Sie sind auf Seite 1von 16

De La Salle University Ramon V.

Del Rosario College of Business Management and Organization Department AY 2013-2014 - Term 3 A Case Study and Marketing Plan on HAYDEN FRAGRANCES

A Written Report Submitted in Partial Fulfilment Of the Course Requirements in Marketing Management (MKT511M)

Submitted to: Dr. Antonio V. Concepcion, MBA, DBA

Submitted by: GROUP 3 Itaralde, Mark Dean Macalino, Marc Artemio Pabalan, Danica

Submitted on: March 31, 2014

TABLE OF CONTENTS
I. II. III. IV. a. b. c. d. V. a. b. c. d. VI. 1. 2. 3. VII. Background of the Case ............................................................................................... 3 Statement of the Problem ............................................................................................. 4 Goals and Objectives .................................................................................................... 4 Areas of Consideration (Analysis ad Assumptions) ................................................... 4 SWOT Analysis .............................................................................................................. 4 STP (Segmentation, Target, Positioning) .................................................................... 5 4 Ps................................................................................................................................ 5 Ethical Issues in Marketing Communications ............................................................. 8 Decision Criteria ............................................................................................................ 9 Ease of implementation ................................................................................................ 9 Sustainability ................................................................................................................. 9 Marketing Costs ............................................................................................................ 9 Brand Awareness and Credibility................................................................................10 Alternative Courses Action: ........................................................................................10 Do Nothing ....................................................................................................................10 Re-brand the product with another name ...................................................................11 Strategic Expansion through improved communication ...........................................12 Recommendation and Action Plan ..............................................................................12

MARKETING PLAN..................................................................................................................14 a. b. i. ii. Industry Study ..............................................................................................................14 Marketing Mix Strategies and Programs.....................................................................15 STP Approach ...........................................................................................................15 4Ps of Marketing ......................................................................................................15

I.

Background of the Case

It is often said that sweet fragrance creates inspiration and heightens positivism. Perhaps one of the reasons why Filipinos remain positive and in the list of happiest countries in the world is the fact that it values smelling good and looking nice in the public. This assumption is best exemplified by a research conducted by Euromonitor International in June 2013 which concluded that even Filipino men are increasingly availing of grooming kits.1 Euromonitor Internationals June 2013 report on Fragrances in the Philippines assumed positive growth for perfume products in the Philippines that backed by improvement in the economic situation and Filipinos strong interest in maintaining proper hygiene as well as increasing demand for premium fragrances. The stronger competition in the category will encourage manufacturers to limit price increases, or even implement price cuts. Manufacturers will attract new consumers to try their products through the use of promotional pricing schemes. These will be more prevalent in mass fragrances, in which pricing is a key consideration in product purchases. It also has a high prospect for the industry considering the expansion of shopping malls and the establishment of department stores in more key cities which will provide premium brands with new markets in the forecast Hayden Fragrances is an innovation of Inovacao Da Vida, a Philippine-based company which is dedicated to enrich the lifestyles of its clients through the art and science of fragrances. The company is founded and is being managed by Dr. Hayden Kho, Jr., infamous for the series of sex videos scandals with several known female personalities in the country that wrecked his career as a medical practitioner.

Dr. Hayden Kho capitalized on his knowledge of beauty and fashion and positively pursued his further studies on perfume making and management in France. He brought with him this French understanding of fragrances to create his own brand of mass fragrance available for all genders. With just more than 2 years of presence in the country, it still has a long way to survive in this industry with a lot of competition not only from premium brands but also with several mass fragrance lines that are proliferating in the market.

June 2013; Euromonitor International. Passport: Mens Grooming in the Philippines

Alongside the objective of ensuring the marketability of Hayden Fragrances, this case will primarily tackle ethical issues involved in marketing communications. II. Statement of the Problem

What must Hayden Fragrances do to channel ethical marketing communications for its product considering the tarnished reputation of its founder and owner? III. IV.

Goals and Objectives

To ensure proper and ethical marketing communications for the product To increase its market share To strengthen brand equity alongside competitors To continue to serve the society To improve profit margin

Areas of Consideration (Analysis ad Assumptions)

a. SWOT Analysis

Popularity of the owner/manager Unique manufacturing process Strong partnerships and collaboration with Maldita and Ever Bilena

STRENGTHS

Knowledge of the perfume/fragrances Availability of the product on-line Tarnished reputation of the owner/ brand name High selling price Starting and competing with giant mass fragrances like Bench, Penshoppe, Joel Cruz and other celebrity endorsed perfumes

WEAKNESSES

Fan-base, regardless of tarnished reputation, owner has a niche with fans

OPPORTUNITIES

Partnerships with other fashion brands

Expansions in the provinces and international

Strong competitions Huge number of cheaper substitutes, even deodorants High costs of capital

THREATS

b. STP (Segmentation, Target, Positioning)


Segmentation Class D to Lower Class C and even Upper Class C. It targets young professionals who still cant afford the luxury and expensiveness of premium perfumes. Its product is meant to suit the different scent orientations and preferences of the consumers through several product lines and variations. HAYDEN is a collection of extraordinary fragrances created in collaboration with top perfumers in Paris, formulated to last longer in warmer climates. With its unique scent, elegant packaging and thoughtful presentation, each Hayden fragrance is an exceptional way to make your own personal statement, as well as the perfect pleasure to give, or to receive.

Target

Positioning

c. 4 Ps
Product For Her:

For Him

Purse Sprays:

Body Sprays:

The fragrances are developed to pay special attention to lasting, quality scents taking into consideration the countrys weather. The product is named after the owners and creator Hayden Kho, controversial and infamous given his relationship with Dr. Vicky Belo and his sex video scandals The packaging is elegantly and thoughtfully boxed, with a ribbon

Perfumes and body sprays are available in 60 ml and 120ml , while the purse sprays are available in 10ml variants, Price Purse sprays : 10 ml bottles are sold at P98.00 per bottle Perfumes: 60ml are sold at P380.00 per bottle 120ml are sold at P520.00 per bottle Body Sprays: 60ml are sold at P130.00 per bottle 120ml are sold at P230.00 per bottle The company has tied up with group buying sites which offers products at discounted rates. Place It is being sold at all Maldita branches nationwide and through Ever Bilena Direct Sales Channels apart from its companys stalls in several Ayala Malls, SM Malls and Robinsons malls. Promotion It has existing website, blog, multiply, facebook and twitter accounts It runs several promotions to group buying sites online while it has put up a very good launch at Greenbelt and traditional media mileage such as Billboards and newspaper print ads.

d. Ethical Issues in Marketing Communications


Marketing ethics addresses principles and standards that define acceptable conduct in the marketplace. (Ferrell)2 Some obvious ethical issues in marketing involve clear-cut attempts to deceive or take advantage of a situation. Some major ethical concerns regarding marketing programs generally are that: - Marketing causes people to buy more than they can afford. - Marketing increases the costs of goods and services - Marketing perpetuates stereotyping of males, females and various ethnic minorities. - Marketing creates offensive advertisements - Marketing creates advertisements linked to bad habits and intimate object subjects. - Marketing prepares deceptive and misleading advertisements C. Farell (2005) has devise the following framework to underscore ethics in marketing:

http://www.genderprinciples.org/resource_files/Marketing_Ethics.pdf

Individual Factors: moral philosophies and values

Stakeholder interests and concerns

Ethical issue intensity

Ethical decision

Evaluation of ethical outcomes

Individual Factors: moral philosophies and values

V.

Decision Criteria

a. Ease of implementation
This will pertain to how much change there will be in the organization and its operations once the alternative course of action is implemented. And in any business decision, cost will always be an important consideration especially for an organization that exists to generate profits for its stakeholders

b. Sustainability
Sustainability focuses on the long term impact of a business decision, which is a way to measure the stability of the solution. The goal is to ensure that Hayden Paris Fragrances stabilizes as a good consumer brand not just of value but of its effect to consumers. The decision should also prove to be manageable all throughout the time. It should not just be a current, one-time solution but a long-term workable decision for the management.

c. Marketing Costs
The decision must also ensure the least cost with the greatest marketing impact for the company 9

d. Brand Awareness and Credibility


The decision must come up with a solution that will further establish brand awareness and credibility for the company

Given the identified areas for consideration, the above decision criteria are given their corresponding weight as follows:

Decision Criteria Ease of Implementation Sustainability Marketing Costs Brand Awareness and Credibility TOTAL

Weight (in %) 10% 20% 20% 50% 100%

VI.

Alternative Courses Action:

1. Do Nothing

From the time that the company has started marketing and distributing the Hayden Paris Fragrances, it has continue to penetrate the market without any issue as to its ethical foundation. While the owner remains tangled with several judicial and gossip-made cases involving several sex video scandals he has been, there is an apparent acceptance of the brand considering several branches it has already set up and the partnership it was able to established. It also appears that Dr. Hayden Kho, given his charms and good looks remains to have a niche fan-based that is willing to considering using his perfume products.

10

PROS

CONS

ACA 1

No added cost for the company. No additional work nor manpower requirement No risk taken up

No growth potential if marketing will not be enhanced as well.

2. Re-brand the product with another name


In this alternative course of action, the company will consider renaming the product with a different name. This is to eliminate any direct connection with the owner so that the product can flourish on its own using other marketing techniques other than naming it through a popular celebrity.

PROS

CONS

ACA 2

Perfume products may be renewed as a brand on its own Haters of Hayden Kho, might blindly consider the new brand, not because of its relationship with the maker but because of its benefits as a particular brand

Cost will be huge considering that the re-branding will entail relaunch of the product as if it is a new product.

Risk of losing existing customers for the Hayden brand. Will entail a lot of work, from conceptualization to implementation. Including the branding, the packaging.

Can also change the pricing scheme of the brands. Considering the strong competition, this is an opportunity to understand the industry rates and base its pricing scheme thereto

No guaranty that it will no longer be tied to the owner, as the owner remains the same.

11

3. Strategic Expansion through improved communication

Capitalize on the value of renewal, positive change, and progress of Dr. Hayden Kho and its perfume products. Marketing may include press releases of the right apologies of Dr. Hayden Kho for its previous involvement in scandals and how is has been recuperating and his desire to change as a better person. This will only work if indeed Hayden Kho has found niche in this perfume business, has undergone change of lifestyle and is really trying to improve his life. Improve the product awareness through wholehearted support to community work, particularly to women and childrens welfare.

PROS

CONS

ACA 2

Capitalizing on theres goodness in every person is working on easily forgiving and forgetful Filipinos.

This can be an experiment without

assurance of real results.


May open the owners life for further

Filipinos normally forgive especially if they see sincere change in the person.
Cost for expansion will be minimal Chance for further opportunities No need to change the brand

bad publicity and criticisms.


There were victims who may not have

the heart to forgive as of the timing of this marketing strategy.

VII.

Recommendation and Action Plan

12

Decision Criteria Ease of Implementation (10%) Sustainability (30%) Marketing Costs (20%) Brand Awareness and credibility (40%) TOTAL

ACA 1: 10% 20% 15% 30% 75%

ACA 2: 6% 25% 10% 35% 76%

ACA 3: 10% 25% 20% 35% 90%

Basing on the above tabulation, ACA 3 is the best course of action. Hayden Paris Fragrance must capitalize strategically its marketing communication before further identifying key areas of expansion through improved market communication. Sometimes, showing the good side of th Dr. Hayden can allow forgiveness and certain improvement on his credibility to which his business are attached and affected.

The desire to change for the better can further enhance the value proposition as well of the product he is selling, as if persuading customers to believe that positive change can also improve their lives. Communication of the products value proposition will be improved in

potential target markets. Surveys and further market study will be conducted to identify which markets are open to the value of fresh, healthful products and once these areas are identified, partner distribution centers will be tapped to offer Gardenias products in said areas.

The process of doing this action plan will undergo internal and external decision-making processes. This will make sure that significant changes that will be done to the marketing of the product will have considerations of all the stakeholders.

INTERNAL Internal processes will include a planning session to be conducted by the Marketing team with the owner and through its public relations expert (either hired or serving a a consultant). Meeting will identify what is necessary communication to be relayed to everyone, what media to be used and how the process will be taken. 13

EXTERNAL Alongside, the Marketing and operations team must also be able to identify expansion opportunities for the company, either through partnerships with other brands or through direct selling and online opportunities

VIII.

Conclusion

The company is still in the growth stage, but what somehow is hindering its opportunity to grow is the direct relationship that is attached to the owners past and the products it is now endorsing and sharing to the public. Primary responsibilities for ethical behaviour reside within each of us when placed in any of the various marketing communications roles. We can take the easy route and do those things that are most expedient, or we can pursue the moral high road and treat customers in the same honest fashion that we expect to be treated. In large part, it is a matter of our own personal integrity. Integrity is perhaps the pivotal concept of human nature. Although difficult to precisely define, integrity involves avoiding deceiving others of behaving purely in an expedent fashion.

MARKETING PLAN

a.

Industry Study

According to Euromonitor International3, fragrance current value growth slightly contracts by 0.3% 2012, reaching Ps7.5 billion. Mass mens fragrances sees the most dynamic performance in 2012. Avon Cosmetics maintains its lead in fragrances with a 43% value share in 2012 and Finally fragrances is expected to see negligible but positive constant value growth in the forecast period, with a CAGR of less than 1% Current Product/Brand Situation
3

June 2013; Euromonitor International. Passport: Fragrances in the Philippines

14

Hayden Paris Fragrances is still on the initial growth stage. With a very strong competition coming from the presence of premium brands that readily attracts classes A & B, and mass fragrances that are proliferating right now to cover for Classes C & D, it has to work on a lot of aspects of its operations and particularly its marketing to enhance its market share.

b. Marketing Mix Strategies and Programs In order to market better its operations and marketing strategies, a few changes will have to be made on Hayden Paris Fragrances internal processes.

i. Segmentation

STP Approach While it will not be able to compete with internationally known premium brands to capture Classes A & B market, it can improve on its costing and pricing to target not just Class C but also Class D. This may include offering products in smaller variants, etc. Students, particularly, College and High School level are mostly on the period when they are more critical about their appearance and hygiene. Hayden Paris Fragrances can tap this market to further enhance profitability HAYDEN is a collection of extraordinary fragrances created in collaboration with top perfumers in Paris, formulated to last longer in warmer climates. With its unique scent, elegant packaging and thoughtful presentation, each Hayden fragrance is an exceptional way to make your own personal statement, as well as the perfect pleasure to give, or to receive. It can retain its existing positioning particularly that its value proposition is longer-lasting fragrance for warmer climates like the Philippines. 4Ps of Marketing Improved product offering to cater to Class D market by further retailing the product into smaller variant so that it comes within the budget of the Class D. Pricing strategy will be maintained Not too high to be considered expensive, nor too low to be considered cheap; Brand equity has also put justification as to the price of the products

Target

Positioning

ii. Product

Price

Place

Enhanced distribution through partnering with other fashion and clothing lines.

15

Promotion

Comprehensive in terms of media coverage (print, television and radio); Message on why the product is fresh will be strongly communicated and will be used as a key promotional tool in the expansion.

References Kotler and Feller (2011). Marketing Management 14th Edition. June 2013; Euromonitor International. Passport: Fragrances in the Philippines June 2013; Euromonitor International. Passport: Mens Grooming in the Philippines

16