Marketing strategy of Grasse Fragrances SA

Posted by Zander Henry on Aug-22-2018

1. The vision of Grasse Fragrances SA

The vision of Grasse Fragrances SA is to be the leading quality service and product provider for customers. Being the best and the leading player means that Grasse Fragrances SA marketing strategy and operations focus on:

• Providing high quality of products and services
• Providing value to customers
• Concentrate on building customer experience

2. The mission of Grasse Fragrances SA

Grasse Fragrances SA marketing strategy is grounded in its mission. The mission for Grasse Fragrances SA is to be the favorite brand of the customers. This mission is essential for the marketing strategy of Grasse Fragrances SA as it focuses on all operations and marketing activities in the direction of:

• Consumer centrism
• Using research to understand and influence consumers

3. Brand Equity of Grasse Fragrances SA

Understanding and knowing the brand equity is vital for directing and giving meaning to the marketing strategy of Grasse Fragrances SA. The knowledge of brand equity will help in shaping Grasse Fragrances SA marketing strategy effectively – thereby facilitating the growth of business for Grasse Fragrances SA.

3.1. Brand awareness

• Grasse Fragrances SA has high brand awareness because of international operations
• The company focuses on higher budget allocation in the country of origin
• Each market for Grasse Fragrances SA has modified marketing and strategic directives and plans

3.2. Brand association

• Grasse Fragrances SA is directly associated with the brand name and product category
• Grasse Fragrances SA has a broad product portfolio
• Grasse Fragrances SA is associated with promising and delivering quality and innovative products
• Grasse Fragrances SA is also associated with excellent customer service

3.3. Brand loyalty

• Grasse Fragrances SA has been successful at gaining high consumer loyalty because of unique and influential marketing strategy
• Grasse Fragrances SA has a global customer base
• Grasse Fragrances SA keeps adding value addition to the products and product portfolio to keep consumers engaged

3.4. Brand asset

• Grasse Fragrances SA has a substantial brand value
• Grasse Fragrances SA also enjoys the high financial worth
• Grasse Fragrances SA focuses on building a reliable and robust employee base

3.5. Brand element

• Grasse Fragrances SA uses the brand element as a means of competitive advantage
• Uses adaptability in product, services, and marketing to meet different cultural demands

4. Situational Analysis of Grasse Fragrances SA

The situational analysis will help in developing the marketing strategy of Grasse Fragrances SA by conducting a thorough market analysis. This market analysis will aid in understanding the compatibility between external opportunities and other factors, and internal strengths – to be used to maximize the marketing influence of Grasse Fragrances SA.

4.1. SWOT

4.1.1. Strengths

Grasse Fragrances SA marketing strategy can benefit from the following internal advantages:

• Strong brand image
• Global distribution network
• Investment in market research
• Innovation

4.1.2. Weakness

Grasse Fragrances SA faces challenges in marketing strategy because of the following weakness:

• Slow organizational processes
• High product prices

4.1.3. Opportunity

Grasse Fragrances SA has the following possibilities of business growth:

• Green lifestyles
• Regional expansion
• Diversification

4.1.4. Threats

Grasse Fragrances SA faces business threats because of the following factors:

• Increased competition
• Increased imitation

4.2. PESTEL

4.2.1. Political

• Grasse Fragrances SA operates I markets with political stability
• Grasse Fragrances SA has funding support from the government for small businesses

4.2.2. Economic

• Grasse Fragrances SA enjoys high sales because of higher GDP
• Lower interest rates make business expansion and loaning easier for Grasse Fragrances SA
• Low inflation strengthens the financial position of Grasse Fragrances SA

4.2.3. Social

• Higher education and awareness increases sales of Grasse Fragrances SA predict
• Grasse Fragrances SA focuses on understanding consumers and fulfilling their demands through its offerings

4.2.4. Environmental

• Grasse Fragrances SA has an active CSR program
• Grasse Fragrances SA ensures environmental safety in all its operations

4.2.5. Legal

• Grasse Fragrances SA is aware of local and global laws of business and human resource management
• Grasse Fragrances SA abides by all statutes – especially labour law, discrimination law, and employee safety laws

4.3. Porter’s Five Forces

4.3.1. Threat of substitutes

• High risk of replacements
• Substitutes offer similar products at low prices

4.3.2. The threat of new entrants

• New entrants need high financial investment
• New entrants need updated technology for keeping par with industry progress

4.3.3. Bargaining power of buyers

• Sales made to end consumer directly
• Stocking of products at retailers, as well as own-controlled retail outlets

4.3.4. Bargaining power of suppliers

• Multiple suppliers of raw materials
• Suppliers are chosen after careful inspection, and through contracts

4.3.5. Industry rivalry

• High industry rivalry
• Players offer similar products
• Players compete through marketing to influence consumers

5. Marketing Objectives for Grasse Fragrances SA: The Marketing Strategy of Grasse Fragrances SA

Grasse Fragrances SA marketing strategy has the following objectives for the current financial year:

5.1. Increased market penetration

• Increase top of mind recall for Grasse Fragrances SA brand and products by 30%
• Increase sales for Grasse Fragrances SA by 40% by the third quarter of the financial year
• Achieve a trial rate for new products of 10% during the first quarter of the launch
• Increase consumption rate of existing products by 45% during the current financial year

5.2. Enhanced brand recognition

• Increase top of mind recall by 65% during the current fiscal year
• Increase brand recognition by 80% during the first two quarters of the current financial year

5.3. Increased use of digital marketing

• Acquire 25,000 new online customers during the financial year
• Increase website traffic through using blogging and email tactics effectively by 505 during the first two quarters of the year
• Acquire 65,000 likes on the official Facebook page of Grasse Fragrances SA during the first quarter of the financial year

5.4. Retail Growth

• Contract with five more leading supermarkets in the first quarter of the year to stock product at eye level shelving
• Contract with two leading online retail sites – eBay and Amazon – to stock our products, and increase accessibility for consumers globally by the second quarter of the financial year

6. Segmentation of Grasse Fragrances SA

Grasse Fragrances SA marketing strategy uses different means of segmentation to reach an increase in market penetration.

6.1. Demographic segmentation

6.1.1. Age

Grasse Fragrances SA has consumers of age groups

• 20-45 years
• 45-60 years

6.1.2. Gender

• Grasse Fragrances SA has a broad product portfolio for both males and females

6.1.3. Life-cycle stage

Consumers for Grasse Fragrances SA, according to the marketing strategy, are in the following various life cycle stages:

• Single students
• Single graduates
• Single people living at home/not living at home
• Young couples without children
• Married couples with one to four children – all at home
• Married couples with one or two children in college
• Old married couples with an empty nest

6.1.4. Occupation

The marketing strategy devises the following occupations for Grasse Fragrances SA consumers:

• Professionals
• Students
• House makers

6.2. Psychographic segmentation

6.2.1. Social class

• Grasse Fragrances SA focuses on segments of middle-upper and upper social classes

6.2.2. Lifestyle

Grasse Fragrances SA consumer segments have the following lifestyle characteristics:

• They aspire towards a better and higher living standard
• They want to be successful – professionally and socially
• They are not hesitant to try new things, products and services in life
• They are confident in their behaviour and attitude
• They are mainstreamers in their fields

6.3. Geographic segmentation

6.3.1. Region

• Grasse Fragrances SA has operations spread across the western developed countries such as America, the united kingdom, and the Netherlands
• It also has operations in emerging markets such as Brazil, India, and China

6.3.2. Density

• The focus of Grasse Fragrances SA remains on the urban part of the population

6.4. Behavioural segmentation

6.4.1. Personality

The marketing strategy defines personality characteristics for the consumers of the brand of Grasse Fragrances SA, such as:

• Determined
• Confident
• Ambitious
• Hardworking

6.4.2. Usage frequency

• The consumer segments for Grasse Fragrances SA are regular and frequent users of the product

6.4.3. Benefits sought

• Consumers seek functional benefits
• The focus, however, is more on the emotional benefits reaped from the consumption of the brand

6.4.4. Degree of loyalty

• Consumers are very loyal
• Have an emotional attachment with the brand

7. Targeting of Grasse Fragrances SA Positioning of Grasse Fragrances SA

The marketing strategy of Grasse Fragrances SA targets consumer groups based on segmentation as follows:

7.1. Target market

• The target market for Grasse Fragrances SA is from middle to upper class
• The target market is ambitious and desires to purchase high-end consumer products
• This target market also seeks affordability
• To meet target market expectations, the Grasse Fragrances SA focuses on quality control

7.2. Mass marketing

• The marketing strategy of Grasse Fragrances SA focuses on mass marketing
• This also requires unique marketing designs and product promotion programs
• Grasse Fragrances SA makes use of one strategy to influence all segments

7.3. Undifferentiated marketing strategy

• Grasse Fragrances SA does not differentiate between market segments
• It uses a single marketing strategy to target all segments and consumer groups
• Based on this, Grasse Fragrances SA also created the marketing mix under the marketing strategy as a singular one for the whole market – regardless of the segmentation divides.

7.4. Focus on quality

• Grasse Fragrances SA has created, developed, and maintained a brand that satisfies all consumers under the undifferentiated marketing strategy and mass marketing
• No compromise on quality has been made in the broad product portfolio
• To ensure the influence of a single marketing strategy, the Grasse Fragrances SA has also adopted a consumer-centric approach in its overall marketing strategy and operations as well
• This was used for targeting strategy as well as for maintaining growth

8. Company Competitive Advantage in the marketing strategy of Grasse Fragrances SA

The marketing strategy of Grasse Fragrances SA stands out from the clutter and competition. Grasse Fragrances SA has also achieved a sustainable competitive advantage in its marketing strategy. This is because of the following factors that Grasse Fragrances SA has utilized:

8.1. Cost-effectiveness

• Grasse Fragrances SA focuses on reaching consumers effectively rather than grandeur
• Grasse Fragrances SA focuses on developing an integrated marketing approach
• The use of digital marketing efficiently and expertly has helped the company reach a wider audience at a lower cost
• Grasse Fragrances SA has in-house copywriters for marketing campaigns which also helps in controlling costs
• Grasse Fragrances SA also focuses efforts on ground activities – which are less expensive than commercial marketing tactics

8.2. Innovation

• Grasse Fragrances SA has stayed updated with latest developments in marketing research and marketing knowledge
• Grasse Fragrances SA makes use of new and innovative tactics to reach its target consumers
• Grasse Fragrances SA also employs top of the field marketers to facilitate its marketing strategy and promotional campaigns
• Each marketing campaign launched by Grasse Fragrances SA is effective catchier and more influential than the previous one

8.3. Strong market research and consumer understanding grounded

• Grasse Fragrances SA marketing strategy is strongly grounded in consumer and market research
• Grasse Fragrances SA makes informed marketing campaigns and goals based on consumers’ behavioural feedback
• Grasse Fragrances SA also incorporates consumer feedback in its marketing strategy
• Grasse Fragrances SA marketing strategy is based on market trends, and consumer needs and wants

8.4. Making effective use of emotional appeals

• Consumers’ emotional needs strongly influence all marketing objectives and marketing goals set by Grasse Fragrances SA
• In addition to fulfilling functional needs, Grasse Fragrances SA also tries to fulfil the emotional and psychological needs of the consumer
• Grasse Fragrances SA tries to build a strong emotional bond with the consumer, which also results in high consumer loyalty

9. Distribution Strategy of Grasse Fragrances SA

Grasse Fragrances SA marketing strategy highlights the use of the following distribution strategy to maximize reach and accessibility for consumers.

9.1. Intensive distribution strategy

• Grasse Fragrances SA makes use of intensive distribution strategy because it is mass marketing
• Grasse Fragrances SA’s marketing strategy is based on undifferentiated segments, and thus an intensive distribution strategy allows high penetration and reaches in the overall market
• With the use of the intensive distribution, Grasse Fragrances SA tries to maximise its coverage of the markets where it's present
• For achieving the intensive strategy, the company uses hardcore 360-degree integrated marketing strategy and campaign to reach all consumers, across all segments in the market.

9.2. Direct distribution strategy

• Grasse Fragrances SA uses direct distribution country of origin as well as in locations where it has subsidiary operations
• The Grasse Fragrances SA also makes use of modern retailing channels
• Also, Grasse Fragrances SA makes use of e-commerce and makes a sale through online retailers, as well as through the company website
• Direct distributions have allowed Grasse Fragrances SA to increase market penetration and accessibility for consumers

9.3. Indirect distribution strategy

• This strategy is largely used for offshore operations where the Grasse Fragrances SA does not have a subsidiary
• In these offshore locations, Grasse Fragrances SA largely works through the export model
• This makes use of several intermediaries in between, before the product by Grasse Fragrances SA reaches the target consumers
• Intermediaries for Grasse Fragrances SA include not only the end retail outlets, but also sales agents, retail agents, and distribution agents in offshore locations

9.4. Selective distribution strategy

• For some products of its portfolio which are premium in nature, Grasse Fragrances SA makes use of selective distribution channel
• Grasse Fragrances SA has maintained a few outlets in the country of origin, and in selected offshore markets for these products
• These placements and locations are chosen based on the niche market that Grasse Fragrances SA has for its premium products
• These locations, placements, and marketing strategy helps make the company’s product selectively, but readily accessible for its niche target audience

10. Competition Analysis in the marketing strategy of Grasse Fragrances SA

The industry in which Grasse Fragrances SA operates is very responsive to market and consumer trends. Grasse Fragrances SA, therefore, needs to be vigilant in its market strategy towards competition – to make sure that it maintains its competitive advantage.

10.1. Strategic Group Analysis

• Grasse Fragrances SA competes with direct and close competition based on quality and price
• Consumers choose between different companies from the industry based on their functional offering
• Consumers have progressively evolved to strengthen loyalty and form an emotional bond with products that they consume
• Grasse Fragrances SA also competes, thereby, with close competition for building stronger brand image, increasing consume loyalty, and for forming strong emotional ties with the consumer

10.2. Industry rivalry

• Grasse Fragrances SA experiences high industry rivalry
• The barriers to entry for the industry are low, and new entrants gain easy access in the industry
• The number of local as well as global players is increasing

11. Marketing mix of Grasse Fragrances SA

The marketing mix for Grasse Fragrances SA as per the marketing strategy is the following:

11.1. Product

• Grasse Fragrances SA has a broad product portfolio
• Grasse Fragrances SA provides mass marketed products for all segments across the market undifferentiated
• Grasse Fragrances SA also provides some selected, premium products to niche customer groups
• All products in the portfolio consistently maintain high quality
• All products are tailored to meet consumer specifications, demands and needs across different regional markets
• The Grasse Fragrances SA maintains a high focus on innovation in products and introduces new products frequently to keep the consumers engaged

11.2. Place

• Grasse Fragrances SA wants to have a close, emotional and personal relationship with its consumers
• The company maintains high control in its distribution strategies – especially through direct distribution strategy
• The company has a presence in leading supermarkets
• The Grasse Fragrances SA also has company-operated stores in malls, and otherwise to make products accessible to consumers easily
• Grasse Fragrances SA also makes use of e-commerce to increase penetration and sales

11.3. Price

• The Grasse Fragrances SA prices its products so that its target consumers can afford it easily
• Grasse Fragrances SA uses relative pricing strategy for its products
• The price of Grasse Fragrances SA’s products include not only the high quality raw materials and value additions but also the enhanced customer experience they deliver
• The company’s pricing strategy allows it to enjoy stable revenue and profit growth

11.4. Promotion

• The Grasse Fragrances SA has a high budget allocated towards marketing activities
• The Grasse Fragrances SA invests substantially in digital marketing activities to reap high and effective results
• Use of digital marketing has also allowed Grasse Fragrances SA marketing strategy to cap costs and expenses
• Grasse Fragrances SA also takes part in direct consumer engagement through on-ground activities where the company initiates trials
• Grasse Fragrances SA also invests in traditional media channels to reach maximum consumers in the market

11.5. People

• Grasse Fragrances SA has a large workforce across different companies
• This workforce is continually trained to become experts in their respective fields of operations
• Grasse Fragrances SA hires without discrimination
• Grasse Fragrances SA ensures that its employees remain motivated through building an inspirational and creative organizational culture
• Grasse Fragrances SA focuses on also building and maintaining organizational commitment and loyalty in its employees

11.6. Process

• All activities at Grasse Fragrances SA - from raw material procurement to the final sale to the end consumer - undergo systematic processes
• The processes at Grasse Fragrances SA are well defined, and well communicated to all employees
• All employees are trained to follow the processes internally to ensure consistently high quality as well as timely production and deliveries
• The systematic processes also ensure a smooth running of operations at the Grasse Fragrances SA

11.7. Physical evidence

• The physical evidence for Grasse Fragrances SA includes the company logo, company store designs, and the product packaging
• Satisfied and excited customers in the retail spaces of Grasse Fragrances SA, as well as during product consumption create a bubbling and an inviting atmosphere
• The e-commerce website for retail by Grasse Fragrances SA is also designed with a friendly customer interface to allow maximum interaction with the brand
• The store designs created by Grasse Fragrances SA for its retail space allow consumers maximum interaction with the products directly.

12. Promotional tactics for the marketing strategy of Grasse Fragrances SA

12.1. Digital marketing

• The company uses social media for reaching consumers effectively
• The Grasse Fragrances SA interacts with the consumers directly, and engages with them, answers their queries and takes their feedback
• The company also shares information and build relationships with consumers through digital marketing
• Grasse Fragrances SA also makes use of blogging, emails, and content creations as a means of digital marketing

12.2. Conventional marketing

• The company uses a 360-degree approach in its marketing strategy
• This means that the company makes use of traditional marketing channels as well – such as TV, magazine adverts, and out of house placements

12.3. Influencers

• For direct, on-ground engagement, the company uses influencers
• Influencers interact with consumers directly, or through their channels of communication as a means of content creation and endorsing the Grasse Fragrances SA brand

13. Monitoring and evaluation of the marketing strategy of Grasse Fragrances SA

13.1. Changes in sales

• Grasse Fragrances SA regularly tracks its sales to identify the effectiveness of its marketing strategy
• Increase in sales reflect the success of marketing strategy of Grasse Fragrances SA
• Sometimes, Grasse Fragrances SA experiences increase ins ae after some time of the launch of the marketing promotions

13.2. Surveys and focus groups

• Grasse Fragrances SA frequently conducts focus groups and surveys to identify its brand worth
• These methods also help the company identify brand value, brand recall, and brand recognition
• Focus groups allow Grasse Fragrances SA to gather feedback on its marketing strategy and helps it understand consumers better

13.3. ROI

• Effectiveness of marketing strategy of Grasse Fragrances SA can also be seen through the revenue and profit growth
• Return on investment allows Grasse Fragrances SA to effective gauge the effect and influence of the marketing strategy, and measure its success

13.4. Attainment of marketing objectives

• All marketing objectives set by Grasse Fragrances SA are SMART
• The quantitative set against each of the marketing objective can facilitate attainment evaluation for the overall marketing strategy
• Successful and timely attainment of these marketing objectives highlight the success of the marketing strategy of Grasse Fragrances SA