Contents Page Nos: 1. Macro analysis 3 2. Micro analysis 2.1 Market 2.2 Customers 2.3 Competitors 3 -4 3. Internal analysis 3.1 Strategy review 3.2 Functions review 3.3 Productivity review 5 4. Summary – TOWS matrix and key strategic challenges 6-7 5. References 8 6. Appendices Appendix 1: One-page Company Overview Appendix 2: supporting Macro model/frameworks Appendix 3: supporting Micro model/frameworks Appendix 4: supporting Internal model/frameworks 9 10 11, 12 13, 14, 15
- Macro Analysis:
Macro Analysis help companies gain an understanding of the broader environment that it is a part of. This is vital to ensure that the companies stay afloat during turbulent times and make the most of the positive policies and environment.
When analysing Yardley London and referring to the appendix 2, 7 trends were identified. The two major positive trends that will definitely help Yardley are the introduction of GST and the growth in the beauty and grooming segment.
GST(Goods and Services Tax) has resulted in lower taxes for the manufacturing of perfumes. This makes it possible to keep the prices of Yardley London affordable for the great Indian middle class. The middle class is the largest consumer market in India. Maintaining the brand and quality while keeping the prices reasonable is important to ensure the sales of the product.
There is a greater awareness among the youth regarding brands as well as the preference towards grooming powered by the presence of social and visual media. The youngsters in an effort to imitate the urban centres are vastly preferring to buy and use branded products and one such product that is readily available to them is Yardley London.
One major threat being perceived is the relative high rate of inflation. The inflation in the economy can be seen as a threat. Inflation would translate to a lesser purchasing power in the hands of the common man. This, in essence, would mean, the common man preferring to spend money on essential items rather than the non-essential ones and perfumes might be hit moderately by this trend.
- Micro Analysis:
This analysis looks at the immediate external environment. The customers, the competitors and the market are analysed and strategy is decided upon. According to Kotler and Keller (2012), the potential market is a group of consumers with a level of interest in the product. Apart from an interest, they also need to have income and access to the product. David Jobber stresses that the customer is at the core of the marketing strategy and all actions and effects of marketing personnel should be directed at creating a satisfied customer.
While looking at the perfume industry, there is a definite interest and availability of different products in the market. In recent times, the social media has shown a definite presence in India and has become an indispensable tool at the hands of marketing managers. The visual media also has an incredible reach in bringing urban concepts as well as products into the periphery of the young consumers in rural and semi-urban centres. Yardley has strategically chosen a popular Indian model and actress to be the face of the brand. Katrina Kaif exudes elegance and sophistication as well as has a persona that befits the brand image of Yardley London, as is evident in the table 3 of Appendix 3. The sales and marketing team has worked towards making the product available in local shops as well as in high end shopping malls across the length and breadth of the country. The easy accessibility and decent pricing have made this a popular brand with the huge number of customers in the working-class segment. The idea of owning a world-renowned brand has brought to Yardley some loyal customers.
The exotic floral scents of Yardley are quite popular in India, but the fact that there are many other brands that compete in the same category may have made infringes into the market share of Yardley. There are many popular brands that are enticing the customers with a variety of products as well as offers. Understanding the demand for small packaging, brands such as Fogg and AXE has introduced pocket packs that can be easily carried in the hand bag or the luggage.
Another area where the product is lacking is in its longevity and limited fragrances. The fragrances are only floral, the company can try to include citric scents or even earthy and musky scents and create a wider variety for the customers to choose from. This will also help the company create a bigger space for itself in the red ocean market of fragrances. The company has made foray into the blue ocean area of rural markets by adopting reasonable pricing for its products.
The post- purchase evaluation of the product is an important aspect to create customer satisfaction (Jobber,). If we look at the social media reviews, the major negative remark is regarding the lasting of the fragrance. Yardley perfumes do last but not enough. Yardley, in my opinion, should invest in the research and development wing to create new and lasting fragrances that can ensure that the product successfully manages to carve a space for itself in the hearts and minds of the customer. The qualitative research technique can be helpful and following a pattern highlighted by (Hooley et al, 2012) can be employed.
- Internal Analysis:
While doing an internal audit for a company, there are three aspects that are considered. Firstly, the marketing strategy, the marketing function and the productivity.
Having a definite customer research and knowledge along with a clear target market is important to developing the positioning and brand image. According to Hooley et al (2012), the relation between marketing and research will be vital in creating new products. Considering the 7 P’s for the Yardley, the product is not a very rare and there is considerable competition in the market. So there Yardley needs to do product research and innovation to carve a bigger market for itself. The product also is not very long lasting and is also relative expensive, developing and improving the longevity will be effective in justifying the steeper price and will gain the confidence of customers and the market.
The place for displaying the products is local shops and supermarkets. Here, usually there is a store front that is dedicated to the brand and seeks to display it in a beautiful and elegant way. There is definite promotion plan with a brand face that truly reflects the brand.
The CBBE model as advised by Keller in his publication Strategic Brand Management, is an effective tool to analyse the bands position in the market. Does the brand resonate with the masses? Yes, Yardley does enjoy some level of loyal customers who have been using the brand for generations. This has a positive impact on the brand. There are also judgement and performance to consider. The brand enjoys an overall positive outlook but is limited by its pricing and the fact that the fragrances do not last for more than 4-5 hours. This is not a big concern in European markets that are relatively cool spaces, but in India with varying levels of heat and humidity – it is a big factor to consider.
The Keller’s CBBE model is good to view the strong foundations of the brand and to then build up a brand identity.
- Tows and Key Strategic challenges:
The assessing of a company’s overall strength, weaknesses, opportunities and threats in terms of both internal and external factors have been termed the SWOT analysis. The external environment of the company is analysed to understand the opportunities and threat that may significantly impact the ability of the company to earn profits (Kotler and Keller, 2012). The companies also need to considers its strength and weaknesses in the light of the macro environment to arrive at strategic decisions regarding the market and brand positioning.
• Introduction of GST
• Growth of the Grooming Industry
• Use of artificial intelligence
• Increase in disposable income
• The present demographic of India
• Inflation in the Economy
• Low growth of GDP
• There is a good number of products that is not limited to perfumes.
• Has a definite brand persona and sophistication
• Readily available in the market
S O Strategy:
- Can promote more to the rural young with better offers by combining perfumes with other products such as Talc or Deodorants.
S T Strategy:
- With inflation, purchasing power is reduced. Ready availability in market at cheaper prices or with offers can be helpful.
• Products are not rare
• There is less variety in terms of fragrance as it is mostly limited to florals
• Fragrances do not last long
• Price is on the steeper side
W O Strategy:
- At present there is less variety, using artificial intelligence, new variations of floral or addition of citric or musky fragrance can be adopted.
W T Strategy
- Offers to combat the steeper price can be employed.
KEY STARTEGIC CHALLENGES:
- Considering the growth of the young rural demography that is interested in grooming, Yardley can include corporate social responsibility in this area. They can facilitate training centers or beauty parlors that impacts good quality training to grooming professionals. This will make an impact in rural and semi-rural areas while building a positive brand image.
- Inflation in the economy means reduced purchasing power. Yardley products are readily available so it does catch the eye of the customers. Combining products and giving discounts can help manage the threat that inflation pose.
- Yardley has a decent number of products, they can try to include more. Use of artificial intelligence to create new variations of floral fragrance or even introduction of citric or musky fragrances can be helpful in bringing in a variety of customers.
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