INTRODUCTION
The Product
The first Maybelline Fragrance will be a female perfume fragrance. This will be in line with most of the company’s products that are famine; in addition, the fragrance will be named after the founding sister Maybel from whom the idea of starting a cosmetics company emanated. It will be a flirty fragrance composed wonderful flora notes making it a great fragrance for summer. It will thus bear a pleasant combination that is youthful and sweet, making it a cheeky and feminine fragrance. The package will be in gorgeous transparent gold glass bottle, making a must have perfume.
Target and product description
The Perfume targets modern women with a sense for style met with a great fragrance. The organization has in mind in developing the perfume a good fragrance is the key to success in any product. A good fragrance makes using a good .product a great experience. Thus, a product must deliver on its intended function, with the winning fragrance establishing differentiation at the shelf and giving consumers a basis for their purchase choice.
Therefore, the company intends to come up with a signature scent fragrance, or a signature accord as a strategy to build brand recognition and ultimately brand loyalty. The company looks to produce a product that gets the consumer hooked on how great the fragrance smells, with a decent smell, calming, sexy, and last for hours, not too expensive and in a pretty bottle. This is in line with the organization’s brand mission, that is, to give women unique, American type confidence to achieve personal best.
Background on Perfume Industry
Perfumes dates back almost 4,000 years ago, and they were used for seduction purposes or religious ceremonies. However, today performs are a means of beauty and seduction today, it recalls certain memories, positive or negative to the people who smell them. Thus, the perfume maker develops the bottle, perfume, and textures as a work of art. Fragrances are a $5 billion industry marked by huge increases in the number of fragrances produced in the last 20 years. Today, designer perfumes and colognes have become a luxury product, with the prices even being set as high as hundreds of dollars per ounce. The average price for a designer perfume runs from $30 to 90$ per once, and in some cases the price is even higher.
According to Petersson (2013), success in perfume fragrance sales depends on the marketing strategies employed, thus, making marketing the most import aspect determining whether the product succeeds or not. Fragrances are used as the basis of the market, allowing the use of creative advertisements techniques to make fragrances seem happy, fun, sexy, exiting, and so on and so forth. Therefore, the perfume industry relies heavily on celebrity endorsements on brand advisements.
THE MARKET
Male and Female Perfumes
According to McIntyre (2011), the difference between male and female perfumes lies in the concentration of oils in the fragrance. Theses oils are called juices, and the highest concentration of juice is in perfumes. The higher the concentration of juice, translates to how long the fragrance will last, and the less the user needs to apply.
Perfumes consist of 15-30% juice concentration of perfume essence and they are the strongest fragrance available, hence, requiring users to apply less, and the fragrance lasting longer to an average of 6 hours depending on the individual’s skin types. When it comes to branding, masculinity and femininity are taking to the extremes, with brand exaggerating their respective portrayals. The male world of beauty is materialized by violence and primary urges, on the other hand, female beauty takes refuge in the refinement of the boudoir, a bower of seduction and femininity.
These different trends are illustrated through the different perfume packages, for example, fantasy animals and creatures, ornaments, girlishness, boudoirs characterize women packages, and romantic follower scenes are displayed. Example of such leading female fragrances includes Arpel, by Nina Ricci, Daisy, and Lola by Marc Jacobs, Chantal Thomas, Fancy Love, and so on and so forth. On the other hand, men perfumes are given representations of sports and expensive symbols of masculinity such as football, identity badges, fists, tennis rackets, and sports cars were themes used in scents such as Diesel’s fuel for life (McIntyre, 2011).
The packaging in fragrances should consider the consumers are individuals with multiple aspects. They reveal different facets of the personalities throughout a fragmented day, this may include, a mother or father, work colleague, or even sensual lover with their packaging reflecting this lifestyle evolution (Petersson, 2013). Therefore, the Maybelline brand will need to discover their packaging from different angles before fully understanding and suggesting the appearance of a distinct shape and feeling; it will have to go beyond that first glance to participate in the emergence of concepts.
Fragrance Market Organization
The fragrance leads the global cosmetic sector, with France being the world leader in this highly competitive field, with perfumes representing the fourth sector of the French economy. Two-third of the hexagonal cosmetics market is represented by the fragrance industry with turnovers rising by 3% in value by 2011, which is equivalent to a 2.8 billion Euros turnover.
These results are attributed to good Christmas sales, marking a decisive period that accounts for at least 20% of the annual turnover in the industry. Over the last decades, the French fragrance has turned to be highly competitive. For instance, in 1994 new launches into the perfume market represented around 100 perfumes and 2004 the market represented 300 additional perfumes marking a 200% increase. On consumption matters, the French purchase represents an average of 205 Euros per year for perfumes, hygiene, or beauty.
The fragrance market by demography more than 75% of men and 90% of women by perfumes. By olfactory structure, seven families of perfumes exist. Women perfumes are mostly flowery and sweet, whereas men perfumes are more leathery and woody, unisex fragrances are light. By brands, there are a variety of brands, which include luxury fashion brands for example the French historical brands Chanel, Jo Malone, and Christian Dior to mention just a few.
Other brands are celebrity brand perfumes created by stars such as David Beckham, Britney Spears, or Lady Gaga. Perfumes are also categorized by range in their diverse market. Niche fragrances represent the premium range of the fragrance market, comprising of uncommon scents coming from advanced researches explaining their high price ranges. On the other hand, mass fragrances represent the low range, where perfumes are sold in large retails (Petersson, 2013).
The middle fragrances are distributed through large retail composing colognes and low quality perfumes representing 15% of the global market. Selective stores that is, famous selective store, whereby the represent around 65% of the global perfume sales. Departmental stores receive upper and middle class customer, thus, brand owners usually own luxurious corners in these department stores and represent around 8% of the global fragrance sale.
Online shops offers all the number of online shoppers all the selective with the selective shop’s websites, where the consumers can purchase any perfume they want. A single online selective store website receives around 1.5 million visitors every month. In addition to the various stores are drugstores that represent about 6% of all perfume sales. They have a mid-price positioning between the selective shops and large retailers, and differentiate themselves through the sale of more skin care products (Petersson, 2013).
The Competition
The perfume industry has a competitive market, whereby no one firm has a dominant position, and the consumers are spoilt for choice while purchasing fragrances. Therefore, firms in the fragrance market each has a small market share, with only few barriers at the entry level, thus, allowing new business to enter the market if they belief they can make sufficient profits.
According to a research by the Global industry Analysts, the global fragrance and perfume industry is expected to grow to more $36 billion by the 2017, market growth is mainly fueled by the emerging markets and new consumer lifestyle trends that are granting an increasingly central place groom.
However, the market growth is not even, as it shows inconsistence across various geographic zones depending on the particular living standards, disposable incomes and the GDPs in these different geographical zones. Thus, the consumer demand for fragrances and perfumes depends hugely on demographics and lifestyle trends and in particular the important of luxury and status.
Perfume fragrance companies globally have all their steps of their industry’s value chain internalized apart from distribution (Lindstrom, 2005). The market operators focus on key activities that are, product concept, research and development, and marketing. Marketing and advertising initiatives helps in the creation of brand value, representing the industry’s main vector of competition.
Global players from the USA such as Procter and Gamble, Avon, Estée Lauder mainly dominate the market scene. From France we have L’Oreal and LVMH, and from Japan Kao and Shiseido. The undisputed market leader is L’Oreal. These global leaders look for synergies through the creation of partnerships with research laboratories, acquisition of small-specialized operators, and building of brand portfolios.
Competition in the industry seems to be turning fierce and growing, with competition taking place in different levels between companies. Competition is traditionally based on brand advertising and promotion strategies, combined with product innovativeness and pricing strategies. The main markets include North America and Europe both offering over half of the global sales. Asia pacific is catching up and it is a growth driver of about 150 billion euro global market. There is also a booming growth in Latin America, Middle East and Asian countries.
Understanding the Consumer and Identify the Trends
There is a tendency to make perfumes more approachable, there are emerging mass production lines in perfumery and consequently helping bring down the prices. Today consumers are more aware that some of the mass-market products can be delivered in the same quality as the luxury counterparts, this makes completion so fierce among the manufacturing companies.
Secondly, there has developed a new tendency for consumers to buy their products online. Therefore, the advertisement of online shopping, even for the premium consumers is a trend that cannot be ignored. For instance, in 2010 more than $11 billion worth of sales emanated from online transactions. This may be attributed to the fact that e-commerce outlets continue to expand their range of products and their websites explain in the smallest details and specifics owing to the different products (Lindstrom, 2005)
According to Lindstrom (2005), the third tendency is that people are looking for long lasting products. That is, the consumer is looking for good price-value ratio. Every in the cosmetic industry is subjected to this scrutiny and therefore perfumes are no exception, as consumers are now looking for long lasting, high creations, high quality and are able to last all day on the skin. There is also a new trend of sustainability. The producer while introducing a new product they needs to emphasize that their production was carried out in a way that was not harmful to the environment, created on the basis of advanced research technologies making them high quality.
Therefore, to be able to keep the product relevant and seize growth opportunities, the company will need to consider the following major trends; the internet has become more than an online purchasing tool, as it has become more embedded in most of the product purchase journey. Health related concerns and preoccupations have translated into new consumer behaviors and habits.
Social and environmental responsibilities are increasingly influencing consumer choices. Empowered consumers are now playing key roles in the design of consumer products. The final trend, the economic recession has deeply affected consumer behavior with its impact continuing to date (Kumar, 2006).
THE BRAND
Maybelline SWOT Analysis
Strengths
Maybelline Company is innovative. The organization is able to think outside the box. It’s through cosmetics skin care devices, hair, products, gifts, skin care, make ups, and bath and body products demonstrates an ability to venture outside regular products categories t o derive growth
A well-segmented portfolio, Maybelline has well segmented portfolio operating across different pricing levels. This has helped the company to drive sales growth even at economically challenging times.
Weakness
Some of the company’s products have been less dynamic such hair care products. This has contributed to a fall in market shares, and facing challenges from Unilever and L’Oreal. Additionally, the company has been less active in the natural organic category.
Opportunities
There are opportunities of expansion especially in the fragrance market. The company commands a large share market in the US with expansions to France. Additionally, China, Latin America, and the Middle East are prospective markets given their preoccupation to skin care.
Threats
Economic forecasts are weak due to Euro-zone dept crisis, economical crisis leading to reduced expenditure, and emerging markets such as China are reportedly cooling down. There is also growing competition in the emerging markets. Despite the fact that Maybelline has done in emerging markets expansions, competition is becoming more intense.
Business Performance
Considering the company’s financial analysis, Maybelline total sales have shown growth in the previous years. The company’s luxury division performed well driven by innovations and emerging markets growth. In addition, the company is continuing its global expansion with plans to open manufacturing hubs in Asia, and there are plans under way to expand to Latin American color cosmetic markets.
The company’s portfolio has lent it the flexibility to address diverse consume groups across the world. The company has different portfolios targeting global premium consumers and another targeted towards Western European consumers. The company’s wide spread global market presence will aid in the marketing of the new fragrance perfume being developed (Kumar, 2006).
Product Package Design
The company designers understand complete sensory connections are essential to the success of a product. These cues include visual, aroma, and tactile elements. Certainly, the packaging massage will look to connect to the position of the product through the packaging materials, the font style and the use of the right colors for the total product message is a top priority.
The concept of the color fragrance will be looking to connect with consumer. For example, if the package and claims are blue, like moisture benefits, then the product must smell blue. Moreover, the product will make this full circle sensory connection clear to the consumer. Thus, from the package, it will be benefits driven, as a superior fragrance, it will not only enhance the personal experience, but it will also be the primary signal to the consumer that the product will deliver its intended benefits (McIntyre, 2011).
Market Share
Despite the intense growth in competition in fragrance market, occurring in different levels between companies, Maybelline is an established cosmetics company. The company has vast market shares in North America and Europe where over half of the global sales is generated. In addition, the organization has expanded to pacific Asia, which is one of the upcoming markets and holds an estimated 150 billion euro market. The slow growth in Europe and North America will further reinforce the leaders’ efforts to find growth in the booming Latin American, Middle Eastern, and Asian countries (Lindstrom, 2005).
The Mix
Marketing is the most import aspect determining the success of a fragrance. Fragrances are the bases of this marketing. Thus the company will use skilled advertising campaign in the process create an image and convince the consumers that the product will make them happy, sexy, mysterious, and alluring.
Advertiser will among other channels of advertising use celebrity endorsed fashion brand fragrance. The company will also employ the internet as it pro-competitive. Majority of consumers today will find out about products from online sites regardless of whether they end up buying the product online or from the store. However, the Maybelline needs be of online competitions as the internet makes it easy for consumers to compare prices (Lindstrom, 2005).
Communication Strategy Focused on Public Awareness
According to Kumar (2006), advertisements represents in the modern consumption society an efficient mass communication way. Thus, the company will advertise through the mass media, social sites such as facebook on the internet and by use of billboards. The approach on the advertisement for the fragrance will be advertisement seduction as it has a solid base in the emotional line followed by the agencies copyrights and art directors who purpose is enhancing and delighting their receptors. It is possible to perceive verb-visual language, and its resources, channel indispensible elements inherent advertisement discourse and its seduction web, turning possible publicity the main purpose to be persuasion.
Conclusion
Fragrances will remain an excellent component in brand promotion. In the near future fragrances will play a more cohesive role to the final product making a better connection to the package graphics and product positioning for a 360-degree product concept. As the industry understand more of the consumer’s preferences, fragrances will also be fine tuned and better directed to the actual brand targeted consumer, and in the process enhancing, the products benefit claims.
References
Kumar, S., Massie, C., & Dumonceaux, M. D. (2006). Comparative innovative business strategies of major players in cosmetic industry. Industrial Management & Data Systems, 106(3), 285-306.
Lindstrom, M. (2005). Broad sensory branding. Journal of Product & Brand Management, 14(2), 84-87.
McIntyre, M. P. (2011). The Gendered Bottle: Meaning-Making in Luxury Packaging. Current Issues in European Cultural Studies, 343.
Petersson McIntyre, M. (2013). Perfume Packaging, Seduction and Gender.Culture Unbound: Journal of Current Cultural Research, 5.