Marketing Strategies for the New Fragrance Product by Dior - Assignment Example

1. Introduction 2 1.1. Brief Outline of Category 2 1.2. Brief Outline of Brand 2 1.3. Brand Marketing and Positioning Strategy 3 2. Target Audience Profile 3 2.1. Customer Profile 4 3. The Competitive and External Environment 6 3.1. Situation Analysis 6 3.1.1. Regulatory Environment 6 3.1.2. Competitive Environment 7 3.1.3. Internal Environment 7 3.1.4. Conclusion: The Key Challenge 7 4. Overall Communications Strategy 7 4.1. Communications strategy 8 4.2. Integration 8 5. Advertising Campaign 9 5.1. Advertising Strategy 9 5.2. Channel strategy and Objectives 10 5.3. Media Mix, Reach and Frequency Objectives 10 5.4. Schedule 10 6. Other Elements of the Communications Mix 11 6.1. Strategy and Objectives for each additional element employed 11 7. Conclusion 12 1. Introduction The objective of this document is to present a marketing plan for the new fragrance product by Dior after analyzing the market, the competition and the targeted audience. Dior is an international fashion house with branches and stores all across the globe; it is famous for the beauty products it markets. The founder of Dior was an influential French fashion designer Christian Dior (1905-57). Dior the company gives us an amazing range of cosmetics and skin care products, which are renowned world wide among women who use cosmetics and skin care products and also among men for its few specifically designed products. Dior also delivers to consumers an exotic assortment of fragrances, along with other cosmetic products. Dior is a famous and one of the most celebrated brand name and many people acknowledge Dior’s brand power. 1.1. Brief Outline of Category Fragrances are approximately 30 billion dollar industry and expanding, yet fragrances are one of the shabbiest performing sectors of the cosmetics industry. The reason is that market is cluttered by varying new range of perfume products. It is very difficult to promote brand loyalty amongst consumers when as many as hundreds of new products are being launched in market every year. Dior has an edge in this regard as it has already earned brand recognition and loyalty amongst consumers through its skin care and beauty products. People especially females will definitely identify with a fragrance product by Dior and if properly marketed and promoted the product can be a long term success. 1.2. Brief Outline of Brand A new fragrance for women is being introduced by Dior in Australia. The name of the fragrance is Violet and it is exotic as well as sensuous, and exudes femininity. The product Violet for Women promises high quality and customer satisfaction at par with other products by Dior. 1.3. Brand Marketing and Positioning Strategy The price might be an issue for students. But we can promote it as the best present a man can buy for his woman so that fiancées, boyfriends and husbands can indulge females who might not have money on their own. The way to entice target audience is to bring something new and market it as such. There are plenty of violet scented perfumes in the market so we have to highlight why is ours different; emphasize the ingenuity that makes it stand out. 2. Target Audience Profile According to the Roy Morgan graph presented in Figure 2.1.1 the purchase intentions of woman on cosmetics aged 18-34, the index value of 165 means that woman aged 18-34 are 70% - 75 % more likely to purchase women’s cosmetics then it s nearest rival women aged 50-64. In Figure 2.1.2 the graph shows that women in the age bracket of 18 to 34 are more likely to go for fragrances and form the largest chunk of the perfume market. The research presented through the Roy Morgan graph shows the target customers for the advertisement campaign. 2.1. Customer Profile Young, hip women, trendy and fashion conscious, students, working women, independent women, young house wives and mothers. Its appeal is not restricted to only working women but has a general appeal. The brand has world wide repute so that contributes. Anything new by the brand arouses curiosity. Women of this age group are likely to try out new things. They also want to be the early adopters, the ones to tell others about this “oh this new cool perfume, a must-have you know.” Marital status and education level of these women can also differ. They can be single, divorced, in relationships, single moms or corporate wives. The factor that binds them is the need to look good and be with-it. They all want a perfume that can keep them fresh and fragrant despite their busy and hectic routine. The name suggests a flowery, fresh and refreshing scent that will appeal to a lot of women. Agreed that a number of women do not like typical flower scents but it can be marketed as a flower scent with a twist or difference to appeal to a larger demographic. The perfume is a bit pricey yet this is a double-edged sword. It can be marketed so that the target audience knows it is expensive but also worth the money they will spend on it. Firstly the brand itself will do the trick. Then we can emphasize the factor that if you put it on in the morning, it will last you through the day so in fact you’ll be getting your salts’ worth of bargain. The price might be an issue for students. But we can promote it as the best present a man can buy his woman so that fiancées, boyfriends and husbands buy it too for women who might not have money on their own. The way to entice target audience is to bring something new and market it as such. There are plenty of violet scented perfumes in the market so we have to highlight why is ours different; emphasise the ingenuity that makes it stand out. Though it may sound naïve but the bottle matters a lot too. True that a great scent does its own marketing but attractive packaging doesn’t hurt; in fact it is good for business. It would be great if we could have this perfume in a variety of sizes and for different purposes, e.g. for the elaborate dressing table, for the hand bag and also for travel purposes. This easy and varied access is bound to enhance sales. If possible we can have 2 sub ranges of the same perfume: the lighter one for the day and a bit heavier and sexier one for the night. The ads should use colours and words that are positive and lift ones spirits. 3. The Competitive and External Environment 3.1. Situation Analysis The average economic growth rate has been around 3.3% for more than a decade now. The economy of Australia stands on solid foundations and with the common ups and downs is expected to show stability in all economic factors as well as indicators of strong economy. With a thriving and bursting economy, the consumer behavior is bound to remain positive and encouraging. The segmentation of population for the marketing of the product will help in the targeting of consumers. Around 67.3% of Australian population is aged between fifteen to sixty four years. While the median age of women as established in the statistics of 2006 is 37.7. Since for the marketing of beauty products and cosmetics, the target is the women population, the Australian market is huge in this regard. The fragrance business is a huge one in Australia and the markets are loaded with various kinds of perfumes. Almost all famous and internationally known brands are making it big in the country which is a reflection of the inclinations of the female population. The market for cosmetics, beauty products and perfumes is a huge one; so much so that even fake perfumes are making their way into the markets and selling in large amounts. 3.1.1. Regulatory Environment Australia is a very sound and developed economy and one of the main stabilizing features of Australian economy is the ease of setting up business in the country. With least possible barriers to the establishing of a business, two days is the maximum time frame that is required to set up a business here. The environment of the market sector is very conducive to the prospects of investments. 3.1.2. Competitive Environment Many international brands are marketing their perfumes in Australia. Agent Provocateur, Apparition, Flourish, Jean Paul Gaultier Ma Dame, Noa and Opium are some of the top of the class products that have caught the fancy of the Australian women. Marketed through websites and many other mediums, even free packages are being used to entice the customers and compete from the other rivals in the field of perfumes. Since it is a big market in the country, the competitors in the field are active too. 3.1.3. Internal Environment Being one of the most respected and followed brand around the world, the name itself is a powerful advertisement for the product. While new customers can be sought, market can also be built on the existing following. 3.1.4. Conclusion: The Key Challenge One of the key challenges is the highly competitive market that already has some brand loyalty and customer following. The promotional campaign will also be launched side by side an already brimming advertised market. the promotional campaign and its competitiveness will go a long way in successful marketing. 4. Overall Communications Strategy Dior has an international presence and it can be utilized fully to attract consumers; with a well-planned and well-executed communications strategy the Violet fragrance for women can be launched to enthusiastic female consumers who are eager to try out the new offering. Multiple communication channels are available nowadays and in developed countries like Australia on an average more people are exposed to different communication mediums like print media, television campaigns and new tactics like telephone marketing and internet marketing. After thoroughly analyzing the targeted audience the best way to market the new fragrance by Dior i.e. Violet will be through Integrated Marketing Communication (IMC). 4.1. Communications strategy An Integrated Marketing Communication strategy used to launch the new fragrance will require a thorough understanding of the needs of the targeted audience; as established in previous passage target audience of the product is females of age group 18 to 34 years. A simple approach to adopt a marketing strategy to promote Violet fragrance is to conduct a comprehensive study about the prospective female customers (i.e. the targeted, ideal female customer) and analyze all media channels that can be used in order to reach to them. Integrated marketing also deals with managing media so that well-coordinated promotional activities will generate a higher impact when combined. 4.2. Integration The important thing to keep in mind while using a media mix to launch and promote product is to deliver a single message through adopting different mediums. A synergy between the over all communication plan can be achieved by this. Consumers should not be exposed to or misled by different messages on different medium for the same product i.e. Violet. The various elements of communication plan can achieve synergy by using a unified message to be delivered to audience through all the mediums of communication. 5. Advertising Campaign The most suitable media selected for advertising of the product are television and magazine. Television is the most effective and powerful yet most expensive medium for advertising; it ensures that the message is delivered to maximum number of audience with buying power, and brand message is presented in a most attractive manner. Similarly huge chunk of expected consumer are fashion savvy and want to stay on top of fashion trends through different fashion magazines and an attractive ad placed strategically in such magazines will also be fruitful. Also timing the launch of brand with holiday season like Christmas, New Year can also go a long way. 5.1. Advertising Strategy Dior represents luxury and sophistication, and therefore in order to promote a fragrance by Dior the advertising campaign should propagate the same message, the message of luxury and sophistication. Violet, fragrance for Women is a bit pricey yet this is a double-edged sword. It can be marketed so that the target audience knows it’s expensive but it’s worth the money they will spend on it. Firstly the brand itself will do the trick. They we can emphasize the factor that if you put it on in the morning, it will last you through the day so in fact you’ll be getting your salts’ worth of bargain. Though it may sound naïve but the bottle matters a lot too. True that a great scent does its own marketing but attractive packaging doesn’t hurt, in fact it is good for business. It would be great if we could have this perfume in a variety of sizes and for different purposes, e.g. for the elaborate dressing table, for the hand bag and also for travel purposes. This easy and varied access is bound to enhance sales. If possible we can have 2 sub ranges of the same perfume: the lighter one for the day and a bit heavier and sexier one for the night. 5.2. Channel strategy and Objectives Through the medium of Television and fashion magazine, the savviest and fashion conscious consumers are to be targeted. The objective of the campaign is to capture their complete attention. This aim can be achieved by placing the ads strategically at times of maximum viewership and by acquiring page in the most top-of-the-line fashion magazines. 5.3. Media Mix, Reach and Frequency Objectives Different type of media can be used to reach the target population of females in Australia. We have number of media options available to us; namely print media, newspapers, magazines, etc. Then we have television commercials which although are expensive but hold the highest rating for reach and effectiveness; we have internet which is quickly emerging to be as effective and far reaching as television. After understanding the various aspects i.e. advantages and limitations of each media type we can conclude that no single media would be able to reach the target population individually. In our case we are targeting female population which includes students, working females, house wives and miscellaneous other categories as well. Keeping that in mind and considering specific patterns, the most feasible media mix might include television commercials and fashion magazine. Another important factor that influenced the preparation of media mix is the budget constraint. Although Dior is a rich, high profile luxury good producer, it is launching product in Australia only. So advertising in local televisions and local magazines will be most beneficial. This design of media mix will ensure maximum reach and frequency. 5.4. Schedule The televisions ad should be timed to reach the targeted female viewers at their most self-indulgent mood, at a time when they are relaxing in the comfort of their homes and thought of luxury good like Dior’s fragrance will appeal to them more, or associate the buying of new fragrance with some event like holidays etc. Similarly placing the ad along side the latest trends section will appeal to females who are always interested in staying in vogue. And associating Violet for women with latest trend will definitely have a desirable impact. 6. Other Elements of the Communications Mix Different elements can by added to the media mix of television and magazine advertisement campaign; like personal selling, sales promotion, direct marketing, PR, sponsorship and POS etc. Introducing these components of promotional mix can increase sales of Violet tremendously. 6.1. Strategy and Objectives for each additional element employed Introducing the product at shopping malls and giving out free samples can increase interest among consumers, as well as boast sales; not to mention, this will make Dior, an international luxury brand name more accessible for general public. Similarly by using events and high profile parties as launching pad, the fragrance can be promoted amongst the rich and fashion savvy. Free gifts can be offered with the purchase of Violet fragrance by Dior. Maybe some other Dior product can be given away with Violet, or conversely samples of Violet can be given away with the purchase of other famous products by Dior. This will help introduce the fragrance amongst women while giving them a feel of the product. Introductory lower price can also help sell Violet initially; as Dior is associated with upper class elite of the society, with such tactics general public can also buy Violet and feel luxurious and chic. The two most appropriate communicational mix elements that can meshed with our existing media mix can be personal selling that is giving out promotional samples at different outlets and shopping malls (thus reaching consumer at a time most ripe); secondly, giving out free samples of Violet can induce sales and popularity of product. 7. Conclusion Violet, fragrance for women can become the latest rage amongst Australian women. The need is to promote the product with a good media mix, and through such sound advertising strategies, that Violet can find its way to the dressing tables of elite and working class both. By opting for only television and magazine as advertisement we (Dior) can cut down on promotional cost; and this saving can be channeled to add communicational mix elements to our integrated marketing communication (IMC) strategy. The punch line of this marketing plan is to make Violet, fragrance for women a symbol of status, style and luxury; and give females belonging to varying classes the idea that they can obtain it, and with this, they are getting a social uplift and validation. EXECUTIVE SUMMARY This detailed plan will inform you about the most realistic way of promoting and advertising a women’s fragrance, Violet by Dior. After a considerable amount of research into the market, the target consumers were chose as women aged from eighteen to thirty four. The women of the selected age group have this natural and innate desire to be at the top of the fashion echelons and therefore they can be targeted through a specifically designed marketing campaign. Targeting them through fashion magazines and television prime times at their most relaxed moods can go a long way in giving the required boost to the brand in the market. By producing the perfume in different shapes and for different purposes, the higher ups and common buyers can be targeted at the same time. Presenting the perfume as a symbol of the fashion height will make it the most desired item on the market. Read More