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Identification of internal factors analysis marketing essay

From the table, the opportunity on the Body Shop is the metro sexual factors which are the grooming products for male. Body Shop products are not only specific to the female consumer . One of this factor had been increase of the usage on grooming male products also it is represents that there were a high demand serve on this niche market. So that, the supply of this products is encourage to produce more in order to increase the overall sales on Body Shop products.

Product development are every of the companies wish to have on their products. This factor is included in the opportunity because of the Body Shop is keep producing a new products. All of the products that have been produce are wish to be in high quality. We weighted this factor at 0. 20 this is because we believe that this factor will be one of the important factors. We believe that the quality of product development will be either influence the consumer to keep purchase and attract more new customers to purchase on Body Shop product.

The Body Shop had been store in 61 Countries such as the first opening at UK, followed by Belgium, Austria, Greece and other. Body Shop has their opportunity to overseas expansion on its products. Whereas, it can be continuing to do an expansion to other country likes India which it can expanding their selling products in at different nations.

We believe that it is important to increase the awareness of organic and eco-friendly products. We place this factor under the opportunity this is because we strongly beliefs that it can be at high presence for each of the Body Shop’s product. This factor we weighted it with 0. 10 because this is the opportunity for the company to be protecting our earth and stop against animal testing. We rating this factor as 1. 60, this opportunity is consider as the strategy to the Body Shop.

2. 2 Threats

The intense on the strong competition across over to the all areas may bring a threat to the company. There would be the competitors of Body Shop such as L’Oreal, Maybelline, Olay, Nivea and etc. The stronger competition will affect the company survive may not stay longer in the cosmetic industry if the company failure to compete with the competitors. We strongly think that this factor is under the threat for the company because it is not the easy ways to grab their target market attention toward their existence. Therefore the weight 0. 2 which indicate it is the important for the company to notice their problem and with the rating of 3. 0 and needed the company to keep improving their marketing strategy so that I won’t be easily kick out from the cosmetic industry by the competitors.

Exchange rate will be the one factor to the threat of the company. The exchange rate which effect by the export and import prices. For example, if exchange Body Shop products sell at £2 exchange for RM2. 50 based on the foreign exchange rate, a UK selling their product for £20 in the UK will sell for RM25 in Malaysia. It there are the activities whereas the exchange rate now appreciated, it is means that £2 buys RM2. 60. UK will sell their products in RM26 . Let’s assumed that the demand on the products in the Malaysia is inelastic, and then it would be the good news to the UK exporters this is because the UK wills gains more on their revenues. Inversely, if the demand on the products in Malaysia is elastic, then it would be effect on damaging to the UK exporters.

There will be unstable supplies of the materials to produce on the Body Shop products. The lack supplies of the materials will affect the manufacturing on their products. Therefore, it will be difficulties on the company to face this problem. The quality of the products surely will lower if randomly choose other suppliers to substitute on the old suppliers. We weight this factors at 0. 10 and ranking at 1. 60 , even thought in small weight but still the company should prevent on this factor occurs and always in the preparation condition to face on this factors.

The total of the weight scores for Body Shop is 3. 29. Body Shop will exploiting on the opportunities and it might be a strong enough to the company to overcome the obstacles or threats that it may occur during the operational activities which we are not expected.

Internal Factors

Weight

Rating

Weighted Score

Comments

1

2

3

4

5

Strength

Viral marketing strategy

0. 15

3. 00

0. 45

Save cost & cost for advertising to community

Strong social responsibility

0. 25

4. 80

1. 20

Ethical & responsible to environment

Community trade program

0. 10

2. 50

0. 25

Fair trade with poor countries

Company reputation and brand equity

0. 25

4. 20

1. 05

High positioned

Weaknesses

Products apparent as expensive

0. 15

2. 00

0. 30

Pricing

Lack of celebrity to attract on young people

0. 10

1. 80

0. 18

Weak positioned

Total Scores

1. 00

3. 43

Table 2: Internal Factor analysis Summary (IFAS Table): Body Shop

2. 3 Strength

Viral Marketing Strategy that attracts most of the people look around the introduction of the company and purchasing their products with not included on the promotion cost while it is via by the internet accommodated. This strategy also can be said by word-of-mouth communication. We weighted this factor at 0. 15 and ranking with 3. 00 because we believe that this rate of spreading by this strategy may be practically fast and the rate of effectiveness would be also high. Body Shop is successfully made it by the viral marketing strategy. For example, the new Tea Tree products have been using this strategy stools in doing their promotion.

Body Shop has been regarded as one of the good example on strong social responsibility. Even though they no need support any of the activities but still Body Shop very actively supports on the groups of the environmental, whereas they involved with the social activities that they have their obligations to turn back the money within the any campaign that had been organizes by any parties. These social activities were to give assistance especially to the unfortunate communities and the campaigns organize on against the abuses of human rights. This factor was weighted at 0. 25 and the ranking as the highest at 4. 80. This is because on it would confidently be the strength of the company to ensure consumer or customers keep purchasing their products. It can be proved by the survey from Financial Times as the Body Shop was regarded as the 27th most esteemed company in the world.

The Body Shop has successful involved in the social program, there is Community Trade Program. This program is created to help a need of the communities in the world. The goals is to create a livelihoods and to approaches a better development by producing an ingredients either in the socially or economically that from the underdevelopment countries. This program would bring an educational and health that brings the benefits to any of the communities that involved. This program would like to gives a chance to the communities that involved in develop on their own ways. Also, the Body Shop customers can be freely expresses their own social views and base on their purchasing power. Body Shop is giving a good practice by this Community Trade Program on giving a people to have self-respect and provide them with a good job.

From the (IFAS) table, Company reputation and brand equity means the company had a good reputation and also branded which is the strength of the Body Shop. We believe that a company must have a good reputation in a newly born company or under a new environment. Therefore, we weighted this factor with 0. 25 which it is important for a company and with the second highest rating of 4. 30 to show that company reputation and brand equity will be the part important strength of the company.

2. 4 Weaknesses

The Body Shop products were apparent as expensive. Therefore we placed this factor as under the weaknesses because it allows the competitors to take from this as advantage. The competitors may be able to be put their products lowers than Body Shop products, which they wish the switch on customers move to purchase their products. We weighted this factor with 0. 15 because it is an important to the company to notice on this issue.

Lack of celebrity to attract young people refers that Body Shop should be concern on this problems. The Body Shop has signs up with celebrity esthetician Molly Walsh, Dia Mirza as India celebrity, Shalini Valdhera and etc. We weighted this factor as 0. 10 and the ranking with 1. 80 because we believe it is the problem face by the company. It is seem that there is lack of celebrity on promote their product4. Although, there were the celebrity but still seems it was lack on male celebrity on the Body Shop. The problem is reflected on the products because the sales would not be stable. In a nutshell, the Body Shop should improve their strategy so that it can attract more young people to purchase and in order to increase the sales of products.

The total weighted scores for (IFAS) is 3. 43 which indicate that the following weaknesses can be covered by the strength of the company. The internal position of the company is good to prevail over the weaknesses that they had faced. Thus, effective strategies are need such as increase promotional efforts, increase the quality of production and other. These strategies must be implemented by the internal organization so that the strengths of the company can overwhelm the weakness that occurred.

Celebrity Esthetician Molly Walsh at The Body Shop (25 February 2011). Retreived at 3 October 2012 from http://thelocaltourist. com/blog/local-tourist/celebrity-esthetician-molly-walsh-body-shop

Exchange Rate Policy (n. d). Retrieved at 14 October 2012 from http://www. economicsonline. co. uk/Managing_the_economy/Exchange_rate_policy. html

Fred. B, Scott. E, Carlos. M, Alton. S, and Ken. S (02 June 1999). Study of Corporate Social Responsibility. Retrieved at 3 October 2012 from http://www. stanford. edu/class/e297c/poverty_prejudice/citypoverty/hedge_poverty. htm

India Infoline News Services (04 May 2011). Retrieved at 3 October 2012 from http://www. indiainfoline. com/Markets/News/The-Body-Shop-signs-Dia-Mirza-as-Indias-celebrity-ambassador/5145947576

The Body Shop (n. d). Retrieved at 3 October 2012 from http://www. slideshare. net/kannupriya23/the-body-shop-3594407

Viral Marketing (4 July 2009). Retrieved at 3 October 2012 from http://viral-viral-marketing. blogspot. com/2009/07/viral-marketing-product-promotion. html

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