BRAND & INSTORE COMMUNICATION

Conceptualization of Media Planning on the basis of: Objective of the use of Media Mix, Development of Media Mix, and Budgeting for the Implementation of Media Mix

Submitted by:
Shivangi Sharma MFM Sem2 Roll No.: 24

INTRODUCTION
COMPANY OVERVIEW: La Parfum Natural, Rich & Fragrant are three magnificent traits that come to mind when one thinks of La Parfum. Founded in 1950 by Henri La Nez Almras, one of the most renowned French Perfumer, the company started out as a small store in the City of Love, Paris, France, and has now grown as a multi-national organization & a renowned name in Luxury Perfumes that Sduire Vos Sens (Captivate Your Senses). The naturally prepared fragrances are not tested on animals. With over 50 fragrances available from Spicy & Musky, to Floral & Citrus, La Parfum currently sells perfumes & fragrances in over 60 countries. La Parfum ensures its image by guarantying that its perfumes & fragrances are not tested on animals, and that they contain sustainably sourced oils & other vegetarian ingredients TARGET MARKET Demographics La Parfums target market is the upper-class & elite class men & women who live in a city or suburban area due to store placement being near major cities. Those with an income of over $60,000, consume the majority market, while those making $30,000- $60,000 close behind. La Parfum has two major age groups within its target market. Although, La Parfum suggests its target market is 18-55, research shows that targeting consumers between 18-24 and 25-34 may be more realistic age frames for in-store customers. Also, out of this grouping, reports show that females 25-34 are most likely to go to La Parfum, where as individuals in the 18-24 age demographic are more likely to shop at places like The Perfume Shop. Psychographics La Parfum audience includes two groups, men & women ages 18 to 34, and men & women ages 35 to 55. The typical female La Parfum consumer is well-educated, ambitious and driven, values power and control while expects to be noticed. She likes other people to think that she is rich, relies on the ideal self-concept, and takes how people judge her seriously.

While the typical male consumer of La Parfum products is the one who spends the most on luxury & is most highly invested in luxury living. He is driven, powerful, and highly masculine. He likes to stand out in a crowd, and invest in taking care of himself. The younger of the two groups is not well aware of La Parfum, while still thriving on communication and social involvement. The older of the two groups is aware of La Parfum and is a loyal consumer of the perfumes & fragrances introduced by the company.

SITUATION ANALYSIS
La Parfum is launching a new fragrance in one of its boutique stores in the DLF Emporio Mall, New Delhi, India. The new fragrance La Esmeralda has already been launched in 75% of the stores operated by La Parfum, and India would be the 45th country where it is being launched. La Esmeralda fragrance captures the essence of La Parfum with authenticity and emotion. With the Tagline: No bottles to break - just hearts, the scent captures the creative, confident individuality of a free spirited woman with an utterly innate sense of chic and natural sexiness. By offering a rich mixture of scents derived from the May Rose, Jasmine & other flowers, and - uniquely - adding aldehydes to accentuate the scent, La Esmeralda epitomizes luxury, style and chic.

La Esmeralda Perfume Bottle Market Analysis: Luxury Market in India Its time to get real: Brands are no longer incidental and luxury indulgences much less about ethical dubiety. On the contrary, they are about feeling precious and

pampered, buoying up lifestyles, and flaunting a superiority of taste. Luxury brands may well seem distinct, but as the definition of luxury turns increasingly nebulous, many of the essential differences between luxury and mass market brands are blurring faster than one could notice. At once a concept, a subjective impression and a polemical term, luxury and its pursuit are here to stay. For, given the sheer attractiveness of todays luxury brands and the fortunes that are being pumped into driving them in emerging markets like India, it appears increasingly unlikely that they will fall out of favour. For international luxury brands, India is no longer a mere testing ground, but a lucrative market. Estimates suggest that India has more consumers for luxury goods than the adult population of several countries. Little wonder, as the World Wealth Report 2005-06, published by Merrill Lynch and Capgemini, puts the number of millionaires in India at a whopping 83,000 and states that India recorded the worlds second fastest growth at 19.3 per cent in the number of high net-worth individuals in 2005. High-end luxury brands cannot take their eyes off the fact that over 25 million people are getting added to the hallowed Indian middle class every year. It is estimated that nearly two million Indian households earn more than $1,00,000 annually and can spend about $9,000 on premium goods and services. That itself translates into a potential market of $16 billion, even as the number of such affluent Indian households is believed to be growing by 12-15 per cent. Industry estimates suggest that as many as 200-300 international luxury brands are trying to make inroads into the Indian luxury market, already worth Rs 2,400 crore ($444 million according to the India Luxury Trends 2006 report by KSA Technopak), growing at 30-32 per cent, and expected to touch Rs. 5,000 crore by 2010. One study pegs the Indian market potential of the 15-35 year bracket at a whopping $14 billion. According to the Synovate PAX media survey 2006, the ownership of luxury goods has grown from 15 per cent to 19 per cent since last year. Those owning luxury jewellery ($500 and more) now account for 17 per cent of affluent India. Spurred by this growth in the purchasing power of young India, these brands are actively looking to either launch themselves here or scale up their existing presence. Perfumes as luxury accessory buys are one of the most popular must-have items on the aspirational buyers list as well. According to industry estimates, the size of the total domestic luxury perfume market is around Rs 600-700 crore and is growing at a rate of 20-25 % year-on-year. Rohit Chadha, head of the consumer products vertical at Technopak Advisors, says that high-end perfumes are doing brisk business in India. An outlet at a mall selling luxury fragrances can easily expect to do a sale of Rs 40,000-50,000 in a day! The market for such perfumes has a huge potential in India with a lot of players operating in multi-brand outlets as well, besides boutiques or standalone stores. The trend this season is a whiff of summer. Keeping the summer spirit in mind, luxury majors are counting on breezy, floral and fruity notes to entice customers. Its more botanical, fruity and woody fragrances for men whereas fruity and floral

notes for women, says Ramana Kasibhatla, sales and marketing manager at Burberry Perfumes India. The bestselling buys of leading luxe brands say it all. Italian luxury brand Prada is seeing a growing affinity from male customers for its Prada Pour Homme which strikes a harmony between contrasting notes such as fresh and sensual as well as clean and leathery. Another perfume Leau Ambre, a new addition to the Prada Classic range, is also doing well as it combines a fresh approach to the balancing of notes such as citron , may rose and amber, according to Devasish Dutta , brand manager, Prada Perfumes India. Julie DeClermont Tonnerre, marketing manager, luxury products division of LOreal India which markets brands such as Lancome, Ralph Lauren Fragrances, Giorgio Armani Fragrances and Diesel Fragrances says that the trend in fragrances varies depending on which time of the day it is worn. During the day it is light aqueous or marine scents for men that are comfortable such as the Acqua Di Gio by Giorgio Armani. For women, it is fruity and floral with a modern twist of gourmand sweetness, as in the case in Summer Romance by Ralph Lauren which has key notes of passion fruit, hibiscus and apricot musk. At night, its deeper sensual fragrances such as the Armani Code for men and women that are a favourite. The diverse selection available in perfumes today makes them a highly sought after buy. Moreover, those who want to associate with a leading luxury brand also prefer buying fragrances first. So in that sense, this category sees a lot of aspirational buyers. Benny Ramchandani, head, marketing and sales of MKP Distributors, which distributes 43 fragrance brands in India, including Hugo Boss and Dunhill says that fragrances are becoming quite popular in India as splurging items. A closer look and we can easily agree that wardrobes are changing and so are shopping habits with hygiene and grooming being on top of the spenders list. And its not just the woman who used to be demanding a decade ago. The mens category today has shown a huge upward graph and their demand for fragrances is on an upsurge. Interestingly, Mr Kasibhatla of Burberry Perfumes India, says that 55% of their sales is from their male customers. India has traditionally been a strong mens market as far as perfumes is concerned. In other parts of the world this percentage would probably be 70:30 in favour of women. But in India, it is different. Eau de Toilette which is less concentrated and has lesser price points sells far more than Eau de Parfum here, she says.

MEDIA OBJECTIVES

Media Objectives involve: Making Target Market Aware of the New Fragrance being made available in the market Reaching 66% of the target audience Marketing Objectives include creating brand awareness for La Esmeralda, while also increasing sales of La Parfum by 25% within the target audience in India, as well as increasing overall brand awareness & a positive brand attitude. In order to achieve this, a pulsing strategy has been implemented, using a variety of media, with emphasis on Magazines and Product Launch Event. The periods of Valentines Day, Mothers Day, and Christmas will receive higher budgets in order to increase consumer awareness. Other months will work on a lower budget, while still pushing the brand forward. November will decrease the normal campaign spending and focus on other ways to reach the target audience. Within the strategy, a variety of media will be used, both traditional and nontraditional. Through this strategy, the goals and objectives set forth will be accomplished.

MEDIA MIX
La Parfum seeks to create awareness of the new fragrance, La Esmeralda, by gifting 100 flacons to the best customers around Christmas 2011. This will help understand the acceptance level & the preference of this fragrance by the loyal customers, while building a favorable Brand Image for La Parfum with these customers. Also, different media like Fashion Magazines, Online Advertisement on the Official Site with Videos of the Product Launch, Commercial Film & Photo Shoot images, and the Fragrance Launch Event, will help build awareness about the brand & the latest addition. Fashion Magazines Magazines La Esmeralda will be advertised in are: VOGUE, ELLE & Harpers Bazaar Given is the Data of the demographics these 3 magazines reach: Magazine Demographics VOGUE ELLE Harpers Bazaar

TOTAL AUDIENCE
Female; Male Median Age (in years) Median Household Income

12,030,000
88.0%; 12.0% 34.5 $68,667

6,123,000
94.0%; 6.0% 34.5 $82,104

2,798,000
87.7%; 12.3% 36 $41,996

For the first 3 months since the launch, centerfold advertising would be done. Samples of the fragrance would also be attached in these centerfold photo ads. For the remainder of the year, full page advertisements will run in these magazines. Promotion through Official Spokesperson An Official Spokesperson for the Fragrance would help promote La Esmeralda in India. Sonam Kapoor, one of the most chic, young & stylish celebrities, would be appointed as the Official Spokesperson. Since Sonam Kapoor is often considered to be synonymous to Luxury, with her style & fashion choices, she is an apt representative of the fragrance in India. Photo Advertisements & Short Films would be shot with Sonam Kapoor, to promote the fragrance. These photo ads would run across the magazines, as mentioned above. Advertising on Website Short Films & Videos shot with the Official Spokesperson (Sonam Kapoor), would air on the Official Site of the Brand in India (www.laparfum.in) Along with the final film & video, behind the scenes footage would also be used to promote the fragrance & the brand as a whole. Clips of Photo Shoots would also be shown on the official website, at the homepage, along with the final Advertisement Photos. The websites homepage would be largely used to advertise the latest addition to the existing fragrances available. Fragrance Launch The Fragrance Launch for La Esmeralda would be a large scale event. A PR Firm would be hired to ensure the success of the launch party. The Launch would be spread over two parts Media Launch, which would be a dayevent, and the Launch Party, which would be an after party conducted on the same day (at night). Media Launch would be hosted in the DLF Emporio Mall, where the boutique store of La Parfum is already established. Media persons would be invited from different

News Channels, with exclusive rights of airing the entire Launch (Day to Night) given to the Lifestyle channel NDTV Good Times Also, the Launch Party would be hosted for all Celebrities & Page 3 personalities. It would be hosted at The Grand (near DLF Emporio).

BUDGETING OF THE MEDIA MIX

TOTAL MEDIA MIX BUDGET = Rs. 98,198,590
Cost of Advertising in Magazines: Rs. 58,198,590 (= 60%) Magazine Print Advertisements 3rd Cover (Full Page for 3 months)
Full Spread (9 months) (2BC&W)

VOGUE (in Rs.) 4,450,000*3 = 13,350,000 685,000*9 = 6,165,000

ELLE (in Rs.) 4,400,400*3 = 13,201,200 700,000*9 = 6,300,000

Harpers Bazaar (in Rs.) 4,446,400*3 = 13,332,290 650,000*9 = 5,850,000

Cost of Hiring Official Spokesperson: Rs. 15,000,000 (=15%) Cost of Advertising on the Official Site: Rs. 5,000,000 (= 5%) (includes cost of Photo Shoot & Shooting for Short Film) Cost of Media Launch & After Launch Party: Rs. 20,000,000 (= 20%)