Marketing analysis and decision making of a product in decline - the perfume "Amazon" by Hermes

Résumé du document

You have been working for over ten years in a company as a Product Manager for a product of your choice. The product you have managed is at present declining in sales and you have been asked by your boss to examine how to revise the product in order to increase sales to it's former level. I'm working for Hermes and my product is the perfume 'Amazon'. This perfume was launched in 1974 with the objective to renovate and to widen Hermes customer's perfumes. Amazon is intended for the active young women (20 to 35 years-old).

Extraits

[...] The new "packaging" exploits contrasts, as well on the level of the colours as of the forms. The same year, the range is supplemented by a perfume spray, is presented in the same type of bottle but in frosted glass and no more in transparency. The line of Amazon is also made up of scented derivative products: - A soap rolled up in a tissue paper (100 - A deodorant (100 ml) presented in a metal spray - A "Body silk", hydrating emulsion scented without alcohol (200 ml). [...]

[...] Define the factors product managers must take into account when testing ideas The creation of Hermes does not correspond to the expectations of the market. Indeed, Hermes does not answer to the request of woman consuming, to be able to buy fresh water; Amazon remains extract, perfume spray, or toilet water. Targeting and positioning of Amazon are not in agreement; indeed, the wishes of Hermes compared to their customers targets are not retranscribed in positioning, in term of product, and communication. [...]

[...] From a consumption point of view The women do not buy their perfume according to the reputation of the brand any more. From a competition point of view Competition intensifies, with the launching of many products, each year (70 products/year). Top 5 of the brand are Chanel, Yves Saint Laurent, Dior, Lancôme and Guerlain. All these famous brands base their strategy, on association at a house of “haute couture”. Also, these famous brands adopt a common strategy: massive launching, and important budget of communication (Chanel, Lancôme). [...]

[...] Moreover, Asia is an expanding market; efforts must be related to this market. The various European markets are in constant progression of the European women and 70% of Asian have a perfume. The constraints for an international launch are linked to cultural factors, indeed people in charge in marketing while have to take into consideration the fact that something appreciated in a country can be seen as a negativism in another. Thus they will have to adapt their strategy according to the values and norms of the country they want to conquest. [...]

[...] Define the product So I'm working for Hermes and my product is the perfume “Amazon”. So this perfume was launched in 1974 with the objective to renovate and to widen the Hermes customer's Perfumes. It is a female perfume, positioned for young people, expenses and dynamics. Amazon is intended to the active young women (20 to 35 years-old) pertaining to rather high CSP. As for all its products, Hermes defines the character of the woman who carries this perfume. She is independent, with an affirmed personality, all in contrast: tender and impetuous, like the advertisement shows her, but so mischievous, attractive and intuitive. [...]