Marketing Project Perfume [PDF]

Citation preview

Project Work Business Studies Class12 Submitted by: Name:………………………….. Roll No………..………………… School Name:………..………………



PROJECT ON MARKETING MANAGEMENT PRODUCT SELECTED:



PERFUME



ACKNOWLEDGEMENT I am very thankful to everyone who all supported me to complete my project work on time.



I am equally grateful to my teacher Ms…………... She gave me moral support and guidance to me in different matters regarding the topic. She has been very kind and patient, while suggesting to me the outlines of this project. I thank for her overall support.



Last but not the least, I would like to thank my parents who helped me a lot in gathering different information , collecting data and guiding me from time to time in completing this project.



Thanking You ……………….(Name) ……………….(Class & Section)



CERTIFICATE This is to certify that …………….. of class XII- …(Section) of ………………….(School Name) has completed her project file under my guidance. She has taken proper care and shown utmost sincerity in completing this project.



I certify that this project is upto my expectations as per CBSE guidelines. Ms. …………



(Signature)



INDEX S.No.



Contents



1.



Introduction



2.



Why have I selected this product



3.



Competitive Brands



4.



Permission and Licensing



5.



Range of Product



6.



Our Product features



7.



Product Label [Front and Back]



8.



Tagline of Product



9.



Logo



10.



Competitors USP



11.



Packaging of our Product



12.



Pricing of Product



13.



Distribution of Product



14.



Strategy



15.



Bibliography



INTRODUCTION Marketing is a social process where in people interacts with others, in order to persuade them to act in a particular way, say to purchase a product or a service. Marketing helps the consumers to obtain what they want according to their needs. On the part of the marketers, the effort involves creation of a market offering. Marketing facilities exchange of products and services for money or something considered valuable by the people. Marketing focuses on the satisfaction of customers need.



Why I have Selected This Product Perfume is for everyone, young and old because perfume is one of the important products used in our daily life. From younger to older and men to women everyone likes to use the perfume of their choice. Perfume reflects the nature and personality of the person, therefore, it must be chosen wisely. Perfumes of different types and fragrance are available for different occasions and events. It is one of the most loving gift items among the masses and therefore the gift packaging of perfume is of utter importance. The human remember 35% of what smells and 5% of what you see. If you want to be always perfect, from head to toe, it is preferable to choose a fragrance for the day and another for the night, or you can even choose one for every occasion, but recalls that the



perfume is part of your personality and so always uses that make you feel fantastic! The production and manufacturing of perfume is also not easy but it can make more profit. It requires particular license or permission for producing the perfume. It is mandatory to get license in all the sectors. Obviously at the end there is a quality check which is again mandatory in all goods often their production. Thus manufacturing of perfume is preferred as many legal restrictions are imposed and has mass and growing demand for them.



Competitive Brands 1. Armani Giorgio's first foray into perfumes was in 1981 with the release of Giorgio by Giorgio Beverly Hills, the first Armani branded perfume was released in 1982. Simply called Armani, this chypre perfume for women (now discontinued) was to be the first of many successful perfumes to be released under the signature Giorgio Armani label. This was followed in 1984 by the release of the first Armani fragrance for men called Armani Eau Pour Homme.



• • • • • • • • • •



Over the years the following designers have worked at the company: Alberto Morillas Olivier Cresp Loc Dong Antoine Lie Anne Flipo Antoine Maisondieu Dominique Ropion Clement Gavarry Annick Menardo Carlos Benaim



2. Burberry Burberry is a luxury British design house founded by Thomas Burberry in 1856. This house distinguished itself with fashion and accessories, including a now-iconic trench coat and the brand's unique and recognizable tartan pattern which has become one of the most-copied motifs in fashion. Burberry was granted a Royal Warrant for Clothing from the British Royal Family. Designer Burberry has 78 perfumes in their fragrance base. The earliest edition was created in 1981 and the newest is from 2017. Burberry fragrances were made in collaboration with perfumers Creations Aromatiques, Michel Almairac, Philippe Roques, Mark Buxton, Emilie (Bevierre) Coppermann, Francis Kurkdjian, Dominique Ropion, Nathalie Gracia-Cetto, Antoine Maisondieu, Antoine Lie, Anne Flipo, Olivier Polge, Sonia Constant, Jean-Marc Chaillan, Beatrice Piquet, Domitille Bertier, Michel Girard, Jean-Pierre Bethouart and Nathalie Lorson.



3. Chanel At present the production of Chanel’s fragrances is overseen by Jacques Polge who has been in the helm from 1978. The company focuses a lot on innovation in products.



Chanel has sourced its flowers from grasse for close to a century, and since 1987, it has been actively contributing to the sustainable farming of jasmine and rose. Today, the crops have expanded to include other flowers for fragrances, namely iris, geranium and tuberose: all exceptional crops, exclusively reserved for chanel scents. Just as haute couture protects the unique skills of the artistic professions it encompasses, chanel fragrances contribute to safeguarding a legendary heritage.



• • • • •



Following are its newest offerings: N’5 Eau De Parfum Spray Coco Mademoiselle Parfum N’5 Eau De Parfum Refillable Spray N’19 Poudre Eau De Parfum Spray Coco Noir Eau De Parfum Spray



4. Calvin Klein



• • • • •



Calvin Klein Inc. is an American fashion house founded by the fashion designer Calvin Klein and childhood friend Barry K. Schwartz. The company is headquartered in Midtown Manhattan, New York City and is currently owned by PVH. Calvin Klein is one of the top global brands when it comes to perfumes. It offers separate products for Europe, the Americas, and the rest of the world. In the international arena its products can be classified into 3 major groups – women, summer scents, and men. Some of its leading products are: Calvin Klein SHEER BEAUTY Euphoria Men Calvin Klein BEAUTY CK One Summer Encounter



Calvin Klein has various lines of perfumes and colognes, including Obsession and Eternity. Until May 2005, their perfumes and the corresponding fragrance lines were maintained by Calvin Klein Cosmetics Company (CKCC), a Unilever company. Cosmetics giant Coty, Inc. of New York bought the fragrance licensing agreements from Unilever.



5. Christian Dior Christian Dior is the perfumery and cosmetics (makeup and skincare) line of the French fashion house, Christian Dior S.A.. However, the line belongs to the perfumes and cosmetics portfolio of the world's largest luxury group, the LVMH Group. Nevertheless, both Christian Dior S.A. and LVMH are headed by chairman Bernard Arnault, and Christian Dior S.A. is the major shareholder of LVMH. Begun in 1947 with the introduction of the women's Miss Dior perfume, Parfums Christian Dior has since come to include men's fragrances and a variety of cosmetics sold at Dior retail stores and fine cosmetics counters worldwide. It is headquartered at 33 Avenue Hoche in the 8th arrondissement of Paris, France. Dior is one of the leading fashion brands of the world that also specializes in fashion and accessories, and jewelry and timepieces in addition to fragrance and beauty products. Following are the leading fragrances on offer from Dior: • J’Adore • Eau Sauvage • Les Escales De Dior • La Collection Privee Christian Dior •Dio Homme



Permission & Licensing



Manufacturing, distribution and sale of cosmetic products in India are regulated by provision under drug and cosmetics Act, 1940. The permissions and licenses are required for manufacturing in India. We need permission from the Drug Control Authority of that particular area for manufacturing of cosmetics. If there are going to be any pollution discharge/emission during the course of manufacture, there we need approval from the PCB (Pollution Control Board) of our area. Apart from generis permissions/license for our letup, S&E, labour , power, SSI, commercial Tax, Central Excise, etc., would be needed.



Range of Perfumes Floral fragrances are said to cover the largest category of the different types of perfumes which draw inspiration from different sweet smelling flowers like roses, jasmine, orange blossoms, gardenias and carnations amongst others.



1.



Floral



2.



Citrus



3.



Woody



A combination of wood and moss is the main theme of these Woody fragrances, and are most commonly referred as chypre fragrances. The predominant use of oak moss, citrus, patchouli, bergamont as well as sweet earthy aromas help in creating a very soothing perfume. Chypre fragrances usually refer to fragrances for female category and sometimes the unisex, but are not for the male category.



4.



Oriental



Oriental perfumes are a mix of earthy and musky fragrances. Ingredients like amber, musk, and animalistic base scents are often seen in Oriental perfumes. These are claimed to be ideal when one wants to attract attention or seduce that very special person. It is ideal for wearing on a special date or a romantic night out.



Citrus-based perfumes have the essence of citrus to offer a tangy feel. These perfumes are said to be lively and are perfect for person with a bubbly nature. Citrus fragrances are derived from lime, lemon, tangerine and mandarin; and some can feature real sharp tangy notes.



5.



Fruity



Fruity smells are also very pleasant and largely popular due to their sweetness. They have a blend of spicy and fruity notes which help make these ideal for usual dates and romantic outings. These include smells like apple, berry, mango, peach and other juicy fruits or possibly the essence of these fruits.



6.



Green



Green fragrances are known to be very good choices for daytime casual events, as they offer scents of fresh leaves and newly mown grass. Green fragrances are known to be sporty and in most cases tend to be unisex perfumes. These perfumes are considerately mild and should be worn on casual events or occasions.



7.



Oceanic



8.



Spicy



Oceanic fragrances are claimed to be a relatively newer type of perfumes containing synthetic aromas to resemble smells of mountain air, clean linen etc. These fragrances are claimed to be very good choices for job interviews and official events . These fragrances pack in those kitchen smells like cinnamon, ginger, cardamom, cloves, pepper and more. Spicy fragrances claim to have their own alluring scents and are very luxurious in an old fashioned sense. These fragrances are a huge hit for casual occasions and brunches.



Our Product Features Effacer is a Personal Care brand used by customers all around the world. It’s Perfumes are known for its best quality and affordable prices, with the intention of persuading the consumers. The marketing strategy will touch one’s more interactive methods to involve customers to increase mass awareness. The Brand provides various range of Perfume which comes in various variants suited for individual needsluscious like: floral, citrus, woody, oriental, fruity, green, oceanic and spicy. Floral fragrances cover the largest category of the different types of perfumes from different sweet smelling flowers like roses, jasmine, orange blossoms, gardenias and carnations amongst others. Citrus-based perfumes have the essence of citrus to offer a tangy feel. Woody fragrances are a combination of wood and moss are most commonly referred as chypre fragrances. The predominant use of oak moss, citrus, patchouli, bergamont as well as sweet earthy aromas help in creating a very soothing perfume. Oriental perfumes are a mix of earthy and musky fragrances. Fruity smells are also very pleasant and largely popular due to their sweetness. Green fragrances are known to be very good choices for daytime casual events, as they offer scents of fresh leaves and newly mown grass. Oceanic fragrances are claimed to be a relatively newer type of perfumes containing synthetic aromas to resemble smells of mountain air, clean linen etc. Spicy fragrances pack in those kitchen smells like cinnamon, ginger, cardamom, cloves, pepper and more.



Key featuresThe Design Unique Aroma



Elegance Distinctiveness



USP of this product is that it has unique range of product.



The Design



Unique Aroma



Key Features



Distinctive -ness



Elegance



Product Front Label



Jasmine



Product Back Label



TAGLINE



Nothing Is More Memorable Than a smell



Logo of A Product



• Logo of Effacer is a perfect representation of freshness, joyness of a person. • The logo symbolizes that everyone are smart.



Competitor USP Armani Parental Company



Giorgio Armani Providing quality, sophistication &



USP



style-timeless values with global appeal



Segment



Fashion meant for affluent & elite males and females in the premium segment



Target Group



Man and women with high spending power from urban areas.



Burberry Parental Company



Burberry



USP



Burberry is a brand with a distinctive British sensibility, strong international recognition and differentiating brand values that resonate across a multigenerational and dual- gender audience



Elite fashion for males and females Target Group



in the premium segment who appreciate the smart and timeless classic style.



Segment



Middle aged men and women from upper class



Chanel Parental Company



Chanel.S.A Chanel is a leaders in haute



USP



couture and ready to wear clothes



Segment



Men and women who practice an active lifestyle and are interested in high fashion



Target Group



Urban men and women from higher affluent class



Calvin Klein



Parental Company



Phillips-Van Heusen



USP



Comfort that wearer gets



Segment



Customers looking for high end best products, fashion conscious



Target Group



Urban upper class youth and business executives



Christian Dior



Parental Company



Christian Dior S.A



USP



Christian Dior is the complete lifestyle designer luxury brand



Segment



Target Group



Urban upper class men and women. Fashion conscious men and women from the premium class



Packaging of a Product Effacer bottle colors are according to their fragrances & heart shape is a signature pack. Like light purple colour chosen for Effacer jasmine fragrance. Effacer diverse range requires a diverse packaging portfolio. There are certain necessities undertaken for perfume packaging before shipping or transferring: Delicate and sensitive: The perfumes is in glass bottles, therefore the packaging material is made up of soft sponges and of shock absorbing fluffed plastic so that they are easily handle with care and there will be limited chances of glass break. Design: The Effacer with jasmine fragrance perfume has purple glossy heart shaped bottle. Effacer’s care packaging is a key to success. Effacer employs mix of standard and custom packaging of its products. Tailored sizing strategy in perfume meets varying consumer needs. Developing regions exert different pack requirement of Effacer bottles. IDO brand design and Innovative was considered to design packaging for the range of products.



The secondary packages of the perfumes are made up of simple cardboard. The color & designs use on the packet is as same as the fragrances of the perfume. The Effacer‘s transportation packets comes in a spongy cardboard packaging. These boxes are made of recycled material as we believe to tick every box and promote recycling.



PRIMARY PACKAGING



Jasmine



SECONDARY PACKAGING



Jasmine



TRANSPORTATION PACKAGING



PRICING OF PRODUCT When a product is bought, some money is paid for it. This money represents the sum of values that consumers exchange for the benefit of having or using the product & is referred to as the price of the product. Factors affecting the price:1. PRODUCT COST:- This includes cost of producing, distributing & selling of the product. It should also cover profit margin. 2. UTILITY & DEMAND:- The price of the product is affected by the elasticity of demand of the product. In elastic demand, the total revenue increases due to increase in price & goes down when the price reduced. 3. GOVT & LEGAL REGULATIONS:- Protect the interest of public



against



unfair



practices



in



price



fixing.



4. PRICING OBJECTIVES:-



Obtaining market share



leadership, surviving in competitive market & attaining product quality leadership. The price of the items is different



for



the



wholesalers



and



customers.



Customers commonly buy the product in number of units but wholesalers buys in bulk.



RANGES



WHOLSALER



RETAILER



CONSUMER



FLORAL



120



150



160



WOODY



150



165



170



CITRUS



170



182



190



FRUITY



200



210



220



SPICY



230



250



275



OCEANIC



250



272



290



GREEN



270



282



295



ORIENTAL



300



325



340



STRATEGY PRODUCT STRATEGY We have the competitive advantage that is our quality. It is recognized throughout the world and our product is a convenient product which provides various ranges according to the need of the customers. PROMOTION STRATEGY



We can distinguish ourselves from the competitors on the following criteria. Effacer advertises its perfumes through wide range of media like TV Ads, social networking sites, hoardings, magazines etc. Promotional strategy is the direct way to connect and attract the customers to buy the product. Promotional strategy requires a lot of creativity & innovation.



Effacer



POSITIONING STRATEGY More for different: As we are offering the high quality with different range of perfumes according to different needs of people. BRAND STRATEGY We will position our brand at its attributes that is its innovative ingredients and good quality with touch of nature and strong beliefs and values as Armani perfumes, we also have many loyal customers. The brand is licensed and is an irrational brand.



MAIN OBJECTIVE Objective is to achieve revenue growth of 20% per year. Increase earnings by 15% annually. Increase dividends per share by 7% per year.



PROMOTION OF A PRODUCT Promotion is the process of communication with the potential buyers involving information, persuasion & influence. It includes all types of personal & impersonal communication with customers.



RADIO ADVERTISING A catchy jingle & quick tagline can enhance radio ad’s effectiveness. Matching a station you choose with your target demographic is key to success. If you want to reach adults aged 35 to 64, an adult contemporary station is a good bet. An alternative or urban station is good to reach youth aged 18 to 24.



DOOR HANGERS & FLYERS Canvassing the neighborhood, placing the flyers in mail boxes or hanging ads on door knobs, is a good way to target a specific area and to make sure your potential customers have seen your information. Even if most home owners will descant the information, gaining a hand full of clients may be enough for a positive return on the marketing campaign investment.



HOARDINGS Posters of the product can be placed on the hoardings which can be seen by the people passing through the roads.



ADVERTISEMENT The promotion strategy also involves heavy TV & magazine advertising. Their advertisement shows how perfumes can change the personality of a person. Models and popular slogans are used as well as to promote their products better.



WEBSITE The customers can visit the website of the product or brand. There are lots of facilities available, for example customers can check the product’s contents & feedback of other users. Also customers get to know any discount scheme on products.



Effacer



DISTRIBUTION OF THE PRODUCT Place element of marketing mix refers to distribution of products make them available to customers for purchase and consumption. Distribution is very important as if the products are not distributed and are not made available to the customers at the right place, time & quantity they would not buy the product.



WAREHOUSING Goods are produced in the factories on a continuous basis and they are not sold immediately after production. Location of warehousing for storage of the goods depends on the nature of the product. Since



perfumes



are



distribution is desirable.



necessity



goods,



widest



possible



CHANNELS OF DISTRIBUTION A channel of distribution is the route or path along which products flow from one point of production to the point of ultimate consumption or use. It starts from producers & ends with the consumers. There are different channels of distribution for different products. MANUFACTURER



MANUFACTURER



RODUCER



CONSUMER



RETAILER



WHOLESALER



CONSUMER



RETAILER



CONSUMER



PRODUCER



DEALER



WHOLESALER



RETAILER



CONSUMER



Our Company has chosen the two level channel where the producer sells the products to dealer, dealer sells the product to wholesaler, wholesaler sells the product to the ultimate consumer. Using the two levels or three levels would be the price of the product to the customers.



BIBLIOGRAPHY http://Wikipedia.com Magazine http://slideshare.com