Body Shop Brand: Repositioning to Target the 'Masstige' Segment and Impact of its Acquisition by L'Oréal
ICMR HOME | Case Studies Collection
Case Code : MKTG181
Case Length : 25 Pages
Period : 2000-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : The Body Shop International Plc.
Industry : Beauty care / Cosmetics
Countries : Europe, USA.
To download Body Shop Brand: Repositioning to Target the 'Masstige' Segment and Impact of its Acquisition by L'Oréal case study
(Case Code: MKTG181) click on the button below, and select the case from the list of available cases:
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges
» Marketing Case Studies
» Marketing Management Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Acquisition by L'oréal
On March 17, 2006, TBS announced that it had agreed to be taken over by L'Oréal in a £652 million (US1.14 billion) deal.
L'Oréal offered 300 pence a share, a premium of 34.2% to TBS's closing
price of 223.5 pence on February 21, 2006...
Have The Body Shop Sold Out?
TBS immediately came under fire as L'Oréal allegedly used
animal testing for cosmetics, something Roddick had opposed throughout her 30
years of business life. Critcs also alleged that L'Oréal exploited the sexuality
of women. They recalled Roddick's earlier criticism against L'Oréal for engaging
only sexy women in their stores. In a statement on its website, Naturewatch
said: "We feel that the Body Shop has 'sold out' and is not standing by its
principles." Ruth Rosselson (Rosselson) of Ethical Consumer magazine said, "It's
ironic that a company well known for its anti-animal testing stance should sell
out to one that tests on animals and which has yet to show its commitment to any
ethical issues at all."...
Body Shop's View
TBS clarified that the acquisition by L'Oréal would not diminish its ethical
stance and it would continue its animal testing policy. TBS spokesman Bill Eyres
said, "It has been agreed that all our values are ring-fenced and we will
continue to apply our animal testing policy."...
What does the Future Holds for The Body Shop Brand?
Both the companies had high hopes from the merger. L'Oréal was hoping
that TBS would help enhance its business. It felt that TBS with a
presence in 54 countries was a "sizeable and complementary brand", and
it would help L'Oréal to increase its presence in the "masstige"
segment. According to Euromonitor International's (Euromonitor) Briony
Davies, L'Oréal, which had lost its leadership in the global cosmetics
and toiletries market to P&G in 2005, had a lot to gain from the
acquisition of TBS...
Exhibit I: Awards Won by Anita Roddick
Exhibit II: Top Three Competitors of TBS
Exhibit III: Key Financials of TBS
Exhibit IV: TBS's Values
Exhibit V: TBS: Brand Statement
Exhibit VI: The TBS Logo
Exhibit VII: Views of the New Store Design
Exhibit VIII: TBS's 'Love Your Body' Card