CASE STUDY

The Influence of Ethical Brand on Customer Loyalty: A Case Analysis of the Body Shop about Ethics Influence on Customer Loyalty before and After Acquired

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Table of Contents

INTRODUCTION1

Research Aims5

Research Value5

Research Questions and Objectives5

LITERATURE REVIEW6

Acquisition6

Customer Loyalty7

Corporate Social Responsibility10

KMV Model18

GAP in Literature Review19

RESEARCH DESIGN / METHODOLOGY20

Introduction20

Nomenclature21

Data Analysis21

Limitation23

Principled Assurances23

Feasibility and Appropriateness24

FINDING26

TBS as Ethical Brand26

The Body Shop's Ethical Actions27

CONCLUSION29

REFERENCES31

INTRODUCTION

The Body Shop (TBS) initially established its identity on the foundations of naturally inspired lotions and cosmetics. It was in the year 1976, that Roddick along with her husband ascertained their first Body Shop store at Brighton, UK. Roddick's social activism helped TBS to initially establish its roots among the local community before hitting the world with storm. Unlike other names which established itself within the nomenclature of cosmetics, TBS utilized its windows to cater to the local charity and contribute greatly in community events. This helped TBS, to instigate itself locally. Roddick always saw cosmetic industry, as an insensitive industry and rendered voice for the change in its norms and modus operandi so that masses can relate to it as well. In its early days, TBS only inculcated 15 lines of homemade cosmetic products like shampoo herbal cream, etc. Mined out from the ingredients such as Jojoba, rhassoul mud, etc to establish their comparative advantage. Going against the norms of cosmetic industry, TBS chose the bottles which were once identified as urine sample bottles. Moreover, all the labels on the bottles were handwritten by Roddick and the staff of TBS (Bird & Smucker 2006, 5).

TBS also took the lead when it came to rendering the ingredients of the cosmetics along with their properties. This at the time was a new concept and allowed the consumers to be aware of the ingredients of the cosmetics they intend to use. Another Success came within the short period of six months when TBS opened its second store. Ian McGlinn, who was the owner of a garage, helped Roddick with £4000 to open her second store. Social Marketing might seem a redundant idea by today; however, back in the days when TBS started its operations, it proved to be a positive surprise and an idea which can easily be traced on the grounds of Out-of-Box solution. It helped TBS to ascertain its loyal customer base within the local community. Since the customer base of TBS was very loyal, this allowed TBS to render its name in the positive comportment. By the end of 1970's, TBS opened its arms for the whole United Kingdom, by knitting the web of TBS stores. Numbers soon rendered prove of their success, as TBS was growing at the rate of 50 percent, thus attracting an increasing number of people towards itself. Moreover, it also figured in various headlines of the different newspapers of the country. However, after being accepted by the people of United Kingdom, TBS ventured into the international markets in 1978 and established its first foreign store in the City of Brussels. However, it was not until the year 1984, that ...