Fragrance
STRATEGY PROPOSAL
!FCP 1
1
N0469100
LING ZHANGĎ
• INDRODYCTION! • ! • ! • ! • ! • ! •
METHODOLOG!
• ! • ! • ! • ! • ! •
4P STRATEGY!
CONCEPT! MARKET ANALYSE!
ContentĎ
SWOT ANALYSE! CONSUMER BEHAVIOR!
CONSUMER SEGMENTATION!
FLAGSHIP STORE ENVIRONMENT! CONMMUNICATION STRATEGY! SUMMARY! APPENDIX! ILLUSTRATIONS!
! • REFERENCE! ! 2
“A women who doesn’t wear perfume has no future”
3
INTRODUCTION “A women who doesn’t wear perfume has no future� Said Coco Chanel. Different fragrance with different future means different pursuit. In the contemporary world, fragrance has become the essential consumer goods for people, especially for women. Along with the improvement of living standard, the value of perfume for females is not only confined to its function, but a kind of pursuit of fashion, taste, glamour etc, even love. The report aims to develop a promotional strategy in order to help IGNITE, which is a new female fragrance and initially launches in UK market. The purposes of this promotional plan are to open its market visibility and popularity, establish brand equity, to attract customers, to enhance product recognition and reputation, plus to build a good image in the market. The report will develop a plan include a brand concept for launch event and a analysis for target market, as well as a clear SWOT analysis. The target consumers are going to be identified. Then specific positioning location will be suggested and a public relationship strategy will be provided.
4
METHODOLOGY Every year, thousands of new fragrances industries are launched in order to obtain consumer’s interest by innovative development. Various research methods will be offered in order to acquire more comprehensive knowledge about fragrance market and to provide IGNITE a reliable support. For the primary research, a questionnaire will be made for consumers through internet to understand the smell they like and wear recently. (showed in Appendix. ) Then a in-store research will be undertaken in order to find out useful marketing strategies and receive suggestions from consumers. For secondary research, market positioning and competitors will be discovered based on credible resource, such as Mintel store.
5
CONCEPT
g e n d e r - b l u r r i n g fashion.” .According to that, androgyny is the crucial theme of this new fragrance with a spirit of female liberation, just like the name “IGNITE”, has connotation of sex, desire and heat. Afterwards, it is going to emphasizing that even market defines gender for fragrance, fashion has no gender limit. In other words, women can also wear a male scent fragrance. Moreover, the heart notes of this fragrance are citrus, woody and narcotic and also with fruity and tobacco scent as accessories. It is a ‘Eau Parfam’, which has 15-20% concentration and can last about 4 to 5 hours.
IGNITE is an individual female fragrance with an androgynous scent which is going to be produced in the UK, its inspiration was stimulated by musical and art event, for example, David Bowie. So it is a creative and original fragrance which is integrated closely with cultural and fashion tendency. Androgyny is evolving a large scale of fashion trend and this new fragrance combines male and female elements, then to interpret a timeless and minimalist style. Braukämper (2013)states “Androgyny has always been a source of interest and intrigue. However, as boundaries have changed in the s o c i e t y, s o t o o h a v e t h e masculine-feminine boundaries blurred, in this way, from ambiguous sexual and physical attributes developing to a much more relaxed stance on
6
MARKET ANALYSE The fragrance market is an important part of the care market. Popi(2011) provides information about “During the 90’s, this market has known a considerable growth. Currently, it might be entering a maturity phase; The perfume market is highly competitive and the total global market is over 25 billion dollars.” In recent year, the competition among United States, Italy and France perfume market is intensive. Then nowadays, they constituted a situation of tripartite confrontation in the perfume world. In UK retail market, information on Mintel(2012) declares “fragrance continued to grow in 2011, in spite of a challenging economic setting, with sales up by 4.5% to reach around 1.38 billion pounds.” However, in 2009, CAIMEIJU(2009) had illustrations that “The World Luxury Association stated ‘China has surpassed the United States about spending on all kinds of luxury products.’ and becomes world’s Second-Largest luxury market; fragrance sales are increasing, especially in medium to high level fragrance. On the one hand, since china has accessioned to the WTO, the world trade is gradually becoming prosperous. So it is inevitable that more and more famous brands throughout the world enter china market. then figure about fragrance industry growth in China is gradually increasing. In the other hand, China also provides relevant legal terms for these brand in order to support western brands’ development in china. Thus, except UK market, in order to obtain great development in the future, IGNITE will be generalized to another large market, and Chinese market will mainly taken into account for this new fragrance.
7
8
9
SWOT ANALYSE The SWOT analysis is a useful tool to determine Strengths, weaknesses, opportunities and treats of this product. “The SWOT analysis pursues an integrated approach including key company and environmental variables.” (Böhm,2008,p1). This part demonstrates the SWOT analysis of IGNITE comparing with one of its competitor Prada edp, which has promoted to Chinese market many and got great achievement.
IGNITE Strengths
New brand and consumer’s curiosity. Androgynous scent on contemporary trend. Suitable for most of modern females and meet the needs of majority consumers. Innovative packaging and bottle. Quality guarantee of product and after-sale service.
Weaknesses
Lack of social experience Fierce competition Insufficient reliability for a new product.
Opportunities
Publicity. Collaborations with most potential brands. Increasing feminist awareness New product development Large Chinese market Online shopping Fragrance choice diversity especially for unmarried females and females.
Threats
Price conscious consumers More special and creative fragrance Under the financial crisis, the decline in the purchasing power
10
PRADA strengths Experienced Powerful partnership Strong brand image Large group of consumers Well-known all over the world Weaknesses Traditional Fixed product style Target consumers are too narrow Highly leveraged Opportunities Product diversification Reinforce brand reputation Attract younger group Threats Potential competitors like IGNITE Existing competitive background Low utility
11
BEHAVIOR CONSUMER
In order to launch IGNITE in UK market and Chinese market successfully, consumer behavior should be considered. Even consumers in china and UK have different behaviors caused by cultural difference, they both have three mentalities in common when they shop fragrances. First of all, they generally do not spending money on fragrance until their fragrance have used up. Second, consumer will purchase a fragrance as long as they like it. Lastly, a fragrance is normally for friends gifts. More than that,
12
fragrance will be used in most formal occasions, as well as working and shopping time. Another key factor within consumer behavior lies in festivals and seasons. For IGNITE, it has achieved all requirements for consumers because it suitable for diverse situations. After that, sales promotion activities are going to be held in festivals like Christmas or Easter, sometimes in summer.
his fragrance mainly faces to 25-30
females group who are perfect, powerful, independent, brave and confident. Also, they have high fixed income, such as professional white-collar ladies. The specialty of IGNITE is exactly what they are seeking, IGNITE is the embodiment of their taste, characteristic and status on. Secondary market IGNITE also provide for females between 18-25 years old, a group which is mostly keen to fashion trend and have the pursuit of life, as well as good family conditions.
SEGMENTATION
13
CONSUMER
T
With the adverse changes in exchange rate and foreign trade policy, the appreciation of RMB, as well as the update of import and export trade policy, it is bound to affect western product imported into Chinese market. Afterwards, demographic characteristics should be taken into account. There is an adverse change in social consumption pattern, and the requirement for fragrance
of Chinese women and western women is different; also, regional disparity is another problem, so that different socio-economic development leads to different consumption level and consumption patterns. For the new brand IGNITE, it still need to go through hard work in order to establish in Chinese market, hence, number of strategies will be implemented.
14
At present consumer w o rl d , ex c e p t b o t t l e appearance, people would like to pay more attention to the spiritual value of a p r o d u c t . Fo r t h e development of an enterprise, it should be based on the broad masses of consumer g roups. Therefore, the target market can be developed in a middle to high consumption level.
4 STRATEGY Product IGNITE is in high demand for minimalism and modernism, so Black and white is the dominated colors in order to highlight an androgynous and modern feeling. Then, Four types will be produced as normal: Parfum, Eau de Parfum, Eau de Toiette and Eau de Cologne. Particularly, Eau de Cologne will be the limited edition. Besides, Aromatic Flavours & Fragrance is chose to be the manufacturer, which is one of the leading independent fragrance manufactures worldwide.. After that, essential oil and candles with IGNITE scent will be produced as the accessories.
massive department store, such as Wangfujin department store and Parkson. Agyness Dyne will be invited to be the brand ambassador as she is following the androgynous trend in recent years and has a powerful and independent appearance.
Price The price of IGNITE is 70 pounds based on it quality and spiritual value and competes with three different world brand fragrances at the same level, they are: Balenciaga, Florabotan Ica, Prada Infusion D’Iris and Narciso Rodriguez For her.
Place For the launch event, it will be launched in the next year which is 2014-2015 following in the androgynous trend at that time. The launch event will be held in Selfridges and Harrows at the cosmetic department in UK. In China, it will be launched in
15
16
Promotion Publicity method will be finished t h ro u g h T V a n d m a g a z i n e advertisings. IGNITE is an innovative fragrance associated with features of music, culture and art. In the one hand , Hunger magazine was newly launched in 2011 and it is published 2 times a year combined with music, fashion, beauty and photography. It is a reasonable way to emphasize how androgyny relates to music and fashion trend. So Hunger is perfectly suit for releasing IGNITE advertising in UK. Moreover, ID mag azine is another target magazine for IGNITE advertisement. Both of the two magazines are available online, therefore consumers can notice IGNITE not only on paper but also on website. In the other hand, for Chinese market, advertising is going to publish on Cosmopolitan magazine which is the most popular fashion magazine in C h i n a . B e s i d e s, fo r s e l l i n g distribution, IGNITE will not only
17
be sold in store but also online, such as Selfridges online, Harrows online, House of Fraser online, even on Ebay and taobao(in China). After that, promotion activities will be held once a year, principally in Christmas. In recent year, Chinese have typically impacted by western culture; Christmas has become one of the significant festivals in China, particularly for young people. They are fond of exchanging gifts with friends; fragrance has become their first choice. As same as in UK, fragrance is usually the gifts between lovers. Additionally, for effectively conducting this promotion activity, two influential plans will be used. The first one is free set of candles or essential oil will be offered if consumers buy a bottle of IGNITE, and another plan is consumers can get a 5 -10 pounds voucher in Selfridges or Harrows if they spend over 70 pounds. Moreover, when IGNITE achieves success, auto perfume in cars will be considered later on.
MAGAZINES ad
18
Flagship store environment To successfully launch this new fragrance in UK and Chinese market, opening a flagship store is necessary. Because a plenty of fragrance flagships have been launched in UK, such as ILLUMINUN in Dover street marker in London, the influence in UK may not as great as in China. For UK audience, it is only a new local fragrance which is similar with others. However, situation will be different in China; it will be a brand-new western concept and cause consumer’s curiosity. With the improvement of living standard in China, people would like to challenge new product, especially western product, according to that, and Chinese consumer has been interviewed and his consumer profile will be given. More than that, Jing (2013) on CHINAdaily declared Chinese people have started and end every day of their lives using overseas bands. So, the flagship will be launched in Hongkong China, which is one of the largest shopping center over the world. The specific location is in the Times Square, a large modern shopping center.
19
Communication strategy In the beginning, it is going to conduct an online survey as primary research to find out what situation do consumers are most likely to wear this fragrance, then question like “what pleased memory do you remember from this fragrance” will be given. In this way, consumers will think about this fragrance in a more details, and “this prompts the consumer to think about your fragrance in a more d e t a i l e d , a n a l y t i c a l w a y, a n d c o u l d subconsciously give customers the impression that they need your product.’’ (http://yourbusiness.azcentral.com/fragrancemarketing-strategies-13736.html#author, no date) Apart from that, a free fragrance sample will be given to consumers every time they spend money on fragrance in most emporiums, for example, Harrow in London and Parkson in China. Meanwhile, it is going to holding an online contest. For instance, a bottle of
cologne will be given to a few consumers for free if they can answer a trivia question correctly about this fragrance. If so, consumer will be very likely to buy this fragrance in their next shopping time if they like the scent. Therefore, it is helpful to find out the consumer and market demand and provide an innovative promotional plan for IGNITE. Additionally, advertising also will be published through social media like Facebook, Twitter, Weibo (in China) and some applications in mobile. Take twitter as an example, before audience sign in their account, a IGNITE advertising will enter into their eyes, IGNITE company will collaborate with Twitter company to establish a random lottery event, in the other words, if audiences would like to click share and link this advertising to their Facebook homepage, system will pick a few audiences randomly so they will have chances to win this fragrance.
20
SUMMARY... This report has discussed about IGNITE, which is going to initially launched next year in both UK and Chinese market. Holistic market situations have been analyzed then a specific target potential markets have been pointed out. Afterwards, realistic promotional strategies have suggested according to SWOT analyze, as well as some digital methods. Launching this fragrance in UK market will improve consumer awareness about androgynous trend, while expending the market into China is going to gain much vaster interests and transmit western value. Moreover, keeping a good relationship with different fragrance company, designers or media companies is not only helpful for obtaining experience but also beneficial for future collaboration and development.
WORDS: 2471
21
APPENDIX
Survey results Fruity
39%
39%
floral
34%
fresh
48% unisex fragrance
51% would wear a scent that reminded them of a male
54% already wear a scent to remind them of a person or place
22
73% have worn a male scent
!
CONSUMER PROFILE Natalie Earthy 20 • Lifestyle: student living away from home with busy social life • Shop at: small boutique or buy online • how often: 6months • Loyal: I have up to 4 at one time, I don’t stick to one brand. Some days I will wear two at once • Price: Max £40 but if the concept was good I would be prepared to spend more • style: Minimalistic slightly indie edge • style icon: Boys that dress similar to me make it feminine
CONSUMER PROFILES Kaya azalea 20 •
Lifestyle: Student at Uni living away from home with a very busy social life
•
Shop at: individual boutiques
•
Purchase fragrances: the perfume shop
•
How often: twice a year
•
Loyal: Have multiple perfumes up to 3 fragrances at the moment. I look at several brands and always change.
•
Price: Usually spent about £40-£50 on a fragrance style: boyish and casual with a bit of a street and vintage twist
•
Style icon: Lil Debbie
23
CONSUMER PROFILES Charlotte Tyree 27 • lifestyle do you have: employed - Actress/Model/Dancer/supervisor at a bar. • shop at: Vintage shops, charity shops, Ebay, Topshop • purchase fragrance: Boots • How often: twice a year • Loyal: Multiple fragrances - Alien and Jean Paul Gaultier, loyal to the ones I favour, but would be willing to look at other brands. • Price: £50/£60 • style: Vintage/grunge mash up • style icon: Mary kate and Ashley
BOTTLE AND PACKAGING DESIGN 24
ILLUSTRATION http://blog.thephotodiner.com/wp-content/uploads/2013/03/Coco-Chanel.jpg http://img.taopic.com/uploads/allimg/110424/8880-110424153A043.jpg http://img.xiaoye.com/UploadFile/Picture/F720972.jpg h t t p : / / c d n 6 . h b i m g. c n / s t o r e / s n s t h u m b s / 3 2 0 _ 3 2 0 / c e l e b r i t y / 201111/8E74D8BCEEAD9BB083F6CFC544A986F1CA872FF1FE.jpg h t t p : / / w w w. c h i n a d a i l y. c o m . c n / c n d y / a t t a c h e m e n t / j p g / s i t e 1 / 2 0 1 1 0 8 2 2 / f04da2db11220fbbe1b40e.jpg http://www.incrediblediary.com/wp-content/uploads/2012/09/Perfume-Industry.jpg http://www.ivoryresearch.com/wp-content/uploads/2013/04/ben-morgan-fig-2.jpg http://www.af-f.co.uk/about-us/ http://www.people.com.cn/mediafile/pic/20111230/24/17169528665908140184.jpg http://jpp1.imghb.com/pic/pic/10/87/43/1418496910874381_a602x602.jpg http://star.yoka.com/AgynessDeyn/ http://edge.lovingapartments.com/poi/images/poi/459/459-Selfridges.JPG http://1.bp.blogspot.com/-kLUSIJPD0E4/T5rl_X-hHxI/AAAAAAAAYAQ/GxkmnFG-dIo/ s1600/harrods_logo_2352.gif http://www.porhomme.com/wp-content/uploads/2009/05/i-d-magazine-june-2009-300thissue-main.jpg http://2.bp.blogspot.com/-34G2qbvsmRg/UVMr2tUDLLI/AAAAAAAA6Aw/oFr4A5l5cJY/ s1600/hunger.jpg http://lh6.ggpht.com/_htChnVZZ_UM/TOi6f1ESD0I/AAAAAAAAA8I/I57d_3asG0w/ (ynono.com)shishang-chinese-2010-11.jpg?imgmax=512 http://www.tour110.com/upimg/allimg/080729/1543060.jpg OWN Â IMAGES
25
REFERENCE Braukämper, T (2013). Androgynous fashion: Spring's evolution. Fahioning.com, Retrieved from http://www.fashionising.com/trends/b--androgyny-androgynousfashion-22284.html Popi,B (2011). Market Analysis: Fragrance. Studymode, , . Retrieved from http:// www.studymode.com/essays/Market-Analysis-Fragrance-884395.html Mintel(2012). Retrieved from http://store.mintel.com/mens-and-womensfragrances-uk-september-2012?cookie_test=tru# . CAIMEIJU (2009). Retrieved from http://www.caimeiju.com/for-real-estateprofessionals/tips-and-resources/trends-in-international-marketing/chinabecomes-worlds-second-largest-luxury-market.html http://yourbusiness.azcentral.com/fragrance-marketingstrategies-13736.html#author (no date). Böhm,A (2008). The Swot Analysis. Druck & Bindung：Books on demand GmbH, Norderstedt Germany. Jing,S.(2013)CHINAdaily. Retrieved from: http://www.chinadaily.com.cn/cndy/2012-08/06/content_15645884.htm
26