Marketing Communications Management for a New Brand of Perfume Research Proposal

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Marketing Communications Management for a new brand of perfume

Marketing Communications Management for Paradise Perfume

The modern day global trend seems to be that of creating a free international market place, in which the commodities are sold without regulation and intervention from the government and in which the economic rules are the dominant ones. Despite tremendous efforts, such a marketplace has yet to materialize. But globalization has nevertheless allowed economic agents to transcend boundaries and benefit from the comparative advantages of other countries. The real growth opportunities of economic agents are supported by the ability to transcend boundaries and introduce the product onto a wider consumer market.

The perfume industry is one in which the forces of globalization are extremely sensitive as they have allowed the economic agents to spread their presence Earth wide. This has led to the growth and development of the industry. Aside globalization however, the development of the industry is also pegged to a series of managerial efforts, including the understanding of the environment, the creation of a product to serve the needs of a specific target market, or the sustained marketing efforts.

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The scope of this research proposal then is that of correlating the marketing efforts with the launch of a new perfume. Paradise Perfume is the fragrance to be launched latter this year in the United States of America. During early 2011, the Paradise Perfume would also be launched within the United Kingdom. In order to ensure a successful launch, it is necessary to develop an adequate marketing communications program. This project proposes several elements considered pivotal in the required marketing program.

2. Situation analysis

Research Proposal on Marketing Communications Management for a New Brand of Perfume Assignment

The situation analysis -- or situational analysis -- is the first and one of the most important components of a marketing plan. Its importance is given by the fact that it assesses both the internal factors within the organization, as well as the external factors. The internal factors reveal the real and potential existence of organizational strengths and weaknesses, whereas the external factors reveal the existence of real or perceived threats and opportunities. The ability to address all these issues is the number one reason as to why the situational analysis is perceived as the "foundation of the strategic planning process of [the] marketing plan" (Milne, 2008).

The situation analysis for the Paradise Perfume is constituted from the gradual assessment of three major components -- the external factors particular to the industry, the company and the market. Each of these proposed topics is discussed below:

2.1 External factors

The perfume industry is an extremely competitive one and the central element is that of secrecy. Even in its early times, the perfume creators would not reveal their ingredients. Today, the United States legislation does not allow for the patenting of perfumes. This virtually increases the risk of uniqueness loss. In response to this threat, most perfume creators are formed as private institutions, in which information is strictly controlled. The potential damage of industry espionage is rather increased as it could materialize in the final bankruptcy of the organization. As a result, companies select a limited number of people to know the recipe for the perfume.

The decision of most perfume manufacturers to become constructed as private institutions materializes in a series of disadvantages, one of them being a restricted access to financial resources. When the company strives to increase its borrowed capitals through the issuing of stock, it has to go public. Going public however implies a series of complexities. On the one hand, there is the loss of control in the meaning that stockowners have the ability to influence managerial decisions. On the other hand, there is the significantly increased effort pegged to the necessity of constructing more reports and presenting more company information to the public. Shannon L. Karppinen explains:

"Boards make decisons regarding top management. It is because of these relationships that public companies must produce certain documents. One of these documents, the 10-K form, requires the company to reveal aspects about itself in order to educate prospective stock puchasers. They must define their business looking at the markets they are in, the products they sell, new developments in these areas, the lines of distribution that they use, the purchases of material used to make their products, the competition that they face, and such. They must state which accounting policies they use in determining their financial figures. Public companies produce quarterly and annual financial reports in order to keep their stockholders abreast of their performance. In this sense, public companies have to provide a lot of information. It is time-consuming and it creates public scrutiny as the company itself becomes a product on the market" (Karppinen).

At the level of industry players, the ultimate success is given by the ability to effectively commercialize the products, as well operate in an overall efficient manner. Large size companies benefit from their creation of scale economies, whereas smaller size companies compete in lower size markets, in niche segments by selling specific products (Hoovers, 2010). The top two competitors Paradise Perfume is facing are DKNY Perfume and CK Perfume. Each of these competitors would be assessed throughout the following sections of the proposal.

2.2 Company analysis

Paradise Perfume is a startup organization, which means that it faces a series of barriers. The company is nevertheless committed to its purpose and reveals a series of internal strengths which would help it attain its final purpose. These specifically include the following:

Highly skilled and committed staff members

A strong secret recipe and a high quality product

A strong understanding of the environment and the ability to develop tailored strategies

Aside from these advantages, however, Paradise Perfume also reveals a series of disadvantages, as follows:

Lack of expertise in the perfume industry

Limited financial resources, and Low levels of operational efficiency

Perfume Paradise was opened two years ago and it has launched a series of products which retrieved successful outcomes in the local market. The organization has used an indirect distribution system through which the perfumes would be sold to local stores, from where they would reach the final consumer. It sells in a niche sector and it generally targets consumers in the average income economic sector.

2.3 Market analysis

A primary component of the market analysis is constituted by the demand for perfumes. This is pegged to demographic changes, as well as the economic climate. For instance, as the women became emancipated and as more men are becoming metrosexuals, the demand for perfumes and other cosmetics products increased. Additionally, with the growth of the economy, the purchasing powers of the populations increased and the demand for perfumes also grew.

In terms of the relationship between consumers and manufacturers, this has evolved in the negative direction as that desired by the economic agents. The perfume industry is estimated at $25 billion, but its results and importance are among the lowest in the overall cosmetics industry. The consumers lack consistency and loyalty towards the manufacturer and the sense of novelty primes that of loyalty. Specifically, as a new fragrance is launched into the stores, the individuals cannot wait to purchase and use it. However, by the time that bottle is over, they will purchase a new one, which has recently been launched. And this trend is not only obvious among the younger consumers, but also among the more mature and even senior consumer markets. The situation translates into a product's average shelf life of three years. In order to increase the loyalty to a brand, economic agents have developed marketing campaigns in which celebrities such as Jennifer Lopez or Britney Spears promoted the respective perfumes. The popularity of the respective perfumes registered increases in the period immediate to the marketing campaigns, but this popularity was however short lived.

A noteworthy trend is the decision of perfume manufacturers to use the past fragrances to make new ones. Softer versions of past perfumes are as such launched, or the past fragrance is used to create other consumer products, such as scented candles or air fresheners. "Scented candles, perfumes for interiors and linens have become a huge home fashion market associated with lifestyle moods and fragrant environments with a feel good factor. It is driven by consumers who want to cocoon at home whilst experiencing relaxation and mood enhancement" (Weston Thomas).

3. Donna Karan New York

The analysis of the two main competitors is structures onto five distinct topics as follows: overview, segmentation, targeting, positioning and communications strategy. Each of the sections is important to help understand the setting of the competition, as well as the threat it poses for Paradise Perfume.

3.1 Overview

Donna Karan New York is mostly renowned for its clothing lines, perfumes not being the company's primary product. The organization operates in the upscale industry and uses both intermediaries, as well as its own stores to sell to consumers. As of 2001, the company was purchased by Louis Vuitton Moet Hennessey (LVMH), but the artistic control which ensures brand strength is still in the… [END OF PREVIEW] . . . READ MORE

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