New Marketing Concept to Introduce A Fragrance Into the Boss Black Bottle House Essay Example

the fact that people purchased premium fragrances as gifts rather than for personal use. P;G Prestige Beaute effectively targeted this gift market with their successful campaign. They introduced the D;G anthology in 2009, which experienced rapid growth and captured a significant portion of the market. The D;G anthology was offered in five 20ml bottles, making it a popular gift option and one of the top-selling fragrances.

The key finding of this market analysis is that the fragrance market has transitioned from being primarily for personal use to being focused on gift-giving. BOSS needs to consider this shift when planning new campaigns. In terms of brand positioning, BOSS is more than just fragrances. When people think of BOSS, they typically think of other products. Therefore, the fashion line of BOSS will be emphasized first, followed by the fragrances.

Hugo BOSS, a global leader in the premium fashion segment, has consistently strengthened its market position in recent years (Hugo BOSS, 2008). It is also known as a premium brand according to Euromitor (2011), who identifies BOSS as one of the premium brands of P;G. While this report focuses on the fragrance market, it is important to recognize that Hugo BOSS offers more than just fragrances, including clothing, sunglasses, belts, bags, wallets, watches, etc.

Belonging to their product range are products classified into various lines including BOSS Black, BOSS Selection, BOSS Orange, BOSS Green, Hugo, and BOSS Kidswear. While Hugo BOSS primarily focuses on men, they also target women with their Black, Orange, and Hugo lines. Each BOSS line is aimed at a different target audience but all convey the same message: BOSS represents Confidence, Power, and Masculinity. Furthermore, BOSS fragrance

is a part of the BOSS collection, as discussed in the previous chapter.

The fragrances offered by Hugo BOSS are divided into different product lines, such as BOSS Black, BOSS Orange, and Hugo. BOSS Black focuses on elegant business fashion, while BOSS Orange specializes in high-end casual wear. The Hugo brand represents a progressive and avant-garde style. These positioning strategies apply not only to the clothing lines but also to the fragrance assortment. The bottles of the fragrances are designed to reflect the desired image. Hugo BOSS aims to convey confidence, power, and masculinity as its core message.

Contrary to expectations, the fragrances in the fashion lines do not have similar prices. However, all fragrance lines are priced similarly. The competition in both men's and women's fragrance markets in Europe is equally intense. When buying a new perfume, we can confidently say that there is a wide range of options and an abundant supply of available fragrances.

This paper examines the top competitors of Hugo BOSS in the premium fragrance sector for men and explores the wide range of fragrances available in the market. In 2008, Armani dominated the European market with a 10% market share for premium fragrances targeted at men. BOSS closely trailed behind with an estimated market share of around 10.1%.

According to Ipsos (2007), Dior held the third position in the market with a market share of 6.8%, while Chanel ranked fourth with a slightly lower market share of 6.1%. Additionally, Armani, an Italian brand, is renowned for its core values that include quality, sophistication, and style.

Armani's main objective is to promote universal timeless values. Their collection of fragrances for men includes Acqua Di Gio,

Armani Code, Armani Code Sport, Attitude, Armani Mania, Emporio Armani Diamonds, and Emporio Armani He. In terms of advertising, Armani is well-known for its impactful celebrity endorsements. Previous Armani advertisements have featured famous personalities like tennis legend Rafael Nadal, soccer icons David Beckham and Cristiano Ronaldo, and acclaimed actors Christian Bale and Josh Hartnett (www.Armani).

The label Dior is known for its glamour, elegance, prestige, and seduction. It is also associated with trendy, bright, flashy, colorful, and nouveau riche expressions. Dior offers a range of men's fragrances including Dior Homme, Eau Savage, Fahrenheit, Higher Energy, Dune pour homme, and Jules.

According to the company’s webpage, Dior's men's fragrances reflect the modern elegance of their men's fashions, ranging from stylish and sophisticated to relaxed and sporty chic (www.Dior.com). Dior perfumes are known for their bold fragrances that break away from tradition. Unlike Armani, Dior exclusively chose American actor Jude Law to represent their latest fragrance, Dior Homme, and French actor Alain Delon for Eau Savage. Other fragrances by Dior do not have celebrity endorsements.

Chanel is often associated with core values of classic, elegance, timelessness, and exclusivity. Some of the fragrance names in Chanel's portfolio include Bleu de Chanel, Allure Homme, Allure Homme Sport, Allure Homme Edition Blanche, Pour Monsieur, Antaeus, Egoiste, and Platinum Egoiste. Unlike Armani and Dior, Chanel provides clear descriptions of the target audience for each fragrance on its website. For example, Egoiste is described as an invigorating scent for the self-assured man, Platinum Egoiste is a modern, masculine fragrance for the passionate and romantic man, and Pour Monsieur is the understated fragrance for today's civilized man (www.Chanel.com).

This information can potentially assist customers who are undecided

on which scent best matches their own personality in their purchasing decision. Unlike other competing brands, Chanel does not rely on celebrities to advertise their men's fragrances. Only Alain Delon, a French actor, was chosen as the face of Eau Savage, while Chanel did not use celebrity endorsements for their other fragrances. It is also important to consider the main competing fragrances of Hugo BOSS in the German market, as Germany serves as a test market. In 2010, the fragrance with the highest market share in Germany (which was 2.5%) was Joop! Freigeist.

The fragrance called 'Freigeist' is named after its meaning, 'Free spirit'. It combines fresh fougere scents, featuring gin notes in the top, jasmine in the middle, and leather and mahogany in the base. Joop's target audience encompasses self-assured individuals, regardless of gender, who possess a unique fashion sense, personality, and allure. The brand represents a contemporary lifestyle, indulgence, and the fusion of power and emotion (Joop).

According to Euromonitor International (2011), the fragrance 'Joop! Freigeist' had the highest market share of 2.3% in Germany in 2010, closely followed by '1 Million' by Paco Rabanne with a market share of 2%. BOSS Bottled ranked third with a market share of 2%, while Allure Homme Sport held the fourth place with a market share of 1.9%. In Procter & Gamble's perspective, retailers are considered the direct customer for fragrance sales.

To comprehend the varying interests and requirements of customers within Procter ; Gamble, it is beneficial to categorize them into two distinct groups: intrinsic homogeneous and extrinsic heterogeneous clusters. This study suggests the following clusters: beauty specialists retailers such as Douglas, and drug stores such as...

DM, supermarkets

like Edeka, and department stores like Edeka all sell a variety of products.

Both Karstadt and airport stores such as Heinemann Duty Free, as well as online retailers, are included in the list.

www.parfumstore.de. Procter ; Gamble's primary focus is on beauty specialist retailers as they made up 53% of sales in 2010 (Fragrances in Germany, Euromonitor P&G 2011). Tischler, in particular, is already the largest customer for Procter & Gamble's prestige products. Beauty specialist retailers are receptive to impactful promotional activities, which help build brand awareness and image, even if the brand is not purchased from that specific retailer.

According to a study by Ipsos in 2007, 49% of perfumes in Germany are purchased by men for themselves. Another 30% are bought by partners, while 16% are bought by other women like mothers or friends. In terms of decision making, men themselves choose 57% of perfumes, partners choose 25%, and other women choose 13%. These three groups together make up a total of 95% of men's fragrance sales. These numbers indicate that solely targeting men in a campaign is not enough. The campaign should primarily focus on men but also have a special approach to women since they play a significant role in choosing fragrances, making up for 38% of the most frequently used scents. Additionally, the influence of partners on men's scent choices steadily increases until the age group between 50-59.

According to Ipsos' 2007 study, the primary demographic for perfumes is consumers aged 20-29 years, followed closely by those in the 30-39 age group. The research found that within these age groups, approximately 84.1% and 80.4% of individuals respectively use fragrances. Additionally, around 68% of this

particular demographic utilize perfumes.

According to Ipsos (2007), the majority of total bottle possessors are regular users, accounting for 64% of the total. Regular users also have the highest mean usage per week. The high usage and widespread use of different perfumes among these age groups can be attributed to the demands of their work and social life.

Modern men in various age groups wear perfumes both during the day and in the evening. This is done to maintain a well-groomed appearance at work and to enhance their appeal while dating. The values of today's men have significantly evolved compared to previous generations. They prioritize sophistication, grooming, independence, and being family-oriented.

Tischler, a renowned perfumery chain, serves as one of the primary distribution channels for these fragrances. Despite being Procter ; Gamble Prestige's largest customer, BOSS Black's market share at Tischler falls below the national average. This suggests that there is potential for improvement and growth within this specific market segment.

Active Co-Creation has the potential to increase Tischler's commitment to the new BOSS fragrance and improve satisfaction (Prahalad & Ramaswamy, 2004). In the following launch activities, special attention will be given to meeting Tischler's needs in order to enhance Procter ; Gamble's relationship with its largest prestigious customer, as well as increase the value and market share of the BOSS Bottle house. A key differentiating factor for Tischler is its focus on providing excellent service and high quality products. Knowledgeable staff members offer potential customers additional information, setting the perfumery apart from its more affordable competitors. Conversely, other distribution channels such as online retailers or airport stores prioritize price and promotion with purchase, limiting opportunities for differentiation and

building lasting relationships. These strategies will also fail to enhance the image and perceived value of a newly introduced perfume.

The proposal focuses on highlighting perfumeries, particularly Tischler, as a better alternative to supermarkets and drugstores. These alternatives are not perceived as knowledgeable consultants or premium retailers. BOSS Bottled, the fragrance, is advertised through various media channels, both online and offline. Canadian actor Ryan Reynolds is the main celebrity endorser who represents the target group of successful young men. Since 2010, he has appeared in print and TV ads for BOSS Bottled and BOSS Bottled Night. The print ads showcased Reynolds in different settings that matched the respective scents. One had him in a business outfit with a bright background for BOSS Bottled, while another showed him in a more casual dress in a dark setting to represent BOSS Bottled Night. These ads were featured in men's lifestyle magazines and outdoor billboards but are now less frequently seen.

The TV and cinema advertisements for BOSS Bottled and BOSS Bottled Night are set in the same apartment, but at different times of the day. BOSS Bottled takes place in the early morning before work, while BOSS Bottled Night shows the protagonist returning home with a beautiful woman at night, which symbolizes the alluring fragrance of the perfume. The online advertisement for BOSS Bottled is exclusively found under the Hugo BOSS umbrella, with no separate homepage for the brand. Instead, there are only subpages on www.BOSS-fragrances.co.uk. (BOSS fragrances, 2011).

There has been a lack of attention given to social media channels like Facebook and Twitter for BOSS Bottled. Officially, there is no Facebook or Twitter page dedicated to BOSS Bottled,

although an unofficial Facebook page with over 5,000 likes exists. However, this unofficial page has very limited content. On Facebook, there is a larger group called HUGO BOSS with approximately 815,000 likes, but it does not specifically mention anything about BOSS Bottled. The main advertising method for BOSS Bottled is through retailers' brochures like Galeria Kaufhof or Douglas which feature their product range; these brochures do not include advertisements with Ryan Reynolds. Based on our analysis findings, we propose two separate strategic goals: firstly, successfully launching the new BOSS Bottled fragrance in the German market and establishing a consumer relationship.

The second goal is to strengthen the existing relationship between Procter & Gamble and Tischler through various launch activities. The successful execution of our proposed fragrance depends on incorporating the new perfume into the existing BOSS Bottled Product line. Thus, we have developed a fragrance that caters to the current target audience and meets their needs while also providing a new occasion for consumption. By introducing the new fragrance, Procter & Gamble aims to increase sales of the new variant and raise awareness and revenue for the two existing fragrances in the bottle house.

In order to have a successful market implementation, it is essential to quickly distribute our product and create strong awareness among the target audience. These two factors are crucial for achieving high purchase rates. Our goal is to expand our market share from 0.5% to 0.7% of the BOSS Bottled brand in the fragrance retail market as a whole.

In the proposed media strategy, the goal is to generate awareness for an upcoming product launch before the launch date. The final product

presentation will be kept secret until the launch. The campaign aims to create a 30% awareness for the Bottled product line and a 20% awareness for the BOSS bottled refresh within the target group by the end of 2012. Additionally, the goal is to establish a new community that will facilitate ongoing interaction between the brand and consumers. The success of this community will be measured by aiming for 50,000 men to subscribe to the BOSS bottled community.

The main objective of all launch activities is to establish a dedicated, profitable, and long-term relationship with potential consumers. Within one year after the launch, we aim for a retention rate of 25% for the BOSS Refresh. Our primary focus will be on successfully launching the new fragrance at Tischler, which is the largest and most important customer for Procter & Gamble. The launch activation program outlined below will also prioritize maintaining and improving the existing relationship between Tischler and Procter & Gamble. The BOSS Bottled House, a new fragrance, combines two previously released fragrances - BOSS Bottled (launched in 1998) and BOSS Bottled Night (launched in 2009).

To introduce a third fragrance that complements the BOSS Black Day and Night range, we made the decision to develop a completely new scent for the BOSS Bottled House. We believe that the existing classic fragrances in the BOSS collection do not perfectly align with the combination of BOSS Day and Night. The most important characteristic of this new fragrance is its compatibility with the Success identity of both BOSS Black Day and Night. Despite the distinct differences in scent between the two existing BOSS Bottled fragrances, they are both aimed

at dynamic and ambitious men who are successful and confident in their desires. While BOSS Day enhances confidence and self-assertiveness during the day, particularly in a professional setting, BOSS Night imbues the wearer with added confidence, making them feel even more irresistible and seductive at night. Considering these distinct settings of day and night and their strong and dominant scent elements, the idea to create a more casual and subtle fragrance was sparked.

This fragrance is suitable for successful businessmen who want to refresh themselves after a tough working day or week. It can be used as a light fragrance during leisure time, after work, or on the weekend. The name chosen for this fragrance is "BOSS Refresh" because it effectively represents its purpose of rejuvenation. The scent of the perfume is masculine and fresh, with top notes of peppermint and orange blossom. BOSS Refresh is a compelling fragrance that captures the vitality of nature, combining scents of ocean air, peppermint, coriander, cedar, moss, orange blossom, musk, and amber. It is a contemporary fragrance that is perfect for daytime wear.

The flacon of BOSS Refresh will have the same shape as BOSS Day and Night to show its complementary nature. However, instead of being transparent or black like the other two, the flacon and package of BOSS Refresh will be polished and quicksilver-colored. The fragrance will be available in 30, 50, and 100 ml sizes, and can be purchased individually or as part of a bundle package with the other two fragrances, all of which come in a 30 ml size. We will maintain the current positioning and target group of the BOSS brand, focusing on the

same types of men in order to maintain consistency with BOSS Day and Night. However, we will emphasize the different occasions and situations that each fragrance is intended for. BOSS Day is primarily used by successful businessmen in their professional lives, while BOSS Night is used by the same target group during evening dinners or private nights out.

The unique selling proposition of BOSS Refresh is that it should be used during leisure time, contrasting with the usage of BOSS Day and Night. To ensure integration and coherence within the BOSS Bottled House, it is recommended to keep Ryan Reynolds as the celebrity endorser for all three products. In the advertisement, Reynolds should be depicted in three different settings - day, night, and leisure time - representing the three fragrances. This aims to foster customer identification with Reynolds and promote the idea that they too can use all three fragrances regularly. The advertising should create a carefree and easy-going atmosphere, such as showing Reynolds sitting in a cabriolet on a highway or standing on a sailing boat with the sun shining, emphasizing the casual and worry-free ambiance of leisure time.In order to achieve the strategic objectives of launching the BOSS Refresh fragrance, increasing sales of BOSS Night and BOSS Bottled, and enhancing the partnership with Tischler, a comprehensive marketing plan will be implemented. This plan will focus on generating awareness for the products before, during, and after the launch of BOSS Refresh, utilizing both online and offline platforms. Please refer to Appendix 4 for the detailed timeline outlining these integrated marketing efforts.

The focus of the prelaunch activities is on the current products and the upcoming launch,

while keeping the new product's name and features a secret. To enhance overall sales of the BOSS Bottled portfolio and establish closer relationships with BOSS Bottled fragrance consumers, a new website called the BOSS Community will be created. The key feature of this website is its exclusivity, as only owners of BOSS Bottled fragrances can enter the user interface. To ensure that the actual consumer and not just the buyer can access the BOSS Community, a QR code for smartphone users and an alphanumeric code for PC users are included in the packaging of the fragrances starting from March 2012.

These codes are crucial for the community and are only valid for one registration. People who do not own the codes will only see a QR code on the package, which will redirect them to the community's landing page. The community provides a platform for users to share their favorite spots for different activities in their city by linking them to the corresponding fragrance on a city map. These spots can range from a restaurant for business lunches, tagged with BOSS Bottled Day, to a night club for BOSS Bottled Night, or a day spa for BOSS Bottled Refresh. Users can easily tag these spots on the go using their smartphones' geolocation feature or using a regular PC or laptop when at home. Additionally, they can write reviews about these places, which will be evaluated by other users on the website.

By March 2012, the community will be established, providing early access privileges to City Ambassadors personally selected by P;G. These ambassadors can be marketing agency employees, well-known jetsetters, or VIPs who meet the target group's requirements

and have extensive knowledge of various locations in their respective cities. The ambassadors will contribute content to the page to prevent it from appearing empty on the release date. Before the launch, all other visitors to the site will see a countdown until June 1, 2012, the release date of the new fragrance at Tischler and the opening of the community. Additionally, a demo tour will showcase the available features for those who sign up. To encourage early visitors to engage with the page, they will have the option to receive a reminder email shortly before the release date. To generate further anticipation for the launch of this undisclosed product, we recommend P&G utilize HUGO BOSS' existing Facebook page and Twitter channel, as well as include links on the BOSS-fragrances website to reach a broader audience already interested in the brand.

To intensify the advertisement for both existing fragrances before the launch, we suggest using Ryan Reynolds as the main brand endorser and expanding his presence to all three fragrances. Our goal is to educate shoppers about BOSS Bottled fragrances, emphasizing that one man can wear different perfumes for different occasions, while also building a connection to the BOSS Bottled portfolio, which offers scents for every possible scenario. To achieve this, one month prior to the launch, we will increase advertising in men and women's magazines using the current print ads. Additionally, we will include a simple statement in the ads saying "The new BOSS fragrance – coming this June" along with a link and QR code. This strategy will generate further awareness for the existing fragrances and contribute to the excitement surrounding the upcoming fragrance.

Advertising

in women magazines is crucial because research shows that 38% of perfume purchases are made by either a man's partner or another woman connected to him. Therefore, Ryan Reynolds is an ideal endorser since men aspire to be like him and women desire to be with him. While it may not be feasible for most people, at least their partners can smell like him. This can potentially lead to emotional commitment, which may ultimately develop into strong loyalty towards the brand (Johnson, Herrmann & Huber, 2006).

Furthermore, in addition to the countdown featured on our website and the advertisement promoting the launch, our goal is to generate awareness by expanding and enhancing the existing partnership between P;G and Tischler. Three weeks prior to the release date, we plan to place a red curtain in front of a specific shelf with a clock positioned atop it, which will symbolize the remaining time until June 1st, 2012. The curtain will be inscribed with the text "The new BOSS fragrance - coming soon". Through this in-store display, our aim is to capture the attention of customers who are already shopping at Tischler, ultimately fostering awareness and piquing their curiosity.

Additionally, all other in-store ads at Tischler, such as posters, will include the website link in both written form and as a QR code. This strategy aims to attract both shoppers and consumers to the site. Furthermore, we plan to make a major announcement in the May issue of the monthly brochure, which is sent to Tischler's loyalty program customers and is also available in stores. As part of this announcement, there will be an after-hours VIP event exclusively for Tischler's

loyal customers. This event, scheduled for the 31st of May 2012, will serve as a pre-launch viewing and testing of the new product. It will take place in select Tischler stores located in major cities in Germany, such as Berlin, Hamburg, Munich, Cologne, and Dusseldorf. While Tischler will be the host of these events, P;G representatives will also be present, with a preference for Ryan Reynolds attending one or two locations. Through this partnership, Tischler can provide its customers with a specialty treatment, while P;G can have the unique opportunity to meet potential customers face-to-face.

In addition, we propose that instead of paying for shelf space and events, Tischler is granted exclusive rights to sell the new fragrance for one month. The official release of the new fragrance will take place when the curtains are lifted at midnight. On June 1st, the BOSS Community allows consumers who already possess a code to register on the website. To simplify the registration process, they can choose between creating a new profile or signing up using their Facebook account. This approach minimizes the hassle of signing up and remembering account details, among other benefits (Danaher, Conroy, ; McColl-Kennedy, 2008).

Users can achieve different status levels based on their input, which may include leaving comments on venues, tagging them on city maps, and giving ratings to their reviews. By relying on user input, the website fosters a sense of collaboration between the company and its users. The act of providing input not only enhances users' status but also fuels their desire to be perceived as city experts (Nambisan & Baron, 2007). In addition, users are incentivized to engage in up- and

cross-selling of perfumes, as their rankings are determined by the size of the perfume bottles they have purchased and the variety of BOSS Bottled fragrances they own. Consequently, a user who bought a 100ml bottle would have a higher ranking than a user who only possesses a 30ml bottle. This ranking information is obtained through unique QR or alphanumeric codes.

Still, the user who purchases a 30ml fragrance can improve their status by buying another or different fragrance and adding the new code to their profile. These upgrades in status offer various discounts, ranging from reduced prices for BOSS Bottled products at Tischler to vouchers for recommended venues in the user's city. These types of relational offerings incentivize customers to return to the retailer (Noble ; Philips, 2004). Consequently, upgrading becomes highly desirable for consumers and fosters increased sales, an active engagement with the website, and positive word-of-mouth. Additionally, website visitors have the option to receive a high-quality wooden fragrance bar upon which they can proudly showcase all three perfumes in a neat and prestigious manner. This fragrance bar is available at Tischler stores, which boosts foot traffic at these stores and enhances both Tischler's and BOSS's sales as the bar is more visually appealing when filled with all three bottles.

Other marketing means will debut on June 1st. Additionally, a third print advertisement featuring Ryan Reynolds will be released. This ad will portray him in a relaxed setting, as previously mentioned. The media coverage for this particular ad will be significantly higher compared to the other two, resulting in more frequent display. This strategy aims to enhance the perception of individuals using three distinct fragrances in

various life situations and ultimately increase the desire for men to fully experience BOSS Bottled. Furthermore, these print advertisements will prominently appear on billboards across Germany's thirteen largest cities, along with advertising pi.