The purpose of this report is to make an analysis of the luxury fragrance market and, after this said analysis, to propose some strategies to the D'Orsay rare fragrance company so that they might improve their financial and marketing performances. The use of the term 'luxury fragrance', or 'fragrance', is important, as perfume can not only be taken to relate only to women, whilst men could be said to wear cologne, but also, with relation to the D'Orsay group, to not include 'fragrances for the home' and 'eau de toilette'. . For the purposes of simplicity, therefore, perfume' shall be used to refer to the luxury fragrances used by men and women. This does not include eau de toilette and home fragrances, and fragrances' will be used to refer to all three luxury fragrance groups. In the first part of this report, it is possible to find an analysis of the fragrance industry in France. Key factors are taken into account, including the market size, in which sales increased by 6% in 2006, and developments, like the growth in the consumption of male perfumes by 5.9% that year.
[...] The brand seems to have a very well organised communication and marketing strategy. They do online sale, and provide promotion for their customers. Hermes One Luxury brand specialised in fashion. But since many years Hermes has started to commercialise its own perfumes, that we can considerate as rare and luxury perfume. As many Luxury and fashion brand (Chanel, Lancôme ) those brands are serious competitors of Parfums d'Orsay. Sephora Sephora is a distribution chain specialised in beauty accessories, perfume, cosmetics and care. [...]
[...] Based on a comparison of the information provided and from personal observation, it could be said that general perfume products, take for example the number 1 selling Chanel no 5 at for 100ml in Prentemps at Havre Caumartin in Paris against Femme de Dandy which only sells at for 100ml, are superior products. It is acknowledged that store rents and pricing policies have an effect on this, but it should not be ignored that this may be unknown to customers and influence their perceptions of the D'Orsay brand based on price comparisons. [...]
[...] An analysis of D'Orsay's current situation along the marketing mix with a Strength to Opportunity, Weakness to Threat assessment will be given, followed by a defined objective and possible strategies to achieve this. Finally, recommendations are proposed on which with reference to the above mentioned strategies. Part 1 Description of the luxury perfume market Market size and market developments Market size: In France, the fragrance industry is the biggest revenue earner in the sector of Cosmetics worth 6.5 billion in 2004. [...]
[...] You can choose to target a specific brand and apply a skimmking policy but you have to be identifiable. Those differences are weaknesses and we will see later how we can work on them. Consumer segments and consumer buying behaviour In terms of consumer segments and consumer buying behaviour for luxury fragrances, it can be said that there are certain factors which are more important to luxury fragrance consumers than other personal luxury product consumers. It is also important to bear in mind the emerging ‘new-luxury', Danzinger (2005), and the ‘mass affluence', described by Nunes and Johnson (2004), are potential segments that currently exist in the market, and that shall probably continue to do so. [...]
[...] Based on the aforementioned information, a possible marketing objective for D'Orsay could be: How to make the marketing of the brand more efficient without devaluating the image? The importance is that current performance improves without having a negative future effect, of entering a downward spiral. Development a marketing strategy for the luxury perfume brand, d'orsay paris Product Strategy Packaging could be changed as a means to communicate a more luxurious experience. This would be a an improvement on the old fashioned packaging that may be described as not being adapted to the ‘new-luxury' standards of ‘fantasy', ‘dream' and ‘experience' consumption. [...]
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