TABLE OF CONTENTS I.
Background Background of the Case.................................................................................................3 Case.................................................................................................3
II.
Statement of the Problem...............................................................................................4 Problem ...............................................................................................4
III.
Goals and Object!es......................................................................................................4 Object!es ......................................................................................................4
IV.
Areas of Consderaton "Anal#ss ad Assum$tons% ....................................................4
a&
S'OT Anal#ss................................................................................................................4
b&
STP STP "Segme "Segmenta ntato ton( n( Ta Target( rget( Post Poston onng% ng%......................................................................5 ......................................................................5
c&
.............................................................................. ...................................................... ....................................................5 .........................5 ) P*s...................................................
d&
Ethca Ethcall +ssue +ssues s n ,ark ,arket etng ng Commu Communc ncat atons ons..............................................................8 ..............................................................8
V.
-ecson Crtera.............................................................................................................9 Crtera .............................................................................................................9
a&
Ease Ease of m$ m$leme lement ntat ato on n ..................................................................................................9
b&
Sustan tana abl blt# t#...................................................................................................................9
c&
,arketng Co Costs..............................................................................................................9
d&
Brand Brand A.aren .areness ess and and Credb Credbl lt# t#................................................................................10 ................................................................................10
VI.
Alternat!e Courses Acton/.........................................................................................10 Acton/ .........................................................................................10
0&
-o Nothng...................................................... ................................................................................. ...................................................... .................................... ......... 10
1&
2e3br 2e3bran and d the the $rodu $roduct ct .th .th anot anothe herr nam name e ....................................................................11
4&
Strateg Strategc c E5$ans E5$anson on through through m$ro!e m$ro!ed d communc communcato aton n ...........................................12
VII.
2ecommendaton and Acton Plan..............................................................................12 Plan ..............................................................................12
,A26ET+NG PLAN..................................................................................................................14 PLAN..................................................................................................................14 a&
+ndustr# Stud#...............................................................................................................14
b&
,arke ,arketn tng g ,5 ,5 Stra Strateg teges es and Progr Program ams s .....................................................................15
&
STP A$$roach............................................................................................................15
&
)P*s of ,arketng.......................................................................................................15
1
+&
Background of the Case
It is often said that sweet fragrance creates inspiration and heightens positivism. Perhaps one of the reasons why Fiipinos remain positive and in the ist of happiest co!ntries in the word is the fact that it va!es smeing good and oo"ing nice in the p!#ic. $his ass!mption is #est e%empified #y a research cond!cted #y &!romonitor Internationa in '!ne 2013 which conc!ded that even Fiipino men are increasingy avaiing of grooming "its. 1 &!romonitor Internationa(s '!ne 2013 report on Fragrances in the Phiippines ass!med positive growth for perf!me prod!cts in the Phiippines that #ac"ed #y improvement in the economic sit!ation and Fiipino(s strong interest in maintaining proper hygiene as we as increasing demand for premi!m fragrances. $he stronger competition in the category wi enco!rage man!fact!rers to imit price increases) or even impement price c!ts. *an!fact!rers wi attract new cons!mers to try their prod!cts thro!gh the !se of promotiona pricing schemes. $hese wi #e more prevaent in mass fragrances) in which pricing is a "ey consideration in prod!ct p!rchases. It aso has a high prospect for the ind!stry considering the e%pansion of shopping mas and the esta#ishment of department stores in more "ey cities which wi provide premi!m #rands with new mar"ets in the forecast +ayden Fragrances is an innovation of Inovacao ,a -ida) a Phiippine#ased company which is dedicated to enrich the ifestyes of its cients thro!gh the art and science of fragrances. $he company is fo!nded and is #eing managed #y ,r. +ayden /ho) 'r.) infamo!s for the series of se% videos scandas with severa "nown femae personaities in the co!ntry that wrec"ed his career as a medica practitioner.
,r. +ayden /ho capitaied on his "nowedge of #ea!ty and fashion and positivey p!rs!ed his f!rther st!dies on perf!me ma"ing and management in France. +e #ro!ght with him this French !nderstanding of fragrances to create his own #rand of mass fragrance avaia#e for a genders. ith !st more than 2 years of presence in the co!ntry) it sti has a ong way to s!rvive in this
1'!ne 2013 &!romonitor Internationa. Passport *en(s rooming in the Phiippines 2
ind!stry with a ot of competition not ony from premi!m #rands #!t aso with severa mass fragrance ines that are proiferating in the mar"et.
6ongside the o#ective of ens!ring the mar"eta#iity of +ayden Fragrances) this case wi primariy tac"e ethica iss!es invoved in mar"eting comm!nications. ++&
Statement of the Problem
hat m!st +ayden Fragrances do to channe ethica mar"eting comm!nications for its prod!ct considering the tarnished rep!tation of its fo!nder and owner7
+++&
• • • • •
+7&
Goals and Object!es
$o ens!re proper and ethica mar"eting comm!nications for the prod!ct $o increase its mar"et share $o strengthen #rand e!ity aongside competitors $o contin!e to serve the society $o improve profit margin
Areas of Consderaton "Anal#ss ad Assum$tons%
a& S'OT Anal#ss
ST2ENGT8S
•
Pop!arity of the ownermanager
3
•
:ni!e man!fact!ring process
•
;trong partnerships and coa#oration with *adita and &ver
•
•
'EA6NESSES
/nowedge of the perf!mefragrances 6vaia#iity of the prod!ct onine
•
$arnished rep!tation of the owner #rand name
•
+igh seing price
•
;tarting and competing with giant mass fragrances i"e
•
Fan#ase) regardess of tarnished rep!tation) owner has a niche with fans
OPPO2T9N+T+ES
T82EATS
•
Partnerships with other fashion #rands
•
&%pansions in the provinces and internationa
•
;trong competitions
•
+!ge n!m#er of cheaper s!#stit!tes) even deodorants
•
+igh costs of capita
4
b& STP "Segmentaton( Target( Postonng% Segmentaton
=ass , to >ower =ass = and even :pper =ass =.
Target
It targets yo!ng professionas who sti can(t afford the !%!ry and e%pensiveness of premi!m perf!mes. Its prod!ct is meant to s!it the different scent orientations and preferences of the cons!mers thro!gh severa prod!ct ines and variations.
Postonng
+6?,&@A is a coection of e%traordinary fragrances created in coa#oration with top perf!mers in Paris) form!ated to ast onger in warmer cimates. ith its !ni!e scent) eegant pac"aging and tho!ghtf! presentation) each +aydenA fragrance is an e%ceptiona way to ma"e yo!r own persona statement) as we as the perfect peas!re to give) or to receive.
c& ) P*s Product
For +er
5
For +im
P!rse ;prays
B
$he fragrances are deveoped to pay specia attention to asting) !aity scents ta"ing into consideration the co!ntry(s weather. $he prod!ct is named after the owners and creator +ayden /ho) controversia and infamo!s given his reationship with ,r. -ic"y
C
Prce
P!rse sprays 10 m #ottes are sod at P98.00 per #otte Perf!mes B0m are sod at P380.00 per #otte 120m are sod at P520.00 per #otte
Place
6yaa *as) ;* *as and Do#insons mas. It has e%isting we#site) #og) m!tipy) face#oo" and twitter acco!nts It r!ns severa promotions to gro!p #!ying sites onine whie it has p!t !p a very good a!nch at reen#et and traditiona media mieage s!ch as
d& Ethcal +ssues n ,arketng Communcatons
*ar"eting ethics addresses principes and standards that define accepta#e cond!ct in the mar"etpace. EFerre2 ;ome o#vio!s ethica iss!es in mar"eting invove cearc!t attempts to deceive or ta"e advantage of a sit!ation. ;ome maor ethica concerns regarding mar"eting programs generay are that *ar"eting ca!ses peope to #!y more than they can afford. *ar"eting increases the costs of goods and services *ar"eting perpet!ates stereotyping of maes) femaes and vario!s ethnic minorities. *ar"eting creates offensive advertisements *ar"eting creates advertisements in"ed to #ad ha#its and intimate o#ect s!#ects. *ar"eting prepares deceptive and miseading advertisements =. Fare E2005 has devise the foowing framewor" to !nderscore ethics in mar"eting
Individ!a Factors mora phiosophies and va!es
;ta"ehoder &thica iss!e &thica interests and intensity decision concerns 2 httpwww.genderprincipes.orgreso!rceGfies*ar"etingG&thics.pdf
&va!ation of ethica o!tcomes
8
Individ!a Factors mora phiosophies and
7&
-ecson Crtera
a& Ease of m$lementaton
$his wi pertain to how m!ch change there wi #e in the organiation and its operations once the aternative co!rse of action is impemented. 6nd in any #!siness decision) cost wi aways #e an important consideration especiay for an organiation that e%ists to generate profits for its sta"ehoders
b& Sustanablt#
;!staina#iity foc!ses on the ong term impact of a #!siness decision) which is a way to meas!re the sta#iity of the so!tion. $he goa is to ens!re that +ayden Paris Fragrances sta#iies as a good cons!mer #rand not !st of va!e #!t of its effect to cons!mers. $he decision sho!d aso prove to #e managea#e a thro!gho!t the time. It sho!d not !st #e a c!rrent) onetime so!tion #!t a ongterm wor"a#e decision for the management.
c& ,arketng Costs
$he decision m!st aso ens!re the east cost with the greatest mar"eting impact for the company
9
d& Brand A.areness and Credblt#
$he decision m!st come !p with a so!tion that wi f!rther esta#ish #rand awareness and credi#iity for the company
iven the identified areas for consideration) the a#ove decision criteria are given their corresponding weight as foows
-ecson Crtera
'eght "n :%
Ease of +m$lementaton
0;:
Sustanablt#
1;:
,arketng Costs
1;:
Brand A.areness and Credblt#
<;:
TOTAL
0;;:
7+&
Alternat!e Courses Acton/ 10
0& -o Nothng
From the time that the company has started mar"eting and distri#!ting the +ayden Paris Fragrances) it has contin!e to penetrate the mar"et witho!t any iss!e as to its ethica fo!ndation. hie the owner remains tanged with severa !dicia and gossipmade cases invoving severa se% video scandas he has #een) there is an apparent acceptance of the #rand considering severa #ranches it has aready set H!p and the partnership it was a#e to esta#ished. It aso appears that ,r. +ayden /ho) given his charms and good oo"s remains to have a niche fan#ased that is wiing to considering !sing his perf!me prod!cts.
PD;
=@;
•
6=6 1
•
@o added cost for the company.
•
@o additiona wor" nor manpower
@o growth potentia if mar"eting wi not #e enhanced as we.
re!irement •
2.
@o ris" ta"en !p
2e3brand the $roduct .th another name
In this aternative co!rse of action) the company wi consider renaming the prod!ct with a different name. $his is to eiminate any direct connection with the owner so that the prod!ct can
11
fo!rish on its own !sing other mar"eting techni!es other than naming it thro!gh a pop!ar cee#rity.
PD;
•
Perf!me prod!cts may #e renewed as
the re#randing wi entai re
•
a #rand on its own +aters of +ayden /ho) might #indy consider the new #rand) not #eca!se •
new prod!ct. Dis" of osing e%isting c!stomers
•
for the +ayden #rand. i entai a ot of wor") from
6=6 2
=@;
of its reationship with the ma"er #!t
•
a!nch of the prod!ct as if it is a
#eca!se of its #enefits as a partic!ar •
#rand =an aso change the pricing scheme
=ost wi #e h!ge considering that
concept!aiation to
of the #rands. =onsidering the strong
impementation. Inc!ding the
competition) this is an opport!nity to
#randing) the pac"aging. @o g!aranty that it wi no onger
!nderstand the ind!stry rates and #ase its pricing scheme thereto
•
#e tied to the owner) as the owner remains the same.
4&Strategc E5$anson through m$ro!ed communcaton
=apitaie on the va!e of renewa) positive change) and progress of ,r. +ayden /ho and its perf!me prod!cts. *ar"eting may inc!de press reeases of the right apoogies of ,r. +ayden /ho for its previo!s invovement in scandas and how is has #een rec!perating and his desire to change as a #etter person. $his wi ony wor" if indeed +ayden /ho has fo!nd niche in this perf!me #!siness) has !ndergone change of ifestye and is reay trying to improve his ife. Improve the prod!ct awareness thro!gh whoehearted s!pport to comm!nity wor") partic!ary to women and chidren(s wefare.
12
PD;
•
6=6
=@;
=apitaiing on Jthere(s goodness in
•
every personK is wor"ing on easiy
2
forgiving
and
forgetf!
Fiipinos.
•
=ost for e%pansion wi #e minima
•
=hance for f!rther opport!nities
•
@o need to change the #rand
7++&
can
#e
an
e%periment
witho!t ass!rance of rea res!ts. •
Fiipinos normay forgive especiay if they see sincere change in the person.
$his
*ay open the owner(s ife for f!rther #ad p!#icity and criticisms.
•
$here were victims who may not have the heart to forgive as of the timing of this mar"eting strategy.
2ecommendaton and Acton Plan
-ecson Crtera
ACA 0/
ACA 1/
ACA 4/
Ease of +m$lementaton "0;:%
0;:
=:
0;:
Sustanablt# "4;:%
1;:
1<:
1<:
,arketng Costs "1;:%
0<:
0;:
1;:
Brand A.areness and credblt# ");:%
4;:
4<:
4<:
TOTAL
><:
>=:
?;:
13
$he desire to change for the #etter can f!rther enhance the va!e proposition as we of the prod!ct he is seing) as if pers!ading c!stomers to #eieve that positive change can aso improve their ives.
=omm!nication of the prod!ct(s va!e proposition wi #e improved in
potentia target mar"ets. ;!rveys and f!rther mar"et st!dy wi #e cond!cted to identify which mar"ets are open to the va!e of fresh) heathf! prod!cts and once these areas are identified) partner distri#!tion centers wi #e tapped to offer ardenia(s prod!cts in said areas.
$he process of doing this action pan wi !ndergo interna and e%terna decisionma"ing processes. $his wi ma"e s!re that significant changes that wi #e done to the mar"eting of the prod!ct wi have considerations of a the sta"ehoders.
INTERNAL
Interna processes wi inc!de a panning session to #e cond!cted #y the *ar"eting team with the owner and thro!gh its p!#ic reations e%pert Eeither hired or serving a a cons!tant. *eeting wi identify what is necessary comm!nication to #e reayed to everyone) what media to #e !sed and how the process wi #e ta"en.
EXTERNAL
14
6ongside) the *ar"eting and operations team m!st aso #e a#e to identify e%pansion opport!nities for the company) either thro!gh partnerships with other #rands or thro!gh direct seing and onine opport!nities
7+++&
Concluson
$he company is sti in the growth stage) #!t what somehow is hindering its opport!nity to grow is the direct reationship that is attached to the owner(s past and the prod!cts it is now endorsing and sharing to the p!#ic. Primary responsi#iities for ethica #ehavio!r reside within each of !s when paced in any of the vario!s mar"eting comm!nications roes. e can ta"e the easy ro!te and do those things that are most e%pedient) or we can p!rs!e the mora high road and treat c!stomers in the same honest fashion that we e%pect to #e treated. In arge part) it is a matter of o!r own persona integrity. Integrity is perhaps the pivota concept of h!man nat!re. 6tho!gh diffic!t to precisey define) integrity invoves avoiding deceiving others of #ehaving p!rey in an e%pedent fashion.
,A26ET+NG PLAN
a&
+ndustr# Stud#
6ccording to &!romonitor Internationa3) fragrance c!rrent va!e growth sighty contracts #y 0.3L 2012) reaching PsC.5 #iion. *ass men(s fragrances sees the most dynamic performance 3 '!ne 2013 &!romonitor Internationa. Passport Fragrances in the Phiippines 15
in 2012. 6von =osmetics maintains its ead in fragrances with a 43L va!e share in 2012 and Finay fragrances is e%pected to see negigi#e #!t positive constant va!e growth in the forecast period) with a =6D of ess than 1L Current Product@Brand Stuaton +ayden Paris Fragrances is sti on the initia growth stage. ith a very strong competition coming from the presence of premi!m #rands that readiy attracts casses 6 M <) and mass fragrances that are proiferating right now to cover for =asses = M ,) it has to wor" on a ot of aspects of its operations and partic!ary its mar"eting to enhance its mar"et share.
b& ,arketng ,5 Strateges and Programs In order to mar"et #etter its operations and mar"eting strategies) a few changes wi have to #e made on +ayden Paris Fragrances interna processes.
& Segmentaton
Target
Postonng
STP A$$roach hie it wi not #e a#e to compete with internationay "nown premi!m #rands to capt!re =asses 6 M < mar"et) it can improve on its costing and pricing to target not !st =ass = #!t aso =ass ,. $his may inc!de offering prod!cts in smaer variants) etc. ;t!dents) partic!ary) =oege and +igh ;choo eve are mosty on the period when they are more critica a#o!t their appearance and hygiene. +ayden Paris Fragrances can tap this mar"et to f!rther enhance profita#iity +6?,&@A is a coection of e%traordinary fragrances created in coa#oration with top perf!mers in Paris) form!ated to ast onger in warmer cimates. ith its !ni!e scent) eegant pac"aging and tho!ghtf! presentation) each +aydenA fragrance is an e%ceptiona way to ma"e yo!r own persona statement) as we as the perfect peas!re to give) or to receive. It can retain its e%isting positioning partic!ary that it(s va!e proposition is ongerasting fragrance for warmer cimates i"e the Phiippines.
1B
& Product
)P*s of ,arketng Improved prod!ct offering to cater to =ass , mar"et #y f!rther retaiing the prod!ct into smaer variant so that it comes within the #!dget of the
Prce
=ass ,. Pricing strategy wi #e maintained H @ot too high to #e considered e%pensive) nor too ow to #e considered cheap
Place
p!t !stification as to the price of the prod!cts &nhanced distri#!tion thro!gh partnering with other fashion and cothing ines.
Promoton
=omprehensive in terms of media coverage Eprint) teevision and radio *essage on why the prod!ct is JfreshK wi #e strongy comm!nicated and wi #e !sed as a "ey promotiona too in the e%pansion.
2eferences /oter and Feer E2011. *ar"eting *anagement 14 th &dition. '!ne 2013 &!romonitor Internationa. Passport Fragrances in the Phiippines '!ne 2013 &!romonitor Internationa. Passport *en(s rooming in the Phiippines
1C