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.