The Body Shop Marketing Campaign

1. Executive Summary

Body Shop is the second largest and established Cosmetics and Beauty Care Franchise in the world providing quality products made from natural ingredients. The Body Shop has positioned itself as an 'ethical' and 'environmentally conscious' company, against animal testing.

This marketing strategy has been developed to establish The Body Shop in China, the most attractive markets in the world. China is a great next step for The Body Shop for a number of reasons: (1) China is experiencing a boom in the personal care industry; (2) Chinese customers associate luxury products and a good appeal with success, and personal care is no exception; and (3) Product quality has become paramount for the Chinese consumer. Thus we believe that The Body Shop will be a good fit for China and will be able to achieve 5 % of the market share by 2017, to contributing 5.6 % of The Body Shop's sales revenue worldwide

The Body Shop is going to face competition from the local and the foreign brands, with the biggest competitors being giants such as Chanel, Sisheido or L' Occitane. Our very diverse product portfolio, unique value proposition of having less expensive, all natural product, and strong brand, will enable us to compete effectively.

Our target segment is going to be both males and females from 18 to 45 , who care about their beauty regime, care about quality, good customer service and a pleasant 'buying experience'. We will focus on the younger customers in establishing our brand through an effective promotional mix that reinforces our unique selling points.

Our aim is to be the "master franchise" in china (120 stores in China by 2015) but our key role will not only be to open and own flagship stores, but to coordinate all franchisees, and use different channels like Chain Stores, The Body Shop At HomeTM or Body Shop.Com & Body Shop Hotline to maintain the brand value.

2. Situation Analysis

2.1 Macro-environmental Factors

Over the last 30 years, China has emerged as an export giant, influenced by radical economic reforms, loosing of government restrictions, and unprecedented urbanization. This, in addition to the state's unwavering commitment to development, has catapulted China to a venerable position globally in terms of Purchasing Power Parity GDP. China's gross national income per capita has multiplied 13 times.

With the rise in incomes comes the rise in the capacity to spend, and distinct changes in spending patterns. According to the 2009 Annual Chinese Consumer Study by McKinsey, the per capita consumption in China is set to increase to 17,000 RMB ($2502) by 2015 from 13,400 RMB ($1975) in 2008. McKinsey also reported