Mastering the Marketing, Branding, and Pricing for Fragrance Excellence
A neutral fragrance and personal care brand that aims to create unique scents and body care products that are missing on the market.
Situation
With the COVID-19 pandemic impacting our client's business, they faced various production challenges, such as limited manufacturing operations and rising input costs. Originally launched in 2018, the business experienced difficulties in sustaining its initial momentum after a relaunch in mid-2020. However, due to the pandemic, the business had to be put on hold temporarily. As a result, our client is now seeking assistance with branding and customer retention to reestablish and strengthen their position in the market.
Challenge
As a fairly new business with little track record of continuous operation, our client sought our help with multiple challenges. The primary challenge was to build a cohesive brand across physical and digital platforms and create marketing content for their products. Secondly, the client faced fundamental challenges in trying to sell such sense-and-experience dependent products like fragrance completely through e-commerce platforms. The unique focus of our client to make their fragrances gender-neutral was both a point of difference and a challenge to market such a disruptive concept. Overall, they hoped to provide unique fragrances for customers through an e-commerce channel.
Approach
Our client, a relatively new business with limited operational history, has approached us with several challenges that require our expertise. The first and foremost challenge is to establish a unified brand presence across both physical and digital platforms while creating compelling marketing content for their fragrance products. Additionally, the client faces inherent difficulties in selling fragrance, which heavily relies on sensory experiences, solely through e-commerce platforms. The client's distinctive goal of offering gender-neutral fragrances presents an opportunity for differentiation but also poses a marketing challenge due to the disruptive nature of the concept. Ultimately, the client aims to provide customers with unique fragrances through an e-commerce channel.
A crucial finding from the data provided by our client was the necessity to reevaluate pricing due to disruptions in the supply chain, which resulted in increased costs for certain essential ingredients and the unavailability of others. In response, our strategy team undertook the task of recalculating costs on a per bottle basis with the inclusion of new suppliers and updated pricing. To ensure a sustainable margin and maintain the client's renowned quality, the team proposed a new range of standardized perfume bottle sizes. This approach aimed to cater to both first-time users and foster long-term loyalty by providing incentives. The suggested pricing struck a balance between accommodating potential future disruptions in the supply chain while upholding the product's excellence.
Impact
Our client achieved a comprehensive grasp of the quantitative aspects involved in pricing determination and cost breakdowns, combining this newfound knowledge with our industry research that analyzed competitor pricing. This enabled our client to make informed adjustments to their product prices. Furthermore, we provided social media best practices that served as a guide for enhancing their online presence, ensuring their brand remains relevant by aligning with current events and trends.
To address the client's long-term growth and expansion goals, our strategists conducted research and compiled a report on additional distribution channels. This invaluable resource allowed the client to explore avenues for offering an in-person shopping experience for their customers in the future, thereby expanding their reach and enhancing the overall customer experience. By incorporating these strategies, our client was empowered to make data-driven decisions and position themselves for sustainable growth and success.
Team Breakdown
Team Lead: Sydney Hu
Strategist: Stanley Wang
Junior Strategist: Deborah Wainberg
Junior Strategist: Hava Liebowitz
Rotational Strategist: Grace Schuchard
Relevant Background Information
Business Type: For Profit
Industry: Cosmetic and Personal Care - Fragrance
Location: Detroit, MI
At Rem and Company, we're on a mission to keep doors open and dreams alive. Rem and Company started as a social impact initiative offering free consulting services to small businesses impacted by COVID-19. Rem and Company has become an information hub and digital community platform for small businesses in need. At Rem and Company, small businesses stay up to date on trends in their industries, learn new approaches from peers, build a network, and develop the capacity to adapt as the world around them changes. Our consulting teams provide small businesses with the opportunity to identify and prioritize issues facing their business, propose innovative strategies and facilitate execution. If you are a small business owner and want to learn more about how we can help, request a free consultation.