Parfum d'Orsay: A strategic marketing proposal

Résumé du document

The purpose of this report is to make an analysis of the luxury fragrance market and, after this said analysis, to propose some strategies to the D'Orsay rare fragrance company so that they might improve their financial and marketing performances. The use of the term 'luxury fragrance', or 'fragrance', is important, as perfume can not only be taken to relate only to women, whilst men could be said to wear cologne, but also, with relation to the D'Orsay group, to not include 'fragrances for the home' and 'eau de toilette'. . For the purposes of simplicity, therefore, ‘perfume' shall be used to refer to the luxury fragrances used by men and women. This does not include eau de toilette and home fragrances, and ‘fragrances' will be used to refer to all three luxury fragrance groups. In the first part of this report, it is possible to find an analysis of the fragrance industry in France. Key factors are taken into account, including the market size, in which sales increased by 6% in 2006, and developments, like the growth in the consumption of male perfumes by 5.9% that year.

Extraits

[...] What is the diference between Parfums d'Orsay and its competitors ? All those brands are High professional luxury brand that offers more than a bottle of perfume to their customers. But while focusing in the offer of their product, while selling the spirit, the universe of a desirable brand they don't forget nowadays challenge. By nowadays challenge we mean , taking in account the competition, the globalization, the efforts that a brand has to make to be available at any moment. [...]

[...] By the hyper-segmentation of today's markets makes it difficult to have one definite characteristic for luxury fragrances. A relatively high socio- economic position may be described as important but, as Coco Chanel, cited in Danziger (2005 p 153), said; ‘There are people who have money and people who are rich'. This is an important distinction as luxury consumers are not necessarily those who one would consider as rich, just those rich enough to purchase a non-necessary, luxury item, such as a luxury fragrance at one point in time. [...]

[...] Who are they and what are their products? You will find bellow a wide range of the competitors on this specific market. As Luxury is a niche market, it is possible to find many competitors with different strategies. The specialised brand: most of them are traditional and target specific customers. Then you will find the more common brand that want to integrate this niche market and are now creating a special range of product to target specific customers of this market. [...]

[...] French fragrance producers could be described as world leaders in the sector and have been exporting their products for years. In 2006 the French fragrance market grew by approximately (Xerfi 700 database), the strongest growing areas being eau de toilette and men perfumes, colognes, which grew by The sale for women's perfumes grew by in the same year . With an average growth of only during the past ten years, we can say that the market is mature but still growing. It has also been suggested that around 75% of men use cologne and of women use perfume. [...]

[...] Based on a comparison of the information provided and from personal observation, it could be said that general perfume products, take for example the number 1 selling Chanel no 5 at for 100ml in Prentemps at Havre Caumartin in Paris against Femme de Dandy which only sells at for 100ml, are superior products. It is acknowledged that store rents and pricing policies have an effect on this, but it should not be ignored that this may be unknown to customers and influence their perceptions of the D'Orsay brand based on price comparisons. Current situation for D'Orsay, Distribution: D'Orsay's current distribution strategy can be described as exclusive, with the exception of home fragrances, whereby only a few select stores are used to distribute the product to consumers. [...]