Professional Practice - Fragrance Marketing Report

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FRAGRANCE

EAU DE PARFUM


Rajvina Barker BA (Hons) Fashion Design and Technology Professional Practice Marketing Report 2015


LADY GAGA - FAME GUCCI - GUILTY GIORGIOARMANI ARMANI CODE EMPORIO ARMANI DIAMONDS YVES SAINT LAURENT - ELLE DOLCE & GABANNA POUR FEMME & POUR HOMME DIOR - MIDNIGHT POISON GIVENCHY - DAHLIA NOIR PACO RABANNE - ONE MILLION


CONTENTS

EXECUTIVE SUMMARY FRAGRANCE & ADVERTISING KEIKO MECHERI: ABOUT THE BRAND BRAND ANALYSIS & OBJECTIVES SWOT ANALYSIS: KEIKO MECHERI MAIN COMPETITOR: SERGE LUTENS THE FOUR P’S BRAND ONION COLOUR PALETTE CUSTOMER PROFILE POINT OF DIFFERENCE COMMUNICATIONS STRATEGY & PROMOTIONAL PLAN CONCLUSION APPENDIX BIBLIOGRAPHY


EXECUTIVE SUMMARY This report will discuss the uses of fragrance, brands and selling techniques, with a particular focus on a niche brand, Keiko Mecheri. Fragrance is a substance that evokes a feeling, creates an atmosphere and tells a story. It has become a daily necessity to many men and women around the world. Perfume or aftershave is a personal element that is used to reflect personality and identity, to increase confidence, attract others or based on occasion. A scent can be a reflection of a person’s individual style, but it also makes a pleasant gift for another, providing you understand their style and preference.


FRAGRANCE & ADVERTISING

“the vast majority of perfume advertisement make no effort to describe the scents they are promoting� Following on from their already successful clothing and accessory lines, luxury brands have discovered that the way to increase sales, if only by a small amount, is through launching a fragrance of their own. Knowing that many people will buy a fragrance or product with the official name or logo of a well-established company encourages the process and benefits both the brand and the customer. The brand’s concept or story must be clear to ensure target customers are intrigued and therefore, willing to purchase their products. Of course, the design element is what initially attracts a customer, but the scent is what results in a sale. In order for a brand to be successful, they must ensure they promote and advertise their products in a way that will attract their target customers. It is hard for a niche brand to pay for large amounts of advertising if they are just beginning their journey compared to well established brands who will have enough money to spare for advertisements in magazines, newspapers, online, billboards and through television and radio stations. These are the obvious ways but people can also increase sales if they pass on positive feedback in relation to a brand and their products either in person of through using social media sites, this in itself is another form of promotion.


There are so many elements that are considered when creating advertisments, such as layout, composition, colour scheme, text, quality and theme. Working alongside other components, the aim is to allure people into wanting to try or purchase products, encouraged by the use of celebrity endorsement, branding and giving people what they think they want. The strategies needed to ensure an advertisement is successful is to use human psychology. One way to do this is by understanding what it is that makes a person want or need something. Not only that, but focusing on specific ideas such as ‘passion, femininity and masculinity’ can appeal to particular types of people, their situations and occasions. Knowing what message you would like the advertisement to convey is important, as this is how you can engage with the viewer in a way that they can relate to the subject.


Based on a survey with 53 responses (See Appendix) from male and female’s, it is clear that: • The majority of people aged between 18 to 27 wear fragrances daily. • Mass-market fragrances are more favourable in comparison to the niche market. • The general amount spent on a fragrance is between £20-£50. • Most people are persuaded to try products through television and radio advertisements. • Department stores appear to sell the most fragrance products in comparison to ‘High-end/Luxury stores’, ‘Online’ or ‘Other.’ • Out of a selected amount of fragrance bottle designs, ‘Sophisticated/ Sharp’, ‘Classic’ and ‘Contemporary’ seem to be of most importance. • A ‘Musky’ scent is preferred over ‘Sweet,’ ‘Fruity,’ ‘Floral,’ ‘Citrus’ or ‘Other.’


KEIKO MECHERI: ABOUT THE BRAND

Keiko Mecheri is of Japanese origin. Having grown up in the United States and furthered her studies abroad in Europe, her inspiration originates from multiple sources; influential artists, a diverse multi-cultural background and places she has visited during her extensive travels. The fragrances she produces today all showcase these significant experiences, ranging from her early childhood to her later adult life. The brand was launched in the 1990’s as ‘Bazaar des Senteurs’ in Los Angeles, selling scented body products and candles. 40 fragrances have been released since the year 2000. The liberty website sells 30 ‘Exclusive to Liberty’ fragrances, all of which are 75ml and are ‘Eau de Parfum’ which means the liquid is more concentrated, resulting in a longer lasting scent. There are a number of scents that are combined to evoke culture, memories, floral inspirations, imagination and a journey. A lot of thought is put into the creation of each perfume bottle from the shape and colour to the finest details, in this case being the text of the fragrance and brand name. Even the packaging is well thought out in terms of material use and colour scheme, which, if in a set, the visual aesthetic has to be carefully considered. Critics commonly compare the brand to Serge Lutens. Other competitors selling within the same price range include Comme des Garcons, Costume National, Creed, Nasomatto, Van Cleef & Arpels and Robert Piguet. The key ingredient that is continuously used in Mecheri’s fragrances is Vanilla, one of her most treasured notes. Her favourite scent of all is Rose. One thing that is carefully considered when creating the scents is the exact replica of, for example, the Jasmine flower. Only by working with the most experienced perfumers is this possible. Yann Vasnier is a perfumer who has previously formulated scents for luxury brands such as Marc Jacobs, Tom Ford and Donna Karan. Keiko Mecheri has been fortunate enough to work with this talented man to create truly unforgettable aromas.


BRAND ANALYSIS & OBJECTIVES

The object of the brand is to produce irresistible fragrances that unfold a story through layers of captivating notes and scents that have been combined to create perfect formulas. Promotional events take place in department’s stores in the UK, USA and Canada to release new products that are ready for sale. Customer experience around the Liberty store in London is pleasant for all who visit. The ground floor is where the perfumery department is located. As customer’s enter the store, they are instantly welcomed into a world of luxury. The atmosphere at first is similar to walking into Harrods or Selfridges but a lot less daunting for those who may find those stores overwhelming. The store itself is like a warehouse and is displayed to create a market type-shopping atmosphere full of colour, textiles, historical elements and ornaments. Keiko Mecheri’s products are displayed on a few shelves with this year’s collection in view as customers walk round. One thing that is different about stores, which hold niche market brand’s is that people spend a lot more time with the products whilst testing and discussing them. This may be due to the fact that it is a different type of fragrance shopping experience with products that nobody else has heard of, whereas stores such as Boots which hold luxury brand items, customers already know of them. Maybe the thought of discovering something new is what some people find to be exciting and personal.


SWOT ANALYSIS: KEIKO MECHERI Strengths Sold in established department store ‘Liberty’ situated in a wealthy area, Regent Street in London. Other lively cities include Los Angeles and Vancouver. Customers include those that return frequently to buy Liberty products such as essentials, furniture and gifts. Tourists are an added benefit to the brand, as they will want to buy gifts and souvenirs or purchase a brand’s product that they may not be able to find back home. Fragrances are also available to buy online so that customers have the option to shop from home using technological products such as phones, tablets and computers.

Weaknesses Not enough publicity or as well known in comparison to luxury brand’s that are recognized worldwide, for example, Prada, Armani and Gucci.

Opportunities Advertise to a wider audience through magazines and television if there is enough of a budget to do so as these strategies are extremely costly. Otherwise, consider writing a personal or brand related Press Release.

Threats A large number of luxury and niche brands to compete with.


MAIN COMPETITOR: SERGE LUTENS

“It is potentially a carrier for the imagination. Perfume is thick; it is poison and pure desire; it is eros in person.” Serge Lutens is a niche perfume brand based in Paris. His fragrances are sold in UK stores Liberty, House of Fraser, Harvey Nichols, Harrods, Selfridges and Les Senteurs. At the Liberty store and online, prices range from £50 - £149.99. He released his first perfume in 1981, for Shiseido, a Japanese hair care and cosmetics company. There are 35 fragrances available on the Liberty website, all of which are the same size, 50ml. Older bottle designs are very elegant and classic with elongated rectangular shapes but all have a circular dome shaped cap. The liquid colours range from yellow, orange, brown and beige to lilac, purple, red, green and peach. All will depend on the ingredients used and should reflect the scent and story of the individual product. Recent designs, starting from 2011 are more contemporary with a clear liquid and glass exterior with the name printed in a more graphical and modern style. ‘Lutens’ fragrances have a strong personal touch and are designed for customers looking for authenticity, rarity and originality.’


THE FOUR P’S Product Bottle designs have been experimented with and differentiate from one another depending on the collection, concept and time period. The overall style of the brand and the bottles would be seen as sophisticated and sleek with a dark, rich twist. This is obvious from the dark brown/black and deep purple tones on some of the exteriors. As with most brand’s, there is a simple classic style with the transparent bottle and tinted liquid to appeal to the customers that may want a practical, elegant and effortless design.

Place Keiko Mecheri’s fragrances are sold in US stores ‘Four Seasons’ and ‘Luckyscent’, ‘The Perfume Shoppe’ in Canada, and ‘Liberty’ department store in London.

Price Fragrances price ranges from £50 - £249.99 as seen on the Liberty website. This would categorise the brand as being mid-market level due to selling their products at fairly reasonable to a higher price point.

Promotion Launching new collections and releases is something that Keiko Mecheri manages herself with the in store location adapted to represent the theme and story which reflects the latest creations.


BRAND ONION

BRAND IN ACTION

LIMITED EDITION PACKAGES

BRAND PERSONALITY NICHE BRAND

BRAND VALUES

ESSENCE CULTURAL INFLUENCES

IN DEPTH KNOWLEDGE AND EXPERIENCE

UNIQUE SOPHISTICATED PURE

LUXURIOUS ELEMENT

FRAGRANCE LAUCH EVENTS

PRICES VARY - REASONABLE TO HIGH

MORE PUBLICITY

SPECIAL OFFERS/ DEALS

BOLD, YET DARING AND ELEGANT


COLOUR PALETTE The main colour scheme for the brand appears to be black, deep purple and gold. The black and purple are the dominating tones used for the bottles, with the rich gold detail being the key identity of the brand name, fragrance title and description. The positive’s to a brand keeping to a specific colour scheme is the ease of recognition by a customer, which is also known as brand identity.


CUSTOMER PROFILE Based on the locations and prices of Keiko Mecheri’s fragrances, it is clear that the target market is sophisticated yet daring customers who can afford to buy more expensive products, whether it’s for themselves or as a gift for others. London carries tourists from all over the world; so featuring these products in Liberty is useful for niche brands due to the amount of exposure they will get through passing customers.


POINT OF DIFFERENCE Keiko Mecheri leads a natural journey and process that is combined with inspiration to create scents that are unique and enduring. The individual wearing the fragrance is taken to another world, a creative one that allows them to be or do whatever they wish. The products themselves are designed with completely different styles and intentions, unless they are part of a collection. While many luxury brands tend to use a contemporary and practical design, niche brands are open to the opportunity of creating something with a bit more individuality with eccentric or unusual styles.


COMMUNICATIONS STRATEGY & PROMOTIONAL PLAN Keiko Mecheri communicates through social media accounts on Facebook and Twitter. Through using these, consumers can access more information about the company and be the first to know of her current or upcoming product releases, updates, events and promotional offers. In order to keep a vast amount of customer’s keen to try new products, fragrance launches must always take place. It would be beneficial to the brand if the events take place in busy tourist locations and a wealthy area. This way, you are more likely to appeal to a number of passing customers and keep the products selling at a continuous pace. Releasing limited edition fragrances or enforcing promotional offers during seasonal holidays will encourage customers to test new products and potentially spend an acceptable amount of money. For example, showcasing mini collections of products, clearly stating that they would be ‘perfect for a loved one,’ will encourage expenditure. The bottle design and name are extremely crucial as these are the first things a potential customer will notice. If they are drawn to a specific style, only then will they move onto smelling the scent of the fragrance. If the name is easy to pronounce, spell or differentiates from other styles, one or all of these components will make it memorable. Scent is something that can only be experienced when the product is being tested. Brands never choose to ‘describe the scents they are promoting.’ What luxury brands do focus on is the use of celebrity endorsement – using current well-known models and celebrities to entice audiences. This primarily helps the brand to make even more of a profit than if they were to just use their name or logo.


Samples of fragrances are another great way to appeal to customers, especially when they are given small testers for free. For this reason, they will collect as many as possible. By having the scents with them, they are more likely to want to purchase at least one due to spending so much time with the products and may find a specific one that they wish buy if they run out. Promotions, advertising, publicity and sales promotions are used so that companies can target the right customers. ‘The promotional message must be convincing and achieve the desired effect.’ All forms of advertisements are used to increase brand awareness. That includes television, radio, printed articles and online social media. Through this type of promotion, these brands and their products will constantly be filtered through to the public with words and visuals so that they become well aware of the names. This is the way that large brands can promote themselves using funding from customers expenditure on previous products. Smaller brands do not have the budget to spend on advertising in this way, so instead they use Press Releases, displays and pamphlets to promote themselves. They also ‘use promotions to inform consumers about price, product features and outlets that sell their products.’ The whole point of promoting products is to intrigue people so that they will try them. It is also used to ‘build a loyal customer base, which leads to greater sales and profits.’ Manufacturers with more money and access to technology use this strategy to feature in store videos showcasing products, how they work and where they can be purchased – this is usually set up nearby the products themselves. Some companies use a ‘frequency program promotion’ to reward their customers, providing they return to buy more products in order to gain or receive further rewards.


CONCLUSION The only way a brand can succeed is firstly having the experience of knowing how to run their own business and of course having in depth knowledge of the field they wish to work in. Without the correct background and funding, a company will struggle to get the reputation that they may be aiming for. The main goal for any company is to gain recognition, whether it’s from their target audience, worldwide or just enough to keep the business running. It is clear that the target market of a product is based on the brand, packaging, price and form. With fragrance being a popular product worldwide, there’s no wonder many brands choose to take this selling route in order to increase their money intake. The strategies needed to ensure an advertisement is successful is to use human psychology. One way to do this is by understanding what it is that makes a person want or need something. Not only that, but focusing on specific ideas such as ‘passion, femininity and masculinity’ can appeal to particular types of people, their situations and occasions. Knowing what message you would like the advertisement to convey is important, as this is how you can engage with the viewer in a way that they can relate to the subject.


APPENDIX






BIBLIOGRAPHY Liberty(2014)[online]Available from:http://www.liberty.co.uk/[Accessed 23 November 2014] (2014)Les Parfums Keiko Mecher[online] Available from:https://www.facebook.com/Les.Parfums.Keiko.Mecheri @KeikoMecheri[online]Available from:https://twitter.com/keikomecheri Adam and Franco(2014)LuckyScentInc[online]Available from:http://www. luckyscent.com/[Accessed 23 November 2014] (2006-2014)Fragrantica[online]Available from:http://www.fragrantica.com/ [Accessed 23 November 2014] (2014)SurveyMoney[online]Available from:https://www.surveymonkey.com/ summary/G2tIk13ETkLKbr9DGo8cY1IqrJnX7dXDXhw8ChiTC1Q_3D[Accessed 23 November 2014] (2014)Pinterest[online]Available from:https://www.pinterest.com/[Accessed 23 November 2014]


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