Body Shop : Its reach in USA
"Body shop has been one of the fastest growing brands in the United States when it comes to the cosmetic industry. The company has been registering profits in the North American market over the past few years. The US operation of Body shop was sold to the Bellamy retails, but was later bought back in the year 2001; this was a period wherein the company went through a lot of restructuring to adapt to the growing demand of the world market. The company showcased major growth owing to the natural ingredients that were used in the products. Body shop has been following the policy of giving out franchises and has around two hundred and fifty franchisees in the North American continent.
The company has been following a period of consolation in the American market. There has been a new found thrust on the cosmetic products for men, which has been the direct result of the growth of the changes in the demographic and psychographic setup. The company has recently introduced a slew of products to attract the ubersexual male by promising a completely natural and hassle free way to look good; the pricing strategy of the company has been variable. At certain places, the company has been adopting the policy of premium pricing due to the use of the exotic products. But recent competition has forced the company to adopt the cost cutting strategy, which is in concordance with the increasing competition from the market.
The promotional policy looks at various means if promoting the product, the most favoured being celebrity and magazine commercials; this is also an attempt by the company to retain and work on its image of exclusivity the use of the natural products is also another attempt at differentiation. The company faces stiff competition from a number of competitors. The principal competitors of the company in the North American market include Bath and Body works. The company has been coming out with innovative products to capture the market. The profits for last fiscal in the US market increased by only about sixteen percent. The company is also looking at the prospect of launching an extended range of the products to overcome these problems. It also faces a host of issues which are concerned to its commitments outside the marketing sector and has a lot to do with its commitment to social cause. Despite all these problems, the company is looking forward to making more people beautiful by expanding its current business. "