Strategic Marketing - The Fragrance Industry

1. Considering the Fragrance Industry as a whole, report the direction it will take over

the next five years giving reasons.

The industry of fragrance has been in the market for a very long time, it is well

recognized and the consumers are very selective, this has influenced a massive change and

enhancement in developing and coining new scents, this is for the sole purpose of trying to

quench the aggressive appetite which the customers of this market have. This has made the

industry to be the most researched market segment as every day there are new fragrances

invented. With the consideration of this market having no choice but develop further, this

assignment is going to revolve around the development that this industry is going to take over the

next five years and the direction which will take this course.

This industry has been here with us for more than a thousand years; it has been so much

research with much precise precession of a fraction of a second, every second a new fragrance is

in the process of creation. Another second another fragrance is coined, the most influencing

factor that makes all this possible is the fact that, nowadays people are very proactive in

deodorants and perfumes. From people to houses and cars, nowadays every thing is scented.

These make the developers of this subject to pace up; the main reason of this is that the more

people are4 appreciative of good scent the more the demand of fragrances arise.

The changing of the needs and trends of the world users, every one is captured by a

certain scent, hardly do three people from the same life pattern share the same scent pattern on

fragrances. This is because the human race is one unique entity having different orientation of

different taste and style. This can be observed when one is in a bus there are kind of fragrances

rarely will you find more than two people wearing the same scent, unless, if the fragrance is new

in the market and the people that are scouted are youth or teens.

Another factor that will enhance this development and the direction that this industry is

going to take will be based on the five forces, analyst states that for a company to be effective

then this factor have to be evaluated and manage effectively.

These five forces include; the sellers power, rivalry competition, buyer power, the cost of

products and counterfeit markets. These factors will be the final direction that the fragrance

industry will be entitled to; from these factors will there be an establishment if the industry

which is already established and the upcoming one will be fruitful or otherwise.

The power of the buyer mainly control the new invention in the market and also this is

the backbone of the trade for these markets segments, for without the buyer the whole process

will have to stall, buyer are the market target which this industry are reliant to, they control the

prices the invention and also the competition.

Buyers are the one that build brand from the industry, if they appreciate the product then

it will be lucrative in the market and many resources will be garnered by the industry, however,

if otherwise then the reversal is outline. This market segment are very royal to one product

although recent flooding of counterfeit is most like to affect this industry as seller are option to

make an extra buck and deceit their clients, this is also another angle that is going to influence

the direction that this industry is going to take in the next five years.

The sellers powers is also another faction that also plays roles in posing the direction that

this industry will take in five years, this is a very crucial point as they are the ones that really

dictate the direction route of the market, this is because recent there have been playing foul by

introducing to their customers counterfeit good which are resemblance of the original. This they

do in order to rake in more profit. This trend if they are not corrected in time then the direction

that this industry is headed is disastrous. The copyright action against China will really help in

constructing these factors.

Cost of product has less effect than competitive rivalry, this is because when the

customers appreciate a product they are flexible to the prices making this factor to have less

negative impact on the direction that the fragrance industry will take in the five years. However

customers that are not fully acquainted with the fragrant market always find themselves in hot

spot as manipulative sellers gives them contraband fragrances in the name of the original.

In conclusion depending on how fast that the counterfeit control is look into, and then in

the next five years this industry is bound to have massive growth. The main reason to assume

this is the fact that COTY poses are very lucrative industry which is not very exploited, even the

most advance countries have the shortage of fragrant, this make this market to have audience

even in international market. The profit that are raked in this market and the demands for more of

these commodity is said to be exceeding the production leaving many to scramble for the little

the industry provides, this has been the reason that also contrabands are easily accessing the

market because that there are less of the wanted product in the market and people are resolving

to contraband. However if this is checked then within the scope of five years this industry is

bound to flourish.

Question 2 is where you have to come out with new strategies for COTY after analyzing the

situation in COTY from the industry.

The analysis that are very disturbing in this subject that mainly concerns and evolves

around contrabands, the COTY development has been mostly let down by these attributes.

Counterfeiting all over the world plays as reap off the COTY that concerns itself with the brand

that is being counterfeited, the losses and loss of faith from the customers as the contraband

usually does not match the expectation that the customers usually perceives that the brand which

they are connected with. Once a customer notices peculiar association with the product not

knowing that it is contraband then because of the sensitivity of some of the COTY products then

they switch off to their other favorite COTY.

Some of the contraband products have bad effect and other side effect on the customer

depending on the regions and the sensitivity of their bodies, some of this have resulted to lawsuit

filed against the original industry and are later realized that the mistake was with the seller for

they had switched the original with the contraband. This however has deep implications on the

customers trust as it is dented, and this kind of lawsuits, if not performed in closed courtrooms

then the public get aware and this product is then shied away from by other customers.

The most effective analysis that would resolve this issue is the PEST analysis, in political

point of view most f the government of different countries are imposing production regulation, in

product imports in the world, this is for the sole purpose of trying to minimize and fighting

counterfeits. COTY is especially the best target for counterfeit as people are very appreciative of

this market segment. Policies and laws that will regulate counterfeits enactment will help to

mitigate contrabands which are flooding the market, and they are actually affecting the smooth

running and development of COTY, if these laws and policies are enforced then the environment

for COTY will improve, this is because people will have faith on their loved products as the

contrabands will no longer be sold.

From this attributes if the contrabands are extinct by banning as the best solution then

this, market will thrive and the best result will amount to making of more profit from the

organization that is responsible for the product manufacturing. This will also create new market

in new market and regions; the COTY will be able to invest more on this market segment adding

value to their product they manufacture and apply more precaution on the areas that need, this is

to reduce cases of litigation about default COTY.

Having in sense that fragrance market has not been exploited and the areas that has been

the demand is high than the production, then this will create room for economic opportunity for

the international market. Changing lifestyle also have affected the way people nowadays view

fragrance, it is recorded that even developing industries have less supply of fragrances and the

demand of this commodity is very high.

In conclusion it is that in the next five years we are going to experience a drastic

change in this industry, the factors that underlies this are the business scope and the how well the

industry tries and regulates China counterfeit products in the market. The most significant

agenda will be that if majority of the industries not only fragrance industries join and help

diminish this bad habit of contraband then this industry remain the most unfulfilled of them all

and is very lucrative and needs constant development which opens up new market for old and

new investors daily.

Question 3 is where you have to identify how SOT (Scents of Time) can develop its brand.

If counterfeit are fought of with an intense that reduces the limitation that they poses in

the fragrance industry, then SOT will be able to regulate and build new brands that will entice

the world in all. The SOT will have ample time and security of knowing that their product will

not be counterfeited and that they get full amount of the profit. This will not only enhance more

fragrance products in the market but will also increase the customers trust in the brands and help

them relate and appreciate the brand of their choice.

Focusing on international market, the SOT will also influence the capturing of and

maintenance of the already existing market. This shall mostly be fulfilled through PEST analysis

introduction in the system, this will generally centralize the SOT in a different angle of Social,

Economical and Technological advancement, this advancement are supposed to influence

diverse market segment capturing the young and old in this doctrines.

These analysis will mainly affect SOT and this will help in assisting of branding the

fragrances, this is in the cases where young at heart will have their own brand, the youth their

own and the old. Also gender will also be part of the SOT influence in branding as different

scents are for men and ladies, SOT will help advice on how to authenticate the proper

mechanism to use when addressing the issues of fragrant among gender. As they say time will

tell then this is how this industry will be when branding in the scope of gender.

In conclusion because brand makes the strongest product promotional marketing tool, this

applies mostly for the products which are on sale. SOT will actually be the thriving mechanism

of branding only if the counterfeit are banned completely. This will enhance the scope of SOT by

brand recognition and popularity, this is because SOT has the key for this attributes, and once

achieved then the benefits will be ripped abundantly. Using SOT as the promotional mechanism

for the brand recognition and building customers trust, this will result to very lucrative business

and the brand will be created and championed through this faction.