This survey is prepared to analyse how consumer behavior changes has led to the drop in sales volume of 'Xclusive' perfume brands across the UK market. For the last two years sales has dropped consistently across the marketplace of upper school consumers in UK.
Xclusive can be an prime perfume brand from Prime Products Ltd, a business founded out of UK. Company launched this top quality brand for women and men in UK market in 2006. By 2007, that they had a 1. 2% market share, reporting a complete sales turnover of 7. 96 million GBP (Esprit Magazine, 2007)
In 2008 and 2009, the sales dropped by 5% and 6. 2% respectively. Preliminary reports show a decrease in popularity of the brand and reduced movement in stores among the higher school customers.
This report is supposed to analyse the reason why which led to the sales decline during the last two years. Statement will test the hypothesis that consumer behaviour variations led to the decline in sales. Other key aim of this survey is to create suggestions to invert this declining sales pattern and affect a positive change in consumer behavior to boost the sales.
Current Product and Marketing Strategy
'Xclusive' brand of high quality perfume for women and men was launched by Superior Product Ltd in 2006.
There were four lines through this 'Xclusive' brand - organic, musky, woody and spicy. Musky was the favorite most brands followed by Herbal. They were packed in exclusive fantastic bottles, which offered exquisiteness to the whole product program. Health awareness was on the rise among the UK consumers in 2006.
That made the business release this exclusive organic perfume to top of the class consumers. This is launched within their market differentiation strategy in comparison to other premium brands. Main goal was upper class women and men in UK with cultural level A and B. (Businessballs, 2008). The forex market size constituted 25% of the full total UK populace.
Premium Products Ltd used a premium pricing for everyone products including this Xclusive products, with organic being the priciest as it was created from healthy ingredients.
The company used a selective syndication strategy focusing on only luxury areas and focused on boutiques and big department stores like Wesfield and Metrocenter. Distribution strategy was centred around prime malls and online shops like Perfume shop.
Company have the advertising mainly through superstar ads in media like Television set and upper class magazines like Glamour and Cosmopolitan. Campaign was around healthy sports activities women and men using this exclusive perfume. (National Readership Review, 2007)
Problem: In the last two years there's been a drastic reduction in the sales of fragrance products (perfumes).
Study was conducted on market and consumer buying process to comprehend the reason why behind this decrease in sales. In the market study, objective was to test whether exterior market conditions were favourable to perfume business. Market research was done using the Infestations method. While doing sales analysis, it was discovered that drop in sales actually came from women portion. Hence market and consumer behaviour study was mostly attributed to the social class A and B women segments.
Buy more, less, stay faithful etc
buyer's dark box
Needs - wants, stimuli
Product, price, place, advertising etc
Environmental (Infestation) factors
Buying Process Analysis
We viewed the typical buying procedure for top quality perfumes by ladies in UK. Considering the major players involved with an average purchase decision.
Usually, women themselves will be the initiators to buy perfumes for following reasons:
Long sustained scent
Makes feel attractive
One that others comment on
Makes feel sexy
Changes or enhances mood
Initiators can be men also who buy gift ideas for ladies.
It basically will depend on the age group of women. But generally speaking, the influencers can be:
Referred by journal (foil pouch examples preferred)
Advertisements in media
Women themselves and men also.
Both men (as products) and women.
Women, her friends, family members etc.
Since women play the major role of initiator and decider in this buying process, we have to understand inside and external factors which can impact the consumer behavior of women belonging to social class A and B.
Consumer behavior characteristics
Consumer behaviour identifies the choice, purchase and consumption of goods and services for the satisfaction of the wants.
There are multiple factors which can impact the consumer's behaviour over a period, which include both inner and external. Broadly the inner factors could be personal traits like age, income, job, personality, lifestyle etc and mental health factors like desire, perception, learning, values and attitudes.
External factors can be social ones like reference point groups, social position and influence of family. It could be ethnic factors too like culture and sub-culture and sociable class.
This is very much relevant to the prime perfume product segment too.
External Factors affecting consumer behaviour
Among the exterior factors, the key ones which immediately impact consumer behavior are demographics and sociable school. Next comes the influence of reference teams like celebrities, relatives and buddies. But because the target segment is mainly upper class and upper midsection, culture/sub-culture seems to be minimal important adjustable.
It is more an internal factor, which is of course formed by external impact.
Teenagers: They are simply more enthusiastic about citrus scents. Usually they favor a fragrance which makes them attractive to others. They don't have any affinity towards a brandname, but they love to try different fragrances and brands.
Adults: They are most likely to buy fragrances for some likely to wear a perfume to feel "sexy". Older women are more likely to switch fragrances of their collection once a week or more. Because they are more health mindful, they will consider Home Fragrances, Eau de Perfume, and Essential Oils within the Fragrance category. They may be a lot more branding savvy. They prefer fruity and flowery fragrances and follow celebrities to a sizable extent.
In the united kingdom, every woman between the age ranges 25 and 34, on an average hold 71 worth of cosmetics in their handbag. (China cosmetic packaging, 2010)
Three out of five women were more likely to buy a perfume examples in a newspaper (foil pouch samples preferred). Now women favor using a 'closet or assortment of fragrances too. (Fragrancefoundation, 2007) They still follow superstar endorsements while choosing the perfume. This is visible from the acceptance of 'M' brand released under the brand of Mariah Carey (Businessperson, 2007)). Consumers have revisited basic fragrances as the switch in buying behaviour moves towards quality, authenticity or value. (Academics Mintell, 2007)
Similarly, variations in social school can create customer groupings. In fact, the official six sociable classes in the UK are widely used to profile and predict different customer behavior. In the UK's socioeconomic classification program, social category is not simply dependant on income. It is assessed as a combination of profession, income, education, riches and other factors. (Teacher2U, 2007)
Relevant social course segments for our superior perfume portion:
Upper higher - old, founded, socially visible families
Lower top - new wealthy
Upper middle - professional people
Lower midsection - white scruff of the neck, salaried staff (Emailcommerce, 2007)
Now the characteristics of every of these sociable classes vary as they are bound by different cultural and sub social elements. In today's marketing strategy the merchandise was positioned just for upper school women and we didn't have a differentiated positioning for every single sub cultural or social category groups within this broad definition of upper category women. Needs and purchasing process of higher middle class woman is completely dissimilar to a upper top class woman. For example higher and lower middle can get inspired by friends and co-workers more and women tend to be mostly decision makers and purchasers. However in the upper upper and Lower upper, affect of family may be higher. Reference point groups like interpersonal night clubs, charity organisations, and cultural get together could be more relevant to effect the upper class women. Hence a segmented marketing strategy is necessary.
However this year's 2009 downturn has frequency the purchase of perfumes among women. Women normally buy 4 fragrances per year. (Fragrencefoundation), because of the downturn there it has decreased to 2-3 fragrance yearly. Still women spend enough on makeup.
Among the higher communal classes, penetration of sociable mass media has increased. Online buys using cards has become common. Internet as an outlet has increased its penetration by 4% in the UK market. (Fragrancefoundation, 2007)
Reference groups may possibly also potentially affect the buying of high quality perfume product.
Reference organizations can be aspirational or associative. Superstars and socially well known females form aspirational reference point groups for top quality UK women. Associative reference point organizations could be members of a communal club or co-workers or even users of church and some organisation. Friend group is another major important research group as they may be sharing same passions and personal preferences. Family could be another research group, this is however dealt independently. (Consumerpsychologist, 2007)
In the mark section of 'Xclusive' high quality perfume product, guide groups are quite relevant. For instance, Super star brands are driving market expansion among younger scent users. Over 30 new superstar fragrances were launched in 2007. One in five 16-24 calendar year olds claim to possess at least one, compared with one in twenty over-45s. Star fragrances supply the entry way for young people into the complete luxury sector. (Fragrancefoundation, 2007)
(As internet is now a key social media, reference communities like forums and fragrance review sites is also becoming key influencers in the decision making process. Sites like http://www. bestperfumeforwomen. co. uk/ provide reviews and present a rating on best perfumes.
You can't launch hundreds of fragrances, as the customer is more selective and wants something unique. It is not only the downturn that has obligated this change in consumer behavior. Thanks in large part to the internet, buyers are a lot more knowledgeable about fragrances-more than many brands think. A glance at a few of the fragrance blogs or websites, such as Sniffapalooza (once derided, however now courted by scent brands) demonstrates consumers are having educated conversation and controversy about fragrance, looking at different products and requesting why all of them are alike. Fragrance expert Michael Edwards calling this consumer the 'connoisseur', and compares such behavior to the 'foodie' pattern that emerged several years ago.
Influence of Family
In our target segment of top and higher middle class ladies in UK, effect of family members is vital to make purchase decisions. Specific members of individuals often serve different functions in decision making process. A lot of people are information gatherers/holders, who seek out information about products of relevance. They often have significant amounts of power because they may selectively spread information that favours their chosen alternatives. Typically husbands play the role of influencers; they let their wives know their needs and ideas. Husbands usually travel and get to know from public gatherings and even from online or internet means. Regarding prime perfume, the role of each individual in the family is crucial - whether it is that of gatherers who may be typically younger lot or sociable buffs, or that of influencers like husbands or decision makers or even customers. This makes marketing more hard as the text messages need to reach a wider combination section of UK modern culture. Point of sales marketing can help to convince customers, but extensive marketing conveying the features of 'Xclusive' high grade perfume should reach others like more aged ladies, socially respectable family members, and husbands. (Consumerpsychologist, 2007)
Three out of four women say that whenever they find a fragrance they really like, they tell their friends about any of it. Every 2 in three women give perfumes as surprise to partners, relatives and buddies.
Impact of culture/sub-culture elements
Each culture has "sub-cultures" - groups of people with share beliefs. Sub-cultures can include nationalities, religions, racial categories, or groups of men and women sharing the same geographical location. Sometimes a sub-culture will generate a considerable and distinctive market segment of its.
(Source: From Module demonstration)
For example, the "youth culture" or "club culture" has quite distinctive values and purchasing characteristics from the much more aged "gray generation".
Similarly sub-cultural communities like immigrants from other countries and resident nationals belonging to other regions will show different characteristics to the UK culture. For example in the case of Asians, family romantic relationships are much more robust and gifting is usually informal and ritual. Yet, in UK, relationships are more loose, but gifting is done formally. Packaging is more relevant to the UK top class when compared to other nationals. Western european communities give lot worth focusing on to quality and beauty. Just like nationality as the above diagram shows, there are a lot more factors which condition up the cultural trait of a person.
Suggestions to effect consumer behaviour
Fine grained social class segmentation: Have significantly more targeted segments by age, by social class and by time. That is important as announcements may need to be different and different fragrance products needs to be sold to different social class and age group groups
Celebrity sources: Continue steadily to use sources from superstars, but widen your celebrity bottom to influence different segments. Musicians, film personalities, entrepreneurs, athletics personality and so on. For example youthful lot get inspired with internet marketers as they look for self-assurance image to get associated with the perfumes they use. More aged may prefer music superstars and film personalities.
Educational Marketing promotions across wide combination section: Sales staff needs to learn to improve their advertising support and skills in order to suggest customers effectively. Fragrances sold in self-selection should carry information on the outer pack to provide consumer with the main element ingredients of the merchandise. Leaflets in bins could also contain information for the consumer on the perfume, on how to wear and tips about fragrance layering, and its own ingredients which really is a standard for most prestige skincare brands. Furthermore samples can be used to explain fragrance notes. Furthermore online sampling has been effectively completed by luxury brands. Promotional messages should be targeted at initiators, influencers and decision manufacturers. POS marketing is critical for acquisitions like free samples.
Increasing the reach:Focus on to improve the number of stores to reach a wider segmented platform of top and higher middle income women. Use internet as a route to target convenience consumers. Online purchase and spending is increasing in top of the class UK consumer segments. More over place reviews and customer testimonials especially of reference point groups in interpersonal marketing sites to impact the prospective buyers.
Differentiated products and channels for multiple segments: Thus there is a need to handle the Teenage customers and Adult customers with different products regarding to their tastes. There are fundamentally different types of consumers which are
Luxury perfumes for ladies come under Image Shoppers and Experience Buyers were, Teenagers participate in Image Customers and Adults belong to Experience buyers. Understanding customers, their personal preferences, their needs led to the conclusion our firm should go for two product lines, one responding to the teens and the other dealing with the men and women. The perfumes must have a variety of flavours i. e. , a number of citrus flavors for teenagers and bouquets and fruity tastes for individuals. Also advertising and promotional activities should be based on this segmentation.
Recommended Positioning Technique for 'Xclusive' High quality Perfume Brand
This report is ready to suggest a placement strategy for 'Xclusive' make of high quality perfume for identified market segments. The objective of this new placement strategy will be to have a good affect on various factors which impact consumer behavior and purchase decision of the high quality product.
However this article is bound to the positioning of the merchandise for just one of the target sections, which is higher course and higher middle class women. We believe that positioning strategy for the section of 'men' is working fine as sales has shown positive upward pattern up to now.
Key Spaces with the Current Positioning Strategy
Broad and improper target segmentation: According to the current online marketing strategy the target section was thought as upper class men and women. Positioning meaning or current tagline 'Exclusive fragrance for just you' was used to draw in upper class men and women to believe that they bought it and become a member of a elite band of prime perfume owners. The prospective segment of upper course women was broader as consumer behavior characteristics have a tendency to are different with in the mark segment of upper class women by age group and social school. Hence the marketing announcements failed to win over all the potential buyers among the target segment of top course women.
Earlier, the segmentation was based on just income and status as quite noticeable from the positioning note. But it didn't win over all the combination sections of the prospective customers.
Lack of differentiated products and setting: Tagline and setting creates a perception map in the heads of consumers. 'Exclusive scent just for you' suggests pursuing characteristics - it is expensive, it is specifically for upper class only, it is unique from other products. Yet, in real sense product had not been differentiated from the rival products. Hence there is a different between customer notion and experience which resulted in customer dissatisfaction and decrease in repeat purchase.
Teenagers Vs Individuals with in top of the class aim for women
how to gain their credibility
the core segment to be targeted. .
Personal body chemistry
Stress more on ambience
Increase of celebrities
Increase of cultural media use especially in teenage networking sites
Personal body chemistry
As you can view above, young adults are showing more affinity towards man-made fragrance while people are interested in herbal products. This itself calls for a rift in tastes and perception a comparable 'scent' product. Marketing consultancy need to address this with a differentiated product strategy. This sort of differences in perception mapping of the same product by two sections of the target portion had not been considered while deciding the product and positioning strategy.
Lack of proper superstar references: Celebrities used for promoting 'Xclusive' brand were typically contemporary personalities from the field of athletics and videos. But this is again not based on the tagline, the company had. Ideally the company should have attempted to bring in a graphic of 'a traditional brand' plus they might well have chosen someone from old typical films like 'Lawrence of Arabia' or actresses like Julie Andrews (Basic Movies, 2008)
UK Consumers, especially the women in the age band of 30 to 60 were revisiting the typical brands which might have been an improved strategy.
Couldn't reach all influencers: Regarding upper class women, an average purchase process is inspired by friends, members of the family like husband, cultural clubs, social marketing community forums and then ofcourse the aspirational groupings like successful businesswomen or stars. Xclusive as a brand didn't have any such organizations with these influencers. These were mostly targeting the decision makers and buys with ads being targeted in journals like Glamour.
Redefine the target segments among the Women
Xlusive brand has suffered a decrease in sales during the last two years among the women target portion. From the marketplace research and consumer behaviour study we will get that current online marketing strategy was not good enough to entice all prospective consumers among the target segment of upper class women. Initial market strategy was just built across the income category, but it was not taking into account the consumer behavior changes according to different factors like social category, age, cultural difference and so forth.
Shift in focus on segmentation from "Upper school women" to multiple focus on segments of
segment 1: upper upper school and upper middle class (employed) woman
segment 2: teenage women in upper middle income and upper school (with a higher disposable income)
Differentiated Products and Positioning
Me too products or general product line with one positioning subject matter will not work in this improved environment. UK consumers are more heading towards value shopping and they are more likely to make more informed decisions alternatively than heading by quick stimuli.
Upper class and upper middle class women
Xclusive Basic - range of fragrance in herbal mix
"Health insurance and Class Exclusively"
Teenage upper school and upper midsection class
Xclusive Style - Artificial perfumes with citrus flavours
"Style and Self-assurance"
Suggesting following a Key Brand solution to look at what factors would impact women in these target segments choose a scent in the superior segment.
Hence the differentiated products and positioning should be made around the following attributes preferred from the above matrix
Classic range of fragrance in herbal mix
Hence positioning announcements are created around these product features for the two products. Packaging is also made regular with these capabilities to set-up that whole product image.
Classic product line must be packed in premium cup bottles with a fantastic plating. Style product line for teenagers will be in colourful glass bottles which are trim on sides to give it a style and powerful cuvy condition.
Creative Campaigns around Placement Messages
One of the issues with fragrance is usually that the penetration rates aren't that high. However, a great deal could be achieved to bring more consumers into the perfume market. Critics say that marketers concentrate too much on young ones, and that the scents and sometimes racy advertising campaigns aimed
at this group have turned off older consumers. Attractive to women in their 30s, 40s and 50s and the ones who've lost touch with perfume with an appropriate offer and marketing campaign could bring in much additional income.
So having nostalgic and vintage campaigns will be a good way to focus on the portion of middle aged upper class and upper middle class women. Celebrities can be stars like Elizabeth Taylor and Julia Andrews. They are able to promote the 'Xclusive Vintage' brand around creating images of "classic and vintage products never ceases" or use everlasting videos like 'Lawrence of Arabia'. Leaving contemprory stars to more celebrities from the traditional get older would be good to encourage and effect changing UK consumers especially among the aged upper class segments.
(The Freelibrary, 2007)
Avertisement directed at adult women
Use of silver plated bottle cover and gold color font in a classic written style
*Julie Andres, an celebrity from yester years still a full time income legend to be always a brand ambassador of the Classic product line
Similarly for the teenage portion, celebrities from field like politics, business, sports could be chosen who can provide a graphic of style and confidence.
A analysis conducted among young UK women opt for set of role models like Margaret Thatcher, Marilyn Monroe, Kylie Minogue, Jamie Ogata (Confident Japanese UN official). (Cranfield University or college, 2009)
We can probably use them as stars to press our style and self-confidence image in the mind of teenagers. Unlike adults, teenagers are definitely more image shoppers. They can be triggered for an instantaneous purchase by a sudden stimuli. (Telegraph, 2008)
Advertisement targeting teens:
Bold positive young women, curvy bottle shape with vivid red font usage
Re-inventing Shopping Experience
Shopping for fragrances must be made easier, and stores better modified to how consumers surf and buy. Research by Paris-based JMG Research implies that the consumer is looking for new retail platforms. She is looking for a new experience which is very reactive to new propositions. When something has gone out of the ordinary she'll buy, " says JMG Research controlling director Jrґme Goldberg.
New retail store formats have to be used like eliminating counters in department stores, merchandising by scent family or creating areas for replenishment for the buyer who is merely looking with the service. In a recent survey, most those questioned did want to see fragrances planned by brand, but 40% also said that they wish to see fragrances prepared by the way they smell. Many UK women middle older consumers now go in for a fragrance collection. This in essence tends these to become more brand dedicated.
"Perfume is mental and the industry must pay more focus on this rather talking about technical information. There needs to be beauty assistants who are helpful and proficient and not merely thrust the latest unveiling, " says John Ayres, director of UK-based perfume consultancy Pandora. Sales people should be doing much more educational selling rather than competitive as consumers have more options to choose from.
(Articles bottom part, 2007) Leaflets in containers should also contain information for the buyer on the fragrance, on how to wear and tips on fragrance layering and its own ingredients. This is standard for most prestige skincare brands. Also examples may be used to explain fragrance notes. http://www. bglam. com/wp-content/uploads/2009/12/discount-3. JPG
(Sample online perfume catalogue)
Another development is the moving away from category to mass stations for sale. UK consumers now like Tesco to specialised classes like shops.
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