A target market has also been chosen and studied and has appealed to the female racket. Market segmentation is also taken into consideration with the introduction of a new product as it identifies target markets by groups, which are identified by similar and distinguishable aspects while using the different segmentation groups.
The report focuses on a 'personal' profile of an individual from the target audience as well as using a score card approach along with perceptual mapping, which indicates what the strengths and weaknesses of the fragrance may be.The fourth section of the report focuses on the product itself as well as the different levels that are involved in guaranteeing that the product includes all complexities that encourage consumers to purchase the fragrance. The core, embodied and augmented levels of a product all have their own significant roles in the creation of a well-known brand. Giorgio Airman have considered whether keeping their obvious attributes or not for the packaging and the branding of their new fragrance would confuse consumers of this well-known brand.However the new fragrance may have a different look to It, but still has the Giorgio Airman logo to reassure loyal customers of the brand's integrity.
The fragrance will be classified as a premium fragrance, however Giorgio Airman have set their prices so that consumers that earn a medium income can also afford to purchase the new fragrance. This allows consumers with a medium to high income to afford the product depending on the size bottle they wish to purchase. Promotion of the fragrance Is needed and the use of the pull and push strategy Is used to convince the target audience to purchase the product.Promotional material such as billboards, advertisements on the television, 'pop-up' advertisements on the internet and advertisements in fashion magazines will be used to ensure publicity of the product and the report states how this will be achieved. Lastly, the distribution strategy is taken into consideration that involves the consistency of those of the competing suppliers. The places of distribution that Giorgio Airman will be Introducing Its new fragrance to will be discussed as well as the reasons behind the choice they have made to target certain wholesalers.
The second part of the report focuses on the selected target markets and a typical customer profile is used to define this. Product segmentation assists in defining which criteria the new fragrance will fall under and aspects such as income and personality of the consumer plays an important role in deciding which segment the product has the most influence on. Perceptual Mapping is the tool used to trigger discussions about the product and introduce strategic thinking as to how competing fragrances on the market compares to Armin's newest addition.The third section includes a perceptual map comparing the social appeal and value of the new product to other competing fragrances and brands. The fourth section focuses on the product itself and the different levels included within the product. The shape, design, recipes and packaging is provided in the report as well as the importance of branding and the reasons why Giorgio Airman need to ensure the brand's integrity.
In the last three sections of this report, pricing, promotion and distribution (place) have been discussed and highlighted. The use of objectives assists the plan for the future of Aqua Delmarva.For More information refer to Figure 2 in the appendix. 1 . Objectives I.
Marketing Objectives The marketing objectives are seen in figure 3 in the appendix. Below is a Giant chart, which plots the objectives over time. 2. Target Markets 3. 1 The Whole Market We will initially target the female market, with medium term expansion into the male and respective body care markets.
For more information refer to figure 4 in the appendix. A. The Female Market I. As of 2010 the Female Fragrance industry was worth an estimated IEEE million, recording 2. 4% growth on 2009.
Although the last two years have been a struggle for the Fragrance market, Premium and low cost Brands have remained stronger than Mass Brands. II. Economic recovery for all product markets is likely to be slow, but demographic factors appear to give the Fragrance market an edge, with 10. 6% growth up to 201 5 in the 25-34 age group.
This age group tends to experiment more between brands before moving to longer term Brand Loyalty and often own four or more refuses. Ill. Sales in the Fragrance industry have performed, on average, better than either Cosmetics or Toiletries. 005-2009 growth of 26% with Minute forecasting reasonable growth of 9% (excluding inflation) up to 201 5, taking the market to IEEE million (in current terms). 'V.
Although 3. 43 million (13. 1 of women in the I-J do not currently wear perfume, over two thirds who do emphasize the fact that they want to look and feel attractive, making fragrances a "need" purchase to help make them feel better in a time of economic uncertainty. This may be why although 2009 away a major cut in Fragrance Advertising, with many of the largest Fragrance manufacturers reducing advertising spend; 2010 has seen a growth in Fragrance buying behavior.
TGIF found that 48% of women who use fragrances feel they have "a very good sense of style". Brands that reinforce such positive feelings are more likely to be successful in an economic downturn. But, with buyer behavior focusing on price/quality factors the "middle" Market for Fragrances is currently struggling and may be vulnerable to decline. VI. The Internet is playing an increasingly important role with 15% of 25-44 year olds buying fragrances online.
This age group will grow to 201 5 and brands are beginning to respond via marketing in order to maximize sales.For instance, Women who use the internet for several hours a day own on average 4 more bottles of perfume. Online advertising may therefore be an important influence on female fragrance purchase and use. B. The Male Market This can be found in the appendix under figure 5.
3. 2 Market Segmentation Market segmentation (introduced to the market community by Wendell Smith in 1956) identifies target markets by groups, which are linked by similar and distinguishable aspects. The main segmentation groups are; cryptographic, geographic, demographic/socio-economic, behavioral and product-related.Segmentation Type I Description I Cryptographic Segmentation I Refers to people attaining similar personalities, values, interests, lifestyle or attitudes. I Geographic Segmentation I Looks into an individual's location, which would allow different areas to be segmented into groups.
I Demographic/socio-economic Segmentation I Segmentation contains many segments that an individual may be categorized into. This sector would include age, gender, household size, stage in the family life cycle, income, occupation, sexual orientation and education.I Behavioral Segmentation I Refers to people's relationship with the environment around them. This could therefore look at occasions people buy the product, benefit sought (what benefits people seek from a product), usage rate, user status (non-users, potential users, first-time users, regular users or ex-users), loyalty status, buyer readiness stage (looking at an individual's readiness to purchase a product). I Product-related Segmentation I Is looking at different people's relationships towards a product.
I 3. Potential Segmentation When looking at potential segmentations in relation to Giorgio Airman, it is clear hat the main segmentations need to be broken down. Generation X I Giorgio Airman has become one of the strongest luxury brands in the world and has made it known that generation x is one of their main target groups. I Cryptographic Segmentation I People consuming any particular fragrance would have similar lifestyles and interests, including as a main priority values would also have connections, as they would be willing to spend more for better perceived product quality.I Geographic Segmentation I Target market areas correlating either to significant Giorgio Airman product purchases or consumption of Premium Fragrances. For example areas in Italy may be seen to be in the target market, due to Giorgio Airman developing from this area.
I Demographic/ socio-economic Segmentation I This will be the main target market, as research shows that Giorgio Airman products are used the most among well educated and wealthy individuals.With 8 in 10 of 15-24 year olds using fragrances, we can identify this market with priority market potential. Figure 6 in the appendix shows the 15-24 market had the highest volume of sales in 2009. Demographics also tell us that full- time workers are responsible for a higher rate of fragrance sales than other worker roofs making them a priority marketing target. I Behavioral Segmentation I Giorgio Airman is a Premium Brand that partly relies on cryptographic segmentation aspects.
Price indexing, although high, tends not to exclude the mass market.Behavioral segregation by way of "occasional" behavior (Exam, Valentines, Birthdays etc) would also form a large proportion of the target market - see Figure 7 in the appendix which shows women receiving more fragrances for Christmas 7. 3% and Birthdays 6. 3% which are the most significant occasions. I Product-related segmentation I When looking at Figure 1 in the appendix it is clear that people have efferent relationships towards the perfumes they use.
For instance, 40% of females wear different fragrances for different occasions.This is a large proportion of perfume users, as is the "never leave the house without wearing it" (30%) both of whom we would wish to target. I 2. 4 Our Criteria In identifying our target market we have establish the following criteria: A. Demographic segmentation: variables used include age, sex, occupation, level of education, etc, many of which determine a buyer's ability to purchase a product or service. When looking at the age group that are more likely to purchase a Premium Fragrance, income for the consumption has to be considered due to the price indexing of the product.
B.Cryptographic segmentation: including an analysis of consumer activities, interests and behavioral patterns affecting both decision making and buying behavior. We believe that people will spend more on a product, not only for appearance and "feel-good" factors, but also due to peer pressure which can result in feelings of comfort and self-esteem. C. Behavioral segmentation: indicates who buys what, when and Spend.
It also categories the form of usage frequency, time of usage and the different usage situations under product usage analysis. Fragrances are often bought for special occasions and seasonally.Statistics show that the average 25-34 year old female using the internet for several hours a day will own four or more bottles of fragrance. This suggests that online advertising may influence the amount of fragrances women use. 2.
5 Our Criteria Applied to Potential Segments market that the perfume is aimed at. Income plays an important role in this structure as well as consumers can only purchase items if they are affordable, however the situation can be manipulated with the correct techniques as people have developed habit of purchasing their wants at almost the same level as their needs.Fragrances have always been classed as an item of desire and luxury, but in today's society individuals confuse what is necessary and purchase more than what is needed. 2. 6 Selected Target Markets and a 'Typical' customer Profile A.
The selected target markets for the product will be: l. Women aged 15-34, as women between 15-24 consume the most fragrances and 25-34 year olds own the most amount of fragrances products. II. Women that are working with an average to high income. Ill.
Women that care about their appearance and how they are presented. IV.Occasions will also be targeted; for example Christmas, Birthdays and Valentine's Day. B. A 'Typical' Customer Profile: The typical' customer profile for a fragrance consumer is female, aged 15-34, well educated and working with a sizeable income. They care about their appearance and will spend more to get better perceived quality.
They customer may also buy the fragrance as a gift for an occasion; buying the same quality products that they would desire for themselves for others too. 3. Perceptual Positioning Map Figure 9. Perceptual mapping of social appeal vs..
Distinction/valuePositioning can be seen as "The act of designing an offer so that it occupies a distinct and valued place in the minds of the target customers" (Kettle et al. , 1998) The key to the map can be found below Figure 9 in the appendices. "The marketing mix lies at the core of identifying your marketing strategy. It balances the key areas of marketing over which you have control, I.
E. Product, price, place, and promotion. " (Phil Stone, 2001, Page 53) When buying products consumers don't Just consider buying the simple function that the product offers but also go for the other complexities involved in the arches.These complexities form the product concept and consist of three main levels: 4. 1 Core Level New - An emotional benefit is a main factor in our product, scents trigger A. Emotion and research has shown that people that lack the ability to smell tend to live a less happy life.
Customers don't Just buy perfume for the smell, but also include other factors such as the desire to attract the opposite sex, in order to feel good about themselves, to follow fashion trends, and to feel superior.In addition to this core benefit, people are also attracted to the packaging, price, and also some of the psychosocial associations Common to other Brands - The usage of fragrance automatically impacts B. That feel good emotion. A particular fragrance can become the signature of a person who wears it regularly and can be found dabbing a drop of one or the other perfume to suit a mood, an outfit, or a season. Whatever the choice of choosing a particular perfume a woman can be guaranteed to be saying something about her with the choice made.
Most women want that to be the right choice and for it to be saying something good. Links between the benefits and features of the new product - The new c. Reduce features the same benefits as most brands, but its exclusivity lies in the fact that the perfume is based on the idea of love. Everyone wants to feel love or passion 4.
2 Embodied Level Shape, Design and Colors- The outer packaging will be a box in the colors of silver, with black borders and pink tables with the description of the ingredients, Airman, and the perfume on the inside of these tables.There will also be a heart shaped opening at the front of the box so that the consumer can see through to the bottle. The idea of this is to show the pureness of love. B.
The inner packing - he bottle - Will be a clear circular bottle in order for the consumer to see the red color of the perfume. Around the bottle will be an Italian inscription around the bottle- Due anima con ma UN pensioner nuncio, due curio chew Vivian come nun - which means "Two souls with but a single thought, Two hearts that beat as one". The lid will be a heart shaped stopper in silver. Recipes, formulae, or technical designs - The process of making a 4. Perfume consists of a series of stages that takes up to at least 8 months of continuous testing and modifications until the smell that is wanted is achieved. The ingredients list can be found in the appendix Figure 10.
4. 4 Packaging The shape and design of the box is shown in Figure 11 in the appendix, where the creation process is presented. 4. 5 Branding Creating brand names- The brand we are is already very much established. We represent the Giorgio Airman name.
Criteria and decision- The criteria used here was individual branding- a common policy of Giorgio Airman in order to allow for future expansion.If the brand fails or receives negative media, the other brands are not likely to be damaged. C. Logo etc- In the idea enervation and screening process of a new product development the concept of love was put forward.
To link in with the new launch of Aqua did Gig, we came with the theme of Aqua Delmarva - The Essence of Love. Augmented Level 4. 6 This level includes implications or satisfactions that may follow the post purchase process. It includes factors such as product guarantees and the overall perception of customer service.It is important for consumers to identify the new product to be one belonging to the brand that they trust, therefore Giorgio Airman need to ensure that the new fragrance still contain those major attributes that allow nonusers to identify it as their product.
Feedback and support are crucial during this level as a product could fail during its launch period if the correct procedures after its purchase are not followed. 5. 1 Pricing Objectives D. Recommended pricing Airman premium brands are focused at the mass market by price index with the exception of a few top end premiums such as Node Extras.It is the perception of brand quality and acceptance that sells Airman. The table below shows the recommended This objective has been chosen as a necessity due to the fact that our Airman product is highly differentiated from other products available in the market.
F. Brand Loyalty This will be done by sticking with are current pricing methods to remind customers that we believe in providing them with the best quality product that they can afford. G. Market Share Use the quality of the product and the price to entice the target market away from their normally preferred product and switch to using Airman products.
5. Pricing Strategies Airman has the association of providing premium brand products at a price that almost everyone can afford. This allows for deeper market penetration. There are a few competitor advantages that exist: It allows Airman to charge a premium product pricing is a technique where you use a high price, which is Justifiable as the product is unique and very high quality, and this is where this product falls under however he product has all the qualities of a premium product but without the price tag, this is done so that customers will prefer to buy Armin's fragrances then their competitors.
Pricing Techniques Many consumers assume that if the product they purchase is of high value, it reflects superior quality and distinction in comparison to its competitors. The pricing techniques used in order to achieve the prices shown above are based on looking at both competitor-orientated approach and value-orientated approach. The competitor-orientated approach is when a company sets their prices based on a competitors 'going rate'. Therefore the company will look at their competition to decide on their pricing, which is also known as 'me-too' pricing.
The value-orientated approach allows for Giorgio Airman to set its pricing at a level which consumers perceive the product to be off good value, but not necessarily cheaper. It is the perception of the brand quality and acceptance that sells Airman. 5. 4.
Internal and External Influences A. Internal Influences: I. Companies and marketing objectives. I'.
Price set by cost of making the product. Iii. Customer expectations are a prime external factor, as consumers may have an expected price for the female fragrance before they find out the actual price.This may affect their decision on buying the product as it may be beyond their expectation B. External Influences: I. Due to the current economical situation the current population find themselves in a situation where they cannot afford high prices for goods I'.
Due to the company's corporate responsibility we do not use animals to test are products this meant that the budget used for creating and testing the product was high. 6. Promotion Marketing communications, also known as promotion, is an activity that supports the racketing strategy and associated plan.