Description
This is presentation about marketing of Luxury Perfumes
Content
? Introduction to Luxury Perfumes
? Global market ? Indian Market
? Market Leaders and competitors
? Marketing strategy ? Case study- CK ? Future of the industry ? Reality check
2
Introduction…
Luxury is associated with words like pleasure, expensive and beautiful. A luxury perfume is ? A Unique fragrance ? Highly Priced ? Extensive marketing ? Exclusive Packaging ? Cater to upper middle and upper class. ? A intimate possession
3
…Introduction
? The God’s gift to all creatures “Pheromones” ? The Godly perfume
? History of perfume
? Early Use by Egyptians ? Use of Attar
In 1870, Queen Elizabeth of Hungary commanded the first modern perfume which was made of odorous oils mixed in an alcohol suspension and later was known as Hungarian Water
4
…Introduction
What Is Perfume Made From? ? Perfume is made from about 78% to 95% of specially denatured ethyl alcohol and a remainder of essential oils ? Perfume is the costliest form of fragrance with 22% of essential oils. (Our target segment) ? Eau de Parfum (EDP), comes next with between 15 and 22% essential oils. ? That's followed by Eau de Toilette (EDT) with 8 to 15% oils. ? The weaker Eau de Cologne has just 4% essential oils.
5
…Introduction
How perfumes are made?
? Collection
? Extraction
? Blending
? Aging
? Quality control
6
Global Market Share
12% 13%
4%
25%
Dior
Gucci Bvlgari Hugo Armani Versace
21%
25%
7
8
Indian Market trends…
? In India the luxury perfume market is about INR 500
? ? ?
?
? ?
crores and growing at the rate of 125% per year There are more than 123,000 HNWI in India as per the Capgemini report 2007-08. Out of 250 million Indian middle class population only 30 million uses perfumes so there is tremendous upwards potential. 60% market share is dominated by females and rest by male All famous global luxury perfumes are available in India. They are available in price bracket of 1500-20000 Like Gucci, Giorgio Armani, Hugo Tommy Hilfiger.
9
Overall Indian Fragrance Market
•Overall fragrance market in India is INR 2713 Crores. •The Indian fragrances market grew by 5.3% in 2007 to reach a value of $687 million. •In 2012, the market is forecast to have a value of $869 million, an increase of 26.5% since 2007.
10
Market Leaders…
? Christian Dior is one of the world’s largest and most
famous fashion companies. The company allures both men and women with its luxurious and stylish fragrance drawing remarkably sexual attention. ? Chanel is a Parisian fashion house founded in 1910’s by Coco Chanel. The company runs a number of businesses in fashions including fragrance and colognes. The upscale Chanel perfume boosts prominent charms in you. ? Hugo Boss is a German company founded by Hugo Ferdinand Boss. Hugo has presented its slogan ‘HUGO is trend, HUGO is different, HUGO is urban’. You have no limits on using Hugo, be neat, or cheeky, or whatever you are with Hugo!
11
…Market Leaders
? Gucci is an Italian fashion company established
by Guccio Gucci in 1906. The brand is recognized as one of the most prestigious in the world. Indulge yourself in the sense of high-class crowd, put yourself in to the scent of Gucci. ? Versace is a fascinating designer fashion of elegant goods, fragrances, accessories and lifestyle for both men and women. The brand is undoubtedly well-known among the world’s celebrities.
12
How to market perfumes?
? Customer can’t feel the product through
?
?
? ? ?
advertisement. So celebrities like Nicole Kidman, Kate Moss David& Victoria Beckham endorse it . Selling Perfumes at high price is like selling lifestyle and experience, not scent Kidman charged $17 million for channel No5. Cost of marketing a new brand is about $100 million. Special attention on packaging
13
Future of Luxury Perfumes
? Customization
? Celebrity market to grow
? Sex and sensuality
The reality is that while beauty standards come and go, people want to look beautiful and attractive.
14
Marketing Strategy- Calvin Klein
CK’s marketing strategy by promoting a different image CK is trying to capitalize on youth. ? The CK user’s image.
? Anti-tradition.
? Trendy. ? Radical & alternative. ? Offensive.
15
….Calvin Klein
How CK capture’s this image in its branding?
? High cost, luxury brand.
? Aggressive branding.
? Selective distribution. ? CK’s famous product line:
1 )Obsession for men 2)CK summer one
16
How to choose perfumes?
? Choose a make and name.
? Choose price
? Choose celebrity
17
Where to buy?
? Dedicated Brand store.
? Online
? Department store.
18
Interesting Facts
? Perfumes last more on oily skin.
? Men prefer perfumes with spicy, citrus, woodsy
aroma.
? Women prefers floral, fruity and oriental aromas.
19
20
Reality Check
? Perfume is the poorest performing sector in
? ? ?
?
?
cosmetics market globally. But its growing fast in emerging economies. Every year more than 300 brands comes into market. Leading to reducing consumer loyalty( Brand Slut). Any fragrance has shelf life of only 3 years. A luxury perfume bottle is sold in every 3 seconds.
21
Grey Market
? Grey market contributes about 10% of total
market
? Sells at 1/10th of the cost of original perfumes. ? China is the leader in counterfeit perfumes
market.
? The funds from this grey market were used for the
9/11 attacks.
22
doc_106568048.pptx
This is presentation about marketing of Luxury Perfumes
Content
? Introduction to Luxury Perfumes
? Global market ? Indian Market
? Market Leaders and competitors
? Marketing strategy ? Case study- CK ? Future of the industry ? Reality check
2
Introduction…
Luxury is associated with words like pleasure, expensive and beautiful. A luxury perfume is ? A Unique fragrance ? Highly Priced ? Extensive marketing ? Exclusive Packaging ? Cater to upper middle and upper class. ? A intimate possession
3
…Introduction
? The God’s gift to all creatures “Pheromones” ? The Godly perfume
? History of perfume
? Early Use by Egyptians ? Use of Attar
In 1870, Queen Elizabeth of Hungary commanded the first modern perfume which was made of odorous oils mixed in an alcohol suspension and later was known as Hungarian Water
4
…Introduction
What Is Perfume Made From? ? Perfume is made from about 78% to 95% of specially denatured ethyl alcohol and a remainder of essential oils ? Perfume is the costliest form of fragrance with 22% of essential oils. (Our target segment) ? Eau de Parfum (EDP), comes next with between 15 and 22% essential oils. ? That's followed by Eau de Toilette (EDT) with 8 to 15% oils. ? The weaker Eau de Cologne has just 4% essential oils.
5
…Introduction
How perfumes are made?
? Collection
? Extraction
? Blending
? Aging
? Quality control
6
Global Market Share
12% 13%
4%
25%
Dior
Gucci Bvlgari Hugo Armani Versace
21%
25%
7
8
Indian Market trends…
? In India the luxury perfume market is about INR 500
? ? ?
?
? ?
crores and growing at the rate of 125% per year There are more than 123,000 HNWI in India as per the Capgemini report 2007-08. Out of 250 million Indian middle class population only 30 million uses perfumes so there is tremendous upwards potential. 60% market share is dominated by females and rest by male All famous global luxury perfumes are available in India. They are available in price bracket of 1500-20000 Like Gucci, Giorgio Armani, Hugo Tommy Hilfiger.
9
Overall Indian Fragrance Market
•Overall fragrance market in India is INR 2713 Crores. •The Indian fragrances market grew by 5.3% in 2007 to reach a value of $687 million. •In 2012, the market is forecast to have a value of $869 million, an increase of 26.5% since 2007.
10
Market Leaders…
? Christian Dior is one of the world’s largest and most
famous fashion companies. The company allures both men and women with its luxurious and stylish fragrance drawing remarkably sexual attention. ? Chanel is a Parisian fashion house founded in 1910’s by Coco Chanel. The company runs a number of businesses in fashions including fragrance and colognes. The upscale Chanel perfume boosts prominent charms in you. ? Hugo Boss is a German company founded by Hugo Ferdinand Boss. Hugo has presented its slogan ‘HUGO is trend, HUGO is different, HUGO is urban’. You have no limits on using Hugo, be neat, or cheeky, or whatever you are with Hugo!
11
…Market Leaders
? Gucci is an Italian fashion company established
by Guccio Gucci in 1906. The brand is recognized as one of the most prestigious in the world. Indulge yourself in the sense of high-class crowd, put yourself in to the scent of Gucci. ? Versace is a fascinating designer fashion of elegant goods, fragrances, accessories and lifestyle for both men and women. The brand is undoubtedly well-known among the world’s celebrities.
12
How to market perfumes?
? Customer can’t feel the product through
?
?
? ? ?
advertisement. So celebrities like Nicole Kidman, Kate Moss David& Victoria Beckham endorse it . Selling Perfumes at high price is like selling lifestyle and experience, not scent Kidman charged $17 million for channel No5. Cost of marketing a new brand is about $100 million. Special attention on packaging
13
Future of Luxury Perfumes
? Customization
? Celebrity market to grow
? Sex and sensuality
The reality is that while beauty standards come and go, people want to look beautiful and attractive.
14
Marketing Strategy- Calvin Klein
CK’s marketing strategy by promoting a different image CK is trying to capitalize on youth. ? The CK user’s image.
? Anti-tradition.
? Trendy. ? Radical & alternative. ? Offensive.
15
….Calvin Klein
How CK capture’s this image in its branding?
? High cost, luxury brand.
? Aggressive branding.
? Selective distribution. ? CK’s famous product line:
1 )Obsession for men 2)CK summer one
16
How to choose perfumes?
? Choose a make and name.
? Choose price
? Choose celebrity
17
Where to buy?
? Dedicated Brand store.
? Online
? Department store.
18
Interesting Facts
? Perfumes last more on oily skin.
? Men prefer perfumes with spicy, citrus, woodsy
aroma.
? Women prefers floral, fruity and oriental aromas.
19
20
Reality Check
? Perfume is the poorest performing sector in
? ? ?
?
?
cosmetics market globally. But its growing fast in emerging economies. Every year more than 300 brands comes into market. Leading to reducing consumer loyalty( Brand Slut). Any fragrance has shelf life of only 3 years. A luxury perfume bottle is sold in every 3 seconds.
21
Grey Market
? Grey market contributes about 10% of total
market
? Sells at 1/10th of the cost of original perfumes. ? China is the leader in counterfeit perfumes
market.
? The funds from this grey market were used for the
9/11 attacks.
22
doc_106568048.pptx