INTRODUCTION TO MARKETING - MKT 201

EXAM I - FALL 2020

Total Marks: 100 points Duration: 50 Minutes

INSTRUCTIONS

1. This is a CLOSED book, copybook and notes exam. In other words, you
are NOT allowed to use any outside sources to solve the case.
2. You are not allowed to use the internet or any form of communication
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outside help will be considered cheating and appropriate measures will be
taken accordingly.
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duration of the exam. If the camera is OFF, you’ll get a zero.
4. The exam duration is 50 minutes. NO Exam submissions will be accepted
after 7:00pm taking into consideration power cuts, internet issue and or
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6. Please type your answers on THIS Word File and save it as (Your name
+ Exam I) and submit it to Blackboard under “Exam I Submission”.
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8. Answer in Bullet Points and explain your analysis in details.

NAME: ___________________________ STUDENT ID: _________________________

Statement to be signed by the student:

Signed:______________________________________
 The Body Shop

The Body Shop International Limited is a British skin care, perfume, and cosmetic company. It
operates in the cosmetic industry retailing and producing ethically-made natural beauty products. It
offers body care and bath products such as body cleansers, body scrubs, moisturizers, lip care, and
fragrance. The company is headquartered at Croydon, London, and operates in about 66 nations
through concessions, online shops, and stores. According to Mintel (2018), the Body Shop has
over 2,500 stores globally.

In 2017, it recorded €1.5 billion in sales with an operating profit of -38.2% (€34 million). The
brand was experiencing some difficulties under the ownership of L’Oréal. Before 2016, the
company was recording about 4.9% year-on-year decline in total sales and for that reason, it was
sold to Natural Cosmetics (Mintel, 2018). To increase its market share, the company started
opening concessions stores in Spain’s El Corte Ingles store chains. Lately, the Body Shop
launched the Makeup Brushes, their new bamboo brushes which are vegan, cruelty free.

1. Identify and discuss the marketing orientation/concept that the body shop adopts. Explain
your answer. (20 points)
2. The product-market expansion grid is a useful device in identifying growth opportunities.
a. Please describe how the product/market grid expansion was used by the Body Shop.
(20 points)
b. Provide an example and explain how the body shop can use diversification as a
strategy. (15 points)
3. Explain how the Body Shop can be affected by Micro-environmental (suppliers, customers,
publics, company, intermediaries) and Macro-environmental factors (natural, demographic,
political, and technological) whether positively or negatively. (45 points).

Good Luck

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 The Body Shop
Name : ___________________________
ID: ___________________________
Section : ___________________________

Please use the Space below to write your answers:

Market orientation is a marketing approach wherein the processes of product development and creation
are focused on satisfying the needs of consumers.

Marketing orientation is the business approach that dictates all the processes within that organization. It
comes in several types: sales orientation, market orientation, production orientation, and societal
orientation.

Market orientation offers several advantages, including product differentiation and increased consumer
satisfaction.

The case explains the market orientation in sales social orientation by opening stores in spain and they
also used the production orientation in marketing by having Makeup Brushes, their new bamboo brushes
which are vegan, cruelty free.thus they used more than type in their marketing

The Product Market Expansion Grid is a type that used to develop business growth by
examining the relation between new and old exited products in a new and exsited there is
different strategies for that market development,diversification and product
development.The market development is used by creating growth into new current products
to new markets that market is identified as wanting to expand in market reach thus in our
case the body shop opened in spain with other sdtore to expand its market by having new
principle of distributing channels allow the offering of products to new costumers and for the
productdevelopment strategy is like a tactic for a growth used introducing products in

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market by having the new brushes that are vegan in body shop store that is based on the
costumers need

2-b For the diversification stratrgy is used by new products introduced in the market for example the new
brushes that are vegan that are introduced in the market of spain the company undergoing diversification
offer advantages because it can rely on other we have different type of diversification we have the
concentric diversification that works on the diversify the current products into the new market the
horizontal diversification is related to the introduction of products that are unrelated to existing market and
the conglomerate diversification is purchasing another company inorder to diversify and in our case here in
the body shop I think they used 2 types the concentric and conglomerate they used the concentric by
introducing a new market their current products and for the conglomerate they used the new store in spain
to promote their own products and diversify liking cooperating with other company.

3 -Marketing environment refers to external forces and factors affects the company in different ways for
micro environment it is a close company that will be affected in both ways it allow the cr4eation of values
and relations with costumers marketing success will require supppielrs depsrmtnets for company
costu,merrs competitors and various publics mircor surrounds organixation by nature and company has
elements to control it some of which may affect the enviroent of micro are the suppliers of body dhop is at
some point they didn’t have the chace to give the real time products, the intermediearies the costumers if
they didn’t buy or trust the company thecompetitors

The suppielrs work as an important point in delivering products and affecting the market of the company
they must watch supply of availability and cost supply shortage or delat will damage the relation with
constumers for the intermediaries the company got help to be promoted sell , distribute the final buyers the
product it will include retailers, wholesalers, physical distribution firms, financial intermediaries.
Physical distribution firms help the company to stock and move goods from their point of origin
to their destination. Today’s marketers recognize the importance of working with the
intermediaries as partners rather than simply channels through which they can sell their product.
Also for the competitors The marketing states that the company must provide greater customer
value and satisfaction than the competitors do. They can gain strategic advantage by strongly
offering against competitors offerings in thec minds of consumers. As, large firms dominant
positions in an industry can use certain strategies which the smaller firm cannot afford. But being
larger is not enough. There are winning strategies for large firms, but there are losing one. For the
costumers they are the most important part they work or aim of the e3ntire delivering system is to
serve the target customers and create thef strong relationship with them.

MACRO ENVIRONMENT\

It consist of broader forces that shape oppurtanities and threat to the company and there are six
major forces in the marco environment which are DEMOGRAPHIC ENVIRONMENT which refers to
the level of population growth, age, sex, education patterns, family influences ECOdNOMIC
ENVIRONMENT Economic environment comprises the nature of economic system of the country,
the structural anatomy of the economy, the economic policieds of the government, the nature of

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factor endowmernt and markets. NATURAL ENVIRONMENT The pghysical and geographical
factors can play a predominant role in constituting the non-economic environment and thereby
affecting the business. The application of emodern technology leads to rapid economsic growth at
a huge social cost deterioration of the physical environgment i.e. air pollution, noise pollution, and
water pdollution. The nature of such costs idfs being assessed by biologcists, ecologists, and
sociologist. TECHNOLOGICAL ENVIRfONMENT where Technology shapes the future of eany
society. Marketer must watch the changes in the technology for keeping trafck of competition and
customer wants. In the modern world, the pace of technological changes is very fast.
Technodlogical environment influence work at the organization in terms of investment in
technology