SITUATION ANALYSIS

(Born Lippy Pot Lip Balm by The Body Shop)

FINAL YEAR PROJECT 1

Nur Lyana Binti Mohd

1131122555

1.1 Introduction

Founded in 1976 in Brighton, England, by Anita Roddick, The Body Shop® is a global beauty

brand built on making people feel so good – face, body and soul. The Body Shop® seeks to make

a positive difference in the world by offering high-quality, naturally-inspired skincare, hair care

and make-up produced ethically and sustainably. The Body Shop® pioneered the philosophy that

business can be a force for good and after being acquired by L'Oréal in 2006, it is scaling up its

vision. The Body Shop® has more than 3,000 stores in more than 60 countries.

The Body Shop® was the first international cosmetics company to introduce fair trade to the

cosmetics and toiletries industry in 1987. Through a unique Community Trade (CT) program,

The Body Shop® sources fine raw ingredients and accessories from the four corners of the globe,

with a commitment to trade fairly with small-scale farmers, traditional artisans and rural co-

operatives that are experts in their field.

Rampai-Niaga Sdn Bhd, is the sole franchisee for The Body Shop business in West Malaysia and

Sabah. Helmed by Managing Director, Datin Mina Cheah-Foong, and Executive Director, Dato’

Simon Foong, the first shop was opened in Plaza Yow Chuan in December 1984, and has since

then rapidly evolved into a wide network of 74 stores, a majority of which are located

strategically in leading shopping centers within urban centers throughout West Malaysia. In

2015, Rampai Niaga Sdn Bhd acquired the franchise in Sabah, adding 17 new stores under its

wing.

1.2 Problem Statement and Issues

Malaysia only has 2 seasons, it is wet and dry. Having said that, it can and does rain heavily at

any time of the year, with most downpours and thunderstorms occurring in the morning. The wet

season lasts from November to March, with November being the wettest month of all. If you

visit in November, you can expect it to rain on up to 20 days of the month. The dry season runs

in theory from May to September, with the driest month of the year being June with just 10 rainy

days a month.

In past few month, from January to March 2016 Malaysia attacked by El Nino phenomenon. El

Nino is a weather occurrence where temperatures around the Pacific Ocean near the equator go

up higher than usual. This issue will bring up to the health issue which can cause high fever,

dengue, flu, dryness skin, etc.

Dry skin can occur just about anywhere on your body, but when it develops around your mouth

it’s especially noticeable. This doesn’t just happen to people with dry skin, either; even if your

skin is oily or otherwise normal you can still experience some dryness in the mouth area. So, to

prevent dry chapped lips, first of all, drink plenty of water. Being dehydrated can cause dry,

chapped lips. Try to increase the amount of water you drink to help keep your lips hydrated and

put on lip balm on your lips, helps to seal in moisture and protect your lips from outside

irritations.

1.3 Objective and Aims

The objective of this activity campaign is to:

Improved market share also shows that the products may be more desirable.

Achieve superior brand recognition.

Build brand loyalty.

The aims of this activity campaign is to:

Make people acknowledge about skincare.

Make people know how and when to use the product.

Let people experience that, lip balm it is not only for female.

Protect lips from dryness.

2.1 Product Name

Born Lippy Pot Lip Balm (The Body Shop)

2.2 Product Classification

Cult lip balm in a pot. Gives natural color, fruity flavor and moisture for lips.

2.3 Product Characteristic

Born Lippy Pot Lip Balm is in a lip care product.

Price per unit is RM 23.00

Packaging of the product is in a round plastic pot with cover.

2.4 Product Range

Strawberry flavor in Red color.

Raspberry flavor in Dark Pink color.

Passion berry flavor in Purple color.

2.5 Distribution

The Body Shop use direct distribution. The Body Shop distribute directly its product throughout

all of their 91 stores in Malaysia include Sabah. The Body Shop good also can be purchase by

online from their very own website, www.thebodyshop.com.my. The Body Shop goods also can

be purchase from the other country by online in the same The Body Shop website but in a

different country, such as, USA, UK, New Zealand, Australia, Canada and the other 60 country.

The Body Shop goods also can get from e-retailer such as, www.amazon.com and

www.lazada.com.my.

2.6 Product Life Cycle

The Body Shop Born Lippy Pot Lip Balm sale will be increase when during every festive season,

like Valentine’s Day and Christmas because the price will be cheaper and the packaging will be

wrap nicely.

2.7 The Brand

The very first The Body Shop store opens on 26th March 1976 in Brighton, on the south coast of

England. By 1978 a kiosk in Brussels became the first overseas franchise, and by 1982 new

shops open at the rate of two per month. In 1985, in its first year as a public company, The Body

Shop sponsor posters for Greenpeace. A year later, it creates an Environmental Projects

Department of its own, while the first major window campaign for The Body Shop is "Save the

Whale" with Greenpeace, in 1986. The first Community Trade product for The Body Shop, a

Footsie Roller, is produced in 1986 by a ‘Supplier’ in southern India. This trade in Footsie

Rollers has evolved into the current trade with Teddy Exports in India, one of our key

Community Trade suppliers. By 1990, just one year after launching in the USA, there are 2,500

applications for a franchise, with demand for The Body Shop products ever-growing, driven by

expansion which saw the company trading in 39 countries within just fourteen years after the

opening of the very first shop! In 1990 The Body Shop Foundation is established, a charity

which funds human rights and environmental protection groups.

2.8 Brand Image and Implication

The Body Shop has been in the market for almost 32 years, mostly all Malaysian recognize this

beauty and skin care brand, since everyone is start using fragrance and skin care product,

because of the affordable price and every festive promotions, some of the customer will

remember of the packaging and the discount every season will come. The quality of the brand is

good based on the product review on the internet and it is very affordable, even though they have

many competitors, but a loyal customer would still buy the brand.

2.9 Strength and Weakness

Strength Weakness

The product has been recognized in

early 80’ in Malaysia.

Three types of fruity flavor.

Cheaper than any other beauty brand.

Beautiful packaging while festive

season.

People think that lip balm is only for

female.

The promotion is only available during

festive season.

2.10 Advantage and Disadvantage

Advantage Disadvantage

Easy to carry

It can wear anytime weather in hot and

cold weather.

Available only in store.

Using finger to apply.

Easy melt in hot weather (inside car).

2.11 Unique Selling Proposition (USP)

This product is suitable for dry lips, the ingredient is also very suitable for dry lips problems. It is

has 3 different flavor which is strawberry flavor in red color, raspberry flavor in dark pink color

and passion berry flavor in purple color. The product is special because it is only available in The

Body Shop store. There is no other store sell this product. This product also suitable for festive

gift on Christmas or Valentine’s Day because of the packaging.

2.12 Promotional History and Advertising Schedule

The Body Shop has been in the industry for 32 years, the business is increasing every year and

they also have created many events throughout the years. On the social media, Facebook. They

are promoting their new product, posting their banner, promotion and advertise their campaign.

The Body Shop also done a competition with their product. Which is, post the product that

customer used, # and post it on the Instagram. The Body Shop also make a campaign at The

Curve, Selangor. The campaign name is, ‘Earth day is Everyday’. On April 2016. The campaign

is to celebrate Earth day by giving away free potted plants. The Body Shop release their new

product on June 2016 and launch in KLCC which is #summerlovin campaign to promote their

new product of flower scent.

2.13 Positioning Statement

To keep lips away from dryness, this product is really affective and really works on dry lips. It

also have three flavor. Easy to carry and suitable for who really care about personality.

3.1 Company Overview

The Body Shop International plc is a British cosmetics and skin care company owned by

L'Oréal. The Body Shop is selling body care and beauty products such as toiletries, skin care,

makeup, bath accessories, perfume, body mist, body spray, foot care, hair care and so much more

they also have men’s product such as, fragrance, shaving, and body care product. Body care

product and fragrance is the bestselling product which is the highest profit came from. Most of

the lip balm product from The Body Shop product is basically from safe ingredient and fruity

taste and the product is from nature ingredient.

3.2 Business Description

The Body Shop believes that there is only one way to beautiful – nature’s way. Having believed

this for many years, The Body Shop has constantly sought out wonderful natural ingredients

from all four corners of the globe to bring you products bursting with effectiveness to enhance

your natural beauty. Whilst doing all of this The Body Shop also strives to protect this beautiful

planet and the people who depend on it not because it’s fashionable, but based on the belief that

it’s the only way. The Body Shop has always been recognized for having a unique approach to

packaging and in 2008 The Body Shop introduced 100% PCR bottles (post-consumer recycled)

PET bottles (polyethylene terephthalate)”

”The unique Community Trade program creates sustainable trading relationships

with disadvantaged communities around the world and provides essential income to more than

25,000 people across the globe. Over 65% of products contain Community Trade ingredients or

are produced through the Community Trade program.

3.3 Company History

Anita Roddick is the owner of the The Body Shop, she opens a small shop that sells natural-

ingredient cosmetics on 1976. On 1977, Anita Roddick’s husband Gordon Roddick joins the

company, and the couple decide to franchise the operation. In 1984 The Body Shop goes public

with 138 stores in operation. In 1987 The Trade Not Aid program begins. 1988, The Body Shop

stores are opened in the United States. In 1993 the company files suit against a television

program that claims it uses products that have been tested on animals. On 1994, The Body Shop

begins using traditional methods of advertising for the first time. 1998, Patrick Gournay is named

CEO; the company forms a United States-based joint venture with the Bellamy Retail Group

LLC. 1999, the company stops manufacturing as part of a restructuring program. 2002, Anita and

Gordon Roddick step down as co-chairs of the company.

3.4 Key Members

Founder of The Body Shop: Dame Anita Roddick

The Body Shop At Home Consultant, United Kingdom: Beverley Ashton

Global Head of Fragrance, London, United Kingdom: Rebecca Phillips

Store Manager, Dordrecht, The Netherlands: Iris Dicke

Training and Development Manager, Hong Kong & Macau: Peggy Cheng

Managing Director (Malaysia/Rampai Niaga Sdn Bhd): Datin Mina Cheah-Foong

Executive Director (Malaysia/Rampai Niaga Sdn Bhd): Dato’ Simon Foong

3.5 Location and Subsidiaries

GLOBAL HEAD OFFICE

The Body Shop International plc

Knollys House, 17 Addiscombe Rd

Croydon CR0 6FN, London.

MALAYSIA

Rampai-Niaga Sdn Bhd

(A The Body Shop Franchise owned and operated under licence by Rampai-Niaga Sdn Bhd

(117711-H))

No. 5 Jalan USJ10/1C

47620 UEP Subang Jaya

Selangor, Malaysia

3.6 Brand Major and Product Service

The Body Shop carries a wide range of products for the body, face, hair and home. The Body

Shop claims its products are "inspired by nature" and they feature ingredients such as marula oil

and sesame seed oil sourced through the Community Fair Trade program. In 2010, The Body

Shop produced its first ECOCERT certified organic skincare line, Nutriganics. Following the

launch of Nutriganics, The Body Shop reformulated their hair line to contain no colorants

(Rainforest Hair Care), and produced a new line of deodorants that contain no aluminum salts,

and use volcanic minerals as a substitute.

Body Butters (including Moringa, Satsuma, Strawberry, Olive, Shea, Mango and

Coconut)

Body products such as body scrubs, body butter/hand creme and bath lilies

Make Up (including mascara, lipstick, lip butter, lip gloss, eye shadow and loose powder)

Full skin care ranges (including Tea tree, Vitamin C, Vitamin E, Aloe vera and Seaweed)

Pediatrician approved baby range

Men's skin care (Including maca root and white musk)

Hair care (including their famous Banana shampoo and Banana conditioner)

Fragrances (Women's and Men's)

Bath products including shower gels and solid soaps

The company did not directly compete against the traditional cosmetics companies, which

marketed their products as fashion accessories designed to cover up flaws and make women look

like fashion models who appear in lavish ads. Instead, The Body Shop offered a line of products

that promised benefits other than appearance healthier skin, for instance rather than simply a

better-looking complexion.

3.7 Corporate Vision

A vision or strategic intent is the desired future state of the organization.

The Body Shop does not explicitly state its vision. However, its focus on the customers

could be considered as part of its vision.

Our predominant focus is on being a world-class retailer, offering our customers prestige

products at value-prices, with excellent customer-service.

3.8 Corporate Mission

To dedicate our business to the pursuit of social and environmental change.

To creatively balance the financial and human needs of our stakeholders: employees,

customers, franchisees, suppliers and shareholders.

To courageously ensure that our business is ecologically sustainable: meeting the needs

of the present without compromising the future.

To meaningfully contribute to local, national and international communities in which we

trade, by adopting a code of conduct which ensures care, honesty, fairness and respect.

To passionately campaign for the protection of the environment, human and civil rights,

and against animal testing within the cosmetics and toiletries industry.

To tirelessly work to narrow the gap between principle and practice, whilst making fun,

passion and care part of our daily lives.

3.9 Company’s Current Promotional Strategy

• November, 2015 –The Malaysian Tiger Campaign

• October, 2015 – Ride for Peace Campaign

• April, 2015 – Celebrating Earth Day, The Body Shop Way Campaign

• March, 2014 – Be More Than Beauty Campaign

• 2014 – Anita Week Campaign

• 2014 – International Coastal Cleanup Campaign

• 2013 – Support against Animal Testing Campaign

• 2013 – International Women’s Day Campaign

• 2013 – The Body Shop Rises Against Gender Violence - One Billion Rising Campaign

• 2013 – The Body Shop Gives Back Campaign

• 2012 – Where’s My Mama 2.0 Campaign

• 2011 – Where’s My Mama Campaign

• 2011 – Putting an End to Child Sex Trafficking Campaign

• 2010 – AIDS Aware Campaign

• 2010 – TBS Gives NGOs a Break Campaign

• 2009 –Yes, Yes, Yes to Safe Sex Campaign

• 2009 – Annual Beach Clean Up Campaign

• 2009 – Stop Sex Trafficking Of Children And Young People Campaign

3.10 Product’s Sales History

3.11 Current Marketing Objective

Reinvigorate the body shop in the minds of women who have previous experience with the

brand to increase the market share. The body shop can do some campaign like give people

free samples and show people the material of the product.

Promote awareness of the Body Shop core brand and specific men's grooming product

offerings through targeted channels such that at least 35% of the target demographic are

aware of the products and the unique values of the Body Shop. In Hull there are marginally

more males in the general population than females whilst in the East Riding there are

marginally more females, this is likely to be a function of the younger population in the city.

3.12 Media Expenditure

The Malayan Tiger - The Malaysian Conservation Alliance for Tigers (MYCAT)

thanks The Body Shop Malaysia for the donation of RM191, 254.82 towards its tiger

conservation program.

Ride for Peace - In conjunction with the International Day of Peace celebrated on

21st September, The Body Shop Malaysia got on their bicycles and decided to cycle

for peace.

Celebrating Earth Day, The Body Shop Way - The Body Shop gave away 1,000

tree saplings at The Curve today in conjunction with Earth Day. In collaboration with

Free Tree Society, The Body Shop distributed 16 variants of plants and encouraged

Malaysians to plant trees no matter where they lived.

Be More Than Beauty - To commemorate our 30th year in Malaysia, The Body

Shop wanted to celebrate International Women’s Day differently. For some time now

we have become increasingly concerned.

International Coastal Cleanup - Every year, in September, volunteers come

together for the Coastal Cleanup Day all around the world. The event is part of the

International Coastal Cleanup, organized by the Ocean Conservancy.

4.1 Consumer’s Characteristic

4.1.1 Current Consumer’s Characteristic

Age – 18 – 40 years

Gender – Both, male and female

Education – Students, working adult and housewife

Income Range – student allowance could be RM200 – RM600 months, working adult

should be RM800 – RM3,000

Race – any race

Geographical location – Malaysia and 60 other countries (Urban)

4.1.2 Psychographics - Identify “current” psychographics situation;

• Base on loyalty perception in every brand of the skincare product

• Consumer learn how to choose skincare product and experience.

• Motivation & needs: the product is affordable than any other product.

• Attitude & Personality: elegant and metrosexual

• Lifestyle: grooming and personality care.

4.2 Stakeholders’ Characteristics

4.2.1 Primary

The Body Shop published its first Values Report in January 1996. Inevitably, the report

contained both good and bad news:

Employees:

75% of the employees said they were proud to be part of The Body Shop.

71% said they enjoyed their job.

Nearly one in four felt they would have to change companies to develop their careers.

Franchisees:

All the international franchisees sampled agreed that the company takes active steps to make

the business more environmentally responsible.

91% were satisfied with the communications on environmental management and auditing.

35% either had no opinion or disagreed that The Body Shop portrays its business practices

accurately to the public.

Customers. The Body Shop scored:

9 out of 10 for its ‘Against Animal Testing’ stance.

7.8 Out of 10 for its commitment to environmental responsibility.

7.5 Out of 10 for campaigning effectively on human rights, environmental protection and

animal protection.

Customer complaints rose from 18.3 per 100,000 in 1992/3 to 20.9 per 100,000 transactions

in 1994/5.

Suppliers

80% of suppliers recognized prompt payment, clarity of delivery and purchase order

requirements and fairness of quality assurance arrangements.

20% disagreed or strongly disagreed that The Body Shop purchasing and logistics functions

are well structured and efficient.

Community Trade suppliers. Despite a general fit with the Fair Trade Guidelines, a small

number of partners, questioned by an independent organization, were still struggling to be

commercially viable in the conventional sense, even though there had been a range of social

gains from The Body Shop relationship. However, from the shareholders’ point of view:

90% agreed or strongly agreed that The Body Shop takes active steps to make its business

more environmentally responsible.

Only 29% thought that the company enjoyed the trust of the financial community.

33% did not think that The Body Shop has a clear, long-term business strategy.

Local community

In 1994/5, The Body Shop staff gave 19,500 hours to projects in the community, but this

commitment came from only 25% of the employees. As far as The Body Shop campaigns

were concerned, more than 3 million signatures world-wide were collected calling for stricter

enforcement of the Convention on International Trade in Endangered Species, but tragically

a human rights campaign which started in 1993 failed to prevent the execution of Ken Saro-

Wiwa and eight other Ogoni leaders by the Nigerian military government.

4.2.2 Secondary

Traditional economic theory suggests that the primary reason for a company’s existence is to

expand its profitable business. Assessing the company’s performance becomes simply a

question of comparing profit levels with forecasts and targets. The owners’ prime objective is

to maximize their wealth. The Body Shop, however, has been at the forefront of a growing

number of companies who recognize that there are a number of different groups in society

with an interest in its performance. These different groups, or stakeholders, may have

different priorities. The way the business operates affects them and their expectations may

influence the way a company sets its objectives and how it seeks to achieve them.

The Body Shop believes that it should be open and honest in its business dealings and first

committed itself in 1991 to an active program of ethical auditing. This has come to include:

a social audit

an environmental audit

an animal protection audit.

Employees

The Body Shop directly employs 2,500 staff at the Headquarters in Littlehampton and all

company-owned facilities and shops in the UK. The employees’ aspirations include job

security and diversity, a fair income, promotion and training opportunities. Workers’ rights,

including a safe, healthy working atmosphere, fair wage rates and no discrimination on the

grounds of race, gender, creed or sexual orientation are set out in The Body Shop Trading

Charter. Senior managers must run the organization in such a way as to satisfy the different

groups of stakeholders. This may not be easy and conflicts of interest may develop. Priorities

may have to be agreed and compromises made. The managers’ jobs may be made harder as

the different stakeholders’ objectives may change over time according to how the firm is

performing.

Franchisees

The Body Shop is a multi-local business, built on franchising. Although the firm owns a

number of shops, 1,300 of the 1,500 outlets are franchised. This has allowed the phenomenal

growth rates of the firm over the last 21 years. Franchisees have the benefit of an easily

recognized, proven product and brand name, guaranteed supplies, training and advice and the

use of the company livery. Franchisees own their businesses and are dependent on them for

income. This will, therefore, affect their objectives.

5.1 The Industry

5.1.1 Definition

In 1976, Anita Roddick opened the first The Body Shop in Brighton, selling 25 naturally-

based skin and hair care products. The Body Shop International Plc now has over 1,500

stores in 47 countries selling over 400 different products. The Body Shop story, however, is

not just of a highly successful market-oriented manufacturer and retailer of toiletries and

cosmetics. Like its founder, the whole organization is committed to issues such as respect for

human rights, animal and environmental protection. The organization has arranged and

supported national and international campaigns on animal testing in the cosmetic industry,

women’s rights, anti-nuclear testing and coordinated an international protest at the sentencing

and execution of environmental activist Ken Saro-Wiwa and other Ogoni leaders in Nigeria

who were fighting to protect their community from multi-national oil companies.

5.1.2 Shape of the Industry

The Body Shop aim to achieve commercial success by meeting their customers’ needs through

the provision of high quality, good value products with exceptional service and relevant

information which enables customers to make informed and responsible choices. Their trading

relationships of every kind with customers, franchisees and suppliers will be commercially

viable, mutually beneficial and based on trust and respect.

The Body Shop trading principles reflect their core values. The Body Shop aim to ensure that

human and civil rights, as set out in the Universal Declaration of Human Rights, are respected

throughout their business activities. They will establish a framework on this declaration to

include criteria for workers’ rights embracing a safe, healthy working environment, fair wages,

no discrimination on the basis of race, creed, sex or sexual orientation, or physical coercion of

any kind.

The Body Shop will support long term sustainable relationships with communities in need. They

will pay special attention to those minority groups, women and disadvantaged peoples who are

socially and economically marginalized.

The Body Shop will use environmentally sustainable resources wherever technically and

economically viable. Our purchasing will be based on a system of screening and investigation of

the ecological credentials of our finished products, ingredients, packaging and suppliers.

They promote animal protection throughout their business activities. The Body Shop against

animal testing in the cosmetics and toiletries industry. They will not test ingredients or products

on animals, nor will commission others to do so on our behalf. They will use their purchasing

power to stop suppliers animal testing.

The Body Shop will institute appropriate monitoring, auditing and disclosure mechanisms to

ensure our accountability and demonstrate our compliance with these principles.

5.1.3 Development of the Industry

In 1970, Anita Roddick (then Anita Perella) visited "The Body Shop" housed in a car repairs

garage in Berkeley, California selling naturally-scented soaps and lotions. The shop run by

Peggy Short and Jane Saunders used natural ingredients, and helped to employ and train

immigrant women. Six years later, in 1976, Roddick opened a similar shop in the UK, using the

same business name, color scheme, and cosmetic lines. In 1987, Roddick offered Short and

Saunders $3.5 million to change their shop's name to Body Time. By 1992 the rename was

completed. From its first launch in the UK in 1976, The Body Shop experienced rapid growth,

expanding at a rate of 50 percent annually.

The Body Shop in the Prudential Center in Boston

The Body Shop stock was floated on London's Unlisted Securities Market in April 1984, opening

at 95p. After it obtained a full listing on the London Stock Exchange, the stock was given the

nickname "The shares that defy gravity," as its price increased by more than 500%. The Body

Shop turned increasingly toward social and environmental campaigns to promote its business in

the late 1980s. In 1997, Roddick launched a global campaign to raise self-esteem in women and

against the media stereotyping of women. It focused on unreasonably skinny models in the

context of rising numbers in bulimia and anorexia. The opening of Roddick's first modest shop

received early attention when the Brighton newspaper, The Evening Argus, carried an article

about an undertaker with a nearby store who complained about the use of the name "The Body

Shop”.

5.2 The Market Place

5.2.1 Current Condition of the Market Place

The current condition of the market place is in a very stable position. With the current annual

events been held and promotion throughout social media. The Body Shop is stronger in every

each year. Making an annual events and campaign, make people want to know more about this

product and of course, the people who keep on supporting the brand throughout social media and

outdoor campaign show how consumers keep the loyalty to the brand.

5.2.2 Current Condition of the Market Needs

Selection - There are many choice of body and skincare product with different ingredient

and smells.

Accessibility - The product is only available in the store and e-store.

Customer service - Skincare consultant will advise before using the product.

Competitive pricing – This product is cheaper than high end skincare product.

5.2.2 Changes in Market place

Positive Negative

Cheaper price other than body care

product.

Easy to find in shopping mall

Too many campaign

Doesn’t have on drug store

Limited choice than other skincare

product

6.1 Direct Competitors

Bath and Body Works

Bath & Body Works who offers a variety of beauty products. Bath & Body Works runs more

than 1600 stores in nationwide compared to the body shop's 300 nationwide stores. In 2009, the

turnover of Bath & Body Works exceeded 2,300 million dollars, at the same time, it spent more

than 915,000 dollars in advertising. Compared the website page with The Body Shop, they are

similar except the color, but The Body Shop have a higher high brand loyalty.

6.2 Indirect Competitors

Sephora

Sephora is the most famous drugstore among skincare and body care product, although The

Body Shop is not as big ranking as Sephora, the competitors and The Body Shop had something

in common which is, them both are skincare and body care product. Even the design are almost

identical, since both product are also are body and skin care product same as The Body Shop.

7.1 Market Research

The Body Shop

Pavilion, Kuala Lumpur

Even it is on weekend, only few customer enter to the shop. They only drop by because of the

promotion of the new product.

7.2 Market Observation

The Body Shop

Fahrenheit 88, Kuala Lumpur

Customer only drop by to see the promotion of the new product. People just looking at Born

Lippy Pot Lip Balm and smell it not to buy it.

7.3 Online Survey

7.4 Interview

Friend of friends and buyers

Basically, people are used The Body Shop Born Lippy Lip Balm is a loyal buyer that have been

use for ages, normally they use it when they were a student, working adult and few of gentlemen

and they still buy the product, because the product is suitable with their lips and the flavor they

like. Other than the other product.

7.5 Others

By interviewing the beauty consultant itself, the amount of people buying Born Lippy Lip Balm,

is not many as expected, 8 pots for 2 weeks on that month, but surprisingly, few of those are

bought from tourist or foreigner because mostly this product recognize in the foreign country.

8. SWOT Analysis

Strength Weakness

Leader of Animal Protection

Expand E-Commerce Activities

Innovative products

High brand loyalty

Many competitors

Many products are in the mature of

declining stage

Little advertising

Opportunity Threats

Bans of animal-testing laws which help

the body shop to attract more customers

Expand The Body Shop at Home

Program

Increased awareness of organic and

eco-friendly product

Increasing number of online buyers

The shrink finance which influence

people's awareness to buy products

Competition in Cosmetic Industry

Risks in Material Supply

9.1 Proposed Primary Target Audience

Demographic Physiographic

18-25 years old (young adult and adult)

Female

Students, working adult and housewife

Open to any race and ethnicity

Urban

People who really cares about body and

skincare

People who want to feel the nature

ingredient

People who love fruity flavor

9.2 Proposed creative proposition

Kiss without chewing a chewing gum with fruity flavor taste. Just Kiss!

9.3 Proposed marketing strategy

The big idea is xoxo, using the element of fruit and lips to create a concept, that this lip balm

have two element kiss with fruity lips. Wanted to show how good is this lip balm are, that you

are no longer need to chew a chewing gum before u kiss, but just put the lip balm on. Which with

a great tagline, Just kiss!

10.1 Examples of Advertising Strategy

10.2 Precedent Studies

Candy taste

Fruity taste

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http://www.loreal.com/brand/the-body-shop/the-body-shop

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Siler, Charles, “Body Shop Marches to Its Own Drummer,” Advertising Age, October 10, 1994,

p. 4.

Zinn, Laura, “Whales, Human Rights, Rain Forests—And the Heady Smell of Profits,” Business

Week, July 15, 1991, pp. 114-15.

Appendices

The Body Shop Born Lippy Pot Lip Balm Questionnaire

1. Gender?

o Male

o Female

2. Age?

o 18 – 25

o 26 – 30

o 30 – 40

3. Occupation?

o Student

o Employed

o Self-employed

4. Your monthly income/allowance?

o Below RM 1,000

o RM 1,100 - 2,000

o RM 2,100 - RM 3,000

o RM 3,000 and above

5. What current skin and body care product do you use?

o The Body Shop

o Bath & Body Works

o Crabtree & Evelyn

o Victoria Secret

o Belif

o Kheil's

6. Do you wear lip balm?

o Yes

o No

7. If YES, which brand do you used?

o The Body Shop

o EOS

o Lip Smacker

o Nivea

8. Base on photo above, have you ever seen this product?

o Yes

o No

9. If your answer is YES, where do you know about the product?

o Social Media

o Store

o Website

o TV Commercial

o Print Advertisement

10. What are the factors that may influences you to purchase lip balm?

o Based on the weather

o Addicted

o Lip Balm Collector

o Dry Lips

o Because of the flavor

11. In your opinion, what advertising tools would you think can make The Body Shop Born

Lippy Pot Lip Balm well-known?

o Social Media

o Exhibition

o Product Campaign

o TV Commercials

o Promotions

12. Which of the below advertising tools will persuade you the most to have a purchase?

o Promotions

o Website

o Social Media

o Exhibition

o TV Commercials

o Word of mouth