Perfume Fragrances Online. Online Cosmetics Retailer - Essay Example

Perfume Fragrances Online Online Cosmetics Retailer [Lecturer] Perfume n Fragrances Online Online Cosmetics Retailer The company being established is a new player within the online retailing community, and more specifically operating within the cosmetics, perfume and fragrances sector of this retail market. The company is newly established and is focussing on the internet platform for a number of reasons including but not limited to the substantial reduction of overheads, based on the fact that retail venues, shops and locations are not specifically required to generate income for the company. In addition to this the company has identified a number of key issues, specifically within the online marketing, and search engine optimization fields that stand to benefit the company in boosting online sales via strategic brand marketing within the various products that will be sold via the online store. The brand of Perfume Fragrances Online will operate on a skeleton administrative staff, which includes staff for the processing of orders, based upon their wholesale accounts and contracts with established cosmetic companies, which do and will continue to provide drop ship services to Perfume Fragrances Online customers. This concept drastically reduces staff complements, and can realize a more significant contribution towards the marketing and brand strategy budget. This brand management strategy can be seen as focused entirely upon the internet opportunities that currently exist, and to this end the numerous platforms, such as social media marketing, pay per click and search engine optimization techniques and processes will be implemented in establishing the online presence of the company within the defined sectors and targeted segments of online users. The company is based upon an online store, or an "ecommerce" business model, that will retail fragrances, perfume, makeup and related cosmetic products to an international online audience and target market. The company further relies on a process known as drop shipping, within which no physical stock is held by the company, but is ordered via wholesale contracts which are in turn shipped directly to our customers. The main benefits of this process include not having to hold stock, as well as reducing staffing and retail associated expenses. A minimal staff complement is required to ensure that the orders are processed correctly through the companys system and forwarded to the drop shipping companies for fulfilment and processing directly to the consumer. Introduction to Perfume Fragrances Brand Strategy Although the company operates with a number of different, and prominent brands within the cosmetic industry, a differentiation as supplier of these brands on a cost effective and reliable basis is key to the brand management of the company. As Kapferer (2000) suggests, brand management strategies may be key to remain competitive, especially within the luxury goods market (p. 14.), of which the premium fragrances and products can well be described. The author further provides that one must be cognisant of product or range brand management (pp 356 – 360.), which are both relevant to our organization, based on the service aspect as well as the promotion of a variety of products, albeit on a secondary basis. Specific to the market and nature thereof a more refined approach to the logo and brand designed with respect to the perfume product will ensue, with a broader approach to the fragrance and related body products. Hence a two tiered approach will be taken in the design of the brand and logo at first, which will be followed with a consolidated approach for the brand in its entirety. The designing of the logo is based upon the mentioned refined view of the perfume sector, and a more bold approach of the fragrances, as implied by the connotations within which people view essentially the same end consumer product. To this end the perfume font is based upon a more classic and refined look, namely that of Bickham Script, whilst the Fragrance part of the logo will be made up of the Birch font. Figure One below illustrates the conceptualization of the logo, or representing the starting point of the logo and brand management process. Figure 1: Brand Logo The design of the logo may well be simple, however based upon the targeted search engine optimization strategy within the branding process, this forms the foundation of the planned strategy within this online marketing area. The brand tag line is further central to the key aspects of the branding strategy and differentiation process. The brand formation is primarily based upon Kapferer (2000) mention of the range brand strategy, whereby our single brand forms the basis of why consumers should utilise our online store for products that are widely available both online and in traditional retail outlets. The focus of the brand is on quality, consistency and customer service which is extended via the purchase of well known products and cosmetic brands through our online delivery and business model. One of the key aspects of building this brand is the customer experience, and as provided by the Harvard Business Review (1999) there is very little or nothing that can compete with the customers experience of the brand, which serves as motivation for the customer service aspect of the business. Branding Strategy Design A number of factors in and around the business concerned need to be taken into account when designing a brand strategy, specific to sectors and services within which the company operates. Based upon the fact that we will be targeting consumers that are aware of online purchasing, as well as those that quite often conducted comparative pricing scenarios, a differentiation aspect to the branding process should also accompany the brand image as such. The overall success of the branding strategy and the brand itself lies in the delivery of the value to the end user, as well as meeting expectations of the consumer in the delivery of the end product to the respective consumer within the quickest possible timeframe, pending the selection of delivery method. The consumer approach towards building this brand may well dictate a more functional approach is required, in associating the Perfume Fragrances Online brand with Practicality, Optimisation and Guarantee (Kapferer 2008); which is realized in the fact that the user interface will be uncomplicated, and easy to navigate, whilst retaining the air of quality, consistency and value for the user. Knudtzen, Heding and Bjerre (pp. 82-85 2008) further provide details of the Consumer based approach to branding, which is essential to leveraging brand equity amongst consumers and existing customers, to this end the focus remains upon what our customers and potential customers would like from an online retailer such as this and the goals and objectives to meet these demands, whilst building the brand. Basis for the brand strategy and development specifically around the consumer is that of brand loyalty and brand attitude, specific to the service, range and consumer experience that will be created via the online ecommerce store. In addition to this a more flexible and adjusting approach will be followed in meeting the changing demands of the cosmetic consumer, Michman & Mazze provide that by consistently adapting and adjusting to your market and desired demographic, the loyalty of the consumer will be enhanced, and will be of specific importance once these consumers become so called "affluent" (p. 20 2006), whereupon one would like to retain their business and custom. This is further extremely relevant when dealing with specific niche markets, which is the intention in line with the search engine optimization strategy of the brand. This in turn has a direct bearing upon the impact of the internet, as this is the platform that will be used to market the brand and products, hence if it was not for the internet, the business model, and therefore the brand would not have the opportunity or the potential opportunity to grow, or even exist. Internet Impact and Strategy In order to justify the business model, as well as the brand strategy in this particular exercise, a holistic online campaign has been identified, utilizing key aspects within the online environment to launch, market and leverage the brand accordingly. The fact that the company is an online based retailer further impacts upon internationalising the brand, and this is taken into account in identifying key initial markets prior to specific geo-targeted branding campaigns. The brand will take advantage of a number of issues that exist by virtue of a well defined online strategy, which will culminate from a search engine optimization strategy to realize goals of reaching top positions within the search engine results pages, within the three main search engine providers, being that of Google, Yahoo and Bing (MSN). Efforts within this strategic discipline include the analysis of commercial terms that lack competition within the major search algorithms, and therefore offer an opportunity to realize top ranking positions within the search engine rankings. The use of social media offers a significant in road in reaching specifically targeted consumers, via the likes of Facebook, Twitter and mySpace to name a few. It must be noted that very specific demographics are available via these platforms when seeking to target these consumers, this is realized by the specific targeting options provided by Facebook ads, as an example. Social media will in fact play a central role to the brand strategy of Perfume Fragrances, largely based upon the fact that we will be providing online solutions for those seeking to purchase perfumes, fragrances and cosmetics via the online methodology. The utilization of social media stands to benefit the company in creating a specific online presence within the defined target market, which for all intensive purposes encompasses a cross section of various demographics and pertains to those that utilize the internet for social, as well as comparative shopping purposes. Figure 2 below reflects the usage of social media channels for specific branding, and marketing opportunities. Source: Websudasa Blog (http://www.websudasa.com/blog) Figure 2: Social Media Application for Branding Analysis of the map above provides additional opportunities of traffic generation for the online store, as well as the branding component via the "Branding, Social Networking and SEO" activities mentioned above. This figure further represents the opportunities that exist within using the internet as a branding and retail option for Perfume Fragrances Online. The fact that this brand will only operate online, one should take into account that this is not a so called "dot.com" brand (Kapferer) per se, due to the fact that a mixed retail and online approach is essentially the underlying business model, however the strategy for branding and brand equity is to take advantage of the online world, and media channels for exposure and marketing in general. Co Branding and Brand Confusion As previously stated the brands that will be marketed will not necessarily be actively branded, as much or as intensively as the overall Perfume Fragrances Brand, which will be branded as a supplier and provider of these fragrances and cosmetics. The key differentiating factor here is that the company is a supplier of existing brands, which will strive for better pricing and service, as compared to competitors, both online and traditional retailers, by offering better pricing and fast delivery options. The co branding issue will not really be entertained here, from a direct perspective but rather inadvertently via the mentioned process of search engine optimization and utilization of low competition keywords that currently lack significant competition within the online marketing realm. The necessity or opportunity of co branding is accepted and should not be foregone, as according to Kapferer (p. 166 2008) the necessity and conduct thereof can provide significant growth opportunities, however a key barrier to co branding exists due to the fact that the company is utilising what can be seen as a direct competitor as the logistics supply chain to our consumers. Hence the supplier or suppliers in question form the link between manufacturer of the brand and ourselves and hence a co branding agreement or exercise with this provider would defeat the object of our efforts of brand building and equity. It should rather be entertained in possibly seeking such an arrangement with the manufacturers directly, in view of the business and distribution model that we have selected for this company. Once the company has grown sufficiently, and established the targeted online presence as well as brand loyalty can a co branding exercise be fully entertained with the view of launching an in-house type product with a perfume or cosmetic manufacturer, at that point in time growth of a distribution department will need to be facilitated. Therefore the growth impact of such co branding activities can be illustrated, albeit on a forecast basis. Within the starting up and establishment of the business, no co branding will be undertaken so as to clearly establish a complete brand within this very specific sector and market, which will therefore eliminate any brand confusion issues, whilst allowing the company and marketing efforts to establish the brand in accordance with the defined strategy. Internationalisation Although internationalisation offers significant opportunity for growth (Kapferer 2000, Buckley 2002), based upon the chosen model of the business as well as the nature of the internet, which can be viewed as a global platform the initial branding will focus upon the United States market, based upon the source of shipping via the mentioned distributing partner, which is via New York, and more specifically Long Island. This coupled with the fact that the US shiping option is the cheapest ensures that the prices remain competitive. Although initial research has revealed that even with higher shipping rates to international destinations outside of the US, the prices of marketed products remain highly competitive. One of the main dangers of brand damage here is the possible imposition of any customs or excise duties that countries other than the US can impose upon such purchases, which is completely out of our control, and in order to negate any possible brand damage here an extensive education or notification of such possible surcharges should be marketed to international prospective customers. Given the opportunity to grow and develop on a generic basis will serve as motivation for expansion, firstly to distribute from our own premises, and then expand on an international and geographic basis. Overall Online Strategy Therefore the issue of branding here has to be taken into account from two separate and distinctive viewpoints. That includes the view of an online entity, which offers more freedom from a retaining perspective in not being specifically limited to a single geographic location, as well as not realizing the related retail expenses of rent and distribution costs. As per the suggested social media channel utilization, concerted efforts will be made via these online platforms, from both a name awareness campaign to that of branding via the various social media platforms available. Specific search engine optimization strategies and techniques will ensure that the company consistently features within the first page of all major search engine results pages, starting with lower search competition fragrance brands and working up to the more competitive brands and products. By consistently featuring within search results has an impact upon branding in its own right, as the company name is constantly viewed by people searching for these products, and by featuring consistently therein so too will the Perfume Fragrances Online name become synonymous within searching for these products online. Specific targeting of our desired target demographic via these social media platforms will further enhance the image of the company, whilst remaining in sight of the demographics that actively utilize social media on an almost daily basis, via applications such as Twitter and Facebook. The branding of the company will remain in line with the business model of being an online entity, with the marketing, branding and advertising strategy following suit. By focussing on the online methodologies described herein the monitoring is made available via measuring search results which are available at any given time, which could be followed up by a competition linked in to the social media campaigns to measure online reach and awareness, within which response can be measured in terms of awareness of the brand within the target market. Co branding and internationalization is not expected to play much of a role within the initial stages of the company as generic growth will be focussed upon to grow the company, with a future view of such branding opportunities. The use of the online mechanism for business model and strategy alike provides adequate access to results and feedback at any given time and can thus be utilized to steer the campaigns accordingly. Once the company has grown sufficiently the options of expanding even further can be analysed for value and growth opportunities, however by focussing upon the service and quality brand issues initially the focus remains within the companies control and reach and ensures no external factors can cause significant harm to the branding process and brand in itself. In terms of the financial well begin and growth of the company, these aspects will be measured in traditional accounting and reporting forms via income statements, balance sheets and so forth. References (1999). Harvard business review on brand management. The Harvard business review paperback series. Boston, Mass, Harvard Business School Press. BUCKLEY, P. J. (2002). The Internationalization of the Firm. London, Thomson. CHAN-OLMSTED, S. M. (2005). Competitive strategy for media firms: strategic and brand management in changing media markets. LEAs communication series. Mahwah, N.J., L. Erlbaum Associates. KAPFERER, J.-N. (2000). Strategic brand management: creating and sustaining brand equity long term. London, Kogan Page. KAPFERER, J.-N. (2008). The new strategic brand management creating and sustaining brand equity long term. London [u.a.], Kogan Page. KNUDTZON, C., HEDING, T., & BJERRE, M. (2008). Brand management: theory and practice. London, Routledge. MICHMAN, R. D., & MAZZE, E. M. (2006). The affluent consumer: marketing and selling the luxury lifestyle. Westport, Conn, Praeger Publishers. WEBSUDASA BLOG (Online). Where to use the famous Social Media Channels. Accessed online on November 9, 2009 via http://www.websudasa.com/blog/ Read More