Case Study
THE BODY SHOP
SUMMARY
Anita Roddick started The Body Shop in Brighton, England, in 1976. The company was established to sell cosmetics and lotions that were environmentally friendly and were not tested on animals. The company caught the 1980s wave of the growing awareness of ecology and the company grew at a phenomenal rate. The rapid growth has not been without problems. Many competitors entered the market after seeing the success of The Body Shop. The Body Shop, which has always relied on publicity instead of advertising, may now need to change its
promotional strategy. In addition, stockholders are not always happy with the company’s philosophy of doing good instead of concentrating on profits. Finally, personnel issues have surfaced and the company lost a husband and wife team that was responsible for developing one of The Body Shop’s most successful product lines. Amid all of these problems, Anita admits that running a large, bureaucratic company is like death. The most common criticism is that the company lacked a plan for the future and had no clear sense of direction in its marketing. By the end of the decade, the company was dramatically restructured, manufacturing was divested, and Roddick took a back seat as a new CEO was brought in. However, Christmas sales in the year 2000 were poor and in the early part of 2001, the company showed a decline in sales when compared to the previous year.

DISCUSSION QUESTIONS
1. In what ways is The Body Shop experiencing problems similar to those of many
rapidly growing companies?

2. If you were hired as a consultant which problem would you consider most
critical?
3. Why are sales in the United States not increasing when sales in other countries
are improving?

4. What should The Body Shop do in the United States?