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Professor Alessandro Cannata FASH 763 Huiran Zhao Nanthitha Shanmuhasundaram Rongdan Hu Rutuja Mahajan Yinuo Pei


























Fendi, the 92-year-old luxury fashion house has garnered attention throughout the world for its flamboyant yet chic design, both in garments and accessories. Fendi has maintained the colorful and fun aesthetics throughout its product offerings. Since the brand wishes to expand its reach, it will re-introduce fragrances along with the launch of its beauty line. Fendi will be introducing fragrances, lipsticks and glosses, nail lacquers, and eye shadows this spring season. This product offering will help attract new customers as well as act as a bridge line for aspiring customers. With digital media ornamenting the advertising industry, the aim of the brand Fendi is to formulate a distinctive “Integrated Marketing Communication Plan” to ensure a wide reach of its new product launch. The plan should also promote Fendi’s key product, the two in one Lipstick + Fragrance, called Duo Essenziale. To formulate a perfect marketing synergy and launch a successful campaign for Fendi’s product launch, we have undertaken both primary and secondary research. Our analysis comprises of qualitative and quantitative research into the Fendi customers, as well as targeted cosmetic market. We have created sample advertisements for digital, print and out of home advertisings.


Fendi is backed by LVMH and is financially stable to allot a large portion of its budget for marketing purposes. Fendi’s key product would be Duo Essenziale. It is travel convenient and the two products are detachable and interchangeable with any Fendi lipstick color and fragrance. Partnerships with large retail chains all over the world and a wide international presence. LVMH, Fendi’s parent company owns the largest retail chain for beauty and fragrances, Sephora, this ensures a successful distribution channel.


Fendi is an established brand with a wide product offering and an image for being fun, trendy, modern chic, bold, powerful, perky, and colorful. Even during the decline of high-end fashion market this year(2016), the brand has had tremendous success with a turnover of over 1 billion Euro in the third quarter itself (highest till date). To maintain or raise its position Fendi is obligated to bring in more customers and to achieve that the brand must invest in an extension. The prediction of 2% yearly growth in both beauty and fragrance industry till 2020, gives Fendi an opportunity to invest in a new product category. Fragrance and Beauty go hand in hand thus, Fendi will be launching a Beauty line along with the revival of its Fragrance line. The Beauty products that will be launched are Lipsticks and Lip glosses, Eyeshadows, and Nail Lacquer. Four new trendy fragrances will be launched keeping in mind the target customers (aged 25 to 40 upper-class women). These customers are trendsetters who appreciate quality craftsmanship and are willing to experiment with unique, bold, and colorful products. The highlight of both these lines is the interchangeable two in one Lipstick + Fragrance, Duo Essenziale. The brand’s new products will be launched globally using their existing distribution channels as well as new ones like Sephora. The advertisement campaign will be launched a month prior to the launch of Fendi Beauty and would be consistent with Fendi’s image of Chic and Fun. The campaign would be launched globally since the beauty and fragrance line would be available throughout the world

FENDI Flagship store, ROME

at the same time. The campaign would surround the concept that Fendi’s makeup and fragrances are available to match numerous moods of customers, and it will spread the color and happiness (the feelings associated with the brand name).



The cosmetics industry is forecasted to have an increasing growth with an estimated yearly revenue of $429.8 billion by 2022. The growth rate of the industry is estimated at 2% annual increase for the next 5 years. The industry includes make-up, beauty products, and fragrances. The industry thus has a wide product range for future expansion of any brand. The main distribution channels for this industry are brick and mortar stores operated by both luxury fashion brands and cosmetics brands (Lancôme, L’Oréal), Specialty stores that sell cosmetic products and Departmental chains that sell numerous product categories. There has been a considerable increase in disposable incomes for the past decade in countries like China and Japan. The Asian market is predicted to increase their purchase of cosmetic products. Consumers lifestyles are changing and this is having a positive impact on the cosmetic industry. Rising GDP’s of numerous regions has led to luxury product purchases. The cosmetic industry is a value addition product and falls under hedonistic entertainment, paving way for customers to make more impulsive and sought out purchases. Even during recession consumers may be price conscious but still make purchases, as cosmetics and fragrances have become an essential factor for carrying out daily routines. Since consumers are trying to find products that have a tagline “natural”, it opens a new path for brands to invent more products that use natural ingredients.


Founded by Adele and Edoardo Fendi in Via del Plebiscito, Rome. A leather goods shop (secret fur workshop)

The incorporation of the double ‘F’ logo.


Entry of the Five Fendi sisters. ‘Five fingers of a hand’.

Introduction of gloves, ties, eye-wear, scarves, jeans and home furnishings. Fendi’s first perfume line-Fendi for women.





Creation of the first couture collection. Garned attention of the world. Marvin Traub, Bloomingdales’ President brings Fendi bags to the USA for the first time.

1964-1965 Opening of a store on Via Borgognona, Rome. The sisters got Karl Lagerfeld into the business. Fendi (Largerfeld) revolutionizing the fur industry.




Karl Lagerfeld launched Fendi’s first Ready to wear collection.

Selleria collection by Adele (Handmade collection of bags). Great success with the all the bags flying off the shelf.

Introduction of men’s line. Silvia Venturini Fendi joined Fendi.

LVMH became the sole owner of Fendi.



1997 Famous Fendi Baguette was introduced. It sold over 100,000 pieces in the first year.

2009-2016 Discontinuation of all perfume lines. Launch of Fan di Fendi (2010) Fendi owns 230 stores worldwide. Supplies to numerous luxury retail stores and E-commerce stores.



Haute Couture Woman’s ready to wear Men’s ready to wear Sunglasses Fashion jewelry Scarves Bags and Bag charms Shoes Belts Books Timepieces Kid’s ready to wear Accessories Home furnishings


INTEGRATED MARKETING COMMUNICATION IDENTIFY THE BUSINESS ISSUE * Attract new customers using this bridge line. * Introduce the products that would be launched. Resurgence of Fendi Fragrances * Ensure the new edgy and trendy scent of Fendi’s perfume is conveyed. * Reposition the appeal of fragrance to divert from the previous line of “leather scent” perfumes, which appealed only to the baby boomers. With numerous competitors, it is becoming difficult to penetrate new markets unless a brand is already prominent in its industry or has enough budget to market its existence. Since Fendi is an established brand with a revenue of over 1 billion Euro, it is stable enough to expand its business. Keeping Fendi’s aesthetics in mind, the brand wishes to expand by venturing into a new territory, Beauty by Fendi, with the first series named Moods. Fendi’s previous attempts in launching and maintaining a fragrance line has proven to be a failure, hence it was discontinued. Thus, it seemed a perfect fit to revive its fragrance line in the process. The brand also understands that the launch of Beauty and Fragrance products must be global. KEY ISSUES: The introduction of Beauty by Fendi is the main objective along with highlighting the products offered in this category. It is also important to market the product as trendy, colorful, and fun along with ensuring the reach of this launch to aspiring customers. Duo Essenziale should be in the spotlight and the relaunch of Fendi’s new Fragrance line, with trendy scent, should be notified in the process.




COSMETICS Wide color bar for self-expressionism and Individualism Worn to exhibit confidence

Since beauty products must be launched globally at the same time, Fendi’s advertisement campaign will be generated to attract a global audience and will be applicable to multiple platforms. Fendi’s brand image of fun and chic would be consistent throughout the campaign. The campaign will highlight the Duo Essenziale (USP)

Natural and light feeling when worn

as well as introduce the new products offered under Fendi’s Beauty and Fragrance line. Using numerous digital


merous moods. So, by purchasing or gifting Fendi’s products a customer can spread the colors and happiness

Unappealing odor (smells like leather) Did not cater to target customers Unattractive packaging

media and print platforms the campaign will show that, Fendi has a wide color bar to match its customers’ nuaround. Using numerous digital media and print platforms the campaign will show that like a diamond, even our makeup can spread happiness in our customer’s life. The advertisement campaign will show the product in use and will include some evocative cues to occupy the mind space of Fendi’s target customers.

Speciality stores 18

Speciality stores

Speciality stores 19




High level of brand recognition and a strong creative individual (Karl Lagerfeld)

Attract new customers using these bridge line products

Financially stable (2016 sales turnover highest till date)

Booming cosmetic industry (Increased growth approximately 2% annually

Wide geographical presence (230 brick and mortar stores worldwide)

till 2020)

Multiple distribution channels

Future innovation in organic cosmetics

Customer loyalty, this ensure customer purchase

Chance to bring in more celebrity endorsements

Part of a larger organization (LVMH) so financial backing and stability are provided,

Vastly growing millennial population

along with an opportunity to negotiate a licensing deal with Dior as well as sell at Sephora

Increasing customer spending power

and DFS


WEAKNESS Global economic crisis Inexperienced in cosmetic manufacturing and distribution

Fear of counterfeit products

Smaller luxury brand compared to its competitors

Intense competition from luxury brands and cosmetic specialized brands

Lack of experience in licensing product manufacturing

Change in cosmetic trends

Lack of right creative team for formulating the desired cosmetics and fragrance



BURBERRY apx. Annual Revenue - Euro 2.9 billion


Burberry was established in 1856 by Thomas Burberry as an outdoor clothing store. Now it is a British luxury fashion house with John Peace, chairman of standard chartered bank, holding the majority share. Customers associate and recognize Burberry for its iconic checks. Burberry is widely known for its trench coats and quality

Fendi’s competitors are all luxury fashion houses that started out with clothing or accessories and then expanded into fragrance and cosmetics. These competitors regularly launch a global marketing campaign for their fragrance and cosmetics line. The advertisements campaigns are consistent with their image and are marketed through digital and print platforms. The brands have consistently leveraged social media platforms to their benefit. All these brands have promotional activities during certain seasons and only for selected items. There exist other indirect competitors like L’Oréal, Lancôme, Bobbi Brown and so forth. The indirect competition is bound to affect Fendi, however, they might not have a large impact like the ones direct competitors can cause.

products due to its association with 20th century garment ventures. The brand evokes luxury, modern classic, functional, and elegancy in the minds of customers. Burberry has had its issues with brand image and successfully overcame it. The first fragrance by Burberry was launched in 1981 and the color cosmetics line was introduced in July 2010. Burberry has branded stores and franchises around the world and sells through concessions in third-party stores.

GUCCI apx. Annual Revenue - Euro 4.03 billion

Keeping in mind the success of its competitors in both distribution and marketing, Fendi plans on using a synergy of digital and print media to reach and attract large number of customers. Fendi will not be discount-

The House of Gucci was founded in 1921 by Guccio Gucci in

ing products in its launch year, however, the brand will sponsor free samples.

Florence, Italy. The brand is currently owned by the French holding company Kering. Gucci is the biggest selling Italian brand and is known for its quality craftsmanship. The brand introduced their first fragrance in 1975 and its Beauty line was launched very recently, in the year 2014. The brand is perceived as classy yet sexy, modern chic, powerful and ravenous for dominance. The brand garners customer loyalty and is widely popular all over the world. Gucci is on its rise


when it comes to the beauty industry.


CHANEL apx. Annual Revenue - Euro 5.85 billion A privately held French luxury brand, currently owned by the Wertheimer Brothers. Chanel was founded by Gabrielle Chanel AKA Coco Chanel in 1910. The House of Chanel is known for its little black dress and its perfume No.5 de Chanel. The brand


evokes classy, powerful, elegant and flamboyant feel in the minds

apx. Annual Revenue - Euro 1.14 billion

of customers. The fragrance line was launched in the year 1921 and the beauty line was launched in 1924. Chanel beauty and fra-

YSL is a French luxury fashion brand founded by

grances are few of the bestselling products in the cosmetics mar-

Yves Saint Laurent and his partner Pierre Berge in

ket. In luxury beauty and fragrance market Chanel has captivated

1961. Currently it is under the hood of Kering group

consumers using emotional and biological cues like intimacy and

and is a subsidiary of the Gucci Group. YSL’s first

sexiness. Consumers have a high recall percentage for Chanel’s

perfume was launched in 1971, which was for men.

Beauty and Fragrance.

The brand from then on added numerous fragrances

DIOR apx. Annual Revenue - Euro 41.6 billion Dior was founded by Christian Dior in 1947. It is a French luxury brand at present under the LVMH group. Dior first introduced his line of clothing, and in the same year launched his perfume line with Miss Dior perfume. 1955 marked the year of Dior’s entry into Beauty products with the launch of its first lipstick. The brand evokes an image of energetic, luxurious, sexy and elegant women. Dior has a wide collection of fragrances and beauty products and they are widely recognized and used by consumers. Like Chanel, Dior has a high brand recall value


when it comes to beauty and fragrance industry.

to its portfolio. YSL launched its first cosmetic in the year 1978 and from then on it has become widely popular. Their Iconic golden packaging enhances the appeal of their cosmetics line. The brand elicits an image of ravishing, sexy, modern classic and boldness.

Chanel Wertheimer brothers (Paris, France) Target market

Dior LVMH (Paris, France)

Women: 20 – 45 Women: 25 – 45 Upper class Top of social hierarchy Personality: Elegant, modern, Personality: Modern, elegant, savvy, confident, well educated, polished, and sexy. classy, confident and trend setters.

Burberry John Peace (London, UK)

Gucci Kering (Florence, Italy)

YSL Kering (Paris, France)

Women: 18-40 Upper class Personality: Classy, educated, unique, chic, elegant and polished.

Women: 20 – 50 Top of the social hierarchy. Personality – classic yet modern, elegant, original, unique and appreciates heritage.

Women: 20 – 50 Top of the social hierarchy. Personality – classic yet modern, elegant, original, unique and appreciates heritage.

Product mix/price Cosmetic: Eye, Lips, Nails, Face, Cosmetic: Eye, Lips, Nails, Face, Beauty creams, brushes. range Beauty creams, brushes. Fragrance: 8 Fragrance: 16

Cosmetic: Eye, Lips, Nails, Face, Cosmetic: Eye, Lips, Nails, Face, Beauty Cosmetic: Eye, Lips, Nails, Face, Beauty Beauty creams, brushes. creams, brushes. creams, brushes. Fragrance: 4 Fragrance: 6 Fragrance: 15

Price range

Eyes: $29 - $62 Lips: $29 - $34 Nails: $23 Face: $30 - $68 Fragrances: $42-$125 ($2800 limited)

Eyes: $28 - $80 Lips: $30-$37 Nails: $28 Fragrances: $55 - $200 ($2100 $3800)

Eyes: $28 - $62 Lips: $30 - $37 Nails: - $27 - $28 Fragrances: $48 - $185

Eye: $28 - $65 Lip: $32 - $42 Nail: $29 Fragrances: $72 -$200

Eyes: $29 - $95 Lips: $30 - $40 Nails: $28 Fragrances: $25 - $250($2900 limited)

Distribution chan- Retail: 310 brick and mortar stores Retail: 210 brick and mortar stores around the world. nels. worldwide. Sold at other retail Sold at other speciality and departmental stores. chains and speciality stores. E-commerce: sold on and other luxury retail E-commerce: sold at websites. and other luxury retail websites.

Retail: 498 brick and mortar stores Retail: 540 brick and mortar stores Retail: sold at YSL brick and mortar stores, worldwide. Sold at other retail chains around the globe as well other local fran- and other high end retail and departmenand specialty stores. chises and luxury retail chains. tal chains.

Market presence (in order)

In 52 countries and focus is on Asian, Asia followed by USA is the Target geo- Present in 31 countries. European & American Continent. graphical area. Strong presence in USA, Europe, Asia


USA, Europe, Asia, and certain In 93 countries, all around the world. middle east countries. Highly involved in Europe, Asia and USA.

E-commerce – Burberry website and E-commerce:, few other on- E-commerce: Sold at as well as other luxury retail websites. line websites. other luxury retail websites.



NAME: Shivani Rao AGE: 32 years LOCATION: New Delhi OCCUPAION: Dentist SALARY: $90,000 + per annum

DEMOGRAPHIC AND GEOGRAPHIC Dedicated to bringing trendy, fun, colorful, modern classic pieces to the world of fashion, Fendi has garnered attention from women aged 25 to 40 years. For the extension, the brand will continue to target women of 25-

NAME: Shabnum Hiremath

40 years. These women hail from cities or love to live a luxury life even in the suburban areas. They are upper

AGE: 40 years

class women who are well educated and mingle with a large crowd. Fendi also understands that middle class


women can afford luxury cosmetics, and will ensure not to dissuade them in purchasing Fendi’s cosmetics.

OCCUPAION: Educator SALARY: $60,000 + per annum

LIFESTYLE/PSYCHOGRAPHICS These women are trendsetters who are willing to be bold in expressing themselves. They have a unique sense of style and love quality craftsmanship. They are fun and at the same time elegant in nature. Fendi’s target wom-

NAME: Yukari

en are willing to try new things, have a craving for independency, and are adapters of modern chic. They are

AGE: 28 years

powerful yet inherently perky and playful in nature. These women travel a lot, and have personal and business


meeting often. They love a good vacation in exotic places as well as love the hype of a city.

OCCUPAION: Motion media designer SALARY: $60,000 + per annum

BEHAVIORAL Fendi’s target customers are women who are active on social media and are comfortable with use of digital media in their day to day activities. These women love having an off-work life and make the most out of the

NAME: Flavia Natalini

opportunities given to them. They are successful in a man dominated world and ensure their voices are heard

AGE: 26 years

loud and clear. They sometimes are impulsive and love the cascade of emotions associated with it.

LOCATION: Paris OCCUPAION: Psycology SALARY: $100,000 + per annum



RESEARCH GOALS The foremost factor of the research was to confirm what customers wanted from a cosmetic or fragrance. As well as the willingness of the customers to try new products and brands. Another important goal was to analyze if customers are aware of the brand Fendi.

To understand Customer behavior and preference Frequency of usage Purchasing habits Preferred medium of purchase Who and what influences their purchases Expectations they have from beauty products Willingness of customers to experiment with brands and products Their opinion on launch of Fendi cosmetics To Examine Brand awareness



Both primary and secondary research was conducted to accomplish our objectives. Using internet platforms for various brands we began with the secondary research on 1. Fendi and its competitors, along with each of their aesthetics to understand Fendi’s position in the market. 2. Customer profiling and target market identification helped in understanding our target customers and what grabs their attention. 3. The extension market of fragrance and beauty was researched on to understand if the extension was a viable choice. It also assisted in understanding trends and future forward facts of this industry. The need for both qualitative and quantitative data in a primary research was eminent. First step was to gather qualitative data to form quantitative analysis questions. QUALITATIVE ANALYSIS To gather concrete questions for quantitative analysis the use of secondary research was the base. The information was gathered using internet searches on 1. Information provided by opinion leaders/influencers such as bloggers, vloggers, social media stars, and interviews from magazines. (APPENDIX-III) 2. Different questionaries’ from previous surveys undertaken by various cosmetic brands


The majority of our survey respondents were between the age of 25-34, followed by 18-24. These 78 respondents are all customers of Fendi or other luxury brands. We had posted 10 questions, with each question based out of the key points gathered from the qualitative research. From the survey, it can be concluded that many people wear make-up during occasions or every day. We also gather that they are interested in having a wide choice of colors along with being able to look natural with the makeup on. It is also evident that the highest influence factors in the purchase are peers, internet sites, and social media. Since the selection of purchase from departmental stores, specialty stores, and E-commerce sites are largely preferred, it becomes easy to make and place advertisements accordingly. However, the respondents are only moderately open to trying new products. Thus, a good advertisement campaign is required to instigate purchase intentions. The survey shows people prefer wearing makeup to exude confidence, look sexier, be vibrant, or to look more polished and professional. We found that the respondents prefer Chanel and then Dior over other competitors, this helps us identify the key factor that makes these brands a favorite. And finally, we understand that the survey takers are aware of the brand Fendi and an equal number of customers are willing, and maybe willing to try Fendi’s new makeup line.

QUANTITATIVE ANALYSIS It consisted of a 10 questions survey, undertaken by 78 individuals who are current customers of Fendi. The questions were formed using qualitative analysis result. (APPENDIX-I)



POSITIONING STRATEGY Fendi needs to be positioned as colorful and perky with a sophisticated appeal. Since the previous fragrance line was a failure in terms of product and positioning, we will convey the message clearly and consistently that Fendi’s new fragrances are trendy and sexy and will be perfect for women aged between 20-40 years.




Objectives Brand-oriented

Socially Oriented

• •

Pre-purchased-orient- • ed • •

Ensure product visibility Ensure product awareness

Tactics 1. Ensure Fendi’s unique selling point (Duo Essenziale) is prominent in the campaigns, which include • Print ads placed in prominent locations using out of home ads as well as magazines. • The perfume tester can be attached to a page within the magazine. • Creating videos to be broadcasted on television, YouTube and Fendi’s official website. 2. The fragrance line has been altered and is trendy and sexy.

Connect with new and ex- 1. Using social media to spread the knowledge of the new prodisting customers ucts to be launched. • Generate content that customers would want to spread and share. • Encourage target audience and celebrities to post their experience or pictures. • Design an app for customers, e.g. makeup trial apps (added to existing webpage). • Collaborate with bloggers & vloggers from numerous platforms. Enquiries/retai visits/web search Purchase facilitation Form purchase intentions

1. Organize events/activities to promote the makeup products – on the launch day customers get to test the product. 2. Announce other purchase locations and launch time through the campaign.

For Fendi’s one year marketing campaign, the suitable communication strategy includes the use of digital media, print advertising, and direct marketing. Using these mediums three synergies were formulated. The phase one synergy starts with Direct marketing. Using a PR team, Fendi can land an interview with any well-read magazine or popular TV show 3 months ahead of its launch. The creative director Silvia Venturini Fendi or Karl Lagerfeld can be interviewed, where they deliver the news of the new product launch. Fendi’s websites would be updated to show launch date and images to intrigue customers. For phase two, a month before the launch the ad video will be released on television and social media sites simultaneously. One month before the launch Fendi’s beauty and fragrance line will be advertised in monthly international magazines like Vogue and Elle. These magazines have high circulation and their average target readership has a median household income of $69,973. The magazines would continue printing Fendi ads for 6 months. On the launch date, there will be an event in the flagship stores of major cities, and Fendi’s loyal customers would be invited to sample as well as buy these products. For phase three, Fendi will continue with investing in magazine prints and television broadcasting as well as making new “how to do videos” on social media site. There will be constant updates on social media sites of celebrities and opinion leaders using Fendi’s beauty and fragrances. This will be followed by investment in out of home advertisements, with a focus on billboards in prominent locations. This synergy will also include free sampling and memberships to instigate future purchases. Phase four of the campaign would include the continuation of television broadcast, however, with reduced media weight but



Trial and repeat

1. Direct marketing -Try a larger color bar in stores. 2. Collaborated with several online stores like Saks Fifth Avenue, Neimen Marcus or Sephora to promote and place products in prominent spots. 3. Create membership hierarchies to facilitate more purchase.

continuous frequency. The social media sites will be updated to publish upcoming events and new ad shoots will be published in fashion magazines. Handpicked Bloggers and Vloggers would be invited and loyalty can be given to comment on Fendi’s products. Direct marketing will be adopted to continuously connect with customers, for instance sending emails and using instore sales representatives to promote Fendi’s products in collaborated stores like Sephora.



Considering the suggested synergies, Fendi’s marketing budget allocation would be 25% of its beauty and fragrance lines, which has an estimated sales revenue (euro 215,000,000) for the year 2017-2018. The estimated revenue was calculated taking an average of LVMH’s fragrance and beauty sales from the fiscal year 2016-2017 (appendix-II). The allocated budget would amount to euro 53,750,000 and is further divided between three disciplines. These are then further split between the mediums that come under each discipline.



The budget allocated for digital media is euro 25,262,500. This budget is split between three mediums - video broadcasting on television and social media pages, then updating gifs and pictures on social media sites, and lastly for the creation of websites and apps.

The budget allocated for print advertisement and promotions done in retail locations is euro 17,737,500. This is split among four mediums – product samples provided in both brick and mortar and other retail locations that Fendi has collaborated with, print advertising using billboards and other out of home ads, in store prints which are pictures and decorations used to advertise Fendi’s beauty and fragrance in other retail location, and the fourth is investing in magazine advertising.

The direct marketing budget is euro 10,750,000. This is split between four mediums – sales representative sponsoring in collaborated retail locations, public relations activities that will help launch the product as well as maintain the product’s visibility, emails will help reminding customers about the product, and lastly the launch event that will take place in all the major flagship stores.







TASK Creating a video advertisement that conveys the message of the product to be launched. The video will feature the new fragrance and beauty line called “mood series” and will also highlight Fendi’s USP, Duo Essenziale (2 in 1 product). The fact that the fragrances have been altered to match the tastes (trendy & sexy) of customers will be relayed. These videos will be shot it a way that they can be shortened when reduction of media weight is desired. Posting the advertisement video on Fendi’s YouTube channel and Facebook page. Tutorial video will be created to add to these social media platforms. Small gifs and sneak peeks into the product along with short videos will be posted on Instagram and Snapchat. Even sneak peeks of behind the scene activities will be posted to intrigue customers and occupy their mind space. Customers will be encouraged to like Fendi page and follow Fendi’s YouTube channel by offering a chance to get a gift in the future (random selection). Updates of celebrities and opinion makers using Fendi’s products will be posted.


• To spread product awareness and ensure visibility of the product.

1. To measure reach ratings and audience share can be calculate after the ad has aired. 2. Another method is to calculate gross impression. 3. Buy data from third party researchers.

Social Media Sites (YouTube, Facebook, Snapchat, Instagram)

• To connect with new and existing customers. • To ensure product visibility and awareness. • To generate enquires and retail visits.

1. Video views, likes and comments. 2. Number of people subscribing or joining Fendi’s channels and pages. 3. Engagement time. 4. record change in opinions about Fendi. 5. Return rate. 6. Conversion rate (people who take an action after viewing the videos). 1. Website traffic. 2. Bounce rate. 3. Click per view. 4. Conversion rate. 5. Acquisitions of apps (downloads and deletes). 6. Retention of Apps. 7. Session length and time on Apps.

Digital Media

Websites, Microsites and Application creation.



• To generate enquiries/retail visits/web search. • To form purchase intentions. • Purchase facilitation. • To connect with customers.

Euro 25,262,500

A new website or an addition to Fendi’s existing webpage will be created. The products would be updated along with tutorial videos for the products. The websites would include product launch date and the locations they will be available at. It will also feature the launch date events and how to get an invite to the event. Digital catalogs of the fragrance and beauty product will be available on the website. Applications would include makeup trial feature and store locator. 43




Billboards (digital and print)


Direct Marketing

• To spread product awareness and ensure visibility of the product. • To generate enquires and retail visits. • To form purchase intentions. • Purchase facilitation. • Trial and repeat.

• To spread product awareness and ensure visibility of the product. • To form purchase intentions. • Purchase facilitation. Product sampling/Test- • Purchase facilitation. ing and Distribution • To form purchase intentions. channel promotions • Instigate store visits. • Trail and repeat.

PR activities (launch event and product launch)

1. Magazine purchase rate. 2. How did you hear about the product launch (questions in store or webpage). 3. People who use the code provided in the magazine on the website or in the store. Euro 17,737,500

1. Purchase rate (does a person buy after sampling). 2. Tracking test that converted into buying.

• To spread product awareness and ensure visibility of the product.

Euro 10,750,000 Emails and sales representative sponsoring


• • • •

To connect with customers. To form purchase intentions. Purchase facilitation. Trail and repeat.

1. Foot traffic in stores located nearby the billboards. 2. Conversion rate after entering store.

1. Purchase rate on launch date. 2. Show up rate (to see how many where interested). 3. Feedback from customers at the end of visit. 4. Mentions in posts after interviews and press release. 5. Shares of these posts on social media sites. 1. Conversion rate. 2. Usage of codes. 3. Monitoring loyal customer purchases. 4. Monitoring sales representative sales. 5. Gather feedbacks from sales representatives.

The advertisements published in international magazines like Vogue, Elle will include stills from the ad campaign and it will help customers recall the TV ad. The magazines will also carry free fragrance testing page. The advertisements would be placed on a well visible page of the magazine. Codes will be placed in magazines so customers can use the code and get a chance to receive a fragrance gift from Fendi. Each magazine would have different codes to identify the best magazine to advertise in the future. Advertisements and short videos will be shown on the billboard at prominent locations that generate foot traffic. It will also be placed near store to increase foot traffic in stores to instigate purchase. By collaborating with various distribution channels, product samples will be given to customers.Using push and pull strategy the products will be pushed through distribution channels by offering incentives to distributors, which will in turn increase foot traffic in the store. Pay slotting fees for right placement of products. Display allowance can be provided to display Fendi's products. Prior to the launch of the product lines, Fendi will use a PR team to land an interview with top magazines and TV shows to announce the launch of its new fragrance and beauty line. Even a press release might be added to the activities list if necessary reach isn’t achieved through the interviews. A launch event that will use invitations to invite Fendi’s loyal customers to various flagship stores of Fendi in popular cities. Bloggers and Vloggers will be hired to write about Fendi fragrance and beauty products. The emails would remind customers of their previous visits or encourage existing customer to visit the store. It will also convey new events related to the product launch. Codes will be provided in the emails as well. Sales representative will receive a commission if they sell Fendi’s products in departmental stores, retail chains or specialty stores. Recency, frequency and amount spent will be used to target customers 45


Fendi’s advertisement campaign will show a girl in various moods and each color in the “moods series” represent different attitudes. Fendi’s creative concept for the Integrated Marketing Communication Plan is a campaign that will be applicable to a global audience. The campaign will portray the 2 in 1 product – Duo Essenziale with a tagline “your true companion”. The first cosmetics and fragrance series - moods by Fendi, will be introduced in the ad using various adjectives associated with the wide color bar offered at Fendi. Since Fendi doesn’t have a celebrity endorsement, this campaign will be endorsed by its first celebrity “Selena Gomez”. The focus will be wholly on product introduction and the wide color pallets that are offered to match customers wants.




















CAMPAIGN EVALUATION POST- CAMPAIGN TRACKING PRE-TESTING Since Fendi’s fragrance and Beauty products fall under hedonistic entertainment, customers can make

The same ad-diagnostics can be used for post-testing a campaign. Since this is a campaign for the

an impulse buy as well, thus, certain factors must be pre-tested. Quantitative pre-testing is imperative

launch of a new product category, if the sales meet the estimated revenue the campaign can be

to evaluate the success of a campaign. Thus, both print and digital advertisement will be pre-tested

considered as a success. A questionnaire can be used to gather responses from old and new cus-

using a small focus group. Print ads would be tested by replacing ad’s in a magazine and testing cus-

tomers, as well as aspiring customers. The questions can include points regarding brand aware-

tomers who purchased the magazine, for awareness of the ad. Readers will be asked to recall brands

ness, recall, message takeout, and brand consideration. This will help gather the most important

associated with fragrance and cosmetics and if Fendi is evoked in their minds the ad can be considered

objective that was conveyed through this campaign.

successful. Similarly, for the video ad, a small number of viewers will be targeted by showing a private screening of a program, in which the ad would be inserted. At the end, if customers recall the Ad it is a success. In either of the case, if the advertisement did not pass the test, it would have to be relooked into and changed to reduce monetary loss.

CONTINUOUS CAMPAIGN TRACKING The campaign will be tracked continuously to understand increase and decrease of market share. It will also help assess how the broadcast ad performs in the field. It will allow us to assess the points that are wrong or right, therefore, will act as a guide for adjusting the current marketing mix plan. A day-after recall test will be carried out to see if the ad was visible, if not how to rectify or reduce monetary loss. Continuous tracking allows to assess before, during and after effects of the campaign and helps understand the patterns that increased or decreased the brands market share. Also, it will help understand execution and brand cut-through along with measuring any ad diagnostics (recall, awareness, intentions, message takeout).



Cosmetics industry has a wide product category as seen in the industry overview. Fendi has only introduced a small portion; color cosmetics and fragrance from the vast cosmetics industry. Thus, providing Fendi an opportunity to introduce more product categories like skin care, face-makeup, hair products and so forth. Fendi can even target the natural ingredients makeup industry, that is currently sought out by numerous high end customers. Even though the costs would be high these customers would be willing to pay for a new product that satisfies their needs. New product range kits can be created using different moods or color boards. For marketing Fendi can use its fashion shows to advertise make-up products, where the creative director can inform the press “we use only Fendi make-up for our shows�. This will help garner attention if the makeups stand out. Fendi can create short films with a storyline that uses evocative cues associated with the brand name. The brand can also collaborate with famous artists to create new product lines. This would bring in a new fan and customer base for Fendi. The strategy of product placements in movies and TV series can be adopted.











Art Director and Styling

Huiran Zhao Nanthitha Shanmuhasundaram Rongdan Hu Rutuja Mahajan Yinuo Pei

Photography and Videography

Alexandria Wilson

Model and Make-up

Alexandra Cashman


BIBLIOGRAPHY Graham, Mhairi. "The Five Fendi Sisters". AnOther. N.p., 2017. Web. 14 Mar. 2017. Senft, Ashley and Senft. "Fendi | History of Fashion". History of Fashion. N.p., 2017. Web. 14 Mar. 2017. "Fendi, High End Ready-To-Wear - Fashion & Leather Goods - LVMH". LVMH. N.p., 2017. Web. 14 Mar. 2017. Aroche, Daniela. "How Luxury Brands Are Leveraging the New Influencers". Luxury Society. N.p., 2017. Web. 14 Mar. 2017. Malenkaya, Yulia and Aliona Andreyeva. "Fashion and Audio Branding: The Analysis and Interpretation of Luxury Fashion Marketing Concepts". Journal of Global Fashion Marketing 7.4 (2016): 291-304. Web. Escobar Rios, Andrea. "The Impact of the Digital Revolution in The Development of Market And Communication Strategies For The Luxury Sector (Fashion Luxury)". Central European Business Review 5.2 (2016): 17-36. Web. "Market Research Reports | Procurement Research Reports | Ibisworld US". Ibisworld. com. N.p., 2017. Web. 14 Mar. 2017. Stewart, Caitlin. "The Beauty Market: New Forecasts and Trends". Blog.marketresearch. com. N.p., 2017. Web. 14 Mar. 2017. "FENDI | Official Online Store". Fendi Online Store. N.p., 2017. Web. 14 Mar. 2017.

Hachette Filipacchi Media U.S., Inc. “Elle - Reader Demographics�. N.p., 2017. Web. 14 Mar. 2017. "Cosmetics Market by Category (Skin & Sun Care Products, Hair Care Products, Deodorants, Makeup & Color Cosmetics, Fragrances) And by Distribution Channel (General Departmental Store, Supermarkets, Drug Stores, Brand Outlets) - Global Opportunity Analysis And Industry Forecast, 2014 - 2022". Allied Market Research. N.p., 2017. Web. 14 Mar. 2017. "Beauty Industry Analysis 2017 - Cost & Trends". N.p., 2017. Web. 14 Mar. 2017. "Luxury Spending Slump Hit Chanel's 2015 Profit and Sales". Reuters. N.p., 2017. Web. 14 Mar. 2017. "Forbes Welcome". N.p., 2017. Web. 14 Mar. 2017. "Annual Financial Report - Regulated Information - Documentation - Christian Dior Finance". N.p., 2017. Web. 14 Mar. 2017. "Groupe Yves Saint Laurent - Company Profile, Information, Business Description, History, Background Information On Groupe Yves Saint Laurent". N.p., 2017. Web. 14 Mar. 2017. "Fashion Houses and Designers Branch Out into Fragrances and Cosmetics". South China Morning Post. N.p., 2017. Web. 14 Mar. 2017.

Waves, How. "I COVET THEE". I COVET THEE. N.p., 2017. Web. 14 Mar. 2017. "21 Best Beauty Blogs of 2017". theFashionSpot. N.p., 2017. Web. 14 Mar. 2017.


Profile for Rutuja Mahajan

FENDI - IMC Plan  

This project revolves around IMC plan designed for the Italian luxury brand Fendi to launch a new fragrance and cosmetic product line.

FENDI - IMC Plan  

This project revolves around IMC plan designed for the Italian luxury brand Fendi to launch a new fragrance and cosmetic product line.