Research Topics: The Body Shop

The Success of Body Shop

Introduction             There is success in body care.  Behold the Body Shop, one of the famous international cosmetics brand.  It is not just one’s ordinary shop for body or hair care.  It is extraordinary just as its pioneer.  The entrepreneur assessed in this paper is in no way or another connected to me.    Personal Profile      The name behind the Body Shop, a famous cosmetic line for decades now, is Anita Roddick.  On October 23, 1942 in Littlehampton, Sussex, England marks her birth to an immigrant Italian family.  After completing her degree at the Newton Park College of education, she worked as a part-time teacher and for the United Nations in Geneva.  She traveled to different places like Tahiti, New Hebrides, New Caledonia, Reunion, Madagascar, Mauritius, Australia, and Johannesburg.  Her fascination with the women she encountered in these places became an episodic event in her life.  It later formulated her tale of success.  As stated in Lessem and Palsule (1999), she was mesmerized by the organic products that women in the Polynesian islands use to nurture their bodies.  Then, she went back to England and married a Scotsman poet and traveler named Gordon Roddick in 1971.  Five years later, the Body Shop was born.  The Body Shop started out in the same area where Roddick grew up.  It was just a small shop painted with green.  Its products were just placed in little recycled bottles while its labels were just handwritten.  All of which was to lessen production costs.  Through the years, the body care business developed hand in hand with political causes.  Dame Roddick, as how she is referred to now, has been acclaimed for many things.  She has been London’s Business Woman of the Year in 1985.  She has received an Order of the British Empire in 1988.  In 1988, she has been the Communicator of the Year, and Retailer of the Year.  She has been the United Nation’s “Global 500” Environmental award.  On the other hand, the Body Shop brand has been regarded as the second most trusted brand in the UK according to the Consumers Association.  As said by the 1997 Interbrand survey criteria, it is known to be the top 28 brand in the world, and ranks second in the retail sector.  The International Chief Executives in the Financial Times conducted a survey in 1998 and found Body Shop to be the 27th most respected company in the world (The Body Shop International. Available at [http://www.thebodyshopinternational.com/web/tbsgl/about.jsp]. [Accessed 30/05/2006]).  The Body Shop is aged 30 this year, 2006.  From a small and simple shop, it has grown into a multinational company, though she prefers Body Shop to be described as “global.”  It operates in 50 countries with over 1, 900 outlets.  Indeed, the Body Shop has gone global, cutting across various cultures.  That is how far it has gone.  Recently, the Body Shop entered in an agreement with L’Oreal for its take over.  The deal is reported to be worth ₤652 only.  Founder and major stockholders Anita and Gordon Roddick, who still own 18% of its stock, are likely to receive ₤130M from the said agreement (British Broadcasting Company. Available at [http://news.bbc.co.uk/2/hi/business/4815776.stm]. [Accessed at 31/05/2006]).    Successful Factor             What does it take to become a successful entrepreneur?  In Dame Anita Roddick’s case, what are the factors that lead for her and her business’ success?  Success is measured according to sales growth, income, employment trends and satisfaction Solymossy (2000).              The reason why she came back to England while traveling Africa was because she was asked to by the English officials after finding out that that she did not do what a white is supposed to do in a black country.  Years later, she made use of her encounter to open a “body shop.”  Opening a shop that satisfies the need of nurturing the body out of indigenous science refers to the risk that Dame Roddick has taken.  Indeed, it is interesting to note that she risked selling products, inspired by ethnic body rituals, among her fellow Westerners, being the consumers.  She risked selling alternative body care products.  Nevertheless, she dealt with it with optimism.              In order to face success, it is of crucial importance to think of the ways by which the business model will thrive in the marketplace.  Another is to assess the strengths and opportunities of the business.  Lastly, it is always important to innovate, as this has always described entrepreneurs (Baghai, Coley, and White, 2000).              Innovations are proven to increase the business’ performance.  During Christmas last year, upon launching a new product, i.e. a strong Christmas gift range, and improving customer services, operating profits from the division boosted to 17% to ₤11.7 million (Geary, 2005).  This is a recent event in the innovation strategies of Body Shop.              Schumpeter (1939), as cited in Mintrom, Schneider and Teske (1995), asserts that an entrepreneur functions to innovate, which means devising new production function out of the existing factors of production.   In simpler terms, an entrepreneur is one who introduces a new product or a product that deviates from the ordinary.  Such is the basic idea or definition of an entrepreneur from which its modern definitions have developed.              Apart from the above, there is something about the packaging of the Body Shop products.  Roddick started with small bottles since that was what she was complaining on.  According to Kassaye and Verma (1992), lesser materials should be use to produce smaller, thinner and lighter packages.  This is one of the ways by which a company can minimize packaging costs, and at the same time, maintaining products to be in line with “green”.  Supporting the environment is ensconced in the Body Shop from the very beginning.  Years later, as the Body Shop grew larger and larger, Roddick combined principles with profit.              Jones’ (2005) article entitled “Good Deeds for Business Success” speak for itself.  In the case of Roddick, she sells body products through the Body Shop while supporting local community trade in Third World Countries.              Personality has much to say in defining Roddick’s success.  Taylor (1988) discusses 8 characteristics of women entrepreneurs, but in this case, three of which pertinently describe the subject of study.  Introducing naturally made cosmetics speak for her creativity and capacity to innovate.  She is confident enough to sell her body products in the market.  And, she is driven by autonomy.              In Roddick’s eyes, Body Shop succeeded because of two reasons.  Economic survival of her family, especially during its beginnings, was a primary driving factor; and, the passion to establish a shop of her own and to engage in trading was the other (Lessem and Palsule, 1999).  She therefore succeeded not because of a capitalist goal, which is profit.  What she did was she thought of ways to survive in the market.  She did not dream of a big shop.  The shop eventually did.    Critically Appraisal Business Domain and Products Life Cycle             The Body Shop is known for its cosmetic products that are naturally made and environment-friendly.  Struck by the body rituals among the women in the Polynesian islands, Dame Roddick made sure that the kinds of cosmetics that her shop sells are made naturally.  Moreover, in this present age, this is what Body Shop offers still to its customers.  Likewise, having roamed the corners of the world, Dame Roddick is able to acquire knowledge on the various natural products that different women across the globe use.  If we are to make a careful scrutiny of the products sold at the Body Shop, then we will see the different products with different functions that are composed of ingredients that come from different countries.  Examples of which are the following: sesame seed from Nicaragua, shea butter from Ghana, coco milk, mangoes, strawberries, etc.  Thus, if I am a shopper who passes by the Body Shop and get to see these products, then, no wonder, I will exactly feel the same fascination that Dame Roddick felt decades ago.  All of these natural products are sold in all 50 countries where it exists.    Target Customers Selected and Why             Body Shop, as the brand implies, deal with the body.  However, it is not mainly concerned with making the body merely to be beautiful as what most cosmetics pledge to do.  When we think of cosmetics, the immediate implication is that it pertains to beauty products and therefore, for women.  On the contrary, is it only for women?  In this present time, women and men alike undergo vanity rituals.  Caring for the body is not just a female activity.  It is an activity that males today look into.  It is for individuals, male and female alike across various age brackets and social or cultural groups, who are geared towards nurturing their bodies.               Anita Roddick did not really start the Body Shop with an intense will to have women being her primary target customers.  Rather, she created a venture with innovative products driven by the desire to own a shop of her own and the determination to survive.    Unique Selling Point             Lowson (2002) says that differentiation deals with offering uniqueness.  Being different implies being unique.  This is not the function of a particular entity in the organization, but the entire organization as a whole. Value is placed either on the product or the service or in both cases.  In order to attain competitive advantage, he suggests focusing on the value that customers seek as the operations strategy.  This can be done by looking at the quality, reliability, variety, features, services, location, delivery, after sales support, etc.  According to Aldrich and Fiol (1994), as cited in Shepherd (2003), cognitive legitimacy works simply through what is/are being signified in a particular sign or symbols.  What makes the Body Shop unique?  On the one hand, it deviates from its fellow cosmetics line with regard to its advertisements.  It never made use of famous celebrities nor supermodels to endorse its products.  Furthermore, the characteristics that its models posses are far from the stereotypical model or from the Western standards.  If we are to access the Body Shop International’s website, as cited in this paper, we will find out that these models are black.  From this we can derive that the pioneer of Body Shop ventures into something that is more than just business.  There is politics behind.  The cosmetic business is bound by principle.  According to Glancey and McQuaid (2000), two essential factors make Body Shop to be distinct.  First, the value of integrity defines its interaction with its customers, staff and suppliers.  Second, it is the intense environmentalist philosophy of the business.  Body Shop products are known for being naturally-made and environment-friendly.  Thus, both the product and service compose Body Shop’s competitive advantage.              Mintrom, Schneider, and Teske (1995) define an entrepreneur in relation to two essential aspects.  First, entrepreneurs are determined to engage in risky actions in order to come up with new prospects.  Second, they have the ability to organize or harmonize the actions of other people or the individuals around them in order to see their goals fulfilled.  Shepherd (2003) has concluded in his study on cognitive legitimacy that customers opt to have knowledge on the products and the culture within and the operation strategies of a newly opened enterprise.  He has found this to be essential and beneficial for the company.              This analysis on the Body Shop’s unique selling points shows that it actually overlaps with its competitive advantage.  Its unique selling points define its competitive advantage.   Critical Success Factor The organizational belief that Anita Roddick wants the Body Shop to live by is essential for the business’ performance.  Body Shop has grown into a multinational company.  However, in Roddick’s perspective, she preferred her shop to be described as “global.”  She believes that a global company functions because of values, whereas multinational ones “just trade.”  Profit is not merely the motive of business.  To be a “live, vibrant, and honorable” organization is what she believes as the function of business (Lessem and Palsule, 1999).  The Body Shop’s organizational beliefs are strong, as they are strongly believed by its pioneers, both Anita and Gordon Roddick.  They would even want to work with people or hire employees that share the same principle as theirs.    Strategy Taken and Market Share It is very clear in the beginning which path will Body Shop traverse.   The identity that it possesses is that its products are made for a cause, i.e. social and environmental justice, while of course, keeping that its products are marked with quality and excellence.  According to the Body Shop Retail Sales report, the total sales worldwide boosted by 7% to ₤772 million (Body Shop International. Available at [http://www.thebodyshopinternational.com/epages/wizard/images/CLIENT81146811462054_lg.pdf] [Accessed at 05/30/2006].  With the growing market capacities of the Far East Asian region, international brands like Body Shop will definitely create big.  It is reported that Body Shop stores in the Asia Pacific region, particularly in Southeast Asia, Hong Kong and Taiwan, increase its sales by 12% while operating profits to ₤19.7 million (Geary, 2005).  American-born Peter Saunders, who is responsible for Body Shop’s operations in the United States of America, has devised a way to sell Body Shop products.  In 2002, shoppers do not just go to its chains just to buy its products, because the Body Shop products themselves are the ones that go to the American homes.  Surprisingly, the results are promising.  Saunders has predicted a 35% profit in operations.  He comments, “You simply cannot underestimate the significance of being able to spend two hours with customers in their own homes…  It doesn’t cannibalize sore sales, in fact it bring in a lot of people who were not formerly customers.  It’s all about brand awareness (cited in Lyons, 2005: 8).”  This only shows the variety of strategies that has to be taken by a multinational company in order to survive.  If products fail in shops, then let the products be sold at home.    Analysis of the Business in the next five years The organizational strengths of the Body Shop have to do with its organizational culture.  The uniqueness of the products in terms of its packaging as well as its ingredients stands for the beliefs and/or values that the organization dwells in.  The end that a consumer arrives into from using the Body Shop’s quality products is neither just beauty nor skincare, but also a sense of an ideal being in this unjust world.  Its ethical and environmental principles that the great Dame Roddick propagates define the strength of the Body Shop.  This is the identity of Body Shop that enables it to stand among the rest of its cosmetic rivals.  Let us now deal with the deemed weaknesses of the Body Shop.  According to Entine (1997), as cited in Giampetro-Meyer (1998), the very problem that troubles the Body Shop for ages is that its image does not parallel reality.  The Body Shop boasts its natural products, and yet its products are not always fresh.  Worst, its product formulas loaded with petrochemicals are actually outmoded.  The Body Shop claims that it is against the use of animals to test its products, but its products’ ingredients are actually tested on animals.  The Body Shop asserts that it promotes development among Third World Countries by supporting local trade.  However, does it really do so?  The reality is that its Trade Not Aid program are said to provide only token relief to the indigenous group that it supports.  Could the aforementioned be true?  Or could it be just propaganda?  This is no time to search for truth.  A counter attack to such damaging propaganda is a simple label of propaganda by rival companies.  What matters is to maintain the economic survival of the business.  Body Shop has chosen a business path that goes along with social justice.  The perception that its products are for a cause is all that matters for the consumers.              Running for 3 decades now, the Body Shop has proven that every aspect of it has acquired high performances.  Of utmost concern at the moment is that L’Oreal’s takeover could be a threat to a certain extent.  The agreement that both parties entered into is something new.  It took place just a couple of months ago.  Agreements today can become disagreements in the future.  Body Shop’s autonomy may change through time.  L’Oreal could be a threat to the Body Shop’s performance in years to come.              L’Oreal has made a smart move on Body Shop, being its rival.  In terms of profit, the success of the latter is likewise the success of the former.  Moreover, the former is at an advantage stance, for it competes with the latter while at the same time gaining from it.  Most likely in the near future, both of which will be the giants in the arena of cosmetic business.              Women and men alike will most likely purchase products that pertain to the body.  Women will always spend on cosmetic products.  As mentioned in the aforementioned paragraphs, Body Shop’s products stand among the rest of the cosmetic products.  In relation to this, its suppliers come from the ethnic or cultural groups in different Third World countries that it supports.              Body Shop may stand among the rest but for how long?  Other body products are likewise improving its weaknesses.  There is indeed a variety of alternative body care products in the market.  However, things will also depend on the strategies that L’Oreal will take.    Recommendation             Dame Anita Roddick and the Body Shop have gone a long way in the cosmetics business.  It is interesting to note the irony behind.  A capitalist who is not greedy is one who actually survives and succeeds the most in the world.  It is then recommended that studies in business should consider principles or ideals and not just the art of profit making.    Conclusion             Dame Anita Roddick deserves the praises for her exemplary performance as an entrepreneur.  She has become successful because of the clear goals that she wants her Body Shop to have and attain.  In her case, risk undertaking, creativity and being innovative, and beliefs, are the factors that made her a successful entrepreneur.   The first step is not to succeed in the marketplace, but to enter the marketplace with a strong identity.  The Body Shop is just somebody’s body shop.  Now, it is everybody else’s “body shop.”  Bibliography: Books: Baghai, M., Coley, S., and White, D. (2000). The Alchemy of Growth: Practical             Insights for Building and Enduring Enterprise. Cambridge, MA: Perseus             Books. p.107-108.   Lessem, R. and Palsule, S. (1999). From Management Education to Civic Reconstruction: The Emerging Ecology of Organizations. London: Routledge, p.292.      Lowson, R. (2002). Strategic Operations Management: The New Competitive Advantage. New York: Routledge. P.161.     Mintrom, M., Schneider, M. and Teske, P. (1995). Public Entrepreneurs: Agents for Change in American Government. Princeton, NJ, Princeton University Press. pp.7-8.   McQuaid, R. (2000). Entrepreneurial Economics. Ed. By Jo Campling. England:             Macmillan Company. p.10.    Taylor, R. (1988). Exceptional Entrepreneurial Women: Strategies for Success.             New York: Praeger. pp.158-163.   Journals:   Giampetro-Meyer, A. (1998). “Working on the Wiring: Preventing Ethical Failures in Socially Responsible Businesses”. Review of Business, 20 (1), p.8.    Kassaye, W. W. and Verma, D. (1992) “Balancing Traditional Packaging             Functions with the New ‘Green’ Packaging Concerns”. SAM Advanced             Management Journal, 57 (4), p. 15+.   Lecker, M. and Needle, T.K. (1997). “Psychoethics: A Discipline Applying Psychology to Ethics”. Review of Business, 18 (3), p.30   Shepherd, D. (2003). “ A New Venture’s Cognitive Legitimacy: An Assessment of Customers”. Journal of Small Business Management, 41 (2), p. 148+   Solymossy, E. (2000). “Entrepreneurial Dimensions: The Relationship of             Individual, Venture, and Environmental Factors to Success”.             Entrepreneurship: Theory and Practice, 24(4), p.79.   Vredenburg, H. and Westley, F. (1999) “Sustainable Development Leadership in             Three Contexts: Managing for Global Competitiveness”. Journal of             Business Administration, p.239.     Newspapers:   Donnely, C. (2001). “Anita Roddick talks about money, and Joan of Arc”. The             Mirror. 17 November, p.8. .   Geary, J. (2005), “The Body Shop International Announces Its Preliminary Results To London Stock Exchange”. The Birmingham Post, 29 April, p.19. Jones, I. (2005). “Good Deeds for Business Success”, The Daily Post. 6 May.             p.22.   Lyons, T. 2005. “Body Shop is Back — and Fitter than Every Body Shop is Back – and Fitter than Ever”. The Mail on Sunday. 16 October, p.8   Internet:   British Broadcasting Company. Available at [http://news.bbc.co.uk/2/hi/business/4815776.stm]. [Accessed at 29/05/2006]).    McAleer, M. “Anita Roddick Biography”. Available at [http://www.stfrancis.edu/ba/ghkickul/stuwebs/bbios/biograph/anita.htm]. [Accessed at 30/05/2006].      The Clarion-Ledger. “L’Oreal takes over Body Shop”. Available at             [http://www.clarionledger.com/apps/pbcs.dll/article?AID=/20060318/BIZ/60             3180316/1005/biz]. [Accessed at 29/05/2006].   The Body Shop International. Available at [http://www.thebodyshopinternational.com/web/tbsgl/about.jsp]. [Accessed 30/05/2006].   Credit:ivythesis.typepad.com

The Success of Body Shop

Introduction There is success in body care. Behold the Body Shop, one of the famous international cosmetics brand. It is n...

Entrepreneur

Entrepreneur

Introduction There is success in body care. Behold the Body Shop, one of the famous international cosmetics brand. It is n...

Chapter One

Chapter One   INTRODUCTION       1. 1      BACKGROUND OF THE STUDY    Environmental degradation concerns humanity and the other forms of life here on earth. Ironically, much of these are caused by humans. Modernization and urbanization have led to serious pollution. Industries, vehicles and the increase in population are majors factors that cause environmental degradation. Carbon dioxide, nitrous oxide and chlorofluorocarbon (CFCs) have decreased the ability of the atmosphere to filter ultraviolet radiation. Climatic changes become evident as major cities worldwide become primary contributors of solid waste. Water pollution increases as an estimated 1.5 billion people lack safe drinking water and at least five million deaths per year are due to waterborne diseases. Sadly, although 70 percent of the planet is covered with water, much of these have become dumping grounds of waste. Raw sewage, garbage and oil spills dilute the ocean, polluting even coastal waters affecting the marine as well as human life that depend on it. Different concepts have been introduced to combat environmental degradation. Consequently, with the determination to reduce pollution, people have become aware that most pollutants are basically their needs and wants. For instance, cars provide convenience for transportation; factories produce products varying from food to clothing, which are either necessities or for leisure; and fertilizers and pesticides increase the quantity and quality of production of crops; yet all of them emit gases that contribute to air pollution. Moreover, the depletion of natural resources has taken its toll on the fragile environment. Countries require vast resources for economic activities as the demand for supplies have become greater and more complicated. These supplies range from water to fuel, from sand to wood, from aluminium to steel and from plastics to synthetic materials. The processes of extracting resources to produce these products have increased land degradation, changed natural habitats and polluted once pristine waters. The earth’s ability to sustain life and economic activity is now threatened by the way man extracts, processes, transports and disposes off a vast flow of resources. According to the journal Nature, the earth’s ecosystem services value at an estimate of trillion a year (1999). This began to change the companies’ production methods and consequently, their marketing strategies. However, the number of new pro-environmental product introductions has raised concern among government officials and environmental groups. Products claiming to be safer for the environment have come under close scrutiny. Manufacturers using ambiguous terms such as biodegradable and recyclable may actually be misleading the public because everything eventually biodegrades; and recyclable means nothing for recycling can not be done in all areas. The overuse of terms like these have led to numerous attacks by government officials and pro-environmental groups on these supposedly environmentally-friendly corporations. According to Environmental Action, these developments have led to consumer confusion.  Consumers are unsure of which claims to believe and which claims not to. Consumers who wish to make a difference in the environment have to become smarter shoppers and fully examine not only product claims, but also have to become knowledgeable about the bigger issues, such as the reputation of the companies who manufacture those products. Some companies have tried to hide poor environmental performance by advertising pro-environmental activities, such as donations to pro-environmental organizations, or by modifying their operations in only one country, while continuing to harm the planet by polluting other countries.             Most people today believe that Green Marketing refers solely to the promotion of products with environmental characteristics. Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environment Friendly are terms being associated by consumers with Green Marketing. Generally, Green Marketing refers to ‘one that can be applied to consumer goods, industrial goods and even services. It incorporates a broad range of activities, including product modification, changes to the production process and packaging as well as modifying advertisement.’  (1994), defined  green or environmental marketing as all activities designed to generate and facilitate any exchanges intended to satisfy human needs or, such that the satisfaction of these needs and wants occur with minimal detrimental impact on the natural environment.              While green marketing has taken the US and Europe by storm, consumers and marketers in Asia show few signs of jumping to the bandwagon. However, Japan is an exception, where eco-friendly slogans are celebrated on goods ranging from designer clothes and beer cans to gift wrapping in department stores. In other countries in Asia, environmental problems receive little attention as people concentrate more on economic development. Western ways have spread to Asia, changing old, environmentally sound traditions. The concepts of convenience and disposability — the very qualities which appeal to evolving consumer markets — have dangerous implications for the environment and its resources. ( September, 1991).             In Southeast Asian nations and in the other less developed Asian countries, spreading green product information is difficult. Advertisements in television, radio and newspapers are quite expensive. Furthermore, environmental regulations are also less comprehensive than in developed countries and the general population has a lower level of awareness in relation to environmental issues ( 1996). In developing countries like Malaysia, Thailand, Indonesia and the Philippines, the populace remains largely rural, poor and have minimal access to various media. Their consumers have less awareness on green goods, which lessens the capability to put pressure on retailers to carry environment-friendly products.             On the other hand however, market development in Southeast Asian countries present a good opportunity for market growth, with a regional population of over 500 million people. Once the economy recovers, personal income will increase hence, market segment is likely to be receptive to green products.             In the Philippines, based solely on observation of the laymen’s attitude towards the environment, one can say that the concern for the environment is not that extensive.  Recycling garbage is limited only to certain households and organizations.  It is common to see people throw their candy wrappers and cigarettes everywhere they please.  And come typhoon season, the torrential rains will unearth tons of trash stashed away by the urban populace during the previous months causing flash floods and flood-related diseases.             With this mindset, it would be interesting then to investigate whether the average Filipino responds favorably or not to a company’s marketing campaign using the environment as its driving theme.    1.2       STATEMENT OF THE PROBLEM This research is an attempt to find out if there is a relation between the  marketing campaign of The Body Shop which has an environmentally friendly slant and the Filipino consumer’s purchasing decision in buying Body Shop products.  Specifically this study aims to determine: a. )the demographic profiles of the respondents in terms of: 1)      Age 2)      Gender 3)      Status 4)      Income 5)      Educational Background b.) the attitude of the respondents toward The Body Shop products; c.) the respondents’ frequency of buying Body Shop products; d.) the level of satisfaction of the respondents toward The Body Shop products; e.) the level of awareness of respondents on environmental problems; f.) the factors affecting the respondent’s purchasing decision; g) the effect of The Body Shop market campaign on respondents.   1.3  CONCEPTUAL FRAMEWORK             In order to determine if there is a relation between the novelty of a product and the producer’s market campaign, the factors affecting consumer’s purchasing decision must be determined. According to  (2000), there are two factors affecting the consumer’s purchasing decisions : 1) the manufacturer’s reputation, and, 2) the product’s ingredients, packaging, and labelling.  The idea of environmentalism is usually related to the second factor, which has the following considerations; the danger and damage the product could contribute to the environment, the product’s energy consumption during its manufacturing process, the use and disposal of the product and the materials used in processing the product.  Figure 1 illustrates this framework which this study will use.                         Figure 1.  Conceptual Framework                                             The demography of respondents which includes the age, gender, status, income, and educational background would form the profile of the Body Shop customers.   The dependent variables would be the customer’s level of environmental awareness, their frequency of purchase of The Body Shop products, their level of satisfaction towards The Body Shop product they purchased, and their prevailing attitude towards the marketing campaign of The Body Shop.  The market reputation of The Body Shop, their marketing campaign, as well as their product’s ingredient, packaging and labelling would be treated as the independent variables.  This relationship is shown in Figure 2.       Dependent Variables                                                        Independent Variables                       Figure 2.  The Independent and Dependent Variables of the Study   1.4  STATEMENT OF THE HYPOTHESES 1.                  Ho :     There is no significant relationship between the independent variables and the consumer’s frequency of buying The Body Shop products. H1  :     There is a significant relationship between the independent variables and the consumer’s frequency of buying The Body Shop products. 2.         Ho:      There is no significant relationship between the independent variables and the level of satisfaction of respondents on The Body Shop products. H1  :     These is a significant relationship between the independent variables and the level of satisfaction of respondents on The Body Shop products. 3.         Ho:      There is no significant relationship between the independent variables and the attitude of respondents towards the marketing campaign of The Body Shop. H1  :     There is a significant relationship between the independent variables and the attitude of respondents towards the marketing campaign of The Body Shop. 4.         Ho:      There is no significant relationship between the level of environmental awareness of the respondent and respondent’s purchasing decision of a Body Shop product.             H1  :     There is a significant relationship between the level of environmental awareness of the respondent and respondent’s purchasing decision of a Body Shop product. 5.         Ho:      There is no significant relationship between marketing campaign of The Body Shop and the respondent’s purchasing decision. H1  :     There is a significant relationship between the marketing campaign of the Body Shop and the respondent’s purchasing decision.       1.5 OBJECTIVES OF THE STUDY             General Objective:             To discover whether the environment-friendly marketing campaign of The Body Shop affects their customer’s purchasing decision.              Specific Objectives: a.)    to collate the demographic profile of the respondents; b.)    to ascertain the level of awareness of the respondents on environmental problems;  b.) to establish the respondents’ frequency of buying The Body Shop products;  c.) to determine the level of satisfaction of the respondents towards The Body              Shop products;  d)  to illustrate the prevailing attitude of the respondents towards the marketing campaign of The Body Shop; and,             e.) to investigate whether there is a relation between the level of environmental awareness of the respondent and the respondents’ purchasing decision of a Body Shop product.             f.) to investigate whether there is a relation between the marketing campaign of The Body Shop and the respondents’ purchasing decision of a Body Shop product.   1.6       ASSUMPTIONS OF THE STUDY                         The following assumptions are posed to support this study:             1)         Environmental problems continues to rise, though people are aware of  environmental trends.             2)         Due to prevailing economic conditions in the country, consumers including  the respondents have lower purchasing capability on The Body Shop products. 3)                  People are aware of kinds of The Body Shop products because of its  marketing efforts. 4)                  Consumers have a positive attitude toward The Body Shop product so  they will purchase more.             1.7 SCOPE AND LIMITATIONS OF THE STUDY             This study will discover if the environment-friendly campaign of The Body Shop is the key factor in the purchasing decision of its Filipino customers.  This study will try to show that The Body Shop’s use of the environment as the tagline in its marketing campaign is not an effective way of selling their products to their Filipino customers.  Specifically, the researcher would like to show that Filipino consumers do not regard the product’s being environment-friendly as their main reason for buying the products of The Body Shop.             The study will focus only on the marketing campaign of The Body Shop. Since the store carries a complete line of beauty products, for this study’s purposes, only the shampoo line of The Body Shop will be used as the product to be studied.  The researcher finds it unwieldy and difficult to make a survey for each of the product lines of The Body Shop.  The researcher feels that shampoos are one of the more important items of purchase especially among Filipino women so the researcher has decided to use it for the study.  Also, since the prices of the products of The Body Shop are a bit steep compared to similar products in the market, the researcher has decided to limit the respondents to young professional women working in Makati, with ages ranging from 20-32 years old. Understandably, since The Body Shop is primarily a beauty product, the respondents of the study will primarily be Filipino women.             Also, the researcher would also like to determine the level of awareness of the  respondents on environmental problems, to see if it affects the purchasing decision of its customers.   1.8 SIGNIFICANCE OF THE STUDY Industry In general, this study will furnish insights on how concerned the young, professional, Filipino women consumers are with regard to the issues involving the environment. Moreover, this study will help the beauty industry assess their marketing campaigns vis-a-vis the attitudes of their consumers towards such campaigns.  More specifically, this study will provide the industry with the profile of its core customers, specifically the customers’ attitude towards green marketing. This study could be a good indicator whether consumers expect firms to jump on the green-bandwagon or not.  It will serve as a benchmark for companies that want to improve their green marketing campaign as this study provides a framework for the environmental behaviour of consumers. As this study furnishes valuable information regarding the frequency of purchase, the attitude towards their marketing campaign, their level of satisfaction toward the products of The Body Shop and as a whole, the image of The Body Shop products to their young, professional, female consumers, this study would provide the company a better understanding of what goes on in the minds of its buyers when they purchase any of the company’s products.  In the long run, they could use this as data for their future marketing campaigns and product positionings.   Society Few academic disciplines have integrated green issues into literature as in the field of marketing. As society becomes more concerned with the natural environment, businesses have begun to modify their behaviour in an attempt to address society’s “new” concerns. Some businesses have been quick to accept concepts like environmental management systems and waste minimization, and have integrated environmental issues into all organizational activities. This study would be significant to the society as it would provide information on the real nature of green marketing for consumers to better assess the  products on the market. Furthermore, it would inform the society regarding  environmental problems and encourage them to carry out solutions to these. Academe The study will be of significance to the academe as a reference for future studies on green marketing in the Philippines. The findings of the study will provide information on where consumer demands are heading. It will also provide insights about the subject to enhance classroom discussions in  various institutions.             1.9  DEFINITION OF TERMS Green Marketing incorporates a broad range of activities, including product modification, changes to the production process and packaging as well as modifying advertisement. Green Products refers to products that are typically durable, non-toxic, and are made from recycled materials, or minimally packaged. Environmental degradation refers to the destruction of environmental resources whether natural or man-made Recycling means to pass again through a series of changes or treatments as a   process (as liquid body waste, glass, or cans) in order to regain material for human use. Animal testing is the use of animals to test the effects of products in experiments, studies, etc. Green Consumers are those customers who utilizes goods that are environment-            friendly and described as inconsistent, acting as a green consumer in one market, but not in  another, cuts across existing market segments, sophisticated in wants and needs. Manufacturer refers to the company producing environmentally sound products and makes ‘green’ market campaign. Environmental Preservation refers to the cost of measure to conserve the resources Market Reputation is the identity of the a company e. g. as green marketer, e-retailer Environmental Behaviour refers to the attitude of consumer pertaining to or favoring the environment. Customer Satisfaction is the perception as to whether the organization has met customer requirements. However, It is widely recognised in the customer satisfaction field that customers’ perceptions do not always conform with reality. 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Chapter One

Chapter One INTRODUCTION 1. 1 BACKGROUND OF THE STUDY Environmental degradation concerns humanity and the other fo...