Bath and Body Works Marketing Mix Analysis

Bath and Body Works

Marketing Mix Analysis

The concept of the marketing mix includes the factors price, product, promotion, and place. Generally, understanding where the company is positioned in regards to these factors will serve as the basis for a comprehensive marketing strategy. This analysis provides a brief introduction to the marketing mix concept and then uses The Bath and Body Works to illustrate the marketing mix of a specific company. The Bath and Body company has actually just recently redesigned its marketing mix to better match the external environment and as a result has seen tremendous success. The changes they made included changes in the product mix and the promotional strategy and these changes have already proven to drive more revenue for the company.

Marketing Mix Overview

Most organizations develop their marketing strategy and marketing program on what is referred to as the marketing mix. The concept of the marketing mix includes the factors price, product, promotion, and place. Generally, understanding where the company is positioned in regards to these factors will serve as the basis for a comprehensive marketing strategy. The marketing mix is frequently used as the foundation for a marketing strategy because it allows marketing managers to promote their products or services in relationship to the external environments and it also serves as a useful framework for decision-making (Manktelow, N.d.).

The marketing mix is directed towards the consumer and the consumer is the recipient of all marketing efforts. There are many possible ways to understand and satisfy different needs and desires of a target market. The needs and desires of the consumer can be thought of in terms of the 4 Ps: Product, Price, Place, and Promotion. The Product is concerned with developing the right "product" for the target market. The needs of the consumer are in constant flux and evolve with changing conditions. Consumers may demand one thing one day and another the next day. Much of these demands are dependent with changes in the external environment.

Place is concerned with all the decisions involved in getting the "right" product to the target market in the right place. This could include selling it through traditional brick and motor stores, online, through direct mail, and many other "places." A product cannot satisfy a consumer's demand if the consumer does not have access to the product. The third P. In the marketing mix is referred to as Promotion and considers how to best introduce the product to consumers to the product. Examples of this could be television commercials, print advertisement, online advertisement, or even traditional word of mouth advertisement. Promotion primarily focuses on acquiring new customers; however it can also work on customer retention as well.

The last and one of the most important aspects to the marketing mix is the products price. Price setting must consider the competitive landscape that the target market has to choose from as well as all of the other variables in the marketing mix. Not only must the product satisfy the consumers demand but it also has to be priced in a way that the value that the consumer perceives outweighs the costs of the product they intend to purchase. That is, the consumer must get an equal or greater value from the product than they are purchasing otherwise they would not make the purchase.

Product -- the good or service that the company intends to produce.

Price - The price is the amount of money that is charged for a good or service

Place -- Where the product is going to be sold and how the distribution channels are established.

Promotion - Promotion is the act communicating information about the product to potential consumers.

Each of the 4 Ps in the marketing mix must be coordinated to have the most effect. When the Ps are working in harmony then this can produce an effective marketing mix to base an overall marketing strategy upon. Therefore the marketing mix is also directly related to identifying the target market. In many cases selecting a target market and developing a marketing mix are interrelated and can be developed simultaneously. When the comprehensive marketing strategy is based off of complimentary marketing decisions then the marketing message will be the most effective.

Bath and Body Works

Bath and Body Works is an American retail outlet which is owned by Limited Brands which also owns the Victoria Secrets brand and many others. The company was founded in Ohio in 1990 and has quickly grown through the United States and Canada. While the retail store's main focus remains in the personal care industry it has started to change the main theme for it's products from a country style feel to more of a mind, body and spirit approach (Home Business Expo, 2013). The companies has a dedication to using natural ingredients in their products and have recently expanded their product line to include items from simple fragrant shower and bath products to include spa and aromatherapy, skin care, hand and foot care, candles, home fragrances and more. Some of the products are only offered in season and you can also buy gift certificates or gift packages tailored for different occasions.

Bath and Body works in one of the industry leaders and operates over 1,600 independent retail locations while also offering an online shopping option that include shipping to Canada. The profit margin from this business segment declined 2008 due to an increase in buying and occupancy expense rate and higher expenses from promotional activities (Trefis Team, 2011). The company was able to survive the effects of the recession by expanding their product lineup to drive new sales. Furthermore the company expanded their promotional activities to include television advertisement which was a first for the company. Prior to advertising on television the company predominantly relied on word of mouth advertising.

Products

Fragrant shower and bath products, skin care, hand and foot care, candles, home fragrances and more.

Place

The network of 1,600 retail locations are spread throughout the country and generally located in shopping malls. There also have an extensive ecommerce operation that can ship products directly to most of North America.