SEGMENTING AND TARGETING
...The segment size is enormous, bigger than premium and mid market segment. Products are non branded hence there is no loyalty factor. Demand is extremely price sensitive. Profit is based on bulk volume. If this does not happen this segment is not worth stepping into. Profiling and analyzing segments Oriental line Products Segment Size Premium /high priced spray products This segment is new as the younger generation prefers convenient form of perfume application. Brand loyalty may not be strong. Profit potential is enormous. Growth is high. Premium high prices concentrated attars or oils Highly prized oils such as Aloeswood blended with traditional attars called mukhallat. Extremely high profit. Low volume . Extremely competitive segment. Very strong brand loyalty. Mid market/spray and Attars High growth potential. Low profit potential. No brand loyalty. Demand is price sensitive. Mass market/spray and Attars New segment, Low priced and low growth potential. Demand is very price sensitive Target Markets French Line Target Market /Countries Premium /high priced French spray products: Target markets are USA, Europe, Middle east, Japan south east asia Mid Market/Medium priced French spray products Target markets are CIS countries, former Baltic states, Middle east, south east asia, Africa, Latin America. Mass Market/Low priced Africa, Middle east, Latin America,, south east asia, CIS countries, India, Pakistan, Sri lanka, Bangladesh etc, Oriental line Premium /high priced spray products and Attars GCC countries Mid Market medium priced spray products and Attars GCC countries Mass Market spray products and Attars GCC countries and countries such as Mauritania, Tunisia, Morocco, Turkey, Egypt 6. Design, implementation and maintain appropriate marketing mixes is as under: I) a. Products Design /implementation : The company has to introduce more spray products in the French mid market /medium priced spray products at competitive prices keeping in view that brand loyalty is not very strong and demand is price sensitive. Packaging should be aesthetic and fragrance commensurate with emerging trend. These products are targeted at expatriate population of middle east, even locals and people of other countries. b. The company has to tap the potential of the growing segment of premium priced oriental spray perfumes by introducing new products. These products are targeted at rich and younger generation of arabs who prefer convenient form of perfume application. Traditional ingredients blended with modern French ingredients should be used. c. The company has to introduce new products and ensure quality in the premium high priced attars. Any laxity will prove disastrous as profit potential is enormous. d. The company has to introduce new products mid market/medium priced spray products in the oriental category. e. The company has to be careful in introducing mass market / low priced product in the oriental category as there does not exist huge market because any low priced product in the oriental category is perceived inferior hence target population is low income arabs in countries listed above. f. The company has to explore the possibility to enter the premium high priced French line spray product market which is dominated by major perfume houses. II Distribution / Promotion a. The company has to ensure distritbution of its product through a sound and efficient dealer network with appropriate POS materials, publicity etc. b. Frequent promotions should be carried out in the Medium priced French segment in order to increase and sustain sale. c. Point of sale material to be supplemented with sales. III Pricing Strategies a. Premium French line spray products: This would be possible after building brand image since the company would be competing globally with major perfume houses. Product should be slightly lower priced than major competing brands and at the same time quality of the product should be same as the major brands since Consumers are not price sensitive. b. Medium/mid priced French spray products: Prices should be competitive and should be based on value for money concept. Frequent value add ons should be added alongwith introduction of new products in order to improve the shelf life of the product since Consumers are price sensitive. c. Premium /high priced oriental spray perfumes. The price range should be similar or higher than major French line premium brands as Oriental line is perceived as high profile, exclusive and luxury perfume and Consumers are not price sensitive. d. Medium /mid priced spray perfumes and Attars: The company has to Introduce new products and sell in bulk quantity in order to generate reasonable profits. Consumers are extremely price sensitive...