China's Cosmetics: Challenges and Opportunities.

Marketing in China's Cosmetics Industry: Opportunities and Challenges

LEARNING OUTCOMES

LEARNING OUTCOMES

Upon successful completion of this module, students will have demonstrated:

Knowledge

K1 demonstrate a critical understanding of key marketing concepts & theories and the related academic literature

K2 demonstrate a critical understanding of markets and their different contexts

K3 evaluate and provide an overview of the key drivers of change for markets & marketing in the digital age

Skills

S1 demonstrate the ability to apply critical evaluation and strategic thinking skills

S2 demonstrate the ability to identify, select, analyse, synthesize and interpret credible information whether from academic or the trade press sources

Background
Just days after Chinese authorities officially dropped a requirement for most imported cosmetic products to be tested on animals before being sold in China, cruelty free beauty leaders are moving quickly to formally enter the world’s second-largest beauty market.

Brazilian beauty conglomerate, Natura & Co., parent company of both Aesop and The Body Shop, revealed as part of its announcement of fourth quarter and full fiscal year 2020 results, that both brands are readying for China market entry.

According to Natura & Co. chairman, Roberto Marques, the two brands will complete their product registration in China in the first half of 2021. Aesop is expected to be the first to open its first store in Shanghai in the fourth quarter of 2021, and The Body Shop’s first store in China is scheduled to open in 2022.

While The Body Shop was once available at duty-free shops in Chinese airports, the brand withdrew completely from the Chinese market in 2014 due to animal testing regulations.

More recently, both Aesop and The Body Shop have made products available to Chinese consumers online using cross-border e-commerce platforms, allowing them to ship products from overseas rather than import them for sale domestically and risk being subject to animal testing requirements.

“Although it is too early to mention the development of the Chinese market, we are committed to entering the Chinese market with a strong momentum, especially the two brands Aesop and The Body Shop,” Marques told analysts during the earnings call.

Context
You are a marketing executive working for the Body Shop cosmetics brand. The brand wishes to grow its Chinese market through the development of a new facial skin care brand for Gen Z male consumers.

Guidance on the word count is indicated for each section below.

Assessment Overview

Part 1. Case Study - You are to write a case study summarising the current status of Body Shop and technology used cosmetics sector marketing.

Part 2. Report - You are to write a report recommending relevant marketing strategy for a skin care brand for Gen Z males in the Chinese market.

A key focus of both will be discussion on how marketing activity and the market is influenced by current technology.

Part 1: Case Study – Cosmetics Industry - Market Trends Analysis (1,000 words)

Format –the case study must critically evaluate and incorporate the following aspects:

Brief company overview and mission statement of the Body Shop.
Evaluate the core offering, of the Body Shop customer‘’needs and wants, ‘jobs to be done’, and how are these currently satisfied through the provision of the marketing mix.
Evaluate to what extent the Body Shopdemonstrates a ‘marketing orientation’
With reference to the 4.0 and MarTech technologies studied on the module critically evaluate to what extent technology influences the sector’s marketing approaches and how this links to the delivery of value. (You will be expected to research other cosmetics companies and cite your applied examples)

At the end of the case study and a brief outlineof its purpose (no more than 100 words). You will expand on this in Part 2.

To demonstrate application of marketing theory, organisational and contextual accuracy, the case study should be supported with referenced evidence from a range of industry and credible academic sources.

Part 2: Individual Business Report (3,000 words)

Your task is to compile a business report recommending how to market a new brand of skincare cosmetics to the male Gen Z audience.

Main report (all of these sections below should relate to your case study information)

Executive Summary– summarise the report in its entirety, including your recommendations. (100 words)
Introduction– Outline the context (100 words).
Market Trends Analysis– using the sources provided (not limited to) justify the market for the above opportunity; consideration to Gen Z customers, competition, key market trends. You should provide the name of your new product range at the end of this section. (400 words).
Recommendations on Segmentation, Targeting and Positioning (STP)– make recommendations on the STP strategy for the new product you must reference academic marketing theory to support your discussion. (300 words)
Customer Persona Based on the STP discussion and your understanding of the Gen Z customerdevelop one target customer persona. (Embedded jpg image including text, not included in word allocation - appropriate and relevant text) This should provide intricate detail about your customer. This detail is important as your recommendations (marketing mix approaches) must align with this customer’s profile. This should be based on secondary research utilizing the sources above (not limited to).
Recommendations- critical application of the marketing mix tabulate as below –You will complete and include the table below. Critical discussion demonstrating marketing mix decisions for a value driven marketing strategy identifying how the organisation will engage with this customer group.This should be underpinned with explanation and reference to marketing theory to justify your recommendations.

The final column should not simply contain a refence, relevant theory should be located and a critical explanation should be provided in support of your marketing decisions. Gen Z are the most tech savvy generation the marketing mix must consider technological integration to support a great customer experience. (1,400 words)

Note elements of the marketing mix may not necessarily require an equal word count, allocation will depend on your recommendations.

Marketing Mix.	Recommendations (Marketing Mix)	Justification - how does this meet Gen Z customer needs ?	Explain and identify the academic marketing theory supporting the recommendation.
Product
Price
Promotion
Place
Process
People
Physical Evidence

Generic Assessment Criteria – Postgraduate

These should be interpreted according to the level at which you are working

		Categories

	Grade	Relevance	Knowledge	Analysis	Argument and Structure	Critical Evaluation	Presentation	Reference to Literature
Pass	86 – 100%	The work examined is exemplary and provides clear evidence of a complete grasp of the knowledge, understanding and skills appropriate to the Level of the qualification. There is also unequivocal evidence showing that all the learning outcomes and responsibilities appropriate to that Level are fully satisfied. At this level it is expected that the work will be exemplary in all the categories cited above. It will demonstrate a particularly compelling evaluation, originality, and elegance of argument, interpretation or discourse.
	76-85%	The work examined is excellent and demonstrates comprehensive knowledge, understanding and skills appropriate to the Level of the qualification. There is also excellent evidence showing that all the learning outcomes and responsibilities appropriate to that level are fully satisfied. At this level it is expected that the work will be excellent in the majority of the categories cited above or by demonstrating particularly compelling evaluation and elegance of argument, interpretation or discourse and some evidence of originality.
	70 – 75%	The work examined is of a high standard and there is evidence of comprehensive knowledge, understanding and skills appropriate to the Level of the qualification. There is clearly articulated evidence demonstrating that all the learning outcomes and responsibilities appropriate to that level are satisfied. At this level it is expected that the standard of the work will be high in the majority of the categories cited above or by demonstrating particularly compelling evaluation and elegance of argument, interpretation or discourse.
	60 – 69%	Directly relevant to the requirements of the assessment	A substantial knowledge of relevant material, showing a clear grasp of themes, questions and issues therein	Comprehensive analysis - clear and orderly presentation	Well supported, focussed argument which is clear and logically structured.	Contains distinctive or independent thinking; and begins to formulate an independent position in relation to theory and/or practice.	Well written, with standard spelling and grammar, in a readable style with acceptable format	Critical appraisal of up-to-date and/or appropriate literature. Recognition of different perspectives. Very good use of a wide range of sophisticated source material.
	50 – 59%	Some attempt to address the requirements of the assessment: may drift away from this in less focused passages	Adequate knowledge of a fair range of relevant material, with intermittent evidence of an appreciation of its significance	Significant analytical treatment which has a clear purpose	Generally coherent and logically structured, using an appropriate mode of argument and/or theoretical mode(s)	May contain some distinctive or independent thinking; may begin to formulate an independent position in relation to theory and/or practice.	Competently written, with only minor lapses from standard grammar, with acceptable format	Uses a good variety of literature which includes recent texts and/or appropriate literature including a substantive amount beyond library texts. Competent use of source material.
	40 – 49%	Some correlation with the requirements of the assessment but there are instances of irrelevance	Basic understanding of the subject but addressing a limited range of material	Some analytical treatment, but may be prone to description, or to narrative, which lacks clear analytical purpose	Some attempt to construct a coherent argument, but may suffer loss of focus and consistency, with issues at stake stated only vaguely, or theoretical mode(s) couched in simplistic terms	Sound work which expresses a coherent position only in broad terms and in uncritical conformity to one or more standard views of the topic	A simple basic style but with significant deficiencies in expression or format that may pose obstacles for the reader	Evidence of use of appropriate literature which goes beyond that referred to by the tutor. Frequently only uses a single source to support a point.
Fail	35 – 39%	Relevance to the requirements of the assessment may be very intermittent, and may be reduced to its vaguest and least challenging terms	A limited understanding of a narrow range of material	Largely descriptive or narrative, with little evidence of analysis	A basic argument is evident, but mainly supported by assertion and there may be a lack of clarity and coherence	Some evidence of a view starting to be formed but mainly derivative.	Numerous deficiencies in expression and presentation; the writer may achieve clarity (if at all) only by using a simplistic or repetitious style	Barely adequate use of literature. Over reliance on material provided by the tutor.
	35 – 39%	The evidence provided shows that the majority of the learning outcomes and responsibilities appropriate to that Level are satisfied – for compensation consideration.
	30 – 34%	The work examined provides insufficient evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence provided shows that some of the learning outcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in some of the indicators.
	15-29%	The work examined is unacceptable and provides little evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence shows that few of the learning outcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in several of the indicators.
	0-14%	The work examined is unacceptable and provides almost no evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence fails to show that any of the learning outcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in the majority or all of the indicators.

Answer

Marketing Mix: The marketing mix is a set of tools and tactics that a company uses to promote its products or services to its target customers. It includes the 4 P's: product, price, promotion, and place. The concept was first introduced by E. Jerome McCarthy in 1960. Segmentation: Segmentation is the process of dividing a market into smaller groups of consumers with similar needs or characteristics. This allows companies to tailor their marketing strategies to specific customer groups. The concept was first introduced by Wendell R. Smith in 1956.

Consumer Behavior: Consumer behavior refers to the actions and decisions made by individuals or households when they purchase goods or services. It includes factors such as motivations, attitudes, and perceptions. This field of study has been extensively researched by scholars such as Philip Kotler, Leon Festinger, and Abraham Maslow.

Branding: Branding refers to the process of creating a unique name and image for a product or service that distinguishes it from its competitors. It involves the development of a brand identity, which includes the brand name, logo, tagline, and other elements.

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