no. 7 · web viewall are manufactured in the time-honored traditional way using fine natural and...

Body Naturalism – Herbal and Organic Body Care by Taiwan’s Plants.

Group 7

9672504 陳建堯 (Kevin) Leader 9672502 雷亞珍 (Kelly)9672506 張靜安 (Cynthia)9672509 崔嘉玲 (Tracy)9672510 黃基福 (Jeff)9672516 林文源 (Harry)

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Body Naturalism Herbal and Organic Body Care by Taiwan’s plants


Index

BACKGROUND......................................................................3ANALYZING BUSINESS MARKETS..............................................5MARKETING SEGMENT AND BRAND EQUITY...............................5COMPETITIVE ANALYSIS..........................................................7BRAND POSITION.................................................................8PRODUCT STRATEGY..............................................................9PRODUCTS AND OFFERING...................................................10BENEFITS FOR BUSINESS......................................................11PRICE STRATEGY.................................................................12CHANNEL LEVELS................................................................18DIRECT MARKETING AND THE SALES FORCE............................21Customer-adoption process..........................................23

Background

Body Naturalism Body Care by Taiwan’s Plants focusing on the well-being of women and whole family alike. It seeks to create harmony which links the pleasure of the senses with inner balance. The products range from personal body care lines to cosmetics. All are manufactured in the time-honored traditional way using fine natural and organic ingredients.

Body Naturalism creates natural body, skincare and fragrance products for women

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and whole family. All the product ranges are presented in traditional packaging that reflect the true elegance of simplicity. And all are produced according to strict ethical guidelines.

Body Naturalism is true to itself and its founding principles. Authenticity and effective natural products designed to procure true well-being. True stories behind the development of our products and true pleasure in their use.

Gantt chart

10/18 10/25 11/1 11/15 11/22 11/29 12/6 12/13 OwnerA~C AllD~G JEFFH~J TRACYK~M KEVINN~P CYNTHIAQ~S HARRYT~W KELLY

Reference

Hand Touch/吳昭儀等-天下雜誌L’ERBOLARIO/ http://www.lerbolario.com.tw/brand3.htmlDiscover Plants in Taiwan/ http://taiwanplants.ndap.org.tw/L'OCCITANE/ http://www.loccitane.com.tw/tc/index.asp

Analyzing Business Markets

There are lots of skin care companies all over the world, but most of them are not organic and

are from others countries which won quite different nature environments and life styles. In

order to offer suitable skin care products and bodies offering to Taiwanese, we focus on

creating a brand which can support organic and natural products to people. In skin care

products markets, people mostly buy their skin care products from public shops or

departments stories, however, there are one group who have sensitive skins cannot not find

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http://www.loccitane.com.tw/tc/index.asp

http://taiwanplants.ndap.org.tw/

http://www.lerbolario.com.tw/brand3.html


what they need easily. For example, it’s one out over six of Taiwanese have sensitive skins in

Taiwan since environment pollution and heavy life pressure. Therefore, the market of skin

care product is leak for sensitive and real natural supplement.

We found most of skin care products will be charged import duty and VAT while they are

delivered to Taiwan, thus, the purchasing costs of Taiwanese consumers are more expensive

than people who live near production companies or countries. You must have that kind of

experience which your relatives or friends asked you to buy skin care products at duty free

shops if you went to other countries. It tells us that people want to use famous skin care

products and expect to low down their cost. Customers always want to buy something as

cheap as possible.

In addition, we found the most powerful purchasing powers are at the age form 25 to 44 who

belong to white cellar level and well educated by colleagues or universities. The population of

that group is around 1.7 million in Taiwan, so we start to make a research to know who will be

our major competitors. After researching 30 companies of skin care, LOCCITANE, AVEDA

and LERBOLARIO will be our competitors since they all support organic and nature skin care

products to customers and are well-known by Taiwanese. You will see their own shops,

advisements and department sale channels easily; thus, we need to create the variation win

our market share and growth rate.

Marketing Segment and brand equity

Aiming at the white cellar level that the age at 25 to 45 since they are too busy to relax

themselves but earning good salaries is our major market segment. The total population of

that group is 1.7 million; therefore, we are not only provide skin care products but also offer

fragrance、aromatherapy and SPA to help working people to release pressure. Thorough the

following service and offering we expect to set up our own brand equity.

Offering the best support for customers based on organic products and excellent

service.

Good will in humanity care:

We expect not only earn profit but also do our best to support social care and cultural

attention. In order to take the responsibility of Taiwan citizen, Body Naturalism will

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donate 2 percentage of total profit to support disadvantaged minority.

The business image of Body Naturalism:

We expect to recall and affect our society care through the sincere business spirit, fair

service attitude and anti-pollution.

Body Naturalism composition which is made from organic plants which are only grow

in Taiwan qualified by A.O.C, a controlled origin in France, so that our customers can

trust our quality certainly.

100% bought form Taiwanese farmers that qualified by organic procedure and help to

develop intensive agriculture of Taiwanese farmers.

Suitable for people who have sensitivity skin and highlight that even newborn baby

can use them without any consideration. Infant population:17.9% of Taiwanese who

need light lotion to keep current status. Sensitive skin share of Taiwanese is 1/6; it

means one out over six of Taiwanese have the problem of sensitive skin .Such as

allergy and inflamed skin that caused by environmental factors, they may not and not

easy to find soft products that won’t cause negative reflection.

Focusing on skin care products, fragrance, aromatherapy and SAP that can apply on

face and body. Normally products are likely be facial skin products, cleaners & lotions

for body and hand.

In conclusion, through above efforts we expect to draw and set up the brand equity of

Body Naturalism based on skin care representative of the most natural and organic

all over the world. Once customers want to find this kind of product, they must get in

connection with Body Naturalism.

Competitive analysis

Brand skin care goods are divided into three categories: special counter goods brand, Open-shelf Store and Online channel brand

(1) Special Counter brandThe Brand that has its special counter in Major department stores Such as:

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L’Occitane, a unique France brand focusing on the well being of women and men alike. AVEDA, which setup its mission as an example of environment leadership and responsibility around the world. Kiehl’s, from New York with good background of professional beauty, pharmaceutical, medical and herbal.

(2) Online Channel Brand Product name, price or other matters of Contents or advertising, through website, in order to sell the goods, Such as: Beauty DIY, a local famous DIY ski care brand.

(3) Open-Shelf store channel Products on display will be a fixed shelf space and provide product information, prices, and the trial and so on, The main locations for the establishment of drug cosmetics shops such as: Kangshimei, and other open posture Showcase. Such as: Burt’s Bee, Boots , TSAIO ,

L’OCCITANE ; AVEDA ; L’ERBOLARIO , these three brand are in leading position of herbal skin care products. Making research on them and find out the strength or weakness is necessary for new brand to identify the position and opportunity in the market. The SWOT analysis of Body Naturalism as following:

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StrengthMade by 100% organic herbal

plant in Taiwan.

Cost effective.

WeaknessWeak Brand awareness .

Lack of capital, could not

implement powerful promotion .

Few experience on manufacturing.

OpportunityLOHAS life style is a trend in

Taiwan.

Type of agriculture is changing from traditional to intensive.

ThreatGlobal brands monopolize the market, difficult for new brand to survive.

Unstable resources of ingredients.


Brand Position

Body Naturalism was found in 2007. The Headquarter is located in Hsinchu City. The Taiwan local herbal skin care products manufacturer and service provider. The target customer are those people who care about society; nature environment and enjoy the leisure time during vacation. Because all raw materials are obtained from Taiwan local herbal plant, Body Naturalism may provide the products with cost effective and good service close to end user.Comparing with others skin care brand in Taiwan, Body Naturalism more focus on the new life style – LOHAS. LOHAS is an acronym for Lifestyles of Health and Sustainability, a market segment focused on health and fitness, the environment, personal development, sustainable living, and social justice. Body Naturalism practice as a responsible capitalism company by providing good and services using economic and environmentally ingredients. Our goals are to create and develop a great brand by Taiwan Local, Organic, Herbal and Authentic plants; not only the skin care products, but also the service we provide to all customers elaborately. Local, Organic, Herbal, Authentic and Service, five simple elements create a new LOHAS style life. A new skin care brand – Body Naturalism.

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Product Strategy

Face skin care and fragrance are selected to be the star product of our brand. Themanufacturing capability and promotion activities are most important consideration

of these star products.For getting more revenue and margin, we are also considering to setup a mix up products for package selling.(Star products combine with new developed products for testing the reaction of market)

There are many authenticity plants in every season in Taiwan. Providing a specific Product to each season can be a good way to promote the brand visibility in market.In spring, Mume Hualoushui valuable to the main components, with aloe and natural moisturizing factor, soothing effect can be used for the face, body and hair. In summer, we provide the sun protect product with Juniper. In autumn, Evening Primrose is good for skin brightening and leap care series products in winter by Chinese soapberry.

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Products and Offering

Hair Salon, SPA, NAIL service, Herb Combination.Asides from the direct sales web, Body Naturalism sell products and deliver the product spirit through our own Hair Salon, SPA and Flag stores. We provide hair, spa, nail service, and customized herb combination to customers.

A gift certificate for Corporate, Renaissance~Provide all series of Body Naturalism product line in Renaissance.Hold new product conference press, and event, to approach the target customers.And we provide coupon/ gift certificate for cooperate users for their employee, associates, clients or prospective business partners gift certificates.

We set up “Renaissance” and promote the concept as below:"Serenity in the City"The Renaissance (Concept flag store) is one of many top rated Body Naturalism’s day spas throughout the world that are committed to rejuvenation, reducing stress and total pampering with Taiwan organic plant-based products and extraordinary skin and body treatments. We sell and use Body Naturalism products, carry the full Body Naturalism product line and exclusively offer Body Naturalism services including hair cutting and coloring, as well as body, facial and nail services.

(Concept flag store “Renaissance”)

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Benefits for Business

Let the Renaissance Spa provide a unique way to thank your employees, associates, clients or prospective business partners. Gift certificates to the spa are always an excellent way to show your appreciation. We can also host small groups to provide a bit of luxury and allow an escape from the daily grind!

Not appropriate for men you might say? Nationally, spa services have been growing at double digit rates exponentially every year. A large part of this growth is due to men. People are more concerned with preventative wellness, and both men and women have embraced alternative therapies in all aspects of health.

Relaxation has been proven to be an effective measure to not only reduce stress, but to have profound physiological effects on the body's systems. Massage and related therapies increase circulation, improve neural functioning and provide endorphin release which helps slow the aging process. Body work has been related to a reduction in cellulite, and it helps promote the elimination of toxins in the body.

Corporate Gift CertificatesThe Renaissance Spa would be happy to work with your company if you would like to purchase gift certificates. This type of gift stands out from the crowd, it is more personal and likely to be remembered far better.

Please contact us directly for large orders viaRenaissance Spas, Inc. www.BodyNaturaism.com; www.renaissance.com

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http://www.renaissance.com/

http://www.BodyNaturaism.com/


Price Strategy

Step 1: Selecting the pricing objectiveBody Naturalism focus on age 25~45, white collar female.They are the host of family purchaser, with strong personal taste of cosmetic and or body cleaning product.We surveyed and found, they are not the group of high pricing sensitivity, but they ask for pricing worth, safe and utility product.So we set up the pricing in mid range, the average is NT$1,600/ea.According to our survey, the range is the most part distribution that consumer is willing to give a try, and believe it will have considerable quality.

Step 2: Determining Demand- Price sensitivity: Average- Estimating demand curves: Growing- Price elasticity of demand: Low

Step 3: Estimating Cost- Fixed cost: A company must ay bills each month for rent, heat, interest, salaries, bank interest and so on, regardless of output.- Variable cost per unitvary directly with the level of production ie, the bonus of direct sales rep, the marketing event, and so on.

- Total cost: consist of the sum of the fixed and variable costs for any given level of production.

- Average cost: the cost per unit at that level of production, it’s equal to total costs divided by production. We predict the cost is 18% of sales pricing, please refer to Table 1.

Step 4: Analyzing Competitors’ costs, prices, and offersWe surveyed and set up the pricing is in mid-range around NT$1,600/ea.

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Step 5: Selecting a Pricing Method- Unit cost = variable cost + fixed cost/ unit sales - Target-return price = unit cost + (desired return x invested capital/ unit sales)- Break-even volume = (fixed cost/ price – variable cost), please refer to table 5- Table 1 -Financial Simulation Analysis(By Thousand, NTD)

Capital $50,000 Commerce w/o FactoryStockholder 6 people Outsourcing biotech factoryVerified item 　 2008 2009 2010

BEP revenue 　 12,298 14,758 18,447 BEP revenue/ expected revenue

　 11% 11% 11%

　　Revenue 　 110,500 132,600 165,750 Gross profit 67% 74,035 88,842 111,053 Expense ratio 18% 19,890 23,868 29,835 Operation profit ratio 49% 54,145 64,974 81,218 non-operating revenue & expense

-3% (3,315) (3,978) (4,973)

Ratio of the income before tax

46% 50,830 60,996 76,245

EPS before tax (By Dollars; NTD)

　 10.17 12.20 15.25

Capital turnover (By time)

　 2.21 2.65 3.32

Capital 　 50,000 50,000 50,000 Payroll 65% 12,929 15,514 19,393 Equipment 6% 1,193 1,432 1,790 Administration 4% 796 955 1,193 Marketing expense 25% 4,973 5,967 7,459 Total operating expense 100% 19,890 23,868 29,835

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- Table 2 -Item Fixed Variable Total

Payroll 65% 35% 100%Machinary 98% 2% 100%Equipment 98% 2% 100%Marketing 20% 80% 100%- Table 3 -　 2008 　 fixed variable totalPayroll 8,404 4,525 12,929 Equipment 1,170 24 1,193 Administration 780 16 796 Marketing expense 995 3,978 4,973 Total operating expense (fixed)

11,347 8,543 19,890

the ratio of revenue (variable)

10.3% 7.7% 18.0%

BEP revenue 　　 12,298 　 2009 　 fixed variable TotalPayroll 10,084 5,430 15,514 Equipment 1,403 29 1,432 Administration 936 19 955 Marketing expense 1,193 4,774 5,967 Total operating expense (fixed)

13,617 10,251 23,868

the ratio of revenue (variable)

10.3% 7.7% 18.0%

BEP revenue 　　 14,758 　 2010 　 fixed variable TotalPayroll 12,605 6,787 19,393 Equipment 1,754 36 1,790 Administration 1,170 24 1,193 Marketing expense 1,492 5,967 7,459 Total operating 17,021 12,814 29,835

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expense (fixed)the ratio of revenue (variable)

10.3% 7.7% 18.0%

BEP revenue 　　 18,447

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- Table 4 -Sales Forecast

Sales (By Thousand, NTD)

2008 2009 2010

Face Care $10,000 $12,000 $15,000 Body & Hands 10,000 12,000 15,000 Bath & Shower 30,000 36,000 45,000 fragrance 18,000 21,600 27,000 Aromatherapy 28,000 33,600 42,000 SPA 14,500 17,400 21,750 Total Sales $110,500 $132,600 $165,750 Expected Growth Rate 1 20% 25%

　　　　Direct Cost of Sales (By Thousand, NTD)

2008 2008 2010

Face Care $1,200 $1,440 $1,800 Body & Hands 1,200 1,440 1,800 Bath & Shower 3,600 4,320 5,400 fragrance 2,160 2,592 3,240 Aromatherapy 3,360 4,032 5,040 SPA 1,740 2,088 2,610 Subtotal Cost of Sales $13,260 $15,912 $19,890

Marketing Expense BudgetMarketing Expense Budget (By Thousand, NTD)

2008 2009 2010

Web site $1,860 $2,427 $3,625 Advertisements 1,998 2,580 2,685 Printed Material 1,085 960 1,000 Other expense 30 78 149 Total Sales and Marketing Expenses

$4,973 $5,967 $7,459

　　 5,967 7,459

Percent of Sales 4.50% 4.50% 4.50%Contribution Margin $23,500 $36,000 $51,200 Contribution Margin/Sales 21% 27% 31%

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Table 5 -

　　　　　　　　　　　

　　

　　　　

　　

　　　　

　　

　　　　

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Profit S = FC + (VC * S); S = SalesS = 11387 + (0.077 * S)

BEP

Total Expense

COGS 17100 + FC 11,347


　　　　

(Expense)　　　　　　　　　　　　　　　　　　　　　

(Revenue)

Break-even Analysis = where line intersects with 0The EPS points is$12,336,000 for 2008.

- Average cost: the cost per unit at that level of production, it's equal to total costs divided by production. $1600/ea

Channel Levels

The producer and the final customer are part of every channel. Considering to BODY Naturalism’s Product Category. We will use the number of intermediary levels to designate the length of a channel as below (Consumer Marketing Channels) 0-Level, 1-Level and 2-Level as below system.

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51,818

0

Loss


0-Level 1-Level 2-Level- InterNet Shop - Department Store - Distributor- Direct/ Post Sales - Hair/ SPA/ Beauty Salon - Boutique- Flag Store

1. 0-Level / “BODY NATURAISM” Flag Store; Renaissance

BODY Naturalism Concept Fashion Flag Store; Renaissance~Provide all series of Body Naturalism product line in Renaissance.Hold new product conference press, and event, to approach the target customers.And we provide coupon/ gift certificate for cooperate users for their employee, associates, clients or prospective business partners gift certificates.

Relax, Organic, no allergy, 100% made by nature material.Provide trustable products.

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Wholesaler

Consumer Consumer

Manufacturer

Retailer

Manufacturer

Consumer

Retailer

Manufacturer


(Concept flag store “Renaissance”)

ADD: 40756 No.12 Pei-I Rd, Taipei City.TEL: 02-28859988Open Hour: 11am ~ 10pm

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2. 1-Level / “BODY NATURAISM” Channel Partner- The 1st tier Department StoreBody Naturalism rents the booth in 1st tier department store such as sogo, mitsukoshi, Idde and so on, to deliver the fashion and brand new image to customers.Meanwhile, customers are easily to touch to feel these products by trial bottom in our free area.

3. 2-Level / “BODY NATURAISM” Reseller Partner- Reseller

Body Naturalism also cooperate with resellers, select appropriate partners to upgrade the product image on Body Naturalism.Also well trained the reseller and provide good margin, to attract them promoting Body Naturalism to the existent customer base, especially the high turnover contribution one.

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Direct Marketing and the Sales Force.

Under budget, we decided use people sales force and web interactive marketing as our major direct marketing tools:

1. Sales Force:

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Designing the Sales Force

Sales force Objectives

Sales Force Strategy

Sales Force Structure

Sales Force Size

Sales Force Compensation

Objective: sales representative to spend 50% of their time with current customer and 50% with prospects, 70% on skin care products and 30% on new products.

1. By geographic sales calling on thousands of customers in different territories.

2. A distributor sales force calling on and coaching distributors.

3. Inside sales force doing telemarketing and took orders via phone or fax and web.

1. By annual sales revenue. Target:100 Million1,000 sales( one sales need to achieve NTD100,000).

2. By workload approach, the average number of calls a sales rep can make per year is determined.

3. Estimates that 100,000 sales call in one year, suppose the average rep can make 100 calls a year, we need 1,000 full time sales rep.


Managing the sales force First step : Recruiting and selecting sales repSecond step: Training sales repThird step: Supervising sales repForth step: Motivating sales rep Sixth step: Evaluating sales rep

2. Web interactive marketing – Designing an attractive website, detail product information. Customer

could buy directly from internet. Also combined telemarketing and fax. For example like bellow:

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Straight-salary plans (combined salary and commission).


Customer-adoption process.

We decided use heavy-user target marketing. Through recommend system adopters of new products have been observed to move through five stages: 1. Awareness- they need organic skin care product to make their life more healthy

and beauty.2. Interest- The customer is stimulated to seek information about the innovation.3. Evaluation-The consumer considers whether to try the innovation.4. Trial- The consumer tries the innovation to improve his or her estimate of its

value.5. Adoption-The consumer decides to make full and regular use of the innovation.

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no. 7 · web viewall are manufactured in the time-honored traditional way using fine natural and...

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