Gardenia - Case Study

TABLE OF CONTENTS TABLE OF CONTENTS

I.

I. BackgrounBackground of d of the Casethe Case...3...3

II.

II. Statement of the ProblemStatement of the Problem...4...4

III.

III. Goals and Object!esGoals and Object!es...4...4

IV

IV.. Areas of Consderaton "Anal#ss ad Assum$tons%Areas of Consderaton "Anal#ss ad Assum$tons% ...4...4 a

a&& SS''OOT T AAnnaall##ssss...4...4 b&

b& STSTP "SeP "Segmegmentantatoton( Tn( Taargerget( Post( Posttononng%ng%...5...5 c

c&& ) ) PP**ss...5...5 d&

d& EthEthcacal +ssl +ssueues n ,as n ,arkrketetng Cong Commummuncncatatonsons...8...8

V

V.. -ecson Crtera-ecson Crtera...9...9 a&

a& EaEase se of of mm$$lelemementntatatoonn...9...9 b

b&& SSuusstatannaabblltt##...9...9 c

c&& ,,aarrkkeettnng Cg Coossttss...9...9 d&

d& BraBrand nd AA.ar.areneness ess anand d CreCredbdbllt#t#...10...10

VI.

VI. Alternat!e Courses Acton/Alternat!e Courses Acton/...10...10 0

0&& --o o NNootthhnngg... 1010 1&

1& 2e2e3br3branand td the he $ro$roduduct ct .t.th ah anotnotheher nr namamee...11...11 4&

4& StraStrategtegc c E5$E5$ansanson on throuthrough gh m$rm$ro!eo!ed d commcommuncuncatoatonn...12...12

VII.

VII. 2ecommendaton and Acton Plan2ecommendaton and Acton Plan...12...12 ,A26ET+NG PLAN

,A26ET+NG PLAN...14...14 a

a&& ++nndduussttrr# # SSttuudd##...14...14 b&

b& ,ar,arkeketntng ,g ,5 S5 Stratrategteges es and and PrProgrogramamss...15...15 && SSTTP P AA$$$$rrooaacchh...15...15 && ))PP**s s oof f ,,aarrkkeettnngg...15...15

1 1

+& Background of the Case

It is often said that sweet fragrance creates inspiration and heightens positivism. Perhaps one of  the reasons why Fiipinos remain positive and in the ist of happiest co!ntries in the word is the fact that it va!es smeing good and oo"ing nice in the p!#ic. $his ass!mption is #est e%empified #y a research cond!cted #y &!romonitor Internationa in '!ne 2013 which conc!ded that even Fiipino men are increasingy avaiing of grooming "its.1

&!romonitor Internationa(s '!ne 2013 report on Fragrances in the Phiippines ass!med positive growth for perf!me prod!cts in the Phiippines that #ac"ed #y improvement in the economic sit!ation and Fiipino(s strong interest in maintaining proper hygiene as we as increasing demand for premi!m fragrances. $he stronger competition in the category wi enco!rage man!fact!rers to imit price increases) or even impement price c!ts. *an!fact!rers wi attract new cons!mers to try their prod!cts thro!gh the !se of promotiona pricing schemes. $hese wi #e more prevaent in mass fragrances) in which pricing is a "ey consideration in prod!ct p!rchases. It aso has a high prospect for the ind!stry considering the e%pansion of shopping mas and the esta#ishment of department stores in more "ey cities which wi provide premi!m #rands with new mar"ets in the forecast

+ayden Fragrances is an innovation of Inovacao ,a -ida) a Phiippine#ased company which is dedicated to enrich the ifestyes of its cients thro!gh the art and science of fragrances. $he company is fo!nded and is #eing managed #y ,r. +ayden /ho) 'r.) infamo!s for the series of  se% videos scandas with severa "nown femae personaities in the co!ntry that wrec"ed his career as a medica practitioner.

,r. +ayden /ho capitaied on his "nowedge of #ea!ty and fashion and positivey p!rs!ed his f!rther st!dies on perf!me ma"ing and management in France. +e #ro!ght with him this French !nderstanding of fragrances to create his own #rand of mass fragrance avaia#e for a genders. ith !st more than 2 years of presence in the co!ntry) it sti has a ong way to s!rvive in this

1'!ne 2013 &!romonitor Internationa. Passport *en(s rooming in the Phiippines

ind!stry with a ot of competition not ony from premi!m #rands #!t aso with severa mass fragrance ines that are proiferating in the mar"et.

 6ongside the o#ective of ens!ring the mar"eta#iity of +ayden Fragrances) this case wi primariy tac"e ethica iss!es invoved in mar"eting comm!nications.

++& Statement of the Problem

hat m!st +ayden Fragrances do to channe ethica mar"eting comm!nications for its prod!ct considering the tarnished rep!tation of its fo!nder and owner7

+++& Goals and Object!es

• $o ens!re proper and ethica mar"eting comm!nications for the prod!ct • $o increase its mar"et share

• $o strengthen #rand e!ity aongside competitors • $o contin!e to serve the society

• $o improve profit margin

+7& Areas of Consderaton "Anal#ss ad Assum$tons%

a& S'OT Anal#ss

ST2ENGT8S • Pop!arity of the ownermanager

• :ni!e man!fact!ring process

• ;trong partnerships and coa#oration with *adita and &ver 

<iena

• /nowedge of the perf!mefragrances

•  6vaia#iity of the prod!ct onine

'EA6NESSES

• $arnished rep!tation of the owner #rand name

• +igh seing price

• ;tarting and competing with giant mass fragrances i"e <ench)

Penshoppe) 'oe =r! and other cee#rity endorsed perf!mes

OPPO2T9N+T+ES

• Fan#ase) regardess of tarnished rep!tation) owner has a niche

with fans

• Partnerships with other fashion #rands

• &%pansions in the provinces and internationa

 T82EATS • ;trong competitions

• +!ge n!m#er of cheaper s!#stit!tes) even deodorants

• +igh costs of capita

b& STP "Segmentaton( Target( Postonng%

Segmentaton =ass , to >ower =ass = and even :pper =ass =.

Target It targets yo!ng professionas who sti can(t afford the !%!ry and e%pensiveness of premi!m perf!mes. Its prod!ct is meant to s!it the different scent orientations and preferences of the cons!mers thro!gh severa prod!ct ines and variations.

Postonng +6?,&@A is a coection of e%traordinary fragrances created in coa#oration with top perf!mers in Paris) form!ated to ast onger in warmer cimates. ith its !ni!e scent) eegant pac"aging and tho!ghtf! presentation) each +aydenA fragrance is an e%ceptiona way to ma"e yo!r own persona statement) as we as the perfect peas!re to give) or to receive.

c& ) P*s

Product For +er

For +im

P!rse ;prays

<ody ;prays

$he fragrances are deveoped to pay specia attention to asting) !aity scents ta"ing into consideration the co!ntry(s weather.

$he prod!ct is named after the owners and creator +ayden /ho) controversia and infamo!s given his reationship with ,r. -ic"y <eo and his se% video scandas

$he pac"aging is eeganty and tho!ghtf!y #o%ed) with a ri##on

Perf!mes and #ody sprays are avaia#e in B0 m and 120m ) whie the p!rse sprays are avaia#e in 10m variants)

Prce  P!rse sprays  10 m #ottes are sod at P98.00 per #otte Perf!mes

B0m are sod at P380.00 per #otte 120m are sod at P520.00 per #otte <ody ;prays

B0m are sod at P130.00 per #otte 120m are sod at P230.00 per #otte

$he company has tied !p with gro!p #!ying sites which offers prod!cts at disco!nted rates.

Place It is #eing sod at a *adita #ranches nationwide and thro!gh &ver  <iena ,irect ;aes =hannes apart from its company(s stas in severa  6yaa *as) ;* *as and Do#insons mas.

Promoton It has e%isting we#site) #og) m!tipy) face#oo" and twitter acco!nts It r!ns severa promotions to gro!p #!ying sites onine whie it has p!t !p a very good a!nch at reen#et and traditiona media mieage s!ch as <i#oards and newspaper print ads.

d& Ethcal +ssues n ,arketng Communcatons

*ar"eting ethics addresses principes and standards that define accepta#e cond!ct in the mar"etpace. EFerre2 _{;ome o#vio!s ethica iss!es in mar"eting invove cearc!t attempts to}

deceive or ta"e advantage of a sit!ation. ;ome maor ethica concerns regarding mar"eting programs generay are that

 *ar"eting ca!ses peope to #!y more than they can afford.  *ar"eting increases the costs of goods and services

 *ar"eting perpet!ates stereotyping of maes) femaes and vario!s ethnic minorities.  *ar"eting creates offensive advertisements

 *ar"eting creates advertisements in"ed to #ad ha#its and intimate o#ect s!#ects.  *ar"eting prepares deceptive and miseading advertisements

=. Fare E2005 has devise the foowing framewor" to !nderscore ethics in mar"eting

2 httpwww.genderprincipes.orgreso!rceGfies*ar"etingG&thics.pdf 

8 Individ!a Factors

mora phiosophies and va!es &thica decision &thica iss!e intensity ;ta"ehoder  interests and concerns &va!ation of ethica o!tcomes

7& -ecson Crtera a& Ease of m$lementaton

$his wi pertain to how m!ch change there wi #e in the organiation and its operations once the aternative co!rse of action is impemented. 6nd in any #!siness decision) cost wi aways #e an important consideration especiay for an organiation that e%ists to generate profits for its sta"ehoders

b& Sustanablt#

;!staina#iity foc!ses on the ong term impact of a #!siness decision) which is a way to meas!re the sta#iity of the so!tion. $he goa is to ens!re that +ayden Paris Fragrances sta#iies as a good cons!mer #rand not !st of va!e #!t of its effect to cons!mers. $he decision sho!d aso prove to #e managea#e a thro!gho!t the time. It sho!d not !st #e a c!rrent) onetime so!tion #!t a ongterm wor"a#e decision for the management.

c& ,arketng Costs

$he decision m!st aso ens!re the east cost with the greatest mar"eting impact for the company

9 Individ!a Factors

d& Brand A.areness and Credblt#

$he decision m!st come !p with a so!tion that wi f!rther esta#ish #rand awareness and credi#iity for the company

iven the identified areas for consideration) the a#ove decision criteria are given their  corresponding weight as foows

-ecson Crtera 'eght "n :%

Ease of +m$lementaton 0;:

Sustanablt# 1;:

,arketng Costs 1;:

Brand A.areness and Credblt# <;:

TOTAL 0;;:

7+& Alternat!e Courses Acton/

0& -o Nothng

From the time that the company has started mar"eting and distri#!ting the +ayden Paris Fragrances) it has contin!e to penetrate the mar"et witho!t any iss!e as to its ethica fo!ndation. hie the owner remains tanged with severa !dicia and gossipmade cases invoving severa se% video scandas he has #een) there is an apparent acceptance of the #rand considering severa #ranches it has aready set H!p and the partnership it was a#e to esta#ished. It aso appears that ,r. +ayden /ho) given his charms and good oo"s remains to have a niche fan#ased that is wiing to considering !sing his perf!me prod!cts.

PD; =@;

 6=6 1 • @o added cost for the company.

• @o additiona wor" nor manpower 

re!irement

• @o ris" ta"en !p

• @o growth potentia if mar"eting wi

not #e enhanced as we.

2. _{2e3brand the $roduct .th another name}

In this aternative co!rse of action) the company wi consider renaming the prod!ct with a different name. $his is to eiminate any direct connection with the owner so that the prod!ct can

fo!rish on its own !sing other mar"eting techni!es other than naming it thro!gh a pop!ar  cee#rity.

PD; =@;

 6=6 2

• Perf!me prod!cts may #e renewed as

a #rand on its own

• +aters of +ayden /ho) might #indy

consider the new #rand) not #eca!se of its reationship with the ma"er #!t #eca!se of its #enefits as a partic!ar #rand

• =an aso change the pricing scheme

of the #rands. =onsidering the strong competition) this is an opport!nity to !nderstand the ind!stry rates and #ase its pricing scheme thereto

• =ost wi #e h!ge considering that

the re#randing wi entai re a!nch of the prod!ct as if it is a new prod!ct.

• Dis" of osing e%isting c!stomers

for the +ayden #rand.

• i entai a ot of wor") from

concept!aiation to

impementation. Inc!ding the #randing) the pac"aging.

• @o g!aranty that it wi no onger

#e tied to the owner) as the owner remains the same.

4&Strategc E5$anson through m$ro!ed communcaton

=apitaie on the va!e of renewa) positive change) and progress of ,r. +ayden /ho and its perf!me prod!cts. *ar"eting may inc!de press reeases of the right apoogies of ,r. +ayden /ho for its previo!s invovement in scandas and how is has #een rec!perating and his desire to change as a #etter person. $his wi ony wor" if indeed +ayden /ho has fo!nd niche in this perf!me #!siness) has !ndergone change of ifestye and is reay trying to improve his ife. Improve the prod!ct awareness thro!gh whoehearted s!pport to comm!nity wor") partic!ary to women and chidren(s wefare.

PD; =@;

 6=6 2

• =apitaiing on Jthere(s goodness in

every personK is wor"ing on easiy forgiving and forgetf! Fiipinos. Fiipinos normay forgive especiay if  they see sincere change in the person.

• =ost for e%pansion wi #e minima

•  =hance for f!rther opport!nities

• @o need to change the #rand

• $his can #e an e%periment

witho!t ass!rance of rea res!ts.

• *ay open the owner(s ife for 

f!rther #ad p!#icity and criticisms.

• $here were victims who may not

have the heart to forgive as of the timing of this mar"eting strategy.

7++& 2ecommendaton and Acton Plan

-ecson Crtera ACA 0/ ACA 1/ ACA 4/

Ease of +m$lementaton "0;:% 0;: =: 0;:

Sustanablt# "4;:% 1;: 1<: 1<:

,arketng Costs "1;:% 0<: 0;: 1;:

Brand A.areness and credblt# ");:% 4;: 4<: 4<:

TOTAL ><: >=: ?;:

<asing on the a#ove ta#!ation) 6=6 3 is the #est co!rse of action. +ayden Paris Fragrance m!st capitaie strategicay its mar"eting comm!nication #efore f!rther identifying "ey areas of  e%pansion thro!gh improved mar"et comm!nication. ;ometimes) showing the good side of th ,r. +ayden can aow forgiveness and certain improvement on his credi#iity to which his #!siness are attached and affected.

$he desire to change for the #etter can f!rther enhance the va!e proposition as we of the prod!ct he is seing) as if pers!ading c!stomers to #eieve that positive change can aso improve their ives. =omm!nication of the prod!ct(s va!e proposition wi #e improved in potentia target mar"ets. ;!rveys and f!rther mar"et st!dy wi #e cond!cted to identify which mar"ets are open to the va!e of fresh) heathf! prod!cts and once these areas are identified) partner distri#!tion centers wi #e tapped to offer ardenia(s prod!cts in said areas.

$he process of doing this action pan wi !ndergo interna and e%terna decisionma"ing processes. $his wi ma"e s!re that significant changes that wi #e done to the mar"eting of the prod!ct wi have considerations of a the sta"ehoders.

INTERNAL

Interna processes wi inc!de a panning session to #e cond!cted #y the *ar"eting team with the owner and thro!gh its p!#ic reations e%pert Eeither hired or serving a a cons!tant. *eeting wi identify what is necessary comm!nication to #e reayed to everyone) what media to #e !sed and how the process wi #e ta"en.

EXTERNAL

 6ongside) the *ar"eting and operations team m!st aso #e a#e to identify e%pansion opport!nities for the company) either thro!gh partnerships with other #rands or thro!gh direct seing and onine opport!nities

7+++& Concluson

$he company is sti in the growth stage) #!t what somehow is hindering its opport!nity to grow is the direct reationship that is attached to the owner(s past and the prod!cts it is now endorsing and sharing to the p!#ic. Primary responsi#iities for ethica #ehavio!r reside within each of !s when paced in any of the vario!s mar"eting comm!nications roes. e can ta"e the easy ro!te and do those things that are most e%pedient) or we can p!rs!e the mora high road and treat c!stomers in the same honest fashion that we e%pect to #e treated. In arge part) it is a matter of  o!r own persona integrity. Integrity is perhaps the pivota concept of h!man nat!re. 6tho!gh diffic!t to precisey define) integrity invoves avoiding deceiving others of #ehaving p!rey in an e%pedent fashion.

,A26ET+NG PLAN

a& +ndustr# Stud#

 6ccording to &!romonitor Internationa3

) fragrance c!rrent va!e growth sighty contracts #y 0.3L 2012) reaching PsC.5 #iion. *ass men(s fragrances sees the most dynamic performance

3 '!ne 2013 &!romonitor Internationa. Passport Fragrances in the Phiippines

in 2012. 6von =osmetics maintains its ead in fragrances with a 43L va!e share in 2012 and Finay fragrances is e%pected to see negigi#e #!t positive constant va!e growth in the forecast period) with a =6D of ess than 1L

Current Product@Brand Stuaton

+ayden Paris Fragrances is sti on the initia growth stage. ith a very strong competition coming from the presence of premi!m #rands that readiy attracts casses 6 M <) and mass fragrances that are proiferating right now to cover for =asses = M ,) it has to wor" on a ot of  aspects of its operations and partic!ary its mar"eting to enhance its mar"et share.

b& ,arketng ,5 Strateges and Programs

In order to mar"et #etter its operations and mar"eting strategies) a few changes wi have to #e made on +ayden Paris Fragrances interna processes.

& STP A$$roach

Segmentaton hie it wi not #e a#e to compete with internationay "nown premi!m #rands to capt!re =asses 6 M < mar"et) it can improve on its costing and pricing to target not !st =ass = #!t aso =ass ,. $his may inc!de offering prod!cts in smaer variants) etc.

Target ;t!dents) partic!ary) =oege and +igh ;choo eve are mosty on the period when they are more critica a#o!t their appearance and hygiene. +ayden Paris Fragrances can tap this mar"et to f!rther enhance profita#iity

Postonng +6?,&@A is a coection of e%traordinary fragrances created in coa#oration with top perf!mers in Paris) form!ated to ast onger in warmer cimates. ith its !ni!e scent) eegant pac"aging and tho!ghtf! presentation) each +aydenA fragrance is an e%ceptiona way to ma"e yo!r own persona statement) as we as the perfect peas!re to give) or to receive.

It can retain its e%isting positioning partic!ary that it(s va!e

proposition is ongerasting fragrance for warmer cimates i"e the Phiippines.

& )P*s of ,arketng

Product Improved prod!ct offering to cater to =ass , mar"et #y f!rther retaiing the prod!ct into smaer variant so that it comes within the #!dget of the =ass ,.

Prce Pricing strategy wi #e maintained H @ot too high to #e considered e%pensive) nor too ow to #e considered cheap <rand e!ity has aso p!t !stification as to the price of the prod!cts

Place &nhanced distri#!tion thro!gh partnering with other fashion and cothing ines.

Promoton =omprehensive in terms of media coverage Eprint) teevision and radio *essage on why the prod!ct is JfreshK wi #e strongy comm!nicated and wi #e !sed as a "ey promotiona too in the e%pansion.

2eferences

/oter and Feer E2011. *ar"eting *anagement 14th _&dition.

'!ne 2013 &!romonitor Internationa. Passport Fragrances in the Phiippines '!ne 2013 &!romonitor Internationa. Passport *en(s rooming in the Phiippines