Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code :ENT0019C

Year : 2006

Industry :Home Appliances and Personal Care Products

Region : USA

Teaching Note:Available

Structured Assignment :Not Available

Abstract: The Body Shop was the leading ethical cosmetics retailer in the UK. In 1999, it was voted the second most trusted brand in the UK by the Consumers Association. In 2004, it was selling ethically manufactured and sourced cosmetics, through 2000 stores across 50 countries with annual sales of £700 million.

The Body Shop was founded by Anita Roddick (Anita) in 1976 with a single shop selling about 15 hand mixed products. She opened the first shop in Brighton, Sussex, as a means of supporting herself and her children. Anita’s deep passion for human rights and environmental issues affected the way she ran her company and sourced her products. Soon, over the next three decades, the Body Shop grew into a global network selling more than 500 products. Her company introduced the benefits of natural ingredients such as jojoba oil, aloe vera, rhassoul mud and cocoa butter, which were hitherto unheard of in the cosmetic world.

But in the mid 1990s, the glory of the ‘green’ brand faded with accusations about the Body Shop concept being stolen from the US, its product claims that it contained natural ingredients and problems with its franchises. By 2004, the Body Shop was facing declining sales in its home market. The brand was losing its luster in a market that was flooded with competitors offering similar products at a much lower cost. A majority of the Body Shop’s outlets were owned by franchisees which left the company dependent on their performance