The Body Shop

Marketing analysis

I - Brand overview in Korea

II - Target segment selection and description

III - Value curve for Body Shop and two competitors

IV- Brand platform

Brand overview in KoreaBrand overview in Korea Established in Korea since Established in Korea since

19971997 Beauty with heartBeauty with heart Fairtrade & natural beauty Fairtrade & natural beauty

productsproducts Franchise SystemFranchise System 62,15662,156 Facebook Facebook

fans/twitterfans/twitter >>150150 stores stores Stores in Stores in 4040 cities of Korea cities of Korea More than More than 5050 in Seoul in Seoul 1.41.4 billion global sales billion global sales

Body Shop turnover : 50 Body Shop turnover : 50 bilion wonsbilion wons

Asia : strongest Asia : strongest growing market growing market

((+6.7%+6.7%))

The Body Shop The Body Shop established in established in 19761976

Parent company Parent company L`Oréal (since 2006)L`Oréal (since 2006)

Brand overview in KoreaBrand overview in KoreaThe 5 Body Shop core valuesThe 5 Body Shop core values

→Against animal testingAgainst animal testing

→Community fair tradeCommunity fair trade

→Self esteemSelf esteem

→Human rightsHuman rights

→The planetThe planet

Body Shop market segmentationBody Shop market segmentationHealth/appearenceHealth/appearence

Price rangePrice range

Quality/Quality/effectiveneseffectivenes

Brand awarenessBrand awareness

Social aspects Social aspects (trendy, fair trade (trendy, fair trade

etc.)etc.)

Economic aspects Economic aspects (biodegradable, (biodegradable,

protect nature etc.)protect nature etc.)

Female costumerFemale costumerage 20age 20

Female costumerFemale costumerage 40age 40

HighHigh

ImpacImpactt

LowLow

Target segment Target segment descriptiondescription

• Mainly skincare Mainly skincare productsproducts

• Environment Environment friendlyfriendly

• Natural-based Natural-based productsproducts

• High brand High brand valuevalue

• Mid-range price Mid-range price segmentsegment

CompetitorsCompetitorsNatural RepublicNatural Republic

•Korean cosmetic company•Natural ingredients

Etude HouseEtude House

•Best selling brand•Reflect the dream

Value curveValue curve

Brand PlatformBrand PlatformCustomer Customer

Value Value propositionproposition

Beauty with heart

BenefitBenefit

EmotionalEmotional•Protecting planet •Looking good and feeling good •Expressing Environmental awareness•Being hygienic•Engaging in social and environment

FunctionalFunctional•Nourishing •Skin Protection •Moisturizing •Recovery •Covering •Beauty & healthy skin

POD/POPPOD/POP

PODPOD (Point of difference) •Ethical image•Anti-animal testing•Quality•Cosmetic for men•Natural Product

POPPOP (Point of parity)•Natural ingredient (note)•Cosmetic for women

RTBRTBThe Body Shop Foundation , Charity programs, Ethical campaigns ,Several awards , Against animal testing, Defend human rights, Protect our planet, Support community trade, Wide global presence

PersonalityPersonality Eco-friendly, Ethical, Generous, Environmentally-responsible, Organic, Feel welcome , Clean and well organized

Identification Identification ElementElement

Plant-like symbol, Use natural colors, Cozy and natural looking shop layout, Nature-friendly packaging, Natural odor

I – Current Marketing Mix

II - From – To Analysis

III – Desired Marketing Mix

• Nature-based Nature-based

• Sustainable cosmetics (mainly lotion & Sustainable cosmetics (mainly lotion &

scrubs)scrubs)

• For the consumer who likes to take care of For the consumer who likes to take care of

themselvesthemselves

• Can be recycledCan be recycled

• Medium - upper medium price rangeMedium - upper medium price range

• Comparable to the competitors Comparable to the competitors

• Terms of paymentTerms of payment

• The company is against promotionThe company is against promotion

• No business by promotingNo business by promoting

• Social médiaSocial média

• WebsiteWebsite

• International locationInternational location

• B2C relatedB2C related

• Run on a franchising Run on a franchising

basisbasis

• Brand Stores in highly Brand Stores in highly

popular shopping districtspopular shopping districts

« I think natural

ingredients are less

effective »

Missing trust in product

effectiveness

« Bodyshop products are

protecting the environment » « I prefer natural over

chemical products »

Believe in natural

ingredients

Increase the target customer’s perceived value Increase the target customer’s perceived value for protecting the environment and the strength for protecting the environment and the strength of natural ingredientsof natural ingredients

Issue a marketing campaign with celebrities Issue a marketing campaign with celebrities who stand for natural beautywho stand for natural beauty Emphasize the importance of saving the Emphasize the importance of saving the

planetplanet Improve the trust in natural productsImprove the trust in natural products

« The price is too high for me »

More expensive

than Korean brand

« Body shop product are good value for money »

Brand high value

Use of coupon system to make Use of coupon system to make products cheaperproducts cheaper

Launch promotional campaignsLaunch promotional campaigns

Give more test samples to Give more test samples to compensate for the high prices and compensate for the high prices and show the good quality of the show the good quality of the products.products.

« I don’t really know the brand »

Very fewAdvertisement

No connection with Korea

«International well known brand »

Invest and active brand

Eco-friendly

Relatively small make up product portfolio Relatively small make up product portfolio > use Korean stars for advertising to > use Korean stars for advertising to increase effect and give the brand Korean increase effect and give the brand Korean appealappeal

Establish a friend referral program : use Establish a friend referral program : use “Kakao talk” as platform so that friends can “Kakao talk” as platform so that friends can send “free trial vouchers” send “free trial vouchers”

« The shop doesn’t look like trendy

»

not appealing

« The Body Shop look

fashionable »

Inviting

Change the design of the storesChange the design of the stores

not too strictlynot too strictly

More trendyMore trendy

Use some real plants as a facadeUse some real plants as a facade