Welcome!


Welcome!

We are four students of Skema business School, and in the framework of our Strategic Brand Management class we decided to create a blog about the market of fragrances.

Enjoy your read!

mardi 18 novembre 2014

Brand Management on the perfumes market

On the global market, not all the companies have a brand. Branding is a choice, not something that you have to do to be in business. Nevertheless, on the perfumes market, I cannot think of any company that does not have a brand. Indeed, on this very competitive market flooded with numerous brands and products, branding is definitely a way to differenciate from the competitors and add perceived value to the products sold. In this article, I am offering you to study different ways to develop and manage the brand through the personnal identities. 

Personnal identities

• Founders
A founder or a CEO with a strong personality and image is a huge asset for a brand. Indeed, it shows that behind the brand, they are people and that the brand is driven by people. It helps consumers to understand better the values of the brand : the character, motivations and actions of the founder/CEO, when known by the public, have a huge impact on the perception of the company and the brand. 

In the fragrance world, a great example of a founder that made a difference is Gabrielle Chanel. Indeed, Coco was a very charismatic person, known for her determination and ambition. She changed the face of the fashion world by imposing black as the colour of elegance and by removing corset to the feminine silhouette.
In a 20’s fragrances world that glorified the single flower fragrances, she created with Ernst Beaux an abstract, mysterious perfume : a bouquet with over 80 different scents that made it impossible to recognize one scent. Not only she participated to the creation of the scent but she also was the base of the creation of a new brand inside the Chanel brand, the N°5 brand.
Indeed the name of the product, an indentification number, is closely linked to Gabrielle decision and believes (it was her lucky number). The pure and timeless flacon is also linked to her work : the simplification and the use of minimal lines.
Chanel N°5 was even advertised by Coco Chanel herself in her suit at the Ritz : the personnage of Gabrielle was the foundation of the brand and gives a clear message about values and perception of Chanel.


• Endorsement
Celebrity endorsement is widely used in the fragrances sector. Stars are extremely important and valuable to perfume brands, even though it is an expensive choice. Indeed those personalities who usually come from the fashion, movie or music sectors make the brand’s message stand out among the clutter of advertising from competitiors. They create brand awareness, contribute to sustaining a brand’s aura, generate extensive PR leverage and are a great way to attract the consumer’s attention. 
There is an endless list of examples of celebrity endorsements in the perfume industry but I will just quote “La vie est belle” of Lancôme with the endorsement of Julia Roberts.
Indeed, this endorsement was a real success because both the brand and Julia Roberts were compatible and credible : Lancôme’s DNA is femininity, emotion, joie-de-vivre and the actress is well known for her infectious smile, her coolness and sensuality.


Nevertheless, celebrities endorsements can face multiple issues leading to a failure of the campaign. We could talk of a set of “rules” that need to be respected in order for the campaign to be a success : the celebrity must have a global appeal and must be credible for the sector he or she is advertising. Morevoer, the celebrity’s personality must match the brand’s DNA : not only the two have to be compatible but the collaboration has to be relevant.

When these set of « rules » are not respected, the advertising campaign is usally condemned to fail. An example of a celebrity endorsement that was criticized a lot was the N°5 perfume campaign featuring Brad Pitt. Chanel decided to use a man to describe the ideal woman and her perfume : the client would then want to wear the perfume of the ideal woman depicted by Brad Pitt. But this strategy did not pay off because the consumers did not understand the add, they did not see the relevance of the actor in the N°5 story. The campaign lost the feminine, sophisticated and elegant appeal of the N°5 brand. Moreover, some consumers thought a new perfume was launched : N°5 for men.. The result were a campaign that everyone talked about but not in good terms !




Article posted by Marie Lou Van der Houwen


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