Displays - these usually include pictures of a specific type of person who uses the product to target a certain segment of the market, often used in clothing stores. * Co-ordinated Displays - items which, are frequently used in conjunction with each other are placed together in displays. It often motivates consumers to buy related items from the same range. * Classification Dominance Displays - these are used to imply that the retailer provides a comprehensive range of a particular product; these can be arranged so that every type, colour, size etc... is displayed together. The Body Shop The Body Shop is a manufacturer and retailer of skin and hair care products based on natural ingredients. Based in the United Kingdom (UK) it is now an international company operating in 47 countries, spanning 24 languages. Now with 1594 stores worldwide the company employs over 4000 employees. ...read more.

Conclusion

The boutique layout can be said to be applied within the outlets of The Body Shop. Products are arranged according to their function: face, make-up, hair etc... and displayed within their own ranges in terms of scent, colour and skin type. The store layout encourages consumers to wonder around the shop without feeling pressured to look at every single product and range and gives the customer the feeling that they don't have to make up their mind then and there. Displays are arranged under the classification dominance method. This illustrates that The Body Shop provides a comprehensive range of each of its seven main product categories in a variety of sizes, types, colours, scents and skin types. The atmosphere and mood of typical Body Shop stores is relaxed and friendly, inherent in the overall design of The Body Shop retail outlets. SUMMARY The Body Shop produces and sells naturally-based cosmetics and toiletries products. The company offers an extensive range of products and varieties within each of the seven main product categories: aromatherapy, colourings (make-up), face, fragrance, body care and hair care in terms of size, types, colours, scents and skin types. The Body Shop products are priced within the mid-market range. Prices are from 60 pence to �10.95. The customer service provided by The Body Shop stores includes make-overs, facials, colour charting and educating customers about the products and their origins. The company closely considers its customers when deciding upon a new store location. The Body Shop outlets are not large enough to demand that facilities such as elevators and parking lots are required. The company makes extensive use of social marketing mainly through public relations. The Body Shop once said to have a rebel image, has an image of ethical, social and environmental responsibility: profits with principles. The Body Shop won an award in 19976 for their new store design. The new look is lighter, more contemporary and 'timeless.' The atmosphere and mood of the stores are relaxed and friendly. The above summarises the retail marketing mix of The Body Shop in accordance to the framework provided by Walters & White (1987:64). ...read more.

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