body shop entering tier 2 city( india)

"The business of business should not just be about money, it should be about responsibility. It should be about public good, not private greed."

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

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.

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.

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

CORE VALUES

Against animal testing

Supporting community trade

Activating self esteem

Defending human rights

Protecting our planet

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

MAKE UP


FRAGRANCE


MENS


ACCESSORIES


LOCATION

127 stores spread across 19 states.

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.

ONLINE PROMOTIONS

Facebook

Twitter

Youtube

Instagram

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.

PROMOTIONAL TOOLS PROMOTIONAL METHODS

PUBLIC RELATIONS DIRECT MARKETING

SALES PROMOTIONS

PERSONAL SELLING

SOCIAL MEDIA

PRINT

ELECTRONIC

OUTDOOR

DIGITAL

INTEGRATED MARKETING COMMUNICATION

Interactive Sales

Staff

Quality of

Ingredients used

Product Range

Price Range

Popularity

No. of retail storesStore Layout

Promotional

activities

COMPETITIVE ANALYSIS

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

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

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

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

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?

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

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.

PROPOSED PRODUCT CATEGORY & PRICE RANGE

BATH AND BODY CAREPrice RangeRs.175 – Rs.1795

SKIN CAREPrice RangeRs.295 – Rs.2695

HAIR CARE


25%

12%15%

MAKE UP


FRAGRANCE


MENS


ACCESSORIES


12% 15%

18% 6%

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

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

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

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

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

PROMOTIONAL TOOLS

PROMOTIONAL METHODS

PUBLIC RELATIONS DIRECT MARKETING

SALES PROMOTIONS

PERSONAL SELLING

SOCIAL MEDIA

PRINT

ELECTRONIC

OUTDOOR

DIGITAL

PROPOSED IMC

TARGET CONSUMER (AGRA)

18-35

Working/Student/Homemaker

High Disposable income

Emerging from being conservative and conventional to people who value order and knowledge

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

CONCLUSION

All analysis and observations

POSITIVE

We’re Game For LAUNCHING THE BODY SHOP IN AGRA

Game time see you!

body shop entering tier 2 city( india)

Marketing