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Important Note

The purpose of this sample is mainly to illustrate the structure of a marketing plan that should consist of the following major parts.

Introduction

Situation analysis

Market analysis

Competitor analysis

Macroenvironmental analysis

Analysis of your own company (i.e. its past performance)

SWOT analysis (as a summary of the analyses above)

Details of the marketing plan

Goals / objectives of the marketing plan

Marketing strategies

Marketing action plan (i.e. marketing 4P's)

Conclusion

References

0

Content

1.

Introduction

 

2

2.

Purpose

2

3

Situation analysis - market situation

2

3.1 Market size

 

2

3.2 Market

growth

2

3.3 Current impact

3

3.4 Future impact

3

3.5 Area for expansion

3

3.6 Changes

of want

3

4.

Situation analysis - competition

3

5.

Situation analysis - macro environment

4

5.1 Legal/ political concerns

4

5.2 Economical consideration

4

5.3 Social/ lifestyle trends

5

5.4 Technological

 

5

5.5 Cultural/ demographic trends

6

5.6 Physical environmental issues

6

6.

Situation analysis - firm’s past performance

6

6.1 General trend

 

6

6.2 Accomplishment

7

7

SWOT analysis

 

7

7.1

Strengths

7

7.2

Weaknesses

7

7.3

Opportunities

7

7.4

Threats

8

8.

Goal

8

9.

Market strategy

 

8

9.1 Product-market specification

8

9.2 Market segmentation

9

9.3 Targeting

 

9

9.4 Positioning

9

10.

Market action plan

9

10.1 Services

9

10.2 Price

10

10.3 Place

10

10.4 Promotions

10

11.

Conclusion

12

12.

Reference

13

13.

Appendix

14

1

1.

Introduction

The Body Shop International power-line-carrier (The Body Shop) is founded by Dame Anita Roddick in the UK in 1976. Nowadays, The Body Shop is skin and body care manufacturer and retailer operating in 55 countries with over 2,100 stores. It has 42 exclusive outlets in Hong Kong. It was the first international cosmetics brand to be awarded the Humane Cosmetics Standard for its own fair trade programme called Community Trade. Its missions are to dedicate our business to the pursuit of social and environmental change, to meaningfully contribute to local, national and international communities in which we trade, to passionately campaign for the protection of the environment, human and civil rights and against animal testing, and to make fun, passion and care part of our daily lives.

2. Purpose

There are two purposes of our marketing, short term and long term. The short-term objective is to generate more sales for The Body Shop. Through the introduction of a new service – the make-up class, it is hoped that customers can try and experience The Body Shop cosmetic products. Positive experience of using our products could then be developed through their trial use in the market-up class. It is estimated that this positive experience can push up the sales. The long-term objective is to educate the belief of The Body Shop to the young customers. The belief is ‘natural is the best’. It is hoped that this concept can be deeply rooted in the minds of our young potential customers, so that they will become those who prefer natural cosmetic products and are loyal to The Body Shop in future. Therefore, the objectives are to push up sales and build a loyal customers basis for the future.

3

Situation analysis - market situation

3.1

Market size

The market size of the cosmetic market in HK is medium size. It is getting bigger and bigger. From the retail volume of the cosmetics products, it is found that there is an increase from $938.3mn to $1132.3mn during 2002 to 2007. It shows that there is a growing trend in the cosmetics products market.

3.2 Market growth

From this table, it can be seen that the cosmetic market is growing in an increasing rate. It shows that the cosmetic products are in the growth stage of the product life cycle. It is mainly due to make-up start up at an early age. Females are now focusing more on their appearance, and consequently use of make-up is rising. Furthermore, the age at which consumers begin using make-up is also decreasing. Young students are starting to learn to doll themselves up for events such as clubbing and parties.

 

2002

2003

2004

2005

2006

2007

Colour cosmetics - retail value - HK$ mn

938.3

950.9

980.3

1026.1

1077.2

1132.3

% Increased

-

1.34%

3.09%

4.67%

4.98%

5.12

2

3.3 Current impact

In October 2007 the campaign for safe cosmetics, in which 25 multinational companies participated, tested 33 brand-name lipsticks, and found that one-third of the samples exceeded the limit of lead allowed in confectionery. The affected brands included L’Oréal and Christian Dior. A definite effect would be that consumers will be more concerned regarding the ingredients of products they use, which is likely to have a pronounced effect on cosmetics and skin care products. Natural and organic products were released to capture share

3.4 Future impact

To tackle the problem of declining consumer confidence resulting from the lead lipstick incident and poisonous products from Mainland China, manufacturers are to explore healthier products both in terms of image and ingredients. As there is plenty of room for development for organic products, manufacturers can develop lines with organic ingredients. The trend can even be extended to body care products. From retailers’ and distributors’ viewpoints, their emphasis in terms of promotional campaigns is on the health and natural aspects.

3.5 Area for expansion

Originally, it is more focus on the colour cosmetics. But since there are lots of problem on the product safety issue. Many and many consumers start to shift to find some organic and natural products. It can foresee that there is a trend on buying the organic and natural products.

3.6 Changes of want

With consumers increasingly informed and educated, they are now more demanding for more information regarding products and are becoming more aware of health issue. Products with organic ingredients and natural ingredients such as tea and plants are gaining popular. Furthermore, consumers are looking for healthier substitutes to seemingly unhealthy products such as colourants and colour cosmetics.

4. Situation analysis - competition

Competition in terms of cosmetics products The Body Shop got 2.4% brand market share and ranked the 11th in 2007 (refer to Appendix 1). Both the ranking and share were not significant in this keen competition. The brand market shares were more or less the same in the recent 4 years. The market share distribution is quite stable.

There are many direct competitors. Direct competitors are those whose core businesses include selling colour cosmetic. As the market share of the Body Shop is not significant, she is facing many strong competitors in the industry. Those who are ranking close to and higher than the Body Shop are strong competitors, such as L’Oreal Paris, Estee Lauder and Clinique. All the strong brands are multinational companies and therefore large in business scale.

On the whole, because there are many strong competitors and the market share distribution is stable, they create a barrier for the Body Sop to have a breakthrough improvement in market share.

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Competition in terms of make-up course Direct competitors are the strong cosmetic brands such as Laneige, Shiseido, Max Factor, ÍPSA and Chanel. Most of them provide offline short term make-up courses. Those courses are usually the complementary services to support their cosmetics and promotion campaigns. But none of them provide online video make-up teaching.

Indirect competitors are the beauty companies such as Beauty Tech. Their core businesses include long term beauty courses and consultation services. They provide limited video only.

On the whole, there is no significant threatening against our offline make-up courses with online video support. Online video make-up teaching is a value added service to the offline make-up class.

5.

Situation analysis - macro environment

5.1

Legal/ political concerns

According to the regulation of the Consumer Goods Safety Ordinance (Cap. 456) (“the Ordinance”), cosmetic and skin care products available in the market are categorized to consumer goods. The Ordinance provides that manufacturers, importers and suppliers should ensure that the consumer goods they supply in the market meet the general safety requirement. Under this requirement, the consumer goods concerned must be reasonably safe.

In order to assess those cosmetic and skin care products, there are some criteria which are the manner in which, and the purpose for which, the consumer good is presented, promoted or marketed; the use of any mark in relation to the consumer good and instructions or warnings given for the keeping, use or consumption of the consumer good; reasonable safety standards published by a standards institute or similar body for a consumer good of the description which applies to the consumer good or for matters relating to a consumer good of that description; and the existence of any reasonable means (taking into account the cost, likelihood and extent of any improvement) to make the consumer good safer.

If a particular cosmetic or skin care product is found to have breached the requirement under the Ordinance, on first conviction, the penalty will be a maximum fine of $100,000 and an imprisonment for one year, and on subsequent convictions, the penalty is a maximum fine of $500,000 and an imprisonment for two years.

All the marketing activities are restricted by the Consumer Goods Safety Ordinance. When The Body Shop conducts any marketing plan in Hong Kong, it is a must to take those requirements in consideration in order to avoid breaking the law.

5.2

Economical consideration

5.2.1

Gross Domestic Product (GDP) trend

The Hong Kong economy grew by 4.2% in the 2nd quarter of 2008. This followed a strong 7.3% growth in the 1st quarter. The moderation after a prolonged period of robust economic expansion indicated that the headwinds from the slowing growth in the advanced economies and lingering financial market turmoil had increasingly posed a drag on the economic growth of the Asian region, including that of Hong Kong (GDP in Hong Kong refer to Appendix 2).

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5.2.2

Consumer price index trend

According to the Composite Consumer Price Index (CPI), overall consumer prices rose by 3.0% in September 2008 over a year earlier (Composite Consumer Price Index in Hong Kong refer to Appendix 3). The strong Chinese currency (RMB) will make cross-border shopping trips less attractive for Hong Kong consumers but more attractive for Chinese consumers, thereby bolstering retail sales in Hong Kong. However, these gains may be dampened by the increasing costs of imported Chinese goods. If costs increase steeply, there is a chance that consumers may be willing to pay a smaller premium for goods imported from Europe and the US that they perceive to be of higher quality.

5.2.3 Economic uncertainties

The America second mortgage created economic problems. The housing market in America dropped down quickly. It dragged the other related and unrelated market. Not only American market but also the markets all over the world are lashed. In addition, AIG was bankrupted on 15 th September 2008. The subsidiary company, AIA in Hong Kong, might be affected. People were worried about the security of their saving and insurance. Besides, people were fired by the banks one after anther. The largest bank in Hong Kong, HSBC, first fired 100 people on 26 September 2008. Another bank, DBS, also fired around 400 people on 8 November 2008. The other banks representatives claimed that might lay off the staff for reducing expenditure.

To conclude, due to the high exchange rate of RMB and unstable economy, Hong Kong people are worried about the economic in the future. It resists and reduces their buying intention. They will suspend their purchase decision.

5.3 Social/ lifestyle trends

Skin care, cosmetics and hairstyles are very important in Hong Kong since Hong Kong people are very conscious of their appearance. And also because Hong Kong is very small city with cramped nature, people are more likely to compare themselves against others.

Especially females are focusing more on their appearance. Consequently use of make-up is rising. There is a trend that the age of consumer begin using make-up is also decreasing. It means that more and more young people start to use make-up. Young students are starting to learn to make-up and dress up themselves up for events such as graduation dinner.

5.4 Technological

The advance technology boosts the development of internet. People can access the internet any where and any time through wire and wireless broadband connection such as WiFi, WiMAX and 3G. The development of internet helps companies running and improving business on both operating and promoting. It is very common for companies to have own website and use the online tools, such as e-mail, to access customers. Providing sufficient product’s information and various promotions online assist companies to increase sales and increase their presences in the market.

The ingredients of make-up products are more natural and safety due to the advanced technology. More substitute and useful ingredients are discovered and used in make-up products based on the developing research and development (R&D) in cosmetic companies. Also the cost of production process can be reduced by introducing new equipment. Those discoveries of natural and substitute ingredients, and cost reduction drive the selling price down and create more value to customers.

5

5.5

Cultural/ demographic trends

5.5.1

Demographic changes in terms of age distribution

The immediate effects of this trend on consumption patterns are unclear. However, the influx of low-skilled, low-income labor, combined with a growing population of DINK (double income no kids) households with high-income, and high-wage positions in the knowledge and service industries could mean that the consumer market for working-age people will become increasingly stratified causing growth at both the low-end and high-end of the market. (Hong Kong Population by age-group refer to Appendix 4)

5.5.2 Demographic changes in terms of income distribution

Owing to rising inflationary pressures and greater costs of living associated with growth in property prices, disposable income shows a similar pattern. Hong Kong is one of the lowest personal tax burden cities in the world. The government does not collect any sales tax, taxes on capital gains or interest income, which gives residents a greater percentage of their earnings and a greater amount of disposable income. Besides, more and more women are educated. The obtained qualification and the male-female equality encourage women to get the job. Therefore, there is increasing the number of working women. Their income is increasing comparing to that of ten years ago. (Table of Mean Annual Gross and Disposable Income refer to Appendix 5).

5.5.3 Demographic changes in terms of usage of internet service

Due to the technology development, the prices of personal computers and broadband are reducing these few years. It encourages the purchase and use of personal computers which are connected to the internet. Also the promotion of mobile online stimulates the usage of mobile telecommunication network. (Graph of Number of households with personal computers (PCs) at home and with PCs at home connected to Internet refer to appendix 6) Also Searching for information on goods or services online is increasing as raising the usage on the internet these days. (Percentage of users searching for information on goods/services online refer to appendix 7)

5.6 Physical environmental issues

The awareness of ultraviolet radiation (UV) is increasing these years. People understand that UV is one of the reasons for causing aging and dark skin. Consequently, the market of sun protection products is expanding. Besides, Hong Kong Observatory provides daily mean and maximum UV Indices. It is easy for people to use suitable degree of SPF (Sun Protection Factor) for daily use or out going use. Many companies produce the make-up combined with sun care function, such as SPF, for resisting aging problem. For the convenience and worth of product, many females buy a make-up foundation which can conceal pore and pimples, and has sun protection function. It increases the use of make-up products and also covers different types of customers including those do not use make-up before or not always make-up.

6.

Situation analysis - firm’s past performance

6.1

General trend

The Body Shop contains two products categories included colour cosmetics products and skin care products. In 2006, the market shares of colour cosmetic and skin care products are 2.4 and 1.6 respectively. However, in 2007, the market share of colour cosmetics and skin care products are 2.4 and 2.0 respectively. There is a significant improvement in the market share of skin care products, but the market share of the colour cosmetics remains stable. It can be concluded that the performance of the skin care products in The Body Shop is better than the colour cosmetics.

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6.2 Accomplishment

The Body Shop is a social responsible company, it has achieved different kind of award in the cosmetics industry during these 20 years. It is famous for its anti- animal test campaign. In 2005, it joined the Campaign for Safe Cosmetics. It is commended by Greepeace and the Breastcancer Fund for the responsible chemicals policy. In 2005, it is awarded for achieving higher standards of animal welfare, in the cosmetic category the Royal Society of Prevention of Cruelty to Animals in the UK. In 2006, PETA’s Poggy (progress) awards for the commitment to avoid animal testing.

7 SWOT analysis

This matrix is used to identify strengths and weaknesses of The Body Shop and the opportunities and treats for The Body Shop. These internal and external analyses give a clear picture of The Body Shop’s itself and outside market. (Table of SWOT Matrix refer to Appendix 8)

7.1

Strengths

Niche positioning Images of The Body Shop are very different from its competitors. It aims to provide natural products for customers. Also it has strong ethic stance which is against animal testing of cosmetics and personal care products.

Low cost sourcing The Body Shop advocated Community Trade which is a fair trade program. It purchases natural ingredients and accessories from poor countries with low cost around the world. It gains not only the lower cost raw materials but also ethical image.

Diversified geographic presence The Body Shop operates skin and body care manufacturer and retailer in 55 countries. With diversified geographic presence, market risks of it can be reduced if it only operates in single geographic region. Also it can have more growth opportunities.

7.2 Weaknesses

Declining profitability The operating margin of The Body Shop declined from 9.4% in fiscal 2005 to 8.5% in fiscal 2006. The average of industry is 16.4%. Obviously, The Body Shop could not meet the market average. Lower operating margins might indicate inefficiencies in its operating cost structure.

Weak performance in the UK and Republic of Ireland The revenue from the UK and Republic of Ireland grew only 4.8% comparing with others store sales. The weak performance of these two places may indicate loss of market share.

7.3 Opportunities

Poisonous lead found in lipstick The ingredients of cosmetic products have been concerned for many years as those may include poisonous heavy metal, lead which causes learning, language and behavioral problems. It was found in lipstick in 2007. Therefore, in October 2007, there was a campaign for safe cosmetics which 25 multinational companies participated and tested 33 brand-name lipsticks and found that one-third of the samples exceeded the limit of lead in confectionery. Multinational brands such as L’Oreal and

7

Christian Dior also had the lipsticks tested and found to contain excessive amounts of lead. This incident affected the confidence of consumers with regard not only to the brands involved, but all mass brands, especially products from Mainland China.

It is perceived as an opportunity because cosmetics products provided by The Body Shop are natural. With this positive image, it may gain more market share that those multinational brands lose. Increasing online searching As more and more people will search information online before they buy the products, and spend much time online for chatting and entertainment. Having online promotion can capture those people effectively in relatively low cost.

Increasing the usage of make-up products Make-up products with multi-function are more popular than that with single function. It is perceived that the products with multi-function are more worth to buy. Having sun care function in cosmetics products can attract those people who only use sun care products. It can increase the usage of make-up products and increase the sales.

7.4

Threats

Clashing ideology L’Oreal acquired The Body Shop in March 2006. The images of these two companies are very different. The Body Shop advocates ethical that it is against all animal testing while L’Oreal uses animals testing. It might affect The Body Shop image.

Intense competition There are a lot of competitors, including a few big companies and a large number of small companies, fighting for market share in the global market. Facing this increased competition, companies might reduce product selling prices and profit margins in order to gain market shares.

Economy unstable The economy is unstable in the world, called financial tsunami. For the reasons refer to economic consideration P.5. People are worried about economic in the future. In general, people will reduce their expenses so as to save money for future use. This consideration leads to decrease their purchase intention on inferior goods such as cosmetics products.

8. Goal

There are some financial and marketing objectives that The Body Shop wants to achieve set in this plan. These objectives are providing directions for marketing strategies and action plan, and measurement of company’s performance. For financial objectives, it is to increase revenue by 10% and to gain 20% of return on investment a year. For market objectives, it is to increase market share by 1% in a year and to increase 30% of new members every year.

9.

Market strategy

9.1

Product-market specification

The users of cosmetic from the Body Shop are the females who prefer natural & environmentally

8

friendly skin products. The users of the online and offline make up courses are the beginners of make-up. Most of them are young aged and know little about skills & tools of make-up. Because of the social needs they want to learn how to make up.

9.2 Market segmentation

We segment the market based on two segmentation descriptors – demographics and behavior. Based on demographic segmentation, we segment the market by age and there are 2 groups of customers:

young age groups and adults. Based on behavioralistic segmentation, we define the users as beginners and advanced users. The following is the graph showing the market segmentation.

Advanced A C Behavior B D Begin
Advanced
A
C
Behavior
B
D
Begin

Demographic - Age

A: young advanced users B: young beginners C: middle-aged advanced users D: middle-aged beginners

Size of circle = size of population

We choose segment B (the red circle) as our target customers of our new services, which are the young beginners having a large population group.

9.3 Targeting The target of The Body Shop is females who are aged 16-24 and computer literature. Also they are pursuing beauty but they have not enough knowledge of make-up. The potential users are the first time user of make-up or the existing customers who are using skin care products. (Figure of computer literature population refer to Appendix 9)

9.4

Positioning

The Body Shop is using differentiation strategy to posit itself as responsible company by promoting its passion, which are against animal testing, support community trade, activate self esteem, defend human rights and protect our planet. Its perceived images are social responsible, caring and natural.

10.

Market action plan

10.1

Services

Since the age at which consumers begin using make-up is also decreasing. Young students are starting to learn to doll themselves up for events such as clubbing and parties. And it is believed that those teenagers do not know the technique of make-up. It is decided to open some make-up class for them. There are different kinds of make-up classes: basic, advanced, professional. Totally, there are 8 people in a class. Everybody has an own set of cosmetics. There is a make-up advisor to demonstrate

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the techniques.

After attending the class, the class fee can be fully redeemed to be cash coupons to buy products in The Body Shop or online. Those candidates of the class will automatically become its members. (Refer to the Appendix 10) And since the make-up class is recorded, candidates can watch the video back online. (Refer to the Appendix 11) Once they become members, they can also watch those makeup classes’ videos that they do not join. (Refer to the Appendix 12) Furthermore, those members can purchase products and enjoyed a 5% off discount online. Other than that, members can also ask the make-up advisors question about make-up problem online. They can also chat and exchange their make- up information with others member through the online forum.

10.2 Price

Fixed pricing Fixed price will be adopted. Basic level will be $200 per 1.5 hours. Advanced level will be $300 per 1.5 hours. Online registration will have 5% discount. This discount is used to attract customers to see the announcement of online video courses and to reduce administration cost. Others:

All the fees of make-up class will be redeemed as coupons for buying cosmetics products. $100 per cash coupon will be given to those who attend the class. This refund will attract them to do the trial purchase. Samples will be provided during the class as teaching materials. Those who have paid for any one of the classes will become life members automatically. No life membership fee is needed. Members can access to online video make-up class free-of-charge. So that they can view the videos of any topic as they want.

Competitor based pricing Our price is based on the price of courses offered by cosmetics companies such as Estee Launder because they are our direct competitors. Course price from beauty companies (indirect competitors) such as Beauty Tech is ignored because their purpose of offering courses and the length of courses are different from us. Besides, we have to set a price below competitors’ offer. This is because the image of Body Shop is natural rather than professional cosmetics. The images of competitors are more professional in makeup than the Body Shop. But those who want to take makeup courses are looking for professional teaching. Therefore customer perceived value about Body Shop cosmetics is a bit lower than competitors. As a result, we need to set a price lower than competitors. (Refer to Appendix 13 competitors pricing)

10.3 Place

The physical place will be located at Tsim Sha Tsui because there is convenient for shopping and working. Customers can buy the products conveniently after having the make-up classes. And they can attend the classes after leaving offices. For the online location, a banner with hyperlink will be placed obviously on the Body Shop main page. This can provide a seamless way for customers to see the video and product information. Video with broad bandwidth is provided to ensure the shortest loading time. Information of the products used in each video will be displaced under the video. Shopping cart icons will also be placed next to the product names to provide convenient online purchase.

10.4 Promotions

10.4.1 Offline promotion Public relations

10

Since this is a new service for The Body Shop to launch the make-up class. In order to create awareness, it is designed to launch a make-up teaching show in Longham place in Mong Kok. For the show, there will be 4-5 make-up advisors on the stage to demonstrate make-up techniques and audiences will be invited as make-up models. There will be also a registration booth for those interested audiences to join the classes immediately and an early bird discount for the course will be offered at that time.

Short text messages (SMS) There is a trend of using SMS among younger ages. In order to allow members to receive the first hand information about the classes, once there are new make-up classes announced. New make-up classes information will be sent to those The Body Shop members for both normal members and make- up class members who would like to receive the SMS.

Roadshow in University Once enter into the University, students are having more chance to join different kinds of High Table dinners and annual dinners. It is a must for girls to wear proper and with make-up. However, those University female students may not know how to make-up for particular events. It provides chances for The Body Shop to promote its make-up class to University students. Booth for registration of the make-up class and products counter will be set up in the University. Students not only can buy the products at a discounted price, but also can register the make- up class.

Leaflet in the counter Leaflet about the make-up class will also be designed to provide more information on the make-up class. It will be put on the shelf near the door. And it will also be distributed to customers who buy products from The Body Shop. (Sample of leaflet refers to Appendix 14)

Print advertisement Printed advertisement about the make- up class will also designed and posted in the <MORE> magazine which is a cosmetic magazine enclosed inside the <Oriental Sunday>. It is the most popular female magazine in HK. Those aged 18-24 would like to read this magazine. Also the <MORE> magazine talks about different kinds of cosmetics products and products will be ranked by the editors. Many young girls greatly depend on their comments to buy the cosmetic products.

10.4.2 Online promotion As more and more people will search information about products or service online and access the internet to the search engines, forums and blogs, using online promotion can reach this large amount of people. It can increase the promotion effectiveness. The cost of this promotion is relative lower with large coverage of people. There are four types of online promotion, internet advertising, marketing public relations, sales promotion offers and direct marketing.

Internet advertising Search engines and forums are the popular websites to be accessed. Placing banner ads on those websites, such as Yahoo, Google and discussion.com.hk are an easy way to reach the target customers. The banner ad contains The Body Shop logo and information of make-up class. It will be represented as flash which has animation for drawing browsers attention. The browsers can just click the banner ads to link to The Body Shop website if they are interested in the make-up class. (Sample of banner ad refer to Appendix 15)

Marketing public relations

11

The Body Shop has its own website which contains information of company, products and company’s events. The details of make-up class will be placed in the website. Potential customers can attend the class and get the information online. In addition, online forum is provided. After attending the class, members may have questions about make-up. They can raise questions and chat with others’ members in the website.

Sales promotion offers Members can redeem the cash coupons from receipt of make-up class, which are the same value as the fee of make-up class, after attending the class. The validity of coupons is three months. Those members can buy make-up related products by using the coupons. Besides, make-up samples will be given to members after the class. These two methods can increase the product trials and increase the sales.

Direct marketing Members’ information is collected after the class. If they want to receive information of make-up products and class, The Body Shop will send direct e-mail about the latest make-up products and the latest make-up class video to them. It is more effective to access those target customers by this permission marketing.

11. Conclusion

The new make-up class service of The Body Shop is to create customers’ value and experience. Although the financial situation of Hong Kong is not as good as before, for girls there is still a need of dressing up themselves. Furthermore, the increasingly concern about the health products provides the opportunity for The Body Shop to promote their products and services since it is an organic and natural orientated skin care company. From the past performance, it is found that the performance of the cosmetic parts of The Body Shop is not as good as the skin care part. In order to achieve the objective of increasing the market share of 1% in the colour cosmetics market, it decides to launch a new service: make-up classes to allow customers o experience its products and increase their value. Since customers can use the organic and natural products in class, they can experience a fresh and health feeling. Furthermore, the class fee can be fully redeemed as cash coupon to purchase products which in turn the class is free of charge. Not only can customers can benefits from it, but also The Body Shop, as the customers try and experience its products. Once they try it, they may find it good to use, and create repeat purchase intention. In order to made the service more comprehensive, online make-up classes review is available. Other than that, professional consults on the make-up problems are also available online. With the convenience place of having the lesson in Tsim Sha Tsui and a series of offline and online promotions about the services, it is believed that the new service must create value and experience to customers.

12

12.

Reference

‘AmorePacific Corp – Cosmetics and Toiletries – South Korea’ 2008, Euromonitor International:

Local Company Profile. Retrieved October 19, 2008, from Global Market Information Database.

‘Body Shop Plc, The – Cosmetics and Toiletries - Wo rld’ 2007, Euromonitor International: Global Company Profile. Retrieved October 18, 2008, from Global Market Information Database.

International Market Research – Cosmetics and Toiletries 2007. Retrieved from October 18, 2008.

http://strategis.ic.gc.ca/epic/site/imr-ri.nsf/en/gr110011e.html

from

http://us.clarins.com/webapp/wcs/stores/servlet/ContentType_about@@clarins.committed@@beauty

.excellence@@produit_-1_10051_10204_true

Product

safety

and

efficacy,

Safe

products

2008.

Retrieved

October

18,

2008,

The Body Shop 香港 2008. Retrieved October 17, 2008, from http://www.thebodyshop.com.hk/tc/index.html

Voles International Ltd – Cosmetics and Toiletries – Hong Kong, China’ 2008, Euromonitor International: Local Company Profile. Retrieved October 19, 2008, from Global Market Information Database.

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13.

Appendix

Appendix 1 Colour cosmetics brand shares by retail value 2004-2007

13. Appendix Appendix 1 Colour cosmetics brand shares by retail value 2004-2007 14

14

Appendix 2 Gross Domestic Product in Hong Kong Source: http://www.info.gov.hk/gia/general/200808/15/P200808150134.htm Gross Domestic Product and its main expenditure components and the main price indicators (year-on-year rate of change (%))

2006 # 2007 #

2007

2008

 

Q1 #

Q2 #

Q3 #

Q4 #

Q1 #

Q2 +

Change in real terms of GDP and its main expenditure components (%)

 

Private consumption

6.0

7.8

4.5

6.6

10.6

9.5

7.9

3.1

expenditure

(1.5)

(3.0)

(3.2)

(1.6)

(-0.1)

(-1.6)

Government consumption

0.1

2.3

2.3

3.0

1.5

2.3

0.3

3.5

expenditure

(1.6)

(-0.3)

(-0.3)

(1.2)

(-0.4)

(3.1)

Gross domestic fixed capital formation

7.0

4.2

0.8

8.1

-0.5

8.2

9.9

4.3

of which :

Total exports of goods

9.3

7.0

6.5

10.0

6.2

5.7

8.3

4.4

 

(0.3)

(3.0)

(0.2)

(1.8)

(1.4)

(1.0)

Imports of goods

9.2

8.8

7.1

11.5

8.1

8.5

8.4

4.9

 

(0.1)

(4.1)

(0.5)

(3.1)

(-1.1)

(2.4)

Gross Domestic Product

7.0

6.4

5.5

6.2

6.8

6.9

7.3

4.2

 

(1.7)

(1.5)

(2.1)

(1.5)

(2.0)

(-1.4)

Change in the main price indicators (%)

GDP deflator

-0.3

3.0

1.4

2.0

3.2

4.9

2.3

2.0

 

(0.6)

(0.9)

(1.1)

(2.1)

(-1.7)

(0.6)

Composite Consumer Price

2.0

2.0

1.7

1.3

1.6

3.5

4.6

5.7

Index

(*)

(0.3)

(0.8)

(2.2)

(1.1)

(1.5)

Change in nominal GDP (%)

9.5

7.0

8.4

10.2

12.1

9.8

6.3

Notes : Figures are subject to revision later on as more data become available. Seasonally adjusted quarter-to-quarter rate of change is not applicable to gross domestic fixed capital formation, as no clear seasonal pattern is found for the category due to the presence of considerable short term fluctuations.

(#) Revised figures.

(+) Preliminary figures.

( )

(*) Change of less than 0.05%.

Seasonally adjusted quarter-to-quarter rate of change.

15

Appendix 2 Gross Domestic Product in Hong Kong Source: http://www.censtatd.gov.hk/FileManager/EN/UTIL_STAT_CHART/030chart06.gif

Gross Domestic Product in Hong Kong Source: http://www.censtatd.gov.hk/FileManager/EN/UTIL_STAT_CHART/030chart06.gif 16

16

Appendix 3 Composite Consumer Price Index in Hong Kong Source: http://www.hkeconomy.gov.hk/en/pdf/prices.pdf

Appendix 3 Composite Consumer Price Index in Hong Kong Source: http://www.hkeconomy.gov.hk/en/pdf/prices.pdf 17

17

18

Appendix 4 Hong Kong Population by age-group Source: http://www.hkeconomy.gov.hk/en/pdf/demo.pdf

18 Appendix 4 Hong Kong Population by age-group Source: http://www.hkeconomy.gov.hk/en/pdf/demo.pdf

19

Table: Population by Age Group, 1996, 2001 and 2006 2006Age Group 1996 2001 Number %
Table:
Population by Age Group, 1996, 2001 and 2006
2006Age
Group
1996
2001
Number
% of total
Number
% of total
Number
% of total
0 - 14
1 151 038
18.5
1 109 417
16.5
939 675
13.7
15
- 24
869 511
14.0
920 445
13.7
909 005
13.2
25
- 34
1 188 424
19.1
1 108 529
16.5
1 052 126
15.3
35
- 44
1 178 522
19.0
1 360 487
20.3
1 248 855
18.2
45
- 54
683 569
11.0
960 417
14.3
1 193 788
17.4
55
- 64
516 937
8.3
502 042
7.5
668 101
9.7
65+
629 555
10.1
747 052
11.1
852 796
12.4
Total
6 217 556
100.0
6 708 389
100.0
6 864 346
100.0
Source :
2006 Population By-census Office, Census and Statistics Department

Appendix 5 Mean Annual Gross and Disposable Icome Source: http://www.portal.euromonitor.com/passport/HongKongChina.aspx

20

5 Mean Annual Gross and Disposable Icome Source: http://www.portal.euromonitor.com/passport/HongKongChina.aspx 20

Appendix 5 Employed Persons by Monthly Employment Earnings and Sex Source:http://www.censtatd.gov.hk/products_and_services/products/publications/statis

tical_report/social_data/index_tc_cd_B1130303_dt_latest.jsp

31-7-2008

tical_report/social_data/index_tc_cd_B1130303_dt_latest.jsp 31-7-2008 21

21

Appendix 6 Number of households with personal computers (PCs) at home and with PCs at home connected to Internet Source:http://www.censtatd.gov.hk/products_and_services/products/publications/statis

tical_report/commerce_and_industry/index_tc_cd_B1110006_dt_latest.jsp

20-12-2007

tical_report/commerce_and_industry/index_tc_cd_B1110006_dt_latest.jsp 20-12-2007 22

22

Appendix 7 Percentage of users searching for information on goods/services online Source:http://www.censtatd.gov.hk/products_and_services/products/publications/statis

tical_report/commerce_and_industry/index_tc_cd_B1110006_dt_latest.jsp

20-12-2007

tical_report/commerce_and_industry/index_tc_cd_B1110006_dt_latest.jsp 20-12-2007 23

23

Appendix 8 Table of SWOT Matrix

Appendix 8 Table of SWOT Matrix 24

24

Appendix 9 Figure of computer literature population Source:http://www.censtatd.gov.hk/products_and_services/products/publications/statis

tical_report/social_data/index_tc_cd_B1130232_dt_detail.jsp

12-2007

tical_report/social_data/index_tc_cd_B1130232_dt_detail.jsp 12-2007 25

25

Appendix 10

Appendix 10 26

26

Appendix 11

Appendix 11 27

27

Appendix 12

Appendix 12 28

28

Appendix 13 Price of competitors Missa:

Basic level

Advance level

$150 - $200 for 1.5 hrs

$250 - $300 for 2 hrs

$50 coupon

$50 coupon

Bobbi Brown

Basic level

Intermediate level

Advance level

$980 for 3 hrs

$980 for 3 hrs

$980 for 3 hrs

Free samples

Free samples

Free samples

29

Appendix 14 Sample of leaflet

Appendix 14 Sample of leaflet 30

30

31

Appendix 15 Sample of banner ad
Appendix 15
Sample of banner ad

[鍵入文字][鍵入文字]

Marketing Plan for The Body Shop

32