‘2XM Scent
Collection’
Homme
Marketing Plan
Executive Summary:
The 2XM Royal Scent Group Australia is a business that supplies gentlemen with a
manly scent and a manly feel as we use materials that are environmentally friendly.
Our vision is to cover the needs of men worldwide, with our latest scents for men
whilst maintaining the best quality and competitive prices.
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2XM Scent Collection
Co-creators Phillip Mules and Tiarne Mitchell have designed a fragrance line, ‘2XM
Scent Collection’, that is designed to take a man throughout all aspects of the day.
The slim bottle design allows it to fit into a suit pocket for easy refreshment. The
design also makes for an easy spritz application. The product will also provide limited
edition variations with an exclusive amount of sales.
2XM is a relatively fresh company to the market. Our predicted sales figure this
financial year is to exceed on 10,000 bottles sold. In our second year we expect to
see the brand expand its sales by 65%, as it becomes a better-known brand. We
predict that this increase will start to plateau in the years following first couple of
years will reflect the growth of the company.
The 2XM team consist of 200 members in the product line department. There are
also a group of 10 members that deal with the IT/ information systems that are an
integral aspect of the company’s growth. The IT team ensures that all the media
outlets are working without any glitches. Five members are included in the marketing
team – this team ensures that the media accounts are up-to-date with relative
information as well as providing a consistency among all media accounts. The last
breaks up of members are found in the HR department, financing department and
the managerial department. As 2XM is just breaching into the LSO (Large Scale
Organisation) aspect, many employees are experienced in two or more departments,
which also saves the company money.
Different micro and macro environmental influences will influence the decisions make
within the organisation. Keeping the product competitive against other large fashion
houses will be a challenge that 2XM has thoroughly prepared for. The segments are
measurable and accessible which help to increase profitability as less chance of the
business being miss-marketed. 2XM has implemented strategies into their marketing
mix focusing of the four ‘P’s’; product, price, placement and promotion. These
strategies include using IMC tools to expose the product more.
2XM Royal Scent Group Australia, has written the following marketing plan, for their
new product ‘2XM Scent Collection’, to display all aspects of the product in how it is
marketed. This allows the board of directors to see the timeframe for revenue and
also sets guidelines for the marketing department to follow. The following plan
discusses all of the points mentioned above.
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Table of Contents
EXECUTIVE SUMMARY: 1
INTRODUCTION 4
ENVIRONMENTAL ANALYSIS 5
MICRO ENVIRONMENT FACTORS 5
MACRO ENVIRONMENT FACTORS 5
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2XM Scent Collection
COMPETITORS 6
CUSTOMER ANALYSIS 7
SWOT ANALYSIS 8
STRENGTHS 8
WEAKNESSES 8
OPPORTUNITIES 8
THREATS 8
SEGMENTATION ANALYSIS 9
MARKETING OBJECTIVES 10
POSITIONING 11
TARGET MARKET: 11
MARKETING MIX 12
PRODUCT: 12
THREE LEVELS OF PRODUCT 12
INDIVIDUAL PRODUCT DECISION 12
PRICE: 12
NEW PRODUCT PRICING STRATEGY 12
INDIVIDUAL PRODUCT DECISIONS 13
PLACEMENT: 13
CHANNEL STRATEGY 13
DISTRIBUTION STRATEGY 13
PROMOTION: 14
TOOLS 14
IMC TOOLS 14
REFERENCES 15
Introduction
This report proposes to discuss the current marketing and operations strategies
utilized by 2XM Royal Scent Group Australia - in order to deliver sustainable
customer value to consumers within the Australian market. This sustainable
customer value is delivered in an attempt to ensure the safety of the market share,
and increase the profitability and revenue of the existing organisation. This report will
also investigate 2XM’s ability to introduce a new product into the current portfolio of
products already being offered to the market of Australia, and how the current
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2XM Scent Collection
business practices, and marketing strategies will best suit the introduction of this new
product, whilst still supporting the existing product range.
Environmental analysis
The resellers: 2XM does not have a 3rd party resellers or wholesalers.
Due to the exclusive nature of this brand 2XM will sell directly to the
stores stocking the product and will not have any ‘intermediaries’. This
will also prevent the company from being leveraged by wholesalers
and 3rd party resellers.
The competition: Our main competitors are large fashion houses like
Calvin Klein and Hugo Boss. Due to the large scale on which the
competitors operate, our distribution will be slightly different.
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Social and cultural forces: The 2XM brand mainly appeals to a higher
class of people as well as middle class and lower class. Changes in the
average age men are now getting married, allows for a longer bachelor
lifestyle, this pushes men into spending more money on their
appearance, including their scent.
This brand also motivates men to self-indulge, which is usually an
activity concentrated by women. (The Impact Of Micro and Macro
Environment Factors on Marketing, 2014) (Oxford College of
Marketing, 2015)
Competitors
1. Calvin Klein
2. Diesel
3. Lynx
4. Hugo Boss
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2XM Scent Collection
Customer Analysis
Customers’ Needs and Desires
1. Price
2. Fragrance, strong or light
3. Sizes, large, small, etc.
4. Environmentally friendly
5. Long lasting
6. Color
7. Available in a box set
8. Appealing name brand
9. Money-back guarantee
10. Discounts on multiple purchases
The brand suits the outgoing male, who sweats and is hard working, the long
lasting and rather strong fragrance is very manly and it gets the job done.
Customers just keep coming back for more. Demand is so high that we need
to do several orders a week.
With the brand now in its 3rd week of sales, it is clearly a product that cannot
falter. It’s exciting and bold; this is what men really need!
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SWOT analysis
STRENGTHS WEAKNESSES
Marketing campaign presents As the company is relatively new
the company with clear and currently still establishing –
strategies and goals to work it is difficult to bring large
from. departments in which to stock
Tech-savvy a few employees the product.
that are a part of the The rate of expansion presents a
organisation specialist in IT, level of demand to the
establishing a large Internet transportation of the goods, and
reputation, which is where most supplying to capital to pay for
of the company’s target market delivery across the country.
will be present. Because of the alcohol content
in the product, it presents a
difficulty with exporting product
overseas. Certain licenses are
needed, which require capital
attain.
OPPORTUNITIES THREATS
E-commerce – a significant Competition will be the biggest
amount of the product with be threat predicted due to the large
sold online using the new competitors on this perfume
generation of e-commerce and market, this not only refers to the
the reduce costs involved. well-known brands that have a
With new technology – the fragrance but it also extends to
packaging of the bottles with be the celebrity presence in the
high-end, with recyclable grade fragrance market. This is a
packaging, including the bottle threat as the competition is
itself. always producing new marketing
campaigns.
Due to the Australian Dollar at
the moment the value of the
product could decrease as costs
still rises.
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Segmentation analysis
Demographics: -
The parameters in which this organisation will segment will be the male
gender.
The pricing of the product will be in the middle to higher range for the
market therefor reaching to a smaller demographic of individuals
Consumers will be higher educated therefore the product will produce
newer technology (i.e the recyclable materials)
In Australia the race that this product will be targeting will be quite large
due to the multicultural nature of the population and having a variety of
race’s in the upper percentage of wealth.
The entrepreneur, business and sporty personalities will be drawn to this
fragrance.
Psychographics: -
As we are appealing to the higher wealth individuals the personalities will
be largely egotistical – this will mean that the product will need to be
unattainable for a large group of society.
The consumers targeted value their visual appearance and their status
among society
A common interest among the consumers will be keeping up with the
best fashion.
Research: -
Research in the targeted market shows that men are looking for a sent
that can be worn throughout the day – this includes something fresh for a
beach trip or sophisticated enough for a date night.
Competitors in this market tend to rely on a large celebrity profile to
promote their brand, instead of using an individual as such; we have
found that we can promote the product in a more monetary efficient way.
Using social media contacts the brand will be marketed on blogs and
Instagram pages, which our target market already views day-to-day.
Strategy: -
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Marketing objectives
2XM hopes to drive its product into the top fragrance market. We hope to sell over
10,000 bottles in the first financial year, expecting to expand by 65% in the following
financial year. We expect the growth to be is largest in the first 2 years as it gets put
on the shelves with its competitors, like Calvin Klein and Hugo Boss. Our customer
service for the product will be extremely competitive among its competitors as the
fragrance will be the only product on the marketing, in the beginning. This means that
the sole focus will be on improving the product and making sure customers are
satisfied.
In the designated segment targeted, 2XM hopes to gain over 9,000 customers, within
the first 10 months. (Jain, 2009)
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Positioning
Target Market:
1. Men who play sports, physical activities, as well as day to day office jobs
2. Age group – 20 to 40
3. Enjoys expensive colognes
4. Mainly single men
5. Scent – Fresh outdoor aroma
6. 6 – 8 hrs. Longevity
7. Environmentally friendly
8. Advertising & Concept Design
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Marketing mix
Product:
Price:
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Placement:
Channel strategy
This product will not be available for purchase; it will be available to
order/ reserve online for collection in stores.
This absence of e-commerce strategy is in place to ensure the
customers that are buying the product will feel as though their scent will
be exclusive. Surveys have shown that individuals tend to get thrown off
their current scent if they see people for different demographics wearing
it or if they constantly smell it on others. The association with scents and
memories furthers proves this strategy to be successful as very few
‘everyday people’ will be associated with the smell.
(Rouse)
Distribution strategy
The distribution for this product needs to be creative – because of the
exclusivity to obtain the fragrance.
There will be a few boutique stores around Australian cities that will
carry this product.
The sales will be sold to high-class boutiques at wholesale prices – the
boutiques chosen.
There are to be no more than 2 stores stocking the fragrance per each
city.
2XM will have a brought a space in the Melbourne city David Jones and
the Sydney David Jones and these will be the first stores to release the
product.
(Small Business Development Corporation)
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2XM Scent Collection
Promotion:
Tools
2XM will use a mixture of influences and digital technology to promote
their scent
Influential bloggers will be given samples of the product to review and
post online.
IMC tools
The 2XM company plans to integrate their Instagram, Twitter and
Facebook accounts.
Using this – customers will be able to constantly track the everyday life of
a 2XM man. Being able to ‘follow’ people’s lives and see what they are
doing so people can match their activities, has been a major turning point
for brands.
(Armstrong G. , 2015)
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References
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