The market of the selective perfumery

To conclude its blog, we can observe the competitors on the market of the selective perfumery.

France is known as the country of the perfume, the French are the most important consumers of cosmetic products in the world, with a budget of 205 euros per year and per inhabitant.

But, the market of the selective perfumery since 2002, declines. In 2005, the sales lost 2%.

4 big companies dominate the market :

• Marionnaud the leader
• Sephora the number 2 : in 2005 its turn over increased in 12.8%. Sephora has a strategy of differentiation with a unique concept based on megastores, on the development of its own brands. In addition, Sephora has a unique brand image based on values of freedom, discovery.

• Nocibé the number 3 in term of turn over but the number 2 in term of distribution network with 360 stores in France.

• Douglas the new incoming since 2005

There are too 2 chains of franchises : Beauty Success (188 stores) and Passion Beauté (190 stores).

We can add the para pharmacology and the shopping centres as competitors in this market.
We can say the main stakes in this market are prices and differentiation.

Conclusion

Marionnaud had known problems but it's the leader of the market. I think thanks to its strategies of proximity, of price, of development in the world, Marionnaud can stay the leader for a long time.

Problems of Marionnaud

Marionnaud is the leader of the market of the selective perfumery.

But the company has problems.

First, during the financial scandal of 2007, Marcel Frydman, the ex-chairman was sentenced because he reselled illegally perfume bottles of tests.

Prestigious brands bring Marionnaud before the courts. It's not good for the relations between the firm and its suppliers.

Secondly, the company was sentenced to vertical agreement about prices between 1997 and 2000.

In addition to these scandals, the firm has problems caused by its model of working. Marionnaud favours the proximity with its customers thanks to stores of proximity.

But this system create problems of cannibalization between the stores which are too near in the same town.

The model of working of Marionnaud is based on proximity with the consumers, so I think, its problems are inherent in this system, but Marionnaud is an experienced company and it can manage these problems.

New technologies

Marionnaud is known to employ new technologies, for its advertising and its customer relationship management.

First, Marionnaud, during the advertising campaign for its 20Th birthday, employed the technology of mobile: the society sent MMS and SMS to its customers to talk about the promotions set up for the birthday of Marionnaud.

In addition, the firm employs the Internet and the web mobile ; it was the first perfumery chain to create a website to sell its products and MATV.com promotes events which are sponsored by the firm.

Concerning, its relationship with its customers, Marionnaud has a developed strategy, the firm contacts its customers with mailings, e-mails, SMS and MMS, the firm uses information obtained thanks to its loyalty cards.

But, the society has a more intrusive strategy, in some stores, Marionnaud tests a new system based in the technology of Bluetooth : for example when a consumer which has a mobile with Bluetooth passes a Marionnaud’s store, he receives a MMS to promote products sold in the store or to talk about a action of promotion of Marionnaud.

Marionnaud wants to touch a majority of people, the firm targets all people.

Marionaud is a pioneer in using of new technologies but I think some people can be trouble by an intrusive advertising. I think the using of the technology of Bluetooth is interested but it can become too much intrusive.

Advertising

Marionnaud has a very developed policy of communication, it employs 8% of its turn over to finance the advertising.
To speak about the strategy of advert of this firm, we can speak about an old advertising campaign. The subject of the campaign was love.

Marionnaud employs several medias of communication as:

• Radio
  
• Billposting (bus, taxi, underground…)
  
• Adverts in magazines
  
• Adverts in the stores
  
• Sponsorship of a magazine of TF1 called “je suis venu vous dire”
  
• Marionnaud employs new technologies : MMS, SMS, web mobile.
  

The company sponsors horse riding, in particular the price of America.

Concerning the actuality, Marionnaud communicates on its promotions for Christmas 2007, the firm uses TV,magazines and billposting.

I think Marionanud has a complete strategy, the firm uses a lot of medias of communication.
The company favours the interaction with the customers.

Finance and scandals

Marionnaud is a very important firm , it’s the leading perfumery chain in France with a market share of 30%.

The company has a strategy of low prices. The company offers its products at the same prices in the spaces in the shopping centres and in the stores in the town centres.

Marionnaud is a profitable company, in 2005 its turn over was 1,136 billions of euros.

But Marionnaud it’s too a scandalous firm, in September 2007, Marcel Frydman the ex chairman was sentenced to breach of trust. Frydman must pay 15 000 euros of fine and several thousands of euros of damages.

He reselled illegally perfume bottles of test of prestigious brands.

Marcel Frydman

In addition to this scandal, the firm was sentenced to vertical agreement about the prices between 1997 and 2000.

These financial scandals can give problems to the company, Marcel Frydman, the founder of the firm was a charismatic chairman and I think these problems can create bad feelings among the employees.
The consumers can be shocked by these scandals. They touch the integrity and the brand image of the company.
I think these problems are bad for the image of all perfumery chain in France because the scandal of 2000 implicated the entire sector of perfumeries and beauty.

But Marionnaud is a strong company, it succeed in creating a unique link with its customers and the firm will overcome these problems.

The products and the loyalty of the customers

Marionnaud sells products for men, women and kids. There are different types of products :

• perfumes
  
  
• make up
  
  
• cares for body, face and hair
  
  
• sun products

Marionnaud has a large supply with 10 000 references and 114 brands.

The products are products of luxury brands. Marionnaud sells only prestigious brands like:

• Chanel

• Bulgari

• Calvin klein

• Giorgio Armani....

The brand has a positioning of high range.

We can say Marionnaud follows the tendencies and the scientific evolutions in the beauty, the firm creates a new range of products with organic cosmetics called “huiles et baumes”.

To understand the strategy of these perfumeries we can talk about the program of loyalty.

Loyalty card :

To gain the loyalty of the customers, Marionnaud offers personalized cards. The card allows to gain points and when the customer has 100 points, he gains a gift token.

The stores give a present to the new customers when they take the loyalty card.

The program of loyalty is a success with 7,7 millions of cards in Europe. The impact is important, a customer with a card buys more in the stores.

These cards create links between the customers and Marionnaud.

The perfumeries

Marionnaud owns 1231 stores in the world.

The perfumeries are in different places :

• in the town centres, the stores sell cosmetic products and have an institute of beauty where the beauticians use products of luxury brands.

• in the shopping centres, the spaces, where pharmacists advice the customers.

The firm offers activities in these stores, called "atelier parfum", where the customers can discover the creation of a perfume.

Marionnaud uses the distribution on line with the web site http://www.marionnaud.com/.
This site offers 110 brands as Clarins, Yves Saint Laurent, Lancôme, Chanel, Guerlain…

Marionnaud.com offers 10 000 products. It’s the first perfumery chain in France to create a web site to buy on line. The site has 250 000 visitors by month.

Concerning the actuality of the web site; in december it will enter in a big period of activity, Chrismas time is the most important period of the year, it represents 30% of the turn over of the year.

International :

In addition to this strategy of distribution, Marionnaud continues its expansion in Europe, in Italy, Spain, Portugal, in fact in 13 countries around the world.

In 2006, the firm introduced this brand to the Asia beauty market with the grand opening of its 900 square metre store in Manila.

Marionnaud enters in the market of Morocco and Tunisia and develops this firm in Eastern Europe as in Slovakia and Poland.

To conclude we can say this firm has a very efficient and unique strategy of distribution, it allows the company to touch a large number of customers.

Introduction

Marionnaud is the largest perfumeries and cosmetics retailer in Europe.
It's the latest addition of the A.S Watson Group.
Marionnaud is the leading perfumery chain in France with a market share of 30%.
The firm sells products for men, women and kids.
It has 1231 stores in 13 countries around the world.

History :
The founder, Marcel Frydman acquired his first perfume store in 1984, in Montreuil.
The group has registered exceptional growth ever since.
In 1996, the firm acquired the Bernard Marionnaud S.A chain and in 1997 the entire network adopted the Marionnaud perfumeries brand.


The expansion's strategy of Marionnaud is based on purchases of a large number of local perfume retailers and independent outlets like Silver Moon, Kleber, Patchouli, Votre Beauté, Marie Bernard, Annabelle.
Marionnaud buys stores of quality with a good location and a good level of profitability.

Marionnaud is renowned for service, professional advice, competitive pricing and costumer loyalty.

Welcome!!!

It's a blog created during an English project, this blog is about the company Marionnaud.