Jo Malone London
table of contents
Company overview about jo malone company history mission statement size and scope Product categories Goals of pop - up SWOT analysis Demographics customer profiles Competitors Location Trend forecasting and product assortment Fragrance ingredients Mood board new product line Assortment plan pricing floor plan planogram store renderings Store exterior Collaboration Promotion refernces
About Jo Malone
Jo Malone London is a British fragrance house known for elegantly simple scents with unexpected ingredients and a unique twist, as well as coveted colognes, Jo Malone London creates luxurious scents for bath, body and home. perfect alone or layered with fragrance Combining. They are known for their with gift giving, from a small token to the grandest of gifts. And also for their iconic packaging, every purchase is wrapped in their iconic cream and black box, tied with grosgrain ribbon. Always elegant. Always appreciated.
Company history
The company was founded by Jo Malone, originally a facial therapist who fell in love with fragrance while working from her discreet skin care clinic in her London home, discovering an instinctual talent for creating scented products by hand in her kitchen
Jo Malone expanded to Asia. An agreement was set up with the Lane Crawford Joyce Group, for exclusive distribution rights to the Jo Malone luxury lifestyle brand in Hong Kong, Singapore, China, Taiwan, Macau, Malaysia and Indonesia
JO LAUNCHED HER FLAGSHIP STORE IN LONDON’S SLOANE STREET AND SOLD THE BUSINESS TO ESTEE LAUDER COMPANIES WHILST STILL REMAINING CHAIRWOMAN AND CREATIVE DIRECTOR
2008 1999
1994 Jo Malone opened her first store in London
2006 THE COMPANY WAS SOLD TO ESTEE LAUDER IN ITS ENTIRETY
mission statement
Jo Malone strives to be a brand synonymous with An understated style and an unconventional sense of sophistication, with taste that is rarefied, yet a touch audacious, timeless and elegant. (Jo Malone, 2016)
size & scope
27 Colognes in the fragrance arc
41 Markets worldwide
Stockists: Lane Crawford Saks Fifth Avenue Neiman Marcus Nordstrom
E-commerce
400 Scent combinations with fragrance combining
Hong Kong locations: SOGO Pacific Place Harbour City
PRODUCT CATEGORIES
Goals of pop - up
Colognes Bath & body
Body and hand wash Dry body oils Bath oils Body & hand lotions body cremes shampoo & coniditioner Vitamin e products soaps
for the home Candles Diffusers Room sprays Linen sprays
New product launch; a new spring fragrance line Time of launch; in time for mothers day More brand awareness an opportunity for customers get more interactive with the brand
swot analysis Strengths:
Weaknesses:
Owned by Estee Lauder - gives the brand solid support as Estee Lauder is the second largest player in beauty and personal care recording a value share of 10% in 2015
Fragrances current value sales declined by 2% in 2015
One of the leading British fragrance brands Ranks among the top three prestige fragrance brands in key markets in Asia/Pacific Good brand positioning; high end and distinctive Has a good global presence in the market, serving 41 markets worldwide Provides the customer with an option for personalization i.e. their fragrance combination to create their own personal scent Positioned in a market that is currently experiencing growth (according to euro monitor’s industry overview of beauty and personal care in China)
They don’t do any advertising “We don’t do any advertising, so when we open a new shop, we walk the dogs, said Wild, explaining a practice that began with the company’s namesake founder. We each carry lots of shopping bags and go for a walk around the neighborhood where the shop is when people see the bags, they always stop us to ask where the store is” Debbie Wild, fragrance and lifestyle director for Jo Malone
OPPORTUNITIES:
THREATS:
The global premium fragrance market is experiencing growth and high sales,therefore there is an expanding consumer base
Market saturation
Theres a popularity in niche offerings and near-customization
Chinese travel to Hong Kong is declining
Increased competition
Rising number of consumers with high purchasing powers due to rising disposable incomes There is demand for fusion styles that mix Western and Asian influences as well as luxury, and more traditional standard fashions (according to Euromonitors report on consumer lifestyles in Hong Kong China)
(Market research, 2016)
Demographics Target market: Millennials and Generation Z Estee Lauder: “Millennial consumers (born between 1980 and 1995) have demonstrated their insatiable appetite for innovation novelty and individuality. We view Millennials’ fresh approach positively and believe it reinforces prestige beauty as a high-growth consumer area, in many cases exceeding mass beauty in key countries around the world.” (el companies, 2016) About millennials: • The Millennial generation is now the largest demographic group in the world and are very much into prestige beauty • Highly attached to their smart phones • Very individualistic, known for being narcissistic and self centred; this is seen in the emergence of customized products • Known for their need to be listened to; they expect brands to react to their ideas and criticism, and allow them a role in sharing new products. • Love interactivity • Appearances matter to millennials, and clothing and beauty are areas where they are keen to spend – particularly Undaunted Striver’s and Impulsive Spenders.
(Euro monitor, 2016)
(Euro monitor, 2016)
(Euro monitor, 2016)
(Euro monitor, 2016)
Customer profiles
Estee Lauder is also focused on positioning our brands as leaders with Generation Z.
About Generation z: These consumers, born after from 1996-2010, will soon outnumber Millennials.
NAME: Amy Li AGE: 20 MARTIAL STATUS: Single EDUCATION: Hong Kong Design Institute, B.A. in International Fashion Business OCCUPATION: Student INCOME: Financial support from her parents LIFESTYLE: Full time student; spends most of her time at school, but on weekends you will usually find her roaming around shopping malls with her friends or updating her fashion blog. Personality trait : Highly individualistic
They are the first generation to be raised in the era of the smart-phone – many do not remember a time before social media – and, in the United States, they will be the most ethnically diverse generation in history. These consumers are estimated to be 25% of the worlds population Estee Lauder is very hard at work in developing the innovative products and experiences to delight these new, younger consumers and draw them to their brands They have +$40 billion in purchasing power They are Digital natives; heavy users of apps and social media platforms They like authentic and unique experiences Word of mouth and reviews are an essential part of their shopping process
(Euro monitor, 2016)
Name: Laura Harrison Age: 27 Marital status: Engaged Education: University of East London, B.A in Hospitality management Occupation: Event Coordinator Income: HK$ 312,000 Lifestyle: always up to date on the city’s latest happenings, loves going to the movies with her fiancÊe and attends a yoga classes twice a week Personality trait: Perseverance
Name: Luca Delucci Age: 25 Marital status: Single Education: Suffolck University B.F.A Interior Design Occupation: Junior Interior Designer Income: HK$ 162,000 Lifestyle: Likes to travel and discover new places, enjoys grabbing drinks with his friends after work and has a hobby for photography Personality trait: Very detail oriented
A Paris-based luxury goods company that produces a high-end line of scented candles, perfumes, face and body care. Founded in 1961 They have similar garden scents Product price points are around the same 50 markets worldwide + e-commerce Much wider variety of candles with over 50 scents Product assortment is much less than Jo Malone Much lower following on social media platforms such as facebook and instagram Hong Kong presence: One boutique Sold in Lane Crawford and Joyce Beauty locations
Competitors
A British luxury fragrance brand founded by Jo Malone in 2011 following her departure in 2006 from Jo Malone London. The brand sells the same product assortment, however on a much smaller scale Follows the same concept of creating scents with natural ingredients The inspiration for the brand is centered around scents from culinary experiments The brand only has one store in London, but is planning on worldwide expenditure Much smaller brand recognition
Hermès is a French luxury goods house founded in 1837 by Thierry Hermes. Originally focused on equestrian accessories, the company has evolved over time into leather handbags, scarves, accessories, fashion and fragrance. the perfume adventure begins in 1951 with Eau d’Hermès, composed by Edmond Roudnitska, one of the greatest creative spirits of the world of fragrances. They have a line of garden perfumes, much similar to the scents of Jo Malone Same price point Stronger brand recognition and marketing Small product assortment; has only regular and home fragrance 328 stores worldwide 7 stores in Hong Kong Sold in Lane Crawford
Founded in 2006 Inspired by the aromas of spices and incense in India They create scented candles and perfumes, using the highest quality raw materials Herbal/floral ingredients They also carry a limited collection of eye wear, leather goods and accessories A bit more expensive Wider variety of scents More limited number of stores, doesn’t rely on having their own boutiques, sells their products through department stores Hong Kong presence: Only sold in Lane Crawford
Founded in 2005 by Tom Ford, former creative director of Gucci and YSL Created the Tom Ford brand through an alliance with Estee Lauder There are 98 free standing stores and shop-inshops More intense scents Much higher price point More exclusive Stronger marketing Stronger brand recognition Facing the same sales growth Less product assortment in the beauty sector Hong Kong presence: One free standing store and Lane Crawford
Chanel is a French, privately held company founded in 1909 owned by Alain and Gérard Wertheimer. It is a high fashion house that specializes in haute couture, ready-to-wear clothes, luxury goods and fashion accessories Has a leading market share of fragrance in China for 4 consecutive years now Has one of the top fragrances in the world Stronger brand recognition and marketing Well established and more luxurious Same price point Has 310 stores worldwide 19 stores in Hong Kong
Location
K11
• Located in tsim sha tsui • Tsim Sha Tsui is an area recognized with a lot of mainland Chinese consumers ‘Target customers are mostly high-net-worth local residents and mainland Chinese tourists, as well as wealthy expatriates.’ (Euromonitor, 2016) • museum retail concept and a hybrid model of art and commerce • K11 partners with the art community and exhibits works by local and international artists throughout the mall • offers booths and stores for pop-up shops • Based on a discussion with the K11 rent office, it is not possible to rent out a large area for a free standing store, as these places are reserved for art installations
Chosen location for pop up
• An exclusive luxury mall in Central • It is commonly known as the home of numerous prestigious international brands • Landmark spans four buildings: Landmark atrium, Landmark chater, Landmark Alexandria and landmark prince’s. • The mall is a very sophisticated lifestyle space, that meets exclusive shopping and dining in the heart of central
Landmark
IFC
• Located in central • One of Hong Kong’s leading businesses and leisure destinations • Has a unique combination of offices, high end shopping and entertainment outlets • Has Hong Kong’s finest hotel and suite hotel (Four Seasons Hotel and Four Seasons Place) • Features 200 stores that include: international premier brands, flagship stores and unique concept stores (Ifc mall,2016)
Getting there
Why IFC?
• Jo Malone has no store presence in Central (only in Lane Crawford) • Has wide open spaces for an installation • The Central district has the highest number of economically active households with a median monthly income of 42,000HK$(Population and Household Statistics Analyzed by District Council District, 2013) • Good destination for Jo Malone’s target market of millennials and Gen Z. Demographics: 10.6% 15-24 year olds and 64.7% 25-64 year olds (Population and Household Statistics Analyzed by District Council District, 2013) • More than 90% of both consumer types have a secondary education or above (Population and Household Statistics Analyzed by District Council District, 2013)
• General/complimentary and valet parking • Situated right atop Hong Kong MTR station • There’s more than 30 bus and minibus routes outside the ifc complex • 10 tram stations along Des Voeux Road Central, 3 of them are located near the ifc complex • Taxi stands are conveniently located outside the main entrance of ifc mall and near the entrance of One ifc
Pop up specifications Trend forecasting for product assortment
Chypres scent family ; characterized by an accord composed of citrus top notes, cistus, and a mossy animalistic base note • Installation in the Oval Atrium • an estimate of 600 sqft. for 7000HK$ per day (PopUp Angels, 2015) • Located on the 1st floor right in front of the main entrance • An area of the mall with heavy traffic • A well rounded space that is visible from every floor
Gender free scents Gourmand notes used to add depth and sweetness Floral accord to create delicate yet distinctive notes Confectionery notes with a nutty undertone (WGSN Scent reports, 2016)
Based on various WGSN scent reports, i noticed that the chypres scent family was a recurring trend for spring. Therefore , i decided to use it in creating the new spring scent for Jo Malone, with the help of a fragrance expert from ‘Eden Botanicals’.
Fragrance ingredients
Bergamot: Citrusy, like lemon but with the addition of a specific aroma of earl grey tea. Citrus scents are very gender neutral and usually used in a lot of spring scents (Eden Botanicals, 2016)
Rose de mai:
Eden Botanicals is a company that Provides essential oil for aromatherapy, natural perfumery and body care products
Rich, clear, sweet rose, with very fresh green undertones; extremely refined
Cedar wood: Base notes of musk and vanilla underneath the warm earthy scent of cedar known to be ‘masculine and sexy; plays a big part in unisex fragrances according to eden botanicals
Galbanum: Green, fresh scent. Used as a stabilizer in chypres blends
Cistus: musky, earthy aroma used as top notes for chypres blends
New product line
mood board
features a more colorful and fun packaging, with a color pallet that captures the aesthetic of the scent
Pricing
Price range: HK$ 310 - HK$ 1009
HK$ 1009
HK$ 504
HK$ 310
HK$ 580
HK$ 504
JO MALONE POP-UP STORE FLOOR PLAN
Planogram Exterior: A more rounded exterior of the store to create a more organic and inviting feel Octagon shape used to make the store more functional for furnisher installations Interior: 1 big cupboard at the end of the store, used for both display and storage 1 round table in the face of the entrance to display new product line 1 curved table at the entrance to serve tea for customers as a form of welcoming 1 square stand towards the right to display iconicgift boxes 1 counter table with 4 high chairs to provide complementary hand massage service for customers
Cupboard
Square stand
4 shelves that display packaging samples of Jo Malone’s iconic gift packaging with flowers just as a special offer for the pop up event
Round table
New product line, lined up in a semi circle, facing towards the enterance of the store therefore it is the first thing the customers notice when they walk into the store The semi circle is created to create an inviting appeal to the products
Store perspective 1
Store perspective 2
By Jamie-Lee Weir
(features iconic Jo Malone chandelier to give the store a more luxurious feel)
By Jamie-Lee Weir
Store exterior
Collaboration
For the store exterior, it is going to be heavily decorated with elaborate flower displays, surrounding the entire store. The colors of the flowers are going to capture the essence of the new fragrance giving customers a full, dynamic experience of feeling what the new fragrance is all about Collaboration with flannel flowers for store exterior
Promotion Flannel flowers
Snap chat filter Well established- around since1994 • Offers a luxury bespoke floralservice • An exquisite selection of freshflowers from Europe, Americaand Japan • Collaborated with clients thatinclude Louis Vuitton, Cartier, VanCleef & Arpels, and LaneCrawford
Email invitation to loyal customers In store signage of new fragrance line
Snap chat filter
‘snap chat was ranked the third most popular social app among millennials’ (Kosoff, M., 2015) ‘Snapchat offers a prime way to reach coveted “millennial” consumers on their home turf, with the app boasting 100 million daily active users.’ (Perlberg, S., 2016) The filter is for users to overlay our brand’s message on their own pictures and videos as an fun interactive advertisement for the pop-up event
In store signage
‘Along the path to purchase, Millennials search for short snippets and seek out highly visual elements as they gather information to help them evaluate potential purchases.’ (DeBroff, S., 2015) This in store signage is an advertisement to capture the essence of the fragrance, and for having a more visually interesting interior for the minimalistic aesthetic Jo Malone has
References Consumer Lifestyles in Hong Kong, China. (n.d.). Retrieved November 14, 2016, from http://www. euromonitor.com/consumer-lifestyles-in-hong-kong-china/report Eden Botanicals. (n.d.). Retrieved November 11, 2016, from https://www.edenbotanicals.com/ Flannel Flowers. (n.d.). Retrieved November 13, 2016, from https://www.flannelflowers.com.hk Fragrance concepts 2016 (2016). Retrieved November 12, 2016, from www.wgsn.com Ifc mall | International Finance Centre, Hong Kong. Retrieved October 15, 2016, from http://ifc.com.hk/ Key trends - Fragrance Autumn 2016 (2016). Retrieved November 12, 2016, from www.wgsn.com Kosoff, M. (2015). 2 dozen millennials explain why they’re obsessed with Snapchat and how they use it. Retrieved November 14, 2016, from http://www.businessinsider.com/why-millennials-use-snapchat-2015-2 MarketResearch.com. (2016). Retrieved November 14, 2016, from http://www.marketresearch. com/Euromonitor-International-v746/Online-Travel-Sales-Residents-Hong-10443412/ Perlberg, S. (2016). Snapchat: How Brands Reach Millennials. Retrieved November 14, 2016, from http://www.wsj.com/articles/snapchat-how-brands-reach-millennials-1466568063 Population and Household Statistics Analysed by District ... (2013). Retrieved October 16, 2016, from http://www.statistics.gov.hk/pub/B11303012013AN13B0100.pdf PopUp Angels: Find and Rent Great Pop-Up Spaces. (2015). Retrieved October 16, 2016, from http://www.popupangels.com/ Seven scents s/s 16. (2016). Retrieved November 12, 2016, from www.wgsn.com DeBroff, S. (2015). Reaching Millennial Women: The Continued Rise of Visual Social Platforms. Retrieved November 14, 2016, from http://www.business.com/social-media-marketing/millennial-women-and-the-continued-rise-of-visual-platforms/ Retailing in Hong Kong, China. (2016, January 15). Retrieved November 14, 2016, from http://www. euromonitor.com/retailing-in-hong-kong-china/report