Gardenia - Case Study

8/9/2019 Gardenia - Case Study

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TABLE OF CONTENTS

I.Background of the Case .................................................................................................3

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

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

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

a& S'OT Anal#s s ................................................................................................................4

b& STP "Segmentat on( Target( Pos t on ng% ......................................................................5

c& ) P*s ..................................................................................................................................5

d& Eth cal +ssues n ,arket ng Commun cat ons ..............................................................8

V. -ec s on Cr ter a .............................................................................................................9a& Ease of m$lementat on ..................................................................................................9

b& Susta nab l t# ...................................................................................................................9

c& ,arket ng Costs ..............................................................................................................9

d& Brand A.areness and Cred b l t# ................................................................................10

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

0& -o Noth ng ..................................................................................................................... 10

1& 2e3brand the $roduct . th another name ....................................................................11

4& Strateg c E5$ans on through m$ro!ed commun cat on ...........................................12

VII. 2ecommendat on and Act on Plan ..............................................................................12

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

a& +ndustr# Stud# ...............................................................................................................14

b& ,arket ng , 5 Strateg es and Programs .....................................................................15

& STP A$$roach ............................................................................................................15

& )P*s of ,arket ng .......................................................................................................15

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+& 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 increasingdemand 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 hisf!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

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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

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• :ni !e man!fact!ring process

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


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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

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For +im

P!rse ;prays

B


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Pr ce P!rse sprays 10 m #ott es are so d at P98.00 per #ott ePerf!mesB0m are so d at P380.00 per #ott e120m are so d at P520.00 per #ott e


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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 Factorsmora phi osophies and


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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#


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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

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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.

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PD ; = @;

6=62

• =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


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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 growis 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

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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


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& )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

Gardenia - Case Study

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