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Integrated	
  Marketing	
  Communications	
  
Campaign	
  Project	
  
University	
  of	
  Westminster	
  2014	
  –	
  2015	
  
Helene	
  Hildebrandt	
  (W1500584)	
  
	
  
	
   	
  
  2	
  
	
  
Table	
  of	
  content	
  
	
  
	
  
	
  
I. Executive	
  summary	
  
	
  
II. IMC	
  Proposal	
  
	
  
1. Market	
  and	
  industry	
  parameter	
  (p.5)	
  
	
   	
   	
   	
  
a. Overview	
  of	
  the	
  market	
  and	
  market	
  dynamics	
  (p.5)	
  
b. PEST	
  analysis	
  (p.7)	
  
c. Opportunities	
  and	
  threats	
  (p.8)	
  
	
  
2. Competitor	
  evaluation	
  (p.10)	
  
	
   	
   	
   	
   	
   	
   	
   	
  	
  
a. Crabtree	
  and	
  Evelyn	
  (p.11)	
  
b. Jo	
  Malone	
  (p.13)	
  
c. Creed	
  (p.15)	
  
d. Floris	
  (p.17)	
  
e. Positioning	
  map	
  (p.18)	
  
f. Penhaligon’s	
  strengths	
  and	
  weaknesses	
  (p.19)	
  
	
  
3. Overview	
  of	
  the	
  brand	
  (p.20)	
   	
   	
   	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
	
  
a. Keller’s	
  brand	
  equity	
  model	
  (p.22)	
  
	
  
4. Clarification	
  of	
  the	
  strategic	
  marketing	
  opportunity	
  to	
  be	
  developed	
  for	
  the	
  brand	
  
(p.26)	
  
	
   	
   	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
a. Ansoff	
  Matrix	
  (p.26)	
  
	
  
5. Quantified	
   marketing	
   objectives,	
   implications	
   for	
   the	
   IMC	
   and	
   financial	
   situation	
  
(p.28)	
  
	
  
6. Summary	
  –	
  outlining	
  the	
  proposal	
  for	
  marketing	
  communications	
  (p.30)	
  
	
  
	
  
	
  
  3	
  
III. IMC	
  development	
  
	
  
1. Objectives	
  and	
  scopes	
  (p.31)	
  
	
  
a. Definition	
  of	
  the	
  integrated	
  marketing	
  and	
  analysis	
  of	
  the	
  marketing	
  mix	
  tools	
  
(p.31)	
  
b. Objectives	
  and	
  strategy	
  (p.33)	
  
c. Target	
  audience	
  definition	
  (p.34)	
  
	
  
2. Communication	
  and	
  campaign	
  strategy	
  
	
  
a. Analysis	
  of	
  the	
  marketing	
  channels	
  (p.40)	
  
b. Clarification	
  of	
  the	
  marketing	
  tools	
  to	
  be	
  developed	
  during	
  the	
  campaign	
  (p.45)	
  
	
  
3. IMC	
  delivery	
  (p.50)	
  
	
  
a. Communication	
  tools	
  developed	
  during	
  the	
  campaign	
  (p.50)	
  
b. Campaign	
  development	
  schedule	
  (p.59)	
  
c. Campaign	
  Budget	
  (p.65)	
  
	
  
4. Evaluation	
  outcome	
  (p.69)	
  
	
  
a. Pre-­‐testing	
  (p.69)	
  
b. Real-­‐time	
  tracking	
  (p.69)	
  
c. Post-­‐testing	
  (p.70)	
  
d. Campaign	
  outcome	
  and	
  ROI	
  (p.73)	
  
	
  
5. Bibliography	
  (p.74)	
  
	
  
6. Appendix	
  1	
  (p.90)	
  
	
   	
  
7. Appendix	
  2	
  (p.91)	
  
	
   	
  
8. Budget	
  (p.93)	
  
	
   	
  
9. Timeline	
  (p.94)	
  
	
   	
  
  4	
  
I. Executive	
  summary	
  
	
  
Penhaligon’s	
   is	
   a	
   luxury	
   perfume	
   house	
   offering	
   sophisticated	
   products	
   for	
   beauty	
  
conscious	
  people	
  with	
  high	
  standards,	
  and	
  a	
  taste	
  for	
  elegance	
  and	
  eccentricity.	
  Until	
  
now,	
   the	
   label	
   has	
   been	
   doing	
   various	
   communications	
   enhancing	
   its	
   traditional	
   side	
  
(using	
   visuals	
   with	
   elegant	
   women	
   wearing	
   long	
   dresses	
   and	
   men	
   with	
   top	
   hats	
   and	
  
moustaches,	
  wearing	
  three-­‐pieces	
  suits).	
  
	
  
After	
  a	
  deep	
  analysis	
  of	
  the	
  brand	
  profile	
  and	
  its	
  current	
  target	
  audience	
  we	
  came	
  out	
  
with	
  an	
  integrated	
  campaign	
  centred	
  on	
  the	
  idea	
  of	
  distinction	
  and	
  eccentricity.	
  We	
  have	
  
realized	
  that	
  aiming	
  at	
  a	
  larger	
  target	
  group	
  by	
  adding	
  a	
  fresher	
  and	
  younger	
  look	
  to	
  the	
  
brand	
  could	
  be	
  a	
  great	
  opportunity	
  to	
  increase	
  its	
  awareness	
  and	
  sales.	
  
	
  
The	
   corporate	
   goal	
   of	
   this	
   integrated	
   marketing	
   campaign	
   is	
   to	
   become	
   a	
   brand	
   of	
  
reference	
  for	
  exclusive	
  perfume	
  houses,	
  by	
  acquiring	
  20.000	
  customers	
  aged	
  24-­‐35	
  and	
  
retaining	
  80.000	
  35-­‐54	
  years	
  old	
  customers.	
  In	
  order	
  to	
  make	
  our	
  campaign	
  appealing	
  
for	
   both	
   publics	
   we	
   have	
   decided	
   to	
   use	
   the	
   elegant	
   image	
   that	
   the	
   brand	
   has	
   been	
  
promoting	
  so	
  far,	
  adding	
  it	
  the	
  touch	
  of	
  eccentricity	
  that	
  gives	
  it	
  the	
  original	
  side.	
  We	
  
came	
  up	
  with	
  the	
  tagline	
  “Penhaligon’s,	
  elegance,	
  with	
  a	
  touch	
  of	
  eccentricity”.	
  	
  
	
  
This	
  communication	
  lasts	
  6	
  months	
  (From	
  September	
  2015	
  until	
  January	
  2016)	
  and	
  is	
  
based	
  on	
  press	
  advertising,	
  direct	
  marketing,	
  sales	
  promotions	
  and	
  public	
  relations.	
  We	
  
ensured	
   that	
   our	
   marketing	
   tools	
   are	
   fully	
   integrated	
   and	
   promote	
   the	
   exclusive	
   and	
  
eccentric	
  image	
  of	
  Penhaligon’s.	
  	
  
	
  
Our	
   business	
   objective	
   is	
   to	
   increase	
   the	
   company’s	
   turnover	
   to	
   £15	
   million	
   (UK)	
   via	
  
content	
  engagement	
  and	
  trial	
  incentives.	
  	
  
	
  
Our	
  return	
  on	
  investment	
  is	
  2.7.	
  
	
   	
  
  5	
  
II. Integrated	
  Marketing	
  Communications	
  Proposal	
  
	
  
	
  
1. Market	
  and	
  industry	
  parameters	
  
	
  
a. Overview	
  of	
  the	
  market	
  status	
  and	
  dynamics	
  
	
  
The	
  fragrance	
  industry	
  is	
  a	
  highly	
  competitive	
  highly	
  profitable	
  market	
  addressed	
  by	
  a	
  
vast	
   variety	
   of	
   brands	
   with	
   products	
   ranging	
   from	
   mass-­‐market	
   to	
   selective	
   luxury.	
  	
  
Historically	
  it	
  has	
  been	
  aiming	
  at	
  a	
  feminine	
  audience	
  (in	
  2010	
  the	
  feminine	
  fragrance	
  
market	
   was	
   estimated	
   at	
   £739	
   million	
   with	
   a	
   growth	
   of	
   2.4%	
   year-­‐to-­‐year	
   in	
   the	
   UK	
  
(Mintel,	
   2010))	
   but	
   nowadays	
   it	
   is	
   increasingly	
   attracting	
   men	
   (the	
   men’s	
   fragrance	
  
market	
  value	
  in	
  2014	
  in	
  the	
  UK	
  was	
  of	
  £33,58	
  million	
  (Statista,	
  2015).	
  In	
  addition	
  to	
  
generating	
  high	
  margins	
  the	
  perfume	
  industry	
  is	
  a	
  very	
  stable	
  one:	
  it	
  has	
  been	
  barely	
  
impacted	
  by	
  the	
  economic	
  recession	
  (Mintel,	
  2012).	
  Fragrance	
  sales	
  value	
  rose	
  by	
  5%	
  in	
  
2013	
   in	
   the	
   UK	
   thanks	
   to	
   premium	
   and	
   mass	
   products	
   consumption	
   still	
   on	
   the	
   rise	
  
(Euromonitor,	
  2014).	
  The	
  niche	
  sector	
  in	
  particular	
  has	
  remained	
  undisturbed	
  as	
  luxury	
  
brands	
  users	
  seldom	
  trade-­‐down.	
  Premium	
  brands	
  are	
  almost	
  not	
  being	
  limited	
  by	
  price	
  
considerations	
  hence	
  their	
  enhanced	
  freedom	
  to	
  take	
  financial	
  risks	
  and	
  protect	
  their	
  
margins.	
  	
  
	
  
Despite	
  these	
  benefits,	
  the	
  perfume	
  industry	
  is	
  being	
  faced	
  with	
  numerous	
  challenges:	
  
the	
   competition	
   is	
   intense,	
   the	
   sales	
   cycle	
   remains	
   highly	
   seasonal	
   (73%	
   of	
   women	
  
receive	
  perfumes	
  for	
  Christmas,	
  63%	
  for	
  their	
  birthday	
  (Mintel,	
  2010)),	
  the	
  population	
  
is	
  ageing	
  and	
  does	
  not	
  use	
  perfumes	
  as	
  frequently	
  as	
  it	
  used	
  to.	
  Today,	
  the	
  fragrance	
  
industry	
  needs	
  to	
  address	
  a	
  highly	
  demanding	
  audience	
  in	
  order	
  to	
  succeed	
  at	
  restoring	
  
its	
   competitiveness.	
   The	
   innovative	
   character	
   of	
   a	
   fragrance	
   no	
   longer	
   suffices	
   at	
  
attracting	
   new	
   customers	
   (women’s	
   fragrances	
   are	
   the	
   main	
   industry	
   for	
   new	
  
introductions	
  with	
  new	
  products	
  accounting	
  for	
  close	
  to	
  two	
  thirds	
  of	
  all	
  UK	
  product	
  
launches	
  every	
  year)	
  while	
  an	
  increasing	
  number	
  of	
  people	
  are	
  looking	
  for	
  quality	
  and	
  
authenticity	
  when	
  buying	
  perfumes	
  (Mintel,	
  2010).	
  Thus	
  37%	
  of	
  consumers	
  use	
  luxury	
  
  6	
  
fragrances	
  and	
  aftershaves	
  while	
  58%	
  still	
  agree	
  they	
  are	
  worth	
  buying	
  at	
  a	
  premium	
  
price	
  (67%	
  of	
  55-­‐64	
  years	
  old	
  (Mintel,	
  2015)).	
  
	
  
For	
   a	
   certain	
   category	
   of	
   consumers	
   the	
   uniqueness	
   of	
   the	
   brand	
   is	
   an	
   expression	
   of	
  
luxury:	
  they	
  find	
  pleasure	
  in	
  seeking	
  out	
  and	
  finding	
  an	
  exquisite	
  perfume	
  that	
  will	
  make	
  
them	
  stand	
  out.	
  Niche	
  brands	
  built	
  upon	
  differentiating	
  -­‐sometimes	
  authentic	
  stories	
  are	
  
also	
  appealing:	
  they	
  help	
  to	
  create	
  a	
  bond	
  between	
  the	
  brand	
  and	
  its	
  target	
  audience	
  
through	
   building-­‐up	
   an	
   efficient	
   word-­‐of-­‐mouth.	
   That	
   is	
   why	
   classic	
   brands	
   such	
   as	
  
Grossmith	
  (a	
  perfume	
  house	
  that	
  used	
  to	
  supply	
  scents	
  designed	
  especially	
  for	
  Queen	
  
Victoria)	
  are	
  being	
  revived	
  and	
  still	
  attract	
  new	
  customers.	
  	
  
	
  
In	
   this	
   report	
   we	
   shall	
   focus	
   on	
   both	
   feminine	
   and	
   masculine	
   UK	
   premium	
   fragrance	
  
markets.	
  
	
  
	
  
The	
  histogram	
  hereunder	
  presents	
  the	
  value	
  of	
  the	
  premium	
  women's	
  fragrance	
  market	
  
in	
  the	
  United	
  Kingdom	
  (UK)	
  with	
  actual	
  figures	
  from	
  2007	
  up	
  to	
  2014,	
  and	
  a	
  forecast	
  for	
  
2017.	
  In	
  2013,	
  the	
  UK	
  women’s	
  premium	
  fragrance	
  estimated	
  market	
  value	
  was	
  slightly	
  
above	
  1.02	
  billion	
  U.S.	
  dollars.	
  (Statista,	
  2015)	
   	
  
  7	
  
b. PEST	
  analysis	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Political	
  
	
  
Economic	
  
	
  
Social	
  
	
  
Technological	
  
	
  
-­‐	
  European	
  cosmetics	
  and	
  
hygiene	
  products-­‐related	
  
regulations	
  are	
  quite	
  strict:	
  in	
  
order	
  to	
  ensure	
  that	
  a	
  product	
  
can	
  be	
  used	
  safely;	
  list	
  of	
  
ingredients	
  as	
  well	
  as	
  product	
  
durability	
  period	
  must	
  be	
  clearly	
  
displayed	
  on	
  the	
  package.	
  Other	
  
constraints	
  apply	
  as	
  well.	
  This	
  
may	
  slow-­‐down	
  innovation	
  and	
  
creativity	
  pace	
  as	
  more	
  and	
  more	
  
pre-­‐commercialization	
  tests	
  –
more	
  and	
  more	
  upfront	
  costs,	
  are	
  
being	
  required	
  to	
  launch	
  (EC	
  
Europa,	
  2015)	
  
	
  
-­‐	
  Regulations	
  and	
  fiscal	
  charges	
  
may	
  discourage	
  manufacturers	
  
and	
  eventually	
  effectively	
  result	
  
in	
  price	
  increases.	
  
	
  
-­‐	
  The	
  unemployment	
  
rate	
  results	
  in	
  a	
  
decrease	
  of	
  the	
  
purchasing	
  power.	
  
Customers	
  may	
  switch	
  
from	
  premium	
  goods	
  
to	
  cheaper	
  ones,	
  
however	
  the	
  luxury	
  
sector	
  is	
  relatively	
  
unaffected	
  by	
  the	
  slow	
  
economic	
  environment	
  	
  
(Mintel,	
  2015)	
  
	
  
	
  
	
  
	
  
-­‐	
  Traditional	
  brands	
  
attract	
  conservative	
  
women	
  while	
  young	
  
people	
  like	
  to	
  
experiment	
  with	
  
perfumes	
  (	
  Lambert-­‐
Pandraud,	
  R.	
  and	
  
Laurent,	
  G.,2010)	
  
	
  
-­‐	
  Fragrance	
  sales	
  are	
  
mostly	
  seasonal	
  and	
  
perfumes	
  are	
  usually	
  
purchased	
  as	
  gifts	
  
(Mintel,	
  2010)	
  
	
  
-­‐	
  Easy	
  to	
  buy	
  perfumes	
  
online	
  thanks	
  to	
  e-­‐
commerce	
  
	
  
-­‐	
  Popularity	
  of	
  social	
  
networking	
  encourages	
  
companies	
  to	
  advertise	
  
on-­‐line	
  (eg.	
  Penhaligon’s	
  
or	
  Jo	
  Malone	
  Facebook	
  
pages)	
  
	
  
-­‐	
  New	
  technologies	
  allow	
  
for	
  creating	
  perfumes	
  
that	
  never	
  cause	
  
allergies.	
  
	
  
	
  
	
  
  8	
  
c. Opportunities	
  
	
  
1. Expending	
  into	
  other	
  countries	
  
2. Addressing	
   women	
   aged	
   25-­‐34	
   represents	
   a	
   growing	
   opportunity	
   for	
   the	
  
fragrance	
   industry,	
   but	
   manufacturers	
   should	
   not	
   ignore	
   older	
   consumers	
  
(Webcache,	
  2015)	
  
3. Introducing	
   new	
   formats	
   such	
   as	
   solid	
   perfume.	
   They	
   are	
   hassle-­‐free	
   and	
  
convenient.	
  They	
  can	
  take	
  various	
  forms	
  such	
  as	
  rings	
  or	
  pendants	
  (Mintel,	
  2012)	
  
4. Creating	
  an	
  organic	
  line	
  of	
  products	
  and	
  strongly	
  communicating	
  on	
  sustainable	
  
growth	
  when	
  further	
  expanding	
  brand-­‐awareness.	
  
5. Capitalizing	
   on	
   the	
   expansion	
   of	
   e-­‐commerce	
   that	
   facilitates	
   the	
   purchase	
   of	
  
perfumes	
  on-­‐line	
  
6. Making	
  use	
  of	
  the	
  development	
  of	
  social	
  networks	
  to	
  advertise	
  on-­‐line.	
  
	
  
	
  
d. Threats	
  (Mintel,	
  2010)	
  
	
  
1. Some	
  3.43	
  million	
  (13.1%)	
  UK	
  women	
  do	
  not	
  currently	
  use	
  fragrance	
  with	
  usage	
  
dropping	
  as	
  women	
  grow	
  older	
  
2. Intense	
  competition	
  in	
  luxury	
  fragrance	
  market	
  strengthens	
  (Jo	
  Malone,	
  Chanel,	
  
Dior)	
  
3. Sales	
   remain	
   seasonal	
   with	
   75%	
   of	
   sales	
   still	
   taking	
   place	
   over	
   the	
   Christmas	
  
period	
  (Mintel,	
  2010)	
  
4. Although	
  young	
  women	
  remain	
  the	
  main	
  users	
  of	
  fragrances,	
  some	
  1.5	
  million	
  
16-­‐24s	
   (37%)	
   admit	
   they	
   don’t	
   always	
   remember	
   to	
   apply	
   them	
   –	
   while	
   the	
  
average	
  of	
  women	
  who	
  forget	
  to	
  apply	
  perfumes	
  regularly	
  is	
  only	
  23%.	
  	
  
5. The	
  number	
  of	
  women	
  with	
  no	
  plans	
  to	
  change	
  the	
  fragrance	
  they	
  wear	
  is	
  on	
  the	
  
rise.	
  Almost	
  one	
  fifth	
  (18%)	
  of	
  women	
  plan	
  to	
  stick	
  to	
  the	
  one	
  they	
  already	
  own	
  –	
  
quite	
  a	
  change	
  from	
  2007,	
  when	
  only	
  7%	
  never	
  even	
  considered	
  changing	
  their	
  
fragrance.	
  
6. Four	
  women	
  under	
  25	
  years	
  old	
  out	
  of	
  ten	
  forget	
  to	
  apply	
  their	
  fragrance	
  
7. 13,1%	
  of	
  UK	
  women	
  do	
  not	
  use	
  any	
  fragrance	
  and	
  usage	
  even	
  drops	
  further	
  as	
  
women	
  grow	
  older	
  
  9	
  
8. 1.5	
  million	
  16-­‐24	
  years-­‐old	
  women	
  (37%)	
  forget	
  to	
  apply	
  fragrance.	
  One	
  in	
  five	
  
women	
  plans	
  to	
  keep	
  with	
  the	
  perfume	
  they	
  already	
  have.	
  
9. European	
   cosmetic	
   regulations	
   as	
   well	
   as	
   taxes	
   may	
   slow	
   the	
   innovation	
   and	
  
creativity	
  of	
  the	
  brands	
  
	
   	
  
  10	
  
2. Competitor	
  evaluation	
  
	
  
	
  
Penhaligon’s	
   is	
   a	
   British	
   premium	
   perfume	
   house	
   targeting	
   rather	
   affluent	
   men	
   and	
  
women	
  in	
  their	
  middle	
  age.	
  It	
  offers	
  a	
  variety	
  of	
  sophisticated	
  perfumes	
  in	
  a	
  refined	
  and	
  
elaborated	
   packaging	
   with	
   prices	
   ranging	
   from	
   £85	
   to	
   £150	
   for	
   a	
   100ml	
   bottle.	
   The	
  
brand	
  has	
  a	
  long	
  heritage	
  and	
  an	
  interesting	
  history,	
  which	
  attracts	
  customers	
  looking	
  
for	
  tradition	
  and	
  differentiation	
  when	
  buying	
  perfumes.	
  
	
  
The	
  following	
  brands	
  are	
  Penhaligon’s	
  indirect	
  competitors:	
  each	
  of	
  them	
  is	
  a	
  British	
  
perfume	
  house	
  offering	
  sophisticated	
  products.	
  They	
  are	
  expensive	
  brands,	
  Creed	
  being	
  
the	
   most	
   luxurious	
   one	
   and	
   Crabtree	
   and	
   Evelyn	
   the	
   most	
   accessible	
   one.	
   Creed	
   and	
  
Floris	
  are	
  brands	
  with	
  a	
  rich	
  heritage,	
  just	
  like	
  Penhaligon’s.	
  Jo	
  Malone	
  and	
  Crabtree	
  &	
  
Evelyn	
  are	
  rather	
  modern	
  brands	
  (founded	
  at	
  the	
  beginning	
  of	
  the	
  20th	
  Century).	
  
	
  
	
   	
  
  11	
  
a. Crabtree	
  and	
  Evelyn	
  (C&E)	
  (Crabtree	
  and	
  Evelyn,	
  2015;	
  Harris,	
  R.	
  C&E	
  
case	
  study,	
  2015;	
  NMA,	
  2015)	
  
	
  
	
  
Crabtree	
   &	
   Evelyn	
   is	
   an	
   international	
   company	
   founded	
   in	
   1972	
   and	
   known	
   for	
   its	
  
fragrances	
  and	
  toiletries.	
  It	
  offers	
  a	
  variety	
  of	
  body	
  products	
  such	
  as	
  creams,	
  perfumes	
  
or	
  soaps,	
  gourmet	
  foods,	
  gifts	
  or	
  even	
  sleepwear	
  and	
  bed	
  accessories.	
  The	
  price	
  of	
  their	
  
fragrances	
  ranges	
  from	
  £20	
  to	
  £198	
  for	
  a	
  100	
  ml	
  bottle.	
  	
  
	
  
The	
  brand	
  has	
  started	
  as	
  a	
  small	
  family	
  business	
  and	
  has	
  gained	
  recognition	
  and	
  respect	
  
over	
   the	
   years.	
   A	
   special	
   attention	
   is	
   granted	
   to	
   product	
   packaging	
   and	
   customer	
  
experience	
  in	
  store.	
  
	
  
C&E	
  positions	
  itself	
  as	
  a	
  brand	
  with	
  a	
  tradition	
  targeting	
  mainly	
  modern	
  women	
  with	
  an	
  
average	
  income	
  that	
  have	
  time	
  to	
  take	
  care	
  for	
  themselves	
  and	
  for	
  their	
  image.	
  
After	
  a	
  bankruptcy	
  in	
  2009	
  and	
  the	
  closing	
  of	
  over	
  30	
  stores,	
  C&E	
  recovered	
  and	
  started	
  
to	
   grow.	
   Its	
   current	
   marketing	
   strategy	
   is	
   based	
   on	
   a	
   five-­‐years	
   digital	
   marketing	
  
campaign	
   aiming	
   at	
   attracting	
   new	
   audiences.	
   The	
   brand	
   is	
   looking	
   to	
   increase	
   its	
  
activity	
  on	
  social	
  media,	
  adapting	
  itself	
  to	
  the	
  expansion	
  of	
  e-­‐commerce.	
  
	
   	
  
The	
   main	
   strength	
   of	
   C&E	
   is	
   the	
   fact	
   that	
   it	
   covers	
   a	
   wide	
   price-­‐range:	
   there	
   are	
  
perfumes	
  priced	
  at	
  £20	
  as	
  well	
  as	
  ones	
  well	
  above	
  £100.	
  A	
  wide	
  distribution	
  network	
  
(vast	
   choice	
   of	
   stores	
   in	
   the	
   United	
   States,	
   Canada,	
   South	
   America,	
   Europe,	
   Asia,	
  
Australia	
   and	
   Africa	
   –	
   40	
   stores	
   in	
   all)	
   is	
   another	
   key	
   element	
   of	
   their	
   sensible	
  
marketing-­‐mix.	
   	
   However,	
   it	
   has	
   a	
   less	
   sophisticated	
   image	
   than	
   Penhaligon’s	
   and	
  
appears	
  as	
  being	
  more	
  mainstream.	
  	
  
	
  
In	
  order	
  to	
  truly	
  understand	
  Penhaligon’s	
  positioning	
  we	
  will	
  perform	
  a	
  SWOT	
  analysis	
  
for	
   each	
   of	
   our	
   brand	
   competitors	
   –	
   comparing	
   their	
   strengths,	
   weaknesses,	
  
opportunities	
  and	
  threats	
  to	
  those	
  of	
  Penhaligon’s.	
  	
  
	
  
	
  
	
  
  12	
  
	
  
	
  
	
  
	
  
	
  
	
  
Strengths	
  
	
  
1. International	
  company	
  (over	
  500	
  
stores	
  worldwide)	
  	
  	
  
2. Different	
  prices	
  (perfumes	
  available	
  
from	
  £28	
  to	
  almost	
  £200)	
  
	
  
	
  
Weaknesses	
  
	
  
1. Aggressive	
  customer	
  contact	
  
(Chiefmarketer,	
  2011)	
  
2. Using	
  discounts	
  as	
  a	
  regular	
  sales	
  
promotion	
  strategy	
  makes	
  the	
  brand	
  
look	
  cheap	
  
3. Perceived	
  as	
  mainstream	
  	
  
4. Unclear	
  positioning	
  –	
  the	
  price	
  gap	
  
between	
  their	
  products	
  is	
  too	
  important.	
  
It	
  seems	
  to	
  be	
  a	
  premium	
  brand	
  at	
  first	
  
glance	
  but	
  some	
  of	
  their	
  merchandise	
  
looks	
  mainstream	
  and	
  seems	
  to	
  be	
  
designed	
  for	
  the	
  mass	
  market	
  
	
  
	
  
Opportunities	
  
	
  
1. The	
   digital	
   marketing	
   strategy	
   they	
  
have	
   been	
   setting-­‐up	
   lately	
   may	
   be	
  
more	
   efficient	
   than	
   their	
   current	
  
marketing	
  actions	
  
	
  
	
  
Threats	
  
	
  
1. Sales	
   promotion	
   as	
   a	
   regular	
   marketing	
  
tool	
   may	
   deteriorate	
   the	
   brand	
  
perception	
  
2. Rough	
   competition	
   amongst	
   beauty	
  
products	
   retailers,	
   especially	
   if	
   C&E	
  
decides	
  to	
  expand	
  their	
  target	
  audience	
  
to	
  a	
  more	
  “mass	
  market”	
  one	
  
	
  
  13	
  
b. Jo	
  Malone	
  	
  
(Fragrantica,	
  Wikiluxurybrands,	
  Elcompanies,	
  Jo	
  Malone,	
  2015)	
  
	
  
Jo	
  Malone	
  is	
  a	
  British	
  luxury	
  fragrance	
  brand	
  famous	
  for	
  its	
  iconic	
  fragrances	
  and	
  luxury	
  
lifestyle	
  products.	
  Originally	
  Jo	
  Malone	
  started	
  the	
  fragrance	
  industry	
  as	
  a	
  florist	
  by	
  day	
  
and	
   beautician	
   at	
   night.	
   In	
   1994,	
   Jo	
   Malone	
   opened	
   her	
   first	
   boutique	
   in	
   London	
  
presenting	
   a	
   variety	
   of	
   fragrances,	
   skin	
   care	
   and	
   home	
   scents.	
   The	
   flagship	
   boutique	
  
opened	
  five	
  years	
  later	
  on	
  Sloane	
  Street	
  in	
  London.	
  The	
  price	
  of	
  Jo	
  Malone’s	
  fragrances	
  
ranges	
  from	
  £82	
  to	
  £100	
  for	
  a	
  100	
  ml	
  bottle.	
  
	
  
The	
  particularity	
  of	
  the	
  brand	
  is	
  the	
  fact	
  that	
  it	
  offers	
  co-­‐ed	
  scents	
  that	
  can	
  be	
  combined	
  
in	
   order	
   to	
   create	
   a	
   personalised	
   perfume.	
   A	
   special	
   attention	
   is	
   also	
   granted	
   to	
   a	
  
premium	
  packaging,	
  simple	
  and	
  tasteful.	
  	
  
	
  
Since	
  1999	
  the	
  company	
  is	
  part	
  of	
  the	
  beauty	
  industry	
  giant	
  Estee	
  Lauder	
  Inc.	
  and	
  is	
  
distributed	
  in	
  33	
  countries	
  all	
  over	
  the	
  world.	
  	
  
	
  
The	
  last	
  marketing	
  campaign	
  of	
  the	
  brand,	
  for	
  the	
  launch	
  of	
  the	
  “Jo	
  loves”	
  fragrance	
  line	
  
(2015),	
   has	
   generated	
   	
   £1	
   billion	
   revenue	
   for	
   the	
   UK	
   branch.	
   (Burn-­‐Callander,	
   R.	
   Jo	
  
Malone	
  survives	
  'the	
  wilderness	
  years'	
  to	
  come	
  back	
  fighting,	
  2015)	
  
	
  
The	
  brand’s	
  strength	
  is	
  the	
  possibility	
  to	
  combine	
  different	
  scents	
  in	
  order	
  to	
  create	
  one	
  
original	
  fragrance	
  –	
  an	
  unusual	
  way	
  to	
  engage	
  with	
  the	
  customer.	
  This	
  option	
  makes	
  the	
  
brand	
   specific	
   and	
   differentiates	
   it	
   from	
   other	
   perfume	
   houses	
   such	
   as	
   Penhaligon’s.	
  
Another	
   advantage	
   is	
   the	
   launch	
   of	
   the	
   “Jo	
   Loves”	
   line,	
   which	
   ads	
   new	
   scents	
   to	
   an	
  
already	
  wide	
  collection	
  of	
  perfumes.	
  A	
  weakness	
  comparing	
  to	
  Penhaligon’s	
  could	
  be	
  the	
  
lack	
  of	
  a	
  real	
  heritage	
  as	
  well	
  as	
  a	
  packaging	
  that	
  can	
  be	
  perceived	
  as	
  too	
  simple.	
  	
  
	
  
	
  
	
  
	
  
	
  
	
  
  14	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Strengths	
  
	
  
1. Possibility	
   to	
   create	
   a	
   personalised	
  
perfume	
  
2. Business	
  built	
  on	
  customer	
  feedback	
  
–	
   first	
   orders	
   came	
   from	
   word	
   of	
  
mouth	
  referrals	
  (Silverpop,	
  2014)	
  
3. Clear	
  premium	
  positioning	
  
	
  
	
  
Weaknesses	
  
1. Repetitive	
  packaging	
  
	
  
	
  
Opportunities	
  
	
  
1. Personalized	
  collections	
  
2. New	
  markets	
  
	
  
	
  
	
  
  15	
  
c. Creed	
  	
  (Creed	
  Boutique,	
  2015,	
  Innovation	
  excellence,	
  2012)	
  
	
  
Creed	
   is	
   a	
   niche	
   perfume	
   house	
   based	
   in	
   Paris.	
   James	
   Creed	
   founded	
   it	
   in	
   London	
   in	
  
1760.	
  Originally	
  the	
  brand	
  was	
  supplying	
  the	
  English	
  Court	
  with	
  clothing,	
  scented	
  gloves	
  
and	
  fragrances.	
  	
  
	
  
The	
   brand	
   became	
   known	
   for	
   fragrances	
   from	
   the	
   1960s	
   and	
   started	
   to	
   be	
   truly	
  
successful	
  in	
  1985,	
  with	
  the	
  creation	
  of	
  the	
  ”Green	
  Irish	
  Tweed”	
  fragrance,	
  known	
  for	
  
being	
  used	
  by	
  Robert	
  De	
  Niro	
  and	
  Sylvester	
  Stallone	
  amongst	
  others.	
  	
  
	
  
Today	
   the	
   brand	
   is	
   targeting	
   men	
   and	
   women	
   attached	
   to	
   traditions	
   and	
   to	
   a	
   classic	
  
lifestyle,	
  and	
  with	
  a	
  rather	
  high	
  income	
  as	
  the	
  price	
  range	
  of	
  their	
  products	
  is	
  very	
  high	
  
(from	
  	
  £175	
  to	
  £215	
  for	
  a	
  100	
  ml	
  bottle).	
  Creed	
  perfumes	
  are	
  distributed	
  in	
  France,	
  The	
  
United	
  Kingdom	
  and	
  The	
  United	
  States.	
  
	
  
Similarly	
   to	
   other	
   luxurious	
   perfume	
   houses,	
   its	
   main	
   marketing	
   strategy	
   is	
   its	
   long	
  
heritage	
  and	
  a	
  sumptuous	
  image	
  conveyed	
  through	
  word	
  of	
  mouth.	
  The	
  history	
  of	
  the	
  
brand	
  is	
  obviously	
  an	
  advantage	
  for	
  the	
  brand	
  –	
  it	
  is	
  what	
  makes	
  it	
  unique.	
  However,	
  the	
  
products’	
  prices	
  being	
  higher	
  than	
  Penhaligon’s	
  ones,	
  Creed	
  can	
  be	
  perceived	
  as	
  a	
  very	
  
niche	
   and	
   hardly	
   accessible	
   brand.	
   Moreover,	
   brand	
   ambassadors	
   being	
   high	
   range	
  
celebrities,	
  consumers	
  may	
  have	
  difficulty	
  to	
  identify	
  themselves	
  with	
  the	
  brand.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
  16	
  
	
  
	
  
	
  
	
  
	
  
	
   	
  
	
  
Strengths	
  
	
  
1. Brand	
  represented	
  by	
  celebrities	
  (e.g.	
  
Robert	
  De	
  Niro)	
  
	
  
	
  
Weaknesses	
  
1. Too	
  niche	
  
2. Targets	
   people	
   with	
   a	
   high	
   income	
   and	
  
attached	
   to	
   tradition	
   –	
   unsuitable	
   for	
  
young	
  men	
  and	
  women	
  as	
  it	
  gives	
  an	
  old-­‐
fashioned	
  image	
  	
  
	
  
	
  
Opportunities	
  
	
  
1. Launching	
  a	
  cheaper	
  perfume	
  line	
  to	
  
renew	
  the	
  brand’s	
  image	
  
	
  
	
  
Threats	
  
1. Too	
   expensive	
   products	
   might	
   lead	
   to	
  
losing	
   some	
   customers	
   to	
   other	
   niche	
  
brands	
   with	
   lower	
   prices	
   but	
   a	
   similar	
  
quality	
  (Eg.	
  Penhaligon’s)	
  
	
  
  17	
  
d. Floris	
  	
  
	
  
(Floris	
  London,	
  2015;	
  Fragrantica,	
  2015)	
  
	
  
Floris	
  is	
  the	
  oldest	
  English	
  retailer	
  of	
  toiletries	
  and	
  accessories.	
  It	
  is	
  based	
  in	
  London	
  and	
  
was	
   founded	
   in	
   1730	
   by	
   Juan	
   Famenius	
   Floris	
   and	
   his	
   wife	
   Elizabeth.	
   Originally,	
   the	
  
boutique	
   offered	
   grooming	
   and	
   shaving	
   products	
   as	
   well	
   as	
   perfumes.	
   The	
   brand	
  
received	
  a	
  Royal	
  Warrant	
  in	
  1820	
  as	
  ”Smooth	
  Pointed	
  Comb	
  Maker”	
  to	
  King	
  George	
  IV.	
  
	
  
Floris	
   perfumes	
   have	
   been	
   used	
   by	
   Royalty,	
   historical	
   characters	
   and	
   celebrities,	
  
including	
   Winston	
   Churchill,	
   Florence	
   Nightengale	
   or	
   Marilyn	
   Monroe.	
   The	
   company	
  
offers	
  four	
  collections	
  of	
  fragrances	
  (it	
  has	
  a	
  portfolio	
  of	
  44	
  perfumes);	
  men’s	
  fragrances,	
  
women’s	
  fragrances,	
  the	
  Classic	
  collection	
  and	
  the	
  Private	
  collection,	
  as	
  well	
  as	
  bath	
  and	
  
body	
   care	
   products	
   to	
   accompany	
   the	
   fragrances,	
   candles,	
   and	
   home	
   scents.	
   Floris’	
  
perfumes	
  are	
  priced	
  at	
  £75	
  for	
  100ml	
  and	
  the	
  products	
  are	
  distributed	
  exclusively	
  in	
  the	
  
United	
  Kingdom.	
  	
  
	
  
The	
   brand	
   is	
   famous	
   for	
   its	
   rich	
   heritage,	
   as	
   descendants	
   of	
   the	
   founders	
   have	
   been	
  
running	
  it	
  until	
  today.	
  It	
  celebrated	
  its	
  280th	
  anniversary	
  in	
  2010.	
  	
  
	
  
Similarly	
  to	
  Creed	
  and	
  Penhaligon’s,	
  Floris’	
  main	
  strength	
  is	
  its	
  rich	
  heritage.	
  The	
  fact	
  
that	
  it	
  is	
  the	
  oldest	
  perfume	
  house	
  in	
  the	
  UK	
  is	
  clearly	
  an	
  asset.	
  Also,	
  Floris’	
  perfumes	
  
being	
   a	
   little	
   cheaper	
   than	
   Penhaligon’s	
   ones,	
   consumers	
   might	
   choose	
   them	
   over	
  
another	
   brand.	
   But	
   an	
   obvious	
   weakness	
   would	
   be	
   Floris’	
   limited	
   distribution:	
   their	
  
retail	
  stores	
  are	
  in	
  the	
  UK	
  only,	
  which	
  forces	
  people	
  from	
  abroad	
  to	
  buy	
  their	
  products	
  
online.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
  18	
  
	
  
Positioning	
  map	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Strengths	
  
	
  
1. Glamorous	
  image	
  
2. Iconic	
  brand	
  
3. Accessible	
   prices	
   for	
   a	
   niche	
   brand	
  
(less	
  expensive	
  than	
  Penhaligon’s)	
  
	
  
Weaknesses	
  
	
  
1. Limited	
  distribution	
  
2. Low	
  awareness	
  
	
  
	
  
Opportunities	
  
	
  
1. Exclusive	
   communication	
   campaign	
  
to	
   increase	
   word	
   of	
   mouth	
   and	
  
encourage	
  trial	
  
	
  
	
  
Threats	
  
	
  
1. Intense	
   competition	
   and	
   lack	
   of	
  
communication	
  may	
  affect	
  the	
  brand	
  and	
  
make	
  it	
  loose	
  customers	
  to	
  competitors	
  
	
  
  19	
  
e. Penhaligon’s:	
  strengths	
  
	
  
• Penhaligon’s	
  is	
  a	
  famous	
  brand,	
  symbol	
  of	
  British	
  elegance	
  
• It	
  has	
  a	
  rich	
  heritage	
  (150	
  years	
  of	
  history	
  in	
  the	
  UK)	
  	
  
• It	
  is	
  known	
  for	
  the	
  good	
  quality	
  of	
  its	
  products,	
  which	
  gives	
  the	
  brand	
  a	
  positive	
  
image	
  
• It	
  offers	
  a	
  variety	
  of	
  products,	
  from	
  fragrances	
  and	
  candles	
  to	
  products	
  for	
  the	
  
bath	
  and	
  the	
  body	
  
• Penhaligon’s	
   demonstrates	
   that	
   fragrance	
   can	
   be	
   timeless:	
   it	
   is	
   a	
   brand	
   with	
  
tradition	
  and	
  a	
  modern	
  brand	
  at	
  the	
  same	
  time:	
  customers	
  have	
  the	
  opportunity	
  
to	
  buy	
  the	
  same	
  perfumes	
  as	
  the	
  ones	
  existing	
  in	
  1902.	
  	
  
• The	
  great	
  service	
  delivered	
  in	
  store	
  encourages	
  customers	
  to	
  become	
  brand	
  loyal	
  
• The	
  niche	
  sector	
  being	
  relatively	
  unaffected	
  by	
  the	
  recession,	
  Penhaligon’s	
  does	
  
not	
  have	
  to	
  cut	
  its	
  budget	
  and	
  has	
  been	
  reporting	
  profits	
  for	
  the	
  last	
  two	
  years	
  
	
  
f. Penhaligon’s:	
  weaknesses	
  
	
  
• Penhaligon’s	
  can	
  sometimes	
  be	
  perceived	
  as	
  old	
  fashioned,	
  due	
  to	
  the	
  packaging	
  
of	
  the	
  products	
  and	
  the	
  fact	
  that	
  some	
  of	
  the	
  scents	
  are	
  the	
  same	
  as	
  in	
  the	
  1900s.	
  
• It	
   can	
   be	
   seen	
   as	
   too	
   niche,	
   because	
   of	
   its	
   limited	
   distribution	
   and	
   high	
   price	
  
(approximately	
  £100	
  for	
  a	
  100	
  ml	
  fragrance)	
  
• Low	
   brand-­‐awareness	
   as	
   it	
   is	
   mainly	
   based	
   on	
   word-­‐of-­‐mouth	
   and	
   small	
  
marketing	
  actions	
  (no	
  advertising,	
  no	
  promotion)	
  
	
   	
  
  20	
  
3.	
  Overview	
  of	
  the	
  brand	
  
	
  
	
  
(Interview	
   with	
   Nicolas	
   Fouché,	
   in	
   charge	
   of	
   the	
   Penhaligon’s	
   boutique	
   in	
   Paris	
   (rue	
  
Saint-­‐Honoré),	
   2015;	
   Balmford,	
   G.	
   Q&A:	
   Sarah	
   Rotheram-­‐CEO-­‐Penhaligon's	
   -­‐	
   Retail	
  
Focus	
  -­‐	
  Retail	
  Interior	
  Design	
  and	
  Visual	
  Merchandising,	
  2015;	
  Ceallaigh,	
  J.,	
  London's	
  top	
  
shops:	
   Penhaligon's	
   perfumery,	
   2011;	
   Mimifroufrou,	
   2015;	
   Penhaligons.com,	
   2015;	
  
Puig.com,	
  2015;	
  Waite,	
  S.	
  Odiferess:	
  The	
  Scent	
  of	
  British	
  Spirit,	
  Part	
  1:	
  Penhaligon's	
  and	
  
The	
  Reinvention	
  of	
  Heritage,	
  2013;	
  Fragrantica,	
  2015)	
  
	
  
“Our	
  fragrant	
  adventure	
  began	
  in	
  the	
  Victorian	
  era	
  of	
  decadence	
  and	
  carries	
  us	
  into	
  the	
  
future	
   as	
   we	
   strive	
   to	
   create	
   original	
   scents	
   for	
   the	
   discerning	
   eccentrics	
   of	
   today.”	
  
Penhaligons.com	
  
	
  
Penhaligon’s	
   is	
   one	
   of	
   the	
   most	
   prestigious	
   British	
   perfume	
   houses.	
   The	
   brand	
   was	
  
founded	
   in	
   1870	
   by	
   William	
   Henry	
   Penhaligon,	
   Queen	
   Victoria’s	
   Court	
   barber	
   and	
  
perfumer.	
  It	
  is	
  the	
  holder	
  of	
  two	
  Royal	
  Warrants,	
  symbol	
  of	
  excellence	
  and	
  quality.	
  The	
  
first	
  Penhaligon’s	
  store	
  opened	
  at	
  Jermyn	
  Street,	
  next	
  to	
  Turkish	
  Baths,	
  and	
  inspired	
  the	
  
scent	
  “Hammam	
  Bouquet”,	
  created	
  in	
  1872.	
  	
  
	
  
The	
  brand	
  positions	
  itself	
  amongst	
  luxury	
  and	
  premium	
  brands,	
  promoting	
  an	
  image	
  of	
  
glamour,	
  sensuousness,	
  uniqueness	
  and	
  eccentricity.	
  It	
  targets	
  men	
  and	
  women	
  from	
  a	
  
rather	
   upper	
   social	
   class,	
   from	
   18	
   to	
   65	
   years	
   old,	
   fashion	
   conscious	
   and	
   slightly	
  
eccentric	
  yet	
  attached	
  to	
  traditions.	
  The	
  brand	
  was	
  clearly	
  masculine	
  at	
  first	
  but	
  today	
  
more	
  and	
  more	
  women	
  are	
  becoming	
  clients.	
  Every	
  profile	
  is	
  targeted;	
  some	
  buyers	
  are	
  
collectors,	
   perfume	
   passionates,	
   others	
   are	
   attached	
   to	
   traditions.	
   Many	
   tourists	
   buy	
  
Penhaligon’s	
  perfumes	
  as	
  well.	
  
	
  
Each	
  of	
  Penhaligon’s	
  fragrances	
  echoes	
  a	
  British	
  story	
  and	
  is	
  special,	
  constructed	
  with	
  
fine	
  and	
  rare	
  ingredients	
  and	
  with	
  the	
  latest	
  technologies	
  in	
  fragrance	
  chemistry.	
  Most	
  
perfumes	
  are	
  built	
  around	
  a	
  classic	
  structure	
  with	
  head,	
  heart	
  and	
  base	
  notes.	
  	
  
The	
  most	
  iconic	
  one	
  is	
  Blenheim	
  Bouquet,	
  created	
  in	
  1902	
  for	
  the	
  Duke	
  of	
  Marlborough	
  
and	
  the	
  best	
  seller	
  is	
  Bluebell,	
  used	
  by	
  Lady	
  Diana.	
  
  21	
  
The	
   success	
   of	
   Penhaligon’s	
   is	
   due	
   to	
   its	
   strong	
   heritage	
   but	
   also	
   its	
   timeless	
   image.	
  
Customers	
  are	
  curious	
  about	
  discovering	
  a	
  brand	
  that	
  seems	
  traditional	
  and	
  modern	
  at	
  
the	
  same	
  time.	
  	
  
	
  
They	
  are	
  looking	
  for	
  something	
  that	
  gives	
  them	
  the	
  feeling	
  of	
  uniqueness	
  and	
  originality	
  
and	
  are	
  attracted	
  by	
  the	
  vintage	
  side	
  of	
  the	
  label.	
  Moreover,	
  they	
  are	
  aware	
  of	
  the	
  good	
  
quality	
  of	
  the	
  products,	
  which	
  justifies	
  a	
  rather	
  high	
  price	
  range	
  (around	
  £120	
  for	
  a	
  100	
  
ml	
   bottle).	
   The	
   service	
   in	
   store	
   is	
   also	
   mastered:	
   each	
   customer	
   receives	
   special	
  
attention	
  from	
  the	
  sales	
  attendant	
  who	
  knows	
  everything	
  about	
  the	
  products	
  sold	
  and	
  is	
  
a	
  great	
  advisor.	
  
	
  
Another	
  positive	
  aspect	
  of	
  the	
  brand	
  is	
  the	
  fact	
  that	
  its	
  awareness	
  is	
  based	
  on	
  word-­‐of-­‐
mouth	
  only.	
  Penhaligon’s	
  does	
  not	
  advertise	
  through	
  out-­‐of-­‐home,	
  TV	
  or	
  press	
  and	
  does	
  
not	
  use	
  any	
  brand	
  muse,	
  which	
  makes	
  it	
  even	
  more	
  special	
  comparing	
  to	
  other	
  perfume	
  
houses.	
   However,	
   the	
   brand	
   does	
   some	
   experiential	
   marketing	
   for	
   the	
   launch	
   of	
   new	
  
fragrances.	
  For	
  the	
  “Tralala”	
  perfume,	
  the	
  boutique	
  in	
  Paris	
  invited	
  burlesque	
  dancers	
  to	
  
make	
  a	
  show	
  on	
  the	
  storefront.	
  Penhaligon’s	
  last	
  perfume	
  “Ostara”	
  was	
  advertised	
  in	
  
London	
   by	
   a	
   person	
   riding	
   a	
   branded	
   bicycle	
   filled	
   with	
   yellow	
   and	
   white	
   flowers	
  
(colours	
  of	
  the	
  Ostara	
  perfume).	
  This	
  strategy	
  seems	
  unusual	
  but	
  has	
  been	
  working	
  well	
  
so	
  far,	
  and	
  Penhaligon’s	
  reports	
  positive	
  results	
  for	
  the	
  last	
  few	
  years.	
  
	
  
Since	
   January	
   2015	
   Penhaligon’s	
   is	
   owned	
   by	
   Puig,	
   a	
   Spanish	
   fashion	
   and	
   fragrance	
  
house,	
  which	
  also	
  has	
  brands	
  such	
  as	
  the	
  French	
  Perfume	
  House	
  L’Artisan	
  Parfumeur,	
  
Paco	
  Rabane,	
  Prada,	
  Valentino,	
  Comme	
  Des	
  Garçons	
  or	
  Nina	
  Ricci.	
  The	
  group	
  sells	
  its	
  
products	
  in	
  over	
  140	
  countries	
  worldwide	
  and	
  had	
  revenues	
  of	
  €1,49	
  billion	
  in	
  2013.	
  
Penhaligon’s	
  perceives	
  its	
  acquisition	
  by	
  Puig	
  as	
  an	
  opportunity	
  to	
  be	
  boosted	
  but	
  hopes	
  
that	
  it	
  won’t	
  loose	
  its	
  unique	
  and	
  traditional	
  image.	
  The	
  next	
  step	
  that	
  the	
  brand	
  wishes	
  
to	
  take	
  is	
  to	
  expend	
  to	
  Asia	
  (there	
  is	
  already	
  one	
  boutique	
  in	
  Hong	
  Kong),	
  to	
  the	
  USA	
  and	
  
to	
  open	
  two	
  other	
  boutiques	
  in	
  France.	
  	
  
	
  
	
  
	
   	
  
  22	
  
Keller’s	
  brand	
  equity	
  model	
  
	
  
1. Resonance:	
   Loyalty,	
   engaged	
   customers	
   and	
   brand	
   ambassadors.	
   The	
   main	
  
purpose	
  of	
  the	
  campaign	
  is	
  to	
  increase	
  brand	
  awareness	
  in	
  order	
  to	
  attract	
  more	
  
customers	
   but	
   also	
   to	
   retain	
   the	
   current	
   ones	
   and	
   make	
   them	
   brand	
  
ambassadors.	
  	
  	
  
	
  
2. Judgements:	
  High	
  quality,	
  excellence,	
  satisfaction	
  and	
  perfect	
  in-­‐store	
  servicing.	
  
The	
   purpose	
   of	
   the	
   campaign	
   is	
   to	
   recall	
   Penhaligon’s	
   excellent	
   quality.	
   The	
  
brand’s	
   perfumes	
   are	
   made	
   with	
   the	
   latest	
   fragrance	
   chemistry	
   technologies,	
  
which	
  make	
  the	
  scents	
  last	
  for	
  a	
  long	
  time.	
  	
  
	
  
3. Feelings:	
  uniqueness,	
  sophistication.	
  The	
  integrated	
  marketing	
  campaign	
  would	
  
aim	
  at	
  emphasizing	
  the	
  glamorous,	
  sensual	
  image	
  of	
  the	
  brand.	
  Its	
  purpose	
  would	
  
be	
  for	
  a	
  person	
  seeing	
  the	
  advert	
  to	
  be	
  transported	
  to	
  ancient	
  times,	
  to	
  traditional	
  
England.	
   The	
   sophisticated	
   packaging,	
   spotlighted	
   on	
   the	
   advert,	
   would	
  
automatically	
  attract	
  the	
  customer.	
  
	
  
4. Performance:	
   stylish,	
   rather	
   expensive	
   but	
   worth	
   the	
   spent.	
   Penhaligon’s	
  
positions	
  itself	
  as	
  a	
  luxury	
  brand,	
  which	
  explains	
  a	
  rather	
  high	
  price	
  positioning	
  
of	
   the	
   products.	
   We	
   need	
   to	
   recall	
   that	
   it	
   is	
   worth	
   the	
   spent	
   as	
   it	
   is	
   the	
   finest	
  
quality	
  and	
  also	
  a	
  very	
  special	
  and	
  stylish	
  brand.	
  
	
  
5. Imagery:	
  classic,	
  vintage.	
  The	
  purpose	
  of	
  the	
  brand	
  image	
  is	
  to	
  create	
  emotions.	
  
Even	
  if	
  the	
  imagery	
  of	
  Penhaligon’s	
  is	
  classic	
  and	
  vintage,	
  we	
  want	
  to	
  highlight	
  
the	
   fact	
   that	
   the	
   customer	
   does	
   not	
   have	
   to	
   be	
   a	
   fan	
   of	
   vintage	
   brands	
   to	
   be	
  
attracted	
   by	
   this	
   one.	
   However,	
   the	
   classic	
   image	
   will	
   definitely	
   stay	
   in	
   the	
  
campaign,	
  as	
  we	
  want	
  for	
  the	
  brand	
  to	
  keep	
  its	
  identity.	
  	
  
	
  
6. Salience:	
  the	
  tradition	
  and	
  the	
  heritage.	
  It	
  is	
  the	
  first	
  thing	
  that	
  comes	
  to	
  our	
  mind	
  
when	
  we	
  think	
  about	
  Penhaligon’s.	
  Everything	
  in	
  the	
  store	
  reminds	
  us	
  of	
  about	
  
the	
  long	
  heritage	
  of	
  the	
  company.	
  This	
  part	
  will	
  also	
  be	
  emphasized	
  during	
  the	
  
  23	
  
campaign,	
  as	
  it	
  is	
  what	
  makes	
  Penhaligon’s	
  different	
  from	
  most	
  of	
  the	
  perfume	
  
houses.	
  	
  
	
  
In	
  order	
  to	
  understand	
  our	
  brand	
  in	
  a	
  really	
  clear	
  way	
  and	
  establish	
  its	
  positioning	
  we	
  
will	
  be	
  using	
  the	
  Profile	
  4	
  D	
  marketing	
  model.	
  This	
  profile	
  helps	
  us	
  understand	
  the	
  type	
  
of	
  customers	
  that	
  go	
  shopping	
  at	
  Penhaligon’s,	
  as	
  well	
  as	
  the	
  relationship	
  between	
  the	
  
brand	
  and	
  its	
  audience.	
  
	
  
• The	
   value	
   profile	
   defines	
   the	
   value	
   of	
   the	
   customer	
   for	
   the	
   brand,	
   the	
   kind	
   of	
  
relationship	
   between	
   both	
   as	
   well	
   as	
   how	
   the	
   customer	
   perceives	
   the	
   label.	
  	
  
Penhaligon’s	
  is	
  perceived	
  as	
  a	
  “love	
  brand”,	
  which	
  means	
  that	
  its	
  customers	
  are	
  
strongly	
  attached	
  to	
  the	
  brand,	
  most	
  of	
  them	
  are	
  brand	
  loyalists.	
  
	
  
• The	
   Like	
   profile	
   is	
   the	
   kind	
   of	
   hobbies	
   and	
   passions	
   Penhaligon’s	
   customers	
  
would	
   have.	
   Currently,	
   Penhaligon’s	
   customers	
   are	
   interested	
   in	
   fashion	
   and	
  
culture,	
  they	
  read	
  news	
  (politics,	
  economics)	
  
	
  
• The	
  persuasion	
  profile	
  is	
  the	
  image	
  that	
  the	
  brand	
  represents	
  and	
  that	
  attracts	
  
customers.	
  Here,	
  it	
  is	
  the	
  exclusive	
  and	
  original	
  reflection	
  given	
  by	
  the	
  company,	
  
as	
  well	
  as	
  the	
  tradition	
  mixed	
  with	
  eccentricity.	
  
	
  
• The	
   media	
   profile	
   is	
   the	
   type	
   of	
   media	
   that	
   would	
   reach	
   the	
   brand’s	
   current	
  
target	
  audience.	
  As	
  most	
  of	
  Penhaligon’s	
  clients	
  are	
  so	
  far	
  middle-­‐aged	
  men	
  and	
  
women,	
  from	
  a	
  rather	
  high	
  social	
  class	
  and	
  with	
  an	
  education,	
  magazines	
  would	
  
be	
  the	
  media	
  type	
  that	
  would	
  fit	
  the	
  best.	
  	
  
	
  
Thanks	
  to	
  this	
  model	
  we	
  are	
  able	
  to	
  realize	
  the	
  kind	
  of	
  customers	
  Penhaligon’s	
  currently	
  
attracts	
   as	
   well	
   as	
   to	
   seize	
   the	
   opportunity	
   of	
   expending	
   the	
   target	
   audience	
   for	
   the	
  
campaign.	
  	
  
	
  
The	
  “brand	
  identity	
  Kapferer’s	
  prism”	
  is	
  also	
  a	
  useful	
  marketing	
  model	
  –	
  it	
  resembles	
  
the	
   brand	
   wheel	
   but	
   is	
   a	
   more	
   elaborated	
   way.	
   It	
   defines	
   the	
   brand’s	
   products	
   and	
  
personality,	
  which	
  is	
  useful	
  for	
  our	
  positioning	
  statement.	
  
  24	
  
• The	
   physical	
   facet	
   is	
   what	
   the	
   product	
   does	
   and	
   its	
   physical	
   external	
   image.	
  
Penhaligon’s	
  perfume	
  bottle	
  is	
  made	
  of	
  glass	
  with	
  a	
  plastic	
  cap	
  decorated	
  by	
  a	
  
bow	
   tie.	
   The	
   fragrance	
   has	
   a	
   strong	
   scent.	
   The	
   dominating	
   colours	
   within	
   the	
  
brand	
  communication	
  and	
  the	
  boutiques	
  are	
  blue,	
  grey,	
  orange,	
  gold	
  and	
  white.	
  
	
  
• The	
  relationship	
  is	
  the	
  way	
  the	
  brand	
  interacts	
  with	
  its	
  customers,	
  what	
  it	
  brings	
  
to	
  the	
  customers.	
  Here	
  it	
  is	
  the	
  idea	
  of	
  personal	
  success	
  and	
  cultural	
  distinction.	
  
	
  
• The	
   reflection	
   is	
   how	
   other	
   people	
   would	
   perceive	
   a	
   typical	
   customer	
   of	
   this	
  
brand.	
  Penhaligon’s	
  typical	
  client	
  is	
  a	
  well-­‐educated	
  and	
  refined	
  person	
  with	
  a	
  
touch	
  of	
  eccentricity.	
  	
  
	
  
• The	
   personality	
   describes	
   the	
   identification	
   with	
   a	
   person,	
   the	
   human	
  
characteristics	
   of	
   the	
   brand.	
   In	
   our	
   case,	
   Penhaligon’s	
   personality	
   would	
   be	
  
sophisticated,	
  elegant,	
  distinguished,	
  eccentric	
  and	
  self-­‐confident.	
  
	
  
• The	
  culture	
  is	
  the	
  kind	
  of	
  values	
  communicated	
  through	
  the	
  brand,	
  which	
  for	
  our	
  
label	
  would	
  be	
  tradition	
  and	
  fantasy.	
  
	
  
• The	
  self-­‐image	
  is	
  the	
  mirror	
  the	
  target	
  groups	
  of	
  the	
  brand	
  holds	
  to	
  itself.	
  For	
  
Penhaligon’s	
  it	
  would	
  be	
  being	
  part	
  of	
  the	
  elite,	
  looking	
  like	
  a	
  person	
  looking	
  for	
  
“high	
  standards”.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
  25	
  
These	
  two	
  models	
  are	
  helpful	
  for	
  a	
  deep	
  understanding	
  of	
  our	
  brand’s	
  positioning.	
  	
  
Thus,	
  Penhaligon’s	
  are	
  sophisticated	
  perfumes	
  with	
  a	
  touch	
  of	
  eccentricity	
  for	
  men	
  and	
  
women	
  from	
  35	
  to	
  55	
  years	
  old,	
  belonging	
  to	
  the	
  ABC1	
  social	
  class,	
  looking	
  for	
  a	
  brand	
  
that	
  will	
  make	
  them	
  look	
  elegant	
  but	
  feel	
  unique.	
  Unlike	
  its	
  competitors,	
  Penhaligon’s	
  is	
  
a	
  niche	
  brand	
  that	
  offers	
  a	
  variety	
  of	
  exclusive	
  products	
  in	
  a	
  beautiful	
  packaging.	
  
	
  
The	
   Unique	
   Selling	
   Proposition	
   for	
   Penhaligon’s	
   would	
   be	
   “exclusive	
   perfumes	
   for	
  
people	
  with	
  high	
  standards”.	
  
	
  
	
   	
  
  26	
  
	
  
4. Clarification	
   of	
   the	
   strategic	
   marketing	
   opportunity	
   to	
   be	
  
developed	
  for	
  the	
  brand	
  
	
  
Ansoff	
  Matrix	
  
	
  
	
  
	
   Existing	
  products	
  	
  
	
  
	
  
New	
  products	
  
Existing	
  market	
   Market	
  penetration	
  
	
  
	
  
Product	
  development	
  
New	
  market	
   Market	
  development	
  
	
  
	
  
Diversification	
  
	
  
According	
   to	
   the	
   Ansoff	
   matrix	
   above,	
   Penhaligon’s’	
   current	
   marketing	
   strategy	
   is	
   to	
  
develop	
   their	
   products,	
   launching	
   at	
   least	
   one	
   new	
   perfume	
   per	
   year	
   –	
   currently	
   the	
  
launch	
  of	
  the	
  N°33	
  fragrance	
  is	
  supported	
  by	
  an	
  online	
  marketing	
  campaign	
  addressing	
  
24-­‐35	
   years	
   old	
   men	
   (with	
   the	
   #VeryPenhaligons).	
   Another	
   strategy	
   developed	
   by	
  
Penhaligon’s	
  is	
  to	
  expand	
  their	
  brand	
  into	
  other	
  countries.	
  Penhaligon’s	
  already	
  exists	
  in	
  
the	
  UK,	
  in	
  the	
  USA,	
  in	
  France,	
  as	
  well	
  as	
  in	
  Singapore	
  and	
  Hong	
  Kong.	
  However,	
  it	
  is	
  
planning	
  to	
  develop	
  more	
  boutiques	
  in	
  New	
  York,	
  France	
  and	
  Japan.	
  	
  
	
  
For	
   our	
   marketing	
   campaign	
   we	
   want	
   to	
   seize	
   the	
   opportunity	
   we	
   have	
   identified	
  
previously	
  which	
  is	
  the	
  fact	
  that	
  “women	
  aged	
  25-­‐34	
  represent	
  a	
  growing	
  opportunity	
  
for	
   the	
   fragrance	
   industry,	
   but	
   manufacturers	
   should	
   not	
   ignore	
   older	
   consumers	
  
(Webcache,	
   2015)”	
   as	
   well	
   as	
   the	
   threat	
   of	
   perfume	
   brands	
   being	
   “season-­‐based	
  
  27	
  
products”	
  (sales	
  growing	
  during	
  Christmas).	
  We	
  also	
  want	
  to	
  keep	
  the	
  “tradition	
  with	
  
eccentricity”	
   image	
   the	
   brand	
   has	
   been	
   communicating	
   until	
   now.	
   We	
   recall	
   that	
   the	
  
brand’s	
  “adventure	
  began	
  in	
  the	
  Victorian	
  era	
  of	
  decadence	
  and	
  carries	
  us	
  into	
  the	
  future	
  
as	
   we	
   strive	
   to	
   create	
   original	
   scents	
   for	
   the	
   discerning	
   eccentrics	
   of	
   today.”	
  
(Penhaligons.com).	
  	
  
	
  
We	
   want	
   to	
   combine	
   these	
   factors	
   in	
   order	
   to	
   develop	
   a	
   coherent	
   strategy	
   that	
   will	
  
target	
   men	
   and	
   women	
   24-­‐35	
   and	
   45-­‐54	
   years	
   old,	
   ABC1	
   social	
   class,	
   looking	
   for	
   an	
  
original	
   brand	
   that	
   will	
   recall	
   the	
   values	
   they	
   care	
   about	
   along	
   with	
   the	
   touch	
   of	
  
eccentricity	
  they	
  need.	
  	
  
	
  
Our	
   campaign	
   catchphrase	
   will	
   be	
   “Elegance	
   with	
   a	
   touch	
   of	
   eccentricity”	
   and	
   the	
  
strategy	
   will	
   be	
   to	
   retain	
   our	
   current	
   35-­‐54	
   men	
   and	
   women	
   customers	
   by	
  
communicating	
  that	
  buying	
  our	
  perfumes	
  is	
  “adding	
  a	
  touch	
  of	
  fantasy	
  to	
  their	
  classic	
  
outfit”	
   and	
   acquire	
   men	
   and	
   women	
   25-­‐34	
   years-­‐old	
   customers	
   by	
   ensuring	
   that	
   the	
  
touch	
   of	
   eccentricity	
   given	
   by	
   a	
   Penhaligon’s	
   fragrance	
   is	
   what	
   will	
   make	
   them	
   feel	
  
unique	
  and	
  thus	
  self-­‐confident.	
  	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
  28	
  
5. Quantified	
  marketing	
  objectives,	
  implications	
  for	
  the	
  IMC	
  
and	
  financial	
  situation	
  
	
  
The	
  main	
  purpose	
  of	
  our	
  integrated	
  marketing	
  communications	
  campaign	
  is	
  to	
  become	
  
the	
   brand	
   of	
   reference	
   when	
   thinking	
   of	
   luxurious	
   and	
   elegant	
   fragrance	
   labels.	
   As	
  
Penhaligon’s	
  is	
  an	
  English	
  luxury	
  brand	
  with	
  heritage	
  but	
  its	
  main	
  marketing	
  strategy	
  so	
  
far	
  has	
  been	
  word-­‐of-­‐mouth,	
  we	
  will	
  be	
  looking	
  to	
  increase	
  the	
  awareness	
  of	
  the	
  brand	
  
and	
  acquire	
  new	
  customers.	
  
	
  
Thus,	
  our	
  business	
  objective	
  is	
  to	
  increase	
  the	
  brand’s	
  turnover	
  to	
  £15	
  million	
  in	
  2016,	
  
as	
  it	
  was	
  around	
  12	
  million	
  in	
  2013	
  (last	
  available	
  financial	
  results,	
  Fame,	
  2015).	
  
	
  
Our	
  marketing	
  objective	
  is	
  to	
  increase	
  trial	
  via	
  call	
  to	
  action	
  amongst	
  the	
  24-­‐35	
  years	
  old	
  
men	
  and	
  women	
  target	
  group	
  by	
  10%	
  and	
  to	
  raise	
  the	
  brand	
  awareness	
  by	
  20%	
  by	
  the	
  
end	
  of	
  2016.	
  
	
  
Our	
  integrated	
  marketing	
  communications	
  objective	
  is	
  to	
  reinforce	
  the	
  brand	
  image	
  by	
  
acquiring	
   20.000	
   new	
   customers	
   amongst	
   the	
   25-­‐34	
   years	
   old	
   target	
   group,	
   and	
  
retaining	
  80.000	
  customers	
  amongst	
  the	
  35-­‐54	
  years	
  old	
  target	
  group.	
  
	
  
We	
  will	
  aim	
  at	
  achieving	
  these	
  objectives	
  through	
  press	
  advertising,	
  social	
  media	
  and	
  
content	
  marketing.	
  The	
  experiential	
  marketing	
  done	
  by	
  the	
  brand	
  so	
  far	
  has	
  been	
  very	
  
limited	
  and	
  took	
  place	
  in	
  a	
  few	
  boutiques	
  only.	
  The	
  main	
  thing	
  that	
  attracts	
  customers	
  
currently	
  is	
  the	
  image	
  of	
  the	
  brand	
  and	
  the	
  boutique	
  interiors,	
  as	
  well	
  as	
  the	
  service	
  
provided	
  in	
  store.	
  But	
  press	
  advertising	
  would	
  increase	
  word-­‐of-­‐mouth.	
  	
  
	
  
We	
   will	
   also	
   be	
   more	
   active	
   on	
   social	
   media,	
   posting	
   regularly	
   fashion	
   trends	
   of	
   the	
  
season	
   that	
   would	
   go	
   with	
   particular	
   Penhaligon’s	
   fragrances.	
   To	
   increase	
   the	
  
interaction	
  with	
  the	
  customers	
  we	
  would	
  create	
  a	
  social	
  media	
  contest	
  rewarded	
  with	
  
Penhaligon’s	
  products.	
  	
  
	
  
	
  
  29	
  
The	
  campaign	
  will	
  target	
  24-­‐35	
  and	
  35-­‐54	
  years	
  old	
  men	
  and	
  women,	
  ABC1	
  social	
  class,	
  
well-­‐educated	
   and	
   beauty	
   conscious.	
   The	
   campaign	
   will	
   emphasize	
   the	
   elegant	
   image	
  
that	
   the	
   brand	
   has	
   been	
   communicating	
   so	
   far	
   but	
   also	
   the	
   touch	
   of	
   eccentricity	
   that	
  
makes	
  it	
  so	
  unique.	
  
	
  
Penhaligon’s	
   does	
   not	
   share	
   financial	
   results	
   for	
   2014	
   but	
   we	
   do	
   have	
   some	
   of	
   the	
  
previous	
  fiscal	
  years	
  ones.	
  
Thus	
  we	
  know	
  that	
  the	
  company’s	
  turnover	
  was	
  £12.624.000	
  in	
  December	
  2013,	
  which	
  
shows	
  a	
  growth	
  compared	
  to	
  2012	
  when	
  it	
  was	
  £10.514.000	
  (Fame,	
  2015).	
  
	
  
The	
  profit	
  before	
  tax	
  was	
  £1.062.000	
  in	
  2013,	
  which	
  is	
  a	
  significant	
  progress	
  comparing	
  
to	
  the	
  previous	
  years.	
  2010	
  has	
  been	
  a	
  difficult	
  year	
  for	
  the	
  company	
  as	
  it	
  has	
  generated	
  
a	
  loss	
  of	
  £805.000.	
  The	
  brand	
  was	
  back	
  on	
  track	
  a	
  few	
  months	
  later,	
  announcing	
  a	
  profit	
  
of	
  £609.000	
  for	
  2011	
  and	
  £812.000	
  for	
  2012.	
  	
  
	
  
Because	
  we	
  have	
  seen	
  how	
  fast	
  our	
  brand	
  is	
  able	
  to	
  grow	
  we	
  aim	
  at	
  achieving	
  a	
  	
  
£15.000	
  k	
  turnover	
  after	
  our	
  campaign	
  (2016).	
  
	
  
	
   	
  
  30	
  
6. Summary	
  –	
  outlining	
  the	
  proposal	
  for	
  marketing	
  
communications	
  
	
  
Penhaligon’s	
  is	
  a	
  traditional	
  brand	
  offering	
  luxury	
  products	
  at	
  a	
  rather	
  high	
  price	
  for	
  
beauty	
  conscious	
  people	
  that	
  wish	
  to	
  feel	
  different	
  and	
  special,	
  and	
  do	
  not	
  like	
  mass-­‐
market	
   perfumes.	
   Despite	
   the	
   fact	
   that	
   the	
   brand	
   reports	
   profits,	
   its	
   awareness	
   stays	
  
limited,	
  as	
  its	
  main	
  strategy	
  to	
  attract	
  customers	
  is	
  word-­‐of-­‐mouth	
  and	
  a	
  little	
  activity	
  on	
  
social	
  media	
  as	
  well	
  as	
  some	
  limited	
  marketing	
  actions	
  for	
  the	
  launch	
  of	
  new	
  fragrances.	
  
	
  
The	
  purpose	
  of	
  the	
  integrated	
  marketing	
  communications	
  campaign	
  is	
  to	
  increase	
  this	
  
awareness	
   by	
   acquiring	
   20.000	
   new	
   customers	
   and	
   retaining	
   80.000	
   current	
   ones.	
   In	
  
order	
  to	
  achieve	
  this	
  goal	
  we	
  will	
  run	
  a	
  six-­‐months	
  integrated	
  campaign	
  based	
  on	
  the	
  
brand’s	
   values	
   of	
   elegance	
   and	
   eccentricity.	
   The	
   campaign	
   will	
   be	
   based	
   on	
   press	
  
advertising,	
  direct	
  marketing,	
  sales	
  promotions	
  and	
  public	
  relations.	
  We	
  won’t	
  be	
  doing	
  
any	
   out-­‐of-­‐home	
   or	
   television	
   commercials,	
   as	
   we	
   don’t	
   want	
   for	
   our	
   brand	
   to	
   be	
  
perceived	
  as	
  mainstream	
  but	
  to	
  keep	
  its	
  unique	
  niche	
  image.	
  
	
   	
  
  31	
  
III. IMC	
  development	
  
	
  
1. Objectives	
  and	
  scope	
  
	
  
	
  
a. Definition	
  of	
  the	
  integrated	
  marketing	
  and	
  analysis	
  of	
  the	
  marketing	
  
mix	
  tools	
  
	
  
The	
   American	
   Association	
   of	
   Advertising	
   Agencies	
   describes	
   integrated	
   marketing	
  
communications	
  as	
  “	
  a	
  concept	
  of	
  marketing	
  communications	
  planning	
  that	
  recognizes	
  
the	
  added	
  value	
  of	
  a	
  comprehensive	
  plan,	
  that	
  evaluates	
  the	
  strategic	
  roles	
  of	
  a	
  variety	
  of	
  
communication	
   disciplines,	
   eg.	
   General	
   advertising,	
   direct	
   response,	
   sales	
   promotion	
  
and	
   PR	
   –	
   and	
   combines	
   these	
   disciplines	
   to	
   provide	
   clarity,	
   consistency	
   while	
  
maximizing	
  communication	
  impact”.	
  	
  
	
  
In	
   other	
   words,	
   an	
   integrated	
   campaign	
   looks	
   for	
   the	
   reach	
   of	
   a	
   synergy	
   by	
   using	
  
different	
  marketing	
  tools	
  together,	
  instead	
  of	
  making	
  them	
  operate	
  separately	
  as	
  it	
  has	
  
been	
  traditionally	
  done.	
  	
  	
  
	
  
This	
  method	
  is	
  a	
  way	
  of	
  looking	
  at	
  distinct	
  parts	
  such	
  as	
  advertising,	
  public	
  relations,	
  
sales	
   promotion,	
   purchasing,	
   and	
   employee	
   communication	
   as	
   a	
   “flow	
   of	
   information	
  
from	
  indistinguishable	
  sources”	
  (De	
  Pelsmacker,	
  Geuens,	
  Van	
  Den	
  Bergh,	
  2013).	
  	
  	
  
	
  
In	
   order	
   to	
   understand	
   how	
   to	
   combine	
   marketing	
   mix	
   tools	
   together	
   to	
   create	
   an	
  
impactful	
   communication	
   we	
   first	
   need	
   to	
   have	
   a	
   look	
   at	
   each	
   of	
   these	
   tools.	
   The	
  
marketing	
  mix	
  is	
  formed	
  of	
  four	
  different	
  instruments:	
  the	
  product,	
  the	
  price,	
  the	
  place	
  
and	
  the	
  promotion.	
  Each	
  of	
  them	
  plays	
  a	
  specific	
  and	
  essential	
  role	
  when	
  determining	
  a	
  
brand’s	
  offer.	
  (BBC.co.uk,	
  2014)	
  
	
  
When	
  looking	
  at	
  the	
  product,	
  different	
  factors	
  have	
  to	
  be	
  taken	
  into	
  account:	
  its	
  benefits,	
  
features	
  and	
  options,	
  its	
  quality	
  design	
  and	
  branding,	
  the	
  packaging,	
  the	
  services	
  and	
  the	
  
  32	
  
warranties.	
  Each	
  of	
  these	
  factors	
  will	
  position	
  the	
  product.	
  We	
  will	
  be	
  able	
  to	
  determine	
  
if	
  it	
  is	
  a	
  luxury	
  product,	
  a	
  medium-­‐range	
  one	
  or	
  if	
  it	
  has	
  been	
  made	
  for	
  the	
  mass	
  market.	
  
According	
   to	
   that,	
   the	
   price	
   will	
   be	
   higher	
   or	
   lower	
   and	
   the	
   place	
   where	
   it	
   will	
   be	
  
displayed	
  will	
  be	
  adapted,	
  as	
  well	
  as	
  the	
  promotion.	
  	
  
	
  
• The	
   pricing	
   plays	
   a	
   crucial	
   role	
   in	
   the	
   marketing	
   mix:	
   it	
   can	
   be	
   used	
   as	
   an	
  
incentive	
  for	
  the	
  consumer.	
  Discounts	
  are	
  often	
  a	
  way	
  to	
  attract	
  customers	
  and	
  
convince	
  them	
  to	
  buy	
  a	
  particular	
  product.	
  	
  
	
  
• The	
   place	
   where	
   the	
   product	
   is	
   displayed	
   will	
   make	
   it	
   look	
   more	
   or	
   less	
  
attractive.	
  When	
  defining	
  the	
  place	
  of	
  the	
  product	
  the	
  brand	
  needs	
  to	
  arrange	
  all	
  
of	
  the	
  channels	
  and	
  logistics,	
  make	
  the	
  inventory,	
  arrange	
  the	
  transport	
  and	
  the	
  
locations.	
  	
  
	
  
• Eventually,	
  the	
  promotion	
  is	
  the	
  element	
  we	
  are	
  going	
  to	
  be	
  focusing	
  on	
  during	
  
this	
  integrated	
  campaign.	
  Promotion	
  takes	
  various	
  forms:	
  the	
  most	
  popular	
  one	
  
is	
  advertising	
  but	
  it	
  can	
  also	
  be	
  public	
  relations,	
  sponsorship,	
  brand	
  activation,	
  
direct	
   marketing,	
   point	
   of	
   purchase	
   promotion,	
   exhibitions	
   and	
   trade	
   fairs,	
  
personal	
   selling	
   or	
   electronic	
   communication.	
   Each	
   of	
   them	
   has	
   a	
   specific	
  
purpose	
  but	
  they	
  have	
  one	
  common	
  goal:	
  attracting	
  attention	
  on	
  the	
  product	
  in	
  
order	
  to	
  sell	
  it.	
  	
  
	
  
Each	
  brand	
  chooses	
  a	
  specific	
  combination	
  of	
  the	
  four	
  elements	
  of	
  the	
  marketing	
  mix,	
  
adapted	
  to	
  the	
  image	
  of	
  the	
  brand	
  and	
  to	
  the	
  audience	
  targeted.	
  For	
  instance,	
  Haagen-­‐
Dazs	
  sells	
  premium	
  Ice	
  Cream	
  at	
  a	
  rather	
  high	
  price	
  comparing	
  to	
  its	
  competitors,	
  as	
  a	
  
sign	
  of	
  high	
  quality.	
  The	
  distribution	
  is	
  exclusive	
  and	
  the	
  communication	
  strategy	
  of	
  the	
  
brand	
   indicates	
   a	
   sophisticated	
   style	
   associated	
   with	
   a	
   particular	
   positioning.	
   (De	
  
Pelsmacker,	
  Geuens,	
  Van	
  Den	
  Bergh,	
  2013)	
  
	
  
Therefore,	
   when	
   planning	
   an	
   integrated	
   marketing	
   communications	
   campaign	
   it	
   is	
  
essential	
  to	
  determine	
  a	
  specific	
  message	
  proper	
  to	
  the	
  character	
  of	
  the	
  brand.	
  	
  
	
  
	
  
  33	
  
b. Objectives	
  and	
  strategy	
  
	
  
In	
  this	
  campaign	
  we	
  are	
  going	
  to	
  choose	
  particular	
  integrated	
  communications	
  for	
  the	
  
British	
  perfume	
  house,	
  Penhaligon’s.	
  It	
  is	
  a	
  luxury	
  brand	
  with	
  wide	
  tradition	
  targeting	
  at	
  
rather	
  affluent	
  men	
  and	
  women,	
  willing	
  to	
  spend	
  some	
  money	
  for	
  an	
  exclusive	
  fragrance	
  
that	
  will	
  make	
  them	
  feel	
  special.	
  	
  
	
  
So	
  far	
  Penhaligon’s	
  has	
  been	
  doing	
  various	
  communications	
  and	
  marketing	
  actions	
  but	
  
they	
  were	
  never	
  integrated.	
  Last	
  year	
  the	
  brand	
  was	
  the	
  official	
  sponsor	
  of	
  “Movember”	
  
and	
   had	
   created	
   a	
   pop-­‐up	
   barbershop	
   in	
   London’s	
   Covent	
   Garden	
   in	
   order	
   to	
   build	
  
awareness	
  for	
  men’s	
  health.	
  The	
  action	
  included	
  a	
  moustache	
  competition	
  where	
  fans	
  
where	
  encouraged	
  to	
  submit	
  before	
  and	
  after	
  Movember,	
  as	
  well	
  as	
  “work	
  in	
  progress”	
  
pictures	
   of	
   them	
   into	
   Facebook.	
   The	
   first	
   prize	
   winner	
   was	
   rewarded	
   with	
   a	
   year’s	
  
supply	
  of	
  Penhaligon’s	
  perfumes	
  (Luxurydaily,	
  2014).	
  	
  
	
  
The	
  brand	
  has	
  also	
  been	
  in	
  a	
  special	
  partnership	
  with	
  the	
  English	
  National	
  Ballet	
  that	
  
inspired	
   it	
   with	
   creating	
   the	
   Iris	
   Prima	
   fragrance,	
   capturing	
   the	
   essence	
   of	
   the	
   ballet	
  
(Packaging	
  of	
  the	
  world,	
  2013).	
  
	
  
Another	
   marketing	
   action	
   Penhaligon’s	
   has	
   succeeded	
   with	
   was	
   a	
   press	
   event,	
   which	
  
consisted	
  of	
  launching	
  five	
  taxis,	
  entirely	
  branded	
  and	
  perfumed	
  with	
  the	
  brand’s	
  latest	
  
fragrances,	
  in	
  Central	
  London.	
  The	
  drivers	
  were	
  trained	
  on	
  Penhaligon’s	
  history	
  and	
  the	
  
cab’s	
  passengers	
  received	
  a	
  10%	
  discount	
  voucher	
  on	
  Penhaligon’s	
  products,	
  in	
  store	
  
and	
  online.	
  (Mimifoufrou,	
  2010)	
  
	
  
These	
  are	
  three	
  examples	
  of	
  the	
  marketing	
  tactics	
  Penhaligon’s	
  has	
  been	
  using	
  over	
  the	
  
years.	
  Most	
  of	
  them	
  were	
  successful	
  but	
  an	
  integrated	
  campaign	
  has	
  never	
  been	
  done	
  
until	
  today.	
  For	
  this	
  reason,	
  it	
  seemed	
  that	
  a	
  good	
  way	
  for	
  the	
  brand	
  to	
  raise	
  awareness	
  
and	
  attract	
  new	
  customers	
  would	
  be	
  to	
  create	
  an	
  integrated	
  marketing	
  campaign.	
  	
  	
  
	
  
In	
  order	
  to	
  prepare	
  the	
  strategy	
  for	
  our	
  integrated	
  campaign	
  it	
  is	
  crucial	
  to	
  determine	
  
smart	
   goals	
   (specific,	
   measurable,	
   achievable,	
   realistic	
   and	
   timely)	
   and	
   precise	
  
objectives.	
  
  34	
  
These	
   objectives	
   have	
   already	
   been	
   set	
   up	
   in	
   the	
   first	
   part	
   of	
   the	
   project	
   (i.e.	
   the	
  
proposal),	
  but	
  we	
  are	
  going	
  to	
  remind	
  them	
  briefly.	
  	
  
	
  
The	
  main	
  purpose	
  of	
  our	
  integrated	
  marketing	
  communications	
  campaign	
  is	
  to	
  become	
  
the	
   brand	
   of	
   reference	
   for	
   luxury	
   perfumes	
   via	
   content	
   engagement	
   and	
   trial.	
   As	
   we	
  
were	
  saying	
  previously,	
  the	
  last	
  results	
  for	
  the	
  UK	
  we	
  have	
  access	
  to	
  are	
  from	
  2013	
  and	
  
show	
  a	
  turnover	
  of	
  £12.6	
  million	
  and	
  a	
  profit	
  before	
  tax	
  of	
  approximately	
  £	
  1	
  million	
  
(Fame,	
   2015).	
   	
   These	
   results	
   seem	
   to	
   be	
   positive	
   for	
   such	
   a	
   niche	
   brand.	
   Because	
   it	
  
seems	
  that	
  their	
  strategy	
  has	
  been	
  paying	
  off	
  up	
  to	
  this	
  point,	
  we	
  will	
  not	
  be	
  changing	
  
their	
  positioning	
  too	
  much	
  but	
  will	
  help	
  them	
  retain	
  customers	
  and	
  acquire	
  new	
  ones	
  by	
  
adding	
  the	
  brand	
  a	
  fresher	
  and	
  younger	
  look.	
  	
  
	
  
The	
  marketing	
  actions	
  they	
  have	
  been	
  doing	
  so	
  far	
  encouraged	
  word	
  of	
  mouth	
  and	
  had	
  a	
  
positive	
   PR	
   return.	
   Because	
   we	
   want	
   Penhaligon’s	
   to	
   keep	
   its	
   unique	
   image	
   we	
   will	
  
centre	
  our	
  campaign	
  on	
  the	
  exclusivity	
  and	
  the	
  eccentricity	
  of	
  the	
  brand.	
  This	
  will	
  add	
  a	
  
“cool”	
  touch	
  to	
  its	
  image	
  but	
  will	
  not	
  push	
  back	
  the	
  older	
  target	
  audience.	
  
	
  
Our	
  campaign’s	
  business	
  objective	
  is	
  thus	
  to	
  achieve	
  a	
  turnover	
  of	
  £15	
  million	
  by	
  the	
  
end	
  of	
  2016.	
  
	
  
c. Target	
  audience	
  definition	
  
	
  
Our	
  marketing	
  objective	
  is	
  to	
  increase	
  trial	
  among	
  the	
  24-­‐35	
  years	
  old,	
  men	
  and	
  women,	
  
ABC1	
  social	
  class,	
  as	
  well	
  as	
  to	
  raise	
  brand	
  awareness	
  by	
  20%	
  by	
  the	
  end	
  of	
  2016.	
  
	
  
Our	
  integrated	
  marketing	
  communications	
  objective	
  is	
  to	
  reinforce	
  the	
  brand	
  image	
  by	
  
acquiring	
  20.000	
  new	
  customers	
  and	
  retaining	
  80.000	
  of	
  our	
  current	
  clients.	
  
	
  
The	
  strategy	
  we	
  are	
  going	
  to	
  use	
  is	
  content	
  engagement	
  in	
  order	
  to	
  become	
  a	
  brand	
  of	
  
reference	
  and	
  trial	
  incentives	
  via	
  call	
  to	
  action.	
  
	
  
We	
  will	
  be	
  more	
  active	
  on	
  social	
  media,	
  posting	
  regularly	
  fashion	
  trends	
  of	
  the	
  season	
  
that	
  would	
  go	
  with	
  particular	
  Penhaligon’s	
  fragrances.	
  To	
  increase	
  the	
  interaction	
  with	
  
  35	
  
the	
   customers	
   we	
   would	
   create	
   a	
   social	
   media	
   contest	
   rewarded	
   with	
   Penhaligon’s	
  
products.	
  Indeed,	
  social	
  media	
  have	
  become	
  very	
  popular	
  and	
  are	
  a	
  good	
  way	
  to	
  build	
  a	
  
brand-­‐customer	
   relationship	
   -­‐	
   11%	
   of	
   the	
   world	
   population	
   has	
   a	
   Facebook	
   account	
  
(The	
  social	
  skinny,	
  2012).	
  	
  Social	
  media	
  and	
  digital	
  marketing	
  are	
  a	
  good	
  way	
  to	
  reach	
  
out	
  to	
  “young”	
  target	
  group	
  (24-­‐35	
  years	
  old),	
  as	
  they	
  are	
  the	
  generation	
  that	
  spends	
  
most	
  of	
  their	
  time	
  connected	
  to	
  the	
  Internet,	
  often	
  with	
  their	
  computer	
  but	
  usually	
  with	
  
their	
  smartphone.	
  	
  
	
  
As	
  previously	
  stated,	
  the	
  goal	
  of	
  our	
  campaign	
  is	
  to	
  acquire	
  20.000	
  new	
  customers	
  while	
  
retaining	
  80.000	
  current	
  ones.	
  	
  
	
   	
  
In	
  order	
  to	
  prepare	
  for	
  a	
  successful	
  integrated	
  campaign	
  several	
  crucial	
  steps	
  have	
  to	
  be	
  
taken	
  into	
  account.	
  The	
  first	
  and	
  probably	
  the	
  most	
  important	
  one	
  is	
  to	
  fully	
  understand	
  
the	
  target	
  audience.	
  The	
  second	
  one	
  is	
  to	
  choose	
  the	
  marketing	
  channels	
  adapted	
  to	
  this	
  
audience	
  in	
  order	
  for	
  the	
  campaign	
  to	
  be	
  impactful.	
  The	
  third	
  step	
  is	
  to	
  create	
  a	
  clear	
  and	
  
stable	
  content	
  with	
  an	
  explicit	
  message.	
  
	
  
We	
  will	
  start	
  here	
  with	
  the	
  first	
  step	
  and	
  determine	
  carefully	
  our	
  target	
  group.	
  	
  
	
  
As	
  yet,	
  if	
  we	
  have	
  a	
  look	
  at	
  the	
  people	
  that	
  use	
  Penhaligon’s	
  perfumes	
  we	
  will	
  have	
  a	
  
masculine	
   audience,	
   aged	
   between	
   40	
   and	
   59	
   years	
   old,	
   from	
   the	
   ABC1	
   social	
   grade.	
  
Their	
  place	
  of	
  living	
  is	
  most	
  probably	
  London	
  or	
  another	
  large	
  British	
  city,	
  they	
  will	
  be	
  
on	
  the	
  right	
  wing	
  in	
  politics,	
  and	
  they	
  will	
  have	
  a	
  monthly	
  spare	
  of	
  £1000	
  pounds	
  or	
  
more	
  (YouGov	
  Profiler,	
  2015).	
  	
  
	
  
This	
  is	
  how	
  a	
  typical	
  Penhaligon’s	
  customer	
  would	
  look.	
  As	
  we	
  do	
  not	
  want	
  to	
  reposition	
  
the	
  brand	
  too	
  much	
  we	
  will	
  do	
  some	
  customer	
  retention	
  among	
  35-­‐54	
  years	
  old	
  men	
  
and	
  women.	
  In	
  order	
  to	
  make	
  this	
  retention	
  coherent,	
  we	
  need	
  to	
  determine	
  how	
  these	
  
customers	
  will	
  look	
  like	
  by	
  choosing	
  a	
  ‘typical	
  profile”	
  from	
  this	
  target	
  group.	
  
	
  
• Mary	
  is	
  37	
  years	
  old	
  and	
  belongs	
  to	
  the	
  ABC1	
  social	
  class.	
  She	
  is	
  well-­‐educated	
  
and	
  interested	
  in	
  fashion.	
  She	
  works	
  as	
  a	
  project	
  manager	
  in	
  a	
  communication	
  
company.	
  She	
  lives	
  in	
  South	
  Kensington	
  with	
  her	
  husband	
  and	
  two	
  children.	
  She	
  
  36	
  
buys	
  perfumes	
  at	
  Penhaligon’s	
  because	
  she	
  wants	
  to	
  feel	
  pretty	
  and	
  special	
  at	
  any	
  
time	
  of	
  the	
  day.	
  She	
  feels	
  that	
  Penhaligon’s	
  gives	
  her	
  the	
  touch	
  of	
  elegance	
  and	
  
distinction	
  she	
  needs	
  with	
  her	
  sophisticated	
  outfit.	
  She	
  enjoys	
  high-­‐end	
  clothing	
  
and	
  appreciates	
  an	
  occasional	
  shopping	
  tour	
  in	
  luxury	
  boutiques.	
  She	
  is	
  not	
  an	
  
easy	
  brand	
  switcher	
  and	
  looks	
  for	
  a	
  brand	
  she	
  will	
  fall	
  in	
  love	
  with	
  and	
  trust.	
  	
  
	
  
• Henry	
   is	
   52	
   years,	
   belongs	
   to	
   the	
   ABC1	
   social	
   class	
   and	
   lives	
   in	
   Chelsea.	
   He	
   is	
  
married	
   with	
   children.	
   He	
   is	
   rather	
   conservative.	
   He	
   wants	
   to	
   look	
   good	
   and	
  
serious	
   but	
   trusts	
   his	
   wife	
   with	
   his	
   clothes	
   and	
   perfumes.	
   He	
   chooses	
  
Penhaligon’s	
   because	
   he	
   trusts	
   the	
   authenticity	
   of	
   the	
   brand	
   as	
   well	
   as	
   its	
  
“Britishness”.	
  He	
  enjoys	
  Penhaligon’s	
  perfumes	
  because	
  they	
  make	
  him	
  feel	
  truly	
  
British	
   and	
   add	
   a	
   grain	
   of	
   eccentricity	
   to	
   his	
   smart	
   outfit.	
   He	
   is	
   quite	
   an	
   easy	
  
brand	
   switcher	
   and	
   listens	
   to	
   his	
   friends	
   and	
   family	
   advices	
   when	
   it	
   comes	
   to	
  
aesthetics.	
  	
  
	
  
These	
   are	
   two	
   typical	
   profiles	
   of	
   the	
   customers	
   for	
   retention.	
   Now	
   let’s	
   establish	
   the	
  
characteristics	
  of	
  the	
  ones	
  we	
  will	
  acquire.	
  
	
  
24	
  to	
  35	
  years	
  old	
  people	
  represent	
  a	
  good	
  opportunity	
  for	
  the	
  fragrance	
  industry,	
  as	
  
they	
  are	
  the	
  ones	
  that	
  use	
  perfumes	
  a	
  lot.	
  Thus,	
  for	
  the	
  acquisition,	
  we	
  will	
  target	
  24-­‐35	
  
years	
  old	
  men	
  and	
  women,	
  ABC1	
  social	
  class.	
  
	
  
• Julia	
  is	
  29	
  years	
  old	
  and	
  belongs	
  to	
  the	
  ABC1	
  social	
  class.	
  	
  She	
  enjoys	
  wearing	
  
elegant	
  outfits	
  but	
  she	
  also	
  likes	
  to	
  dress	
  eccentric	
  from	
  time	
  to	
  time.	
  She	
  lives	
  in	
  
Newcastle	
  and	
  thinks	
  of	
  starting	
  a	
  family.	
  She	
  likes	
  Penhaligon’s	
  because	
  using	
  
these	
  perfumes	
  makes	
  her	
  feel	
  original	
  and	
  thus	
  more	
  self-­‐confident.	
  	
  
	
  
• Anthony	
   is	
   24	
   years	
   old	
   and	
   belongs	
   to	
   the	
   same	
   social	
   class	
   as	
   Julia.	
   He	
   is	
   a	
  
classic	
  “hipster”.	
  He	
  likes	
  wearing	
  clothes	
  from	
  unknown	
  shops	
  and	
  listening	
  to	
  
the	
  music	
  on	
  a	
  vinyl	
  record	
  player.	
  He	
  chooses	
  Penhaligon’s	
  perfumes	
  because	
  he	
  
feels	
  it	
  is	
  a	
  unique	
  brand	
  that	
  sells	
  more	
  than	
  only	
  a	
  bottle	
  of	
  fragrance.	
  He	
  enjoys	
  
the	
  authentic	
  and	
  eccentric	
  aspect	
  of	
  the	
  bottle	
  and	
  the	
  originality	
  of	
  the	
  smell.	
  He	
  
  37	
  
is	
  willing	
  to	
  spend	
  some	
  money	
  on	
  a	
  perfume	
  as	
  long	
  as	
  it	
  has	
  something	
  special.	
  
He	
  lives	
  in	
  London	
  and	
  works	
  as	
  a	
  fashion	
  photograph.	
  
	
  
In	
  order	
  for	
  us	
  to	
  fully	
  understand	
  the	
  consumer	
  behaviour	
  and	
  their	
  decision	
  path	
  we	
  
will	
   be	
   using	
   the	
   means-­‐end-­‐chain	
   model.	
   This	
   model	
   makes	
   a	
   deep	
   analysis	
   of	
   a	
  
consumer’s	
  particular	
  behaviour	
  such	
  as	
  “why	
  would	
  a	
  soccer	
  mom	
  drive	
  an	
  SUV	
  instead	
  
of	
  a	
  mini-­‐van”	
  (Rock	
  research,	
  2013).	
  The	
  chain	
  has	
  different	
  steps.	
  The	
  first	
  one	
  is	
  the	
  
attribute	
  of	
  the	
  product,	
  one	
  is	
  concrete,	
  and	
  the	
  other	
  one	
  is	
  abstract.	
  The	
  second	
  step	
  is	
  
the	
   consequence,	
   functional	
   and	
   psychosocial.	
   The	
   last	
   one	
   is	
   the	
   value;	
   instrumental	
  
and	
  terminal.	
  	
  
	
  
	
  
	
  
	
  
• The	
  concrete	
  attribute	
  of	
  a	
  bottle	
  of	
  Penhaligon’s	
  perfumes	
  is	
  the	
  fact	
  that	
  it	
  is	
  
made	
  in	
  glass	
  and	
  round-­‐shaped.	
  The	
  cap	
  is	
  ball	
  shaped	
  and	
  made	
  in	
  plastic,	
  often	
  
decorated	
  with	
  a	
  bow	
  tie.	
  	
  
• The	
  abstract	
  attribute	
  is	
  that	
  the	
  fragrance	
  has	
  a	
  strong	
  and	
  unique	
  smell.	
  	
  
• The	
  functional	
  benefit	
  of	
  the	
  product	
  is	
  that	
  it	
  makes	
  you	
  smell	
  good	
  and	
  wear	
  a	
  
unique	
  fragrance	
  only	
  a	
  few	
  people	
  know	
  about.	
  	
  
• The	
  psychosocial	
  benefit	
  of	
  using	
  a	
  Penhaligon’s	
  perfume	
  is	
  for	
  the	
  person	
  using	
  
it	
  to	
  feel	
  special	
  and	
  a	
  little	
  bit	
  eccentric.	
  	
  
• The	
  instrumental	
  value	
  is	
  avoiding	
  to	
  wear	
  the	
  same	
  perfume	
  as	
  everyone	
  else	
  
and	
  	
  
• The	
  terminal	
  one	
  is	
  simply	
  to	
  feel	
  more	
  confident	
  about	
  him/her	
  self.	
  
	
  
This	
   model	
   explains	
   in	
   a	
   clear	
   way	
   what	
   arguments	
   are	
   taken	
   into	
   account	
   while	
  
choosing	
  a	
  fragrance	
  and	
  what	
  are	
  the	
  attributes	
  the	
  person	
  buying	
  a	
  particular	
  brand	
  is	
  
  38	
  
seeking	
   for.	
   It	
   helps	
   us	
   understand	
   the	
   exact	
   perception	
   of	
   the	
   consumer	
   about	
   the	
  
brand	
  but	
  also	
  how	
  relevant	
  the	
  choice	
  of	
  the	
  product	
  and	
  the	
  brand	
  can	
  be.	
  Eventually,	
  
such	
  an	
  analysis	
  leads	
  us	
  to	
  a	
  deep	
  understanding	
  of	
  the	
  consumer	
  values.	
  	
  
	
  
Thanks	
  to	
  this	
  knowledge,	
  we	
  can	
  now	
  be	
  able	
  to	
  determine	
  the	
  level	
  of	
  involvement	
  of	
  
the	
   consumer	
   when	
   choosing	
   the	
   product.	
   If	
   the	
   involvement	
   is	
   high,	
   the	
   product	
  
attributes	
  are	
  directly	
  related	
  to	
  the	
  personal	
  goals	
  and	
  values	
  of	
  the	
  consumer.	
  If	
  it	
  is	
  a	
  
medium	
  involvement,	
  the	
  attributes	
  are	
  marginally	
  linked	
  to	
  personal	
  values.	
  After	
  all,	
  if	
  
the	
  involvement	
  is	
  low,	
  the	
  attributes	
  of	
  the	
  product	
  are	
  only	
  linked	
  to	
  the	
  functional	
  
consequences	
  of	
  its	
  usage.	
  	
  
	
  
In	
   this	
   case,	
   because	
   Penhaligon’s	
   perfumes	
   are	
   specific	
   and	
   because	
   all	
   of	
   their	
  
attributes	
   are	
   carefully	
   chosen	
   in	
   order	
   to	
   make	
   each	
   of	
   them	
   truly	
   unique,	
   it	
   would	
  
seem	
  that	
  a	
  consumer	
  choosing	
  to	
  buy	
  them	
  would	
  most	
  probably	
  be	
  highly	
  involved	
  in	
  
the	
  purchase	
  process.	
  
	
  
In	
   the	
   end,	
   this	
   is	
   to	
   help	
   us	
   understand	
   the	
   reasons	
   that	
   motivate	
   the	
   consumer	
   for	
  
purchasing	
   and	
   breaking	
   down	
   the	
   consumer/product	
   relationship.	
   Such	
   an	
  
understanding	
  is	
  crucial	
  for	
  the	
  marketing	
  implications	
  of	
  the	
  brand	
  because	
  it	
  helps	
  us	
  
define	
  the	
  category	
  of	
  the	
  brand	
  user.	
  	
  
	
  
There	
  are	
  four	
  types	
  of	
  brand	
  users:	
  	
  
• The	
  brand	
  loyalists,	
  which	
  are	
  strongly	
  attached	
  to	
  a	
  particular	
  brand	
  and	
  will	
  be	
  
reluctant	
  to	
  change	
  
• The	
  routine	
  brand	
  buyers,	
  who	
  choose	
  to	
  buy	
  regularly	
  from	
  a	
  specific	
  company	
  
because	
  it	
  is	
  convenient	
  but	
  with	
  low	
  self-­‐	
  relevance	
  
• The	
  information	
  seekers,	
  that	
  analyse	
  the	
  brand	
  and	
  the	
  product,	
  know	
  about	
  the	
  
category	
  but	
  do	
  not	
  have	
  any	
  particular	
  preference	
  	
  
• The	
   brand	
   switchers	
   that	
   choose	
   to	
   buy	
   a	
   product	
   according	
   to	
   its	
   price,	
  
availability	
  or	
  special	
  offer.	
  (Chackaprani,	
  1999).	
  
	
  
By	
   doing	
   retention,	
   we	
   are	
   aiming	
   at	
   keeping	
   our	
   loyal	
   customers	
   and	
   making	
   them	
  
become	
  brand	
  loyalists	
  –	
  as	
  well	
  as	
  brand	
  ambassadors.	
  	
  
  39	
  
	
  
For	
  the	
  acquisition,	
  we	
  are	
  going	
  to	
  look	
  for	
  brand	
  switchers,	
  which	
  do	
  not	
  have	
  their	
  
favourite	
  perfume	
  brand	
  yet,	
  in	
  order	
  to	
  convince	
  them	
  to	
  become	
  brand	
  adopters	
  at	
  
first	
  and	
  then	
  brand	
  loyalists.	
  
	
  
The	
  whole	
  purpose	
  of	
  our	
  campaign	
  is	
  to	
  encourage	
  trial	
  among	
  24	
  to	
  35	
  years	
  old	
  and	
  
to	
  convince	
  our	
  older	
  audience	
  to	
  choose	
  Penhaligon’s	
  definitely.	
  	
  
	
  
The	
   next	
   step	
   is	
   choosing	
   the	
   adapted	
   communication	
   tools	
   to	
   attract	
   our	
   target	
  
audience.	
  	
  
	
   	
  
  40	
  
2. Communication	
  and	
  campaign	
  strategy	
  
	
  
	
  
In	
  order	
  to	
  establish	
  an	
  integrated	
  marketing	
  campaign,	
  it	
  is	
  necessary	
  to	
  choose	
  among	
  
different	
  communication	
  tools	
  those,	
  that	
  are	
  going	
  to	
  be	
  the	
  most	
  appropriate	
  when	
  
addressing	
  the	
  targeted	
  audience,	
  in	
  order	
  to	
  outline	
  the	
  positioning	
  of	
  the	
  product	
  and	
  
the	
  message	
  communicated	
  by	
  the	
  campaign.	
  
	
  
Successful	
  brands	
  use	
  a	
  variety	
  of	
  promotional	
  tools	
  to	
  position	
  their	
  value	
  proposals	
  
and	
   products	
   in	
   consumers’	
   minds.	
   By	
   using	
   these	
   tools,	
   they	
   manage	
   to	
   connect	
  
consumers’	
  values’	
  with	
  those	
  communicated	
  by	
  the	
  company.	
  	
  
	
  
The	
  popular	
  saying	
  stating,	
  “a	
  good	
  product	
  sells	
  itself”	
  is	
  only	
  true	
  when	
  an	
  efficient	
  
marketing	
  campaign	
  and	
  a	
  clear	
  positioning	
  statement	
  support	
  this	
  product.	
  	
  This	
  is	
  how	
  
people	
  link	
  brands	
  to	
  values,	
  choosing	
  the	
  ones	
  they	
  feel	
  close	
  to.	
  	
  
Eg.	
  Benetton	
  achieved	
  a	
  high	
  visibility	
  by	
  showing	
  advertisements	
  related	
  to	
  diversity.	
  
(Gbadamosi,	
  Nwakwo,	
  Bathgate,	
  2013).	
  
	
  
The	
  ideal	
  way	
  to	
  make	
  a	
  campaign	
  work	
  is	
  to	
  combine	
  several	
  communication	
  tools	
  that,	
  
when	
  activated	
  together,	
  deliver	
  a	
  coherent	
  message.	
  
	
  
a. Analysis	
  of	
  the	
  marketing	
  channels	
  
	
  
Advertising	
  is	
  composed	
  of	
  impersonal	
  messages	
  communicated	
  to	
  inform,	
  persuade	
  or	
  
remind	
   consumers	
   about	
   products	
   and	
   services.	
   The	
   company	
   initiating	
   the	
  
advertisement	
  is	
  in	
  charge	
  of	
  paying	
  for	
  it.	
  	
  
	
  
There	
  are	
  several	
  types	
  of	
  advertising.	
  	
  
	
  
The	
   most	
   common	
   ones	
   are	
   traditional	
   advertising	
   delivered	
   through	
   television,	
  
magazines,	
  newspapers,	
  posters,	
  radio,	
  billboards,	
  cinema,	
  vehicles	
  and	
  transit	
  boards.	
  
	
  
  41	
  
Traditional	
  advertising	
  communication	
  channels	
  have	
  the	
  main	
  advantage	
  of	
  allowing	
  
companies	
  to	
  choose	
  a	
  specific	
  method	
  adapted	
  to	
  their	
  target	
  group	
  and	
  budget.	
  But	
  
with	
  the	
  expansion	
  of	
  new	
  media	
  advertising	
  opportunities	
  are	
  born,	
  for	
  a	
  lower	
  cost.	
  	
  
	
  
In	
  point	
  of	
  fact,	
  traditional	
  advertising	
  does	
  not	
  enable	
  a	
  direct	
  response	
  and	
  it	
  is	
  much	
  
harder	
  to	
  evaluate	
  its	
  efficiency.	
  Indeed,	
  if	
  print	
  and	
  broadcast	
  outlets	
  enable	
  media	
  kits	
  
with	
  audience	
  demographics,	
  it	
  is	
  actually	
  really	
  hard	
  to	
  actually	
  know	
  who	
  saw,	
  read	
  or	
  
viewed	
  the	
  ad,	
  once	
  it	
  is	
  displayed.	
  (Ashe-­‐Edmunds,	
  S.,	
  2015)	
  
	
  
Another	
   disadvantage	
   of	
   traditional	
   advertising	
   is	
   the	
   fact	
   that	
   even	
   if	
   print	
   and	
  
broadcast	
   outlets	
   enable	
   media	
   kits	
   with	
   audience	
   demographics,	
   it	
   is	
   actually	
   really	
  
hard	
   to	
   actually	
   know	
   who	
   saw,	
   read	
   or	
   viewed	
   the	
   ad,	
   once	
   it	
   is	
   displayed.	
   (Ashe-­‐
Edmunds,	
  S.,	
  2015)	
  
	
  
As	
  we	
  were	
  saying	
  above,	
  with	
  the	
  expansion	
  of	
  the	
  Internet	
  and	
  therefore	
  mobile	
  and	
  
online	
   media,	
   brands	
   are	
   now	
   able	
   to	
   use	
   new	
   methods	
   of	
   communication.	
   Website	
  
banners,	
   pop-­‐ups,	
   viral	
   videos	
   on	
   social	
   media,	
   fan	
   pages	
   etc.	
   are	
   only	
   some	
   of	
   the	
  
infinite	
   options	
   a	
   company	
   can	
   chose	
   from	
   for	
   activating	
   on-­‐	
   line	
   advertising.	
  
Furthermore,	
   thanks	
   to	
   geo-­‐localization	
   and	
   online	
   behavioural	
   information	
   gathered	
  
while	
   consumers	
   surf	
   on	
   the	
   Internet,	
   brands	
   are	
   more	
   and	
   more	
   able	
   to	
   deliver	
   an	
  
efficient	
  advertisement,	
  tailored	
  precisely	
  for	
  the	
  target	
  market	
  it	
  does	
  address.	
  Thanks	
  
to	
   thorough	
   analysis	
   of	
   the	
   online	
   behaviour	
   of	
   its	
   audience,	
   the	
   company	
   is	
   able	
   to	
  
position	
  ads	
  on	
  such	
  websites	
  where	
  it	
  meets	
  its	
  target	
  market	
  with	
  quasi-­‐certainty.	
  This	
  
is	
  a	
  wholly	
  new	
  definition	
  of	
  advertising.	
  (Gbadamosi,	
  Nwakwo,	
  Bathgate,	
  2013).	
  
	
  
Nevertheless,	
   Online	
   banners	
   are	
   available	
   for	
   anyone	
   to	
   copy,	
   regardless	
   the	
   legal	
  
regulations	
  and	
  can	
  be	
  easily	
  used	
  for	
  commercial	
  purposes	
  that	
  can	
  damage	
  the	
  brand.	
  
Another	
  negative	
  side	
  of	
  online	
  advertising	
  is	
  the	
  fact	
  that	
  it	
  has	
  become	
  so	
  popular	
  that	
  
people	
  have	
  started	
  to	
  ignore	
  or	
  consider	
  as	
  spam.	
  
	
  
These	
  factors	
  taken	
  into	
  consideration,	
  when	
  doing	
  online	
  advertising	
  we	
  must	
  ensure	
  
that	
  it	
  does	
  not	
  appear	
  too	
  frequently,	
  that	
  it	
  looks	
  attractive	
  and	
  compelling	
  and	
  that	
  it	
  
is	
  published	
  on	
  websites	
  visited	
  by	
  our	
  target	
  market.	
  
  42	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
This	
  analysis	
  shows	
  that	
  54%	
  of	
  the	
  UK	
  respondents	
  do	
  online	
  research	
  before	
  buying	
  
their	
  product.	
  (Dauriz,	
  L.,	
  Remy,	
  N.	
  and	
  Sandri,	
  N.,	
  2014).	
  
As	
  Penhaligon’s	
  is	
  a	
  luxury	
  brand	
  we	
  need	
  to	
  ensure	
  positive	
  online	
  content,	
  on	
  their	
  
website,	
  social	
  media	
  and	
  via	
  online	
  banners	
  –	
  as	
  an	
  important	
  part	
  of	
  our	
  customers	
  
will	
  do	
  online	
  research	
  about	
  our	
  brand	
  before	
  going	
  into	
  the	
  store.	
  	
  
	
  
Sales	
  promotions	
  are	
  actions	
  and	
  activities	
  set-­‐up	
  by	
  a	
  particular	
  brand	
  to	
  boost	
  sales	
  
of	
  its	
  product.	
  There	
  are	
  two	
  types	
  of	
  sales	
  promotions:	
  trade	
  and	
  consumer.	
  The	
  trade	
  
sales	
  promotions	
  can	
  be	
  discounts,	
  freebies,	
  commissions	
  or	
  any	
  types	
  of	
  incentives	
  that	
  
are	
   going	
   to	
   convince	
   a	
   retailer	
   or	
   a	
   distributor	
   to	
   stock	
   more	
   and	
   push	
   more	
   of	
   a	
  
particular	
  product,	
  and	
  thus	
  increase	
  sales	
  volumes.	
  This	
  technique	
  ensures	
  that	
  stock-­‐
outs	
  are	
  reduced	
  and	
  share	
  of	
  shelf	
  space	
  is	
  increased,	
  which	
  as	
  a	
  consequence	
  makes	
  
the	
  product	
  more	
  visible	
  and	
  thus	
  increases	
  the	
  chances	
  for	
  a	
  consumer	
  to	
  be	
  interested	
  
in	
  purchasing	
  it.	
  	
  
	
  
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IMC FINAL

  • 1.                         Integrated  Marketing  Communications   Campaign  Project   University  of  Westminster  2014  –  2015   Helene  Hildebrandt  (W1500584)        
  • 2.   2     Table  of  content         I. Executive  summary     II. IMC  Proposal     1. Market  and  industry  parameter  (p.5)           a. Overview  of  the  market  and  market  dynamics  (p.5)   b. PEST  analysis  (p.7)   c. Opportunities  and  threats  (p.8)     2. Competitor  evaluation  (p.10)                     a. Crabtree  and  Evelyn  (p.11)   b. Jo  Malone  (p.13)   c. Creed  (p.15)   d. Floris  (p.17)   e. Positioning  map  (p.18)   f. Penhaligon’s  strengths  and  weaknesses  (p.19)     3. Overview  of  the  brand  (p.20)                                                                 a. Keller’s  brand  equity  model  (p.22)     4. Clarification  of  the  strategic  marketing  opportunity  to  be  developed  for  the  brand   (p.26)                                                               a. Ansoff  Matrix  (p.26)     5. Quantified   marketing   objectives,   implications   for   the   IMC   and   financial   situation   (p.28)     6. Summary  –  outlining  the  proposal  for  marketing  communications  (p.30)        
  • 3.   3   III. IMC  development     1. Objectives  and  scopes  (p.31)     a. Definition  of  the  integrated  marketing  and  analysis  of  the  marketing  mix  tools   (p.31)   b. Objectives  and  strategy  (p.33)   c. Target  audience  definition  (p.34)     2. Communication  and  campaign  strategy     a. Analysis  of  the  marketing  channels  (p.40)   b. Clarification  of  the  marketing  tools  to  be  developed  during  the  campaign  (p.45)     3. IMC  delivery  (p.50)     a. Communication  tools  developed  during  the  campaign  (p.50)   b. Campaign  development  schedule  (p.59)   c. Campaign  Budget  (p.65)     4. Evaluation  outcome  (p.69)     a. Pre-­‐testing  (p.69)   b. Real-­‐time  tracking  (p.69)   c. Post-­‐testing  (p.70)   d. Campaign  outcome  and  ROI  (p.73)     5. Bibliography  (p.74)     6. Appendix  1  (p.90)       7. Appendix  2  (p.91)       8. Budget  (p.93)       9. Timeline  (p.94)      
  • 4.   4   I. Executive  summary     Penhaligon’s   is   a   luxury   perfume   house   offering   sophisticated   products   for   beauty   conscious  people  with  high  standards,  and  a  taste  for  elegance  and  eccentricity.  Until   now,   the   label   has   been   doing   various   communications   enhancing   its   traditional   side   (using   visuals   with   elegant   women   wearing   long   dresses   and   men   with   top   hats   and   moustaches,  wearing  three-­‐pieces  suits).     After  a  deep  analysis  of  the  brand  profile  and  its  current  target  audience  we  came  out   with  an  integrated  campaign  centred  on  the  idea  of  distinction  and  eccentricity.  We  have   realized  that  aiming  at  a  larger  target  group  by  adding  a  fresher  and  younger  look  to  the   brand  could  be  a  great  opportunity  to  increase  its  awareness  and  sales.     The   corporate   goal   of   this   integrated   marketing   campaign   is   to   become   a   brand   of   reference  for  exclusive  perfume  houses,  by  acquiring  20.000  customers  aged  24-­‐35  and   retaining  80.000  35-­‐54  years  old  customers.  In  order  to  make  our  campaign  appealing   for   both   publics   we   have   decided   to   use   the   elegant   image   that   the   brand   has   been   promoting  so  far,  adding  it  the  touch  of  eccentricity  that  gives  it  the  original  side.  We   came  up  with  the  tagline  “Penhaligon’s,  elegance,  with  a  touch  of  eccentricity”.       This  communication  lasts  6  months  (From  September  2015  until  January  2016)  and  is   based  on  press  advertising,  direct  marketing,  sales  promotions  and  public  relations.  We   ensured   that   our   marketing   tools   are   fully   integrated   and   promote   the   exclusive   and   eccentric  image  of  Penhaligon’s.       Our   business   objective   is   to   increase   the   company’s   turnover   to   £15   million   (UK)   via   content  engagement  and  trial  incentives.       Our  return  on  investment  is  2.7.      
  • 5.   5   II. Integrated  Marketing  Communications  Proposal       1. Market  and  industry  parameters     a. Overview  of  the  market  status  and  dynamics     The  fragrance  industry  is  a  highly  competitive  highly  profitable  market  addressed  by  a   vast   variety   of   brands   with   products   ranging   from   mass-­‐market   to   selective   luxury.     Historically  it  has  been  aiming  at  a  feminine  audience  (in  2010  the  feminine  fragrance   market   was   estimated   at   £739   million   with   a   growth   of   2.4%   year-­‐to-­‐year   in   the   UK   (Mintel,   2010))   but   nowadays   it   is   increasingly   attracting   men   (the   men’s   fragrance   market  value  in  2014  in  the  UK  was  of  £33,58  million  (Statista,  2015).  In  addition  to   generating  high  margins  the  perfume  industry  is  a  very  stable  one:  it  has  been  barely   impacted  by  the  economic  recession  (Mintel,  2012).  Fragrance  sales  value  rose  by  5%  in   2013   in   the   UK   thanks   to   premium   and   mass   products   consumption   still   on   the   rise   (Euromonitor,  2014).  The  niche  sector  in  particular  has  remained  undisturbed  as  luxury   brands  users  seldom  trade-­‐down.  Premium  brands  are  almost  not  being  limited  by  price   considerations  hence  their  enhanced  freedom  to  take  financial  risks  and  protect  their   margins.       Despite  these  benefits,  the  perfume  industry  is  being  faced  with  numerous  challenges:   the   competition   is   intense,   the   sales   cycle   remains   highly   seasonal   (73%   of   women   receive  perfumes  for  Christmas,  63%  for  their  birthday  (Mintel,  2010)),  the  population   is  ageing  and  does  not  use  perfumes  as  frequently  as  it  used  to.  Today,  the  fragrance   industry  needs  to  address  a  highly  demanding  audience  in  order  to  succeed  at  restoring   its   competitiveness.   The   innovative   character   of   a   fragrance   no   longer   suffices   at   attracting   new   customers   (women’s   fragrances   are   the   main   industry   for   new   introductions  with  new  products  accounting  for  close  to  two  thirds  of  all  UK  product   launches  every  year)  while  an  increasing  number  of  people  are  looking  for  quality  and   authenticity  when  buying  perfumes  (Mintel,  2010).  Thus  37%  of  consumers  use  luxury  
  • 6.   6   fragrances  and  aftershaves  while  58%  still  agree  they  are  worth  buying  at  a  premium   price  (67%  of  55-­‐64  years  old  (Mintel,  2015)).     For   a   certain   category   of   consumers   the   uniqueness   of   the   brand   is   an   expression   of   luxury:  they  find  pleasure  in  seeking  out  and  finding  an  exquisite  perfume  that  will  make   them  stand  out.  Niche  brands  built  upon  differentiating  -­‐sometimes  authentic  stories  are   also  appealing:  they  help  to  create  a  bond  between  the  brand  and  its  target  audience   through   building-­‐up   an   efficient   word-­‐of-­‐mouth.   That   is   why   classic   brands   such   as   Grossmith  (a  perfume  house  that  used  to  supply  scents  designed  especially  for  Queen   Victoria)  are  being  revived  and  still  attract  new  customers.       In   this   report   we   shall   focus   on   both   feminine   and   masculine   UK   premium   fragrance   markets.       The  histogram  hereunder  presents  the  value  of  the  premium  women's  fragrance  market   in  the  United  Kingdom  (UK)  with  actual  figures  from  2007  up  to  2014,  and  a  forecast  for   2017.  In  2013,  the  UK  women’s  premium  fragrance  estimated  market  value  was  slightly   above  1.02  billion  U.S.  dollars.  (Statista,  2015)    
  • 7.   7   b. PEST  analysis                       Political     Economic     Social     Technological     -­‐  European  cosmetics  and   hygiene  products-­‐related   regulations  are  quite  strict:  in   order  to  ensure  that  a  product   can  be  used  safely;  list  of   ingredients  as  well  as  product   durability  period  must  be  clearly   displayed  on  the  package.  Other   constraints  apply  as  well.  This   may  slow-­‐down  innovation  and   creativity  pace  as  more  and  more   pre-­‐commercialization  tests  – more  and  more  upfront  costs,  are   being  required  to  launch  (EC   Europa,  2015)     -­‐  Regulations  and  fiscal  charges   may  discourage  manufacturers   and  eventually  effectively  result   in  price  increases.     -­‐  The  unemployment   rate  results  in  a   decrease  of  the   purchasing  power.   Customers  may  switch   from  premium  goods   to  cheaper  ones,   however  the  luxury   sector  is  relatively   unaffected  by  the  slow   economic  environment     (Mintel,  2015)           -­‐  Traditional  brands   attract  conservative   women  while  young   people  like  to   experiment  with   perfumes  (  Lambert-­‐ Pandraud,  R.  and   Laurent,  G.,2010)     -­‐  Fragrance  sales  are   mostly  seasonal  and   perfumes  are  usually   purchased  as  gifts   (Mintel,  2010)     -­‐  Easy  to  buy  perfumes   online  thanks  to  e-­‐ commerce     -­‐  Popularity  of  social   networking  encourages   companies  to  advertise   on-­‐line  (eg.  Penhaligon’s   or  Jo  Malone  Facebook   pages)     -­‐  New  technologies  allow   for  creating  perfumes   that  never  cause   allergies.        
  • 8.   8   c. Opportunities     1. Expending  into  other  countries   2. Addressing   women   aged   25-­‐34   represents   a   growing   opportunity   for   the   fragrance   industry,   but   manufacturers   should   not   ignore   older   consumers   (Webcache,  2015)   3. Introducing   new   formats   such   as   solid   perfume.   They   are   hassle-­‐free   and   convenient.  They  can  take  various  forms  such  as  rings  or  pendants  (Mintel,  2012)   4. Creating  an  organic  line  of  products  and  strongly  communicating  on  sustainable   growth  when  further  expanding  brand-­‐awareness.   5. Capitalizing   on   the   expansion   of   e-­‐commerce   that   facilitates   the   purchase   of   perfumes  on-­‐line   6. Making  use  of  the  development  of  social  networks  to  advertise  on-­‐line.       d. Threats  (Mintel,  2010)     1. Some  3.43  million  (13.1%)  UK  women  do  not  currently  use  fragrance  with  usage   dropping  as  women  grow  older   2. Intense  competition  in  luxury  fragrance  market  strengthens  (Jo  Malone,  Chanel,   Dior)   3. Sales   remain   seasonal   with   75%   of   sales   still   taking   place   over   the   Christmas   period  (Mintel,  2010)   4. Although  young  women  remain  the  main  users  of  fragrances,  some  1.5  million   16-­‐24s   (37%)   admit   they   don’t   always   remember   to   apply   them   –   while   the   average  of  women  who  forget  to  apply  perfumes  regularly  is  only  23%.     5. The  number  of  women  with  no  plans  to  change  the  fragrance  they  wear  is  on  the   rise.  Almost  one  fifth  (18%)  of  women  plan  to  stick  to  the  one  they  already  own  –   quite  a  change  from  2007,  when  only  7%  never  even  considered  changing  their   fragrance.   6. Four  women  under  25  years  old  out  of  ten  forget  to  apply  their  fragrance   7. 13,1%  of  UK  women  do  not  use  any  fragrance  and  usage  even  drops  further  as   women  grow  older  
  • 9.   9   8. 1.5  million  16-­‐24  years-­‐old  women  (37%)  forget  to  apply  fragrance.  One  in  five   women  plans  to  keep  with  the  perfume  they  already  have.   9. European   cosmetic   regulations   as   well   as   taxes   may   slow   the   innovation   and   creativity  of  the  brands      
  • 10.   10   2. Competitor  evaluation       Penhaligon’s   is   a   British   premium   perfume   house   targeting   rather   affluent   men   and   women  in  their  middle  age.  It  offers  a  variety  of  sophisticated  perfumes  in  a  refined  and   elaborated   packaging   with   prices   ranging   from   £85   to   £150   for   a   100ml   bottle.   The   brand  has  a  long  heritage  and  an  interesting  history,  which  attracts  customers  looking   for  tradition  and  differentiation  when  buying  perfumes.     The  following  brands  are  Penhaligon’s  indirect  competitors:  each  of  them  is  a  British   perfume  house  offering  sophisticated  products.  They  are  expensive  brands,  Creed  being   the   most   luxurious   one   and   Crabtree   and   Evelyn   the   most   accessible   one.   Creed   and   Floris  are  brands  with  a  rich  heritage,  just  like  Penhaligon’s.  Jo  Malone  and  Crabtree  &   Evelyn  are  rather  modern  brands  (founded  at  the  beginning  of  the  20th  Century).        
  • 11.   11   a. Crabtree  and  Evelyn  (C&E)  (Crabtree  and  Evelyn,  2015;  Harris,  R.  C&E   case  study,  2015;  NMA,  2015)       Crabtree   &   Evelyn   is   an   international   company   founded   in   1972   and   known   for   its   fragrances  and  toiletries.  It  offers  a  variety  of  body  products  such  as  creams,  perfumes   or  soaps,  gourmet  foods,  gifts  or  even  sleepwear  and  bed  accessories.  The  price  of  their   fragrances  ranges  from  £20  to  £198  for  a  100  ml  bottle.       The  brand  has  started  as  a  small  family  business  and  has  gained  recognition  and  respect   over   the   years.   A   special   attention   is   granted   to   product   packaging   and   customer   experience  in  store.     C&E  positions  itself  as  a  brand  with  a  tradition  targeting  mainly  modern  women  with  an   average  income  that  have  time  to  take  care  for  themselves  and  for  their  image.   After  a  bankruptcy  in  2009  and  the  closing  of  over  30  stores,  C&E  recovered  and  started   to   grow.   Its   current   marketing   strategy   is   based   on   a   five-­‐years   digital   marketing   campaign   aiming   at   attracting   new   audiences.   The   brand   is   looking   to   increase   its   activity  on  social  media,  adapting  itself  to  the  expansion  of  e-­‐commerce.       The   main   strength   of   C&E   is   the   fact   that   it   covers   a   wide   price-­‐range:   there   are   perfumes  priced  at  £20  as  well  as  ones  well  above  £100.  A  wide  distribution  network   (vast   choice   of   stores   in   the   United   States,   Canada,   South   America,   Europe,   Asia,   Australia   and   Africa   –   40   stores   in   all)   is   another   key   element   of   their   sensible   marketing-­‐mix.     However,   it   has   a   less   sophisticated   image   than   Penhaligon’s   and   appears  as  being  more  mainstream.       In  order  to  truly  understand  Penhaligon’s  positioning  we  will  perform  a  SWOT  analysis   for   each   of   our   brand   competitors   –   comparing   their   strengths,   weaknesses,   opportunities  and  threats  to  those  of  Penhaligon’s.          
  • 12.   12               Strengths     1. International  company  (over  500   stores  worldwide)       2. Different  prices  (perfumes  available   from  £28  to  almost  £200)       Weaknesses     1. Aggressive  customer  contact   (Chiefmarketer,  2011)   2. Using  discounts  as  a  regular  sales   promotion  strategy  makes  the  brand   look  cheap   3. Perceived  as  mainstream     4. Unclear  positioning  –  the  price  gap   between  their  products  is  too  important.   It  seems  to  be  a  premium  brand  at  first   glance  but  some  of  their  merchandise   looks  mainstream  and  seems  to  be   designed  for  the  mass  market       Opportunities     1. The   digital   marketing   strategy   they   have   been   setting-­‐up   lately   may   be   more   efficient   than   their   current   marketing  actions       Threats     1. Sales   promotion   as   a   regular   marketing   tool   may   deteriorate   the   brand   perception   2. Rough   competition   amongst   beauty   products   retailers,   especially   if   C&E   decides  to  expand  their  target  audience   to  a  more  “mass  market”  one    
  • 13.   13   b. Jo  Malone     (Fragrantica,  Wikiluxurybrands,  Elcompanies,  Jo  Malone,  2015)     Jo  Malone  is  a  British  luxury  fragrance  brand  famous  for  its  iconic  fragrances  and  luxury   lifestyle  products.  Originally  Jo  Malone  started  the  fragrance  industry  as  a  florist  by  day   and   beautician   at   night.   In   1994,   Jo   Malone   opened   her   first   boutique   in   London   presenting   a   variety   of   fragrances,   skin   care   and   home   scents.   The   flagship   boutique   opened  five  years  later  on  Sloane  Street  in  London.  The  price  of  Jo  Malone’s  fragrances   ranges  from  £82  to  £100  for  a  100  ml  bottle.     The  particularity  of  the  brand  is  the  fact  that  it  offers  co-­‐ed  scents  that  can  be  combined   in   order   to   create   a   personalised   perfume.   A   special   attention   is   also   granted   to   a   premium  packaging,  simple  and  tasteful.       Since  1999  the  company  is  part  of  the  beauty  industry  giant  Estee  Lauder  Inc.  and  is   distributed  in  33  countries  all  over  the  world.       The  last  marketing  campaign  of  the  brand,  for  the  launch  of  the  “Jo  loves”  fragrance  line   (2015),   has   generated     £1   billion   revenue   for   the   UK   branch.   (Burn-­‐Callander,   R.   Jo   Malone  survives  'the  wilderness  years'  to  come  back  fighting,  2015)     The  brand’s  strength  is  the  possibility  to  combine  different  scents  in  order  to  create  one   original  fragrance  –  an  unusual  way  to  engage  with  the  customer.  This  option  makes  the   brand   specific   and   differentiates   it   from   other   perfume   houses   such   as   Penhaligon’s.   Another   advantage   is   the   launch   of   the   “Jo   Loves”   line,   which   ads   new   scents   to   an   already  wide  collection  of  perfumes.  A  weakness  comparing  to  Penhaligon’s  could  be  the   lack  of  a  real  heritage  as  well  as  a  packaging  that  can  be  perceived  as  too  simple.                
  • 14.   14                                 Strengths     1. Possibility   to   create   a   personalised   perfume   2. Business  built  on  customer  feedback   –   first   orders   came   from   word   of   mouth  referrals  (Silverpop,  2014)   3. Clear  premium  positioning       Weaknesses   1. Repetitive  packaging       Opportunities     1. Personalized  collections   2. New  markets        
  • 15.   15   c. Creed    (Creed  Boutique,  2015,  Innovation  excellence,  2012)     Creed   is   a   niche   perfume   house   based   in   Paris.   James   Creed   founded   it   in   London   in   1760.  Originally  the  brand  was  supplying  the  English  Court  with  clothing,  scented  gloves   and  fragrances.       The   brand   became   known   for   fragrances   from   the   1960s   and   started   to   be   truly   successful  in  1985,  with  the  creation  of  the  ”Green  Irish  Tweed”  fragrance,  known  for   being  used  by  Robert  De  Niro  and  Sylvester  Stallone  amongst  others.       Today   the   brand   is   targeting   men   and   women   attached   to   traditions   and   to   a   classic   lifestyle,  and  with  a  rather  high  income  as  the  price  range  of  their  products  is  very  high   (from    £175  to  £215  for  a  100  ml  bottle).  Creed  perfumes  are  distributed  in  France,  The   United  Kingdom  and  The  United  States.     Similarly   to   other   luxurious   perfume   houses,   its   main   marketing   strategy   is   its   long   heritage  and  a  sumptuous  image  conveyed  through  word  of  mouth.  The  history  of  the   brand  is  obviously  an  advantage  for  the  brand  –  it  is  what  makes  it  unique.  However,  the   products’  prices  being  higher  than  Penhaligon’s  ones,  Creed  can  be  perceived  as  a  very   niche   and   hardly   accessible   brand.   Moreover,   brand   ambassadors   being   high   range   celebrities,  consumers  may  have  difficulty  to  identify  themselves  with  the  brand.                          
  • 16.   16                   Strengths     1. Brand  represented  by  celebrities  (e.g.   Robert  De  Niro)       Weaknesses   1. Too  niche   2. Targets   people   with   a   high   income   and   attached   to   tradition   –   unsuitable   for   young  men  and  women  as  it  gives  an  old-­‐ fashioned  image         Opportunities     1. Launching  a  cheaper  perfume  line  to   renew  the  brand’s  image       Threats   1. Too   expensive   products   might   lead   to   losing   some   customers   to   other   niche   brands   with   lower   prices   but   a   similar   quality  (Eg.  Penhaligon’s)    
  • 17.   17   d. Floris       (Floris  London,  2015;  Fragrantica,  2015)     Floris  is  the  oldest  English  retailer  of  toiletries  and  accessories.  It  is  based  in  London  and   was   founded   in   1730   by   Juan   Famenius   Floris   and   his   wife   Elizabeth.   Originally,   the   boutique   offered   grooming   and   shaving   products   as   well   as   perfumes.   The   brand   received  a  Royal  Warrant  in  1820  as  ”Smooth  Pointed  Comb  Maker”  to  King  George  IV.     Floris   perfumes   have   been   used   by   Royalty,   historical   characters   and   celebrities,   including   Winston   Churchill,   Florence   Nightengale   or   Marilyn   Monroe.   The   company   offers  four  collections  of  fragrances  (it  has  a  portfolio  of  44  perfumes);  men’s  fragrances,   women’s  fragrances,  the  Classic  collection  and  the  Private  collection,  as  well  as  bath  and   body   care   products   to   accompany   the   fragrances,   candles,   and   home   scents.   Floris’   perfumes  are  priced  at  £75  for  100ml  and  the  products  are  distributed  exclusively  in  the   United  Kingdom.       The   brand   is   famous   for   its   rich   heritage,   as   descendants   of   the   founders   have   been   running  it  until  today.  It  celebrated  its  280th  anniversary  in  2010.       Similarly  to  Creed  and  Penhaligon’s,  Floris’  main  strength  is  its  rich  heritage.  The  fact   that  it  is  the  oldest  perfume  house  in  the  UK  is  clearly  an  asset.  Also,  Floris’  perfumes   being   a   little   cheaper   than   Penhaligon’s   ones,   consumers   might   choose   them   over   another   brand.   But   an   obvious   weakness   would   be   Floris’   limited   distribution:   their   retail  stores  are  in  the  UK  only,  which  forces  people  from  abroad  to  buy  their  products   online.                    
  • 18.   18     Positioning  map                               Strengths     1. Glamorous  image   2. Iconic  brand   3. Accessible   prices   for   a   niche   brand   (less  expensive  than  Penhaligon’s)     Weaknesses     1. Limited  distribution   2. Low  awareness       Opportunities     1. Exclusive   communication   campaign   to   increase   word   of   mouth   and   encourage  trial       Threats     1. Intense   competition   and   lack   of   communication  may  affect  the  brand  and   make  it  loose  customers  to  competitors    
  • 19.   19   e. Penhaligon’s:  strengths     • Penhaligon’s  is  a  famous  brand,  symbol  of  British  elegance   • It  has  a  rich  heritage  (150  years  of  history  in  the  UK)     • It  is  known  for  the  good  quality  of  its  products,  which  gives  the  brand  a  positive   image   • It  offers  a  variety  of  products,  from  fragrances  and  candles  to  products  for  the   bath  and  the  body   • Penhaligon’s   demonstrates   that   fragrance   can   be   timeless:   it   is   a   brand   with   tradition  and  a  modern  brand  at  the  same  time:  customers  have  the  opportunity   to  buy  the  same  perfumes  as  the  ones  existing  in  1902.     • The  great  service  delivered  in  store  encourages  customers  to  become  brand  loyal   • The  niche  sector  being  relatively  unaffected  by  the  recession,  Penhaligon’s  does   not  have  to  cut  its  budget  and  has  been  reporting  profits  for  the  last  two  years     f. Penhaligon’s:  weaknesses     • Penhaligon’s  can  sometimes  be  perceived  as  old  fashioned,  due  to  the  packaging   of  the  products  and  the  fact  that  some  of  the  scents  are  the  same  as  in  the  1900s.   • It   can   be   seen   as   too   niche,   because   of   its   limited   distribution   and   high   price   (approximately  £100  for  a  100  ml  fragrance)   • Low   brand-­‐awareness   as   it   is   mainly   based   on   word-­‐of-­‐mouth   and   small   marketing  actions  (no  advertising,  no  promotion)      
  • 20.   20   3.  Overview  of  the  brand       (Interview   with   Nicolas   Fouché,   in   charge   of   the   Penhaligon’s   boutique   in   Paris   (rue   Saint-­‐Honoré),   2015;   Balmford,   G.   Q&A:   Sarah   Rotheram-­‐CEO-­‐Penhaligon's   -­‐   Retail   Focus  -­‐  Retail  Interior  Design  and  Visual  Merchandising,  2015;  Ceallaigh,  J.,  London's  top   shops:   Penhaligon's   perfumery,   2011;   Mimifroufrou,   2015;   Penhaligons.com,   2015;   Puig.com,  2015;  Waite,  S.  Odiferess:  The  Scent  of  British  Spirit,  Part  1:  Penhaligon's  and   The  Reinvention  of  Heritage,  2013;  Fragrantica,  2015)     “Our  fragrant  adventure  began  in  the  Victorian  era  of  decadence  and  carries  us  into  the   future   as   we   strive   to   create   original   scents   for   the   discerning   eccentrics   of   today.”   Penhaligons.com     Penhaligon’s   is   one   of   the   most   prestigious   British   perfume   houses.   The   brand   was   founded   in   1870   by   William   Henry   Penhaligon,   Queen   Victoria’s   Court   barber   and   perfumer.  It  is  the  holder  of  two  Royal  Warrants,  symbol  of  excellence  and  quality.  The   first  Penhaligon’s  store  opened  at  Jermyn  Street,  next  to  Turkish  Baths,  and  inspired  the   scent  “Hammam  Bouquet”,  created  in  1872.       The  brand  positions  itself  amongst  luxury  and  premium  brands,  promoting  an  image  of   glamour,  sensuousness,  uniqueness  and  eccentricity.  It  targets  men  and  women  from  a   rather   upper   social   class,   from   18   to   65   years   old,   fashion   conscious   and   slightly   eccentric  yet  attached  to  traditions.  The  brand  was  clearly  masculine  at  first  but  today   more  and  more  women  are  becoming  clients.  Every  profile  is  targeted;  some  buyers  are   collectors,   perfume   passionates,   others   are   attached   to   traditions.   Many   tourists   buy   Penhaligon’s  perfumes  as  well.     Each  of  Penhaligon’s  fragrances  echoes  a  British  story  and  is  special,  constructed  with   fine  and  rare  ingredients  and  with  the  latest  technologies  in  fragrance  chemistry.  Most   perfumes  are  built  around  a  classic  structure  with  head,  heart  and  base  notes.     The  most  iconic  one  is  Blenheim  Bouquet,  created  in  1902  for  the  Duke  of  Marlborough   and  the  best  seller  is  Bluebell,  used  by  Lady  Diana.  
  • 21.   21   The   success   of   Penhaligon’s   is   due   to   its   strong   heritage   but   also   its   timeless   image.   Customers  are  curious  about  discovering  a  brand  that  seems  traditional  and  modern  at   the  same  time.       They  are  looking  for  something  that  gives  them  the  feeling  of  uniqueness  and  originality   and  are  attracted  by  the  vintage  side  of  the  label.  Moreover,  they  are  aware  of  the  good   quality  of  the  products,  which  justifies  a  rather  high  price  range  (around  £120  for  a  100   ml   bottle).   The   service   in   store   is   also   mastered:   each   customer   receives   special   attention  from  the  sales  attendant  who  knows  everything  about  the  products  sold  and  is   a  great  advisor.     Another  positive  aspect  of  the  brand  is  the  fact  that  its  awareness  is  based  on  word-­‐of-­‐ mouth  only.  Penhaligon’s  does  not  advertise  through  out-­‐of-­‐home,  TV  or  press  and  does   not  use  any  brand  muse,  which  makes  it  even  more  special  comparing  to  other  perfume   houses.   However,   the   brand   does   some   experiential   marketing   for   the   launch   of   new   fragrances.  For  the  “Tralala”  perfume,  the  boutique  in  Paris  invited  burlesque  dancers  to   make  a  show  on  the  storefront.  Penhaligon’s  last  perfume  “Ostara”  was  advertised  in   London   by   a   person   riding   a   branded   bicycle   filled   with   yellow   and   white   flowers   (colours  of  the  Ostara  perfume).  This  strategy  seems  unusual  but  has  been  working  well   so  far,  and  Penhaligon’s  reports  positive  results  for  the  last  few  years.     Since   January   2015   Penhaligon’s   is   owned   by   Puig,   a   Spanish   fashion   and   fragrance   house,  which  also  has  brands  such  as  the  French  Perfume  House  L’Artisan  Parfumeur,   Paco  Rabane,  Prada,  Valentino,  Comme  Des  Garçons  or  Nina  Ricci.  The  group  sells  its   products  in  over  140  countries  worldwide  and  had  revenues  of  €1,49  billion  in  2013.   Penhaligon’s  perceives  its  acquisition  by  Puig  as  an  opportunity  to  be  boosted  but  hopes   that  it  won’t  loose  its  unique  and  traditional  image.  The  next  step  that  the  brand  wishes   to  take  is  to  expend  to  Asia  (there  is  already  one  boutique  in  Hong  Kong),  to  the  USA  and   to  open  two  other  boutiques  in  France.            
  • 22.   22   Keller’s  brand  equity  model     1. Resonance:   Loyalty,   engaged   customers   and   brand   ambassadors.   The   main   purpose  of  the  campaign  is  to  increase  brand  awareness  in  order  to  attract  more   customers   but   also   to   retain   the   current   ones   and   make   them   brand   ambassadors.         2. Judgements:  High  quality,  excellence,  satisfaction  and  perfect  in-­‐store  servicing.   The   purpose   of   the   campaign   is   to   recall   Penhaligon’s   excellent   quality.   The   brand’s   perfumes   are   made   with   the   latest   fragrance   chemistry   technologies,   which  make  the  scents  last  for  a  long  time.       3. Feelings:  uniqueness,  sophistication.  The  integrated  marketing  campaign  would   aim  at  emphasizing  the  glamorous,  sensual  image  of  the  brand.  Its  purpose  would   be  for  a  person  seeing  the  advert  to  be  transported  to  ancient  times,  to  traditional   England.   The   sophisticated   packaging,   spotlighted   on   the   advert,   would   automatically  attract  the  customer.     4. Performance:   stylish,   rather   expensive   but   worth   the   spent.   Penhaligon’s   positions  itself  as  a  luxury  brand,  which  explains  a  rather  high  price  positioning   of   the   products.   We   need   to   recall   that   it   is   worth   the   spent   as   it   is   the   finest   quality  and  also  a  very  special  and  stylish  brand.     5. Imagery:  classic,  vintage.  The  purpose  of  the  brand  image  is  to  create  emotions.   Even  if  the  imagery  of  Penhaligon’s  is  classic  and  vintage,  we  want  to  highlight   the   fact   that   the   customer   does   not   have   to   be   a   fan   of   vintage   brands   to   be   attracted   by   this   one.   However,   the   classic   image   will   definitely   stay   in   the   campaign,  as  we  want  for  the  brand  to  keep  its  identity.       6. Salience:  the  tradition  and  the  heritage.  It  is  the  first  thing  that  comes  to  our  mind   when  we  think  about  Penhaligon’s.  Everything  in  the  store  reminds  us  of  about   the  long  heritage  of  the  company.  This  part  will  also  be  emphasized  during  the  
  • 23.   23   campaign,  as  it  is  what  makes  Penhaligon’s  different  from  most  of  the  perfume   houses.       In  order  to  understand  our  brand  in  a  really  clear  way  and  establish  its  positioning  we   will  be  using  the  Profile  4  D  marketing  model.  This  profile  helps  us  understand  the  type   of  customers  that  go  shopping  at  Penhaligon’s,  as  well  as  the  relationship  between  the   brand  and  its  audience.     • The   value   profile   defines   the   value   of   the   customer   for   the   brand,   the   kind   of   relationship   between   both   as   well   as   how   the   customer   perceives   the   label.     Penhaligon’s  is  perceived  as  a  “love  brand”,  which  means  that  its  customers  are   strongly  attached  to  the  brand,  most  of  them  are  brand  loyalists.     • The   Like   profile   is   the   kind   of   hobbies   and   passions   Penhaligon’s   customers   would   have.   Currently,   Penhaligon’s   customers   are   interested   in   fashion   and   culture,  they  read  news  (politics,  economics)     • The  persuasion  profile  is  the  image  that  the  brand  represents  and  that  attracts   customers.  Here,  it  is  the  exclusive  and  original  reflection  given  by  the  company,   as  well  as  the  tradition  mixed  with  eccentricity.     • The   media   profile   is   the   type   of   media   that   would   reach   the   brand’s   current   target  audience.  As  most  of  Penhaligon’s  clients  are  so  far  middle-­‐aged  men  and   women,  from  a  rather  high  social  class  and  with  an  education,  magazines  would   be  the  media  type  that  would  fit  the  best.       Thanks  to  this  model  we  are  able  to  realize  the  kind  of  customers  Penhaligon’s  currently   attracts   as   well   as   to   seize   the   opportunity   of   expending   the   target   audience   for   the   campaign.       The  “brand  identity  Kapferer’s  prism”  is  also  a  useful  marketing  model  –  it  resembles   the   brand   wheel   but   is   a   more   elaborated   way.   It   defines   the   brand’s   products   and   personality,  which  is  useful  for  our  positioning  statement.  
  • 24.   24   • The   physical   facet   is   what   the   product   does   and   its   physical   external   image.   Penhaligon’s  perfume  bottle  is  made  of  glass  with  a  plastic  cap  decorated  by  a   bow   tie.   The   fragrance   has   a   strong   scent.   The   dominating   colours   within   the   brand  communication  and  the  boutiques  are  blue,  grey,  orange,  gold  and  white.     • The  relationship  is  the  way  the  brand  interacts  with  its  customers,  what  it  brings   to  the  customers.  Here  it  is  the  idea  of  personal  success  and  cultural  distinction.     • The   reflection   is   how   other   people   would   perceive   a   typical   customer   of   this   brand.  Penhaligon’s  typical  client  is  a  well-­‐educated  and  refined  person  with  a   touch  of  eccentricity.       • The   personality   describes   the   identification   with   a   person,   the   human   characteristics   of   the   brand.   In   our   case,   Penhaligon’s   personality   would   be   sophisticated,  elegant,  distinguished,  eccentric  and  self-­‐confident.     • The  culture  is  the  kind  of  values  communicated  through  the  brand,  which  for  our   label  would  be  tradition  and  fantasy.     • The  self-­‐image  is  the  mirror  the  target  groups  of  the  brand  holds  to  itself.  For   Penhaligon’s  it  would  be  being  part  of  the  elite,  looking  like  a  person  looking  for   “high  standards”.                        
  • 25.   25   These  two  models  are  helpful  for  a  deep  understanding  of  our  brand’s  positioning.     Thus,  Penhaligon’s  are  sophisticated  perfumes  with  a  touch  of  eccentricity  for  men  and   women  from  35  to  55  years  old,  belonging  to  the  ABC1  social  class,  looking  for  a  brand   that  will  make  them  look  elegant  but  feel  unique.  Unlike  its  competitors,  Penhaligon’s  is   a  niche  brand  that  offers  a  variety  of  exclusive  products  in  a  beautiful  packaging.     The   Unique   Selling   Proposition   for   Penhaligon’s   would   be   “exclusive   perfumes   for   people  with  high  standards”.        
  • 26.   26     4. Clarification   of   the   strategic   marketing   opportunity   to   be   developed  for  the  brand     Ansoff  Matrix         Existing  products         New  products   Existing  market   Market  penetration       Product  development   New  market   Market  development       Diversification     According   to   the   Ansoff   matrix   above,   Penhaligon’s’   current   marketing   strategy   is   to   develop   their   products,   launching   at   least   one   new   perfume   per   year   –   currently   the   launch  of  the  N°33  fragrance  is  supported  by  an  online  marketing  campaign  addressing   24-­‐35   years   old   men   (with   the   #VeryPenhaligons).   Another   strategy   developed   by   Penhaligon’s  is  to  expand  their  brand  into  other  countries.  Penhaligon’s  already  exists  in   the  UK,  in  the  USA,  in  France,  as  well  as  in  Singapore  and  Hong  Kong.  However,  it  is   planning  to  develop  more  boutiques  in  New  York,  France  and  Japan.       For   our   marketing   campaign   we   want   to   seize   the   opportunity   we   have   identified   previously  which  is  the  fact  that  “women  aged  25-­‐34  represent  a  growing  opportunity   for   the   fragrance   industry,   but   manufacturers   should   not   ignore   older   consumers   (Webcache,   2015)”   as   well   as   the   threat   of   perfume   brands   being   “season-­‐based  
  • 27.   27   products”  (sales  growing  during  Christmas).  We  also  want  to  keep  the  “tradition  with   eccentricity”   image   the   brand   has   been   communicating   until   now.   We   recall   that   the   brand’s  “adventure  began  in  the  Victorian  era  of  decadence  and  carries  us  into  the  future   as   we   strive   to   create   original   scents   for   the   discerning   eccentrics   of   today.”   (Penhaligons.com).       We   want   to   combine   these   factors   in   order   to   develop   a   coherent   strategy   that   will   target   men   and   women   24-­‐35   and   45-­‐54   years   old,   ABC1   social   class,   looking   for   an   original   brand   that   will   recall   the   values   they   care   about   along   with   the   touch   of   eccentricity  they  need.       Our   campaign   catchphrase   will   be   “Elegance   with   a   touch   of   eccentricity”   and   the   strategy   will   be   to   retain   our   current   35-­‐54   men   and   women   customers   by   communicating  that  buying  our  perfumes  is  “adding  a  touch  of  fantasy  to  their  classic   outfit”   and   acquire   men   and   women   25-­‐34   years-­‐old   customers   by   ensuring   that   the   touch   of   eccentricity   given   by   a   Penhaligon’s   fragrance   is   what   will   make   them   feel   unique  and  thus  self-­‐confident.                                    
  • 28.   28   5. Quantified  marketing  objectives,  implications  for  the  IMC   and  financial  situation     The  main  purpose  of  our  integrated  marketing  communications  campaign  is  to  become   the   brand   of   reference   when   thinking   of   luxurious   and   elegant   fragrance   labels.   As   Penhaligon’s  is  an  English  luxury  brand  with  heritage  but  its  main  marketing  strategy  so   far  has  been  word-­‐of-­‐mouth,  we  will  be  looking  to  increase  the  awareness  of  the  brand   and  acquire  new  customers.     Thus,  our  business  objective  is  to  increase  the  brand’s  turnover  to  £15  million  in  2016,   as  it  was  around  12  million  in  2013  (last  available  financial  results,  Fame,  2015).     Our  marketing  objective  is  to  increase  trial  via  call  to  action  amongst  the  24-­‐35  years  old   men  and  women  target  group  by  10%  and  to  raise  the  brand  awareness  by  20%  by  the   end  of  2016.     Our  integrated  marketing  communications  objective  is  to  reinforce  the  brand  image  by   acquiring   20.000   new   customers   amongst   the   25-­‐34   years   old   target   group,   and   retaining  80.000  customers  amongst  the  35-­‐54  years  old  target  group.     We  will  aim  at  achieving  these  objectives  through  press  advertising,  social  media  and   content  marketing.  The  experiential  marketing  done  by  the  brand  so  far  has  been  very   limited  and  took  place  in  a  few  boutiques  only.  The  main  thing  that  attracts  customers   currently  is  the  image  of  the  brand  and  the  boutique  interiors,  as  well  as  the  service   provided  in  store.  But  press  advertising  would  increase  word-­‐of-­‐mouth.       We   will   also   be   more   active   on   social   media,   posting   regularly   fashion   trends   of   the   season   that   would   go   with   particular   Penhaligon’s   fragrances.   To   increase   the   interaction  with  the  customers  we  would  create  a  social  media  contest  rewarded  with   Penhaligon’s  products.        
  • 29.   29   The  campaign  will  target  24-­‐35  and  35-­‐54  years  old  men  and  women,  ABC1  social  class,   well-­‐educated   and   beauty   conscious.   The   campaign   will   emphasize   the   elegant   image   that   the   brand   has   been   communicating   so   far   but   also   the   touch   of   eccentricity   that   makes  it  so  unique.     Penhaligon’s   does   not   share   financial   results   for   2014   but   we   do   have   some   of   the   previous  fiscal  years  ones.   Thus  we  know  that  the  company’s  turnover  was  £12.624.000  in  December  2013,  which   shows  a  growth  compared  to  2012  when  it  was  £10.514.000  (Fame,  2015).     The  profit  before  tax  was  £1.062.000  in  2013,  which  is  a  significant  progress  comparing   to  the  previous  years.  2010  has  been  a  difficult  year  for  the  company  as  it  has  generated   a  loss  of  £805.000.  The  brand  was  back  on  track  a  few  months  later,  announcing  a  profit   of  £609.000  for  2011  and  £812.000  for  2012.       Because  we  have  seen  how  fast  our  brand  is  able  to  grow  we  aim  at  achieving  a     £15.000  k  turnover  after  our  campaign  (2016).        
  • 30.   30   6. Summary  –  outlining  the  proposal  for  marketing   communications     Penhaligon’s  is  a  traditional  brand  offering  luxury  products  at  a  rather  high  price  for   beauty  conscious  people  that  wish  to  feel  different  and  special,  and  do  not  like  mass-­‐ market   perfumes.   Despite   the   fact   that   the   brand   reports   profits,   its   awareness   stays   limited,  as  its  main  strategy  to  attract  customers  is  word-­‐of-­‐mouth  and  a  little  activity  on   social  media  as  well  as  some  limited  marketing  actions  for  the  launch  of  new  fragrances.     The  purpose  of  the  integrated  marketing  communications  campaign  is  to  increase  this   awareness   by   acquiring   20.000   new   customers   and   retaining   80.000   current   ones.   In   order  to  achieve  this  goal  we  will  run  a  six-­‐months  integrated  campaign  based  on  the   brand’s   values   of   elegance   and   eccentricity.   The   campaign   will   be   based   on   press   advertising,  direct  marketing,  sales  promotions  and  public  relations.  We  won’t  be  doing   any   out-­‐of-­‐home   or   television   commercials,   as   we   don’t   want   for   our   brand   to   be   perceived  as  mainstream  but  to  keep  its  unique  niche  image.      
  • 31.   31   III. IMC  development     1. Objectives  and  scope       a. Definition  of  the  integrated  marketing  and  analysis  of  the  marketing   mix  tools     The   American   Association   of   Advertising   Agencies   describes   integrated   marketing   communications  as  “  a  concept  of  marketing  communications  planning  that  recognizes   the  added  value  of  a  comprehensive  plan,  that  evaluates  the  strategic  roles  of  a  variety  of   communication   disciplines,   eg.   General   advertising,   direct   response,   sales   promotion   and   PR   –   and   combines   these   disciplines   to   provide   clarity,   consistency   while   maximizing  communication  impact”.       In   other   words,   an   integrated   campaign   looks   for   the   reach   of   a   synergy   by   using   different  marketing  tools  together,  instead  of  making  them  operate  separately  as  it  has   been  traditionally  done.         This  method  is  a  way  of  looking  at  distinct  parts  such  as  advertising,  public  relations,   sales   promotion,   purchasing,   and   employee   communication   as   a   “flow   of   information   from  indistinguishable  sources”  (De  Pelsmacker,  Geuens,  Van  Den  Bergh,  2013).         In   order   to   understand   how   to   combine   marketing   mix   tools   together   to   create   an   impactful   communication   we   first   need   to   have   a   look   at   each   of   these   tools.   The   marketing  mix  is  formed  of  four  different  instruments:  the  product,  the  price,  the  place   and  the  promotion.  Each  of  them  plays  a  specific  and  essential  role  when  determining  a   brand’s  offer.  (BBC.co.uk,  2014)     When  looking  at  the  product,  different  factors  have  to  be  taken  into  account:  its  benefits,   features  and  options,  its  quality  design  and  branding,  the  packaging,  the  services  and  the  
  • 32.   32   warranties.  Each  of  these  factors  will  position  the  product.  We  will  be  able  to  determine   if  it  is  a  luxury  product,  a  medium-­‐range  one  or  if  it  has  been  made  for  the  mass  market.   According   to   that,   the   price   will   be   higher   or   lower   and   the   place   where   it   will   be   displayed  will  be  adapted,  as  well  as  the  promotion.       • The   pricing   plays   a   crucial   role   in   the   marketing   mix:   it   can   be   used   as   an   incentive  for  the  consumer.  Discounts  are  often  a  way  to  attract  customers  and   convince  them  to  buy  a  particular  product.       • The   place   where   the   product   is   displayed   will   make   it   look   more   or   less   attractive.  When  defining  the  place  of  the  product  the  brand  needs  to  arrange  all   of  the  channels  and  logistics,  make  the  inventory,  arrange  the  transport  and  the   locations.       • Eventually,  the  promotion  is  the  element  we  are  going  to  be  focusing  on  during   this  integrated  campaign.  Promotion  takes  various  forms:  the  most  popular  one   is  advertising  but  it  can  also  be  public  relations,  sponsorship,  brand  activation,   direct   marketing,   point   of   purchase   promotion,   exhibitions   and   trade   fairs,   personal   selling   or   electronic   communication.   Each   of   them   has   a   specific   purpose  but  they  have  one  common  goal:  attracting  attention  on  the  product  in   order  to  sell  it.       Each  brand  chooses  a  specific  combination  of  the  four  elements  of  the  marketing  mix,   adapted  to  the  image  of  the  brand  and  to  the  audience  targeted.  For  instance,  Haagen-­‐ Dazs  sells  premium  Ice  Cream  at  a  rather  high  price  comparing  to  its  competitors,  as  a   sign  of  high  quality.  The  distribution  is  exclusive  and  the  communication  strategy  of  the   brand   indicates   a   sophisticated   style   associated   with   a   particular   positioning.   (De   Pelsmacker,  Geuens,  Van  Den  Bergh,  2013)     Therefore,   when   planning   an   integrated   marketing   communications   campaign   it   is   essential  to  determine  a  specific  message  proper  to  the  character  of  the  brand.        
  • 33.   33   b. Objectives  and  strategy     In  this  campaign  we  are  going  to  choose  particular  integrated  communications  for  the   British  perfume  house,  Penhaligon’s.  It  is  a  luxury  brand  with  wide  tradition  targeting  at   rather  affluent  men  and  women,  willing  to  spend  some  money  for  an  exclusive  fragrance   that  will  make  them  feel  special.       So  far  Penhaligon’s  has  been  doing  various  communications  and  marketing  actions  but   they  were  never  integrated.  Last  year  the  brand  was  the  official  sponsor  of  “Movember”   and   had   created   a   pop-­‐up   barbershop   in   London’s   Covent   Garden   in   order   to   build   awareness  for  men’s  health.  The  action  included  a  moustache  competition  where  fans   where  encouraged  to  submit  before  and  after  Movember,  as  well  as  “work  in  progress”   pictures   of   them   into   Facebook.   The   first   prize   winner   was   rewarded   with   a   year’s   supply  of  Penhaligon’s  perfumes  (Luxurydaily,  2014).       The  brand  has  also  been  in  a  special  partnership  with  the  English  National  Ballet  that   inspired   it   with   creating   the   Iris   Prima   fragrance,   capturing   the   essence   of   the   ballet   (Packaging  of  the  world,  2013).     Another   marketing   action   Penhaligon’s   has   succeeded   with   was   a   press   event,   which   consisted  of  launching  five  taxis,  entirely  branded  and  perfumed  with  the  brand’s  latest   fragrances,  in  Central  London.  The  drivers  were  trained  on  Penhaligon’s  history  and  the   cab’s  passengers  received  a  10%  discount  voucher  on  Penhaligon’s  products,  in  store   and  online.  (Mimifoufrou,  2010)     These  are  three  examples  of  the  marketing  tactics  Penhaligon’s  has  been  using  over  the   years.  Most  of  them  were  successful  but  an  integrated  campaign  has  never  been  done   until  today.  For  this  reason,  it  seemed  that  a  good  way  for  the  brand  to  raise  awareness   and  attract  new  customers  would  be  to  create  an  integrated  marketing  campaign.         In  order  to  prepare  the  strategy  for  our  integrated  campaign  it  is  crucial  to  determine   smart   goals   (specific,   measurable,   achievable,   realistic   and   timely)   and   precise   objectives.  
  • 34.   34   These   objectives   have   already   been   set   up   in   the   first   part   of   the   project   (i.e.   the   proposal),  but  we  are  going  to  remind  them  briefly.       The  main  purpose  of  our  integrated  marketing  communications  campaign  is  to  become   the   brand   of   reference   for   luxury   perfumes   via   content   engagement   and   trial.   As   we   were  saying  previously,  the  last  results  for  the  UK  we  have  access  to  are  from  2013  and   show  a  turnover  of  £12.6  million  and  a  profit  before  tax  of  approximately  £  1  million   (Fame,   2015).     These   results   seem   to   be   positive   for   such   a   niche   brand.   Because   it   seems  that  their  strategy  has  been  paying  off  up  to  this  point,  we  will  not  be  changing   their  positioning  too  much  but  will  help  them  retain  customers  and  acquire  new  ones  by   adding  the  brand  a  fresher  and  younger  look.       The  marketing  actions  they  have  been  doing  so  far  encouraged  word  of  mouth  and  had  a   positive   PR   return.   Because   we   want   Penhaligon’s   to   keep   its   unique   image   we   will   centre  our  campaign  on  the  exclusivity  and  the  eccentricity  of  the  brand.  This  will  add  a   “cool”  touch  to  its  image  but  will  not  push  back  the  older  target  audience.     Our  campaign’s  business  objective  is  thus  to  achieve  a  turnover  of  £15  million  by  the   end  of  2016.     c. Target  audience  definition     Our  marketing  objective  is  to  increase  trial  among  the  24-­‐35  years  old,  men  and  women,   ABC1  social  class,  as  well  as  to  raise  brand  awareness  by  20%  by  the  end  of  2016.     Our  integrated  marketing  communications  objective  is  to  reinforce  the  brand  image  by   acquiring  20.000  new  customers  and  retaining  80.000  of  our  current  clients.     The  strategy  we  are  going  to  use  is  content  engagement  in  order  to  become  a  brand  of   reference  and  trial  incentives  via  call  to  action.     We  will  be  more  active  on  social  media,  posting  regularly  fashion  trends  of  the  season   that  would  go  with  particular  Penhaligon’s  fragrances.  To  increase  the  interaction  with  
  • 35.   35   the   customers   we   would   create   a   social   media   contest   rewarded   with   Penhaligon’s   products.  Indeed,  social  media  have  become  very  popular  and  are  a  good  way  to  build  a   brand-­‐customer   relationship   -­‐   11%   of   the   world   population   has   a   Facebook   account   (The  social  skinny,  2012).    Social  media  and  digital  marketing  are  a  good  way  to  reach   out  to  “young”  target  group  (24-­‐35  years  old),  as  they  are  the  generation  that  spends   most  of  their  time  connected  to  the  Internet,  often  with  their  computer  but  usually  with   their  smartphone.       As  previously  stated,  the  goal  of  our  campaign  is  to  acquire  20.000  new  customers  while   retaining  80.000  current  ones.         In  order  to  prepare  for  a  successful  integrated  campaign  several  crucial  steps  have  to  be   taken  into  account.  The  first  and  probably  the  most  important  one  is  to  fully  understand   the  target  audience.  The  second  one  is  to  choose  the  marketing  channels  adapted  to  this   audience  in  order  for  the  campaign  to  be  impactful.  The  third  step  is  to  create  a  clear  and   stable  content  with  an  explicit  message.     We  will  start  here  with  the  first  step  and  determine  carefully  our  target  group.       As  yet,  if  we  have  a  look  at  the  people  that  use  Penhaligon’s  perfumes  we  will  have  a   masculine   audience,   aged   between   40   and   59   years   old,   from   the   ABC1   social   grade.   Their  place  of  living  is  most  probably  London  or  another  large  British  city,  they  will  be   on  the  right  wing  in  politics,  and  they  will  have  a  monthly  spare  of  £1000  pounds  or   more  (YouGov  Profiler,  2015).       This  is  how  a  typical  Penhaligon’s  customer  would  look.  As  we  do  not  want  to  reposition   the  brand  too  much  we  will  do  some  customer  retention  among  35-­‐54  years  old  men   and  women.  In  order  to  make  this  retention  coherent,  we  need  to  determine  how  these   customers  will  look  like  by  choosing  a  ‘typical  profile”  from  this  target  group.     • Mary  is  37  years  old  and  belongs  to  the  ABC1  social  class.  She  is  well-­‐educated   and  interested  in  fashion.  She  works  as  a  project  manager  in  a  communication   company.  She  lives  in  South  Kensington  with  her  husband  and  two  children.  She  
  • 36.   36   buys  perfumes  at  Penhaligon’s  because  she  wants  to  feel  pretty  and  special  at  any   time  of  the  day.  She  feels  that  Penhaligon’s  gives  her  the  touch  of  elegance  and   distinction  she  needs  with  her  sophisticated  outfit.  She  enjoys  high-­‐end  clothing   and  appreciates  an  occasional  shopping  tour  in  luxury  boutiques.  She  is  not  an   easy  brand  switcher  and  looks  for  a  brand  she  will  fall  in  love  with  and  trust.       • Henry   is   52   years,   belongs   to   the   ABC1   social   class   and   lives   in   Chelsea.   He   is   married   with   children.   He   is   rather   conservative.   He   wants   to   look   good   and   serious   but   trusts   his   wife   with   his   clothes   and   perfumes.   He   chooses   Penhaligon’s   because   he   trusts   the   authenticity   of   the   brand   as   well   as   its   “Britishness”.  He  enjoys  Penhaligon’s  perfumes  because  they  make  him  feel  truly   British   and   add   a   grain   of   eccentricity   to   his   smart   outfit.   He   is   quite   an   easy   brand   switcher   and   listens   to   his   friends   and   family   advices   when   it   comes   to   aesthetics.       These   are   two   typical   profiles   of   the   customers   for   retention.   Now   let’s   establish   the   characteristics  of  the  ones  we  will  acquire.     24  to  35  years  old  people  represent  a  good  opportunity  for  the  fragrance  industry,  as   they  are  the  ones  that  use  perfumes  a  lot.  Thus,  for  the  acquisition,  we  will  target  24-­‐35   years  old  men  and  women,  ABC1  social  class.     • Julia  is  29  years  old  and  belongs  to  the  ABC1  social  class.    She  enjoys  wearing   elegant  outfits  but  she  also  likes  to  dress  eccentric  from  time  to  time.  She  lives  in   Newcastle  and  thinks  of  starting  a  family.  She  likes  Penhaligon’s  because  using   these  perfumes  makes  her  feel  original  and  thus  more  self-­‐confident.       • Anthony   is   24   years   old   and   belongs   to   the   same   social   class   as   Julia.   He   is   a   classic  “hipster”.  He  likes  wearing  clothes  from  unknown  shops  and  listening  to   the  music  on  a  vinyl  record  player.  He  chooses  Penhaligon’s  perfumes  because  he   feels  it  is  a  unique  brand  that  sells  more  than  only  a  bottle  of  fragrance.  He  enjoys   the  authentic  and  eccentric  aspect  of  the  bottle  and  the  originality  of  the  smell.  He  
  • 37.   37   is  willing  to  spend  some  money  on  a  perfume  as  long  as  it  has  something  special.   He  lives  in  London  and  works  as  a  fashion  photograph.     In  order  for  us  to  fully  understand  the  consumer  behaviour  and  their  decision  path  we   will   be   using   the   means-­‐end-­‐chain   model.   This   model   makes   a   deep   analysis   of   a   consumer’s  particular  behaviour  such  as  “why  would  a  soccer  mom  drive  an  SUV  instead   of  a  mini-­‐van”  (Rock  research,  2013).  The  chain  has  different  steps.  The  first  one  is  the   attribute  of  the  product,  one  is  concrete,  and  the  other  one  is  abstract.  The  second  step  is   the   consequence,   functional   and   psychosocial.   The   last   one   is   the   value;   instrumental   and  terminal.             • The  concrete  attribute  of  a  bottle  of  Penhaligon’s  perfumes  is  the  fact  that  it  is   made  in  glass  and  round-­‐shaped.  The  cap  is  ball  shaped  and  made  in  plastic,  often   decorated  with  a  bow  tie.     • The  abstract  attribute  is  that  the  fragrance  has  a  strong  and  unique  smell.     • The  functional  benefit  of  the  product  is  that  it  makes  you  smell  good  and  wear  a   unique  fragrance  only  a  few  people  know  about.     • The  psychosocial  benefit  of  using  a  Penhaligon’s  perfume  is  for  the  person  using   it  to  feel  special  and  a  little  bit  eccentric.     • The  instrumental  value  is  avoiding  to  wear  the  same  perfume  as  everyone  else   and     • The  terminal  one  is  simply  to  feel  more  confident  about  him/her  self.     This   model   explains   in   a   clear   way   what   arguments   are   taken   into   account   while   choosing  a  fragrance  and  what  are  the  attributes  the  person  buying  a  particular  brand  is  
  • 38.   38   seeking   for.   It   helps   us   understand   the   exact   perception   of   the   consumer   about   the   brand  but  also  how  relevant  the  choice  of  the  product  and  the  brand  can  be.  Eventually,   such  an  analysis  leads  us  to  a  deep  understanding  of  the  consumer  values.       Thanks  to  this  knowledge,  we  can  now  be  able  to  determine  the  level  of  involvement  of   the   consumer   when   choosing   the   product.   If   the   involvement   is   high,   the   product   attributes  are  directly  related  to  the  personal  goals  and  values  of  the  consumer.  If  it  is  a   medium  involvement,  the  attributes  are  marginally  linked  to  personal  values.  After  all,  if   the  involvement  is  low,  the  attributes  of  the  product  are  only  linked  to  the  functional   consequences  of  its  usage.       In   this   case,   because   Penhaligon’s   perfumes   are   specific   and   because   all   of   their   attributes   are   carefully   chosen   in   order   to   make   each   of   them   truly   unique,   it   would   seem  that  a  consumer  choosing  to  buy  them  would  most  probably  be  highly  involved  in   the  purchase  process.     In   the   end,   this   is   to   help   us   understand   the   reasons   that   motivate   the   consumer   for   purchasing   and   breaking   down   the   consumer/product   relationship.   Such   an   understanding  is  crucial  for  the  marketing  implications  of  the  brand  because  it  helps  us   define  the  category  of  the  brand  user.       There  are  four  types  of  brand  users:     • The  brand  loyalists,  which  are  strongly  attached  to  a  particular  brand  and  will  be   reluctant  to  change   • The  routine  brand  buyers,  who  choose  to  buy  regularly  from  a  specific  company   because  it  is  convenient  but  with  low  self-­‐  relevance   • The  information  seekers,  that  analyse  the  brand  and  the  product,  know  about  the   category  but  do  not  have  any  particular  preference     • The   brand   switchers   that   choose   to   buy   a   product   according   to   its   price,   availability  or  special  offer.  (Chackaprani,  1999).     By   doing   retention,   we   are   aiming   at   keeping   our   loyal   customers   and   making   them   become  brand  loyalists  –  as  well  as  brand  ambassadors.    
  • 39.   39     For  the  acquisition,  we  are  going  to  look  for  brand  switchers,  which  do  not  have  their   favourite  perfume  brand  yet,  in  order  to  convince  them  to  become  brand  adopters  at   first  and  then  brand  loyalists.     The  whole  purpose  of  our  campaign  is  to  encourage  trial  among  24  to  35  years  old  and   to  convince  our  older  audience  to  choose  Penhaligon’s  definitely.       The   next   step   is   choosing   the   adapted   communication   tools   to   attract   our   target   audience.        
  • 40.   40   2. Communication  and  campaign  strategy       In  order  to  establish  an  integrated  marketing  campaign,  it  is  necessary  to  choose  among   different  communication  tools  those,  that  are  going  to  be  the  most  appropriate  when   addressing  the  targeted  audience,  in  order  to  outline  the  positioning  of  the  product  and   the  message  communicated  by  the  campaign.     Successful  brands  use  a  variety  of  promotional  tools  to  position  their  value  proposals   and   products   in   consumers’   minds.   By   using   these   tools,   they   manage   to   connect   consumers’  values’  with  those  communicated  by  the  company.       The  popular  saying  stating,  “a  good  product  sells  itself”  is  only  true  when  an  efficient   marketing  campaign  and  a  clear  positioning  statement  support  this  product.    This  is  how   people  link  brands  to  values,  choosing  the  ones  they  feel  close  to.     Eg.  Benetton  achieved  a  high  visibility  by  showing  advertisements  related  to  diversity.   (Gbadamosi,  Nwakwo,  Bathgate,  2013).     The  ideal  way  to  make  a  campaign  work  is  to  combine  several  communication  tools  that,   when  activated  together,  deliver  a  coherent  message.     a. Analysis  of  the  marketing  channels     Advertising  is  composed  of  impersonal  messages  communicated  to  inform,  persuade  or   remind   consumers   about   products   and   services.   The   company   initiating   the   advertisement  is  in  charge  of  paying  for  it.       There  are  several  types  of  advertising.       The   most   common   ones   are   traditional   advertising   delivered   through   television,   magazines,  newspapers,  posters,  radio,  billboards,  cinema,  vehicles  and  transit  boards.    
  • 41.   41   Traditional  advertising  communication  channels  have  the  main  advantage  of  allowing   companies  to  choose  a  specific  method  adapted  to  their  target  group  and  budget.  But   with  the  expansion  of  new  media  advertising  opportunities  are  born,  for  a  lower  cost.       In  point  of  fact,  traditional  advertising  does  not  enable  a  direct  response  and  it  is  much   harder  to  evaluate  its  efficiency.  Indeed,  if  print  and  broadcast  outlets  enable  media  kits   with  audience  demographics,  it  is  actually  really  hard  to  actually  know  who  saw,  read  or   viewed  the  ad,  once  it  is  displayed.  (Ashe-­‐Edmunds,  S.,  2015)     Another   disadvantage   of   traditional   advertising   is   the   fact   that   even   if   print   and   broadcast   outlets   enable   media   kits   with   audience   demographics,   it   is   actually   really   hard   to   actually   know   who   saw,   read   or   viewed   the   ad,   once   it   is   displayed.   (Ashe-­‐ Edmunds,  S.,  2015)     As  we  were  saying  above,  with  the  expansion  of  the  Internet  and  therefore  mobile  and   online   media,   brands   are   now   able   to   use   new   methods   of   communication.   Website   banners,   pop-­‐ups,   viral   videos   on   social   media,   fan   pages   etc.   are   only   some   of   the   infinite   options   a   company   can   chose   from   for   activating   on-­‐   line   advertising.   Furthermore,   thanks   to   geo-­‐localization   and   online   behavioural   information   gathered   while   consumers   surf   on   the   Internet,   brands   are   more   and   more   able   to   deliver   an   efficient  advertisement,  tailored  precisely  for  the  target  market  it  does  address.  Thanks   to   thorough   analysis   of   the   online   behaviour   of   its   audience,   the   company   is   able   to   position  ads  on  such  websites  where  it  meets  its  target  market  with  quasi-­‐certainty.  This   is  a  wholly  new  definition  of  advertising.  (Gbadamosi,  Nwakwo,  Bathgate,  2013).     Nevertheless,   Online   banners   are   available   for   anyone   to   copy,   regardless   the   legal   regulations  and  can  be  easily  used  for  commercial  purposes  that  can  damage  the  brand.   Another  negative  side  of  online  advertising  is  the  fact  that  it  has  become  so  popular  that   people  have  started  to  ignore  or  consider  as  spam.     These  factors  taken  into  consideration,  when  doing  online  advertising  we  must  ensure   that  it  does  not  appear  too  frequently,  that  it  looks  attractive  and  compelling  and  that  it   is  published  on  websites  visited  by  our  target  market.  
  • 42.   42                                     This  analysis  shows  that  54%  of  the  UK  respondents  do  online  research  before  buying   their  product.  (Dauriz,  L.,  Remy,  N.  and  Sandri,  N.,  2014).   As  Penhaligon’s  is  a  luxury  brand  we  need  to  ensure  positive  online  content,  on  their   website,  social  media  and  via  online  banners  –  as  an  important  part  of  our  customers   will  do  online  research  about  our  brand  before  going  into  the  store.       Sales  promotions  are  actions  and  activities  set-­‐up  by  a  particular  brand  to  boost  sales   of  its  product.  There  are  two  types  of  sales  promotions:  trade  and  consumer.  The  trade   sales  promotions  can  be  discounts,  freebies,  commissions  or  any  types  of  incentives  that   are   going   to   convince   a   retailer   or   a   distributor   to   stock   more   and   push   more   of   a   particular  product,  and  thus  increase  sales  volumes.  This  technique  ensures  that  stock-­‐ outs  are  reduced  and  share  of  shelf  space  is  increased,  which  as  a  consequence  makes   the  product  more  visible  and  thus  increases  the  chances  for  a  consumer  to  be  interested   in  purchasing  it.