However, since we are used to the advertisement or the marketing strategy, it is hardly to recognize uncomforting. Among many choices, such as vitamin pills, our team found Korean perfume market is very interesting and attractive. In terms of interesting and attractive means that by the market seems to have potential to develop and grow like any other cosmetic market. 2. Why Missha 1)Introduction of MISSHA The first domestic online cosmetic brand, MISSHA, now they have 2 million members and MISSHA is being loved because of the low price.
Cosmetic specialty stores are now decreasing because of the internet shopping mall recently, and vitalization of the door-to-door sales, and the development of home shopping. As a result, the cosmetic specialty stores in 1990’s 80% of the maket share now became 38%. This can be explained with the changes in distribution channels of the domestic cosmetic industry. The appear of the ‘MISSHA’, the most cheapest cosmetic products, which cannot be found in the cosmetic market in the past, was a new hit in Korea.
MISSHA is attracting the young women(the main target customers) with cheap price. And this popularity is increasing, starting with the online sales, and they opened the MISSHA’s offline store base on their popularity. 2) The background of MISSHA In 2000, they successfully had grown because of the interactional communications conclusion, by starting with the online shopping mall. Regarding the thoughts such as “cosmetics should be expensive”, “They should apply to the customers emotions. ” They wanted to provide the cheap, so that the users feel it the cosmetics such as the necessity.
The contents of the cosmetics are important, but, MISSHA thought that they couldn’t find the reason why the cosmetics should be so expensive. -Management Philosophy We found the MISSHA’s management philosophy and the most important thing was the customer satisfaction. The second one was Passion and challenge. The third one is to attract the creative human resource to contribute their competency with loyalty. The final one is to be honest and trust each others, and contribute to the society such as doing the volunteer-work(service). 3) Why chose Missha as target company
By observing the trends, we definitely agree that MISSHA made a big issue in the cosmetic market. We wanted to know what is the advantages and problems of the products that MISSHA made, and wanted to suggest the solution, and make the brand image more positive. And also make an advertisement based on our analysis. 3. Market condition 1) The Condition of Perfume Market There were two opinions by the interested parties. One opinion is the low-price cosmetic boom that MISSHA bring to the market was just a twinkle effect because of the recession, and the other opinion is MISSHA made a new blue ocean market.
And that’s why after MISSHA appeared, the following low-price cosmetic brands had occurred too. Just as The face shop, Etude, Skin food something like that. To start with, we would like to explain about the characteristics of the perfume. In Western culture, perfume is known as daily usage product. On the other hand, in Korean culture, it has an image of luxury product instead of daily, and especially people do not buy perfume for themselves. This fact is easy to recognize by analyzing consuming habit of Korean consumers and the perfume market.
More than 85% of the market share is owned by luxury brands and the awareness of mass market perfume brands is close to 0%. This circumstance has limited the chance for customers to be exposed in various brands. Due to this reason, not the scent, which is the most important characteristic of perfume, the brand became the biggest considering issue. In our survey result, people replied that the most important factor when purchasing perfume is scent, but they are mostly affected by brand. Also, they replied that they are motivated by certain image of the brand and advertisement when purchasing.
As we say we ‘wear’ perfume, it is one of the great ways to express oneself like we show ourselves by the clothes we wear. Unlike the global trend, Korea has exclusive perfume culture. To diversify preference of perfume brands and give change to this culture, Missha has released their first perfume ‘L’EAU DE MISSHA’. 2) Market Survey <Survey Questions> 1. What is the first image of perfume? ? a good way to express oneself ? a thing that you use in special day ? daily used product ? meaningless to use 2. How often do you use perfume? ? every day ? more than three times in a week ? nce or twice a week ? not much 3. Have you ever bought perfume for your own self? ? yes ? no 4. Which brand do you prefer? ? Bulgari ? Farragamo ? Lanvin ? Channel ? Dior ? Kenzo ? Annasui ? Burberry ? CK ? etc 5. What is the first factor you consider when purchasing a perfume? ? brand ? scent ? tenacity ? design of the bottle 6. What kind of scent do you prefer most? ? citrus type ? floral type ? Oriental type ? chypre type 7. What would be the most reasonable price range for perfume? (The price of perfume varies with brand but usually perfume in 50ml bottle costs about 25,000won to 85,000 won) ? ess than 25,000 won ? 25,000- 40,000 won ? 40,000-60,000 won ? more than 60,000 won 8. What is the image of Missha? ? they have many cheap products ? they have good quality products with reasonable price ? their products are not willing to buy ? they have god quality products but the price is unaffordable 9. If Missha release perfume, are you intended to buy it? ? yes ? no 10. What can be the solution for Missha to modify their bad images? ? make advertisements that fits with their image ? have a research about the image of Missha? do social returning activity 3) Market Survey Analysis . 44% of people answered that perfume is a good way to express oneself, but about 30% of people also said that it is meaningless to use. This seems like the likes and dislikes are very extreme for perfume. 2. The result that more than 60% of people checked number three and four, this means that perfume is not a daily product in eastern, especially Korean culture. Even though people think perfume is a good way to express oneself; they still use something instead. 3. 60 people checked ‘no’ for this question. This proves that using perfume is still not a common culture in Korea. 5.
Most of the people consider scent as the most important factor for perfume (40%) and number one and four ranked the second. This result might seem awkward because people consider scent as the most important but when they actually purchase perfume, they buy products from famous brands even though they are more expensive. 7. More than 60% people think less than 40,000 won is reasonable for perfume. This reflects that consumers are not willing to buy expensive perfumes and when they are purchasing, they feel uncomforted. 8. To this questions thy answer were balanced for each choices. . Almost 70% of people were unwilling to buy perfume if Missha releases one. We suppose that most of consumers had bad image about Missha. 10. To this question, about 40 people checked number two. While some said Missha should do some social returning activity, most felt discomfort about the advertisement Missha had. On the other hand, this can also mean that by changing the advertisement of Missha, they will obtain better image which can lead to more profit. Moreover, this made certain that they are using wrong marketing strategy which needs to be solved. 4. Competitor ) Main Competitor of L’EAU De MISSHA ‘Channel’ is one of the most popular brands in the world. We also can see easily in Korea, including bags, perfumes, clothes, and so on. Channel is now a luxury brand, not just an ordinary brand. Especially, Channel is the brand that National Customer Satisfaction Index in Korea took the first place. 2) Comparison with Competitor Channel First Made The perfume. And the price of the Channel perfume that they recently launched was 90,000KW per 50 ml. MISSHA, by using the ’me too’ marketing, they made almost the same product just as the Channel.
And also, MISSHA promoted with a ‘big sale’, price marketing strategy. So the price of the LEAU DE MISSHA(product name) they launched was 35,000KW per 50 ml. By using the comparing commercial with Channel and aggressive marketing, the middle-low price company, MISSHA, started to compete with the luxury brands. The interesting part is they targeted Channel, the popular, luxury brand in the world. Launched in this year, April, this product just looks the same and all the customers can easily notice that. We call this kind of marketing, Noise marketing.
It means that making noise to concentrate and attract people, and make customers curios about the product. And the goal of this marketing is to make customers know about their product, regardless of the quality, only focusing on selling the product, so the marketers will intentionally make an event to make the consumers buy the product, or making a issue that broadcast through the media, or SNS something like that. This noise marketing strategy is not quite bad. It can make customers curious and increase the sales, and high advertising effect will occur with low investing cost.
Just like the SPAM which overwrap with the email. The SPAM company send a number of emails so that the receivers called that kind of disturbing email as a ‘SPAM mail’ even though they were blamed to the customers, It was a perfect noise marketing. However, when the company constantly continues doing the noise marketing, the curiosity of the product that the customers had would change to distrust to the company. With a market driven sight, only following the product of the luxury brand, lowing the price, is now not effective any more.
The company should define the specific product positioning and, consider that the customers are becoming more clever and smarter and they know how to appeal their opinion, and don’t forget the customers can lead to increase the company’s product demand and even make a new blue ocean market. The noise marketing may be the both side sword, that can be a medicine and effectively produce you profit, but also be a poison that gives you the disadvantages. 5. Problems of Current Marketing To Start with, Missha made advertisement for its first low middle priced erfume and gained a lot of good expectations before release. However, after the release of L’EAU DE MISSHA and until now, the purchase is only done for the limited edition by the fans of ????. The reaction of regular products is not as ‘sensation’ as the limited edition and it is also hard to find tv commercial. Moreover, the media show concerns for me too marketing and noise marketing of Missha. In order to find solutions for Missha, we analyzed the problems of L’EAU DE MISSHA. First, Missha had to have active marketing strategy to change perfume consuming culture.
The ‘me too’ marketing that Missha did for cosmetic products was a huge success. Based on their previous success, Missha also applied me too marketing for perfume. However, this just gave cheap ‘imitation’ image of the product. This caused negative effect since most of the Koreans are used to luxury brand of perfume. After all, the product was not appealing at all to Korean consumers. Second, the advertisement was less appealing. It might be attractive to the fans of ???? , but to others, it seemed awkward.
The point is that the advertisement was not able to motivate people to purchase the product. 6. Solution -New advertisement based on problem solving What can be the solutions to success in the perfume market? Our team concluded that Missha should sell perfumes in mass market way. Change in Korean perfume preference is mandatory. Consumers who felt less attractive to high priced perfume will more welcome middle-low priced perfume and the distance between perfume and customer will become shorter if Missha set the right image for their product.
In addition, if Missha release diverse versions of products with small capacity, it will contribute consumers to have an new image of the perfume; from luxury product to a product that well show one selves characteristics. Therefore, Missha will giain sensational reaction by making their own new store that only treat small quantity batch produced perfumes that was never tried in Korea. Moreover, by placing perfume in a form of air fresher with advertisement at the bus stop so that consumers can indirectly experience the scent daily will be a efficient way to promote their product.
Cite this Marketing and Perfume
Marketing and Perfume. (2017, Feb 04). Retrieved from https://graduateway.com/marketing-and-perfume/