The Body Shop is a cosmetic International Company that has 2400 stores in 61countries. The company is now part of the LOreal corporate group. 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.
Presentation of the Body Shop Moisture White Shiso Whitening Night Treatment Nowadays the main skin tendency in Vietnam is to have a perfect white skin. Girls run after whitening and unifying skin color products. Why this product will meet the needs of Vietnamese?
¢Shiso extract reduces early melanin-making signals even before the hyperpigmentation process and melanin production cycle starts helping prevent uneven skin tone, brown spots and freckles. ¢Vitamin C provides anti-oxidant protection helping to reduce the production of melanin. ¢Organic Aloe renowned for its incredible soothing, hydrating and moisturising properties. Macro environmental analysis: Political factors
Micro environmental analysis: Porter 5forces for determine the competitively SWOT analysis:
+The real Gross Domestic Product (GDP): $123,960,665,229 in 2011
+The unemployment rate: decreased to 2.30 percent in 2011 from 2.90 percent in 2010
+The inflation rate: 20.8%
+The exchange rate: 1 AUD = 21852.81 VND
+Population below poverty line: 14.5% est (2010)
+Average household income: 3.2 Million VND a month
Barriers/ Ease of entry: According to the Chemical Cosmetic Association in Ho Chi Minh City, 430 cosmetic brands operate in the country, of which 90 percent are well-known foreign brands. Young people in Vietnam nowadays only know of famous international brands such as Estee Lauder, LOreal, Clinique, Clarins, Maybelline, Oriflames, and the Faceshop, which are now well established in the country. In addition, many foreign brand names have their production plants in Vietnam like Olay, Ponds and Avon. Although having the advantage of not having to compete aggressively with the domestic brands, The Body Shop would have to face with the other 90 percent of the contributors to the cosmetic market. Therefore, the competition is actually about the foreign brands.
Moreover, The Body Shop is also considered a new player in the market, compared to other brands such as Avon, Ponds, Oriflames, Revlon, etc¦ which have been around the market for a long time. In sum, the two main barriers would be: dealing with the large amount of foreign competitors and stand out as a new comer. However, there are also advantages for The Body Shop as a cosmetic brand. Its ethical activities and campaigns, also the nature of the products are loved by the consumers. The young generation is better educated and more energetic and active would appreciate the concept and message that the brand brings about. With the right marketing mix The Body Shop can change the way customers buy and consume their products; as well as make it to the top in the cosmetic market in Viet Nam. Market segmentation:Demographic: Age 16 35 years old Women Psychographic: Lifestyle urban woman- cosmopolitan
Marketing mix :
Product: Start with only one Whitening Moisture cream. Non-greasy cream that can be massaged into the skin, leaving a moisturizing film on the surface. Suitable for all skin types. Price: product is heavily differentiated due to the ethical branding and so pricing is relatively high. 59.90 Place: The cosmetic stores, The Body Shop At Home scheme and Internet based virtual presence Promotion:
¢Women : advertise in beauty magazines and similar periodicals targeted to the same demographic (monthly) => discount coupons
¢Targeted online marketing campaign
1) Google Ads (6 months) 2) Promotion on sites used heavily by the target segment (6 months) ¢Target In-store up and cross-sell => Flyers and targeted advertising to existing customer base in target cosmetic shops, need a partnariat with the shops (12 months). Presents/gifts (4 times a year) => free accessories during birthday, Christmas, mother day and one surprise day ! ¢In street. For future new customers give samples once per month ( 4months) ¢Leaflets in shops
People: Proposition of Enhanced and up to date product and service training for shop-assistants and consultants in the target cosmetic shops but also when they give the free sample in the street
Physical evidence: 1) more Whitening advertise in the shop, shop-assistants with a white tee-shirt and the product picture. 2) Improve and ease on-line shopping experience.
Cosmetic market in Vietnam
According to the Chemical Cosmetic Association in Ho Chi Minh City, 430 cosmetic brands operate in the country, of which 90 % are well known foreign brands. The cosmetic industry in the country has high development and growth potential with an average turnover of US$150 million a year and an annual sale increase of 30%.
Young people in Vietnam nowadays only know of famous international brands such as Estee Lauder, LOreal, Clinique, Clarins, Maybelline, Oriflames, and the Faceshop, which are now well established in the country. In addition, many foreign brand names have their production plants in Vietnam like Olay, Ponds and Avon. Comparatively, only a few Vietnamese cosmetic brand names are visible in the market, such as Saigon Cosmetics, My Hao Chemical Cosmetic and Thorakao of the Lan Hao Company.
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