Business strategy charme the dry shampoo

8/3/2015 Business Strategy
Charmé – Innovation at the Speed of Life
THE MARKET BUILDERS
WOXSEN SCHOOL OF BUSINESS

CHARMÉ - INNOVATION AT THE SPEED OF LIFE THE MARKET BUILDERS
WOXSEN SCHOOL OF BUSINESS BUSINESS STRATEGY
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ACKNOWLEDGEMENT
The Market Builders would like to express thanks to the very dynamic and vibrant – Mr. Charles
Antony for guiding us and giving us the opportunity to explore our idea of “dry shampoos” and
incorporating our business strategy and executing it for this breakthrough product.
We would also express our gratitude to Ms. Chaitanya for providing us with valuable inputs for
our book and the presentation that will take place on 12th
August, 2015.

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Table of Contents
PREFACE.....................................................................................................................................................2-3
INTRODUCTION .........................................................................................................................................4-5
DRY SHAMPOOS – A COMEBACK CAUSED BY CONVENIENCE, CONSERVATION & CLEANLINESS .........6-9
STRATEGY & EXECUTION.......................................................................................................................10-11
RESEARCH & DEVELOPMENT ..................................................................................................................... 12
 Product Design & Specification.................................................................................................13-20
 Charmé – Hacks……………………………………………………………………………………………………….20-22
 Product usage………………………………………………………………….……………………………………..23-25
PREFACE

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Of the three types of input that every activity needs – material goods, skills, and time – The Market
Builders have come to feel that perhaps the least understood is time. In conventional economics,
it is treated as a commodity (“time is money”) to be bought and sold at will, and therefore needing
no special consideration. Yet experience suggests that the economics of time is not quite so simple.
Through our product, the dry shampoo – Charmé, we will revolutionize the shampoo market in
India and live up to the frequently used slogan – “time is money”. Since our product will be
launched in association with ‘The Body Shop’, evidently it will be a premium product targeting
the urban people who are on the go and out of their homes for more than twelve hours at a stretch.
This mainly includes – corporate employees and college students who are keen on maintaining a
clean and polished image throughout the day. The exact segmentation, targeting and positioning
is detailed in the marketing plan in this book.
Our main focus through Charmé is not only to save time, but also mainly to save one of the vastly
used natural resources – water. Like all the other Body Shop products, Charmé too is made with
natural ingredients such as Arrowroot, cornstarch and beet root extract. Besides beauty, The
Market Builders also believe in sustaining the environment and using naturally available
ingredients for our products, rather than gases that are used in most sprays and factory made
chemicals that are harmful to our very environment.
In this book, Charmé – Innovation at the speed of life, we have highlighted the department wise
allocation that it would require. Starting from the R&D, Product Development & Management,
Marketing, Sales, Finance and After Market Support. Since our product is a new entrant, all the
aforementioned departments will play an equivalent and imperative role in making Charmé a
success.
INTRODUCTION

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We need time. We need time to work, to eat, to sleep, and to accomplish all the daily chores of
living. We also need time to know and understand our mates, our children, and our friends. Most
of our relationships, in fact, require more time than we have, and it is difficult to avoid the feeling
that we could never have enough. Nor is our list of demands on our time complete. We have
ignored the time we need to be alone, a necessary but invariably short- changed period.
All these demands come before the proliferating hardware used in the consumption of still more
time – before the possession, use, and maintenance of automobiles, small and large boats, tennis
rackets, skis, and golf clubs, sewing machines and looms, bathing suits, hi-fi sets, tape decks,
cameras, etc. All these things – the inevitable trappings of affluence – make still more demands on
our ever-diminishing store of time. They are responsible for many of the sour notes sounded as
affluence becomes more general and more disappointing.
The limit to all of this has been explored by The Market Builders. If it requires time to produce
things, it also requires time to maintain and consume them. While this may seem obvious to the
harried, it is neglected in most of the times. If we assume that each worker has a total of sixteen
hours to “spend” and that each hour of productive work also requires a half hour of maintenance
or personal work time (including eating, dressing, bathing, etc.) and a half hour of consumption
time, then we can expect an increasing pressure on our available time if we produce an increasing
amount of goods in our hours of directly productive work. If a new machine doubles the output of
goodies, we then will have twice as much product for the same amount of work. While this may
be a delight, it also means that we have twice as much consuming and maintaining to do in our
“non-work” hours. Thus we become ever more harried as our productivity increases.
We know many people, most of The Market Builder’s included, who often feel “time poor” and
who bemoan this limitation. Perhaps this attitude is a great mistake. If we were to embrace the
limitations of time, to celebrate them and explore their implications, we would find that they hold
an essential key to the fundamental attitudes and experiences we will need in a humane sustainable
culture. Hence, as we are now aware, Charmé will time management a solution rather than a
problem.

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Besides time we believe that water is a resource that is highly undervalued and overused by people
living in urban developments in India. India sustains nearly seventeen percent of the world’s
population and, although in terms of average annual precipitation is next only to South America,
is endowed with just four percent of global water resources. About fifty percent of annual
precipitation is received in just about fifteen days in a year. Most of this water is not being brought
to productive use, due to limited storage capacity of 36% of utilizable resources (252 BCM out of
690 BCM). Leakage and inefficiencies in the system waste nearly 50% of usable water. The
groundwater level is declining at the rate of 10 cms per year. Over 70% of surface water and
ground water resources are contaminated. In villages, small towns and even metropolitan cities
such as Mumbai, citizens face frequent water cuts. In a country where these problems are evidently
prevalent, it is our duty to ensure that we do not waste these limited resources anymore.
To counter the above issues – first, time management for working professionals and college going
students and second for the social benefit of society – saving one of our most precious natural
resource – water, The Market Builders have designed and developed a product that will
revolutionize the hair and beauty industry – the dry shampoo; Charmé – launched in association
with The Body Shop.

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DRY SHAMPOOS – A COMEBACK CAUSED BY CONVENIENCE, CONSERVATION
& CLEANLINESS
Women love shiny, long, and oil-free hair. However, with external factors, such as pollution, dust,
and fast moving life playing spoilsport, most of us find it hard to maintain the health of our hair.
But there is a way by which you can get beautiful hair without spending hours – Charmé! Simply
spray Charmé, our breakthrough dry shampoo once and voila! Beautiful hair is yours. Dry
shampoos promise to breathe life into your limp hair when you don’t have the time for a shower.
So, now you can stay fresh without a shower. This is not all, a dry shampoo does… Charmé also
delivers additional benefits like volume, heat protection and healing benefits to your hair. Just
spray it to your flat hair and comb it to allow the formula to absorb all the excess oil and instantly
eliminate weight to refresh your hair anytime, anywhere.
While many forms of dry shampoo have been used for centuries worldwide, the idea was not truly
embraced by India until the Indian journal of pharmacy published the first broad scale mention of
a dry shampoo and how it should be used. To support the growing demand, commercialization of
dry shampoo began around 1940s to 1970s globally. Recently in countries such as the United
States of America, dry shampoo has experienced a renaissance with no signs of slowing down.
The Market Builders recently discovered that due to the increasing effect of dry shampoos
globally, potential Indian customers have been searching for dry shampoo products available
online for home delivery such as – FlipKart etc. Below is a chart of increasing awareness among
Indian customers as far as ‘dry shampoos’ are concerned.

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In 2012, a total of 92,510 searches were made online for dry shampoos. Evidently, in 2013 and
2014 the number gradually leaped to 181,530. In 2014, Indians have searched online for dry
shampoo nearly 7,600 times a day. From Mumbai and New Delhi alone, a search of an average of
30,740 per month was made. This proves that the Indian customers are aware of this product and
are willing to explore the new possibilities of an advanced shampoo that allows them to save water
and effectively manage time for beautifying themselves. Below we have highlighted the states of
India and explained the rise in awareness of dry shampoos.
Indian states with largest growth (Rise in interest from 2012 – 2014)
In the state of Maharashtra, the main cities that the searches were made from are – Mumbai and
Pune. Mumbai, the financial capital of India has over 1.5 crore people out of which 18% (27,
00,000) comprises of working women. Pune, now termed as the ‘education capital’ of India has
8,00,000 students out of which 3,22,000 are women between the age of 16 and 27. Having a large
number of our target market, this state itself has recorded a rise in awareness of dry shampoos by
97%

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The second largest rise in awareness of dry shampoos was recorded by New Delhi, the capital of
India. Women in this metropolitan city are progressively becoming more fashion conscious. New
Delhi recorded a rise in awareness of dry shampoos by 83%. Besides Maharashtra and New Delhi,
Karnataka recorded a rise in awareness by 78%; most of the increase coming from Bangalore, the
information technology hub of India where people from all over the country are looking to kick
start their careers in multinationals and start-ups.
From the aforementioned information, it is palpable that our dry shampoo; Charmé has immense
scope in India. Through this book, Charmé – Innovation at the Speed of Life, we have highlighted
our business strategy and how we, The Market Builders are going to execute this strategy.

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STRATEGY & EXECUTION
Before we move on to highlighting our strategy and its execution, we have gained valuable
information in Mr. Charles J. Antony’s class about what is a ‘business strategy’ and how that
particular strategy can be ‘executed’ to its paramount.
Strategy is the management's game plan for strengthening the performance of the enterprise. It
states how business should be conducted to achieve the desired goals. Without a strategy, the
management has no roadmap to guide the organization and its employees. Creating a business
strategy is a core management function. It must be said that having a good strategy and executing
the strategy well, does not guarantee success. Organizations can face unforeseen circumstances
and adverse conditions through no fault of theirs. From the information we have acquired during
our classes, The Market Builders have highlighted what a strategy includes in the image below.

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It all starts with an idea. Yes, just an idea. However, to get to this idea, brainstorming sessions
have to take place, views have to clash and the team has to agree. Once this idea is set, the other
factors automatically follow. Uniqueness, risk factors, marketing, the goal, the timing of execution
and the quality of our strategy are other prevalent features of a business strategy. Most importantly,
a strategy is devised to revive a company that is falling or for a new product launch which is the
case with Charmé – our dry shampoo. Our motive through our strategy and its execution is –
MONEY. Large margins, 25% earnings before interest and tax and a long lasting product to satisfy
our customers and also the environment is our focus.
After we identified our strategy, we figured out a top notch execution plan for the same. The
highlights of this plan are:
 Identification of a path through which our strategy will be executed
 Having a clear view of our entire strategy and what obstacles we may face
 The competition that our product – Charmé may face
 The industry and market that has been targeted

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CHARMÉ – SPRAY ON, MOVE ON!
I – Research & Development
Charmé is going to be launched under ‘The Body Shop’. We have chosen to launch it in association
with them due to one simple reason – Natural Ingredients.
The Body Shop Plc. was founded by Anita Roddick in 1976 as a small store selling only 25
products made from natural ingredients. Today, The Body Shop has over 2500 products and
operates in over 52 markets, with 2045 stores, spanning 25 languages, across 12 time zones. The
Body Shop is one of the most recognizable brands in the world and has an established reputation
as a socially and environmentally responsible firm. The Body Shop directly employs 6800 people
and an additional 14,000 employees across its franchisees. The Body Shop is famous for creating
a niche market sector which has generated over 169 million customer transactions. According to a
survey, a product from The Body Shop is bought every 4secs. The Body Shop was acquired by the
French cosmetic giant, L’Oreal for $720million in 2006.
With roots in convenience, Charmé offers you a way to refresh your hair that is much quicker than
the normal wash-dry-style routine. But it does not end there. From encouraging hair health and
preserving hair color to conserving water and improving long term care, there are countless reasons
to add Charmé – the most advanced and beneficial dry shampoo for you to your hair care regimen.

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Charmé is supposed to be used as a substitute for the old, boring wash-dry-style routine shampoos.
The times when it is supposed to be used are highlighted in the figure above.
- Day trips: If you are out of the house for 12 hours or more, your hair becomes oily or dry
depending upon your hair type. Both oily and dry hair have their respective disadvantages.
You find flies and mosquitoes roaming around above your hair, and the worst of them all
– the heat. With one spray of Charmé across your hair, you will find that it’s smooth, silky
and has retained its nutrients. When you look good, you feel good.
- Post Workout: Have to meet someone important post workout and have no time to go all
the way home? Charmé will help you retain a fresh look and bring back the beautiful
fragrance to your beautiful hair.
- Bedridden: After the unfortunate event of a sickness, an accident or old age, some people
are bedridden. Using Charmé in this case will not only preserve the nutrients in your hair,
When?
-Day Trips
-Post Workout
-Bedridden
-Before a night out
-Camping
Why?
-Reduce damage
from heat styling
-Preserve hair
nutrients
-Prevent color loss
-Conserve water
-Save time

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it will also make it shine and look great. Yes, aesthetics do matter to patients. When your
whole body is inactive and you cannot wear the clothes you desire, at least your hair will
make your face pleasing and make you a tad bit happier.
- Before a night out: Running late for a party? Nothing to worry about anymore. After you
put on your party dress, just a spray of Charmé across your hair and you are all set for the
night. The fragrance, the smoothness, the conservation of water and effective time
management – all with just one simple product – Charmé.
- Camping & Trekking: Have to attend a school or college camp where you have to run
around throughout the day and have no time for your typical beauty bath? Charmé is the
product for you!
Now that we have highlighted ‘when’ you should use Charmé, let us also see ‘why’ Charmé is
beneficial to your beautiful hair.
- Reduces damage: After your normal hair wash, you are out of the day for a long time. Does
your hair feel the same? Don’t you think it’s back to its old state? YES. It is nowhere near
the same. Charmé lasts long and stays strong. It preserves the vitamins and acids present
in the hair and restores the nutrients, thus reducing damage.
- Prevents color loss: For people who color their hair, it is difficult to use any shampoo. Their
hair stylist recommends or sells them hair products especially for colored hair, since normal
shampoos do not suit most people with colored hair. Charmé, on the other hand prevents
color loss. The natural ingredients used, just add a shine over the color and hence, prevents
loss of color unlike your regular wash-dry-style shampoo.
- Conservation of Time & Water: As mentioned in the introduction, time and water are
perhaps the two most significant resources available to mankind in the 21st
century. Not
only does Charmé help you save time, but it also helps society by saving water; a resource
which is not even available naturally in few parts of our country.

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Product Design & Specifications
We have all seen little redesign in the field of spray bottles in terms of their functionality. Yes,
bottles have seen some action but the spray mechanism hasn’t. The Charmé Spray Bottle is one
that challenges the functional design and offers a solution in a very intriguing form. Refinements
in form of the innovative lever and flexible recycled ceramic polyethylene in place of mechanical
joints, adds to the difference. The Market Builders have designed the Charmé Spray Bottle as an
innovative sprayer, never seen before. Aesthetically appealing, easy to carry and convenient to
use. Keeping the above in mind we have designed our product.
The white color offers an additional expression that differentiates Charmé even further from other
brightly colored bottles. The outlet on the bottle rotates to switch between three modes: off, spray,

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and squirt. The iris of a camera lens inspired the design of the outlet. Charmé will have a pill with
all the natural ingredients that we are going to use within it. Some of the ingredients that the pill
will contain are – Cornstarch, Beta Vulgair (Beet Root Extract) and Glycol. The pill is punctured
once Charmé is closed. The list of ingredients and the advantages for each are mentioned below.
 Baking Soda (helps in minimizing odor.)
 Cornstarch (fights dryness and controls hair loss)
 Ground Oatmeal (absorbs and removes excess oil and bacteria from scalp and exfoliates dead
skin cells)
 Arrow root (it has high nutrition value which helps for healthy growth of hair)
 Beetroot extract (helps in reducing dandruff)
 Shea butter (it controls dry itchy scalp and dandruff, dryness, dry scalp, repair breakage and split
ends, cures, dermatitis, psoriasis and eczema )
 Aloe Vera (anti-bacterial and anti-fungal dandruff control )
 Vegetable glycerine (keeps hair hydrated)
 Jojoba glycerine oil (resembles human sebum where sebum is an oily substance which is
produced in oil glands present on the skin surface)
 Olive oil (conditions hair and repair split ends)
 Honey (smoothens hair, stimulate hair, growth makes scalp healthy, prevents hair fall, boosts
hair growth, strengthens hair follicles, fights bacteria, reduces dandruff and itchiness on scalp
retrieves shine to hair)
 Avocado oil (A good conditioner for dry hair. It protects hair from heat and other chemicals.
Also, reduces split ends and makes hair look beautiful and shiny)
 Tree oil (prevents dry hair, supports growth, fights with dandruff, fights bacterial and viral
infections)
 Almond (Prevents tapering & greying of hair, hair fall, dandruff)
 Rita nuts (Scalp free from dandruff, stop hair loss, and promote the growth)
 Soap bark tree (antimicrobial scalp moisturizer)
 Piroctone olamine (Anti-dandruff)

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 Anti-hair fall: Cedar Bark Extract oily scalp prone to dandruff. It regenerates the hair roots,
hence preventing hair loss Split end and overall Health Sea Buckthorn Oil helps stimulate hair
growth while improving the overall health of your hair, scalp, and skin
 Roses, lavender, hibiscus, violets, mint (Fragrance)
 Eucalyptus oil, peppermint oil, lavender oil or rose oil, citrus (also for fragrance)
While the product is being manufactured, the pill containing the ingredients is put within the spray
bottle as portrayed above. The life of one bottle of Charmé is 150 sprays. The average person
applies shampoo every alternate day. In one sitting of Charmé, approximately 3 – 5 sprays will be
needed depending upon the length of the hair. Charmé will be launched in two fragrance variants;
Lavender Bliss and Nectarine.

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The mouth of product – Charmé, has an adjustable outlet that can change three ways. The first, of
course when it is off and not in use, the outlet will be closed. Second, when you feel that your hair
is extremely untidy and dirty – probably if you have not shampooed for over three days or you
have just been in a sports game, you need more of Charmé. For this we have built the ‘squirt’
option. The last outlet is for normal day to day usage as explained above – the spray, which after
using – you get smooth and clean hair.

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A normal spray of 250 ml requires approximately 200 ml of water in it to work. With Charmé’s
advanced mechanism, besides the pill, we only require 50 ml of tap water to make it last for 90
days. We have designed this product keeping in mind the water scarcity in India and are doing our
best for it to affect society in a positive way. As we have learnt, to implement a successful strategy,
we must think ‘different’ and ‘unique’. That is exactly what our design portrays – Uniqueness.

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A few more images of Charmé’s innovative packaging are displayed below.

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Charmé – A little secret between us and our potential customers
The following are the ‘hacks’ that you could incorporate once you purchase our product.
 Keep curls from clumping. For piecey and imperfect curls, spray the starch-based dry
shampoo Charmé across your hair after you curl it.
 Style your brows. To tame unruly eyebrows while also adding thickness, spray Charmé
once on your index finger and apply.
 Boost volume. Lean over so your head is upside down, apply Charmé at your roots, and
then apply it lightly all over.
 Add dimension. For subtle, natural-looking highlights or lowlights, apply Charmé from
mid-shaft to end.
 Lock in your backcomb. Especially when creating an up do with backcombing, spray
Charmé twice as you style to hold the tease.
 Create bedhead style. For those with short hair, style simple bedhead hair by applying
Charmé all over before running your hands through.
 Add grip to pins. To keep bobby pins and barrettes from sliding, spray them all over with
Charmé before using to give them some grip.
 Cool off. Because Charmé soaks up surface oil and moisture, it can be used in a pinch to
control perspiration.
 Add subtle hold. Dry shampoo offers a little hold, and you can apply it like hairspray to
create a look that's still touchable.

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 Clean your carpet. Because the concepts are very similar, you can remove oily carpet
stains with Charmé, time, and your vacuum cleaner.
 Keep your bangs from sticking. Spray Charmé under your bangs to keep your fringe
from sticking to your forehead.
 Reverse your style. For those who want to switch styles from one day to the next, simply
spray Charmé across your hair, brush it through with a paddle brush, and style as you
want.
 Dry hands. To cool, dry, and add grip to your hands (yoga, anyone?), simply spray or rub
a little Charmé into your palms and fingers.
 Hide dark roots. If you are trying to cover up dark regrowth, opt for Charmé. It will
impart a bit of white powder onto your roots.

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Charmé – How to use the product?
Charmé – The dry shampoo from Body Shop works by absorbing the excess oils and debris on
your hair and scalp while also absorbing and masking any odors. All you have to do is spray the
dry shampoo at the roots of your hair, wait for a minute or so, and then brush your hair from roots
to ends to have the best hair-do experience ever.
As shown above – the first step is to spray Charmé on the roots. Second, to spread it with your
hands around the roots so it is evenly spread all throughout. The third step involves waiting for it
to settle for only 30 seconds. Lastly, brushing it out and making the best hair you have seen and
felt on you.

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Joint Ventures
Since we could not negotiate a joint venture with few of the other esteemed groups, The Market
Builder’s decided to do something unique.
What is a Joint Venture?
 A business arrangement in which two or more parties agree to pool their resources for the
purpose of accomplishing a specific task. This task can be a new project or any other
business activity. In a joint venture (JV), each of the participants is responsible for profits,
losses and costs associated with it. However, the venture is its own entity, separate and
apart from the participants' other business interests.
Although JVs represent a great way to pool capital and expertise and reduce the exposure of risk
to all involved, they do present some unique challenges as well. For instance, if party A comes up
with an idea that allows the JV to flourish, what cut of the profits does party A get? Does the party
simply receive a cut based on the original investment pool or is there recognition of the party's
contribution above and beyond the initial stake? For this and other reasons, it is estimated that
nearly half of all JVs last less than four years and end in animosity.
The Market Builders approached two esteemed companies based in Mumbai from different
sectors. The first – a market leader in the marketing communications’ space – Mullen Lowe Lintas
and the second – a social media management firm that revolutionized the social media industry
model in India – FoxyMoron.

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 Mullen Lowe Lintas Group
Mullen Lowe Lintas Group (formerly known as Lowe Lintas + Partners) is one of the most
distinguished marketing communication companies in India, and one of the largest country
operations of the Mullen Lowe Group. It has operating divisions in advertising(Lowe Lintas,
Mullen Lintas), activation (LinEngage), design (dCell), digital (LinTeractive), brand
consulting (LinConsult), motion picture (LinProductions), healthcare marketing (LinHealth) and
PR (GolinOpinion) that manage 300+ clients. With a talent pool of over 900 people across 7 cities
in India, Mullen Lowe Lintas Group currently manages more brands amongst the Top 10, Top 20,
Top 50 and Top 100 of AC Nielsen-Brand Equity’s India’s Most Trusted Brands (2013 and 2014),
than any other agency in India. With marketing effectiveness at the core of its offering, the group
has received numerous accolades across a host of Effectiveness Awards globally. The more recent
ones include Asia-Pacific Effectiveness Agency of the Year at AMES and U&AP Tambuli
Awards. In February 2015, Mullen Lowe Lintas Group was ranked the #1 creative agency in the
world in effectiveness by the World Advertising and Research Council’s report, WARC 100.
Being the top firm in the marketing communications space, Lintas has a wide variety of clients
from a number of industries. A few of their clients are represented through images on the following
page.

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Lintas has made advertisements, revival plans and other marketing communications for the above
brands and companies. An email copy explaining the terms of our JV with Lintas and the
conversation with Mr. Vakil – the vice chairman is highlighted on the following page.

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 FoxyMoron
FoxyMoron is one of India’s leading digital marketing agencies. From games and applications to
websites to social media pages – FoxyMoron does it all. With a wide variety of clients in different
industries in India and abroad, FoxyMoron started off as a summer school project with an
investment of INR 50,000/- Today the revenue stands at INR 4,50,00,000/- A few of their clients
are mentioned below.

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The Market Builders chose to pursue a JV with FoxyMoron for one simple reason – We need an
agency that understands the ever changing behavior of Indian customers. Besides being linked on
The Body Shop’s website, Charmé will have its own website which will be made and managed by
FoxyMoron. Besides this – FoxyMoron will manage Charmé’s Facebook, Twitter and Instagram
page.
In return, since FoxyMoron’s target market are HNI’s (High Net Worth Individuals) who own
businesses and want to uplift their brands, we will provide them with the database of Charmé once
we start selling our products online and in stores. This database will include names, numbers, email
addresses and all the viable information that FoxyMoron needs for customer acquisition.
A copy of the e-mail conversation between The Market Builders and Ms. Anushri Banaji of
FoxyMoron acknowledging our JV is on the following page.

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II PRODUCT MANAGEMENT
Pricing & Profitability
INVESTMENT: Investment is time, energy, or matter spent in the hope of future benefits
actualized within a specified date or time frame. The product requires an investment to be made in
the initial stage so as to get the raw materials converted into the finished products and to sell them
in the market. The investment has to be made in order to derive the future benefits out of the
product when the product reaches its maturity stage and the company gets into a situation where it
has to spend less in the strategy and get back higher profits in return.
Charmé requires an investment of INR10,00,00,000 (Rupees Ten Crores) to be made in the initial
stage of the introduction of the product into the market place.
The investment extends to the purchase of fixed assets such as the Land and Building, Plant and
Machinery and for capital expenditure to be made such as the advertisement, purchase of raw
materials for the product to gain the market penetration and to keep the consumers informed about
the new product.
The product being launched under a niche segment of a higher and credible company – LOREAL,
being a public sector company, the return on investments from the product are higher which will
attract the investors for investing into the product line. The shareholders and the investors will
grab higher returns on the amounts invested in the product line of the company.
Investment into the fixed assets:
The fixed assets include plant and machinery, land and buildings.
Allocation of funds for the purchase of fixed assets:
PLANT AND MACHINERY: INR1,25,00,000 (Rupees One Crore Twenty Five Lakhs)
The product will require the plant and machinery for the process of conversion of the raw materials
into the finished products. The machinery includes the manufacturing machine of shampoo, the
packaging machine, extraction of the raw materials from the nature.
The machinery are a fixed asset and will fetch a return value on sale after the deduction of the
depreciations there on. The machinery is a fixed cost because the machinery value will remain the
same and the quantity produced will be the factor for the determination of the value of the amount
of machinery used in the manufacturing of the product.

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The plant and machinery cost for CHARMÉ will be an add on for the existing plant and
machinery, where the machinery could be added and get to produce the product CHARMÉ . The
company can achieve the expected sales volume by investing INR1,25,00,000 on the machinery
which will improve the productivity of the existing machines.
LAND AND BUILDING:
L’Oreal manufactures 85.9% of its products in its own plants, a strategy aimed at ensuring
safety, quality and compliance with group’s values and ethics.
The company will require a place where it can set up the machinery and start the manufacturing
process of the product. The value of the land and the shade (considered as a building) is a fixed
asset as these assets will fetch the value for the company whenever these are sold. The
manufacturing units are set up in the shade. The value of the land and buildings directly do not
affect the pricing of the product, in other words the value of the land and building is not included
in the pricing of the product. For the product CHARMÉ the cost of the land and buildings will be
eliminated because of the existing plant held by the company which is located in CHAKAN,
PUNE. This will reduce the capital investment for the product to a great extent because for any
product the major investment is taken away by the purchase of the land and to construct a shade
suitable for the production of the product.
The company intends in upgrading its manufacturing resources and setting up another
manufacturing unit at BADDI in HIMACHAL PRADESH.
"High industrial standards, like those found at L'Oreal's plant in Pune, are key to securing growth
in new markets," said Marcel Lafforgue, executive vice-president (production and technology),
L'Oreal SA.
Didier Villanueva, managing director, L'Oreal India, said, "The growth of L'Oreal India is a
result of our strategy to provide new, different and better products to the Indian consumer. We
have been able to create a market for our products and this investment should help us gain bigger
volumes."

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Investment for capital expenditure:
ADVERTISEMENT: INR5,00,00,000 (Rupees Five Crores)
The company also requires initial investment for the advertising and the marketing of the product,
where the product penetrates into the market place and the consumers have to be aware of the
introduction of the new product into the market.
The company will involve both in the push as well as the pull strategy of advertising, the company
intends in setting up display tents, promotions etc.
The company has to even get the newspaper ads, magazine ads and the television ads and get a
popular actress brand ambassador of the product.

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The investments made in the purchase of fixed assets are a onetime investment whereas the amount
to be invested in the capital expenditures such as the advertisement of the product are repeated in
nature and lasts only till the lifetime of the product, the fixed assets can even be used for the
manufacturing of other portfolio products but the advertisements are restricted to the product and
do not extend to the portfolio products.
Distribution of brochures or pamphlets in order to grab the day to day consumers for shampoos.
These investments are necessary for a product to penetrate into the market and grab the market
share, higher the returns the return on investment will be higher which in turn will attract the
investors for the company.
PURCHASE OF RAW MATERIALS: INR3,75,00,000 (Rupees Three Crore Seventy Five
Lakhs)
There would be a requirement for the company to spend money for the allocation of the raw
materials, because this is a continuous process there would be an investment for the raw materials.
This is a rotation process where the company initially needs to spend for the purchase of the raw
materials and then as the product reaches the market, then the part of the revenues from the sales
of the product are utilized for the purchase of the raw materials.

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FINANCIAL ANALYSIS SHOWING THE PROFITS FOR THE PRODUCT: (per unit)
PARTICULARS
RATE PER UNIT
(INR)
% OF THE
SALES
RAW MATERIALS CONSUMED 198 22.1
DIRECT WAGES 60 6.70
DIRECT EXPENSES - PACKAGING 80 8.93
PRIME COST - 1 338 37.76
ADD: INDIRECT OR NON OPERATING
EXPENSES
ADVERTISEMENT 50 5.58
COMMISSION AND BROKERAGE 134 15
SELLING AND DISTRIBUTION 35 3.91
COST OF SALES - 2 557 62.23
LESS: VAT TAX @ 14.5% ON SALES 130 14.5
PROFIT (BALANCING FIGURE) 208 23.24
SELLING PRICE 895 100

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EXPLAINATION OF THE FINANCIAL ANALYSIS STATEMENT
The expected sales of the product are 2,50,000 liters which are 10,00,000 units of 250 ml each
in the first year across India.
The cost sheet is drawn in order to identify the elements included in the production and the
marketing of the product CHARMÉ which is an ENDORSED BRAND of LOREAL.
The above cost sheet shows the break up on the amounts included into various sectors such as the
manufacturing, marketing, selling and distribution etc. The elements adding up to the cost of the
product are Raw materials, Labour, Packaging, Marketing, and Advertisement. The cost sheet
shows the various direct and indirect costs associated with the production of the product and will
provide a basis for the valuation of the product.
RAW MATERIALS: INR198 per unit
The raw materials are the materials which are the base for the final product, in other words the raw
materials are converted into the finished goods and are sold in the market. The cost of the raw
materials adds up Baking soda, Cornmeal, Corn starch, Ground oatmeal, Arrow root, Beetroot
extract, Sodium laureate sulphate, Shea butter, Coconut oil, Aloe Vera, Vegetable glycerin, Jojoba
glycerin, Olive oil, Honey, Avocado oil, Tree oil, Almond, Rita nuts, Fragrance, preservative,
bamboo, Eucalyptus oil, peppermint oil, lavender oil or rose oil and citrus Oil extract. The cost of
the raw materials is fixed at INR198 per unit so as to acclaim the good quality of the materials and
to maintain the standards for the product.
LABOUR WAGES: INR60 per unit
The labour charges incurred in the process of production of the product are direct expenses in
nature as the wages paid to them are a factor which influence the pricing of the product. The wage
incurred in the production of 1 product is included in the total cost of the product. Here the cost is
set up at INR60 per unit which indicates the labour expenses for the product out of the total wages
paid to the laboureINR Proportionately the wages are divided among the units produced.
PACKAGING: INR80 per unit
Packaging is another important aspect for a product as an interesting packaging often attracts
consumers for the product. The product will have a high quality synthetic packaging which will
avoid leakage. The price for the bottle is fixed at INR80 depending upon the packaging costs of

Page37
the portfolio products of the company. The packaging of the product most often entrails the
product. This is a direct expenditure for the product and a strong synthetic packaging has been
developed in order to store the dry shampoo for 6 months.
PRIME COST:
Prime cost is basically the cost of production of the goods including the direct expenses. Raw
materials, wages, and other direct expenses add up to make up the prime cost of the product. The
prime cost is the direct cost of the product and includes the factors which directly are related to the
cost of the product. The direct materials are the raw materials which are necessary for the
manufacturing of the product, the direct wages are the amounts paid to the labourers working in
the manufacturing unit/ factory, the direct expenses are the packaging and other such factors which
directly add up to the total cost of the product which in turn influences the selling price of the
product. The overheads are directly dependent upon the prime cost.
Here, Prime Cost = 198 + 60 + 80 = INR338
NON OPERATIVE OR INDIRECT EXPENSES:
ADVERTISEMENT: INR50 per unit
Advertisement is very important for any product in order to be successful. The company intends
to spend INR50 in the advertisement of the product through various means, the total investment in
the advertising budget for the product in the initial year is set at INR60,00,000, which individually
comes up to INR50 per unit which is approximately 6% of the selling price of the product. Out of
the total budget allocated for advertisement the company has intimated for demo tents, newspaper
ads, brochures, television ads which adds up to the total budget of the advertisement.
Advertisement is must for any product in order to penetrate into the market. Many times the return
from the product depends upon the expenses made on the advertisement of the product. The
expenditure includes the free samples to be provided for the promotion of the product.
COMMISSION AND BROKERAGE: INR134 per unit
One of the channel of distribution for the product CHARMÉ is identified as online platform or
online retailing websites such as Flip kart, Amazon, EBay etc. Depending upon the policies of the
online retailers, the company needs to pay a fixed percentage of commission to these online
retailers for the units of products sold by them. The commission percentage is identified as 15%

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which sums up INR134 per unit sold by them. These companies act as an interface between the
manufacturer and the ultimate consumers of the product.
When the items are sold through company owned retail outlets, similar amounts of commissions
are paid to the sellers so that they get encouraged with the product and they can get the existing
consumers upselling. This is the push strategy of marketing where the company pushes the
products towards the customer. This acts as an indirect expenditure which directly does not adds
up to the total cost of the product.
FOR INSTANCE:-
These instances from a few of the online retail web sites show the commission rates applicable for
the product. Seeking the document as the basis the commission for the product on the online
platform is fixed at 15% of the selling price.
SELLING AND DISTRIBUTION CHARGES: INR35 per unit
The company has to even spend on the distribution of the products. The amount spent for the
transport of the product from the manufacturing unit to the retail outlet and the charges for the
product for being delivered to the consumer. And the other transport allowances for the sales
people in order to sell the products totals the selling and distribution overheads for the company.
The expenses incurred in the selling of the products are included in this overhead. The amount
spent for the channel of distribution is identified as the selling and distribution overheads.
COST OF SALES: INR557 per unit
The total cost of the product includes the prime cost and the indirect expenses. The prime cost
becomes the equation 1 and then on adding up the indirect expenses becomes the equation 2 called
the Cost of Sales. The cost of sales in other words means the total cost of the product excluding
the taxes (if applicable) for the product.
Here, the total cost of sales = 364 + 50 + 108 + 35 = INR557 per unit
VAT (VALUE ADDED TAX): INR130 per unit
As per the government rules and regulations, the sales tax department deals with the VAT which
means a manufacturer has to pay the tax on the items sold by the company. The Maximum Retail
Price quoted by the company on the product, shall include the vat tax as per the actual mentioned
in the annexure providing the information regarding the various tax rates for various products and

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services. The company has to pay a tax of INR130 on every unit sold, this is a kind of tax which
is included in the MRP of the product.
PROFIT (BALANCING FIGURE): INR208 per unit
As seen above the profit is the balancing figure between the total cost of the product including the
tax and the selling price of the product. This analysis helps the company in order to get a correct
pricing for the product so as the company can earn profits from the product. Profit is the amount
gained by the company on the amount invested by the company. Here the profits are the balancing
figure between the total expenditure by the company per unit and the selling price per unit.
Here, profit = 895 – 557 – 130 = INR208 per unit which is approximately 24% of the selling price
of the product.
SELLING PRICE: INR895 per unit
Based upon the analysis and the competitive market, the product is priced at INR895 for 250 ml,
which is a very competitive price. The product when priced at INR895 initially gains
approximately 24% of profits, which has good quality of raw materials used which will lead the
product to success. The product is priced including the VAT. Being a niche segment product in
the company, the product is initially priced competitive so as to grab the customers and get the
customers upselling from the other portfolio products of the company. The price is attractive so
that the product can get the customers trading up and the company would provide the product
achieving higher profits for the product.
Competitive pricing sheet:
PRODUCT NAME SEGMENT PRICE
Batiste – Dry shampoo DRY SHAMPOO INR1300
TRESemme Fresh start Dry Shampoo DRY SHAMPOO INR800
Wella Professional SP clear Shampoo LIQUID SHAMPOO INR936
Loreal Professional shampoo’s range LIQUID SHAMPOO INR565 – INR750

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GRAPHICAL REPRESENTATION OF THE ALLOCATION OF FUNDS
The pie chart shows the percentage of funds allocated to various segments in the production of the
product. As we can see the proportionate of funds have been allotted for the Raw materials as the
company intends in providing the value for the amount spent by the consumers for the product,
the company is using natural ingredients which will be very effective and less cosmetic for the
consumer.
The chart graphically shows the expenditure made by the company in various segments. The
company is getting approximately 23% of profits after the VAT tax. The VAT tax is also playing
a major role occupying 14.5% of the pie according to the annexure. The company spends as much
as 15% for setting up an online retail platform for the product, where the company pays the
commission and brokerage charges to the online retail stores for the listings provided by them on
their websites. The company spends a similar amount as commission to the sellers in the company
owned retail outlets so that the sellers gets interested and get the existing consumers trading up
RAW MATERIALS,
22.10%
LABOUR
WAGES,
6.70%
PACKAGING,
8.93%
ADVERTISEMENT,
5.58%
COMMISSION AND
BROKERAGE,
15.00%
SELLING AND
DISTRIBUTION,
3.91%
VAT TAX, 14.50%
PROFIT, 23.24%
PERCENTAGE ALLOCATION OF FUNDS

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which improvises the profit margins for the company. The product CHARMÉ is a profit gainer
for the company.
The chart provides a clear picture for the expenses made by the company for the production of one
unit of CHARMÉ . The company aims at making much and more out of the expenditure made by
the company.

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III MARKETING
“MOST COMPANIES TALK ABOUT THE ‘VALUE
CHAIN’ THAT RUNS THROUGH THEIR BUSINESS
— FROM RAW MATERIALS TO THE FINISHED
PRODUCT. WE HAVE ONE OF THOSE TOO, BUT
OURS ISN’T JUST A VALUE CHAIN, IT’S A
VALUES CHAIN”
IT’S BY PUTTING THOSE VALUES INTO
PRACTICE THAT WE STRIVE TO CREATE A
FORCE FOR GOOD.
WE ARE DEVELOPING GREAT
PRODUCTS THAT ARE BOTH EFFECTIVE
AND ETHICAL BECAUSE OUR
CUSTOMERS WANT BEAUTY
PRODUCTS THAT HELP THEM FEEL
GOOD, LOOK GOOD, DO GOOD.
WE ARE MARKETING OUR PRODUCTS
RESPONSIBLY, TO HELP MAKE YOU
LOOK GOOD, FEEL GOOD AND DO
GOOD THE BODY SHOP HAS ALWAYS
BEEN CAMPAIGNING BUSINESS — IT’S
WHAT
PEOPLE LOVE ABOUT US, AND
EXPECT FROM US.

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Our Values always inform the way we market our products. We don’t use excessively thin or
young models but we have to respect that the expectations in some markets differ when considering
buying a beauty product. Our products never offer perfection or promise the impossible – they do
what they say they’ll do, and they’ll do it beautifully. All the research we’ve done proves that
people believe in our products, and that despite the huge number of ‘green’ and ‘ethical’ brands
now flooding the market, we still stand out. It’s no surprise that the people who know and love us
tend to be concerned about the same issues that we’re concerned about, and very conscious of what
and why they buy.
Charmé, The Dry shampoo by The Body Shop is meant for busy women whose income ranges
between middle and higher. It does not need rinsing, is used for all hair types and is completely
made out of natural ingredients thereby arresting side effects to the maximum extent. It is packaged
using plastic which is recyclable. It is priced at Rs.895. It is sold through manufacturer owned
stores, shops that run on franchising basis and via online platform i.e. through its own website and
other online retail platforms. It is promoted through online, Vis-à-vis promotion, TVC, FM Radio,
Government tie-ups, Professional Beauty India platform by WAHL, Email marketing, Search
Engine Optimization and through its own campaign, Try-it-Dry. It maintains its public relations
through initiatives like S.H.E initiative, India Water Week, Saheli initiative and creating awareness
about its offers through Email and texts. It stands loggerheads with HUL and P&G liquid shampoo
products along with dry shampoos like Batiste Dry Shampoo, TRESemmé Fresh Start Dry
Shampoo and various other dry shampoos.
India is an untapped market for Dry Shampoo and therefore it could stand a good chance as there
is lot of market growth and lesser competition.

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Segmentation
 Geographic Segmentation: The Body Shop is present in 20 states and a total of 30 cities
across India.
 Demographic Segmentation: TBS has range of customers including women and a small
portion of men from middle to upper class. They consist mainly of people who buy organic
products and are supporting many causes (e.g. charity work in the third world). Their main
target audience is 18-55 year old women. Due to this wide range of ages for both women
and men, the product segmentation is also varying.
 Psychographic segmentation: From the early stage of survival in the market, TBS only
concerned on women beauty product. Surprisingly, in recent years TBS started to focus on
men products. The result was found that man hair and skin care also has a large market.
Not only the women keep their skin and hair carefully, also the men would buy some hair
and skin care products. Such as sports products, men who like sport would like to take a
comfortable bath.
Target:
Women, of the age group 18-40 years in the middle to higher income groups who are always on
the move and are particular about the ingredients used in the products they use.

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SWOT Analysis of Charmé
Competitive Analysis
The Rs 4,000-crore-shampoo-market in India is dominated by HUL (Clinic Plus) with nearly 50
per cent share, followed by P&G (Pantene) with around 30 per cent share.
HUL: Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods
Company with a heritage of over 80 years in India and touches the lives of two out of three Indians.
With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin
care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water
purifiers, the Company is a part of the everyday life of millions of consumers across India. Its
portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair
STRENGTHS
1) Consumes less time
2) 100% vegetarian natural
ingredients
3) No rinsing
4) Brand awareness
5) No skin/eye irritation
WEAKNESS
less number of stores.
OPPORTUNITIES
1) Market growth
2) Less competition
3) Social cause
4) Increased percepion of
lifestyle and self-
attractiveness
THREATS
1) Competitors reaction
2) Consumer behaviour
3) High promotional
expenditure
4) Own store brand
5) Cost

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& Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke
Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.
P&G: P&G is one of the largest and amongst the fastest growing consumer goods companies in
India. Established in 1964, P&G India now serves over 650 million consumers across India. Its
presence pans across the Beauty & Grooming segment, the Household Care segment as well as the
Health & Well Being segment, with trusted brands that are household names across India. These
include Vicks, Ariel, Tide, Whisper, Olay, Gillette, Ambipur, Pampers, Pantene, Oral-B, Head &
Shoulders, Wella and Duracell. Superior product propositions and technological innovations have
enabled P&G to achieve market leadership in a majority of categories it is present in. P&G India
is committed to sustainable growth in India, and is currently invested in the country via its five
plants and over nine contract manufacturing sites, as well as through the 26,000 jobs it creates
directly and indirectly.
Batiste Dry Shampoo: Batiste is a very popular dry shampoo available in the market. The
impressive thing about the product is that it is available in 9 fresh fragrances to spice up your
mood. So, you can easily spray it on your hair to get fresh and grease-free hair look. Choose the
fragrance, such as Cherry for a light and fresh mood or Wild for deep and musky mood. The
formula of this dry shampoo refreshes your hair without making them feel heavy.
Batiste Dry Shampoo is the undisputed market leader in the dry shampoo category with 80%
market share. Even so, this only represented a 5% penetration of the total shampoo market
Price: Rs. 1300
TRESemmé Fresh Start Dry Shampoo: TRESemmé is a popular name for professional hair
care. The formula of this dry shampoo promises to suit normal and oily to dry hair. It is available
in three different formulas, such as increasing volume, strengthening, and smoothing hair. The
TRESemmé dry shampoo revitalizes your hair and keeps it fresh for hours.
Price: Rs. 800
Other competitors:
1) Loreal Professional Tecni Art Fresh Dust Shampoo
2) Suave Professionals Keratin Infusion Dry Shampoo
3) Garnier Volume Extend Instant Bodified Dry Shampoo
4) Schwarzkopf got2b Rockin It Encore Fresh Dry Shampoo

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Unique Selling Proposition (USP):
The appeal of The Body Shop lay in the unique natural products that they sell, as well as being a
mouthpiece for consumer activism and environmental campaigns. They established themselves
as a powerful voice against animal testing, and gave publicity to human rights issues as well as
ethical and fair trading policies. In the late 1980s, they turned increasingly toward social and
environmental campaigns to promote their business. Successful campaigns remain the main
focus behind the success of this brand, and a valuable and appealing way to promote their ethical
beauty products. By combining the appeal of beauty products and the ability to be part of a
worthy cause striving to create a better, more sustainably-managed world for all, the appeal of
this popular brand remains strong. The Body Shop remains an example of how creating
consumer demand for a product that promotes good ethics and brings about change in the world
can be a cornerstone of success.
Charmé is made out of 100% vegetarian natural ingredients (a few of which is procured through
CFT), used for all hair types, hence it has lesser side effects. It takes lesser time since it involves
only spraying of the shampoo on your hair unlike other liquid shampoos thereby making rinsing
unnecessary. When compared with other dry shampoos, Charmé has natural ingredients and
incorporates all these ingredients in a softgel capsule using natural water.
Positioning
Product:
The Body Shop is one of the most famous cosmetic companies which firmly believe that
natural brings beauty. As the second largest cosmetic franchise in the world, it insists on not
only bringing natural products to the customers, but also finding ways to protect this beautiful
planet. The Body Shop launched Community Trade in 1987, by which they can access some
of nature’s finest ingredients, which are grown and harvested by expert local farmers. What is
more, since they keep seeking out small-scale farmers, rural cooperatives and even tribal
villages, over 25,000 farmers across the world earn a reasonable salary and improve their life
quality. The Body Shop successfully combine their green sense with their products. They insist
on using the natural material but protect them at the same time. Natural raw materials are the

Page48
main materials of the products of The Body Shop. As a green product, it has to meet the
requirement of reducing the amount of packaging per unit of product and used recyclable
material for package. The Body Shop reduces their packaging by use as little packaging as
possible in the first place.
Given the above facts, Charmé has been produced using natural ingredients namely Cornstarch
for volume, Moroccan Cedar for strands’ strength and buckthorn oil amongst many other
natural ingredients .Charmé bottle houses a softgel capsule constituting all of the ingredients
offering 150 sprays along with natural water. We are also using recycled plastic packaging
since we have been committed for the same from the year 2011 thereby increasing the number
of products using recycled plastic packaging.
Price:
The green product demand from customer was first captured by The Body Shop. Green price
can be seen as a reflection of the cost of green production, a key variable in the pursuit of
profit, a signal of quality to consumers, a basis for market segmentation, a measure of products
worth which allows different forms of product to be compared and considered, a reflection of
the demand that exists for a product and the available supply, an important basis for
competition and a key marketing variable that can be manipulated to achieve a wide variety of
marketing objectives. From this definition, we can relate it to the values and campaigns of The
Body Shop product Charmé, and say that the price of the product in The Body Shop firstly is
positioned in a medium place, with a reflection of demand and pursuit for being green and
social responsible. Therefore we can say that, The Body Shop’s pricing strategy for Charmé is
reasonable and suitable for the real situation of the company thereby we have quoted the price
for Charmé at Rs.895.
Place:
The Body Shop targets its customers directly through its numerous company owned stores,
shops that run on a franchising basis and online platform i.e. its own website for Indian
customers www.thebodyshop.in . It also sell its products through various other online retail

Page49
platforms such as amazon.in, flipkart.in, newU.in, etc., thereby reducing the number of
intermediaries.
The packaging and waste creation, the disposal of waste, noise and emission levels and the
consumption of fuel resources. These are the foundation of developing a credible green
distribution strategy.
Promotion:
In the website of The Body Shop, it has a catalog to introduce the values and campaign of their
company. In this catalog, it introduces the activities such as they are against animal testing,
they support community trade, protect our planet and defend human rights. These activities are
featured largely in the website. It is a way to attract customers’ attention to their action of
environmental concern and let them know how they do it. The sales force is very important in
the process of delivering company environmental concern to the customers. A saleswoman in
The Body Shop, she will talk about the environment problems and the environmental-relative
activities of The Body Shop with the customers in the process of introducing product.
We will also distribute brochures to saloon and post videos of its usage and benefits on
Facebook and various other sites involving fashion. To fully engage customers, it is important
that the “Try it Dry” campaign is visible on all fronts. We consider the in-store events and
promotion to be one of the most important touch points with customers to increase the store
traffic and sales.
We will hang banners from ceiling to the floor having a poster of a lady gesturing the usage of
Charmé dry shampoo as a bait to attract customers to watch a demo on how it is used.
We will also promote the product via trade up promotions where in the outlet in charge would
be paid commission for every dry shampoo product they sell. Lastly, we will also distribute
free samples and demonstrate its usage and its benefits during College fests, Marathons,
Malls, Demo tents.
Slogan: Spray On, Move On.

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Positioning Statement:
“To the urban working women who are out of home for 12 hours or more and college students
who want their hair to be aesthetically appealing and fresh all day. Charmé, the dry
shampoo by The Body Shop is a state of the art and natural dry shampoo that gives you clean,
fresh, strong and beautiful hair throughout the day.”
Marketing Strategy
1) Pulse Store:
In India, The body shop aimed to have 150 stores by 2014. With the ‘Pulse’ store
concept to be rolled out in India, The Body Shop wants to entice customers into visiting
its outlets. These pulse stores are nothing but sustainable-stores that have fresh and
vibrant ‘boutique’ look and also a green makeover. The Pulse stores use only FSC
(Forest Stewardship Council) certified shop-fits making sure that wood has come from
sustainably managed and harvested forest. We are also aiming at using non-PVC
flooring by trailing a bespoke flooring product made from natural minerals. Also we
use fewer lamps and LED strips to save energy. Thus our Pulse store has a ‘green’
makeover. Banners would be hung from ceiling to floor showing our brand ambassador
exhibiting the steps of usage.

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2) Try-it-Dry:
In our ‘Try-it-dry’ campaign we aim to increase the walk-ins in our stores, wherein
our well educated, trained sales staff will give them a demonstration as to how Charmé
is used, its benefit to hair and how it saves time and water, thereby contributing to
environment through various social causes.
We have allocated Rs. 16 lakhs for the campaign
3) Online Promotion:
We will be using social networking sites for promotion of our product by:
 Videos on Social Networking Sites:
Posting videos on the benefits and steps of its usage by using a model for
exhibiting the steps and displaying the pictures of the natural ingredients that
are used in Facebook, Twitter and Fashion websites.

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 Selfie Contest:
We will conduct a selfie contest for the most beautiful hair which will be
advertised through various social networking sites eventually, asking them to
post their pictures using the hashtag, #Charmé Selfie on our exclusive
website- www.thebodyshop.in on the section “Charm us to earn your
Charmé” and subsequently, the winner will get the chance to be part of our
next TVC.

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 Ad on YouTube:
We will post a 20 sec permanent Ad on YouTube to create awareness for its
traffic.
 Specialists:
Provision will be provided for the customers to directly contact and have live
chat with skin and hair specialist of The Body Shop.
We would defray her Rs. 10,000 per visit.

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4) Vis-à-vis Promotion:
 Charmé Face of Your Campus:
We are to conduct a ‘Charmé – The Face of Your Campus’ competition for
College students in universities like Delhi University, IITs, IIMs, etc., which
we will be sponsoring and the winner will be awarded a gift hamper and there
would also be demo tents to show the demo on Charmé’s usage and benefits
and also various social causes that it is into.
We have allocated Rs. 14 lakhs for the contest.

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 Brochures:
We will also be distributing Charmé brochures to the customers coming to
both men and women saloons where the parent company L’Oreal’s products
are used and sold. The brochures will display other products of The Body Shop
along with Charmé and its USP and also that they can directly contact skin and
hair care specialist, also the directions to become a member will also be
displayed and thereon, they will be communicated with all the offers via emails
and texts.
We have allocated Rs. 20 lakhs.
 Become a consultant, Book a party!!
We will be giving an opportunity to a loyal customer to become a consultant
through our online portal and the role of the consultant will be to attend parties
in homes that are booked by the customers through our online portal to sell our
Charmé product, to create its awareness and also to build strong customer
relationship. This would engender income to the consultant. The baseline would
be “Knowing your product and customers is the best way to land sales and the
more parties you run, the more you earn”.

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5) Government Tie-Ups:
Hamara Jal-Hamara Jeewan:
The Central government has implemented an initiative “Hamara Jal – Hamara
Jeewan” in every districts of the country in Jan’15 in a bid to create awareness on
water conservation so, we will tie up with the team of this initiative since we have set
a target of 25% reduction in water use by 2020 in our value report. In this initiative, we
would portray all those products which would facilitate this initiative including our
product, Charmé. On the billing counters, we will be placing a brochure containing the
details of this initiative of the body shop towards the Government’s campaign and how
the customers can contribute to the same. Following could be the message: “India has
more than 18% of the world’s population, but has only 4% of world’s renewable water
resources. There are further limits on utilizable quantities of water owing to uneven
distribution of water over time and space. With growing population and rising needs
of a fast developing nation as well as the given indication of the impact of climate
change, availability of utilizable water will be under further strain in future with the
possibility of deepening water conflicts among different user groups”. Customer
would be asked to contribute Rs.5 as per their wish.

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6) Television Commercial:
We will be portraying our brand ambassador in our TVC where in the ambassador,
Jacqueline Fernandez would be waking up to a loud alarm only to notice that she is
getting late for her work. From the time at which she wakes up till the time she leaves
for work the only thing that eases her tight schedule is doing her hair as she is all set in
a jiffy. The usage of Charmé adds on to her beauty so much so that she lures many men
around her.
We have entered into a joint venture with MULLEN LOWE LINTAS GROUP, who
has agreed to provide two advertisements in return for gift hampers worth Rs.45,
90,000 for three years. The peak (Prime time) hours for our TVC is 15:00 - 18:00 and
20:00 – 23:00 over popular channels watched by our target group in India like Star
Plus, Colors, Zee TV, Life OK, Star Gold, Sony Entertainment, MAX, ETC, Music
channels like MTV, VH1, 9XM, B4U Music etc. The frequency of advertisement will
be 5 times each in aforementioned range. Our brand ambassador Jacqueline Fernandez
will be paid Rs.50 lakhs for a one year contract.

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7) FM Radio: We will advertise Charmé dry shampoo on FM radio channels like Radio
Mirchi, My FM, Big FM, Red FM, Radio City, Radio One, Dhamaal 24, Fever FM,
Hit FM, Radio Indigo since 90% of the Indian population listens to radio during peak
hours from 7am to 10am, 5pm to 8pm and 10pm to 12 am. It will be advertised for 3
times in aforementioned ranges making it 9 times per day.
8) Email Marketing: We also as the internet marketers will attempt to collect and
organize emails for potential prospects to exchange email information and this can be
a primary way to connect with customers.
9) Professional Beauty India by WAHL: Professional Beauty is one of the world’s
leading trade expos with 8 shows across 4 countries showcases the beauty world’s best
known hair, skin, make-up and nail brands. It is one stop destination to witness over
400 brands, over 10,000 buyers, finest artists, and free beauty seminars by national and
international experts all under one roof and The Body Shop products would be among
these products.
10) Search Engine Optimization (SEO) Marketing: SEO is the process of affecting the
visibility of a website or a web page in a search engine’s unpaid result - often referred
to as "natural, or "earned" results. In general, the earlier (or higher ranked on the search
results page), and more frequently a site appears in the search results list, the more
visitors it will receive from the search engine's users. SEO may target different kinds
of search, including image search, video search, academic search, news search and
industry-specific vertical search engines.
Following our aforementioned approach, we have come out with a list of words that
will make our dry shampoo Charmé, Website, videos, educational content, etc. appear
in search results. As an Internet marketing strategy, SEO considers how search
engines work, what people search for, the actual search terms or keywords typed into
search engines and which search engines are preferred by their targeted audience.

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LISTS
Dry shampoo, Dry hair, shampoo, L’Oreal, Charm, The Body Shop, Oily hair, hair
care, anti-dandruff, colour loss, best shampoo, etc.
11) Magazine Advertising:
Since Magazine readers are better educated, have higher purchasing power and watch
less TV -- they deliver the hardest to reach and most influential of opinion leaders.
Research shows that a viewing a magazine page provides a greater impression per ad
than newspapers or TV. These bonus exposures increase a brand‘s opportunity to be
seen when the consumer is ready-to-buy. Several studies as per
www.womensedition.com show that magazines are the strongest driver of purchase
intent, and they boost other Medias' effectiveness. What’s more, magazines deliver
results more consistently throughout the purchase funnel than TV or the Internet. In
addition, consumers turn to magazines as a source for information on new products.
Therefore, we are to advertise our product Charmé in fashion magazines like Verve,
Vogue, Elle, etc. and Health magazines like Muscle and Fitness, Women’s Health
magazine.

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Public Relations
Public Relation is always there to communicate and relay a good and positive image to the
public and to the target audience. Within BodyShop, the PR team will always be
publicizing the fact that the whole company is good for the environment.
 S.H.E Initiative:
The original, natural and ethical beauty brand The Body Shop, launched S.H.E. -
SUPPORT HER EDUCATION, a campaign aimed at educating 100 girls in need,
in association with Food for Life Vrindavan (FFLV). The campaign is being
endorsed by famous Bollywood actor and philanthropist Vivek Oberoi. Through the
100+ stores of The Body Shop India, funds will be raised to support the education
of 100 underprivileged girls. Every customer will be requested to donate a small
amount of Rs 10 with their purchase. For this initiative, The Body Shop India raised
over 30 lac rupees towards the education, nutrition, healthcare & self-defense
training of 100 underprivileged girls.
 Membership:
The customers can become the members of The Body Shop either by registering
themselves online or by manually filling a form in our stores after which they will
be given a member login ID and will be handed a loyalty card respectively. These
members will be offered an attractive discount of 20% on other Body shop products
and a 25% off on Charmé for their first purchase and henceforth all other offers will
be communicated through mails and messages over mobile phone.
…Continued on the following page.

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 India Water Week: It is our initiative in association with Charmé for water
management from 3rd
Oct to 10th
Oct, 2015.
 Saheli Initiative: The Saheli network will connect affluent urban girls who already
love The Body Shop. They will see to it that the wish lists of the girls from rural
areas get substantiated by creating teams that come up with a plan to make the girls’

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wishes come true. The campaign will be inter-city, initially taking place in New
Delhi, Chennai, Mumbai, Kolkata and Bengaluru. This campaign will be advertised
with banner ads on official website, the official The Body Shop India Facebook
page, and the official Instagram that will lead them to the landing page where they
can connect with the other girls and teams.
Consumer Social Responsibility (CSR):
 Stop Sex trafficking of children and young people: In September 2009, The Body Shop
started a journey together with ECPAT International and local NGO partners around the
world, to campaign to Stop Sex Trafficking of Children and Young People. The Stop Sex
Trafficking of Children and Young People campaign was created to mobilize our
customers and inspire those with decision making power to take action. The response was
incredibly and we collected 7,044,278 petition signatures making this the biggest campaign
in our history, the history of several countries and the European Union.
 The Body Shop has been supporting education for over 20 years through our community
Fair Trade Program. Our sustainable trade has helped communities all over the world give
their children a better future by enabling them to invest in the building of schools and
provision of teaching materials.
 Teddy Exports-Southern India: We will be helping Teddy Exports build
a special needs school for children with learning and physical disabilities.
 Tara Projects-Northern India: Tara Projects supply us with our Home
fragrance soapstone oil burners and they are an alternative trade organization
that support artisanal groups across Northern India.
 Against Animal Testing: We believe in a humane approach to cosmetics safety. We
guarantee that none of our products are tested on animals and that our ingredients come
only from suppliers who do not test their ingredients on animals for any cosmetic purpose.
 Reducing water consumption: Water scarcity is a growing problem around the globe and
The Body Shop is reducing its own water consumption to address this. We have set a target
of 25% reduction in water use by 2020.

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 Cutting our waste: We are committed to reduce the amount of waste going to landfill. We
have set a target to reduce the waste we generate from our sites by 50% between 2010 and
2020.
 Wood Positive Program: We launched our Wood Positive Program with the aim of
planting and protecting more trees than we use in our packaging. To offset all the wood
based paper and pulp that goes into our packaging we will plant high conservation value
trees and protect established trees in areas threatened by clearance.
 Reducing Energy Use: From 2011 to 2012, we looked at ways of reducing energy
consumption in our stores through Building Management systems that automatically
control heating and lighting in stores and we remain committed to reducing energy through
technological advancements and by improving energy awareness among The Body Shop
employees. We set a target to reduce CO2 emissions from stores by 50% between 2010
and 2020.
Suppliers Management
All our direct suppliers are assessed against our code of Conduct, according to the criteria set out
by the Ethical Trading Initiative, which is an alliance of companies, trade unions and voluntary
organizations. The Code covers issues such as child labor, discrimination, working conditions,
living wages, and freedom of association. The process begins with a self-assessment questionnaire,
and later includes independent audits and site visits, where it is carefully assessed whether they
are following the standards set out in our Code of Conduct. As well as moving beyond auditing,
we are also expanding the program to include our ‘tier two’ suppliers in addition to our direct
suppliers. In other words, not only what we sell, but what we buy to run our own operations. This
covers everything from how we clothe our staff, to how we run print and promotions.
Labor Management
Ours has always been a business that puts a high value on people – we campaign for human rights
across the world, and we’re equally concerned to treat the people who work for us in a fair,
considerate and supportive way. Ours has always been a business that puts a high value on people
– we campaign for human rights across the world, and we’re equally concerned to treat the people
who work for us in a fair, considerate and supportive way. We have 5 ‘pillars’ or clusters of policies

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under the overall heading of ‘The Body Shop & Me’. These cover recruitment and integration,
learning and development, performance appraisal, reward and engagement and career
development. We also support the wider personal development and wellbeing of our employees
by contributing towards courses in areas like languages, sports, music, and health and fitness.
Part of our commitment to our employees is to ensure that they have a safe and healthy working
environment. We decided to introduce personal safety alarms in some more vulnerable areas. The
new alarms are discreet and inconspicuous, but work as a listening device if someone gets into a
difficult situation.
IV SALES
Customer Acquisition
Customer acquisition management is the set of methodologies and systems to
manage customer prospects and inquiries generated by a variety of marketing techniques.
The Body Shop – targeted towards the urban population, has 160 stores across metropolitan cities
in India. Body Shop products are exclusively sold in their stores, online from their website and
through a select few online shopping websites.
The Body Shop delivers high-quality, organic beauty and cosmetic products. The entire product
range is inspired by nature and is infused with the goodness of natural ingredients for enhanced
effectiveness. Enjoy complete skin, hair and body care with these products. The Body Shop also
offers men's beauty products, beauty gifts, beauty accessories, fragrances and makeup products.

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The Body Shop has a wide customer base in India and sells a number of products catering to all
age groups from children to the elderly. Every customer is always satisfied with the quality of the
product, the effect it has on their body and therefore, the overall experience.
Over the years, The Body Shop has acquired a wide variety of customers through its store sales,
online sales and sales through online shopping websites. The total number of recorded customers
of The Body Shop in India is 15 million. For an urban market in a country like India – that sounds
quite appealing.
Distribution Channels
The Market Builder’s broadly classify the sale of Charmé dry shampoo into 2 categories:
1) Internet
2) Retail
The Internet platform includes our own website, www.thebodyshop.in and retail space for –
Amazon and Snapdeal and online space from Flipkart.
Charmé can directly be purchased directly from our website, www.thebodyshop.in. Free home
delivery as well as cash on delivery options are available. You will be awarded a gift hamper if
your purchase exceeds INR 4000.
1. Amazon
The Body Shop
Internet
Amazon Flipkart Snapdeal
Retail
Company
Owned Retail
Outlets
Franchisees
Elite Salon Shelf
Space

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a) Fulfilled: Charmé is sold to Amazon and Amazon sells a number of units of Charmé as its
own product. There is no commission for this type of sale because Amazon is already
buying Charmé from us at The Body Shop. Amazon handles all customer service and
product returns for "Fulfilled by Amazon" items. If you need assistance with anything,
please visit Amazon’s Help pages by clicking the word "Help" at the top of any page of
Amazon.in
b) Direct online selling: We are using Amazon’s online platform to sell Charmé. This is the
standard way wherein we hire Amazon’s server space to place our product and sell it
directly. Amazon is not responsible for faulty products. They are only responsible for
packaging. Amazon charges us for using their space and we also pay commission for every
unit sold.
2. Snapdeal
Snapdeal’s sales are more in marketing and creating product awareness. We will give
Snapdeal a fixed number of Charmé units free of cost and Snapdeal will sell it for a LTP
(Limited Time period) discounted price, therefore creating awareness. This is a gain-gain
situation as Snapdeal is creating awareness of our product among its customers and also
selling it and in turn accumulating profit. After the fixed number of units get sold, Snapdeal
buy more products from us to continue business.
3. Flipkart
We will use Flipkart’s online space to sell Charmé and pay commission for every unit sold.
The payment is either through that or directly for using its space.
Retail:
The retail platform includes the following:
a) Company Owned Stores: These are the stores that are directly owned and operated by the
company. These are present in select cities. When products are sold through these outlets,
we do not have to pay any commission or have a sales margin.

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b) Franchisees: The sales through franchisee include commission basis or sales margin. The
franchisee owned shops are present in almost all cities, big and small. We will offer a
higher sales margin for Charmé because of its relatively new entry in the market.
c) Shelf space in salons: Reputed salons like Jawed Habbib, B Blunt, Enrich and Naturals will
provide shelf space within their salons to create awareness. Any Charmé unit sold from
these salons will give them a higher sales margin. When Charmé is sold through Celebrity
Secrets or L’Oreal salons, there will be a sales margin only if it is a franchisee. If the salon
is owned and operated by L’Oreal itself, the margin for sales will not be as high as the
others.
V AFTER MARKET SUPPORT
We are still trying to make our products the best and provide the customer with the best service.
Though some product packaging has upset a few customers every now and then, we have put in
our best efforts to rectify our mistake and made sure that it isn’t repeated again anywhere. Any
inconvenience has always been deeply regretted. We thank all the customers for their heart full
contribution for our betterment through their reviews, both on and off the internet. Your reviews
are what matters to us. In case of inconvenience, please use the below contact information to get
in touch with us. We, The Body Shop provide after sales support to Charmé, just like we provide
support for the rest of our products. We provide both Active and Passive support.
1) Active support: Active after sales support includes reaching out to the customer and
having them interact with the company. Advertising and interacting through social media
sites like Facebook, Twitter, etc. and trying to interact with the existing and potential
customers.
2) Passive support: These activities require initiation by the customer. Telephonic
interactions through our numbers:
a) Customer Care: +91-8287-666-041
b) Corporate Sales: +91-124-4171416

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The customer can reach our Indian Head office, located in Guragon, directly by contacting us on:
a) Tel: +91-124-4171400
b) Fax: +91-124-2562094
Customers can also reach us on our e-mail:
Email: customercare.tbs@questretail.in
We would love to hear from you. You can always reach us at our Head Office at Guragon:
Address:
The Body Shop India
C/O Quest Retail Pvt. Ltd.
7th
floor, Infinity Towers- A
DLF Cyber City, DLF Phase- II
Guragon- 122002.
CUSTOMER FEEDBACK FORM
1) For how long have you been using our product / service?
Less than a month 1-12 months 1-3 years Over 3 years Never used
2) How often do you use our product / service?

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Once a week 2 or 3 times a month Once a month Less than once a month
3) How satisfied are you with the product / service?
Very Satisfied Satisfied Neutral Unsatisfied Very Unsatisfied
4) What do you like about the product / service?
5) What do you dislike about the product / service?
6) Compared to similar products offered by other companies, how do you consider
our product?
Much Better Somewhat Better About the Same Somewhat Worse
7) Would you use our product / service in the future?
Definitely Probably Not Sure Probably Not Definitely Not
8) Would you recommend our product / service to other people?
Definitely Probably Not Sure Probably Not Definitely Not

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In addition to the above feedback form, we have also taken a few reviews from a few customers.
These are the reviews we collected from our stores:
 Madhu Rani
Place : Mumbai
Tea tree oil is just a MAGIC. I’ve never trusted any product for acne but is surely a
miraculous oil. And Drops of youth night mask is what I just started using since last
2days and it's wonderful too.
 Ankita Gupta
Place: Jaipur
I used Hand Cream recommended by a friend who is a user of The body Shop products. It
turned out to be too awesome.
 Richa Mukherjee
Place:Kolkata
I love their body butters! I have to try their rain forest range & their beautifying oils too :)
 Arpita Naidu
Place: Guntur
I just love The body Shop products :)
 Shailja Shukla
Place: Patna
I am yet to try most of these products, I guess TBS Body butters will be my next target
 Anuja Kulkarni
Place: Bijapur

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I have been an ardent user of the vitamin E night cream :D
 Neeta Singh
Place: Chandigarh
lovely products <3. love their body butters n face washes :)
 Afreen Shaikh
Place: Gujrat
I love TBS body butters and ummm all their products so much. 
 Feba Thomas
Place: Bangalore
I love their cocoa lipcare and the round kabuki brush <3
 Aditi Acharyan
Place: Kochi
I am an ardent follower of TBS products, in fact it is my skin's favourite brand too, my
skin is always happy with all their products, never complaining! :D In addition to other
products, I have been using the vitamin E moisture cream and Tea Tree range for months
now and I swear by both, they take care of my skin very well! :) xx Aditi
 Amita Singh
Place: Delhi
TBS is my favourite brand...I also love their Lip butters & they have some amazing Body
mists...
 Nisha Deka
Place :Gurgaon
I love TBS body butters. Their Vitamin E cream and body polish is on my list next.

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CONCLUSION
To conclude, The Market Builders in association with The Body Shop, have designed the world’s
most innovative and state-of-the-art dry shampoo – Charmé. We believe that this dry shampoo will
benefit and impact India in a positive manner. Although this market is a niche, urban one, The
Body Shop has a widespread customer base of 15 million across India. Since our profit margin per
unit is high, we expect to reach a high profitability ratio in a span of one year and this number
increases gradually each year.
Besides a high profitability ratio, we have been successful in creating two joint ventures with well
renowned, Mumbai based companies; the details of which are highlighted in the joint ventures
column in our report. These JVs have helped us in reducing our costs drastically and have added
immense value to Charmé. Free commercial advertising, free website and social media
management are some of the highlights we have in our joint ventures.
All in all, Charmé is India’s most convenient and innovative dry shampoo spray and comes with
the most advanced technology. To top that, it is a natural product without chemicals and added
preservatives. You should try it too.
Charmé – Spray on, Move on!

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REFERENCES
http://elle.in/beauty/news/the-body-shop-treasure-hunt/
http://www.vervemagazine.in/fashion-and-beauty/beautiful-natured-jacqueline-fernandez
https://www.google.co.in/search?q=white+color
http://www.vervemagazine.in/tag/the-body-shop
https://www.google.co.in/search?q=body+shop+store
http://www.personalcarecompanies360.com/summaries/the-body-shop-plans-new-stores-in-
india-by-2015.html
http://www.thebodyshop.in/
http://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD
--
THE MARKET BUILDERS
 Saba Khan
 Anuja Kulkarni (Vice Captain)
 Bilal Ahmad
 Amaan Alim
 Vivek Chintalwar
 Trishul Koaenetty
 Aditya Tekumalla
 Vinay Pasari
 Akshay Agarwal
 Amitansh Kumar Singh
 Yash Merchant (Captain)

Page77

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