Coming off from an unpleasant publicity in 2010, Hayden KHz Jar. Comes back strong with exciting scents that would surely make not only his, but every man’s name and presence synonymous to cleanliness and freshness. With the introduction of his fragrance collection in 2011, the company has aggressively expanded its operations through its marketing channels and chosen method of mass media. The company will continue to push with its strategy but will apply the same once the new line of scents has been released before the end of 2013.
Hayden will aim for the holiday season as it proves to be the best time to release any new product. For the short term goals, Hayden will maximize the use of mass media particularly commercials aired in- between primetimes shows or programs both in television and radio, and will make use of celebrities that will embody the scent’s image. This way, Hayden’ new brand of perfumes can increase brand awareness and tap unfamiliar B and C market.
Hoyden’s new line will also be advertised through events and will also host activities that reflect the company’s values through its social responsibilities. Much focus will also be targeted towards the use of direct sellers and incentive programs. For the brand awareness campaign, around 2. 5 million will be allotted for endorsers, commercials, billboards and flyers while an estimated 1 million will be used in events, CARS programs, and direct selling promotion materials which will also make use of actual products and donations.
Medium term goals will be accomplished through careful research and development (RAND) where the aim would be to introduce new and exciting scents that would continuously attract customers and maintain a diverse product mix. This would mean acquisition of needed technology and right people. By the end of the year, the company will aim to increase market share by 5%. To achieve this, the company will invest 2. 5 million in continuous RAND. For the Long term goals, Hayden will strive for majority of the market share, in terms of locally made scents and perfumes cluster, by obtaining 65% by 2020.
In order to attain this, both the short and medium term goals will be closely monitored and achieved. II. CURRENT/MARKETING SITUATION ANALYSIS A. Industry Study Due to consistent economic improvement in the country, beauty and personal care industry also started to flourish and become a lucrative market both to old and new players. However, according to Remuneration International, market trend is leaning towards low priced brands and will continue to do so despite the growing recognition among Filipinos.
The shift of preference is maybe attributed to the availability of cheap but quality perfumes from new scent entrepreneurs. In addition to this, direct selling proved to be very effective as it has helped Avon capture majority of the But this method’s strength lies in its method or way of paying which maximizes the installment or “hulling” method. B. Competitive Situation Hoyden’s major direct competitors are (in no particular order): Cosmetics 2. Aficionado 3. Zen zest 4.
Departure Brand Philips. 5. Bench 1 . Avon As a new player in the scent and fragrance industry, the brand Hayden has lots of work to do especially in advertising or marketing the brand. In terms of distribution, being in a Joint venture with Militia and Ever Baleen will definitely add valuable strategies especially since Militia learns toward distributing to the A, B, and C classes while Ever Baleen captures the taste of B, C, and even D and E market. SOOT Manta ‘V.
Statement of the Goals of the Firm for the Product/Brand * To find ways on how to capture market share of its competitors; * To continuously improve its marketing strategy to cater the needs of its current and target market, particularly, by addressing the ethical implications of Hayden Paris Fragrance’s integrated marketing communication (MIMIC) * To adhere with green manufacturing and sustainable way of distributing the products to its channel; * To promote the products through CARS programs and activities.
B. Short-term objectives and medium term objectives Re-brand Hayden fragrances with more classy and manly brand name and logo * Repackage the fragrances * Re-launch the new brand in 6 months * To invest in television and print ads for brand awareness * To share / donate more to local charities and institutions * To expand its market by creating programs that promotes personal hygiene and why men need too smell good to attract the opposite sex C.
Long-term objectives * Introduce more scents in the coming years * Obtain at least 30 to of the market share in 5 years * Donate part of the profit to charity A. Market Targeting Market Segmentation and Targeting Geographic Segmentation: Philippine urban areas Demographics: Gender: Male and Female Age: 13 years old and above Economic Classes: A;B, C Cryptographic: People who are meticulous on their physical hygiene. Behavioral: Male and female who bathe everyday and put an effort to make oneself neat every day. B.
Product Development/limitation Program Technological Aspects Hayden Fragrances must continuously create and innovate new quality products, the Company must improve its manufacturing facilities computer-controlled integrated reduction process-from collection, distillation, absorption, extraction, blending and packaging of the products. The equipment will be of great help in promoting high- quality perfume standards in a hygienic and sanitary environment. C. Pricing Program Pricing Strategies The Company must set a reasonable price for its product and should follow the six- step procedures in pricing the products: 1.
Setting the pricing objectives The objective of setting-up a price for the products is to capture the maximum market share by setting a reasonable price. The price of Hayden is reasonable and an compete to other local perfumers (like Zen Zest) or perfume manufacturers in the market. 2. Determining Demand Each price will lead to different level of demand and therefore have a different impact on Company’s marketing objectives. 3. Estimating costs The cost to produce perfumes are its ingredients (Chemical bases and fixatives, essential oils, and synthetic fragrances are used in almost all perfumes. , the rent of on which the factory is situated if it is being rented, utility bills to run the factory, labor and marketing costs. 4. Types of cost and level of production This is to identify the two types of cost: a. ) fixed and b. ) variable in order to determine each cost in the operation. Rent, factory maintenance, and utilities are the fixed costs. While the variable costs are employee salaries. 5. Analyzing consumer’s behavior According to Remuneration, there had been a rise in the metronome’s population in the recent years. With that, personal hygiene is a priority these population.
Most metropolises are hygiene conscious and they do everything to make themselves smell good. Moreover, the straight male population also are starting to be self unconscious because male sweats more than women and due to the hot weather in the like females retouch their make up at the middle of the day, male retouch their scent in order to smell fresh. 6. Selecting a pricing method Cost-plus pricing – Set the price at the production cost, including both cost of goods and fixed costs at your current volume, plus a certain profit margin.
For example, a bottle of perfume costs 70 pesos in raw materials and production costs, and at current sales volume (or anticipated initial sales volume), your fixed costs come to 10 per unit. Your total cost is 80 pesos per unit. You decide that you want to operate at a 80% markup, so you add 64 pesos (80% x pesos) to the cost and come up with a price of 144 per unit. So long as you have your costs calculated correctly and have accurately predicted your sales volume, you will always be operating at a profit. D.
Sales and Distribution Program Distribution Channel The refrained fragrances will be distributed in major department stores such as SMS, Robinsons and Russians. Also, an online e-commerce website will be launched to cater to online buyers and purchases will directly be delivered to customers. Services and warranties In targeting to the top most customer satisfaction and building long-term customer relationships, the Company must provide top quality service. Giving the customers timely and instant quality service should the Company’s primary concern.
By attaining quality service, the Company should continuously create an interactive interactions with customers through social networking sites such as Backbone and Twitter so that customer can Just tag or post inquiries through those channels. Furthermore, a phone hotlist and email hotlist should be provided for after sales customer service. This is the best way for the Company to to reach out to its customers and also for feedback control purposes. E. Marketing Communication 1. Advertising Program The refrained fragrances will be advertised on TV, Radio and Print. 2.