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Brand Asset Management

2011 Lucerne University of Applied Sciences and Arts Design Management International, 5th semester Course: Brand Asset Management Tutor: Hans Kaspar Hugentobler Authors: Corinne Hofstetter, Vanessa Jenni

INDEX
INTRODUCTION 4 Brand Status Quo 4 Moodboard 6 Target Group 7 Competitors 8 Brand Maturity Model 9 BRAND IDENTITY 10 Brand Value Pyramid 12 Brand Contract 12 BRAND PORTFOLIO STRATEGY 13 Brand Portfolio 13 Product Examples 14 Portfolio Scope and Structure 15 Portfolio Roles 16 BRAND EXPERIENCE 17 Customer Touch Points 17 Brand Meaning Audit 18 Ethnographic Research 19 Impressions 20 Quotes & Insights 21 Relation to Meaning Category 22 BRAND ASSETS 23 BRAND EXTENSION 25 CONCLUSION 27

INTRODUCTION Brand Status Quo


Logo

Company Name Facts & Figures


The Body Shop (International plc)

Headquarters: Littlehampton, West Sussex, England Founded in 1976 by Dame Anita Roddick Over 2500 stores in 61 countries Global manufacturer and retailer of naturally inspired, ethically produced beauty and cosmetic products Second largest cosmetic franchise in the world Part of L Oral corporate group

Products Values

Wide range of naturally inspired ethically produced cosmetics and toiletry products

INTRODUCTION Brand Status Quo


Heritage
In the early 1970s Anita Roddick visited a shop in Berkeley, California that sold naturally scented soaps and lotions called The Body Shop . The Berkeley Body Shop run by Peggy Short and Jane Saunders used natural ingredients, and helped to employ and train immigrant women. Roddick was inspired by the idea and opened the first Body Shop store in the UK in 1976 (the naming rights were purchased in the late 80s by Roddick) with the aim of making an income for herself and her two daughters while her husband was working in South America. The idea behind The Body Shop was to offer high quality skin care products in refillable bottles and sample sizes, all marketed through truth rather than hype. In the late 80s The Body Shop put more focus on social and environmental campaigns to promote their business. A global campaign was launched in 1997 to raise womens self-esteem and take action against the medias stereotyping of women. The Ruby doll was portrayed as an Anti-Barbie and was created to promote awareness of the rising numbers in bulimia and anorexia. In 2006 the company was bought by L Oreal, which led to a lot of controversy since L Oreal is involved in animal testing and is part-owned by Nestle which has been criticized for their treatment of their third world producers. Roddick defended this decision by stating that by selling her business she could have an impact on the decision process of the company.

Vision

I just want The Body Shop to be the best, most breathlessly exciting company and one that changes the way business is carried out. That is my vision. Anita Roddick. Human Rights Activist. Founder of The Body Shop.

Positioning

The Body Shop is positioned in the segment between mass and premium, which they describe as masstige somewhere between prestige and the mass market. The pricing is relatively high due to the ethical branding.

INTRODUCTION Moodboard

INTRODUCTION Target Group


Description
The Body Shop has a wide range of customers including women and a small portion of men from middle to upper class. They consist mainly of people who buy organic products and are supporting many causes (e.g. charity work in the third world). Their main target audience are 20-55 year old women who care about The Body Shop products and their ingredients.

Brand Persona

Based on the research conducted the following Brand Persona for The Body Shop was defined: Lily is 29 years old and is a junior editor in a publishing agency in Zurich. She lives in a 3,5 room apartment with her best friend and enjoys living in the city. Despite living in the city she spends a large amount of time outdoors and when she needs a break from her hectic lifestyle she likes to go to the mountains. She just started paragliding and has become addicted to the sport and tries to go every weekend if the weather allows it. Since she spends a lot of time outdoors she tries to take extra care to her skin by using good quality products. Lily would rather spend more money on a product when she knows how it was produced and what ingredients it contains. She loves spending times in small stores where she can talk to the sales person and receive advice on different products. This saves time and she has enough information to choose the best possible product.

INTRODUCTION Competitors
The Body Shops biggest competitors are retailers focusing on natural beauty products such as Lush, Yves Rocher and Aveda. While Lush and Yves Rocher both sell their products in their own shops across Switzerland, Aveda sells their products in the common retail trade and in their own Aveda Spa Salons. As The Body Shop is a well-established brand with a long history and people trust its products, new competitors are struggling to enter the market. However, the large niche business that once grew rapidly now finds itself in a critical moment. Many competitors seem much more agile and more willing to take risks in both product development as well as with customer experience. Lushs growth rate was much faster than that of The Body Shop during the same stage of development and Lush certainly has a high potential to increase their market share. Another competitor is Maybelline New York, despite not being an obvious threat to The Body Shop the brand is starting to promote itself as being against animal testing and emphasizing on environmental protection. This company is well-known in the cosmetics industry and could become a strong competitor in the future. Botanical beauty Beauty products that use the regenerative power of plants, its vital energy, its resistance and its longevity

Fresh Handmade Cosmetics Products are made with fresh biological fruits and vegetables, the best natural oils and safe synthetic ingredients

The Art and Science of Pure Flower and Plant Essences manufactures professional plant-based hair care, skin care, makeup and lifestyle products

Natural Products, Maybe Shes born with it, maybe its Maybelline Relates packaging to paper or organic ingredients, by using non-chemical constituents that could get through the cosmetics legist ration. Promotion through upgrading the brand image by being against animal testing, emphasizing on environmental protection and celebrity influence

INTRODUCTION Brand Maturity Model


The Body Shop is positioned at Level 6 Mature Brand Company of the Brand maturity Models by Cseng Lim1. Brand management and development have become very strong within The Body Shop and branding has a high influence on all decisions made by the organization. Previous research has shown that The Body Shops marketing actions are all based on its clearly communicated values. This strategy aims to foster trust and loyalty between the customer and the brand. As The Body Shop has a first mover advantage and thus has managed to create a clear positioning in the minds of the target customers before competition entered the market, high brand awareness and trust towards the brand are ensured. Customers tend to identify highly with The Body Shops products and share the values of the company relating to issues such as eco-friendliness and sustainability. The Body Shops good financial performance is strongly connected to its brand loyal customers.

1 http://www.brandchannel.com/papers_review.asp?sp_id=1218

BRAND IDENTITY
Brand Essence Core Identity
The beauty of nature.

Well-being The Body Shop sells beauty products that enhance peoples natural beauty and expresses their unique personalities, as they believe that true beauty comes from confidence, vitality and inner wellbeing. Environment The Body Shop ensures that their business is ecologically sustainable and meets the needs of the present without compromising the future. Fair Trade A code of conduct is adopted which ensures care, honesty, fairness and respect towards the local, national and international communities in which The Body Shop trades. Charity The Body Shop is very passionate about defending human rights and being against animal testing. This is why The Body Shop has its own foundation, a charitable trust which seeks out innovative projects working for social and environmental change, to which they make an annual donation.

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BRAND IDENTITY
Extended Identity
Accessibility Due to the wide distribution of The Body Shops shops, customers have easy access to the same lines of products worldwide. Social Change By raising funds through their foundation The Body Shop also raises global awareness to domestic violence and HIV/AIDS. They remain dedicated to their mission to campaign for human and civil rights as well as environmental protection across the globe. Symbols Different shades of green are used as corporate colours. The connection to nature is also shown in The Body Shops logo as a plant-like symbol forming the letter O .

Value Proposition

Functional Benefit Innovative products for the body, face, hair and home. Emotional benefit Protecting our planet and the people who depend on it. Supporting charity work. Self-expressive benefit Enhance beauty and express personality. Feel and do good.

Relationship

Providing eco-friendly and sustainably produced products that make customers look and feel good.

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BRAND IDENTITY
Brand Value Pyramid

Brand Contract
The Body Shop promises to do the following:

Beliefs and Values

save the planet be generous do something good (donations)

Offer the customers the opportunity to support charity work by buying beauty products (part of the price is donated) Support the customers to protect the environment in combination with a modern lifestyle Make the customers feel better about themselves

Benefits

feel good express individuality enhance beauty be hygienic

Let the customers express their individuality by making them feel and look good

Features & Attributes

high quality fair prices easily available worldwide nice shop-design eco-friendly sustainably produced innovative products for the body, face, hair and home variety of product lines

Provide the customers with innovative high quality eco-friendly and natural products at a fair price Offer various products for the body, face, hair and home for every taste in nicely designed shops all over the world

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BRAND PORTFOLIO STRATEGY Brand Portfolio

The Body Shop


women skin (face) care men face care infant bath & body home fragrance The Body Shop Foundation

bath & body

hair & body

hair

hair

eau de toilette

accessories

make-up

acccessories

fragrance

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BRAND PORTFOLIO STRATEGY Product Examples

Accessories

Eau de toilette and parfum

Body

Body cleansers

Makeup

Aromatherapy and massage

Mens hair and body

Burners

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BRAND PORTFOLIO STRATEGY Portfolio Scope and Structure


Portfolio Scope and Structure
The portfolio scope of The Body Shop consists of four different product categories (women, men, baby, home fragrance) and one service (The Body Shop Foundation). Each one of these product categories consists of several sub-categories. The womens product category is the most important and also most popular category. Men, baby and home fragrance are not yet as established but are certainly becoming more important day by day. The Body Shops portfolio is not easy to understand at first sight as they do not have any subbrands. The products are sold with a monolithic approach, this means that the name The Body Shop is used on all products offered by the organization. Additionally to this brand, the products carry their own product name which describes what they are (e.g. The Body Shop Passion Fruit Cleansing Gel , The Body Shop Banana Shampoo or The Body Shop Liquid Eyeliner). The website does not offer a clear structure nor is the relationship between the different brands explained. However, the products in the shops are clearly organized in the different product categories.

Product Defining Roles

The Body Shop acts as a master brand as it is the primary indicator of offering. The Body Shop foundation is categorized as an endorser brand as it represents the organization, specifically its strategy, values and heritage. It supports the other brands by providing credibility and making the brand more trustworthy. The categories women, men, baby and home fragrance act as umbrella brands. They all belong to The Body Shop master brand. Skin (face) care, bath & body, hair etc. are categorized as descriptors as they describe the offering in functional terms but are not specific brands.

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BRAND PORTFOLIO STRATEGY Portfolio Roles


Portfolio Roles
Master Brand - The Body Shop Cash Cows - skin (face) care - bath & body Strategic Brand/ Silver Bullet Brand - men Branded energizer - The Body Shop Foundation

Womens products are sold under the classic The Body Shop master brand. The womens lines skin (face) care and the bath & body products, specifically the lip care and body butter, are already established brands which are frequently bought and trusted by a loyal customer base. Only little investment is needed to maintain these cash cow brands. Its generated margin resources are used to support The Body Shops strategic, silver bullet and flanker brands. The Body Shops mens line is considered as a strategic brand, specifically a future power brand. This brand is currently a small emerging brand, but it aims to target a specific market segment that is becoming important in the future as future trends indicate that men become more interested in beauty products. Additionally, it can be seen as a silver bullet brand as it influences the overall perception of The Body Shop brand positively by proving that The Body Shop is able to adapt to changing customer needs. The Body Shop foundation is the Body Shops charitable trust which supports innovative projects across the world working for social and environmental change. It is a branded energizer which is funded by an annual donation from the company and through various fund-raising initiatives. It is an instrument that is often used to communicate The Body Shops core values and by its association it significantly enhances The Body Shop brand.

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BRAND EXPERIENCE Customer Touch Points


Pre-purchase Experience Purchase Experience Post-purchase Experience

Website Media (e.g. TV-documentaries) PR Charity Work Make-up courses Word of mouth

Consultancy Store Design Displays Packaging Online-shop Delivery Price Selection Love your body card Euro26 card (discount)

Product quality Customer service Newsletter Social media

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BRAND EXPERIENCE Brand Meaning Audit


Everyday Ethnography Brand Iconography

The Body Shop products serve to fulfil one basic need of humanity - being hygienic.

The Body Shop high-quality products are very hands-on products which can be experienced by each customer. The Body Shop is very consistent throughout its brand design, specifically the communication of their values.

Moral Geography

The Body Shop customers are a specific group of people who care about the environment. Their goal is to save the planet. The Body Shop unites these people through The Body Shop Foundation. This is a place where people can discuss innovative projects that are taking place across the world and work towards social and environmental change.

Semiotic Choreography

The Body Shop aims at selling products which expresses the users individuality. The user is able to identify strongly with the brand and clean his conscience by donating to a good cause such as charity work, protection of the environment, fighting child work and human trafficking.

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BRAND EXPERIENCE Ethnographic Research


Research Plan
Research objectives Understanding how people perceive The Body Shop and what they associate with the organization. Find out the brands meaning. Target group The Body Shop customers and non-customers, all age groups, male and female Research methods Observations (field notes, photos) Qualitative interviews

Questionnaire

What comes to mind when you think about The Body Shop? How do you know the brand? Do you ever buy stuff there? Why? Why not? Do you like their products? How do you rate their cost/performance ratio? What do you associate with the brand? Do you believe them when they talk about their values? What do you know about their history?

Follow up questions Based on the first question of what the user associates with The Body Shop the following attributes will be mentioned: Environmental awareness High quality products Social responsibility High prices Attractiveness of products (refers to nice scents, product range and packaging Anti-animal testing

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BRAND EXPERIENCE Impressions

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BRAND EXPERIENCE Quotes & Insights


Quotes
I actually quite like them, especially the shop design. Its so cozy and natural. Its a nice brand that is concerned about the world and its well-being. But there are at least 20 stores in every city which makes the brand a bit boring and not very exiting. The Body Shop is everywhere. Im really against animal-testing. I would never use a product which was made this way. I know they use a lot of natural ingredients in their products. They are very green! All they talk about is how much they care about the environment. They have a big responsibility. I also like that they make donations. For instance, if I buy a certain product, a percentage of the price goes to a charity. I think their products are really good. The ones Ive bought so far were good quality and lasted a long time. I often buy presents there but I wouldnt really buy anything for myself. They are just a bit too expensive for me. I think their prices are justified, as everything is so natural.

Insights

The overall image of the Body Shop is good. The constant presence of their cohesive shop layout and design makes the brand seem rather ordinary.

Customers appreciate that The Body Shop cares about the environment. However anti-animal testing is rated as a higher influence for potential customers.

The Body Shop sells high-quality products. Quality is the reason a customer will choose to purchase at The Body Shop rather than at a different store. The Body Shops products are often bought for special occasions (e.g. presents) and less for daily use. The rather high prices are perceived as fair due to their engagement for the environment and against animal testing.

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BRAND EXPERIENCE Relation to Meaning Category


Everyday Ethnography
I think their products are really good. The ones Ive bought so far were good quality and lasted a long time. Insight: The Body Shop sells high-quality products. Quality is the reason a customer will choose to purchase at The Body Shop rather than at a different store.

Brand Iconography
I actually quite like them, especially the shop design. Its so cozy and natural. Insight: The overall image of the Body Shop is good. The constant presence of their cohesive shop layout and design makes the brand seem rather ordinary.

Moral Geography
Im really against animal-testing. I would never use a product which was made this way. I know they use a lot of natural ingredients in their products. They are very green! All they talk about is how much they care about the environment. They have a big responsibility. Insight: Customers appreciate that The Body Shop cares about the environment. However antianimal testing is rated as a higher influence for potential customers. Nevertheless the high prices are perceived as fair due to their engagement for the environment and against animal testing.

Semiotic Choreography
I also like that they make donations. For instance, if I buy a certain product, a percentage of the price goes to a charity. Insight: The Body Shops products are often bought for special occasions (e.g. presents) and less for daily use.

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BRAND ASSETS
The Body Shop targets a niche market - the one of natural beauty products. By stating that they are not testing their products on animals and by appearing to have an ecological profile, they have appealed to customers with ethical issues. Additionally, their other values such as the defence of human rights or the support of community trade are appreciated by many of its customers and another factor that one decides to buy at The Body Shop. Compared to their competitors they have a very high brand awareness that gives them an advantage in the market. The company is committed to being an environmentally responsible retailer and is greatly dependent on its brand reputation. The brand logo is well-known and the signature dark green colour that symbolizes the companys recycling and sustainability efforts is used in each store. Based on interviews conducted a main reason customers choose The Body Shop over other stores is that they do not use animal testing for their products. This is an asset for the brand since this is an important factor in differentiating themselves from their competitors. In the future the brand should put more emphasis on this experience. The Body Shop could go back to its roots by creating a brand experience that reflects the founder Anita Roddicks activism and build a platform that makes the customer feel as if they are taking part in a giant campaign for social justice. All of the above mentioned information adds to the fact that the focus of the brand is placed on internal factors such as the identity of the brand and the corporate values. The brand identity is communicated clearly in their shops, in their campaigns and on their website. It is important that the employees embrace and reflect these values in order to gain customers trust. In conclusion the brand should keep focusing on their commitment to the environment, as this is their main brand asset and should be communicated as such.

The politicism of The Body Shop has always been its DNA the shops became our billboards Dame Anita Roddick, founder of The Body Shop

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BRAND ASSETS

SOCIAL VALUES
Communicating the brands value is key for The Body Shop brand. The brand should maintain this strategy as The Body Shop is well-known worldwide.

CORPORATE VALUES

BRAND VALUES

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BRAND EXTENSION
The Body Shop is a strong brand. It is directly associated with its values and they are the main focus of the company. For this reason a horizontal extension is suggested in order to initiate growth. There is currently no need to enhance the brand image through vertical extension. The brand can be extended horizontally in order to make use of the current values and extend the current product range.

Concept 1 - Stronger venture into the home accessories area

As the brand stands for ethical trading, it could easily stretch into green issues. A stronger venture into the home accessories area by sourcing from communities with rich culture and thereby preserving their ethnicity and providing them with a means of livelihood would a an opportunity. Implications Brand portfolio & architecture: extension of the brand portfolio by giving the new product line a specific name Brand values & contract: besides being able to contribute something good to the environment by buying consumer goods such as shampoo, the customer would in turn receive a more durable item but still be able to support The Body Shop and their causes. Brand meaning: Everyday ethnography - Besides fulfilling the basic need for hygiene, The Body Shop would move into the living area. Brand name & symbol: The Body Shop remains the brand name for the extensions. The logo will still be placed on all products to ensure the link to The Body Shop. Brand maturity level: no implications

Concept 2 - Stronger customer participation

Another opportunity could be the aspect of focusing on the interaction between the employees and the customers. Already the staff is an important part of The Body shop brand. They act as spokespeople of the brand and represent their values. By offering a charity card customers would be able to participate in different campaigns and charity work and therefore play an active part in helping with The Body Shops causes. As a reward the helping customer could receive a discount at the store or be able to choose from a variety of special product offerings. Implications Brand portfolio & architecture: no implications Brand values & contract: besides being able to contribute something good to the environment by buying products, customers could contribute to a good cause by physically helping out where help is needed (charity work, campaign). For the customers, the feeling of doing something good for the world would thus be stronger. Brand meaning: Moral geography - This brand meaning is reinforced. The customers could experience more confidence. Brand name & symbol: no implications Brand maturity level: no implications

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BRAND EXTENSION
Concept 3 - Product extension for men
The Body Shops mens product line is currently rather limited. As men are becoming more conscious about their appearance, The Body Shop could horizontally extend its brand by extending the mens product line. An obstacle to overcome would be the attraction of potential male customers. As the brand is perceived as more of a women dominated area The Body Shop would have to focus on areas that also concern men such as growth treatments for balding men, shaving creams etc. To help sell the products additional male cosmeticians could be hired as a male customer might feel more comfortable talking to a male than to a female employee. Implications Brand portfolio & architecture: extension of the brand portfolio by giving the new product line a specific name Brand values & contract: men would feel more addressed by The Body Shop and feel more confident to do their shopping Brand meaning: Everyday ethnography - The Body Shop would address men in their daily life more strongly. Brand name & symbol: The Body Shop remains the brand name for the extensions. The logo will still be placed on all products to ensure the link to The Body Shop. Brand maturity level: no implications

Concept 4 - Add channels

The brand represents an ethical, environment-friendly world view. For consumers who share this point of view, this is strong enough to prefer The Body Shop products across a host of categories. However, based on the research conducted the target group of 15-24 year olds opt to choose a different brand over The Body Shop. The company should focus on this group and highlight the product quality. One way of making this target group aware of the brand and its products is by offering it in department stores or malls where these customers go. By having a more convenient location customers are able to compare The Body Shop cosmetics directly with the competition. In Switzerland this has already begun with the sales of The Body Shop products in Coop, the countries second largest retailer. Implications Brand portfolio & architecture: no implications Brand values & contract: The brand might loose its authenticity as The Body Shop products are more easily acquirable. Brand meaning: Brand iconography - The Body Shop might not be able to communicate their values as strongly as in one of their own shops if their products are sold beside many other brands Brand name & symbol: no implications Brand maturity level: no implications

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CONCLUSION
The analysis of The Body Shop brand has been very interesting as we were able to apply key principles of brand asset management to a real brand. It revealed that The Body Shop has many well developed brand assets the most important ones being their values which are strongly communicated not only in their shops, but also with communication instruments such as their website and campaigns. These values derive directly from Anita Roddick, who was the founder of The Body Shop. She played an important role to shape the brand the way it currently is. Additionally, the high quality products are a strong asset which further differentiate The Body Shop from its competition. The Body Shop has many opportunities of how to extend its brand. The analysis has shown that extending horizontally by entering new product markets would be the most promising strategy. Even though The Body Shop is already a very well known and popular brand, they need to find new innovative ways of doing business to compete in a highly competitive market.

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