Marketing Mix within the Perfume Industry.

Marketing can be defined as the creation, distribution, promotion and pricing of goods and services (Dibb, Simkin, Pride, Ferrell, 2016).
This post will look at how the Perfume Industry has made use of the Marketing Mix. Through marketing the perfume industry has transformed perfume for a luxury purchase into a part of day-to-day purchasing.

The Marketing Mix
The 4P's:
- Product- To understand the unique selling points of the product and to identify the products buyers.
- Price- How much the buyer is expected to pay and how the price will affect the sale of the products.
- Place- To understand the importance of distribution and the location that will sell the product best.
- Promotion- To plan how the product/service will be advertised, promoted and sold.

Each P is key to understanding how to make a product or service successful. Although the 4Ps are the focus of the Marketing Mix it can be said that there are 7P's.

The 7P's:
- People- establishing a target market and understand who your demographic is.
- Process- To insure the marketing strategy can be carried out and cost effective
- Physical evidence- Branding, evidence of a lasting impression on the consumer.

(Picture source: UWS Powerpoint)

The Perfume Industry
When looking at the perfume industry and how they utilize the Marketing Mix they make use of all 7P's. By doing so the perfume industry has propelled itself into today’s market. With the perfect business bring in around £16 million a year it’s important that brands follow a marketing strategy to ensure success. Of course, a lot of the success comes down to the product itself however credit must be given to the other key aspects. Advertising, branding, price, customer service and packaging all play a role in making a strong and successful perfume brand.


Product
To begin with this post will look at how the perfume industry makes use of the Product element within their marketing strategy, there are a huge variety of brands within the perfume industry. Creating the perfect product is of the utmost importance. Brands must decide on a brand image, packaging and truly gain an understanding of what idea they want their product to convey. within the industry there are both high-end luxury brands and more affordable day to day brands each much take into consideration these aspects.

 (Picture Source: Chanel timeline website)
Chanel is one of the most influential designers on the market today. This renowned brand appeals to consumers by showcasing a luxury and exclusive image. Chanel was founded in 1909 by designer Coco Chanel. (Inside Chanel,2016). Chanel’s beauty and timeless fashion creating the lasting image of

the brand. An image that today is not far from what it was in 1900's.
The brand Chanel is a perfect example of the Marketing mix in action. The brand understands what their customers what before they even do. The simplicity of the logo is recognizable and unforgettable. The brands image was inspired by the orphanage Coco Chanel grew up in this is where her love for black and white was created and her interest in the baroque style was sparked. These features are still visible in the brand today.




"Chanel No.5 a scent we know without knowing it" (The Paradoxes of Chanel, 2016). Chanel No.5 was the first perfume created by Chanel in 1921 is still stands as one on the most popular perfumes in the world. Chanel understood what she wanted to create from the No.5 scent. She wanted to capture the free spirit of the 1920 and in close it in what she called an invisible bottle with clear glass and delicate edges. From then on, all the Chanel perfume bottles followed the same structure. Simple but intriguing.

(Picture source: Chanel website)

Looking at the other side of the spectrum with Chanel being a high-end luxury brand there are more affordable brands on the marketing. Celebrity perfume brands have become extremely popular over the past few years. Stars such as Ariana Grande and One Direction releasing scents the perfume industry has found itself reaping the benefits of today’s pop culture. The band One Direction have released 3 scents since 2013. (One Direction Fragrances, 2016). Just by looking at the packaging it is clear who these products are aimed at. With the bands demographic being young teenage girls it makes sense they would design the packaging around that idea. The idea one creating an image around who you know is going to be most interested in buying the product is one that most celebrity’s follow. The singer Ariana Grande has a huge following which is primarily teenage girls. Her perfume packages are drenched in pink and fluffy pompoms.

Price
When creating a brand, Product is not the only element that has to be considered Price plays a very important part in the creating the success of a brand. Companies need to research how much their customers would be willing to pay for their products. brands like Chanel and Dior are known as being high-end brands with high-end price tags and are aimed at those with the money to afford such luxury products. However, celebrity brands are aimed at a much younger demographic therefore their prices must be more affordable to insure they generate customers.

Price list(Boots,2016)
- Chanel No.5 100ml- £86.40
- Dior J'Adore 100ml- £89.40
- Marc Jacobs Decadence 100ml- £86.00
- Ariana Grande Ari 100ml- £41.00
- One Direction You and I 100ml -£19.25
- Britney Spears Fantasy 50ml- £18.00

This price list shows the diverse different there can be in the pricing of a perfume depending on the brand. The pricing of the product must be clear from the beginning if a brand changes the price of their product regularly it creates an inconsistent shopping experience for the consumer and decreases the change of reoccurring custom.

Place
 Place: The product is properly distributed and available in a convenient location at the right time.
This is a key element in the Marketing Mix. A brand must construct a plan to distribute their product and what locations they feel partner well with the image of their brand. Perfume can be found at a variety of different high-street and high-end stores. There are different ways in which a company can decided to distribute their products to the consumer.

This chart shows the different channels that can be used when distributing a product, the most effective being A. However, option B is more commonly use therefore the company must decide which retails they want to sell their products. When making this decision, they must consider the following:
- Intensive
- Selective
- Exclusive

Intensive
Releasing a product to as many outlets as possible. This method focuses on how easily available their product is to the customer. Products such as soft drinks, chocolate bars and toothpaste are perfect examples of this strategy. Without distributing their products like this they would be unable to make a profit.

Selective
This approach is when a company decided to distribute their product to outlets. This allows companies to build stronger relationships with the outlets and focus training in these areas. It is effective when the consumer already has knowledge of the product or brand and does not mind them out.

Exclusive
This method is when a company decided only to use a specific retailer to sell their products. This insures the retailer have an in depth understand of the brand and their products. It also gives the customer a more exclusive experience which some may enjoy. It can be seen with designer/ high-end brands. (Smirti Chand,2015)

Department stores such as House of Frasers, Selfridges and Harrods stock exclusive perfume brands. The Merchant of Venice is an exclusive brand to Harrods. The perfume costs over £200 a bottle and is only available in selected Harrods stores. This is an example of the Exclusive method being used within the perfume industry.





(The Merchant of Venice, Harrods)

However, the intensive method can be seen within this industry also going back to the celebrity brands that were discussed earlier in the post they can be found in a wide range of store. Starting at more high-end stores such as House of Frasers and traveling all the way down to stores such as B&M. This method is perfect for what celebrity brands are trying to achieve and who they are trying to sell to. Brands must also decide if their brand is suitable for an area. Areas with high levels of poverty are more likely to have stores like B&M, Semi-Chem and Savers open in their area rather than stores like House of Frasers and Harrods. Although some people in that area may shop at those department stores as a brand they must decide what areas will produce the most foot fall and profit. An example of this is Selfridges was opened on Oxford Street London which is a wealthy area therefore suits the price bracket of the store.

Promotion
Promotion is the next key step to creating a successful brand. How will the company engage their customer? How will they make people want their product? A strong promotion strategy is of the utmost importance to perfume brands.

Sales Promotion- Action communications to generate extra sales, both from existing customers purchasing more products and by temporarily attracting new customers based on an incentive or a deal.’ (De Pelsmacker, Geuens and Van den Bergh, 2010)
It is not only important for brands to generate new customers but also keep existing customers interested. Using tools such as sales, loyalty cards and new product development this is possible.

Advertising is so important for a brand. It can be what creates a lasting memory for potential customers. In the perfume industry, there is an aspect of society that is used time and time again to promote and sell product. Sex. The phrase "sex sells" is so relevant when talking about this industry. However, many say that the way in which perfume brands choose to sell their products is somewhat sexist. With many campaigns depicting a submissive woman as a "sex object" but in a market as competitive as the perfume game brands must focus on what sells and that just so happens to be sex.

Chanel Coco Mademoiselle. Ad 2001.

The advert starts with the actress Keira Knightley lying half naked in a bed. From the start the advert comes across as seductive and sexual. Thought-out the advert the close-up shots on her face and body only add to the sexual appeal. the advert end with Keira Knightley and the photographer character on top of each other in a bed. With Knightley’s character wearing next to nothing. The scent is mentioned only twice thought out the advert yet it still grabs your attention and is clear from the aesthetics of the advert it could have come from no one other than Chanel. Yet once the advert is over you cannot help but question if the extreme sexual tension was necessary. (Video source: YouTube).


Marc Jacobs Bang-, Ad campaign 2010.

 This was Marc Jacob’s 2010 ad campaign for their new gent fragrance BANG. This again is a clear example of perfume brands making use of the idea of sex in their campaigns. Marc Jacob himself can be seen posing nude in the new campaign with only an oversized fragrance bottle covering his dignity. The ad is majorly provocative and even the name BANG has a sexual connotation attached to it. Marc Jacobs aimed to create a passionate scent and their ad clearly displays that. By using such a daring image the new scent attracted a lot of attention. This campaign is also an excellent example of how brands must change certain aspects of their campaign strategy to be successful in other geographical locations. There is a version in Peoria were it only displays Jacob's shoulders and the fragrance bottle. This made the Ad more suitable for the Middle East. The promotion was spread all over social media and receive vast web recognition. (Naughton, 2010)

 It is important what no matter what promotional tool is being used it must be planned and measurable to ensure everyone is working towards the same goal. They also must ensure the tools are going to be successful and cost effective.

People
Another important part of creating a successful brand is the people that surround your brand. Wither that be establishing a target market, finding the right people to sell the product and the brands customer service. Each of these play a part in achieve success

Creating a target market is vital as a brand must understand who they want to aim their products at.
In a Forbes article by Chuck Chon he provides steps to identify a brands target market. Firstly, he suggests understanding what your product provides for customers and gaining information on who is likely to need and buy your product. Aspects such as age, marital status and location all play a role. This is important as it allows a brand to focus their selling strategy and mould it to fit their target market. Another tactic that can be used to identify a brand target market is gathering data this can be done by looking at data from the current market or obtaining new data through surveys.

This graph is a very basic breakdown of how a company would start to identify their target market. Firstly, they must establish who will find their product useful they then must understand what each group would want from their product. After gathering all that information, they must decide what groups their product would attract. Once this has been determined they can then move forward in creating their promotional campaign.
(Picture Source: Builtvisible,2012)



   As well as identifying a target market it is important to select the right people to represent your brand.  Recruiting the correct people and providing them with training is key to creating and maintain a successful brand. Brands such as Waitrose and Amazon are top of the leader board for impeccable customer service. (Telegraph, 2016). By doing so these brands are creating a reputation for themselves in all the right ways. A brand could have the best product on the market but if their staff are untrained and do not hold the values their company stand for the product will not sell.   
Training within the perfume industry is key. with so many competitive brands and constant new releases it is important that those selling the products have a vase understanding of the brand and their products.

(Marc Jacobs Decadence, Training sheet. Picture source: House of Frasers training manual)    
















Process
Insuring the marketing strategy can be carried out and made as cost affective as possible is of the utmost importance. Measuring and tracking to process of your brands is key to ensure you are not spending money where it is unnecessary. Choose a promotional strategy that is both efficient and cost effect is also important. Social media is a great way to promote a brand but is also cost efficient. Using websites like Facebook and YouTube with broadcast your product worldwide but will also keep your costs low. Brands such as Chanel make use of online marketing by launching new adverts on their official Chanel YouTube channel and creating short films to expand their customers interest in their brand.

(Short film, The Paradox of Chanel)

Overview
Overall I feel the perfume industry make excellent use of the Marketing mix.
Product- Brands within the perfume industry excel in creating a strong brand image and leave a lasting impression. With a variety of high-end luxury brands and more affordable brands the industry covers all the bases.
Price- Brands must understand and research what their customers would be willing to pay for their products. by doing so they can create product for those willing to pay more and those looking to pay less. Brands within the perfume industry must decide if people are willing to pay more for their brand or if they must focus on those interested in something more affordable.
Place- A brand must be distributing their products correctly and determine the best location for their brand. This allows brands to be easily accessible to their target market. Perfume brands must gather information of areas and establish which store they wish to stock their products. They must decide if they want to take an intensive, selective or exclusive approach.
Promotion- Perfume brands must decide how they want to advertise their products and what methods they are going to use to do so. With such a huge market, it is key for perfume brands to stand out and the do this by creating a memorable campaign. A reoccurring theme that appears within perfume ad campaigns is the aspect of "sex sell". Brands use this idea because in today’s market that is what has been provide to sell best.
People- It is key for perfume brands to establish a target market so they can understand their potential customers and focus their selling strategy. They must all recruit the correct staff and provide them with intensive training to gain success in the fast-growing industry.
Process- The perfume industry must measure their success to ensure they are remaining relevant and cost effective in the market.