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Marketing Plan for the Body Shop Essay

Concealer is very popular and its market growth stable because of concealer is very useful to cover the imperfection on the skin. The Body Shop’s Tea Tree Concealer, which launched in 2009, is this marketing plan’s character. Tea Tree Concealer is a handy portable stick to conceal blemishes which without over drying the skin. It also produce with organic tea tree oil. Tea tree oil’s ingredient renowned for its anti-bacterial benefits and an infusion perfect to help blemished skin.

Based on the SWOT analysis of Tea Tree Concealer, it mentions that Tea Tree Concealer needs to be more popular and needs to uses the gender segmentation that to enlarge the market with the men’s market because the demand of men’s cosmetics market is increasing especially of the concealer. Therefore, the marketing objectives are to enhance the promotion of Tea Tree Concealer that can increase 5-10% sales in short term; and in long term, The Body Shop can develop a Men’s Tea Tree Concealer to satisfy men’s satisfaction of concealer that the concealer can take care about men’s face skin.

For the marketing strategies, for short term, the body shop can use promotion tools, such as advertising in Facebook, beauty magazines and promote next to the MTR escalator. Also, the body shop can give general customers 5-10% off discount for buying Tea Tree Concealer. And the VIP can get one more discount after the new product has got 5-10% discount. Moreover, The Body Shop can give out the sample for people like and share the post on The Body Shop’s Facebook page, after that show it to the staff, then they can get one sample; and The Body Shop can have corporation with Mannings and Watsons. If people consume above $150, they can get a sample of The Body Shop. For long term, The Body Shop can use marketing mix (Product, Price, Place and Promotion), to increase the sales of Tea Tree Concealer and to open up the men’s concealer market, a men’s product that calls “Men’s Tea Tree Concealer”.

In product strategy, The Body Shop can put in money on Research & Development, to develop the “Men’s Tea Tree Concealer”. In pricing strategy, Market-Penetration pricing is the company choice on setting price because the tea tree collection of The Body Shop is famous in Hong Kong but the tea tree concealer is not familiar with the men. In promotion strategy, The Body Shop can set up a special counter in shops, which is the company promotional product. Some salesperson will promote the new product as men may feel shy to buy make-up product so set up a counter is every shop help the company to find some target. Also, the company will give out some sample if people click ‘like’ in Facebook fans page and to have video promotional campaign, people who have tried to use our product can join this competition. The users have to make a video about the feedback from using new tea tree concealer; the top 10 participants who obtained highest ‘like’ on their video clips can win $1500 cash.

For the marketing budget, Statement of Comprehensive Income that it is for the Promotion of Tea Tree Concealer & Men’s Tea Tree Concealer, it shows that it will have a profit in the end of the promotion of Tea Tree Concealer and also have a profit in develop a Men’s Tea Tree Concealer.

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Contents

| Page|
1. Introduction | 4|
2. Current Marketing Situation Analysis * Background Information * Current Market Analysis * Competitor Analysis| 5 – 9| 3. SWOT Analysis| 10 – 11|
4. Marketing Objectives * Short Term * Long Term| 12| 5. Marketing Strategies * Short Term(Advertisement, Discount, Sample,
Sponsorship) * Long Term(Marketing mix : Product, Price, Place and Promotion)| 13 – 15| 6. Marketing Tactics * Short Term * Long Term| 16 – 17| 7. Marketing Budget| 18 – 19|

8. Conclusion| 20|
9. Bibliography| 21|
10. Appendices| 22 – 28|

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Introduction

“Do you want to be more beautiful?”

Without doubt, ladies want to show the most beautiful face to others; therefore, they use lots of cosmetics, such as concealer, face primer, eye primer, lipgloss and eyebrow pencil. A lot of people strongly believed that concealer is the most useful cosmetics than others, because concealer is very useful to cover the imperfection on the skin. It is an important character which it can give people a better appearance. Thus, we decided to have a marketing plan for the concealer.

Moreover, organic issue is very popular that it started in the past few years, for example, organic food and the products must produce with organic materials. So, we decided that the concealer must produce with organic materials.

Finally, The Body Shop’s Tea Tree Concealer, which launched in 2009, has been the character in this marketing plan because Tea Tree Concealer is a concealer which it produces with organic tea tree oil. Tea tree oil’s ingredient renowned for its anti-bacterial benefits and an infusion perfect to help blemished skin

The Body Shop uses the gender segmentation that the consumer market is mainly women. We can know from the lots of products collections are mainly decided for female, for instance, Vineyard Peach, Extra Virgin Minerals etc.
Although cosmetics’ consumer market is mainly women, the demand of men’s cosmetics market is increasing especially of the concealer. This is because men need a better appearance that it is good for their work and interpersonal relationship. Therefore, The Body Shop needs to enlarge the market with the men’s market. Not only the women market is important, but also the men market.

This marketing plan suggests some marketing strategies, which uses marketing mix (Product, Price, Place and Promotion), to increase the sales of Tea Tree Concealer and to open up the men’s concealer market, a men’s product that calls “Men’s Tea Tree Concealer”. For increasing sales of Tea Tree Concealer, we can mainly use promotion tools, such as advertising; and promotion mix strategies, such as push strategy and pull strategy. For open up the men’s concealer market, we can use product strategy, price strategy, place strategy and promotion strategy, to promote the new product, “Men’s Tea Tree Concealer”.

The marketing plan for Tea Tree Concealer is presented as follow. ————————————————-
Current Marketing Situation Analysis

Background Information

* L’Oréal – Company Overview
The L’Oréal Group is the world’s largest cosmetics and beauty company. Over 500 brands and many thousands of individual products such as hair color, permanents, hair styling, body and skin care, cleansers, makeup and fragrances five worldwide research and development centers. There are two in France and one in the U.S, Japan and China.

On 17 March 2006, L’Oréal purchased cosmetics company The Body Shop for £652 million.

Their slogan is “Because we’re worth it too” and the Head office is in the Centre Eugène Schueller in Clichy, Hauts-de-Seine, near Paris. In 2003,
L’Oréal announced its 19th consecutive year of double-digit growth. In 2007, L’Oréal was ranked 353 in the Fortune Global 500.

The targeted markets of L’Oréal are mass, professional, luxury, and active cosmetics markets.They own interests in various activities such as fine chemicals, health, finance, design, advertising, insurance.

* The Body Shop – Company Overview
The Body Shop International plc, a part of the L’Oréal family, which specialized in producing beauty and cosmetics products. It is founded in the UK in 1976 by Dame Anita Roddick. There are more than 2,400 stores in 61 countries including Thailand, Australia and America.

“The business of business should not just be about money, it should be about responsibility. It should be about public good, not private greed.’’ –said Dame Anita Roddick, founder of The Body Shop.

The Body Shop creates a non-animal-testing and a fair trading company image. Every product is animal cruelty free and it is the first international cosmetics brand to be recognized under the Humane Cosmetics Standard for its Against Animal Testing policy.

The Body Shop believes in fair trade, had set up own fair trade programme, called Community Trade. Community Trade works over 30 suppliers in more than 20 countries, providing over 25,000 people across the globe with essential income to build their futures.

The Body Shop has five core values, which are Support Community Trade, Defend Human Rights, Against Animal Testing, Activate Self-Esteem and Protect Our Planet.

Current Market Analysis
* L’Oréal / The Body Shop
In this section, we will divide into three parts related to market analyses. Frist, the market share of the L’Oreal in the world as The Body Shop is
under this brand. Second, the market share of The Body Shop in the world and Hong Kong. Third, explain the target group and their needs of The Body Shop.

First, the L’Oreal is a worldwide brand which its shops located in 130 countries. The largest market of the L’Oreal is Asia, Pacific, followed by Western Europe and Northern America, which means Asia has a very high potential to keep increasing. From the graph next to, Asia, Pacific share nearly one-third of the worldwide cosmetic market. Also, from the expectation of Euromonitor, the market share in Asia Pacific will be changed in 2013, the share of China will increase from 22% to 28 % Breakdown of the worldwide cosmetics market

Breakdown of the worldwide cosmetics market

Moreover, due to the improvement of the technology and increase in quality of life, more and more cosmetic products appear in the market, causing keen competition. In 2011, the L’Oreal is act as leading role in the world, which is 20% of sales more than the other.

Second, The Body Shop promotes using organic material and adopting community fair trade, that’s suit the taste of people in the world which have a higher standard of environmental friendly. As the result, The Body Shop has become one of the top 20 cosmetic brands of the world in 2011.

Furthermore, compare the sales in the past two years of The Body Shop, the sale increased from 2010 to 2011 in Western Europe and the New Market. The New Market refers to Asia, Pacific Area, for example, China and Middle East. Although we cannot judge that the market share has increased, we can compare the proportion of sales by geographic. The New Market increased 1.4% form 46.9% in 2010 to 48.3% in 2011. This means The New Market has become more important to The Body Shop.

The Body Shop uses the gender segmentation that the consumer market is mainly women. We can know from the product collections of Vineyard Peach, Extra Virgin Minerals etc. These products are mainly decided for female, as skin in different between female and male. Also, the Body Shop promotes using organic materials to make their products. Citizens improve their sense of environment, so the reasons for citizens to choose their cosmetic products not only force on the quality of the product but the level of environment friendly of the product. Furthermore, The Body Shop buys the raw materials under a fair trade system which they have fulfilled their social responsibility, the farmer can earn more compare to other products which do not adapt fair trade. Customers will consider this point as their decision criterion. Lastly, ‘there is only one way to beautiful, nature’s way.’ This slogan is very impressive for nowadays customers. It’s because there is a lot of news or report point out that chemical has been put into cosmetic products. Also, as the quality of life increased, customers are willing to spend more money to buy nature products.

* Concealer Market
Concealer is very popular and its market growth stable because of concealer is very useful to cover the imperfection on the skin. It is an important character that it can give people a better appearance. This product is mainly used by women, but use among men is increasing.

The concealer is a type of makeup used to cover under-eye circles, pimples and other small blemishes visible on the skin.The concealer also can cover redness and even body flaws such as birthmarks, scars and vitiligo.

The market of concealer has intense competition, for instance, The Body Shop(Product name: Tea Tree Concealer), Bobbi Brown(Product name: Creamy Concealer), Cle de Peau Beaute(Product Name: Concealer), Beauty Tech(Product Name: Ice-cream Concealer ), MAC(Product Name: Select Cover Up), Shu Uemura(Product Name: Point Cealer) etc.

Also, some of the concealer is especially for a part of skin: for example, whole face, under-eye circles, pimples.

* Product Review – Tea Tree Concealer (The Body Shop)
We are focus on The Body Shop’s Tea Tree Concealer, which launched in 2009.
Tea Tree Concealer is a handy portable stick to conceal blemishes which without over drying the skin. It also produce with organic tea tree oil. Tea tree oil’s ingredient renowned for its anti-bacterial benefits and an infusion perfect to help blemished skin. Also, it traditionally used to promote healthy-looking skin and has fantastic skin moisturising properties. It costs HK$139 / 4.5g (2012’s price).

Competitor Analysis
* Jurlique
Jurlique has spent 25 years to explore the organic and biodynamic ingredients and our unique Bio inherent ™ process to create the purest, most powerful skin care. From biodynamic farms in South Australia, the leading natural innovation, we have to unlock the potential of the combination of nature and science to create an effective product is beautiful. Just means you healthy, beautiful skin.

The Jurlique farm:
Their factory on the farm lived a pampered life. Jurlique’s founders searched the world’s richest, most clean on Earth, to build our farm. They found that, in Adelaide (Adelaide Hills). Today, this pristine environment is a wide variety of plants, herbs and flowers, and provides the natural forces Jurlique high performance mixed. As the only Australian beauty brand, our own certified biodynamic farm (NASAA, the National Association of Sustainable Agriculture, Australia certification), we can prove the purity of our harvest. We follow strict organic and biodynamic farming principles, in order to achieve our recognition. In order to maintain a perfect nature, we tend to pick the crop of hand-sorted. The nature of the work and do not oppose it, and we strive to create a richer soil, which means healthy plants, extract and more effective products. So this is a natural process, better farming more beautiful skin.

Benefits:
It is a natural skin tones covering cream, in order to help to reduce the appearance of defects. Also, it can help balance oily skin surface sebum moderate and can help protect environmental aggressors.

Ingredients:
The witch hazel extract objects and tea tree oil help to gently clean and moderate sebum in the skin surface. The marigolds and self-healing extract offers comfortable performance and help rebalance the sensitivity. Aloe extract and glycerin strongly hydrate, and helps to soften the skin. Grapefruit seed extract contains antioxidant properties and helps protect the skin against environmental damage.

* Oriflame
Oriflame was founded in Sweden in 1967 by Hanlin brothers, has become an international market in more than 60 countries around the world. Cosmetics direct selling company. Oriflame has a wide variety of innovative product lines, Sweden, natural beauty products “by 360 Million independent sales consultants are sold worldwide, and has created more than 1.5 billion euros a year in sales. It is natural beauty products from Sweden.

Oriflame offers industry-leading career opportunities, and help people to earn income from the first day of added while moving. The goal of the current personal dreams and ambitions, this is our unique the career concept – “the creation of wealth today, tomorrow achievements Dream.”

Respect for people and nature, become the basis of the company’s operating Philosophy, and is reflected in the company’s social and environmental policies. Oriflame co-founder of the World Children’s Fund, and contributions to numerous global philanthropy projects. Oriflame is a listed companies, the stock is listed on the NASDAQ OMX Nordic Exchange.

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SWOT Analysis

We are focus on The Body Shop’s Tea Tree Concealer, which launched in 2009. We use the SWOT Analysis to analyse Tea Tree Concealer’s Strengths, Weaknesses, Opportunities and Threats.

Strengths
The Body Shop International plc is a part of the L’Oréal Corporate group. L’Oréal Corporate has a lot of capital, it can support The Body Shop International plc’s finance and it can have some large scale promotional campaign without consider financial problem.

Also, the L’Oréal Corporate is the largest cosmetics and beauty company in the world. It is famous, so, The Body Shop International plc can use the L’Oréal Corporate’s brand name to have some promotion and it will be more effectively. Furthermore, the Body Shop International plc has a positive reputation and image because of their non-animal-testing and fair trading company image. It can attract some customers, who support non-animal-testing and fair trading, to buy the products.

For the Tea Tree Concealer part, one of its strengths is that it is a handy portable stick. This is because customers can easily bring it goes out and leave in somewhere easily. After use the Tea Tree Concealer, it will be without over drying the skin and it is good for our skin too. Moreover, the Tea Tree Concealer is made of organic tea tree oil, which is not only an infusion perfect to help blemished skin, but it can also attract customers, who support using organic raw material, to buy it.

Weaknesses
The Tea Tree Concealer only has one color tone, it is not suitable for every because different people have different skin color. It only has one color tone that it can satisfy a little part of customers but not lots of customers. Without doubt, everyone has different skin, such as dry skin, oily skin, combination skin, normal skin and sensitive skin. The Tea Tree Concealer only has one type and it also cannot satisfy lots of people, only a little part of customers can use it.

Also, as we all know, The Body Shop International plc is founded in the UK in 1976 by Dame Anita Roddick. It is a western company and their products might be more suitable for foreign people. Therefore, the Tea Tree Concealer may not be suitable for Asian. It cannot satisfy more people. Opportunities

First of all, many existing cosmetics and skin-care products were tested on animals before they promote to the market in order to make sure the usage of them will not harm human bodies. However, The Body Shop against animals testing, every one of the products is animal cruelty free and vegetarian, which means we do not destroy the habitat of the animals and us. As a result, this is an opportunity of us to promote our product with this special characteristic.

The second one is that the product have not taken care the men’s market. The skins of men and women are not the same, so do the needs of them. If we still only focus on the women’s market, our sales would only stay in the same level, so we should not only focus on the women’s needs but also the men’s to enlarge the market. As a result, this becomes one of the opportunities for the company to expand the men’s market and to increase sales volume.

Third, the Body Shop is supporting Community Fair Trade, for example in Kenya. Most of the products contain Community Trade ingredients. This can attract customers who are also supporting Community Fair Trade. The body shop is also defending human rights, in order to treat all people in a fair and open fashion, to respect and value their integrity.

Last, we are seeking and sustaining natural materials, and using planet’s resources wisely. These are the ways how we approach our environmental target, protect our planet.

Threats
The competition from competitors such as Jurlique’s natural skin tones covering cream who are also at the same level is keen. They are also providing same type of products and which are inexpensive to attract our same target groups. As a result, we have to consider about what are our vantages and extent them to get more awareness.

Furthermore, the brand image of The Body Shop has become old, and is it not
that attractive to the new young customers. So there is a need for The Body Shop to rebuild the image into fashion and vitality.

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Marketing Objectives

Our marketing objective has two parts, one is short term and other one is long term. We will explain as follow.

Short Term
Based on the SWOT analysis of Tea Tree Concealer, it mentions that Tea Tree Concealer needs to be more popular. Therefore, the marketing objective is to enhance the promotion of Tea Tree Concealer that can increase 5-10% sales in short term. It means that we will increase 5-10% sales of Tea Tree Concealer in 5 months.

Long Term
As for the long term objectives of The Body Shop, it mainly has two steps want to achieve.

1. Develop a new tea tree concealer for men
From different researches in the market, we know that the make-up market for men is now expanding; more men are more focus on their appearance for different perspectives. Therefore, The Body Shop should invent a new tea tree concealer for men only, which can focus on the needs of men, such as promotes healing of acne, keeps your skin elastic and improves appearance of wrinkles and fine lines. As a result, the company would like our research and development department can invent a men concealer within nine months’ time.

2. Sale 10000 concealer within six months
The company aims at maximizing the profit of the company. If The Body Shop promotes the new product, “Men’s Tea Tree Concealer”, its focus on the needs of men, so The Body Shop can increase its profit as it promotes a new men product. The company will have a questionnaire in the future so that we can
know more about our market, for example, setting our target group, the price that people can accept, which promotion strategies is the best for our market. As a result, we would like to sell 10,000 pieces of concealer within six months’ time, which is a measurable objective.

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Marketing Strategies

Short term
To mention the short term objective of the Body Shop, we mainly want to attract some new customers by the new products. On the other hand, we also need to make the original customers continues to consume on our brand. And thus, we have discussed four mainly short term strategy to achieve our aim.

1. Advertisement
The Body Shop can have three major ways to show our advertisement. The first one is Facebook. Nowadays, Facebook is a popular website to let people share their feelings and photos. And Facebook in Hong Kong is also necessary to people. Thus, do promotion on Facebook is an effective way to make more people know our new products.

The second one is magazines. Magazines major target is office workers and the teenagers, and this target group is same as our products. Therefore, promotion on the magazines one big page can easy to let our targets know our new products.

And the third one is promote next to the MTR escalator. MTR has many streams of people every day. And it is free when the people are standing on the escalator. So, display on the escalator advertisement board is also easy to let people know our promotion.

2. Discount
For the general customers, The Body Shop can give them 5-10% off discount. And the VIP can get one more discount after the new product has got 5-10% discount. It will be effective that the cheaper price can make the people
try it and also it can conveniently to attract more people being The Body Shop VIP.

3. Sample
The Body Shop can give out the sample more effectiveness. If we just commonly give out the sample on the street will wreck the value of product. And thus, we have planned to ask people like and share the post on Facebook, after that show it to the staff, then they can get one sample. This method can let people try our new product and also indirectly help our brand having a promotion simultaneously.

4. Sponsorship
We try to have corporation with Mannings and Watsons. If people consume above $150, they can get a sample of Body Shop. Sponsorship can provides a great means of broadening our competitive edge by improving our company’s image prestige and credibility by supporting events that your target market finds attractive.

Long term
For the long term plan for the Body Shop, the company purposes one and half year plan, which help the Body Shop to achieve the goals on developing a new tea tree concealer for men and increase the sale for product. The company will divide the plan into 4Ps.

Product:
As we all know, the make-up market for men is now expending so the Body Shop should grab this golden opportunity to develop a new tea tree concealer for men only. The skin is different between men and women, the company should focus on the needs of the men’s skin purpose. The company target group is based on beneficial segmentation because our product is only for men who have acnes on their faces.

Although we all know that the cost for Research & Development is very high, the company think that people will also come and buy our product. Recently the company has done a survey on the Body Shop and its products.
The interviewees thought the Body Shop is popularization, people are able to afford the price range. Therefore, we think put in money on R & D, later on, the Body Shop not only can earn the profit, also earn the advertisement benefit as they not only care about women but also men.

Price:
Market-Penetration pricing is the company choice on setting price. The tea tree collection of the Body Shop is famous in Hong Kong but the tea tree concealer is not familiar with the men. Therefore, we decide that when the product first enters to the market, the company will set a relatively low price so that it can attract more customers and get feedback from the public. People will consider buying our product because of low price, after they have used, they can re-buy the company’s product.

Moreover, in market there is just a little amount of concealer that is only men, our product must keep a competition with other products because if the price set very low from the average, other competitors will also set a very low price, this cannot help the company to maximize the profit, it will greater the loss. If we set a high price, people are not willing to buy the company product as there are other concealers available in the market. The company set a price on $159 per new tree concealer for men which is a reasonable price.

Place:
In order to let more people to know more about the new tea tree concealer for men, the company will set up a special counter in shops, which is the company promotional product. Some salesperson will promote the new product as men may feel shy to buy make-up product so set up a counter is every shop help the company to find some target.

Promotion:
First, the company will give out some sample if people click ‘like’ in Facebook fans page, with the advance of technology and the common of using smart phone, people are more easy to obtain different information online, so Facebook is an efficient channel to promote the new tea tree concealer. The company will maximum given out 10000 sample tea tree concealer.

Second, the company decides to have video promotional campaign, people who have tried to use our product can join this competition. The users have to make a video about the feedback from using new tea tree concealer; the top 10 participants who obtained highest ‘like’ on their video clips can win $1500 cash. In this way, we enjoy a promotional advantage as participants will share their video clip for one another so that more people will know about our product. Also, the participants can show a positive experience for the public, the public can see the positive sides of using the new tea tree concealer.

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Marketing Tactics

The short term and long term’s action plan is presented as follow. It shows the different strategies use in different time.

Short term

Magazine Promotion

Facebook Promotion

Sample

Sponsorship

MTR Advertisement

Discount

1st month

2nd month

3rd month

4th month

5th month

Magazine Promotion

Facebook Promotion

Sample

Sponsorship

MTR Advertisement

Discount

1st month

2nd month

3rd month

4th month

5th month

Long term

Research and Development of New Product

Review
Video Promotional Campaign
Facebook Promotion

Sample
1st
9th
10th
11th
12th
13th
14th
15th
16th
17th
18th
Months

Research and Development of New Product

Review
Video Promotional Campaign
Facebook Promotion

Sample
1st
9th
10th
11th
12th
13th
14th
15th
16th
17th
18th
Months

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Marketing Budget
| THE BODY SHOP| |
| Statement of Comprehensive Income| |
| (for the Promotion of Tea Tree Concealer & Men’s Tea Tree Concealer )| | | | | | | | | | | |
| | | | | | Short Term (5 months)*| | Long Term (18 months)*| | | | | | Note| | HK$| | HK$| |
| Sales| | | 1| | 4,170,000| | 1,590,000| |
| Less: Cost of Goods sold| 2| | 1,876,500| | 715,500| | | Gross Profit| | | | 2,293,500| | 874,500| |
| | | | | | | | | |
| Expenses| | | | | | | | |
| Advertising Expenses| | 3| | (520,000)| | -| |
| Samples Expenses| | 4| | (646,350)| | (238,500)| | | Research and Development Expenses| 5| | -| | (400,000)| | | Promotional Booth| | 6| | -| | (29,500)| |
| Video Promotional Campaign| 7| | -| | (15,000)| | | | | | | | (1,166,350)| | (683,000)| |
| | | | | | | | | |
| Net Profit| | | | | 1,127,150| | 191,500| |
| | | | | | | | | |

Statement of Comprehensive Income

*Before having promotion, the sales is HK$ 3,750,000 in 5 months. **Long term’s sales period is 6 months.
Note:
1. Sales:
* Short term: HK$ 139 x 30,000 = HK$ 4,170,000
Sold 200 pieces of concealers a day; sold 30,000 pieces of concealers in 5 months. * Long term: HK$ 159 x 10,000 = HK$ 1,590,000
Sold 10,000 pieces of concealers in a half year.
2. Cost of Goods sold:
According to Prudence concept, the cost of concealer is 45% of the price. * Short term: HK$ 4,170,000 x 45% = HK$ 1,876,500
* Long term: HK$ 1,590,000 x 45% = HK$ 715,500

3. Advertising Expenses:
HK$ 1 x 500,000 + HK$ 20,000 = HK$ 520,000
$1 /page in magazine; 50 magazines; MTR Advertising Expenses HK$ 20,000/month. 4. Samples Expenses:
The sample size will be the 1/3 of the original size, the cost of the sample also be the 1/3 of the original cost. * Short term: HK$ 20.85 x 31,000 = HK$ 646,350
Each sample costs HK$ 20.85 (HK$ 139 x 45% x 1/3); 31,000 pieces of sample. * Long term: HK$ 23.85 x 10,000 = HK$ 238,500
Each sample costs HK$ 23.85 (HK$ 159 x 45% x 1/3); 10,000 pieces of sample. 5. Research and Development Expenses:
These expenses include research information’s cost and develop the Men’s Tea Tree Concealer’s cost. Around cost HK$ 400,000. 6. Promotional Booth:
HK$ 500 x 59 = HK$ 29,500
Each store has a promotional Booth; It costs around HK$ 500 for each. The Body Shop has 49 stores in Hong Kong. And it has 10 booths as spare. 7. Video Promotional Campaign:
HK$ 1,500 x 10 = HK$ 15,000
Each winner has $1500 cash. There are 10 winners in total.
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Conclusion

In conclusion, based on the SWOT analysis of Tea Tree Concealer, it mentions that Tea Tree Concealer needs to be more popular and needs to uses the gender segmentation that to enlarge the market with the men’s market because the demand of men’s cosmetics market is increasing especially of the concealer. Therefore, the marketing objectives are to enhance the promotion of Tea Tree Concealer that can increase 5-10% sales in short term; and in long term, The Body Shop can develop a Men’s Tea Tree Concealer to satisfy men’s satisfaction of concealer that the concealer can take care about men’s face skin.

For the marketing strategies, for short term, the body shop can use promotion tools, such as advertising in Facebook, beauty magazines and promote next to the MTR escalator. Also, the body shop can give general customers 5-10% off discount for buying Tea Tree Concealer. And the VIP can get one more discount after the new product has got 5-10% discount. Moreover, The Body Shop can give out the sample for people like and share the post on The Body Shop’s Facebook page, after that show it to the staff, then they can get one sample; and The Body Shop can have corporation with Mannings and Watsons. If people consume above $150, they can get a sample of The Body Shop. For long term, The Body Shop can uses marketing mix (Product, Price, Place and Promotion), to increase the sales of Tea Tree Concealer and to open up the men’s concealer market, a men’s product that calls “Men’s Tea Tree Concealer”. In product strategy, The Body Shop can put in money on Research & Development, to develop the “Men’s Tea Tree Concealer”.

In pricing strategy, Market-Penetration pricing is the company choice on setting price because the tea tree collection of The Body Shop is famous in Hong Kong but the tea tree concealer is not familiar with the men. In promotion strategy, The Body Shop can set up a special counter in shops, which is the company promotional product. Some salesperson will promote the new product as men may feel shy to buy make-up product so set up a counter is every shop help the company to find some target. Also, the company will give out some sample if people click ‘like’ in Facebook fans page and to have video promotional campaign, people who have tried to use our product can join this competition. The users have to make a video about the feedback from using new tea tree concealer; the top 10 participants who obtained highest ‘like’ on their video clips can win $1500 cash.

For the marketing budget, Statement of Comprehensive Income that it is for the Promotion of Tea Tree Concealer & Men’s Tea Tree Concealer, it shows that it will have a profit in the end of the promotion of Tea Tree Concealer and also have a profit in develop a Men’s Tea Tree Concealer.

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Bibliography

* The Body Shop (seen on 20th September 2012)
http://www.thebodyshop.com.hk/tc/index.aspx

* The Body Shop – Wikipedia, the free encyclopedia (seen on 20th September 2012) http://en.wikipedia.org/wiki/The_Bodyshop

* L’Oréal (seen on 20th September 2012)
http://www.loreal.com/_en/_ww/index.aspx

* L’Oréal – Wikipedia, the free encyclopedia (seen on 20th September 2012) http://en.wikipedia.org/wiki/Loreal_Kids

* Oriflame (seen on 8th November 2012)
http://gb.oriflame.com/

* Oriflame – Wikipedia, the free encyclopedia (seen on 8th November 2012) http://en.wikipedia.org/wiki/Oriflame

* Jurlique (seen on 8th November 2012)
http://www.jurlique.com/

* Skin Care – Jurlique – Hong Kong (seen on 8th November 2012) http://www.jurlique.hk/catalog/main.php?cPath=1

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Appendices

1. Sample of the Questionnaire
Questionnaire on The Body Shop’s Tea Tree Concealer|
Hello, we are students of the Hong Kong Institute of Vocational Education
(Morrison Hill), we are conducting a project of Marketing, and is currently conducting a survey about The Body Shop Tea Tree Concealer. All of the information you provide in this questionnaire will not be used for commercial purposes, and destroyed at the end of the project-based learning. 1. What is your personal feeling or opinion towards “The Body Shop”? (1 is very bad while 5 is very good)

口 1 口 2 口 3 口 4 口 5
2. Which of the following vocabularies is/are to describe “The Body Shop”? (Can choose more than 1 answers)
口 popularization 口 with enterprise conscience 口 expensive products 口 good quality of products 口 poor quality of products
口 others:_______________ 3. Have you ever seen the tea tree concealer of The Body Shop? 口 Yes ( go to question 4) 口 No (go to question 5) 4. Have you ever bought this tea tree concealer before? 口 Yes ( go to question 6) 口 No (go to question 7) 5. As our product helps to protect from anti-bacterial and it is an infusion perfect to help blemished skin. Moreover, it promotes healthy-looking skin and has fantastic skin moisturizing properties. The size of the tea tree concealer is 4.5g which cost $139. After knowing the benefit out product, will you consider to buy it? 口 Yes ( go to question 6) 口 No (go to question 7) 6. Why will you choose to buy or consider our product? (Can choose more than 1 answers) (can choose more than 1 choice)

口 Price consideration 口 functions 口 coupons 口 influence by media 口 functions of other brand’s products 口 Others:_______________ 7. Why won’t you choose to buy or consider our product? (Can choose more than 1 answer) (can choose more than 1 choice)

口 Price consideration 口 functions 口 Personal feeling 口 I don’t do any make-up 口 functions of other brand’s products 口 Others:_______________ 8. What ways can attract you to buy our product? (Can choose more than 1 answer) (can choose more than 1 choice)

口 Advertisement 口 Discount / coupon 口 Sample 口 Gift / Present 口
Others:_______________ 9. What is you gender?
口 Female 口 Male 10. What is your age group?
口 18 or below 口 19-25 口 26-32 口 33-39 口 40 or above 11. What is you occupation? 口 Banking / Finance 口 Engineering 口 Building / Construction 口 Hotel / Tourism 口 Education 口 Retailing

口 Beauty Care 口 Others:_______________ ~ Thank You!! ~|

The company has made an online questionnaire which is relate to this topic, as Cantonese is a common language in Hong Kong so the company decided to upload a Cantonese version to the public. The link is as follow: https://docs.google.com/spreadsheet/viewform?pli=1&formkey=dGNfd3ppOXNxc3JTVUVZMUdtdFVIS3c6MQ#gid=0

2. Result of the Survey

1. What is your personal feeling or opinion towards “The Body Shop”? (1 is very bad while 5 is very good)

Before the company asks questions about the concealer, some background information about the brand name is needed. This question ask the interviewees to give marks on The Body Shop, the average marks is 3.83, nearly 70% of interviewees give more than the average marks so the Body Shop have a positive image in public.

2. Which of the following vocabularies is/are to describe “The Body Shop”? (Can choose more than 1 answers)

As mentioned above, the Body Shop has a positive image so the company would like to know more about the opinions from the public. More than 80% of interviewees responded that the Body Shop is popular is Hong Kong, there are lots of shops in different parts. 32% and 52% of interviewees think the Body Shop run its business with enterprise conscience and the product quality is high respectively. However, 11% and 4% of interviewees have negative image
on the Body Shop, they think the products are quite expensive and the quality is not really good. Therefore, we may consider the price while setting for the new tea tree concealer for men.

3. Have you ever seen the tea tree concealer of The Body Shop?

The company should have some evaluation meeting on the promotion strategy on tea tree concealer as the nearly 60% of them have never seen the tea tree concealer before which cannot help the company to increase sales. Only 40% have ever seen the concealer before, this reflects the promotion is not strong enough.

4. Have you ever bought this tea tree concealer before?

There are totally 59 interviewees responded that they have seen tea tree concealer before but only 40 of them which is nearly 70% have bought before, this seems to be a huge number. However, overall speaking, for all the interviewees, there are only 29% of them bought it. This is not a good situation because only few amounts of people have bought before.

5. As our product helps to protect from anti-bacterial and it is an infusion perfect to help blemished skin. Moreover, it promotes healthy-looking skin and has fantastic skin moisturizing properties. The size of the tea tree concealer is 4.5g which cost $139. After knowing the benefit out product, will you consider to buy it?

For another 79 interviewees, 50 of them will consider to buy tea tree concealer, which is 63%. This means there is higher potential for our market to expand. It’s because the public don’t know about the advantages of the tea tree product. From this question, we know that our promotion is not strong enough so we have to improve in future. Also, people may consider about the benefit of the product which is an important element for customers to choose.

6. Why will you choose to buy or consider our product? (Can choose more
than 1 answers)

For this question, the number of interviewees have to answer is 90, this question aim to find the reason for customer to consider buying our product. 77of the interviewees think that the functions and benefits is very important, 74 of them think the price is reasonable to afford, this means people are consider about the quality and price. Moreover, affected by the other competitors and brands, people will choose to buy the tea tree concealer from the Body Shop. So when the company decides to develop the new tea tree concealer for men, some specific function should be added on in order to attract more people to buy.

7. Why won’t you choose to buy or consider our product? (Can choose more than 1 answer)

For this question, the number of interviewees have to answer this question is 48. 25 of them responded they don’t make –up so this group of people is not the company target. 27 of them think the price is relatively high which is a disadvantage, also there have to face the competition from other brands, so people will affect by other company.

8. What ways can attract you to buy our product? (Can choose more than 1 answer) (can choose more than 1 choice)
In order to set the company promotional strategy, this question ask about which ways can attract people to buy the tea tree concealer. 85% of them think discounts and coupons are very attractive for them to buy. Moreover, give out samples is also a good way to promote the tea tree concealer. 92 of the interviewees think that gift is quite attractive as they can try to us our product. If the feedback is good, they will re-buy the company’s product.

9. What is you gender?

For this questionnaire, there are 87 males and 51 females have answered our questionnaire.

10. What is your age group?
Nearly half of the interviewees belong to age between 19 and 25 and 30% are belong to age between 26 and 32.

11. What is you occupation?
33% of the interviewees are students who don’t have enough buying power which may affect our result a little bit. Moreover, the remaining interviewees are


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