Essays on The Niche Fragrance Sector Market Case Study

Download full paperFile format: .doc, available for editing

The paper "The Niche Fragrance Sector Market" is an outstanding example of a marketing case study. The market is expected to display gradual and consistent growth in the next five years, following slight declines in value during 2015 and 2016. Unisex products experienced growth while gender- specialised products declined. The niche fragrance sector remains strong and growth is expected on the basis of increasing interest in fine fragrance products and the population of young women. Innovative extraction processes resulting in longer-lasting fragrances, as well as high-quality fragrance ingredients, have been the strongest success factors.

Regarding marketing channels, surroundings inside stores remains a strong influencer, followed by online channels offering reputable products at bargain prices, which has seen growth especially in male consumers (Mintel, 2016).   Competition Increasing strength in the niche and fine fragrance sector appears to have fuelled mergers and acquisitions activity, with both L’ Oreal and Louis Vuitton acquiring smaller companies. Similarly, Coty acquired P & G Fragrances, making it a leader in the UK fragrance market by market share; however, the company experienced a decline in value of sales during 2014 and 2015, driven mostly by a lack of new product launch activity and underperformance by historical new products (Mintel, 2016). The Fragrance Shop, the largest independent fragrance retailer in the UK, reported consistent growth throughout the last five years; the main drivers of sales growth have been new products by international brands, like Hugo Boss and Gucci, as well as an atomiser tool allowing customers to carry fragrance for on the move use (Mintel, 2017) Consumers Out of all beauty products in the retail sector, fragrance products were the only category were consumers were willing to spend more on prestige products (Mintel, 2017).

Research shows that there have been important changes in buyer behaviour, namely increasing interest in longer-lasting fragrances and stronger concentrations. This suggests that incorporating boosters and/ or primers in the ingredients of new products would increase their chances of success. Niche and exclusive fragrances have also been preferred, with exclusivity coming from availability being limited in specific time periods and/ or sales locations and/ or ingredient scents (Mintel, 2016) Consumers prefer prestige fragrances at discounted prices, with the high street being the most popular purchase venue, supporting the finding that impulse is the highest purchase influencer.

Celebrity fragrances have declined in popularity because their trust and long-lasting ability scores have declined. The consumers are traditionally segmented by age group in the fragrance market, with younger 16- 24-year-olds being targeted most, although the proportion of younger people is declining whilst older age groups are not. Men over 55 years have been found to be the lowest buyers of fragrances and they do not identify with advertisements usually portraying younger actors, suggesting a possible opportunity for new product development (Mintel, 2016) Females are the highest buyers, while young men increased their online fragrance purchase activity, with most buying activity occurring in both quarter 1 and quarter 4, around valentine and Christmas.

Social media platforms, like Snapchat and Instagram, have proven popular with fragrance buyers and have increased consumer interaction and engagement.

References

Bibliographies

Mintel. 2016. ‘Fragrances-UK-August 2016’. Available at:

http://academic.mintel.com.ezproxy.kingston.ac.uk/display/748733/#

Mintel. 2017. ‘Fragrances-UK-August 2016’. Available at: http://academic.mintel.com.ezproxy.kingston.ac.uk/display/782464/ (accessed 01 March 2017)

Bhasin, H. 2016, Gucci marketing mix. Available at: http://www.marketing91.com/marketing-mix-of-gucci/ [Accessed 11 March 2017]

Ivancova, A. 2013, International marketing strategies in the luxury cosmetic industry, BI Norwegian Business School.

Morgan, B. (n. d) Marketing in the fragrance industry. Available at: http://www.ivoryresearch.com/writers/ben-morgan-ivory-research-writer/ [Accessed 11 March 2017]

Palade, A 2011,Analysis of marketing mix on cosmetics products, Annals of the University of Petrosani, Economics, 11(4), 233-244.

Smith, P and Chaffey, D.2005, E-Marketing excellence. 2nd edition. Oxford, England: Elsevier Butterworth-Heinemann

Download full paperFile format: .doc, available for editing
Contact Us