integrated marketing communication campaign for the body...

Integrated Marketing Communication Campaign for

THE BODY SHOP entering China

XU Fang, Flora 05408296

A Project

Submitted

In Partial Fulfillment of the Requirements

For the Degree of

Master of Arts in Communication

Supervisor: Dr. CHEN Ni

School of Communication

Hong Kong Baptist University

Hong Kong

June, 2005

Acknowledgement

I wish to thank Dr. Chen Ni for her advice and support in the preparation of this

project. She is very patient and sincere. Her support and encouragement have helped

to bring about the completion of this study. Special thanks go to my family, for

educating me, for their unconditional support and encouragement to pursue my

interest. Without their endless love and unconditional support, I cannot finish this

project.

The survey in this project and other content were my won original work and were

carried out by myself under the supervision of Dr. Chen Ni.

________________________________

Xu Fang, Flora

M.A. in Communication

School of Communication

Hong Kong Baptist University

Date: _____________________________

MA Graduation Project

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I declare that, to the best of my knowledge, this project represents my own work

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I further declare that the Project has not been previously included in a thesis,

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Abstract

THE BODY SHOP is a famous English cosmetic brand, which has opened 2045

stores in 12 time zones. As a high economic growth rate country, China has the

potential cosmetic market and the cosmetic brands cannot ignore it. THE BODY

SHOP also plans to enter into China market in 2007. It is expected that the awareness

of THE BODY SHOP among the Chinese consumers can reach 60%; and it will open

at least, 20 stores in the following four cities: Beijing, Shanghai, Shenzhen and

Guangzhou.

For achieving the purposes, there are several IMC strategies for different

stakeholders. Membership card is suitable for attracting the consumers. Benevolent

donation is a way to strength the relationship between THE BODY SHOP and the

community. In industry, sponsorship is a good activity for THE BODY SHOP

winning reputation. Media relationship should be considered all the time. Decoration

of the stores, dinner conference and internal magazines are designed for the internal

employees. Coupons and discount are the best sales promotion strategies, while in the

advertising strategies advertisements in TV, pop stars prolocutors and column in

magazines will be adopted. All the strategies will use television, newspaper,

magazines and internet media channels.

Evaluation will make use of the traditional survey method. Besides survey,

macro and micro measurements will be tried in the campaign.

IMC Campaign for THE BODY SHOP ⅰ

IMC Campaign Proposal (2007)

Content

Table of Contents Page

. Executive SummaryⅠ 1

. Situation AnalysisⅡ 3

ⅰ. Company analysis 3

ⅱ. Market analysis 8

ⅲ.Consumer analysis 13

ⅳ. Competitive analysis 19

Ⅲ. Problem and Opportunity Statements 24

Ⅳ. Target Audience Profile 25

Ⅴ. Campaign Goal and Objectives 26

Ⅵ. Campaign Strategies 27

Ⅶ. Media Plan 37

Ⅷ. Tentative Timetable 41

Ⅸ. Budget 44

Ⅹ. Campaign Evaluation 45

Ⅺ. Conclusion 46

Ⅻ. References 48

IMC Campaign for THE BODY SHOP ⅱ

Appendices Page

Appendix 1: Questionnaire (Chinese Version) 1

Appendix 2: Questionnaire (English Version) 4

Appendix 3: Results of Questionnaire 7

Appendix 4: THE BODY SHOP Company Introduction 10

Appendix 5: THE BODY SHOP Product Introduction 11

Appendix 6: Tables 12

Appendix 7: Tentative Schedule of IMC Campaign 15

Appendix 8: Competitors Advertisement 16

Appendix 9: Press Release Samples 18

IMC Campaign for THE BODY SHOP 1

Ⅰ. Executive Summary

The client of the IMC campaign is THE BODY SHOP. THE BODY SHOP is a

famous English cosmetic brand, which has opened 2045 stores in 12 time zones (THE

BODY SHOP, 2005). You can often see the green color stores of THE BODY SHOP

all over the world. As a high economic growth rate country, China has the potential

cosmetic market and the cosmetic brands cannot ignore it. THE BODY SHOP also

plans to enter into China market in 2007. The objective of the IMC campaign is to set

down the suitable strategies for THE BODY SHOP entering China. It is expected that

the awareness of THE BODY SHOP among the Chinese consumers can reach 60%;

and it will open at least, 20 stores in the following four cities: Beijing, Shanghai,

Shenzhen and Guangzhou.

The creative IMC strategies used are divided into three parts: strategies for the

stakeholders, sales promotion strategies and advertising strategies. In the first part, the

stakeholders have four components: the consumer, the community, the industry, the

media and the internal employees. Membership card is suitable for attracting the

consumers. Benevolent donation is a way to strength the relationship between THE

BODY SHOP and the community. In industry, sponsorship is a good activity for THE

BODY SHOP winning reputation. Media relationship should be

considered all the time. Decoration of the stores, dinner


conference and internal magazines are designed for the internal employees. In the

sales promotion part, membership program, coupons and discount are the three major

strategies, while in the advertising strategies advertisements in TV, pop stars

prolocutors and column in magazines will be adopted.

In choosing media for these activities, television, newspaper, magazines and internet

are the four main channels. Because the objective is to increase THE BODY SHOP

awareness in Chinese consumers, the above four media channels can reach the biggest

scope of the audience.

Evaluation is important for the IMC campaign because it measures whether these

strategies are successful. The pre-test measure makes use of the questionnaire to

conduct the survey. The post-test measure can also depend on the questionnaire to

observe whether the focus group has changed their minds. Besides the pre-test and

post-test survey, the campaign suggests from macro and micro aspects to measure the

effectiveness. Attitudinal and behavioral measurements belong to macro aspect, while

using media is micro measurement method.


Ⅱ. Situation Analysis

Nowadays, the competition among the cosmetics corporations is becoming more and

more furious. When people walk into any super market or shopping mall, many

diverse cosmetics counters catch people’s attention. With the fast development of

economics, China becomes the most significant market which even decides the

success or failure of a cosmetics company. THE BODY SHOP also takes this point

into consideration. How is the cosmetics situation in China now? Careful research and

plan are the keys to success.

ⅰ. Company Analysis

◆ Company Introduction:

THE BODY SHOP was founded by entrepreneur Anita Roddick who began retailing

homemade naturally inspired products with minimal packaging in 1976. THE BODY

SHOP opened for business on 26th March, 1976. With the high quality products and

service, THE BODY SHOP rapidly evolved from one small shop in Brighton on the

South Coast of England, with only around 25 hand-mixed products on sale,

to a worldwide network of shops (THE BODY SHOP, 2005).

The value of THE BODY SHOP is to produce high quality skin and


body care. What values make THE BODY SHOP popular and famous among

consumers? The Company’s campaign against human rights abuses and animal testing,

the tenet of protecting the environment and its commitment to challenge the

stereotypes of beauty perpetuated by the cosmetics industry all have helped THE

BODY SHOP gain the consumers’ support and their brand loyalty (THE BODY

SHOP, 2005). The Company continues to lead the way for business to use their voice

for social and environmental change.

In 1999, THE BODY SHOP brand was selected as the second most trusted brand in

UK by the customers Association. The Company was named 28th top brand in the

world, second in the retail sector in the 1997 interbrand survey criteria. THE BODY

SHOP ranked the 27th most respected company in the world in the survey of

international chief executives in The Financial Times of 1998 report. THE BODY

SHOP is on its special way to the success. According to the 2005 study, THE BODY

SHOP operates in 52 markets with 2045 stores, spanning 25 languages and 12 time

zones (THE BODY SHOP, 2005). THE BODY SHOP is listed on the London Stock

Exchange in 2005. The total retail sales between 2004 and 2005 of all THE BODY

SHOP outlets amount to 708.7 million pounds, while the number was 672.5 million

pounds in 2003. The group turnover is 419 million pounds, which is up 10% from

2003, and profit before tax has increased by 21% to 34.5 pounds (THE

BODY SHOP, 2005).


◆ Product Introduction:

THE BODY SHOP is famous for creating a niche market sector for naturally inspired

skin and hair care products. A generation of consumers has been introduced to the

benefits of a variety of best sellers, such as Vitamin E Moisture Cream, the Tea Tree

oil range, Banana Shampoo and so on. Some research estimated that THE BODY

SHOP sells a product every 0.5 seconds and makes transactions with over 69 million

customers through stores worldwide, with THE BODY SHOP owns the current range

of over 900 products and more than 200 accessories (THE BODY SHOP, 2005). The

products of THE BODY SHOP have TEN series: ACCESSORIES, BATH& BODY,

FRAGRANCE, HAIR, HOME FRAGRANCE, MAKE-UP, MENS, SKIN, SUN and

WELL BEING:

Accessories: Every girl knows that accessories make the look and the function of the

accessories is not less than make-up. THE BODY SHOP owns a wide range of

particular accessories: refreshingly exfoliating bath gloves, mitts, baby buffers, foot

files, muscle toning, relaxing and invigorating massagers and so on (THE BODY

SHOP, 2005).

Bath& Body: THE BODY SHOP provides a total, all encompassing showering,

bathing and body regime and provides top to toe solutions for all-over

body care. These solutions vary from affordable basics for everyday


use to pure indulgence ranges for pampering (THE BODY SHOP, 2005).

Fragrance: THE BODY SHOP gives every woman a chance to be sweet, sexy, sultry

or sensual in a matter of minutes by many kinds of perfumes. THE BODY SHOP

creates the different kinds of fragrances to reflect just a few of the many wonderful

facets of being a woman (THE BODY SHOP, 2005).

Hair: The new hair care products of THE BODY SHOP are the presents for the

consumers, which is powered by Naturals and has fantastic natural and Community

Trade ingredients. The gloriously rich Honey Moisturizing Shampoo and the Brazil

Nut Moisture Mask for the deep moisturizing treat or Brazil Nut Define& No Frizz

for the soft, shiny curls can satisfy the varied demands of the customers (THE BODY

SHOP, 2005).

Home Fragrance: THE BODY SHOP “decorates” the home air. The customers can

choose burning sensual, relaxing or exotic home fragrance oil in one of the elegant

and stylish Aroma Jars. Or the consumers can choose the Room& Linen Sprays which

does not need to burn (THE BODY SHOP, 2005).

Make-Up: A cosmetics company should have the best quality

cosmetics. THE BODY SHOP has the full range of the most naturally


moisturizing and skin friendly make-up. They can help the girls to be sultry, sexy,

vamp, natural-looking sun-kissed beauty or shimmering seductress (THE BODY

SHOP, 2005).

Mens: THE BODY SHOP considers all people to be the consumers, which also sells

the products for men, such as face scrubs, naturally-inspired fragrances and so on.

These products help men look well and smell excellent (THE BODY SHOP, 2005).

Skin: The skin reflects how the people feel and to some extent what the people have

been up to. Besides giving the skin the odd early night and blast of fresh air, everyone

should give it a good skin care workout. A daily cleanse, tone and moisturize regime

and a weekly or more often treatment can soon have the color back in the cheeks.

THE BODY SHOP skin products help regain the fresh face and peachy cheek (THE

BODY SHOP, 2005).

Sun: Basking is good for the healthy, but people must do enough protection measures

for the skin. The skin can be easily hurt by sun. THE BODY SHOP thinks of

everything for people and 100% mineral sunscreen and Care let the people enjoy the

wonderful sunshine (THE BODY SHOP, 2005).

Well Being: Well being range is about the soul and it is treated as


important as the body. The consumers can select the Everyday Aromatherapy range of

bathe and body treats. THE BODY SHOP lets the consumers go for, indulge, enjoy

and clear their mind by the range of the most popular essential oils: stimulating

peppermint, relaxing lavender, energizing bergamot or sensual ylang ylang (THE

BODY SHOP, 2005).

ⅲ. Market Analysis

Market Situation: With the quick development of China’s economy, China becomes

the eighth largest cosmetic producer of the world. According to China Cosmetic

Market (Shuquan Li, 2003), China cosmetic market is expected to expend at annual

rate of about 10% with sales reaching RMB80 billion by 2010 and there are

3500-4000 manufactures in this market competing very fiercely. This report also

indicates that 600-700 companies of the 3500-4000 are foreign invested enterprises

who have got about 80% of market share. Foreign invested cosmetic enterprises are

the major sellers and the foreign cosmetic brands are accepted by Chinese.

Although there are so many international and local cosmetic brands competing in

China market, the market is still having a tremendous potential. China cosmetic

market was only RMB200 million in 1982, while it grew up to

RMB40 billion in 2001. Many experts estimate that in 2006,


the figure will reach RMB60 billion and RMB80 billion in 2010. China cosmetic

market has been developing for many years and it got significant growth, but China

cosmetic market is and will be the most charming because it is still far from saturation

and it remains a dynamic market (Shuquan Li, 2003). The large population of China

keeps the China market having the huge amount of consumers. If every one just

spends 4 dollars on the cosmetics, it can bring thousands of opportunities. The

economics of China keeps the high growth rate, which makes the Chinese richer and

they can more free money to buy the luxury products. After China entering WTO in

2001, China opening its market more according to the WTO rules will stimulate more

and more international cosmetic brands to enter. China has reduced the import tariffs

in order to join WTO largely and during this period, the imports of cosmetics rose

160%, which equals 194 million dollars cosmetics including cosmetics and skin care

products (47%), bath and shower (23%), hair-care products (22%) and so on

(Shuquan Li, 2003). All these situations provide THE BODY SHOP the opportunity

and the environment

Market Trend: Now the types of cosmetics provided for the customers become more

and more and the customers tend to choose safe products which mean that natural and

green ingredients epurating from marine resources, plants, or medicinal herbs are

preferred. The trend of cosmetic market can be divided into skin care

product, green and natural cosmetics, color cosmetics and hair care


products. These four categories are the main products of a cosmetic company and

THE BODY SHOP can also provide the four types:

1. Skin Care Products: According to China Cosmetic Market (Shuquan Li, 2003)

analysis, in China, annual sales of skin care products in 2001 were valued at RMB11

billion, accounting for about 27% of total cosmetic sales and it forecasted that the skin

care sector will continue to rise 13% annually during 2002-2006, achieving annual

sales of about RMB20 billion in 2006, with high annual growth rate of 13% over the

last 15 years. So skin care products sales will remain the fastest growth rate in the

following several years. If THE BODY SHOP can enter into China market

successfully, the further development will be better. The most popular products in skin

care products are: age defying, sun care, acne/fleck dispelling, whitening, cleaning

and moisturizing. All of these products are provide by THE BODY SHOP.

2. Green and Natural Cosmetics: Nowadays the Chinese consumers do not pray for

the famous brands blindly. Although China cosmetic market does not mature, the

consumers pay more and more attention to the safety of the cosmetics. In recent years,

that some famous cosmetic brands have emerged some incidents harmful or allergic to

the skin makes Chinese consumers realizing that safety is much more important than

beauty. The current popular and famous cosmetic products emphasize

health-friendly, safe and effective, which like using green and natural


ingredients “containing no preservative, and no or least harmful chemicals” (Shuquan

Li, 2003).

In this part, the value of THE BODY SHOP should be brought forward. THE BODY

SHOP opposes animal testing, which also makes THE BODY SHOP has the high

reputation among the western consumers. In the 1980 and 90’s, THE BODY SHOP

has began to reduce or end the use of animals in cosmetic tests. In order to be

responsible for the customers, THE BODY SHOP ensured that all of the ingredients

and suppliers also did not use animals to test. Though THE BODY SHOP does not

use animals to test, the safety of the products are guarantied. THE BODY SHOP is

developing in-vitro tests and computer testing instead of animal testing and has

listened to the stakeholders about the safety of chemicals carefully, which are all the

activities of THE BODY SHOP to ensure the products safety. In 2007, the European

Commission will put a new system for regulating the use of chemicals into practice,

which is REACH: Registration, Evaluation and Authorisation of Chemicals. THE

BODY SHOP believes that with REACH help, it can improve consumer and

environmental protection.

3. Color Cosmetics: Color cosmetic market in China is just at the beginning and

growing stage. In the past 20 years, the income of Chinese was just

enough for some skin care and hair care products and the color


cosmetics were the luxuries. With the ten years of economic development, the

situation has changed significantly. In China, lipsticks sales rank the first, and then

followed by facial power, eye shadow and nail polishes. China color cosmetic market

only has a short history and many consumers do not use color cosmetics now. With

the rising income and through the education and advertisements, more and more

Chinese consumers use color cosmetics. All these factors decide the development of

color cosmetics market will be the most charming and important in the world. The

color cosmetics of THE BODY SHOP will be accepted because of its green and

natural style.

4. Hair Care Products: Hair care products are not like skin care and color cosmetic

products. In China, hair care products have developed for a long time and now it is at

the maturing stage. It is estimated that there are about 2000 hair care product

manufacturers in the market. Shuquan Li (2003) indicates that although the gross

sales are projected to increase by an annual rate of 7% in the next five years from

RMB10.5 billion to 15 billion in 2006, the industrial experts believe that the hair care

market has already been at the saturated stage and the consumption in the large and

medium-sized cities will slow down. For this situation, THE BODY SHOP can put its

main energy in propagandizing the skin care and color cosmetic products. For the hair

care products, it can advertise some functional hair care products, such

as anti-hair loss, hair growth and so on.


After the analysis of China cosmetic market situation and market trend, THE BODY

SHOP faces the opportunity and the difficulties. The opportunity is that the current

market environment is suitable for THE BODY SHOP entering China. The difficulties

are that more and more international famous cosmetic brands are the competitors and

THE BODY SHOP should know what the advantages and the disadvantages are.

ⅳ. Consumer analysis

1. The Buying Behaviors: In last decade, Chinese people could only bought some

very cheap and basic facial cream, which was used by the women, men, children and

old people. They did not know the facial cream could have many functions: age

defying, moisturizing, cleaning, whitening, acne/fleck dispelling and sun care.

Because of the reform and opening, the growth rate of China economics is one of the

fastest in the world. The income of Chinese people has increased several times and

besides the consumption of the basic necessities, the different types of cosmetics are

needed. This is the crucial condition for the international cosmetic brands

development in China.

The purchase behaviors and capability are associated with many factors of the

consumers. The consumers’ gender, age, educational level, occupations,

and the residence place have great impact on how much the consumers


pay for the cosmetics, which brands they would like to choose. For example, a woman

who is a senior executive of a multinational company in Shanghai would pay more

attention to her image. Because her income can support some expensive brands, so

she would like to choose Estee Lauder’s skin care, Lancome body care products and

Kiehl’s hair care products. A woman who is just a common worker of a small

company may only choose Dabao which is a local brand in China.

2. Psychological Analysis: The buying behaviors of women are totally different from

men. The psychological analysis of women here is uppermost, because the major

cosmetic consumers in China are women. The buying behaviors of women are also

different discussed above. People always say women are the emotional animals,

which indicates that women pay more attention to what they feel and the environment.

If they feel comfortable, romantic or lovely about the products, they often buy them

impulsively. All in all, the buying behaviors of women are influenced by their

self-awareness. Whether they will buy the products are decided by their interests, or

consulting the certain standard in their mind. For example, a high income lady can

buy a 500RMB body lotion because compared with her standard, she think it can be

accepted. While a common female worker think 500RMB equals the cost of a family

a month. When setting down the strategies for THE BODY SHOP, the characteristics

of the consumers should be considered.


The psychological research done on female consumers shows that there are 3 types

mentalities:

◆ Peacockery and Splurge: Women use cosmetics to make up themselves in order to

strengthen their self-confidence. They hope that their beauty can get the envy from the

others. Some women like to splurge their wealth and taste through using the luxurious

cosmetic products. In their opinions, the expensive cosmetics represent the best taste.

◆ Fashion and Imitation: The modern people purchase things based on the fashion.

The popular things are welcomed and everyone is afraid of “outdated”. The fashion

references are the pop stars. The pop stars are the symbols of beauty, fashion and

popularity.

◆ Gaining extra advantage unfairly: Women are not very rational. Most women

cannot resist the allurements such as discount and coupons. Because of this point,

most cosmetic brands often take diversified promotion activities to attracting female

consumers and stimulate the selling.

Knowing about what the female consumers think and want is easier for THE BODY

SHOP. Chinese male cosmetic consumption is just at the beginning, but it cannot omit

the potential. The task for male consumers is clear: change their

attitudes towards cosmetics. So long as men can accept that they also


need the cosmetics to take care of the skin, the buying behaviors are much easier to

influence.

2. The Survey: The survey was conducted during April and May 2006 with the sample

of 70 respondents. In this survey, the results came from 68 adults aged from 15 to

above 55 and 41% of them were male and 59% were female who most of them fell in

the age group 20-24 (60%).

China is a very large country and the survey conducted in the whole country is very

difficult. However, the survey should consider the situation of the whole country in

order to make the right strategies for THE BODY SHOP. The main sample drawn

method is snowballing samples. Snowballing samples can help the survey reach the

widest scope. The researcher found her acquaintances in 9 cities of China: Beijing,

Lanzhou, Shanghai, Nanchang, Wuhan, Shenzhen, Guangzhou, Hangzhou and

Xiamen. Although these 9 cities cannot represent the whole China, they nearly

represent different areas of China. Beijing represents the north; Lanzhou represents

the northwest; Shanghai represents the economical central of China; Nanchang and

Wuhan represent the middle; Shenzhen and Guangzhou represent the south;

Hangzhou and Xiamen represent the east of China. That the west cities are less than

east and south cities is because the economy of south and east of China

is much more developed. There are 9 different people involved in


sending out the questionnaire. The researcher requested them to find their

acquaintances in the 9 cities. The response rate is 77.8%. There were 70

questionnaires sent back while 68 of them are valid.

The characteristics of the consumers are concluded from the survey as follows:

1. The consumers in China buying which cosmetic brands are decided by the cities

they lived and their income. According to the survey, the consumers who lived in

Shanghai, Beijing, Guangzhou and Shenzhen like buying some expensive, famous

and international brands, such as Lancome, Estee Lauder, SKII and so on. The reasons

are: Firstly, Shanghai, Beijing, Guangzhou and Shenzhen are four major cities in

China and most expensive, famous and international brands open their counters in

these cities. The survey conducted in Nanchang and Wuhan shows that the consumers

in the cities in the middle of China tend to buy some common cosmetic brands and

some famous international brands such as Biotherm do not have counters in these

middle cities. Secondly, the income of the consumers in Shanghai, Beijing, Hangzhou,

Guangzhou and Shenzhen is much higher than that of the consumers in Nanchang and

the cities in the western or middle of China. The higher income can support them to

buy the international brands.

2. The cosmetic using behaviors are totally different because of the


consumers’ gender, age and educational level. Firstly, the gender factors have great

influence on the cosmetics buying behaviors. In some modern metropolises such as

Hong Kong and Tokyo, the men have the awareness and the custom to buy and use

cosmetics such as skin care products, hair care products and even some color

cosmetics. Because of the education and the fashion influence, the men in Hong Kong

and Tokyo pay much attention to their image and their skin health. In mainland China,

men are not taught and they even think if they use the skin care and hair care products,

they will be laughed at. In the survey result, only very few men say that they use the

skin care products. The most time they bought the cosmetics is for their girlfriend or

as the gifts. Skin care products take a larger part in the month consumption of Chinese

women, although compared with the consumption percentage of the women in other

countries the cost in Skin care products is still small. Chinese women do not have the

habit of daily face-painting now, but the trend is increasing. Because more and more

Chinese women realize that a little face-painting is a kind of manners in the social and

more contacting with many kinds of fashionable magazines makes Chinese women

knowing the magic of face-painting. Color cosmetics demand is increasing every year.

Secondly, age also influences the cosmetics buying behaviors. The survey finds that

some middle-aged women tend to buy some normal standard cosmetics such as Nivea

and Avon even if they have a good job. The reason is that when the middle-aged

women were young, China was very poor at that time and they have

had the habit of thrift, so even nowadays they do not think buying an


expensive facial cream is valuable. However, the modern young people have noticed

the importance of the image and most of them show much interest in cosmetics. They

are willing to pay for the cosmetics which can make them looking charming and

wonderful. Finally, the educational level has impact on cosmetic buying behaviors.

Maybe the latent reason for this factor is that the educational level is connected with

the possible income of the consumers. Based on the survey, the higher the educational

level, the more they are willing to spend on the cosmetics and the more likely they

choose some international brands.

ⅴ. Competitive analysis

As mentioned above, there are thousands of cosmetic brands competing in China

market now. More and more famous international brands enter China to win one of

the biggest cosmetic markets in the world. It is estimated that at present, there are

3500-4000 cosmetics manufacturers in China and among them, some 3000 are small

to medium-sized local private enterprises; a small number of them are relatively larger

state-run companies; the remaining 600-700 are foreign-invested enterprises which

have been successfully in making their brands well-known in China and allows them

to achieve about 80% of the total market share over the past two decades (Shuquan Li,

2003). The major foreign famous international brands include: P&G,

Unilever, Avon, L’OREAL, Amway, Shiseido, Mary Key, Kose,


Revlon, Channel, Nivea, Estee Lauder, and so on. Although L’OREAL Company has

many sub-brands, such as L’Oreal, Lancome, Estee Lauder, Kiehl’s, Biotherm and so

on, this competitive analysis part only choose L’Oreal brand which is accepted and

used by most of Chinese consumers. Another famous brand chosen in this part is

Shiseido which is a Japanese brand and has a high reputation in China. These two

brands are not very expensive and normal Chinese consumers can afford. The prices

of THE BODY SHOP are near the prices of these two brands in China. If THE BODY

SHOP wants to enter China successfully, the successful factors of these two brands

should be consulted.

SWOT analysis of L’Oreal, Shiseido and THE BODY SHOP:

Firstly, L’Oreal and Shiseido have been established for a very long time in the

cosmetic area. Their financial strength enables them to investigate a lot of money in

building their brands names in China. According to the survey, nearly everyone knows

L’Oreal and Shiseido, no matter the consumers in which cities in China. Only 3

women and one man don’t know both L’Oreal and Shiseido; 7 men know L’Oreal but

don’t know Shiseido; 3 women and 1 man know Shiseido but don’t know L’Oreal.

From this data, L’Oreal and Shiseido are both well-known. When asking about how

they feel about the advertisements of L’Oreal and Shiseido, the

consumers think that L’Oreal does many advertisements to advocate its


products and Shiseido makes the consumers think the products are suitable for the

Asian people. L’Oreal often invite some famous Hollywood actresses to do the

advertisements and most female consumers feel that L’Oreal advertisements can be

seen everywhere. Most of the men in China declare that they are not used to buy

cosmetics, but they think L’Oreal does integrated marketing communication better

because they can also see many L’Oreal’s advertisements and counters. The most time

the men buy the cosmetics is for their girlfriends or the gifts for female. In this factor,

THE BODY SHOP has its advantage and weakness. L’Oreal and Shiseido have built

their strong brand awareness in China and they all have their own factories in China

to reduce the cosmetic cost. THE BODY SHOP now has very low brand awareness

and the products should be imported from England. However, it is also the advantage.

Because most Chinese consumers think the international cosmetics produced in China

are not as good as original production, THE BODY SHOP can emphasize it.

Secondly, L’Oreal and Shiseido can support the expensive cost for hiring professional

integrated marketing communication companies to do the market research. Because of

the specific market research, L’Oreal and Shiseido understand the China market and

the consumers’ need well enough. They can produce the particular products to meet

the market need and they can do the advertisements and some integrated marketing

communication activities with the definitely clear objective. Because

L’Oreal and Shiseido develop maturely in China market, THE BODY


SHOP can do some research on the key products advocated by these brands in the

market. The products categories of THE BODY SHOP are very diverse. Although the

best products of THE BODY SHOP are the body care products, the survey shows that

most Chinese female and male consumers pay attention to the skin care and hair care

products. For THE BODY SHOP entering China, it should consider to advocate some

“Star” products of skin care and hair care.

Thirdly, L’Oreal and Shiseido adopt their effective market strategies for product

promotion. L’Oreal as a famous French cosmetic brand and Shiseido as a long history

Japanese brand have their own a set of integrated marketing communication strategies.

After propagandizing the brands in the international markets for a long time, they

know what the most effective strategies to catch the consumers are. Compared to

L’Oreal and Shiseido, THE BODY SHOP is very young and the advertisements and

integrated marketing communication strategies of THE BODY SHOP are used very

little. Take THE BODY SHOP in Hong Kong as an example. THE BODY SHOP even

does not do advertisements in Hong Kong and does not invite any pop stars to

advocate its products, but THE BODY SHOP can be successful in Hong Kong.

Because Hong Kong is a very small place, so several THE BODY SHOP shops can

make Hong Kong people know the brand and its products. Because most Hong Kong

people can travel abroad easily, so they can see and know THE BODY

SHOP easily and they can learn that THE BODY SHOP is a famous


brand in western countries. Because most Hong Kong people can use English, so they

can go to the English website to know more about THE BODY SHOP and the

products imported from U.K. cannot be translated. However, these factors are all

needed to change in China market. The detailed strategies can be found in the

following parts.

Fourth, because of the strong economic bases, L’Oreal and Shiseido have a strong

stability of product research and development. Nowadays, the consumers require the

safety and the efficacy of the cosmetics. The consumers can be reassurance if they use

the products of L’Oreal and Shiseido. The safety of the products and the research base

of THE BODY SHOP are the main points in the integrated marketing communication

campaign. When setting down the integrated marketing communication strategies,

THE BODY SHOP against animal testing should be emphasized a lot, for this is the

foundation of THE BODY SHOP building its reputation in the western countries,

which is also the strength of THE BODY SHOP.

After the competitive analysis, the important factors in integrated marketing

communication campaign are clear. THE BODY SHOP should advertise its brand

strongly for a deep impression of the consumers. THE BODY SHOP should know

what kinds of products are the major advertising objectives. THE

BODY SHOP should use different integrated marketing


communication strategies in China market. THE BODY SHOP should emphasize its

safety and its principles in the campaign.

Ⅲ. Problem and Opportunity Statements

After the detailed situation analysis of THE BODY SHOP, the problems and

opportunities of THE BODY SHOP entering China cosmetic market become clear:

◆ Problem: Although THE BODY SHOP has established a strong reputation and

developed the fixed consumers in the western countries such as U.K., the U.S.A. and

some Asian regions such as Hong Kong, the brand is almost unknown in China

cosmetic market. The biggest problem of THE BODY SHOP entering China is to

increase the public’s awareness and the brand’s reputation and image.

◆ Opportunity: No reputation in China cosmetic market is the problem but it is also

the opportunity. Just because Chinese people have no knowledge about THE BODY

SHOP, which means Chinese consumers also have no bad impression of THE BODY

SHOP. In recent years some famous international brands having had some incidents in

China market, THE BODY SHOP can use this opportunity to build a health, safe and

natural image in Chinese consumers’ mind through the help of integrated marketing

communication. This is also the objective of the integrated marketing

communication campaign. For this purpose, the IMC campaign helps

THE BODY SHOP increase the awareness in China consumers.


. Ⅳ Targeted Audience Profile

◆ Primary Audience: China is one of the biggest countries in the world and has

many different cities, which have different demographic characteristics, geographical

characteristics, and so on. Now most international cosmetic companies set their head

offices in Shanghai, because Shanghai is the financial center of China or in Beijing,

because Beijing is the capital of China. So for THE BODY SHOP, the consumers in

Shanghai and Beijing are the primary audience. According to the survey, the

consumers in Shanghai and Beijing have high income and more awareness of

cosmetic brands. The survey reveals that the major consumers of cosmetics at present

and for a long time will be the female at the age of 20-34 in the two cities. The first

reason is because the female at the age of 20-34 know the personal image and have

the awareness of skin care, hair care and body care. The second reason is they have

begun working and they have the capability to buy the cosmetics. Now Chinese male

cannot be the targeted consumers because most male do not know they should do the

skin care, hair care or body care. Even if they care about the skin care and hair care,

they are not willing to pay money for buying cosmetics as they think the cosmetics

are for the women.

◆ Secondary Audience: The consumers in Shenzhen and Guangzhou

are the secondary audience. The income of the consumers in Shenzhen


and Guangzhou are next to Beijing and Shanghai and they are close to Hong Kong.

They also have the financial capability to afford the diverse cosmetics and for they

have more chances to visit Hong Kong, they know more about THE BODY SHOP as

it has many stores in Hong Kong.

◆ Minor Audience: The minor targeted consumers are in the other cities of China.

The major purpose of THE BODY SHOP entering China in the first several years is to

build the base in Beijing, Shanghai, Shenzhen and Guangzhou. Then based upon the

four cities, the products can be sold to other cities by many kinds of sources.

. Ⅴ Campaign Goal and Objectives

Campaign Goal: Through the research and survey, the problem and opportunity for

THE BODY SHOP is very distinct. The goal of the IMC campaign aims at increasing

THE BODY SHOP brand awareness in China cosmetic market.

Campaign Objectives: Under the goal, there are several objectives the campaign

intending to achieve:

1. Through the campaign, the awareness of THE BODY SHOP among the targeted

audiences (aged 20-34) will be increased from the existing 20% to

60% by the end of the year 2007.


2. THE BODY SHOP will have at least 20 in China four major cities: Beijing,

Shanghai, Shenzhen and Guangzhou.

3. The sales volume of THE BODY SHOP will be increased 30% in the following

year.

4. THE BODY SHOP will occupy 1-2% market share of the cosmetic industry in

China in the following 5 years.

Ⅵ. Campaign Strategies

For THE BODY SHOP entering China, the first activity is to open its Chinese version

website: www.thebodyshop.com.cn. As mentioned before, THE BODY SHOP only

has the English website and it is not convenient for the Chinese consumers to know

about THE BODY SHOP. The Chinese website should keep the most information of

the original English website, the history, the products, the values hold by THE BODY

SHOP and so on. Because the analysis results indicate that the products of THE

BODY SHOP should keep original production. The products in THE BODY SHOP

stores in Hong Kong keep all the labels and the narrations in English, which is not a

problem for Hong Kong people but it is a big problem for Chinese

consumers. The stores salespeople cannot explain the products one by


one, so the products need to be relabeled in China to put the Chinese products’ names

and the function narration on the bottles. These two steps are the first and basic

integrated marketing communication strategies.

Before the detailed integrated marketing communication strategies, whether the

unattached stores or the counters in the emporiums should be chosen. THE BODY

SHOP like using stores to sell the products and the decoration of these stores are

mainly green color, which brings the consumers the natural feel. According to the

survey, 60% respondents choose the unattached stores other than counters or selling

through the telephone and the internet.

The integrated marketing communication strategy will be implemented in three parts:

the stakeholders’ strategy, the sales promotion strategy and the advertising strategy.

1. The Stakeholders’ Strategy: The stakeholders have many definitions and

components. Here the stakeholders are divided into five parts: the consumer, the

community, the industry, the media and the internal employees. The success of any

company is decided by these five stakeholders. To build a good and strong

relationship with them is significant for THE BODY SHOP.

◆ Consumer:

◇ To attract the consumers, the membership program is one of the


methods. When the first THE BODY SHOP store is opened, a membership program

will be launched. When the total consumption reaches 300, the consumers can get a

membership card and this membership card can bring the consumers discount. The

more the consumers buy the products in THE BODY SHOP, the higher discount the

membership card can get. If the consumers buy the products in THE BODY SHOP

store opening day, all the consumers can get a free gift, such as the probational set of

products.

◇ Using leaflets and brochures is another way to attract the consumers. The beautiful

and careful designed guides’ brochures are delivered to all the consumers through the

advertisements attached to the newspaper or sending out in several main commercial

streets. The design of the leaflets and brochures should give prominence to the logo of

THE BODY SHOP. The background color can use THE BODY SHOP symbol: green.

The locations of THE BODY SHOP stores and the promotion activities should be

stated clearly in these materials. For example, if the first THE BODY SHOP store will

open in several days, the location of the store should be made clearly, even attached a

detailed map. On the opening day the membership card and the favorable activities

should also stated clearly, including the conditions to get the card and participate the

activities.

◆ Community:

◇ Community relationship is very important for a foreign companies


invested in China. THE BODY SHOP will try its best to build a strong relationship

with the local community. At the first day of the store opening, THE BODY SHOP

will announce a benevolent donation activity through the mass media. Every year, a

certain amount of the earning of THE BODY SHOP will contribute to some women

foundation in order to help do the research on women cancers, such as mammary

cancer and uterine cancer. The reason for choosing the women foundation is that

women are the main consumers of THE BODY SHOP in China. This action can make

the society especially the women believe that THE BODY SHOP not only care

earning money, but also care the people.

◆ Industry:

◇ Besides getting the support from the consumers and the community, THE BODY

SHOP should win some reputation in the cosmetic industry and public through

sponsorship. Sponsorship of the research on new methods of cosmetic testing will tell

the other competitors and the public that THE BODY SHOP is “against animal

testing” all the time. THE BODY SHOP provides some pictures at the same time to

show how pity the animals are used. THE BODY SHOP will also sponsor the famous

national competition to increase the brand awareness, such as sponsorship of Hunan

TV program “SuperGirl”.

◆ Media:


◇ Nowadays, every company cannot ignore the media relationship, because the

media actually have the powerful influence. The better reports help the selling a lot.

On the opening day of the stores, THE BODY SHOP can invite the media to report

the opening activities. Every journalist who takes part in the opening report will get a

free membership card and a free gift. The only point should be noticed is that every

reporter is the key reporter.

◇ THE BODY SHOP will issue the press release itself. In order to draw attention to

favorable news events, THE BODY SHOP can use cosmetic press advertising,

cosmetic magazine, brochures and direct mail to reach the consumers. THE BODY

SHOP cannot just wait for the media to report for it. Only the active behaviors can

bring the success.

◆ Internal Employees:

◇ For the employees in THE BODY SHOP store, the most crucial task is to increase

their corporate identity awareness. The decoration of THE BODY SHOP stores is

uniform all over the world. Besides the decoration, THE BODY SHOP will design a

special badge or brochure to send out to the employees to commemorate THE BODY

SHOP opening in China. Then THE BODY SHOP is able to design a kind of simple

brooch for the employees to wear every day. These actions is for reminding the

employees they are working for THE BODY SHOP and each of them

is one member of the big family.


◇ To encourage the employees, the subordinates need not always listen to the

managers. THE BODY SHOP may design a special dinner conference which the

managers serve the common workers and they have dinner together each month.

Through these dinner conferences, the managers and the subordinates communicate

better and know about each other more.

◇ All the employees ought to be informed about the things happened in the company

and the development and goals of the company. As an international company, THE

BODY SHOP has to do the best internal communication, and then it can do the good

external communication. For this objective, THE BODY SHOP should start THE

BODY SHOP China internal magazine. In this magazine, there are the objectives and

the goals for THE BODY SHOP in China, the detailed information about all the

products and tools sold in THE BODY SHOP, and other information. Only when the

employees know about their company better, they can introduce the company and the

products to the consumers better.

2. Sales Promotion Strategy: Through the sales promotion, the major aim is to win the

consumers quickly after the entrance and bring the loyal consumers for THE BODY

SHOP. Now there are so many cosmetic brands competing in China market, which all

do their endeavor to gain the consumers. The most effective way is to use sales

promotion to stimulate the consumption. There are three major ways to

do sales promotion.


◆ Membership Program: Membership program has been introduced in the

stakeholders’ strategy for attracting the consumers. Providing the lifelong membership

card to get the special discount for products is a particular way because most cosmetic

brands only provide one-year membership card, which can be used longer if the

consumers can buy a certain amount of products. This one-year membership card can

urge the consumption but in most situations, the consumers will give up. For this, the

consumers may turn to other products, so THE BODY SHOP will provide the lifelong

membership card in order to keep the consumers loyalty. So long as they have one

membership card of THE BODY SHOP, they can always get a discount. The design of

the membership card should be carefully. The young people at present tend to choose

the beautiful or lovely pictures, especially for the girls. The style of the membership

card can keep THE BODY SHOP style: natural. The color must be green. Maybe the

design pictures can be chosen by the consumers themselves. The pictures have two

types: one type is beautiful picture for the women, the other type uses sports picture

for the men. A wonderful card decorates the pocket.

◆ Coupons: THE BODY SHOP provides some coupons for special products in the

certain newspapers and magazines timely. On the one hand, the coupons can stimulate

the special products selling; on the other hand, more consumers will know THE

BODY SHOP, which is another kind of advertising. The most products

selling through the coupons may be the body care products and tools.


Because skin care and hair care products always have the market, while the body care

products and tools are unacquainted for the Chinese consumers. The consumers know

more about the body care products and it can help them have the habit to use body

care products.

◆ Discount: The body care products and cosmetic tools not only can be used in

coupons, but also they can be used in discount. The skin care and hair care products

also should have some discount, but the discount on these two products is different

from the others. If the body care products and cosmetic tools have the 10-20%

discount, the skin care products will only have 5% discount and the hair products will

have 10% discount. The men’s products ought to be paid attention, too. Most Chinese

men don’t use any cosmetics because they think the products are for women. So THE

BODY SHOP use more discount to stimulate it, such as 30% even 50% discount on

men’s products. When they find the cosmetic products also can give them a new feel

and image, they will pay more money on the products. This discount also encourages

the female consumers to buy the products for their male friends or lovers. The

discount information has to be delivered to the public a few days ago through the

newspaper or the television advertisements so as to get the best influence.

3. Advertising Strategy: Advertising is one of the best methods to

reach the most public, especially in China. Without advertising, a


integrated marketing communication campaign is not complete. The advertising is a

fast way for exalting the reputation.

◆ Advertisements for THE BODY SHOP products and the stores: For the consumers

learning about THE BODY SHOP, the advertisements have to contain the detailed

information about the company and the products. The advertisements do not contain

all the information in just one, but they can be produced as a series, which means each

advertisement of this series has one point of THE BODY SHOP. The audience will

have interests in the “TV play series” model to advertise. After watching these

advertisements, the public have the impression about THE BODY SHOP and they

also know what products THE BODY SHOP have. At the end of each advertisement,

it should contain the address of the stores.

◆ Another way to advertise THE BODY SHOP is to use pop star influence. Most

famous cosmetic brands have their products prolocutors, such as SKII has several

Hong Kong famous actresses to show in the advertisements to advertise their products.

Although the computer technology is very advanced nowadays, the style of THE

BODY SHOP is natural and THE BODY SHOP ought to find the suitable prolocutors.

According to the survey, the characteristics of the prolocutors the most respondents

choose are sublimate, natural, beautiful and lovely for female pop star,

while the male pop star should be chipper, handsome and have bright


smile. Though each respondent choose the different female and male pop stars, the

basic principle is to choose the pop stars having the health image. THE BODY SHOP

in other countries and regions such as in Hong Kong does not have any products

advertisements or prolocutors, but in China, THE BODY SHOP is totally a strange

and new brand. Using the pop stars to advocate the products can reduce the strange

feeling of the consumers. Such as Japanese cosmetic brand “DHC” invites the famous

Korean pop stars: Rain and Kim Hee Sun as the Asian region products prolocutors,

which has made “DHC” famous and favorable in a short time. Besides using the pop

stars as the leading actors in the advertisements, THE BODY SHOP can sponsor the

pop stars’ activities and vocal concerts.

◆ Now the media are the channels for influencing the consumers. Many brands are

popular through introducing in some pop magazines. THE BODY SHOP can choose

one or two pop magazines to provide the professional cosmetic advice in a particular

column. This method will have impact on the major consumers’ group of THE BODY

SHOP: the female consumers at the age of 20-34. The female consumers like

consulting some famous pop magazines. When THE BODY SHOP provides the

professional cosmetic advice in the column of the magazines, it can introduce the

products unconsciously and gives the consumers the feel that THE BODY SHOP is a

professional cosmetic brand. Because of the authority of these pop

magazines, the products introduced in the column will be chased after.


Ⅶ. Media Plan

Different media have different characteristics. TV, newspaper, radio, magazine and

internet are the common media channels used by most products. The different parts of

the integrated marketing communication strategy require the different media channels.

◆ The Stakeholders’ Strategy:

The stakeholders are divided into six parts: the consumers, the community, the

industry, the media and the internal employees.

◇ The Consumers: The leaflets and brochures sent out to the consumers need the

print media newspaper. Because the newspaper is the fastest channel and it can reach

the most public in a city. Using the leaflets and brochures attached to the newspaper to

tell the public THE BODY SHOP opening information is the most suitable. If THE

BODY SHOP will open the store in Shanghai, it can choose two or three major local

newspapers such as Wen Wei Po, XinMin Evening News and Jie Fang Daily. The

leaflets and brochures in the newspaper is the whole page color advertisement in A1

of the newspaper at the opening day.

◇ The Community: The main activity is the benevolent donation each year. THE

BODY SHOP will donate a certain amount of the earning to some women foundation

to the cancer research. This yearly activity needs the media report to

reach its purpose. However, the report for this activity may not need


the advertisements in the media. THE BODY SHOP having good relationship with the

media is the primary condition for the “free” report. Based upon the relationship, as

long as THE BODY SHOP sends the press release about the donation activity to the

main media, the journalists will come to report and it becomes the news not an

advertisement.

◇ The Industry: The central purpose for the industry is to convey “Against animal

testing” principle of THE BODY SHOP to the industry. In this part, online media is

one of the best choices, because this message does not need advocate locally and it

can be advertised nationally. For the big country China, only online media have the

power to touch the largest public. Besides the official website of THE BODY SHOP

China, placing interactive advertisements on popular portals, such as Yahoo.com.cn,

Msn.com.cn, Sina.com.cn is capable of getting the impact. All the information related

to the “against animal testing”, such as the sponsorship of cosmetic testing, the

pictures and so on is attached to the advertisements posted on the websites. The online

advertisements are the complete advertisements in the homepage of the website in the

whole year.

◇ The Media and The Internal Employees: These two parts do not need the mass

media to help. Building the relationship with the media only needs the effort of THE

BODY SHOP. The press release, the brochures and the leaflets can be employed the

professional integrated marketing communication agency or can be

completed by the department of THE BODY SHOP. The internal


magazine of THE BODY SHOP is the same. One of departments of THE BODY

SHOP should be responsible for all these affairs independently.

◆ Sales Promotion Strategy: The membership card strategy does not demand the

mass media. Here just introduce the coupons and discount strategies.

◇ Coupons: The coupons are only able to provide the local people. The people get

the coupons from the magazines. The magazines may be not sold locally, but the

coupons in the magazines could make more people knowing THE BODY SHOP.

According to the survey, the most Chinese female consumers often buy the magazines

such as: ELLE, RayLi, COSMO, while the most Chinese male consumers often buy

the magazines related to the sports and some professional areas. The coupons can be

the A4 size of the whole page in the magazines.

◇Discount: The discount information is only offered for the local consumers, so the

local newspapers and television channels are the best choices. The survey shows that

the people who lived in any Chinese cities have the habit to watch the local TV

channels. For example, Shanghai citizens prefer Shanghai Channel to other channels,

even CCTV. The television advertisements can choose the type lasting 15 seconds and

broadcasting during 19:30 and 21:00 every day.

◆ Advertising Strategy: When THE BODY SHOP invites the pop

stars to do the advertisements, the channels should be decided. Based


upon the survey, most respondents think the television advertising is the best channel,

followed by magazine advertising, and then it is the internet advertising. So the TV

advertisements are thought as the most powerful and effective. Nearly 75%

respondents choose the national TV channels such as CCTV 1-8, which are watched

by most Chinese. Besides the national TV channels, there are two local channels

should be emphasized, Hunan TV and Shanghai TV. When asked which TV channels

they watch most, most respondents choose Hunan TV and Shanghai TV. The

“SuperGirl” TV program held by Hunan TV is the most popular and famous TV

program in China. CCTV 5 is the favorite channel for Chinese male consumers. The

men’s products can be advertised on CCTV 5. The advertisements of other products

such as skin care, hair care, body cares products and cosmetic tools can be played on

CCTV 6, CCTV 8, Hunan TV and Shanghai TV, which own the most female audience.

The advertisements also last 15 seconds and is broadcasted during 19:30 and 21:00

every day. The magazines for THE BODY SHOP having a column to introduce the

cosmetic advice can be chosen from ELLE, RayLi or Cosmo. Only one magazine is

enough.

These all integrated marketing communication strategy and the media characteristics

are for THE BODY SHOP building a strong base in the major cities in China. Most of

them target at the stores of THE BODY SHOP in some cities. What

can THE BODY SHOP do to occupy the cosmetic market in other


cities of China? “DHC” gives an excellent example for THE BODY SHOP. The

products are sold directly from the DHC official website, which does not ignore the

consumers in other cities. THE BODY SHOP will announce its free national contact

telephones in the advertisements. The consumers can make the indents in the internet

or through the telephone. In this way, THE BODY SHOP can do the business all over

China.

Ⅶ. Tentative Timetable

The membership card program for the consumers will be implemented through the

whole year. The monthly dinner between the managers and the employees will be held

through the whole year, too. This activity is very important for the internal

communication.

The activities will only launch in January including: leaflets and brochures, media

invitation, the badge, internal magazine. Because the stores of THE BODY SHOP

open in January, the leaflets and brochures and media invitation will be needed in the

beginning. The badge and the internal magazine for the internal employees are needed

when THE BODY SHOP opens its first store in China.

When THE BODY SHOP stores have operated in China for the several


months, the benevolent donation will be held in July and the sponsorship will be

carried through in October. Holding these two activities in the middle and the end of

the year is to catch the attention of the public and strengthen THE BODY SHOP

image in China. All these important activities will be announced with the press release

to involve the media reporting.

The coupons and discount sales promotion strategies will be used timely. If the public

can get the information from THE BODY SHOP frequently in the whole year, the

impression should be strengthened. However, THE BODY SHOP cannot have so

much news to report all the year, so the coupons and discount notice of THE BODY

SHOP products appeared in the newspapers, TV and magazines would create the

opportunity. In this manner, the public can see THE BODY SHOP in the mass media

through the whole year. In order to get the most effect, the coupons will be held in

March, June, October, while the discount will be appeared in January, May,

September and December.

Advertising strategy also needs to be used often in the mass media. In January, the

advertisements are for the opening of the stores of THE BODY SHOP in China. Pop

stars prolocutor for the products will be in February. Then from March to December,

all the advertisements having the pop stars are the TV play series. The

column for THE BODY SHOP giving cosmetic advice in the magazine


will begin from March, too. Because of the cost, it only needs to buy the column in

the magazine in March, May, September and December.

The detailed tentative timetable can be seen in the appendix 7.


Ⅷ. Budget

Stakeholders’ Strategies RMB

Newspaper for Leaflets & Brochures 180,000

Online Media for Ad. 72,000

Subtotal: 252,000

Sales Promotion Strategies

Magazines for Coupons 747,000

Newspaper & Television for Discount 832,000

Subtotal:1,579,000

Advertising Strategies

Newspaper & Television for Ad. 1,963,000

Magazines for Column 42,500

Subtotal: 2,005,500

Contingency Subtotal Approx: 50,000

Approx Total Cost: 38,865,000


Ⅸ. Campaign Evaluation

Survey is a very important method in this campaign. This integrated marketing

communication campaign requires the post-test to evaluate. All the strategies, media

characteristics will be measured against the predetermined objectives. In order to

finish the communication objectives set in this campaign, a post-survey evaluating is

very important because the effect of the campaign is to see whether the awareness and

attitude of the targeted consumers have been changed after the whole campaign. The

pre-test, the questionnaire, is the frame of reference of the post-test result. For the

sake of gathering detailed feedbacks from the respondents, the focus groups are

conducted. The target consumers are interviewed before and after the campaign to

check how they change their attitudes. After the campaign, the respondents are

expected to be able to recall the advertising or the other activities of the campaign for

increasing at least 40% awareness. The respondents are asked to show their preference

for choosing the products of THE BODY SHOP as the cosmetic brand with

significant rise of percentage and they know the most products, the principles and the

values of THE BODY SHOP in the whole China.

Besides the pre-test and post-test survey, the evaluation can also be conducted through

macro measurement and micro measurement.

◆ Macro Measurement:


◇ Attitudinal: The first factor in macro measurement is attitudinal. It is like the

survey done in pre-test and post-test. The major goal of the campaign is to increase

THE BODY SHOP brand awareness of China consumers. The attitudinal change

determines the success of the campaign. Survey is the quantitative method.

Qualitative method is one-on-one interviews. The researcher can telephone the

respondents to check whether THE BODY SHOP brand awareness has increased.

◇ Behavioral: After the brand awareness has been increased, the behaviors f people

are very crucial, too. The final objective of all the activities is to urge people buy the

products of THE BODY SHOP. The evaluation method for the behavioral

measurement is easier. Analyzing the selling situation of the whole year can reach the

objective.

◆ Micro Measurement: To analyze whether THE BODY SHOP campaign has

impact on consumers, community and industry, media can reveal some information.

Observe and study the competitors’ promotion activities on the TV, newspapers,

magazines and internet. If there are obvious or unobvious information related to THE

BODY SHOP, the campaign reaches the effect.

Ⅹ. Conclusion

THE BODY SHOP is a famous international cosmetic brand in


western countries and some Asian regions. It has the abundant types of products.

However, if THE BODY SHOP wants to have more development in the career and

does not become the loser in the cosmetic market competition, it should enter China

cosmetic market as soon as possible. As one of the fastest economic growing country,

China cosmetic market is under developing and has much potential. Succeeding in

China cosmetic market means that THE BODY SHOP occupies the biggest cosmetic

market in the world.

According to the survey, THE BODY SHOP brand awareness is very low in China. It

is the biggest weakness but it is also an opportunity for THE BODY SHOP to build a

good image in China through the careful designed strategy. The integrated marketing

communication campaign for THE BODY SHOP entering China is going to establish

the good image into professional, reliable and healthy. Integrated marketing

communication strategy should consider the stakeholders and use the sales promotion

and advertising strategy. It is expected that the Chinese consumers will accept THE

BODY SHOP cosmetic brand and become the loyal consumers to it.

The creative strategies are considered in three parts: the stakeholders’ strategies, sales

promotion strategies and advertising strategies. In the stakeholders, consumers,

community, industry, media and internal employees are all adopted

different strategies. Coupons and discount are still the significant tools


in sales promotion. Finally, advertisements in TV are necessary and it “borrows” the

influence of pop stars. These creative campaign strategies need television, newspapers,

magazines and internet channels and they will be implemented all the year.

In the end, evaluation is conducted in the form of survey and macro and micro

measurements. The pre-test and post-test surveys check whether the campaign is

effective. The attitudinal and behavioral factors belong to macro measurement. The

increasing awareness and the consumption behaviors of the consumers are the proofs

of the success of the campaign. The micro measurement mainly uses media.

Ⅺ. References

Electronic references from website. Retrieved May 26, 2006, from

http://www.thebodyshopinternational.com/web/tbsgl/indexTiles.jsp?tbsmain=pr

oducts

Electronic references from website. Retrieved May, 2006, from

http://www.thebodyshopinternational.com/web/tbsgl/about.jsp

Lane, W.R. & Russell, J.T. (2003). Advertising. U.S.A.: Pearson

Education, Inc.


Lattimore, D., Baskin, O. & Heiman, S.T. (2006). Public Relations: The Profession and

The Practice. U.S.A.: McGraw-Hill Companies, Inc.

Matera, F.R. & Artigue, R.J. (2005). Public Relations Campaigns and Techniques.

U.S.A.: Pearson Education, Inc.

Seitel, F.P. (2001). The Practice of Public Relations (8th ed.).U.S.A.: Prentice Hall

Shuquan, Li (2003). China Cosmetic Market. China: STAT-USA Market Research

Reports.

THE BODY SHOP (2005). THE BODY SHOP Values Report 2005. retrieved May, 2006,

from http://valuesreport.thebodyshop.net/.

Wells, W., Burnett, J. & Moriarty, S. (2005). Advertising Principles and Practice (6th ed.).

U.S.A.: Pearson Education, Inc.

Wilcox, D.L. (2005). Public Relations Writing and Media Techniques (5th ed.). U.S.A.:

Pearson Education, Inc.

Appendices

Appendix 1: Questionnaire (Chinese Version) Page 1

你好，非常感谢参与这项不记名的问卷调查活动。我是香港浸会大学传理学院研究生，本人

保证此调查结果仅用作香港浸会大学毕业设计，并不用作任何商业活动。请不要参阅任何资

料或是网站信息，直接完成问卷。如有任何疑问，请联系我：[email protected]。麻烦在完成本问卷后，只需要标明题号连同答案交还调查员，谢谢你的合作。 1. 请问你的年龄是：

A）15-19 B) 20-24 C) 25-34 D)35-44 E) 45-54 F) 55 或以上

2. 你的性别： A) 男 B) 女

3. 职业_____________ 现居住地_____________ 4. 请问你的最高学历，包括目前正在就读的是：

A) 高中或以下 B) 中专 C) 大专 D）本科 E）硕士或以上 5. 请问知道欧莱雅品牌吗？

A) 知道 B) 不知道

6．（题 5 选 B，跳过此题）从何种渠道得知欧莱雅？（可多选） A) 朋友 B) 电视广告 C)报纸广告 D) 杂志广告 E)网络 F) 广播电台 G) 其他 7. 请问知道资生堂品牌吗？ A) 知道 B) 不知道 8.（题 7 选 B，跳过此题）从何种渠道得知资生堂？（可多选） A) 朋友 B) 电视广告 C)报纸广告 D)杂志广告 E)网络 F) 广播电台 G)其他 9.（题 5 和题 7 都选 B，跳过此题）你觉得欧莱雅和资生堂，谁的市场宣传推广做的比较好？

A) 欧莱雅，请简要解释原因__________________________________________________ B) 资生堂，请简要解释原因___________________________________________________ C)两者都不好 D)两者都好

10. 购买过何种品牌的化妆品__________________________________________________

11. 知道 The Body Shop （中译名：身体小铺）品牌吗？ A) 知道 B) 听说过 C) 完全不知道 12．知道 The Body Shop 有哪些系列产品吗？

A) 知道 B) 不太清楚 C) 完全不知道。

13. 知道 The Body Shop 所倡导的理念是什么吗？

A) 知道，是______________

B) 不太清楚 14．你觉得 The Body Shop 要进入中国内地市场，因靠什么取胜？（本题可多选） A)价格 B)质量 C)服务 D)产品宣传，推广 E)其他

15. 你觉得 The Body Shop 以何种形式销售最好？

A)商场专柜 B)独立的专卖店 C)电话直销（如：日本化妆品牌 DHC）

D)网络销售 E)其他

16. 你觉得中国的哪位明星（包括港，澳，台地区的明星）代言 The Body Shop 会最具有号

召力？男明星______________________，请简要说明原因______________________________

女明星______________________，请简要说明原因______________________________

17. (男性请略过本题) 作为一名女性，你会购买 The Body Shop 的系列护肤及身体护理产品

吗？ A)会 B)不会

18. (女性请略过本题) 作为一名男性，你会购买 The Body Shop 的男性系列护肤及身体护理

产品吗？ A)会 B)不会 19．你比较注重的是：（本题可多选） A)脸部护理产品 B)头发护理产品 C)身体护理产品 D)化妆品 E)其他

20. 你觉得以何种方式宣传 The Body Shop，效果将会最好？（可多选，但不要超过 3 个） A)电视广告 B)报纸广告 C)杂志广告 D)网络宣传

E)广播电台 F)其他

21. 如以电视广告宣传，那种效果最好？ A)地方性电视台，如：北京台，上海台等。 B)全国性电视台，如：中央电视台 22. 平均下来每月你会花多少钱在护肤，化妆品上？ A)100 元以下 B)100 至 500 元 C)500 至 1000 元 D)1000 元以上

E)一般不会购买

23．请列出你常看得杂志名称：___________________________________________________ 请列出你常看得报纸名称：___________________________________________________ 请列出你常看得电视台：_____________________________________________________

∽ 问卷完 ∽

非常感谢你完成此问卷，请标明题号连同答案交还调查员。

再次感谢你的合作！！同时感谢辛苦帮我完成调查工作的调查员，谢谢！

Appendix 2: Questionnaire (English Version) Page 4

Hello, thank you very much for answering this questionnaire. This is the research student of the School of Communication of Hong Kong Baptist University. I promise that the research results are just for the graduation project but not any commercial purposes. Please answer the questionnaire directly. Please do not consult any other information from the internet and so on. There is no correct or wrong answer; your personal views are expected. Thank you for your co-operation. If you have any questions, please contact me: [email protected]. When you finish the questionnaire, just give the question number and the answers to the questionnaire collectors. Thank you. 1. Could you please tell me your age? A）15-19 B) 20-24 C) 25-34 D)35-44 E) 45-54 F) 55 or above 2. Could you please tell me your gender? A) Male B) Female 3 Your occupation_____________. Now reside in________________. 4. Could you please tell me your highest educational level (including the degree in

process now)? A) High school or below B) Technical secondary school C) Junior college D）Bachelor Degree E）Postgraduate Degree or above

5. Do you know about L’OREAL cosmetic brand? A) Yes B) No 6. (If No.5 chosen B, drop) From which channel do you know about L’OREAL? (You

can choose more than one answer) A) Friends B) TV advertisements C) Newspaper advertisements D) Magazine

advertisement E) Internet F) Radio advertisements G) Others 7. Do you know about Shiseido cosmetic brand? A) Yes B) No 8. (If No.7 chosen B, drop) From which channel do you know about Shiseido? (You

can choose more than one answer) A) Friends B) TV advertisements C) Newspaper advertisements D) Magazine advertisement E) Internet F) Radio advertisements G) Others

9. (If No. 5 & No. 7 chosen B, drop) In your opinion, do you think whose advertisement is better?

A) L’OREAL, please explain briefly_________________________________ B) Shiseido, please explain briefly___________________________________ C) Both are not good enough D) Both are good enough 10. Which cosmetic brands have you brought? ______________________________ 11. Do you know about THE BODY SHOP? A) Yes B) Just hear about C) Never hear. 12. Do you know which products series THE BODY SHOP owns? A) Yes B) Know a little C) Never hear 13. Do you know about the values hold by THE BODY SHOP? A) Yes, the values are_________________________________

B) No 14. If THE BODY SHOP plans to enter China market, which factors do you think are

the most important? (You can choose more than one answer.) A) Price B) Quality C) Service D) Integrated marketing communication&

Advertisements E) Others

15. Do you think which selling forms adopted by THE BODY SHOP could be the

most suitable? A) Counters in emporium B) Unattached stores C) Direct selling (Like DHC) D) Internet Selling E) Others 16. Which Chinese pop stars (including Hong Kong, Macao, Taiwan regions) are the

most suitable products’ prolocutors for THE BODY SHOP? Male pop star____________________ Explain briefly_______________________ Female pop star__________________ Explain briefly_______________________ 17. (Men omit this question) As a woman, are you willing to buy the cosmetic

products of THE BODY SHOP? A) Yes B) No 18. (Women omit this question) As a man, are you willing to buy the cosmetic

products of THE BODY SHOP? A) Yes B) No

19. Which products do you pay more attention to? (You can choose more than one

answer) A) Skin care products B) Hair care products C) Body care products D) Make-up E) Others 20. Through which channels to advertise THE BODY SHOP, it can be the most

effective in your opinion? (Choose no more than three answers) A) Television advertisements B) Newspaper advertisements

C) Magazine advertisements D) Internet advertisements E) Radio advertisements F) Others

21. If using the TV channels to do the advertisements, which form is the best? A) Local TV channels, such as Beijing TV, Shanghai TV, etc. B) National TV channels, such as CCTV, etc. 22. Do you spend how much on cosmetic products averagely on each month? A) 100RMB or below B) 100RMB~500RMB C) 500RMB~1000RMB D) 1000RMB or higher E) don’t spend money on cosmetic brands 23. Please cite several magazines you watch frequently________________________ Please cite several newspapers you watch frequently_______________________ Please cite several TV channels you watch frequently______________________

∽ THE END ∽ Thank you for your assistance and your invaluable views.

Thank the questionnaire collectors at the same time.

Appendix 3: Results of Questionnaire Page 7

你好，非常感谢参与这项不记名的问卷调查活动。我是香港浸会大学传理学院研究生，本人

保证此调查结果仅用作香港浸会大学毕业设计，并不用作任何商业活动。请不要参阅任何资

料或是网站信息，直接完成问卷。如有任何疑问，请联系我：[email protected]。麻烦在完成本问卷后，只需要标明题号连同答案交还调查员，谢谢你的合作。 6. 请问你的年龄是：

A）15-19 (6%) B) 20-24 (60%) C) 25-34 (19%) D)35-44 (8%) E) 45-54 (4%) F) 55 或以上 (3%)

7. 你的性别： A) 男 (41%) B) 女 (59%)

8. 职业_____________ 现居住地_____________ 9. 请问你的最高学历，包括目前正在就读的是：

A) 高中或以下(10%) B) 中专(1%) C) 大专(18%) D）本科(50%) E）硕士或以上(21%) 10. 请问知道欧莱雅品牌吗？

A) 知道 (90%) B) 不知道 (10%)

6．（题 5 选 B，跳过此题）从何种渠道得知欧莱雅？（可多选） A) 朋友 (12) B) 电视广告 (33) C)报纸广告 (6) D) 杂志广告 (22) E)网络 (5) F) 广播电台 (5) G) 其他 (10) 8 Respondents do not choose any answers. 7. 请问知道资生堂品牌吗？ A) 知道 (82%) B) 不知道 (18%) 8.（题 7 选 B，跳过此题）从何种渠道得知资生堂？（可多选） A) 朋友 (17) B) 电视广告 (19) C)报纸广告 (6) D)杂志广告 (23) E)网络 (7) F) 广播电台 (1) G)其他 (5) 14 Respondents do not choose any answers. 9.（题 5 和题 7 都选 B，跳过此题）你觉得欧莱雅和资生堂，谁的市场宣传推广做的比较好？

A) 欧莱雅 (57%)，请简要解释原因________________________________ B) 资生堂 (25%)，请简要解释原因________________________________ C)两者都不好 (5%) D)两者都好 (13%)

10. 购买过何种品牌的化妆品__________________________________________________

11. 知道 The Body Shop （中译名：身体小铺）品牌吗？ A) 知道 (20%) B) 听说过 (14%) C) 完全不知道 (66%) 12．知道 The Body Shop 有哪些系列产品吗？

A) 知道 (10%) B) 不太清楚 (19%) C) 完全不知道。(71%)

13. 知道 The Body Shop 所倡导的理念是什么吗？

A) 知道 (4%)，是______________

B) 不太清楚 (94%) 14．你觉得 The Body Shop 要进入中国内地市场，因靠什么取胜？（本题可多选） A)价格（23） B)质量 (33) C)服务 (20) D)产品宣传，推广 (44) E)其他 (9)

15. 你觉得 The Body Shop 以何种形式销售最好？

A)商场专柜 (28%) B)独立的专卖店 (60%) C)电话直销 (5%)

D)网络销售 (5%) E)其他 (1%)

16. 你觉得中国的哪位明星（包括港，澳，台地区的明星）代言 The Body Shop 会最具有号

召力？男明星______________________，请简要说明原因______________________________

女明星______________________，请简要说明原因______________________________

17. (男性请略过本题) 作为一名女性，你会购买 The Body Shop 的系列护肤及身体护理产品

吗？ A)会 (55%) B)不会 (45%)

18. (女性请略过本题) 作为一名男性，你会购买 The Body Shop 的男性系列护肤及身体护理

产品吗？ A)会 (39%) B)不会 (61%) 19．你比较注重的是：（本题可多选） A)脸部护理产品(58) B)头发护理产品(26) C)身体护理产品(22)

D)化妆品(13) E)其他(1) 1 Respondent does not choose any answers.

20. 你觉得以何种方式宣传 The Body Shop，效果将会最好？（可多选，但不要超过 3 个） A)电视广告 (59) B)报纸广告 (14) C)杂志广告 (42)

D)网络宣传(22) E)广播电台 (3) F)其他 (4)

21. 如以电视广告宣传，那种效果最好？ A)地方性电视台 (25%) B)全国性电视台 (75%) 22. 平均下来每月你会花多少钱在护肤，化妆品上？ A)100 元以下 (50%) B)100 至 500 元 (28%) C)500 至 1000 元 (3%)

D)1000 元以上 (0) E)一般不会购买 (19%)

23．请列出你常看得杂志名称：___________________________________________________ 请列出你常看得报纸名称：___________________________________________________ 请列出你常看得电视台：_____________________________________________________

∽ 问卷完 ∽

非常感谢你完成此问卷，请标明题号连同答案交还调查员。

再次感谢你的合作！！同时感谢辛苦帮我完成调查工作的调查员，谢谢！

注意：凡是可以有多个选择多个答案的题目，调查结果用人数表示选择每项答

案的数目，而不是百分比．

Appendix 4: THE BODY SHOP Company Introduction Page 10

THE BODY SHOP Values:

THE BODY SHOP Symbols:

THE BODY SHOP Development in the World:

(Source: http://www.thebodyshopinternational.com/web/tbsgl/about.jsp)

Appendix 5: THE BODY SHOP Product Introduction Page 11

Accessories Bath & Body

Fragrance Hair

Home Fragrance Make-up

Mens Skin

Sun Well Being (Source:http://www.thebodyshopinternational.com/web/tbsgl/indexTiles.jsp?tbsmain=products)

Appendix 6: Tables Page 12

Table 1 Annual Sales of China Cosmetic Industry (1990-2001)

Note: The statistics contained in this table only cover retail sales of the following six product categories but do not include those sales to the beauty salons and barber shops: 1) Hair Care (2-in-1, shampoos, conditioners, colorants, and styling agents) 2) Skin Care (Facial, body, hand, and sun care) 3) Color Cosmetics (Lipsticks, facial powder, eye shadow, nail polishes) 4) Personal Care (Baby care, bath & shower, deodorants, shaving/grooming) 5) Oral Hygiene (Toothpaste, toothbrushes, mouth wash, mouth fresher, dental floss) 6) Fragrance (Mass and premium) (Source: China Cosmetics Review (1985-2001), press reports, and interviews)

Table 2 China's Import and Export Value of Cosmetics (1996-2001)

Unit: US$ mn

Year 1996 1997 1998 1999 2000 2001

Export 81.5 92.0 125.1 127.1 187.8 238.8

Import 26.0 25.5 34.3 42.7 65.8 67.7

(Source: Beijing Hua Tong Ren Market Information Co. Ltd.)

Year 90 91 92 93 94 95 96 97 98 99 00 01

Annual sales

(RMB/bn)

4 5 7 9 14 19 22 25.3 27.5 30 35 40

% change - 25 40 29 56 36 16 15 8.5 7.1 16.7 14

Per capita

Consumption

(RMB)

3.3 4.3 6.0 6.8 9.6 16 18 21 22 23 27 31

Table 3 China's Cosmetics Import by Region (1996-2000)

Import % of Share Rank

Countries or

Regions QTY Value

($1,000)

QTY Value

1 USA 7,986 49,348 20.95 25.39

2 France 2,879 33,131 7.55 17.05

3 Japan 2,483 24,993 6.51 12.86

4 Hong Kong

5,171 13,167 13.56 6.78

5 Taiwan 4,988 12,617 13.08 6.49

6 Singapore 2,061 11,186 5.41 5.76

(Source: Beijing Hua Tong Ren Market Information Co, Ltd.)

Table4: Respondents Characteristics of the Survey

Number Percent

Gender Male 28 41

Female 40 59

Age 15-19 4 6

20-24 41 60

25-34 13 19

35-44 5 8

45-54 3 4

55-above 2 3

High School or Below

7 10

Technical Secondary School Diploma

1 1

Junior College Diploma

12

18

Bachelor Degree

34 50

Educational Level

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14 21

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Appendix 8: Competitors Advertisement Page 16 L’OREAL Company Advertisements:

(Source: http://www.xicn.net/life/finance/item/2002-04-17/68232(7).html)

Shiseido Company Advertisements

(Source: http://lady.tom.com/1003/1019/20051123-93189.html)

Appendix 9: Press Release Samples Page 18

FOR IMMEDIATE RELEASE Contact Name: Flora XU, Fang ﹡﹡﹡Public Relations Agency Email:[email protected] Phone: (852) 67562172 (086) 0791-6241312

THE BODY SHOP will open the First Store in Shanghai

(SHANGHAI, January 10, 2007) ---- The famous Britain cosmetic brand-THE

BODY SHOP-has planned to enter China. The first store of THE BODY SHOP in

China will be opened in Shanghai. The location of the store is chosen in the

commercial road, Huaihai Road.

The store is the beginning of THE BODY SHOP in China. THE BODY SHOP

plans to open more stores in Shanghai, and will extend the stores to Beijing, Shenzhen

and Guangzhou. If the consumers do not live in the four cities, they can buy the

original THE BODY SHOP products from THE BODY SHOP China website. All the

products of THE BODY SHOP sold in China are produced in U.K. and THE BODY

SHOP hope to bring the Chinese consumers the “Original” enjoy.

- ENDS -

About THE BODY SHOP

THE BODY SHOP is a cosmetic brand based on Britain. It has complete products

series: skin care, hair care, body care products and cosmetic tools. For more detailed

information, please consult www.thebodyshop.com.cn.

integrated marketing communication campaign for the body...

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