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FASM 410 Retail Management Fall2016 Professor Alessandra Cannata Shaniya Shabrah-Oritz | Pan Wang


Content Executive Summary Company Summary

About Jo Malone London Brand Identity Matrix SWOT Analysis Current Distribution Price/Accessibility Matrix Communication & Promotional Activities

Market Analysis Fragrance in China PESTEL Analysis Competitors Indirect competitors

Target Consumer Demographic Psychographic Customer In China

Store Location Design and Product Store Location Area Attraction Logistic and Infrastructure Human Resources Competition Pop Up Shop Communication And Promotional Plan Product Plan Financial Pan

Bibliography


Executive Summary In 1983, Jo Malone began mixing bath oils in her kitchen and from there the British fragrance house Jo Malone was founded. They are known for their iconic packaging and elegant, but simple scents, with unexpected ingredients. Jo Malone has grown into a worldwide company, reaching over 41 markets. However, only 19% of their total net sales come from the Asia/Pacific region, which is why we see this as a big opportunity for Jo Malone. The China market has huge growth potential. The Chinese people are interested in western lifestyle and have a strong purchase power. To further increase the Jo Malone presence in Asian countries, we will be opening our pop up shop in the IFC Mall, Shanghai, China. In addition, we will be hosting a launch party in the Ritz Carlton hotel, which is on the upper floor of the IFC Mall. We will be promoting the shop and event on all of our social media pages. With the launch of our party and pop up shop, we see this as an opportunity to educate potential customers today to reach a certain profitability of Jo Malone. We also want to reach the younger generation with the goal of leaving a lasting impact that will increase the penetration of Jo Malone in the market.


About Jo Malone London Jo Malone London is a British fragrance house known for elegantly simple scents with unexpected ingredients and a unique twist. As well as coveted colognes, Jo Malone London creates luxurious scents for bath, body and home. They are distinctive yet understated, perfect alone or artfully layered with Fragrance Combining™, and synonymous with gift giving, Jo Malone London is a thoughtful and generous statement from a small token to the grandest of gifts. Wrapped in our iconic cream and black box, tied with grosgrain ribbon, Jo Malone iss always elegant and always appreciated.


Strengths

Weaknesses

Strong Brand Identity

Low Brand Recognition

High Quality

Lack of Advertising / Promoting

Financial stability from being a part of Estee Lauder Diversification of products Strong Personalization


Opportunities

Threats

Demand in Men’s Designer Fragrance Market

Big Competition Between Fashion House’s Fragrance Line

Expanding in the Asia pacific market

The White Company (Similar aesthetic and product line & British company )

Demand for skin care products due to aging in America


Brand Identity Matrix

Brand as a person

Brand as product

British Affluent Elegant Driven Knowledgeable

Brand as a symbol

Brand as an organization

British heritage Consistent Modern Minimalistic Luxurious


Current Distribution Jo Malone London was acquired by The EstĂŠe Lauder Company, Inc. in 1999. Today the brand is available in 22 countries and territories. In the US, Jo Malone London is sold in Belk, Bloomingdales, Dillards, Blue Mercury, Neiman Marcus, Bergdorf Goodman, Nordstrom, Saks Fifth Avenue. Their turnover is 76 million dollars and their net assets are 12 million dollars. Jo Malone London first launched in the Asia Pacific Region in Japan, in 2008.


Price/Accessibility Matrix

Price

Accessibility


Chanel

Neiman Marcus Bergdorf Goodman Bloomingdales Saks Fifth Avenue Lord & Taylor Macy's Belk Dillards Nordstrom Sephora Bonton Average Price Range: $72 - $325

Guerlain:

Belk Bloomingdales The Bon Ton Dillards Lord & Taylor Macy's Neiman Marcus Bergdorf Goodman Nordstrom Saks Fifth Avenue Sears Sephora Average Price Range : $72 - $350t

Tom Ford:

Barneys Bloomingdales Lord & Taylor Macy's Neiman Marcus Bergdorf Goodman Nordstrom Saks Fifth Avenue Sears Von Maur Sephora Average Price Range : $72 - $595

Jo Malone London: Belk Bloomingdales Dillards Neiman Marcus Bergdorf Goodman Nordstrom Saks Fifth Avenue

Average Price Range: $65 - $340

Diptyque:

Barneys Bloomingdales Neiman Marcus Bergdorf Goodman Nordstrom Saks Fifth Avenue Sears Sephora Average Price Range: $48 - $180

Byredo:

Neiman Marcus Barneys Sears Average Price Range: $150 - $550

Roja Dove:

Neiman Marcus Bergdorf Goodman Average Price Range: $325 - $1250


Communication & Promotional Activities

Most of the Jo Malone London's current promotion is digitally based. They are active on their website and numerous social media platforms. Jo Malone’s website provides information about their brand and showcases the diversification of their products. One promotion they are offering for the holidays is allowing customers to choose a complimentary sample with each order. On Facebook, they have 602,897 likes and they post upcoming events and a variety of new products to keep their followers in the loop. On Instagram, they have 362,000 followers on Instagram. They cater towards a younger demographic by posting a lot of GIF's. Their Pinterest is used to showcase specific products and themes of their brand. They have 49.4 thousand followers on twitter, which is there smallest following out of all their social media platforms. They will launch special edition products for holiday such as the Merry Mischief Christmas. They launched the Christmas limited edition scent Orange Bittes and they have special gift boxes and ribbon for the holidays.


Services Boutique Services Customers can take a seat at the Tasting Bar™enjoy a complimentary and luxurious Jo Malone™ Hand & Arm Massage. Also, experience scented discoveries with our compliments. Tailor Your Scent The stylists will show the customers how to create a scented signature with Fragrance Combining™. Jo Malone™ scents can be worn solo or layered for a truly individual effect. The customers can create something unexpected. Decorate with Scent Customers can learn how to transform any room, any occasion with candlelight and scent. Any room, any occasion, transforms when it’s styled with scent. A way to personalize customers’ home with candles, elegant diffusers and room sprays. Style Your Wedding A personal consultation to help customers dress the venue with scent, choose gifts and create the ultimate touch… your bespoke scent. Adorn customers’ day with the ultimate signature touch from Jo Malone London. Bespoke inspiration for brides, inviting fragrances that transform any venue and gifts to spoil every guest.


Fragrance in China

The Chinese account for 20% of the world’s population, but only contribute 1% to value sales of fragrances. During the cultural revolution, the use of perfume was illegal. This caused the Chinese people to not be accepting fragrance products. As a result, only 1% of Chinese people use perfume. They will only wear perfume on a special occasion or when it is recieved as a gift. However, the Chinese are now more accepting of western lifestyle, espeially the younger generation. Chanel, Parfums Christian Dior ,Calvin Klein, Hugo Boss and L’Oréal have established high brand awareness among Chinese consumers. Jo Malone London can compete with these companies if they build up their brand awareness. The Chinese consumers prefer single not or simple scents. Jo Malone specializes in simiple scents and can provide them with the best product on the market.


PESTEL Analysis

P

E

Political will for economic growth

China's economy has been reformed and opened since 1978

Riots have been happened Will to creates safe environment for foreign investors The political force is the most unsettled force

The second-largest economy in the world Sigh rate of savings, abundant and skilled labor, more export business, potential urban growth High inflation rate, high property prices Last year the value of Yuen dropped

T B2C industry does not have a safe and stable online payment system Only 1 percent credit card penetration in China The lack of safe online credit card payment system is one of the key reasons for this low usage and penetration.

E Set up a relative complete law system to encourage foreign companies to invest


S Literacy rate in China is over 90%. 420 million Internet users E-commerce has changed how local consumers see shopping Taobao is the largest local e-commerce website

Pros: Huge size of the market Very low cost of labor Government encourage foreign companies to invest China’s growth potential together is remarkable

Still a group who wish to avoid the perceived risk associated with online shopping Only 1% of Chinese using fragrance product

L

Cons:

Pollution control was great invested Campaigns the quality of air in some cities has been improved

Local Differentiation Is Huge The Strengthening Of Core Competencies In Certain Areas And Business Activities Are Unbeatable Chinese Are Culturally Not Fully accepting Fragrance Yet


direct competitors

Guerlain is a French perfume and cosmetic company founded by Pierre Pascal Guerlain. Since then they have had 5 generation of perfumers who have succeeded one another, holding the creative reins. In 1994, they were acquired by LVMH and since then they have been well known for their fragrances. In the US, they are only located in major cities: NYC, LA, and Atlanta. While in Paris, they have 9 stores and in China they only have one store, which is located in the Shanghai Four Seasons Hotel. They haven't had any pop up shops. Their products are available on their website and in Sephora. Their prices are similar to Jo Malone, they range from $65 - $300.

Diptyque was originally a wall paper design studio that evolved into a Parisian luxury brand, that makes high end lines of fragrances, body care, and candles. It was founded by Christiane Gautrot, Desmond Knox-Leet, and Yves Coueslant. All of their fragrance scents are derived from nature. They are known for their iconic emblem shape and gift wrapping. They have 532 international stores, 146 stores in the US, and 14 stores in China. They had one pop up shop in Beijing, China from December 2015 to January 2016. Diptyque is an anti marketing company. They focus on their social media and word of mouth to promote the brand and products. Their products range from $50 - $300. Diptyque is available worldwide.


Indirect competitors

Our strongest competition comes from indirect competitors that are luxury brands. Jo Malone occupies low market share even though perfume is our major product because the luxury brands can attract consumers by their fame. Consumers who cannot afford a Chanel bag can buy a Chanel perfume. This way they can still feel exclusiv, without spendinga fortune. Also, the luxury brands have their apparel line to entice the consumers, which Jo Malone doesn’t have. The major indirect competitors includes Chanel, Tom Ford, Dolce & Gabbana, Louis Vuitton, Giorgio Armani, Gucci, Dior, Prada, YSL, Cartier. Their price range are from $50 - $500.


Target Customer Men and Women from ages 20-45 Middle to Upper Class Income above $50000 College Graduates Value high quality products and name brands Driven, affluent, optimistic, and sophisticated Enjoy dinning out, drinking tea, and reading in a cafe


Customer In China

Robert Lee

40 years old Advanced financial controller Income $100,000 Drives a Mercedes SL Lives in a penthouse with a home theater system Cares about name brands and the quality of products Enjoys collecting wine and shopping online at Jo Malone Wears Jo Malone's Wood Sage and Sea Salt Cologne

Mary Chen

33 years old Foreign bank executive Drives an Audi TT Income $75,000 Speaks 4 languages Enjoys buying expensive watches and going to the gym Wears Dolce and Gabbana Light Blue, but wants to try Jo Malone

Jessica Wong

22 years old Assistant Magazine Editor Income $18,000 Uses public transportation to get around Shops at Zara, H&M, and Top Shop Wants to wear Jo Malone Big on celebrity influences like Kendall & Kylie Very tech savy and keeps up to date on all the current trends


Store Location We choose to open our pop up store in Shanghai IFC Mall. IFC Mall is a six story world class shopping mall more than 110,000 square meters that located at No.8 Century Avenue in the heart of the Little Lujiazui financial and trade zone. It provides a spectrum of the finest retail offerings to the best international luxury brands.


Area Attractions There are many landmarks around the Shanghai IFC Mall, including the Oriental Pearl Tower, Shanghai World Financial Center, Shanghai Tower Observation Deck, Jin Mao Tower ,Shanghai Ocean Aquarium, Pudong Riverside Promenade and China Art Museum. Those landmarks bring millions of visitors every year.

Logistic and Infrastructure The IFC Mall is located in the heart of Shanghai. It is surrounded by many attractions and means of transportation. The subway has two different lines that stop at the mall. Eleven buses stop at IFC, along with the Maglev train. The Pudong International Airport is only 40 minutes away and the Shanghai Hongqiao airport is only 35 minutes away. Since it is in the middle of the city and there is a variety of transportation, many tourists and locals visit the mall. Their services include: baby carriage services, limousine services, concierge service, and even a golf cart service. Along with the 1,900 parking spaces, they do offer valet parking. Shanghai IFC mall gives their customers a remarkable shopping experience and is one of the best luxury shopping destinations in the world.


Human Resources Store Manager Salary: $70 an hour + compensation fee $2000 Assistant Manager Salary: $40 an hour + compensation fee $2000 5 Fragrance Experts Salary: $20 an hour + 6% commission fee

Store Manager

Assistant Manager

Fragrance Expert Fragrance Expert Fragrance Expert Fragrance Expert

Fragrance Expert


Location In The Mall The Jo Malone Pop Up Store will be located on the ground floor where there is the most foot traffic. This area is between Chanel and Dior and many events are held here monthly.

Competition During the beginning of the holiday season, IFC is filled with both locals and tourists. These individuals are looking for luxury items to treat themselves or give as gifts to friends and family. Jo Malone's competition will come from other stores in the mall for example, Chanel, Dior, Dolce and Gabbana, Armani, Hermes, and Prada. We will have an advantage over our competitors because we are the only fragrance house in the entire mall.


Pop Up Shop The Jo Malone Pop Up Store is 50’ x 17’. The store will be open from November 1st to December 1st. Our pop up shop is in an open floor plan so the customer can navigate around the store easily. We want the customer to have access to all of our products, be able to interact with the space, and develop a familiarity of what Jo Malone is about. We wanted to keep the shop very minimalistic and classic, sticking to the Jo Malone aesthetic. The pop up shop will carry merchandise from our regular brick and mortar stores as well as online. Our fragrance experts will assist the customers and provide them with knowledge about the product. Our payment methods include: cash, credit cards, and wechat.


Cost of Pop Up Shop


Communication And Promotional Plan For Jo Malone's pop up in Shanghai China, we will be promoting through social media. Due to China's strict laws on internet access, our promotions will be specifically through Weibo, Youku, Todou, WeChat, and RenRen. These are the most popular sites used in China. Weibo is equivalent to Twitter, Youku/Todou is equivalent to youtube, WeChat is an instant messaging service, and RenRen is just like Facebook. One month prior to our opening, we will be doing sneak peak posts on our upcoming pop up shop. We want to inform the public and get them excited as well. We will be posting once a week on all our social media platforms up until the launch. The day of our launch, November 1st, we will be having a launch partying later that evening in the Ritz Carlton Hotel. We will be sending out invitations to celebrities, bloggers, and fashion critics. We want them to write about our pop up shop and blog about the event to continue building our presence and brand awareness. After the launch party we will be sending out thank you cards to all our guests for attending. During our post launch, we will be continuing to promote our products through social media and encouraging buying online.

Included


COLOGNES Product Plan Product

Scent

Name BASIL & NEROLI

LIME BASIL & MANDARIN CITRUS GRAPEFRUIT

EARL GREY & CUCUMBER MIMOSA & CARDAMOM ORANGE BLOSSOM FLORAL BLUE AGAVA & CACAO PEONY & BLUSH SUEDE

POMEGRANATE NOIR ENGLISH PEAR & FREESIA FRUITY NECTARINE BLOSSOM & HONEY BLACKBERRY & BAY

Size

Retail Price

Units

30ml

$65

22

100ml

$130

22

30ml 100ml

$65

22

$130

22

30ml

$65

22

100ml 30ml 100ml 30ml

$130 $65 $130 $65

22 22 22 22

100ml

$130

22

30ml

$65 $130

22 22

$65

22 22 22

100ml 30ml

$130 $65 $130 $65

100ml

$130

22

30ml

$65 $130

22 22

$65

30ml

$130 $65

22 22 22

100ml

$130

22

100ml 30ml 100ml 30ml

100ml 30ml 100ml

22 22


Product

Scent

Name NUTMEG & GINGER

AMBER & LAVENDER SPICY

FRENCH LIME BLOSSOM WHITE JASMINE & MINT LIGHT FLORAL

RED ROSES WILD BLUEBELL

WOOD SAGE & SEA SALT 154 COLOGNE WOODY BLACK CEDARWOOD & JUNIPER

Size

Retail Price

Units

30ml

$65

22

100ml

$130

22

30ml 100ml

$65

22

$130

22

30ml

$65

22

100ml

$130

22

30ml

$65 $130

22 22

$65

22 22 22

100ml 30ml

$130 $65 $130 $65

100ml

$130

22

30ml

$65 $130

22

100ml 30ml 100ml 30ml

100ml 30ml 100ml

22 22

$65

22 22

$130

22


COLOGNE INTENSE Product Plan Product

Size

Retail Price

Units

ORRIS & SANDALWOOD

100ml

$180

33

INCENSE & CEDRAT

100ml

$180

33

AMBER & PATCHOULI

100ml

$180

33

100ml

$180

33

OUD & BERGAMOT

100ml

$180

33

VELVET ROSE & OUD

100ml

$180

33

TUBEROSE ANGELICA

100ml

$180

33

Name

DARK AMBER & GINGER LILY


HOME FRAGRANCE Plan Product

Name

Size

Retail Price

Units

TRAVEL CANDLES

60G

$35

40

HOME CANDLES

200G

$65

40

DELUXE CANDLES

600G

$200

25

LUXURY CANDLES

2.5KG

$470

15

LIME BASIL & MANDARIN POMEGRANATE NOIR ENGLISH PEAR & FREESIA RED ROSES

165ML

$90

30

LIME BASIL & MANDARIN POMEGRANATE NOIR ENGLISH PEAR & FREESIA RED ROSES ROOM SPRAYS

175ML

$65

30

SENT SURROUND DIFFUSER

LINO NEL VENTO ACQUA DI LIMONE LINEN SPRAY

175ML

$65

30


RARE TEA Plan Product

Size

Retail Price

Units

SILVER NEEDLE TEA

175ml

$340

15

DARJEELING TEA

175ml

$340

15

JADE LEAF TEA

175ml

$340

15

OOLONG TEA

175ml

$340

15

175ml

$340

15

Name

MIDNIGHT BLACK TEA

GOLDEN NEEDLE TEA

175ml

$340

15


FINANCIAL PLAN


Bibliography http://www.jomalone.com/ https://www.moodiedavittreport.com/jo-malone-london-enters-mainland-china-with-beijing-opening/ http://pestleanalysis.com/pest-analysis-of-china/ http://marketingtochina.com/market-perfumes-booming-china/ http://www.kafkaesqueblog.com/2014/05/28/china-japans-fragrance-markets-culture/ http://www.chinabusinessreview.com/understanding-chinese-consumers/ https://www.statista.com/statistics/259221/global-fragrance-market-size/

Pop up Store Render credit Nicole Leung



Jo Malone Pop Up Shop