body shop entering tier 2 city( india)
TRANSCRIPT
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"The business of business should not just be about money, it should be about responsibility. It should be about public good, not private greed."
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Dame Anita Roddick Human Rights Activist Founder of The Body Shop
ABOUT THE BRANDHeadquarters in Littlehampton, West Sussex, England
Founded in 1976 by Anita Roddick
2,400 stores in 61 countries
2nd Largest cosmetic franchise in the world
Now part of the L'Oréal corporate group
The brand also supports anti Animal Testing laws and Community Trade
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THE PARENT COMPANYThe Body Shop is now a part of the L'Oréal family. Founded by Eugène Schueller in 1909
Now the number 1 cosmetic group in the world.
In 2006, The Body Shop was purchased by L'Oreal.
authentic advocate and supporter of the values at Body Shop.
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OBJECTIVES
To conduct an in-depth study of the brand THE BODY SHOP & it’s current locations and the tier 2 city AGRA.
To study the marketing mix of the brand with respect to Product, Price, Place & Promotion.
To conduct a SWOT and a PEST analysis on the brand in the existing locations.
To study the various competitors of the brand in the Indian Market.
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MILESTONES
1976First Shop in Brighton UK
1992
700 Stores
2004
1980 Stores all over the world
2006
June 6 Launched in INDIA
2006July 12th became a part of L'Oréal group
2015
15 Millionconsumers in INDIA
MILESTONES
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CORE VALUES
Against animal testing
Supporting community trade
Activating self esteem
Defending human rights
Protecting our planet
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PRODUCT CATEGORY & PRICE RANGE
BATH AND BODY CAREPrice RangeRs.175 – Rs.1795
SKIN CAREPrice RangeRs.295 – Rs.2695
HAIR CARE
Price RangeRs.650 – Rs.1095
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MAKE UP
Price RangeRs.600 – Rs.2295
FRAGRANCE
Price RangeRs.375 – Rs.2095
MENS
Price RangeRs.195 – Rs.1895
ACCESSORIES
Price RangeRs.175 – Rs.1595
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LOCATION
127 stores spread across 19 states.
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THE BODY SHOP PROMOTIONS
Exclusive online
discounts and
offers available on
selected products
as a part of
Women’s Day
celebration.Jacqueline
Fernandes was
recently
announced as
the new face of
’The Body Shop’.“Love Your Body” Loyalty Card10% off on all MRP purchases. Exclusive offers and promotions.
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ONLINE PROMOTIONS
Youtube
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ON-GOING CAMPAIGNS AT THE BODY SHOP
SUPPORT HER EDUCATION is
a joint campaign between The
Body Shop India and Food For
Life Vrindavan(FFLV) to educate
100 underprivileged girls in
2014-15.
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PROMOTIONAL TOOLS PROMOTIONAL METHODS
PUBLIC RELATIONS DIRECT MARKETING
SALES PROMOTIONS
PERSONAL SELLING
SOCIAL MEDIA
ELECTRONIC
OUTDOOR
DIGITAL
INTEGRATED MARKETING COMMUNICATION
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Interactive Sales
Staff
Quality of
Ingredients used
Product Range
Price Range
Popularity
No. of retail storesStore Layout
Promotional
activities
COMPETITIVE ANALYSIS
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SWOT AnalysisSTRENGTH WEAKNESS
OPPORTUNITY THREAT
Sale volume restricted by limited number of outlets.
• products are in declining stage• Problem in franchisee system• High operating cost
• Increasing awareness for eco-friendly products
• Growth in men’s skin care products• Increasing - online buyers• Ban of sale & marketing of animal tested
products in European Union• Increasing -independent working women• Increasing purchasing power of
consumers.
• Strong competition • Environmental management system is
not certified to an official standard.• Brand comparison- L'Oreal products
are considered unethical that may be harmful for their reputation
• Economic downturn can hamper sales
• High Brand Loyalty, Good Quality Product and Services
• National Capital Region, Cosmopolitan city• Brand( Name, Image, Ethics, Values,
Natural ingredients) • L’Oreal advertisements and marketing
helps in increasing sales
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Pest analysis of the brand
POLITICAL ECONOMICAL• One of Largest
Democracy• Business environment
affected by multivariate political factors
• Well developed-taxation system
• 51% FDI-multi brand retail
• E-commerce restricted for FDI
• 30% sourcing from India for Foreign brands
• Stable economy since Indian reform poilicies
• GDP growth rate 5% (2014)• Delhi largest commercial
center• Several industries have
evolved (BPO, IT)• Multi lateral agreement in
trade• Market economic policy
spreading
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SOCIAL TECHNOLOGICAL
• Improving standard of living• More westernization• Willingness to spend• High level of education in
Delhi/NCR• Increased product quality
consciousness• Changing demographics Literacy rate of Agra in 2011 - 71.58
• E-commerce sector –unprecedented growth
• Foreign brand can offer partnership to sell the products
• High connectivity , ensures good communication
• Improve in R&D• Increase in amount of internet
users• Plastic money(credit cards)
boosted growth
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TARGET CONSUMER (DELHI)
Beauty and health conscious
From 19 to 40 years old
Working
Social Elite class
Aware of economical and social aspects
Cosmopolitan Customers
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The Body Shop has already expanded into various tier 2 & tier 3 cities leaving out Agra where there are lot of potential customers
• aims at the Indian mass consumer
• does not intend to be a super-premium brand.
• constantly lowering their product prices
• PLAN - introduce the brand in the Indian tier 2 city, Agra & position it as a daily use / daily care product.
WHY AGRA?
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INDIAN CONSUMER
CLASSIFICATION (MCKINSEY) DESCRIPTION
Globals super-rich elite
Strivers middle class
Seekers middle class
Aspirers Lower middle class
Deprived Underprivileged or poor
Increased disposable income
Purchasing power has doubled over 2 decades
Shifting from Aspirers to Strivers
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LOCATION CLASSIFICATION
DELHI
THINKERMature &satisfied people who value order, knowledge, and responsibility.
EXPERIENCERyoung, enthusiastic, and impulsive
AGRA
BELIEVER conservative, conventional people with concrete beliefs
THINKERMature &satisfied people who value order, knowledge, and responsibility.
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PROPOSED PRODUCT CATEGORY & PRICE RANGE
BATH AND BODY CAREPrice RangeRs.175 – Rs.1795
SKIN CAREPrice RangeRs.295 – Rs.2695
HAIR CARE
Price RangeRs.650 – Rs.1095
25%
12%15%
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MAKE UP
Price RangeRs.600 – Rs.2295
FRAGRANCE
Price RangeRs.375 – Rs.2095
MENS
Price RangeRs.195 – Rs.1895
ACCESSORIES
Price RangeRs.175 – Rs.1595
12% 15%
18% 6%
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PLACE
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TRADE AREA ANALYSISPRIMARY AREAS Pratap Pura Naulakha Katlupur Sultapura Agra Cantt
SECONDARY AREAS Arjun Nagar Idgah Colony Shahganj Rasulpur Baluganj
TERTIARY AREAS Gopal Pura Civil Lines Transport Nagar Dhandhupura Trans Yamuna Colony
TERTIARY TRADING AREA
Location Sadar Bazar, Agra
Date of opening June 6, 2015Location type High Street
Unique Positioning of the High Street
most visited & famous shopping street
Footfall 40-50 (weekdays) & 80-100(weekend)
Total built up area of our store
900 sq.ft
No. Of Stores 55
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Accessibility Easily accessible and well connected
Visibility Signage can be seen from the main traffic flow
Parkingparking space – approx. 300 cars of which 50 cars can be Parked in front of the store
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UK
Generation of Idea
UK
Sampling
ENGLAND
Sourcing
GURGAON, INDIA
Warehouse
By Road 6-8 hrs
JAIPUR, INDIA
By Air
Clearance-3-4ays
UK
Manufacturing
AGRA, INDIA
In store
By Road 3-4 hrs
SUPPLY CHAIN/ DISTRIBUTION CHANNEL
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Process Time TakenGenerating The Idea May –June
1 month
Planning
July1 month
Selection Proto Final
August 1monthSeptember 1 week
Placing Final Order
October- November 1 month
Pre-Production Date November- December1 month
TIME AND ACTION CALENDER
Accumulation of Sourced Raw materials
December – January1 month
Production Date January – February 1 month
Delivery Date March 2nd week
Warehouse May1st week
In store May 3rd WeekLaunches on June 6
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COMPETITOR ANALYSIS IN AGRA4Ps FABINDIA BODY SHOP PRODUCT
PRICE
PLACE
PROMOTION
offers assortment- grocery & skincare products as well as apparels.very less variety in personal care/skin care products extremely low from Rs.95- Rs.1190No discount or sale on its products
Sanjay Place
minimal only print ads during promotions.
offers great deal of products for men & women both The variety it offers is commendable.
Averagely priced from Rs.175- Rs.2695offers discount and sales on its products
Sadar Bazar
Has a promotional strategy
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PROMOTIONAL TOOLS
PROMOTIONAL METHODS
PUBLIC RELATIONS DIRECT MARKETING
SALES PROMOTIONS
PERSONAL SELLING
SOCIAL MEDIA
ELECTRONIC
OUTDOOR
DIGITAL
PROPOSED IMC
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TARGET CONSUMER (AGRA)
18-35
Working/Student/Homemaker
High Disposable income
Emerging from being conservative and conventional to people who value order and knowledge
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SWOT AnalysisSTRENGTH WEAKNESS
OPPORTUNITY THREAT
• Lack of advertising • Slightly hesitant and reserved
customer base• Sales restricted to stores• Lack of consumer awareness• Non existent in Agra
• Untapped potential customer• Major tourist location • Growth in men’s skin care products.• Increasing online buyers.• There is no direct competition for
the brand
• Resistance towards buying a new brand
• Highly diversified markets.• Economic downturn can hamper
sales
• Leading player in niche market• Brand( Name, Image, Ethics, Values,
Natural ingredients) • 81% literacy rate• High disposable income• Aims to enhance its image in local
market
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CONCLUSION
All analysis and observations
POSITIVE
We’re Game For LAUNCHING THE BODY SHOP IN AGRA
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Game time see you!