2XM Scent Collection

‘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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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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2XM Royal Scent Group Australia

Table of Contents

EXECUTIVE SUMMARY: 1

INTRODUCTION 4

ENVIRONMENTAL ANALYSIS 5
MICRO ENVIRONMENT FACTORS 5
MACRO ENVIRONMENT FACTORS 5

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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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business practices, and marketing strategies will best suit the introduction of this new
product, whilst still supporting the existing product range.

Environmental analysis

Micro Environment Factors

 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 customers: 2XM is a B2B and a B2C business. We sell a few

stores, and also are available for customers to reserve the product
online for collect. 2XM does not supply internationally as the alcohol
content makes shipping an expensive process. This may change as
the company grows.

 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.

 The general public: 2XM hopes to attract and retain customers by

keeping by being an environmentally friendly organisation. We believe
that it is our duty to help keeping our environment organic as possible.
(Oxford College of Marketing, 2015)

Macro Environment Factors

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 Demographic forces: For a smaller brand then its competitors, 2XM

hopes to dedicate its resources to what their target market is
requesting/ requiring.

 Economic factors: This brand will hopefully help penetrate the

increment in the purchasing capacity of our nation.

 Natural/physical forces: Recyclable packaging will reduce the waste

produced by perfume companies.

 Technological factors: The development of the technological world

allows for 2XM’s advertisements to reach people far and wide in an
efficient manner – both timely and financially.

 Political and legal forces: Consumer Laws Australia requires2XM Scent

Collection to be formulated to ensure that it complies with allergy
ingredient laws.

 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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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

Backing Up Our Customer Knowledge with Facts

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
 Marketing campaign presents
the company with clear
strategies and goals to work
from.
 Tech-savvy a few employees
that are a part of the
organisation specialist in IT,
establishing a large Internet
reputation, which is where most
of the company’s target market
will be present.
OPPORTUNITIES
 E-commerce – a significant
amount of the product with be
sold online using the new
generation of e-commerce and
the reduce costs involved.
 With new technology – the
packaging of the bottles with be
high-end, with recyclable grade
packaging, including the bottle
itself.
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WEAKNESSES
 As the company is relatively new
and currently still establishing –
it is difficult to bring large
departments in which to stock
the product.
 The rate of expansion presents a
level of demand to the
transportation of the goods, and
supplying to capital to pay for
delivery across the country.
 Because of the alcohol content
in the product, it presents a
difficulty with exporting product
overseas. Certain licenses are
needed, which require capital
attain.
THREATS
 Competition will be the biggest
threat predicted due to the large
competitors on this perfume
market, this not only refers to the
well-known brands that have a
fragrance but it also extends to
the celebrity presence in the
fragrance market. This is a
threat as the competition is
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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 This product is going to appeal to the chosen market through

channeling the sporting-chic lifestyle that they desire. The simplicity of
the design will be appealing to men with different taste within the
market.
 The diversity of the scent will make it easy for men to having sitting in
their car, or in their gym bag for quick access no matter what the
occasion may be.

The above analysis is measureable by looking at competitor’s product placement

and the price of their commercial advertising. The purchasing power of the
consumers within the competition is also measure to allow for realistic budgeting.
This segment is also accessible through a majority of ‘reposting’ and social media
advertising. The fragrance for this product is the differentiation between the
competitors; the price point is also competitive within the more ‘boutique’ scents.
Placement of the product will be based around a smaller segment of the population.
Profitability will potentially be spread throughout the year, as it is a product viewed
borderline of being a necessity, although profit will increase over the Christmas
period as exclusive Christmas boxes will be sold. (Joseph)

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

Because an organization cannot satisfy the needs of all consumers, it must

concentrate its marketing efforts on the needs of specific niches or target markets. In
describing the target markets, consider why a particular target market was selected
and how the product or service meets the needs of the target market.
1. Voted best male perfume of the year!
2. 100% environmentally friendly
3. Established since 1990
4. Unique product packaging
5. 5 store franchises
6. Own unique brand name

Points of Difference are those characteristics of a product that make it superior to

competitive substitutes. The greatest single factor in a new product’s failure is the
lack of significant points of difference.
1. Brand positioning, our company has a long – term brand positioning specially
within the minds of middle age men and teenage boys.
2. We provide products that are different from our competitors (The Body Shop)
3. We are known as an environmentally friendly company

A product’s unique points of difference are communicated by way of a positioning

strategy. (Oxford College of Marketing, 2015)

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Marketing mix

Product:

Three levels of product

 AUGMENTED PRODUCT: 2XM offers 100% satisfaction money back
guarantee, which gives customers the opportunity to return the product if
they are not satisfied.
 ACTUAL PRODUCT: this is the physical bottle that will be easy to hold
and easy to travel with (travel sizes available). It includes the testing of the
smell on individual’s skin and the purchasing.
 CORE PRODUCT: the 2XM fragrance offers a freshening scent that can
be used throughout the day; it can provide a nice smell to help obstruct
the smell of a hard day’s work. It is friendly on all fabrics and even
sensitive skin.
(MarketingTeacher.com)
Individual product decision
 The bottle of the scent its slick design – not bulky like many perfume
bottles.
 The branding stamp is also small and discrete, not busy and colorful
 The simplicity of the bottle and stamp as a mix will be what makes it stand
out.
 Differentiations of the scent will be released over different times as a
limited time offer.
(ZeePedia)

Price:

New product pricing strategy

 The main strategy used for this product is premium pricing
 This strategy involves using the competitive advantage that the
exclusivity of the fragrance provides to charge a marginally higher price.
(MarketingTeacher.com)

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Individual product decisions

 The quality and duration of the fresh fragrance assures that the product
quality level and consistent
 A 12-month survey, post market release, will help the design team and the
scents in the fragrance to develop further into its second year on the
market.
(ZeePedia)

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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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

Armstrong, A. D. (2012). Principles Of Marketing. Pearson.

Armstrong, G. (2015). Principles of Marketing, 6th Edition. Melbourne: Pearsons.
Frank, J. B. (2009). Principles Of Macroeconomics. McGraw-Hill.
Frank, J. B. (2009). Principles Of Microeconomics. McGraw-Hill.
Jain, S. C. (2009). Marketing: Planning and Strategy, 8th Edition . Cengage
Learning.
Joseph, C. (n.d.). Examples of a Market Segmentation Profile. Retrieved September
20, 2015, from Smallbusiness.chron.com:
http://smallbusiness.chron.com/examples-market-segmentation-profile-
11936.html
Kotler, B. B. (2010). Marketing. Pearson.
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http://www.marketingteacher.com/three-levels-of-a-product/
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http://www.oxfordcollegeofmarketing.com/
Rouse, M. (n.d.). channel strategy definition. Retrieved September 2015 , from
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http://searchitchannel.techtarget.com/definition/channel-strategy
Small Business Development Corporation. (n.d.). Marketing - Place (Distribution)
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http://www.smallbusiness.wa.gov.au/business-in-wa/about-
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The Impact Of Micro and Macro Environment Factors on Marketing. (2014).
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