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AISHWARYA JONNALAGADDA M.A. LUXURY AND FASHION MANAGEMENT FINAL PROJECT


ABSTRACT

In this age, customers continue to seek more immersive, cultural experiences that see a convergence of fashion, beauty and hospitality. Luxury brands have sworn to provide over-the-top, exclusive spaces to their guests who want to indulge in unforgettable Instagram-able experiences. Luxury brands have used a similar strategy in the past to bring in foot traffic and ultimately raise brand awareness; and thus, the branded café trend emerged. The idea was to make luxury available to more than just the inner circle – by letting them interact with an extension of the brand that is not its core offering. Customers are enticed with curated food and beverage menus and delightful events, all driving to elevate their senses. Jo Malone London has always embraced personal relationships, and this culture has blossomed into creating innovative, immersive and inspiring settings. The brand’s curation of events celebrates multi-sensoriality, an aspect that has been successful in bringing the customer closer to the brand. Synonymous with elegance, sophistication and heritage – Jo Malone revolves around cultural human interaction in an iconic global landmark that is London. With a distinctive presence and legacy to uphold, Jo Malone approaches the new decade by envisioning its future in the luxury experience and hospitality sector. With the creation of a tea room experience in London, Jo Malone celebrates the timeless phenomenon of British afternoon tea. It hopes to develop a cultural and immersive experiential setting, all for an audience that has the world's finest delicate palates. By fostering human connections, it aims at enriching its relationship with its customers. Secondary and primary research will support the initiatives and strategy proposed. The design of the tea room will be revealed along with assets that support it. The future outlook and growth opportunities will see the brand entering new territories and exploring new avenues of services and products.


THE BRAND Mission Statement “CELEBRATING BRITISH STYLE WITH UNEXPECTED FRAGRANCES AND THE ELEGANT ART OF GIFT GIVING.” Jo Malone London is a British fragrance house known for elegantly simple scents. It creates coveted colognes and luxurious scents for bath, body and home. The style is distinctive yet understated – and always appreciated. The brand has grown tremendously since its inception in 1994 – currently holding 27 colognes in the fragrance arc, 61 markets reached worldwide and 400 scent combinations with its trademark of Fragrance Combining. Founded in 1994, Jo Malone is an eponymous company synonymous with luxury and indulgence. As a child, the founder, Jo Malone would make her own perfumes with flowers from the garden and grated Camay soap. She worked as a florist and gave facials in her kitchen at night. It was when she met her husband Gary at the age of 19 that their business, featuring her handmade scents and products, took off. She gave her Nutmeg and Ginger Bath Oil as a thank you to her clients and the orders began to flood in. The brand's signature black and cream packaging still remains iconic today. Jo Malone first opened doors to the world at 154 Walton Street in London in 1994; and by 1999 had launched a flagship store in London's Sloane Street. By this time, the brand had proven to be a fragrance empire with commercial allure to attract beauty industry heavyweight Estée Lauder, which bought the business. Jo was still at its U.K. helm as chairwoman and creative director. However, in 2006, she sold it to Estée Lauder in its entirety. In 2011 she announced the launch of her new fragrance company, Jo Loves - so she could continue to fulfill her passion and dreams.


BRAND TERMINOLOGY

THE ART OF GIFT GIVING Jo Malone products are often a token of gratitude, genuine surprise or welldeserved indulgence. The gift of Jo Malone London is always a welcome luxury. From the smallest thought to the grandest of gestures, choosing is almost as exciting as receiving

BESPOKE SCENT One can tailor their scents with Fragrance Combining™ and build their own collection. By experimenting with scents of personal style, different notes can be layered with a twist. Each fragrance is impeccably crafted to pair with other scents. A trilogy is created – with two loved fragrances to wear alone, plus one ultimate combination that conjures an entirely different mood.

CHARITY GARDENS In Support of Urban Community Gardens, Jo Malone has partnered with charities that use gardens to bring beauty to urban communities. The company has taken an oath to nurture and restore individuals and families by creating public gardens and green spaces for increased education, well-being and public safety, as well as employing gardening skills as a pathway to work and self-sufficiency.


JO MALONE LONDON TOWNHOUSE 52 Gloucester Place, Marylebone

From its Georgian townhouse and creative global headquarters, the Jo Malone Townhouse orchestrates a world of bespoke luxury. It is inspired and immersed in modern British culture. This is a setting for all scintillating events and conversations with the brand’s stakeholders. Whether it is an official gathering with beauty experts and leaders or a private party with micro influencers from around the world, the Jo Malone London Townhouse hosts every significant event in the brand’s life. Redesigned by Rose Uniacke, the Townhouse is simple and unpretentious, yet warm and luxurious. The interiors of the townhouse applaud the brand’s visual identity with subtle details throughout  to reflect Jo Malone's famous packaging. This space has the continued potential for amicable interactions and immersive experiences in the future.

TALK OF THE TOWNHOUSE

The go-to destination to read about fashion, beauty, food, interiors and more – the digital publication, The Talk of the Townhouse, features everything from news to interviews with utmost creativity and style. The magazine’s title is inspired by the famous Jo Malone London townhouse. The Talk of the Townhouse is a luxury lifestyle bible for the most stylish and discerning women; so they can find inspiration for elegant entertaining, perfect designs, scents and sensibility and star secrets.


MERCHANDISING MIX

What the Jo Malone customer purchases is a mix of fragrance, bath and body, face care and home products. The products range from colognes, bath oils, body and hand wash, body scrubs, soaps, body and hand lotions, hair mist, shampoo, conditioner, lip care and, conditioner, candles, diffusers, room sprays and linen sprays.   There is an option to purchase little luxuries, a travel sized packaging collection; combination gift sets, and rare, aboslu and archived collections. One of the most exclusive collections that the brand has sold till date is the Rare Teas collection – it is a mixture of six exquisite scents that make one coveted collection. The delicate infusion of tea pods into the perfumes was an effort to appreciate the British culture of afternoon tea, a tradition that has lived for centuries and remains so intrinsic in England’s history.


DISTRIBUTION Jo Malone products are distributed under Estee Lauder. Products are primarily sold through limited distribution channels that complement the luxurious image and prestigious status of the brand. These channels consist of department stores, specialty multi-brand retailers, upscale perfumeries and prestigious salons and spas. In addition, the products are sold in freestanding stores that are either operated by Estee Lauder or by authorized third parties, operated through e-commerce websites and websites of authorized retailers, in various travel retail locations such as stores in airports and on cruise ships, in-flight and duty-free shops, and certain fragrances are sold in self-select outlets. Products are also sold through company owned and operated ecommerce and m-commerce sites, or authorized retailers and third-party platforms. These sites are in approximately 40 countries, with a majority of online sales being generated in the United States, United Kingdom and China.

INTELLECTUAL PROPERTY Estee Lauder owns the trademark rights used in connection with the manufacturing, marketing, distribution and sale of products both in the United States and in the other principal countries where such products are sold, including Jo Malone London.


THE JO MALONE CUSTOMER is a true reflection of understated elegance, sophistication, charm and wit.

DEMOGRAPHICS Gender: 87% female, 13% male Age Group: Early twenties to mid-forties; with a majority at around 30 years of age Marital Status: Predominantly married Average income: ÂŁ45,000 annually Primary Audiences: London, UK Secondary Audiences: New York, Manchester, Manila, Liverpool, Glasgow and Dublin

PSYCHOGRAPHICS Interests: Eating out, cooking, drinking wine and indulging in home improvement activities Beliefs: Environmentally driven, charitable, health conscious Brand affinities: A mixture of high-end and high street fashion. Brands include MAC, Urban Outfitters, Topshop, Harrods, Stella McCartney, Burberry and Chanel. Social Media behavior: Predominantly Facebook and Twitter, new age adoption of Instagram.


BRAND AMBASSADORS

Jo Malone London Girls, Karen Elson and Poppy Delevigne embody the brand’s spirit of sophistication, originality, wit and hospitality. They are dedicated, vivacious characters, with huge international appeal. In collaboration with Jo Malone, these Jo Malone London Girls have created content for various digital platforms such as YouTube and Instagram. The specific campaigns show them personally interacting with her favorite products and sharing their favorite travel excerpts. They have also been the centre of reimagining the fragrances, product packaging and content creation over the years. John Boyega, known for his performances in Star Wars and Detroit, become the first male ambassador for Jo Malone London in 2019. His personality and sensibilities make him a perfect fit to be the new face of the brand. In his role as 'The Jo Malone London Gent' he is seen swapping action sequences to explore his softer side, as part of a celebration of 'Britishness, storytelling and fragrance.' The decision to appoint a male ambassador was unique for the brand; while one may be most familiar with the success of Jo Malone London's more feminine offerings, such as Red Roses or the Pomegranate Noir candle, all of the brand's colognes are designed to be unisex. This way the brand is embracing inclusivity, hoping to nurture and grow their male audiences by a larger percentage in the future.


Since 2012, Global Brand President Jean-Guillaume Trottier headed up the Jo Malone London team from their London headquarters. Under his leadership the brand has experienced impressive business growth, expanding into new markets including Korea, China and Brazil. Jean-Guillaume has driven a clear strategy to reaffirm Fragrance Authority, through amplifying the craft of the perfumer and the brand’s pioneering approach to unexpected ingredients. He has established the Jo Malone London townhouse at the very heart of the brands British story and has placed a committed emphasis on creating memorable in-store experiences, be it through customization, Fragrance Combining or an enriching gifting program. He has ensured that the brand continues to radiate authenticity and a unique boutique positioning in an increasingly crowded market.


In 1998, Jo Malone staged an effort to drum up interest in the upcoming concession store at Bergdorf Goodman.Influential people were requested to walk around the fashionable districts of New York City with empty Jo Malone branded bags. But marketing and advertising efforts at Jo Malone today are different. Jo Malone embraces an omni-channel communication strategy where they include email marketing, social media, websites and microsites in their marketing mix. As a market leader, Jo Malone London is renowned for its innovation in new product and service development, a strategy it follows to maintain growth and continue to grow market share. Its marketing efforts reflect this intention, executing immersive and innovative activity through PR and customer events. However, communicating with customers across multiple digital channels requires focus.Through the innovative use of Kitewheel customer journey technology combined with smart use of customer data and cutting-edge data science techniques we successfully delivered the holy grail of marketing – 1:1 tailored, real-time, omnichannel interventions for the brand. 638 unique pieces of content were tailored to an individual’s customer journey in real time, meaning the validity would depend on the customer taking an action and also depending on browsing data. Big data and AI were critical in customer journey mapping. Complementary Facebook ads were sent along the emails which triggered engagement. There was a creation of a holistic brand experience across Jo Malone London's major touch points.


SWOT

STRENGTHS High credibility as it is EstĂŠe Lauder owned Strong British identity Unique, exclusive and innovative product offerings Customized and meaningful purchase experiences Trademark of Fragrance Combining Unisex fragrances

WEAKNESSES Limited brand awareness and a limited target market Limited budget and efforts towards advertising and marketing

OPPORTUNITIES Creative borrowing between the hospitality industry and Jo Malone Branded cafe retail concepts as brand extensions Grasping a larger, dynamic and younger audiences

THREATS Competition from existing brands Possibility of new entrants


The Experience Industry

The sophisticated, modern-day luxury experience seeker is in search of ‘luxuries of time and space’. These might include an exclusive, highly tailored, transformative, once-in-a-lifetime experience with unparalleled service that noone else could possibly enjoy; or a quieter, authentic experience based on emotional connections with friends, or interactions with locals, the aim of which could be physical enrichment, emotional fulfillment or intellectual nourishment. Experiential luxury includes categories such as high-end food and wine, out of home luxury experiences, luxury events, luxury catering, luxury hotels, and exclusive vacations. A majority of millennials are buying fewer products and purchasing more experiences. By 2022, the experiential segment is forecast to account for nearly two-thirds of the total luxury market—representing a fundamental shift in consumer behavior, from owning to being. By 2024, personal and experiential luxury alone are estimated to be a €1,1260 billion market—a significant increase from €845 billion in 2015. The key motivation behind retailers opening up their space to restaurants, cafés and bars, is to create excitement and give customers another reason to visit, at a time when customers are increasingly shopping online.   “The turnover generated from restaurants and cafés will be so minimal, but it’s about building customer loyalty and getting them in store and giving them an opportunity to buy,” remarked Honor Westnedge, lead retail analyst at intelligence firm Verdict Research. Consumers are seeking a more engaging and memorable shopping experience — and if retailers can captivate them with experiential elements like restaurants and cafés, and thereby increase dwell time, it will inevitably boost sales. “Food is in fashion,” says Hall. “And while you don’t need to go out to buy a product because you can do that online, you can’t meet a friend in the same way; that’s why food is becoming a glue for retail.” 


THE LUXURY BRANDED CAFE TREND

In a time where consumption is dwindling and experience-driven retail is becoming a standard expectation from customers in the retail space, it makes sense that various fashion, lifestyle, beauty and fragrance brands are leveraging the dining experience to attract customers into their stores. While traditional methods of brand extension involve developing new products, this form of extension calls for the core property to be extended into an experience. It involves taking a well-known brand and transferring the core equities and aesthetic into a service experience — the most common form being a restaurant or cafÊ.


Fendi Caffe Located within London's department store Harrods, this photogenic space is dreamed up in collaboration with LA-based artist, Joshua Vides. People can order a cup of coffee or satisfy their appetite with a sandwich or a piece of cake, all stamped with Fendi’s signature Zucca “FF” logo designed by the late Karl Lagerfeld. The pop-up was open to public until August 31, 2019.

Roberto Cavalli The Cavalli Cafés are probably some of the extravagant places one will ever step into to get your dose of caffeine. Cavalli has locations all over the world in the swankiest places like Kuwait, Delhi, Veirut and their most recent opening in St. Tropez.

GQ Bar Wannabe-007s looking to play James Bond for the day (or night) should head to the GQ Bar Dubai. There are famous GQ cover stars on the walls and Cigar & Cognac evenings for the 'discerning gentleman. There is a Women We Love appreciation night on Tuesdays when ladies get free drinks from 9pm to 1am.

Ceresio 7 by Dsquared2 Fashion’s coolest duo turned their hand from designing clothes to designing a masterpiece of a restaurant, where the stunning rooftop pools are as much of a draw as the food itself. Situated on the top floor of DSquared2 headquarters, Ceresio 7 has a poolside veranda for dining when it's heating up outside. During colder months retreat to the 1930s-style indoor restaurant, where head chef Elio Sironi reinterprets traditional local cuisine with unusual flavour combinations.

Armani Café

Giorgio Armani was one of the first fashion designers to enter the dining scene. To date, the Armani group has 18 restaurants and cafés in locations such as New York, Chile, Abu Dhabi, Doha, Dubai, Hong Kong, Tokyo, Italy, Cannes, Munich, and Paris. The fashion house operates under the names Armani / Ristorante, Emporio Armani Caffé, Armani/Aqua, Armani/Privé, and Armani/Café. Much like his designs, Armani’s restaurants offer delightfully tasty haute cuisine recipes with traditional Italian and modern twist on classics.


Bar Luce by Prada Prada collaborated with the film director Wes Anderson to create a “typical Milanese café” located inside the brand’s art complex Fondazione Prada. The retro-pastel haven is outfitted with a Zissou-themed pinball machine and serves pastries, paninis, tartines, and cocktails.

Beige by Chanel From the menu to the interiors, Chanel’s Alain Ducasse-headed restaurant in Tokyo’s Ginza district stays true to the house’s code. The two Michelin-starred restaurant is a mix of cultures, with Ducasse’s French dishes using Japanese produce. The highlight here is the chocolate in the shape of Coco Chanel's favorite flower, the camellia.

The Blue Box Café Tiffany & Co. opened its Blue Box Café, where one can relive Holly Golightly’s famous breakfast inside the store. Situated on the fourth floor of the Fifth Avenue flagship store, the café serves coffee, avocado toast, and Tiffany Tea which starts at $29.

Gucci Café Gucci’s four-floor flagship in Ginza houses the Gucci Café. The lunch and afternoon tea spot has a '60s vibe and a brown color palette that matches perfectly with the store’s merchandise. Some of the cafe’s most famous offerings are the Gucci monogram chocolates for the sweet- and fashion-obsessed. The fashion house also has Guccithemed cafés in Milan and Shanghai.

Vogue Café Vogue Russia has long been synonymous with the ultimate in style direction, known for its discerning content and high, high fashion.

Hermes Le Café The space is hidden inside the French fashion house’s Ginza flagship. In addition to dim lighting, the café has no view and no windows—perfect as a private rest stop. For about 1,100 yen, one can indulge in Le Café’s signature coffee with a pair of exquisite Birkinshaped chocolates. In Paris, Hermès’ Rue de Sèvres store has Le Plongeoir, a café that offers sweets and treats on Hermès China and Togo leather table mats.


Thomas Café by Burberry Named after the Burberry founder, Thomas’s serves an all-day menu of British classics. Located at the 121 Regent Street flagship in London, it offers amazing tea and mouthwatering desserts while supporting small farmers and artisanal suppliers.

Ralph’s Coffee & Bar Ralph’s Coffee & Bar makes homemade cookies, nitrogen-infused cold brew, classic American roast, indulgent chocolate layer cake, and heirloom recipe cheesecake. Aside from the brand’s permanent spaces, the café has opened as a pop-up stores in select Ralph Lauren shops around the world. Then there are also the label’s other restaurants: The Polo Bar in New York, Ralph’s in Paris, RL in Chicago, and Ralph’s in London.

Rose Bakery Rose Bakery is Dover Street Market and Comme des Garçons’ entry to the world of retaildining. The bakery was originally a standalone eatery in Paris, but soon enough outlets opened in Dover Street Market and Comme De Garcons stores. Instead of luxe ingredients, the eatery offers healthy and organic dishes with tea drinks and baked goods. Rose Bakery can be found in Dover Street Market and Comme des Garçons stores in London, Seoul, and Tokyo.

Marchesi Marchesi 1824’s new branch in London will be serving the same favourites and signature items, such as the legendary panettone and gianduja chocolates. Miuccia Prada’s familiar prints and love for green are translated on to the interiors of the exquisitely set-up cafe.


LONDON AS THE SETTING London is the home of Jo Malone and there is no other setting more suitable for the Jo Malone Tea Room than London. With its roots so deep in the British heritage, Jo Malone has become “internationally synonymous with all that is most coveted in British style.” The afternoon tea tradition is quintessentially British, and many Brits still make time to enjoy the civility of this quaint English dining custom. With TV shows like The Great British Bake Off show streaming on Netflix and Amazon Prime, many people today are re-acquainted with the tradition. Witnessing Olympics in London and celebrating the Queen’s Diamond Jubilee increased a sense of national pride and led to the rise in afternoon tea indulgence. For visitors to the London and other parts of UK, afternoon tea is a novelty and a chance to try something different. According to a study by Mastercard about its Global Destination Cities Index, London was ranked the third in the world with 19.4 million international overnight visitors each year. This means that there will be a continuity of travelers to the city to explore its culture, traditions and rich heritage. Many hotels and restaurants operate afternoon tea services in London, which in the last few decades have earned the reputation of the finest service provided. However, as the customer landscape is changing, customers are looking for more unique concepts that let me interact with the brand.


Maison Assouline Highlight: Undeniably French From £29 A space surrounded by books Old-worldly charm

Dorchester Highlight: Losing track of time Afternoon tea, £65. With Laurent-Perrier Champagne, from £75Mayfair Theatrical service Charming and grand

Claridge’s Mayfair Highlight: For smart tea connoisseurs £70 per person Popular with tourists Known for perfecting the skill of serving tea

Sketch Mayfair Highlight: A party place From £59 per person One of the most expensive places to eat and drink A millennial pink setting named Gallery Eccentric, bizarre, quirky    

Fortnum and Mason Piccadilly Highlight: Classic afternoon tea and still one of the best Fortnum's Afternoon Tea £52.50 (£56.50 with Rare Tea) Peaceful oasis A traditional affair  


JW Marriott Grosvenor House Mayfair Highlight: Perfect indoor and outdoor vibe Price: £57.50 with a glass of Perrier-Jouët Grand Brut The tea itself is dedicated to Anna, 7th Duchess of Bedford, the originator of the mid-afternoon dining concept in the late 1800s Has stunning views of Hyde Park. 

Royal Albert Hall Kensington Highlight: A cultural experience Views of the Royal College of Music Combination of tea with a historical tour Guests can watch rehearsals of the evening performance A step up from most museum cafes

Four Seasons at Ten Trinity Square Trinity Square Highlight: A trade history lesson Price: £35 per person; from £38 with a glass of Champagne Opposite the Tower of London A main circular room where tea is served to the tune of a pianist Bespoke plates imprinted with the Silk Road and a compass

Palm Court, Kimpton Fitzroy London Hotel Highlight: Immersion in history Price: Afternoon tea, £30. With a glass of Champagne, £40 A twist on traditional menu The space leaves a permanent mark in the neighborhood and hotel


RESEARCH METHODOLOGY CHART


Observations at Jo Malone store in New York City Objective To understand the current brand identity and style that will dictate a part of the aesthetics and service design in the Tea Room. Limitation As the store visit was during a weekend, there was limited time available to coverse with sales representatives. Upon entrance into the Jo Malone store at The Shops at Columbus Circle, there is an immediate identification of the brand’s aesthetic. The carpet was black and cream, branded Jo Malone and spread across 70% of the store. The displays were built-in wooden wall shelves also in the color palette of the brand. There were two sales representatives to meet, greet and assist guests in their shopping experience.  A part of the store had a black-and-cream striped wall, which makes a statement and immediately catches attention. The power wall to the right-hand side of the entrance was of various colognes. Visual merchandise was primarily the classic Jo Malone boxes, beautifully wrapped in black and cream ribbons. The store smelled wonderful, with their best-selling Red Roses scent. It was not overpowering, but enough to get the feel of the brand. There was a distinction in areas that sold perfumes and colognes; diffusers and candles, and bath and body products. There were tables and chairs were people were seated leisurely, their hands placed on fresh towels so that they can try products of their choice.  The vibe was warm at entrance, there was immediate attention and assistance.


Observations at competitor cafes in New York City Objective To observe what the competitors have to offer in terms of food, the décor, traffic flow, differentiating factors and competitive advantages. Limitation The price points of the Jo Malone Tea Room would be a lot higher than the ones visited. However, most of target market that visits luxury branded cafes also visits these cafes. Mariebelle, New York The primary purpose of this visit was to experience a local tea room in the heart of New York City and learn how localization of the offering has helped with the popularity of this tea room. An exclusive, non-hyped, quiet and super Instagram-able place, Mariebelle is in the heart of the Soho district of Manhattan. It is a small set-up on Broome street, and the color of the store and the window displays will immediately call one in. They had beautiful visual merchandise with turquoise blue wrapped chocolates, gold and silver platters and a number of gift-boxes.Upon entering, one is ushered along the room getting a small tour of their truffles, carmels and chocolates. The presentation is impressive, almost looking like tiny pieces of art rather than chocolate. Towards the end of the hall is a Spanish inspired tea room with a menu consisting of delicate dessert and snack platters. The presentation and service were impeccable, the servers were endearing more than anything. One will feel taken care of, thoroughly pampered and well fed. The décor included mirrored walls with gold trimmings, resembling that of museums and churches from Europe. There were roughly ten to twelve tables, close to each other but it didn’t feel like it was crowded. It is an escape from the bustling New York City while still being in the city. The price points were not high, the prices range from ordered fell between $2 and $20, so it could be considered very reasonable for the experience it serves. Even though it was not a luxury brand, the service, ambiance and food ticked all the boxes to feel like a luxurious experience.


Ralph’s Coffee, Rockerfellar Centre Objective To witness how a luxury fashion brand’s strategy of a brand extension worked in their favor to attract more customers. Stationed in the North Promenade of Rockefeller Centre, the Ralph’s Coffee truck gains attention as much as tourist attraction itself. The seating on the patio is generous yet small, not for more than 30 people at any time. The place operates on self-service as the lines are rather long, especially on a weekend. The menu, rather limited had a selection of coffee, tea, juices, soda and water. The food menu consists of scones, muffins, mini pies, cookies and granola bars.The idea of Ralph’s Coffee truck is not to provide a luxury experience, but to share a concept with the market. With the price point being between $3 and $8, Ralph’s Coffee truck is affordable by all. Sometimes, almost every day when one is on the way to work and needs to pick up coffee – the hours of operation are convenient as they are open rom 8 am to 8 pm through the week. The staff on the truck is not more than 2-3 people at any point, the service is quick and the greetings are what you get in any other typical café. What people come here for is to get that one Instagram post or story of the bear that seems like its driving the truck, and the Ralph Lauren logo on the cup – all with a popular Rockefeller Centre in the background. The idea for Ralph’s Café in this setting was to trickle down an offering at a price point that the mass market could afford – so that everyone would be able to interact with the brand.


Interviews with Primary Target Audience Six individuals were interviewed between the age groups of 24 and 32 to understand their travel and dining experiences at various luxury branded cafes in the world or at specific tea rooms in London. The customer profiles have closely been based on the people spoken to in the research as they hinted to behaviors and affinities that would mirror the ideal Jo Malone Tea Room audience. Objectives To get opinions of the concept with people in the target group To study their previous experiences To get an insight on their behaviors, likes and affinities To understand what they expect from the Jo Malone Tea Room.

Questionnaire 1.     How would you define your personality? 2.     How do you spend quality time with people close to you? (Place, Traditions) 3.     Had you ever been to a restaurant with afternoon tea?  4.     When and where was your first high-tea experience? What time did you go? 5.     How old were you when you first experienced that? 6.     What did you like best about that place? 7.     What makes a great afternoon tea? 8.     What elements make you want to go back? 9.     What did you think was missing? 10.  Are you familiar with Jo Malone? 11.  What words come to mind when I said Jo Malone? 12.  Do you currently own any Jo Malone products? Or would you want to? 13.  Which Jo Malone stores have you been to? (Any in London?)


14.  What do you think about Jo Malone entering the hospitality industry with a Tea Room in London? 15.  What would you like to see in this setting? 16.  What events would you like to attend here? (The brand currently holds bouquet arrangement, gardening, dinner table décor, illustration, perfume inspired cocktails, collection launch brunches and farm living experience.) 17.  How do you find out about most of the cafes/restaurants you visit? Do you often check on Instagram before you visit a place?  18.  What is the most important aspect for you? The ambiance, the food, the service or the product? 19.  What kind of people would you see visiting this cafe? 20.  Would you keep it on your bucket list for when you traveled to London? 21.  Do you suggest a name other than Jo Malone Tea Room? 22.  What do you think about a capsule/exclusive collection of serve ware that is Jo Malone branded? Would you purchase it? 23.  Would you like it to be customized for you? 24.  Would you use it for gifting purposes?

Results 100% were aware of the brand and its offerings. They exhibited qualities that could be imagined for the prospective target audiences for the tea room. This allowed setting communication objectives for the IMC plan, there would be no need to increase brand awareness of Jo Malone in this target audience, but augmentation of brand image is necessary – as the brand is extending into a new industry. All the connotations to the brand were positive among the prospective target market.


Serene, Elevated, Simplicity, Fluorescent, Elegant, Versatile, An alltime favorite, Fresh. Refined, Sophisticated, Minimal, Regal, English, Luxurious, Fragrant, Vintage,

100% of the audience agreed that Jo Malone entering the hospitality industry with a tea room is very on brand and that they would be interested in visiting the space when in London. However, they were specific that they would want to see advertisements of the Tea Room in the media that they consume – such as Instagram and leading magazines and blogs. They wouldn’t go beyond their usual media habits in order to get more information about the Tea Room. Four people were immediately interested in purchasing the capsule collection of serve ware along with customization, however one said they would have to visit the tea room and see the serve ware being used in order to purchase it. The other person said they were not interested.100% said they would love for the serve ware to be customized but only four were interested in monogramming which is the brand’s current style. The others said that they would like to see illustrations specially made for them or patterns designed personally for them.  When asked which is the most important among food/product, service or ambiance, two said ambiance was the most importance to them; two said all three gained equal importance, one said the product/food meant the most to them and one said that service was key.


RESEARCH FINDINGS


LUXURY

HERITAGE

SOPHISTICATION

1

Jo Malone London centers around its three coveted pillars.

Legacy luxury brands are re-examining the value of brand heritage and history.  Millennials, Gen X and even Baby Boomers only care about brands that have created value for them in the last 24 hours. This is backed up by the Luxury Institute’s annual 2019 State of the Luxury Industry survey of affluent consumers. Brand heritage and history now rank sixth to superior quality, superior customer service, superior design, superior craftsmanship, and exclusive products. The result is brand history as a relevant pitch is lessening in importance. Relevancy and reinvention are the new keys to rapid growth aimed at the soon-to-be dominant affluent millennial population. The need for a fresh, dynamic creative view that fuels growth is insatiable.


2

The luxury experience market is expected to have an 18% growth rate.


3

A young, dynamic and expanding GEN Y and GEN Z that is more experience and socially driven

They like to hang out in person and are more easily drawn into a store by a concept instead of products. Millennials worldwide want to try something different in order to stand out in their social circles. They want to be the first ones seeing an exclusive setting, capturing it and sharing it on every digital platform that they have presence on. Consumers demand a curated brand experience so that they get the best of time, value and money. Younger generations will be the primary engine of growth in the coming years. Generations Y and Z will represent approximately 55% of the 2025 luxury market and will contribute 130% of market growth between now and then, offsetting a decline in spending by older consumers.They represented 47% of global personal luxury goods consumers in 2018, accounting for one-third of sales.


The Jo Malone London Tea Room appeals to the five senses by leaving guests completely immersed in their experience. A cooling rooftop will spray classic Jo Malone London perfumes, alternating with the time of the year. Summer will smell like Red Roses, Spring will be filled with a Peony and Blush Suede scent, Fall will be welcomed with Honeysuckle and Davana and the merry winter months will smell of comfort with English Oak and Hazelnut. The music will be a blend of jazz and blues from the 1930s, 1940s and 1950s, intended for guests to relax but also leaving moments for swaying.


The Jo Malone London Tea Room spans across 2520 sq. ft in area on the third and upper most floor of the Jo Malone London townhouse. The entrance to the tea room will lead up to a reservations desk adjacent to the waiting area. Five two-seater tables extend into a hall of six four seaters tables and two four-seater sofas. The balcony overlooking the street view accommodates six two-seater tables. Seating 54 people at any point of time, this space has a mix of outdoor seating, sunlight indoor seating and complete indoor seating. Shelves for product display are strategically placed near the entrance of the tea room, allowing guests to glance at them on their way in and out of the tea room. The kitchen, storage and storage room are located on the right-hand side of the entrance whereas the rest rooms and powder rooms and located on the left side of the entrance.


From the moment they enter they tea room, they will be engaging with different elements unified with the brand’s aesthetic. The visuals are of a beautiful sunlight rooftop where one can find an exclusive space to unwind and rejuvenate. Black and white, stripes, polka dots and florals are elements that are immediately noticeable, and the same will be mirrored in the presentation of the afternoon tea room service.


THE FUTURE CUSTOMER

The luxury landscape is changing and so is its customer. The new luxury customer is getting younger, between the age groups of 16 to 22 (Gen Z) and 23 and 36 (Gen Y). They are either starting their careers or have already reached the peaks of their career, all resulting in financial independence. Having grown up in a digital era, their expectations from products and services is highly immersive and integrated. The spending powers of Gen Y, otherwise known as millennials, are rapidly increasing – leading to higher affinities towards luxury products and services. While branded luxury items remain on their wish lists, they also inch towards experiences and travels. Their purchasing mindsets are high in terms of status and uniqueness.The social media revolution of showcasing one’s lifestyle as perfect is still a common behavior among this segment – and they are able to do so with the help of elaborate videos, live updates, stories and posts on Instagram, Facebook and Snapchat. They see themselves creating their own personal brands and influencing micro audiences that share similar interests and aesthetic identities. Experiences represent unforgettable occasions for this audience, and they are willing to spend larger parts of their incomes towards it. They want to be a part of the brand’s storytelling and feel inspired by the message that are being conveyed to them. Extending this idea, also results in personalization and customization – not just in terms of products but also in services.


The Aesthete Quintessential Host I Candle Hoarder I Serveware Lover

Age 45

Shopping Mantra "Simplicity is everything."

City Nottingham Income £ 70,000 Occupation Owner of a stationery store Interests Looks for an escape to a cozy restaurant or cafe to rejuvenate.

Media Consumption Magazines, Email promotions and television commercials. Social Media Behavior Loves creating organization boards on Pinterest, saves dinner decor pins, follows updates on Twitter and stays in touch with high school friends on Facebook.


The Affluent Status Quo Maintainer I Orange Flush Tea Sipper I Trend Setter

Age 36 City Hyderabad, India Income ÂŁ 1,500,000

Shopping Mantra "Fluidic, textured and flattering for days." Media Consumption Netflix, Emails, Social Media Ads

Occupation Actor Interests On a hunt for Instagram-able places, accessory shopping for her dog, sipping mimosas with girlfriends.

Social Media Handles her own lifestyle profile on Instagram, uses Snapchat to snap her dog.


The Well-Rounded Omnivorous Reader I Opportunity Hunter I Information Gobbler

Age 29 City Hong Kong Income ÂŁ 90,000 Occupation Actor Interests Enjoys local cuisines, reads mostly sci-fi and mystery novels, looks for an excuse to escape to the hills, first to visit the new place on the block.

Shopping Mantra "Trendy, statement pieces with form and functionality." Media Consumption Netflix, Amazon Prime, YouTube, Television and Magazines Social Media Behavior Shares pictures of food and travel on Instagram, and personal travels on Snapchat with his close circle.


Rhubarb was founded in 1996 as a luxury events business and grew exponentially into becoming one of the world’s leading hospitality groups. With an international portfolio of iconic properties and event spaces in the US and UK, they have gained recognition as being creators of exceptional culinary memories. Having over 20 years of experience in creative design and detailed event planning, they have mastered the art of providing a deliciously different flair.


From private celebrations to elegant weddings to cultural concerts, the brand makes an impressive UK portfolio. They manage properties and events such as The Sky Garden, Royal Ascot, restaurants and cafes in Royal Albert Hall and the Mamma Mia Party in UK. In 2017, the brand entered a new territory, securing three flagship projects in Hudson Yards in New York City. Collaborating with Michelin star chefs and world-class interior designers, the company will see two destination restaurants, two bars and an events space come to life by the end of 2020. They have offices owned and operated in London and New York City with a highly skilled, experienced and creative set of individuals. Over the years, Rhubarb has earned the reputation of being London’s hospitality industry’s elite.  The reason for this is the hard work and shared ethos of the brand, whose mission is to creating edible stories for all its customers. The company thrives on gaining unrivaled skill, knowledge and perseverance. Their values complement Jo Malone perfectly and will result in a collaboration that will bring their expertise to life. Passion Rhubarb is passionate and takes pride in its people, product, Events and Locations Creativity Rhubarb is proud that its creativity and innovation lies at the heart of what it does. Focus Rhubarb prepares plans to support strategic growth across all of its business channels Humility Rhubarb celebrates its successes but always remains humble and respectful. Excellence Rhubarb strives for consistent excellence in all it does and supports this with a ‘hands on’ approach.  


Foot Fall Rhubarb has helped bring in a substantial amount of footfall to all the events it has hosted in London. The Royal Albert Hall had 1,500,000 annual visitors across its 5 restaurants and 16 bars for the 400 shows, 800 conferences it held. This is a place of extreme cultural importance not only to London and it is inviting people from all over the world to witness its splendor. The Sky Garden had 1,200,000 annual visitors amongst its 2 restaurants and 2 bars. This venue has a mix of fine dining restaurants, relaxed and all-day spaces, a day bar, and a premium evening bar.    The Royal Ascot is a prestigious event that invites the world’s elite including the Queen of England. Here, Rhubarb serves 30 private boxes and 2 members club with exclusive Michelin star dishes, bespoke catering and private catering for the Royal family.The Saatchi Gallery’s 192-seater bar, restaurant, and alfresco terrace pulled in 600,000 visitors in 2018.

Future Growth Rhubarb will make history in March 2020 at the tallest outdoor observation deck in the Western Hemisphere, named Edge. Edge will accompany a 10,000-square-foot restaurant named Peak and event space managed by Rhubarb. With a record-setting 1,131 feet above the ground, Edge and Peak will reveal never-seen before views of the city, New Jersey, and New York State up to 80 miles. This property will be a major focal point of Hudson Yards, the 28-acre neighborhood on Manhattan’s West Side that brings together fashion, dining and cultural experiences. Rhubarb’s presence here helps their future outlook multi-fold. They too, like Jo Malone London have planned on entering new territories and look forward to providing experiential settings. Their shared vision, mission and values makes this a partnership for success.


Operations Manager Recruitment, Hire and Training of service staff On-boarding a culinary director and executive chefs Event planning services Venue booking Collecting Customer Data Event execution Sales tours for event booking


Ownership Location Provider Cost of Goods, Operating Expenses, Technology and Systems, Transport and Logistics Fulfillment of packaged tea and serve ware Marketing and promotion across digital and traditional platforms Utlization of customer data for future communications


RESERVATION POLICY

Hours of Operation 11 a.m. to 6 p.m. Seating Timings Offered 11 a.m. to 1 p.m. 1:30 p.m. to 3:30 p.m. 4 p.m. to 6 p.m. The gap in between tea service is to cater to specific needs of expected guests and prepare for their arrival. Bookings can be made upto a month in advance on jomalone.com/tearoomlondon or by calling the Jo Malone Tea Room at +44 7194 321122. Credit card details will be held to secure the reservation, but the guest will not charged. Cancelling the reservation is free of charge 72 hours prior to the reservation. Any cancellation or no show will result in ÂŁ 25 charge per person. Dietary specifications will be taken at the time of booking the reservation. Any events hosted at the Jo Malone Tea Room will take place after 6 p.m.


A capsule collection of serve ware -Â dessert plates, tea pots, cups, saucers, threetiered dessert towers, creamers, napkins and silver ware with customizations of patterns and monograms available An exclusive Jo Malone London Tea collection available in 4.4 oz and 2.2 oz with customizations of sizes, patterns and monograms available. Mimosa and Cardamom, Signature Earl Grey Blend, Orange Blossom, Red Roses, Pomegranate Noir, Royal English Breakfast, Lavender and Vanilla Infusion, Vintage Gardenia, Mint Oolong and Mighty Matcha are the eleven specialised flavors that will complement the delicate dessert platters.


THE ART OF GIFT GIVING


PLACEMENT Online Jo Malone London Website Jo Malone London Tea Room In-store Jo Malone Regent Street Jo Malone Sloan Street Jo Malone Covent Garden Jo Malone Columbus Circle, NYC Duty-Free Heathrow Airport, Terminal 2

Jo Malone London Tea Room will adopt a multi-channel placement, where serve ware and tea will be available on Jo Malone London’s e-commerce platform. This is an opportunity for customers to shop for the product online if they are not in close physical proximity to the product. As the customer hovers over the Scents and Products tab, and chooses the Home option from drop down menu, they will find a tableware option among candles, diffusers, room sprays, linen sprays, scent to go and decorate with scent sub-tabs. On clicking Tableware, they will be directed to the products offered to them by Jo Malone London Tea Room – a capsule collection of dessert plates, tea pots, cups, saucers, three-tiered dessert towers, creamers, napkins and silver ware. Of the several pattern palettes offered by the brand, customers can customize the collections to their tastes and preferences. They also have the option of getting their initials embossed on the dessert plates and saucers.In the same Scents and Products tab, an option of Jo Malone London Tea will be present. On clicking this option, customers will be directed to a page with a selected range of tea from the Tea Room. Here too, customizations will be available based on sizes 2.2 oz and 4.4 oz.The capsule tea collection and tableware will be available for purchase at the Jo Malone London Tea Room in the Townhouse. Orders and customization requests will be taken by a sales representative and processed thereafter. They will also be available in specific Jo Malone boutiques in Regent Street, Sloan Street and Covent Garden in London; and the Columbus Circle boutique in New York City. The Traveling Townhouse located in terminal 2 of the Heathrow International Airport will also house Jo Malone tea tins and serve ware in order to attract the large number of travelers making halts in the city.


COMMUNICATION OBJECTIVES AND MIX


Brand Oriented

Objective Brand Awareness Brand Differentiation Brand Relevance Tactics Video campaign Print Ads Blog Posts

Socially Oriented

Objective Collaborations Connections    Tactics Influencer Marketing Social Media Ads Events Public Relations


Pre-Purchase Oriented

Objective Create enquiries Make reservations Form purchase intentions Purchase facilitation Tactics Emailers, Public Relations, Launch Event

Post-Purchase Oriented

Objective Trial and Repeat Amount and Frequency 

Tactics Tea Room Ads Serveware Ads Customer Events


COMMUNICATION MIX

PRIMARY MEDIUM

SYNERGIES

Print

Public Relations

In-Store Promotions

Launch Event

Direct Mail

Micro-Influencer Events Customer Events Customer Relationship Management

SECONDARY MEDIUM Website Talk of the Townhouse Magazine Social Media: Instagram, facebook, Pinterest, Twitter Emailers


Public Relations The current agency, Universal McCann will be carrying out PR activities for the Tea Room along with media buying and planning. Announcement of the launch through press releases and magazine articles in leading lifestyle and culinary magazines like Conde Nast International, Bon Appetit, BBC Good Food, Travel and Living, Lonely Planet and Great British Food Magazine will be staged. At the same time, the launch event and several other business and industry and influencer events will be covered to maintain the credibility and increase awareness to the extension.

Customer Relationship Management The journey of the customer does not end on their first visit to the Jo Malone Tea Room, but will continue with various communications and interactions initiated by the brand. Customer information such as food and drink preferences, previous order values and accompanying guests will be recorded. This information will live in a database that will be used for communication of special promotions, events, and new product launches. Custom and lookalike audiences will be built on Facebook Ads Manager so that tailored content reaches them, further inducing purchases or visits to the Tea Room. Customer relationship managers will be appointed to interact with the customers and foster deep and meaningful relationships. Jo Malone Tea Room will look for candidates that are well spoken, well read, sensitive, tolerant, respectful, humble and resourceful. They need to be an ideal fit for the brand’s goals and future outlook. Investment in technology and databases will be made by Jo Malone Tea Room, with yearly repairs and upkeep to ensure smooth use and flow of data among the Tea Room and various channels of product distribution and service.


55% Primary

30% Secondary

£740,460

£ 444,276 15% Synergies BUDGET ALLOCATION

£ 296,184

£ 1,480,920

In 2018, Jo Malone dedicated only 1.7% of its overall revenue towards marketing and promotional activities. However, as the brand is entering the hospitality, catering and experience industry for the very first time, it plans on dedicating 15%bitofofits revenue Add a little body text towards marketing. The promotional budget for the first year (2021-22) will be £ 1,480,920 spread across the primary and secondary mediums, and synergies. Primary channels such as direct mail and print are 50% of the budget, secondary channel reserve 30% of the budget and the remaining 20% is for synergies that perfectly complement the primary and secondary mediums. These include events hosted by Jo Malone Tea Room for launch events, business and industry events, and influencer events. The breakdown of the promotional budget year on year will give better insight on the allocation towards specific platforms and efforts.


An Aesthetic Art Attack Interviewees from the primary research also gave insight on what kind of events people in their age group will prefer. Painting, illustration and watercolor classes were a top choice as florals and illustrations are a part of the brand’s identity. While one part of this event will let the guests get creative, the other part of it will host an artist that will personalize their Having Jo Malone gift boxes with motifs, illustrations and patterns.


Reading the Classics, Living the Classics What is an afternoon tea without some talk of literature and history? Another event Jo Malone London plans to host is a book reading of classics from Jane Austen, Charles Eliot, Virginia Woolf and many authors who have influenced the British culture in an impactful manner in the past. This will also lead to a screening of those classic movies, all based on a poll of most guests visiting. A very high-end movie night on a rooftop, but with better palates and the best ambiance.


Cocktail Hour, Jo Malone London Style Some of the events at Jo Malone London Tea Room will be re-created from previous successful and memorable ones witnessed. A perfume inspired cocktail party will be one such event, where guests will not only learn how to make a fancy cocktail but also learn about mixing edible flavors complementary to the brand’s perfumes. Having partnered with Denis Broci, Head Barman at London’s renowned Claridge’s Hotel; Jo Malone London Tea Room will bring him back, this time in a much more exclusive setting.


The Garden Story Jo Malone London will think of the founder when they plan their flower arrangement workshop. She started off as a florist before she founded Jo Malone, and the glasshouse resembling tea room is the best space to hold an inspired event such as this. So many aesthetes look for the perfect floral center piece, and the Talk of the Townhouse gives its online readers great tips on how to perfect the art of flower arrangement. By unifying both ideas, the Jo Malone London Tea Room will host a floral decoration workshop. Some other events will showcase private concerts of jazz and blues bands, a string quartet, poetry reading, stand up comedies and artist showcases. Including the events mentioned above, a total of 10 events will be hosted by the Jo Malone London Tea Room every year, for a capacity ranging between 15 to 60 people. Event covers of ÂŁ 50 will be charged when guests reserve their place for the events. Their dietary requirements will be taken into consideration at the time of reservation. Any after 72 hours from the event time, will lead to a ÂŁ 25 cancellation fee. These events are a great platform to test seasonal teas and treats, which will let the executive chef and culinary staff provide a more memorable experience.


Of Fame and Fortune Jo Malone’s Talk of the Townhouse magazine has a section dedicated to horoscopes along with perfume pairing for the signs. This went onto becoming a successful collaboration between Jo Malone London Girl, Karen Olsen and Duffy, a jeweler from London. Together they created new perfume bottle designs with the tops matched the birthstone and the scent matched the zodiac sign. Since astrology is such a big part of the brand, a tarot card and crystal ball reading seems fitting. A closeknit group of people will discover their future while sipping on comforting Jo Malone London brews.


The Jo Malone Tea Room brings in revenue from products, services, events and other activities that complement it. Tea Tins, serve ware, customization comprise of sale from product, which is predicted to increase year on year by 20.6%. A further break down of increase in pricing of products and quantities has been provided. Jo Malone tea Room services will see an increase in prices, event booking and services fees and catering prices Across the three years, there has been a 5% increase in prices of all products and a 20% increase in the quantities for sale.

Across the three years, there has been a 5% increase in prices of all products and a 20% increase in the quantities for sale.


Sale from services in increasing year of year with a growth rate of 15% in 2022-23 and 18.4% in 2023-24 respectively. The increase in prices of afternoon tea services, alcoholic and non-alcoholic beverages is 10%. Event cover charges and fees for event booking per event has also increased 10% year on year.


The profit and loss for the years 2021 through 2023 projects a profit after operating expenses and tax at £ 518,951. This in comparison to the higher profits in the consecutive years seems low as there is a fixed cost of interiors and fixtures involved. Corporate taxes payable to the Government of UK are 19% from the profits generated in the


CONCLUSION

The next generation of customers are experience driven and prefer more than the product in retail spaced. They have a need to be consumed, educated, and constantly inspired by new ideas and movements. With immersive settings taking over the previous ruling dining and catering services, Gen Y and Gen Z want to interact with people and the brand on a much more personal connect. Their resonance with the brand and its product offerings has to be translated in areas more than just retail spaces .With Jo Malone’s identity already having positive connotations with everything experiential, the brand can step towards reimagining its future by increasing touch points with its customers in physical spaces more than just its stores. From the research findings, it is clear that the brand is approaching the new decade with a fresh set of ideas that will uphold its image in the market. From appointing their first ever male brand ambassador and advocating inclusivity to combining technology with their fragrance expertise, the brand is set on new paths and them entering the hospitality industry is one such. By paying an ode to London, its vibrance, zest for life and cultural extravaganza, Jo Malone celebrates its heritage that it is most proud of. Finding home in tis global creative headquarters, Jo Malone London Townhouse, this brand extension into hospitality has clearly defined purpose and a vision: to perpetuate the legacy of Jo Malone London and glorify the British heritage by becoming an established global reference in the hospitality industry.  With a capsule collection of elegantly designed serve ware and tea tins that will perfectly complement the afternoon tearoom service, Jo Malone London tea Room strives to achieve commendable presentation to their guests. The art of gift giving will continue its journey with gifts for him, her and the home.


CREDITS

Creative Direction Aishwarya Jonnalagadda Animation Ben Batchelder, B.F.A. Illustration, SCAD Savannah  Illustration  Ben Batchelder, B.F.A. Illustration, SCAD Savannah Nono Flores, B.F.A. Illustration, SCAD Savannah  Pattern and Packaging Design Chhavi Kashyap, M.A. Fibers, SCAD Savannah  Interior Design Crystal Martin, M.F.A. Interior Design, SCAD Atlanta  Graphic Design Monica Poole, B.F.A. Graphic Design, SCAD Atlanta  Produced by Aishwarya Jonnalagadda  Special thanks to Carin Wightman Professor of Luxury and Fashion Management, SCAD Savannah  Stephen White Alumni Mentor, Luxury and Fashion Management, SCAD Savannah  Eric Hunicutt Communications Coach, SCAD Savannah


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Profile for Aishwarya Jonnalagadda

Jo Malone London Tea Room  

Jo Malone London Tea Room  

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