Market And Environment Analysis Case Study Sample

Market & Competitive Analysis of Morton Brown in the Fragrance Industry

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Introduction To Market And Environment Analysis Of Morton Brown Of Fragrance Marketing

Morton Brown is a medium-sized fragrance marketing firm looking to grow its market share. This analysis will look at current fragrance market trends, the competitive landscape, and consumer demographics to find growth prospects. Key demand drivers such as discretionary income levels and increasing customer preferences for natural and sustainable products will be evaluated. To establish Morton Brown's competitive stance, operational aspects such as supply chain, manufacturing, and distribution will be examined. The findings will offer Morton Brown with strategic recommendations for tailoring new product development and marketing efforts to best resonate with target customers.

Background of the Company

Brown, Morton Mark and Betty Morton, along with their friend and business partner Michael Brown, established London in 1996 (Kimmel, 2019). Mark had worked at a big scents producer and had a history in perfumery, Betty had business experience from managing her family's modest gift shop, and Michael had sales and marketing knowledge from his profession in consumer products.

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The three partners spotted a market opportunity for a niche fragrance house specializing in handcrafted and natural perfumes. As huge companies grew to dominate the mainstream fragrance industry, Morton Brown positioned itself as a bespoke perfumery with roots in the craft. They are committed to ethical and sustainable sourcing, using only plant-based extracts and essential oils & additional ethically sourced elements in their scent compositions.

Morton Brown began his career in a modest studio in East London. Their first big break occurred in 1998, when the luxury department store Liberty began carrying Morton Brown perfumes in their cosmetics section. Morton Brown's reputation for workmanship and quality grew as a result of the exposure, strengthening its credentials with both consumers and perfume distributors. Morton Brown has expanded across Europe over the last 25 years, opening flagship locations in Paris, Milan, and Amsterdam. Their inventory now includes over 50 signature scents in a variety of price tiers. Master perfumers are employed by the organization to continue developing their distinctive aroma offerings.

While Morton Brown is no longer a small artisanal pharmacy, it nevertheless takes pride in its devotion to natural materials and perfume workmanship as it has developed into an internationally recognised niche fragrance business. Its ethical ideals of responsible and sustainable sourcing continue to distinguish it from mass-market competitors.

Market Research

Market Size and Segments

Through the observation of the survey, the worldwide fragrance market is projected to be worth $38 billion per year and is growing at a rate of more than 5% per year (Abe Chatterjee, 2020). The following are key market segments:

  • Fine Fragrances: Expensive perfumes sold in perfumeries, department stores, and brand boutiques for $100 or more. This is Morton Brown's traditional territory, although competition has grown as luxury firms expand into fragrances.
  • Mass Market Fragrances: Fragrances are available in mainstream merchants and drugstores for prices under $80. This market is rapidly expanding, particularly for celebrity-branded and influencer-marketed perfumes aimed at younger consumers.
  • Niche/Artisanal Fragrances: Typically priced between $80-280, this fast-growing segment is focused on artisanal craftsmanship, natural formulas, sustainable sourcing, and providing consumers with a sense of authenticity and discovery (Ahlbom, 2023). This aligns well with Morton Brown's corporate idea around responsible perfume craft.

Key Opportunities

Morton Brown has the potential to strategically increase its speciality positioning when growth occurs at both ends of the pricing spectrum. Potential target regions include

  • Accessible Luxury: Create a more premium mass-market line with lower price points ranging from $40 to $90 in order to expand sales channels and demographics without eroding brand identity. Concentrate on environmentally friendly products and packaging.
  • Enhanced Experiences: To correspond with changing consumer expectations, and innovate the in-store and sampling experience both digitally and physically. Virtual reality sampling and refillable containers are among the options.
  • Adjacent Categories: Use brand affinity to develop into supplementary areas such as luxury candles, room diffusers, bath & body products, and ancillary accessories.

Morton Brown may drive responsible growth while maintaining its commitment to responsible perfume craft by carefully planned expansion into underrepresented customer niches and distribution channels.

Figure 1: Market variations and segmentation of Morton Brown

Market variations and segmentation of Morton Brown

(Source: www.marketresearchfuture.com)

SWOT & Pestle Analysis Of Morton Brown

The Swot analysis of Morton Brown reinvents the fragrance category to reinvigorate the brand and appeal to our target communities

Strengths
  • High-Quality Collaborations: Partnerships with top-tier perfumers ensure that the perfumes are of the highest quality.
  • Reputation and Heritage: Molton Brown has a lengthy history as a well-known British brand, particularly within the "Modern Heritage" customer group.
  • Distinctive Product Features: Distinctive bottle designs, such as the "lens" and gender-fluid perfumes, distinguish the brand (Ali, 2022).
  • Strong Brand Positioning: Molton Brown is viewed as a bridge between high-end brands such as Jo Malone and more budget products like as Baylis & Harding, making it both accessible and premium. Multiple country presence and upmarket retail establishments
Weaknesses
  • Industry Saturation: Because the luxury fragrance industry is saturated with multiple established brands, differentiation is difficult.
  • Reliance on Physical Retail: While Internet sales have increased, a substantial amount of luxury purchases still take place in physical boutiques, which can be impacted by global events.
  • Reliance on an Aging Population: Because the brand relies significantly on an older audience, it may be less appealing to younger consumers (Alli, 2022).
  • Product gap: A significant gap between the brand's bath products and high-quality scents raises the possibility of branding inconsistency.
  • Pricing Disputes: The introduction of scented after-bath and body products in select places has resulted in pricing disputes.
Opportunities
  • Sustainability: By emphasizing sustainable sourcing and production, businesses may cater to a growing eco-conscious consumer base.
  • Diversification: Investigating new product lines or fragrances in response to emerging market trends.
  • Digital Expansion: Improved online visibility and virtual experiences to support digital rebranding (Barry, 2021).
  • Possibility: Rebranding the Bath and Body range can improve alignment with the perfume goods, resulting in a more coherent brand image.
  • Target New Demographics: By altering marketing methods, there is the possibility of appealing to younger audiences and expanding beyond the ageing population.
  • Collaborations & Partnerships: With a focus on business-to-business in 2023 and collaborations with big names in numerous industries, Molton Brown can explore innovative partnerships or limited-edition releases with other luxury brands (Bucher, 2023).
Threats
  • Economic Fluctuations: Economic downturns can have an impact on luxury sales.
  • Emerging Brands: New luxury entries, particularly those with new offers or marketing techniques.
  • Shifting Consumer Preferences: Consumer preference shifts toward niche or independent fragrance brands.
  • Competitive Market: The luxury fragrance market is highly competitive, with competitors such as Neom, Rituals, and Aesop.
  • Retail Landscape Shifts: Changes in wholesale and department store dynamics may have an influence on sales and distribution tactics (Falco, 20222).
  • Potential Brand weariness: If the brand depends too heavily on its established reputation without innovating, it may experience customer brand weariness.

The Pestel Analysis of Morton Brown reinvents the fragrance category to reinvigorate the brand and appeal to our target communities

Political
  • Trade Policies: Post-Brexit trade agreements may have an impact on Molton Brown's cost structure. Particularly if they import raw materials or the intention to export goods to other countries in the UK.
  • Regulatory Requirements: Regulations Concerning cosmetics as well as scents like the REACH, the EU's chemical regulation, and the UK's post-Brexit regulations be compared. Influence product formulation as well as packaging.
  • Relations Internationals: Relations between political parties between the United Kingdom and Other countries could influence Molton Brown's global marketplace supply and presence chains.
Economic
  • Consumer Spending: Economic downturns or recessions can have an impact on consumer spending. Lower customers' available funds, potentially influencing luxury item sells such as high-end fragrances.
  • Currency Movements: As a global citizen, and brand, variations in the pound sterling could have an impact on Molton Brown's financial success, Particularly in import/export operations.
  • Market Competence: The existence of luxury that is competitive the rise of brands alternatives that are inexpensive can have an impact on Molton's Market share of Brown as well as pricing methods.
Social
  • Public Preferences: There is a growing public interest in natural and organic products. eco-friendly goods Molton could be led Brown will modify its product lines to satisfy These are my preferences.
  • Changes in Demographics: A growing elderly population may have an impact on the product as well as older demographics could have various perfume preferences as opposed to younger con Younger customers (Frieling, 2022).
  • Trends in Lifestyle: The wellness trend as well as self-care raises the demand for personal care items, benefiting brands such as Molton Brown.
Technological
  • E-commerce: Technological advancements in online purchasing platforms may allow Molton Brown will increase its digital footprint, as well as direct-to-consumer sales.
  • Production Technology: Inventions in manufacturing is a possibility that contribute to increased efficiency creation of perfumes and personal care items, influencing cost and scalability.
  • Marketing Automation: Making use of data analytics as well as artificial digital intelligence Marketing could be beneficial. Molton Brown as a targets more customers efficiently and Personalizes your offerings. Increasing Sustainability customer and regulatory requirements for practices that are long-term Molton may be required. Brown will invest in environmentally friendly manufacturing. Techniques, packaging, as well as the acquisition of ingredients (Höck, 2023).
Environmental
  • The Effects of Climate Change: Climate impact alteration on the availability and cost of raw materials that are required. Oils, alcohol, and so on result in increased costs or the requirement for reform products.
  • Waste Control: Cosmetics manufacturing is being investigated for its plastic, As a result, Molton Brown may need to investigate biodegradable products. Or packaging that is recyclable solutions. Increasing consumer and regulatory demands for sustainability practices that are long-term Molton may be required. Brown will invest in environmentally friendly manufacturing. Techniques, packaging as well and the acquisition of ingredients.
Legal
  • Cosmetic Regulations: Complying with cosmetic safety and quality standards and labelling specifications is required; any Changes could result in improved compliance costs.
  • Intellectual Property Rights: Scent safeguarding formulations as well as brand. The importance of trademarks cannot be overstated. Keeping exclusivity and a competitive advantage.
  • Employment Regulations: Labor law amendments can have an impact on operations costs, particularly if Molton Brown makes extensive use of or has a workforce a large retail space operations.

Consumer Behavior Model and Trends

Consumer Behavior Model Analysis

When deciding on a fragrance, people go through a process that includes awareness, consideration, preference, intention, purchase, and use. This methodology can help scent marketers at every stage:

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Awareness

Consumers must first be made aware of the existence of a fragrance. Advertising, public relations, promotions, and influencer/celebrity endorsements are used to gain initial visibility. In-store presence and sampling interactions are also important touchpoints for niche perfumes.

Consideration

As customers grow more conscious of perfumes, they construct a list of possibilities to investigate further (Jung, 2021). This is influenced by brand reputation, reviews, ingredient claims centred on natural, clean, or sustainable positioning, and sensory impressions derived from packaging and visual marketing.

Preference and Intention

Consumers directly compare fragrances within their consideration set to determine individual preference and liking. Perceived sensory quality upon sniffing and when tested on skin plays a pivotal role. Desired emotional benefits also influence preference, from luxury and indulgence to more functional attributes like long-lastingness or subtlety for everyday wear. Based on the consumer's individual preferences, purchase intentions take shape. Final pricing, promotional offers, convenience and shopping environment further sway the strength of intent a consumer has towards ultimately purchasing.

Trends

Key fragrance market trends reflect shifting customer tastes and values in relation to personal fragrance goods. Natural, vegan, and cruelty-free scents that are connected with environmentally conscious lifestyles are gaining popularity. Scents that are minimal and gender-neutral also resonate with fluid modern identities. Sensory innovation centered on molecular aromatic and seasonal limited editions draws customers looking for fresh fragrance experiences. At the same time, antique, artisanal, and niche perfume aesthetics capitalize on legacy cues for premium positioning (Linardi, 2022). Virtual try-on and sample technology provide immersive digital smell exploration as ecommerce grows. Nonetheless, in-store customer service is critical for personalized fragrance matching and significant brand connections. Custom perfumery, which allows for the creation of specific formulas, allows for even more customization. Consumers are prepared to pay a premium for distinctive sensory characteristics, responsible sourcing credentials, and meaningful brand affinities that convey individuality through scent choice across price points. Finally, scent purchases satisfy the consumer's desire for unique locative delight, value alignment, and enhanced self-perception.

Figure 2: Chart of Perfume market

Chart of Perfume market

(Source: www.millioninsights.com)

Competitors Analysis

Direct Competitors in a Specific Niche

Morton Brown's main competitors are various niche fragrance businesses focused on artisanal production processes and natural ingredients that operate in the $80-280 price range. Among the key participants are:

  • Amanu: Botanical perfumes sourced ethically with minimalist, apothecary-style packaging and branding. The emphasis is on sustainability. Flagship stores in high-end shopping districts.
  • Cordenluxe: An illustrious scent business steeped in Parisian perfumery traditions. Packaging with a more elaborate, luxurious look. Perfumers are viewed as true artisans as a result of highly integrated brand storytelling.
  • Scenthalle: Avant-garde identity with science-focused marketing as "molecular perfumers" overflow: A diverse selection of experimental, modernist scents for a daring consumer. Retail spaces have a high visual effect.

These niche competitors all have distinct positioning based on key pillars such as ethical manufacturing, formulation originality, and brand legacy tales that resonate with the high-involvement fragrance consumer (Payne, 2021). Through ingredient sourcing policies, in-store style, and integrated sensory branding across both product and retail locations, they translate positioning into physical clues. This defines the competitive landscape for focused consumer appeal.

Competitors who compete indirectly

Morton Brown faces increasing competition for a share of the lucrative consumer luxury goods market from non-fragrance fashion and cosmetics players diversifying into adjacent markets with their own fragrance ranges, ranging from established luxury houses like Gucci and Dior to recent entrants like makeup brand Glossier (Singh, 2022). These competitors take advantage of their larger mass-market brand familiarity and distribution scale. However, they often lack Morton Brown's repute in the fragrance product area, particularly in terms of technical perfumery competence and sensory innovation.

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Marketing Mix

Product

Morton Brown develops niche scent collections produced by skilled perfumers utilizing only premium-grade plant ingredients. Variants are created to appeal to high-end fragrance consumers aesthetically, with a portion of annual earnings dedicated to research and development of new smell directions.

Pricing

Morton Brown is positioned as an affordable luxury brand, with price points ranging from $100 to roughly $280 for exclusive offers, owing to the handcrafted nature of its scents. Premium pricing will remain, but consumer perceptions of value must be maintained through service, quality, and brand image.

Place

Morton Brown sells through select premium department stores as concessions, luxury beauty retailers, and travel retail channels, in addition to its branded locations in important global gateway cities. An e-commerce store offers international accessibility as well as the ease of purchasing gifts. Distribution alliances broaden reach while maintaining brand uniqueness.

Promotion

To fit with its sophisticated market positioning, Morton Brown primarily deploys "pull" promotional methods. This involves public relations efforts aimed at obtaining editorial coverage in top fragrance and lifestyle periodicals. Influential bloggers and vloggers are also given things in order to generate organic endorsements. Instagram remains a significant image-driver (Ugwu, 2023). Paid digital scent advertising assists in reaching customers during seasonal purchase contemplation periods or in raising knowledge of new product introductions. Bottle display aesthetics in-store, monthly special offers, and seasonal gift bundles all help to encourage trial and purchase.

The marketing mix balances sharing Morton Brown's artistic sensibilities and responsible production practices, while making the line accessible and appealing to discriminating global luxury consumers. Premium scents necessitate premium marketing tactics.

Strategy of Marketing Communication

Position Morton Brown as an ethical and artisanal fragrance brand dedicated to the creation of scent. Showcase the in-house master perfumers' originality, talent, and enthusiasm to connect with customers who see buying premium perfumes as an emotional experience formed by creativity and pleasure. To appeal to eco-conscious consumers who value natural, responsibly-made items and transparency about manufacturing techniques, highlight natural botanical extraction processes and sustainable material sourcing.

To immerse varied audiences in the Morton Brown persona, use integrated communication platforms. Secure influencer endorsement and press coverage from perfume bloggers, eco-publications, and prominent magazines to naturally shape luxury views and stimulate interest in new products and stories (Viswanathan, 2021). Utilize visual-forward social media tools such as Instagram and short-form video platforms strategically to garner environmental scrutiny on digital channels while telling the stories of scent production.

In boutiques, use retail theatre tactics such as perfumer demonstrations, interactive note-blending experiences, and ornate, sensual spatial design to create a multi-sensory effect. To merge tailored experiences with interactive discovery, offer personalized consultations and fragrance profiling in conjunction with smart in-store digital integration via virtual mirror try-on apps. To reduce environmental effects, offer refillability programs and sustainable packaging solutions. Collaborate on unique installations that reflect the brand values of third-party luxury merchants. Use data integration to personalize messaging based on CRM insights into consumer preferences and interests.

Maintain messaging coherence, tactile quality across assets, and a sense of Morton Brown's vision, meticulousness, and imagination throughout to create both emotional and rational connections among target consumers. Maintain a continuous blend between artistry leadership claims and approachable luxury. Strategic marketing communications immerse consumers in Morton Brown's distinct world on a sensory level, resulting in profound connection and lasting affinity with scent fans across platforms (Constantinescu-Dobra, 2019).

Mapping of Brand Positioning

Morton Brown is positioned as an artisanal niche fragrance firm that creates perfumes in the same way as bespoke works of art are created. This positioning stems from the company's dedication to natural botanical formulas, sustainable ingredient sourcing, perfume workmanship, and ethical manufacturing practices.

Morton Brown's identity is rooted in the sensory pleasure and emotional resonance provided by its perfumes. It offers amazing olfactory craftsmanship as a hub of invention and creativity led by renowned perfumers. It also offers responsible enjoyment as custodians of sustainable fragrance traditions and natural extraction procedures. This dual stance fosters affinity among two key customer groups: fragrance creators and conscious hedonists.

The Fragrance Creator is driven by innovation and is fascinated by the vision, creativity, and technical proficiency required to create perfumes. Their purchase supports artistic vision while also letting them to identify as supporters of fragrance craft.

The multimodal enjoyment of excellent perfumes, combined with ethical values of sustainability and responsible sourcing, drives the Conscious Hedonist. Purchasing Morton Brown perfumes allows you to have luxurious experiences that are linked with your particular values regarding green living.

Both categories see niche scents as meaningful craft objects connected to personal passions such as artistry, sustainability, and sensory delight (Inviqa. com, 2023). While competitors may focus on one perspective, Morton Brown's brand identity is built on delivering the apex junction across both dimensions to establish a category-exclusive value-rich positioning.

Everything from formulation intricacies to visually striking container design to detail-oriented boutique surroundings brings this approach to life across touchpoints in a concrete, consistent, and competitively unique manner. The ensuing reputation establishes Morton Brown as the world's premier fragrance house for ethical and inspiring scent creativity.

Conclusion

In summarizing Morton Brown's brand marketing analysis and product rethinking, there are certain critical differences to note. Morton Brown participates in a rapidly expanding global fragrance market, notably in luxury niches. There are enormous opportunities in the fields of ethical luxury, sustainability claims, experiential retail development, and brand legacy exploitation. Although competitors vary, they all strive for the same client motivations: sensory pleasure and values-aligned indulgence. In strategic implications, to build competitive advantages, the Innovation pipeline must maintain artisanal qualifications and long-term formulations. Luxury appeal should be enhanced by Omni channel brand messaging, while engagement should be personalized across touchpoints. Premium pricing can be kept up by constantly improving perceived sensory distinction, quality cues, and service levels. In the future variances, the dedication to responsible perfumery skills and ingredient integrity remains critical to brand success. Morton Brown is positioned for ongoing leadership in ethical luxury niche fragrance categories, thanks to a strategic focus on developing customer tastes and values in the midst of industry developments.

References

Book

  • Kimmel, A. and Kimmel, A.J., 2019. Psychological foundations of marketing: the keys to consumer behavior. Routledge. Available at: https://www.taylorfrancis.com/books/mono/10.4324/9781315436098/psychological-foundations-marketing-allan-kimmel-allan-kimmel [Accessed on: 24.11.2023]

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  • Falco, A., van der Tol, K. and Jambu, L.M., How fragrance brands can create a memorable and positive brand experience online.
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  • Jung, S.T., 2021. Analysis of Pest Prevention Packaging Cases in Preparation for Consumer Complaints Caused by Global Warming in the Product Distribution Process: Focusing on Poly Bag Packaging for Hygiene Products in Company A. KOREAN JOURNAL OF PACKAGING SCIENCE & TECHNOLOGY, 27(1), pp.9-16.
  • Linardi, S., Morton, R.B., Ou, K., Qin, X. and Sahadewo, G., 2022. The Price of Religion: An Experiment on the Effect of Religious Prohibitions on Economic Behavior.
  • Payne, J.E., 2021. Understanding consumer perceptions of hotel toiletries (Doctoral dissertation).
  • Singh, S. and Jang, S., 2022. Search, purchase, and satisfaction in a multiple-channel environment: How have mobile devices changed consumer behaviors?. Journal of Retailing and Consumer Services, 65, p.102200.
  • Ugwu, P.A. and Okeke, T.C., 2023. CELEBRITY ENDORSEMENT AND PATRONAGE INTENTIONS OF POLITICAL PRODUCTS IN NIGERIA: A LITERATURE REVIEW. INTERNATIONAL JOURNAL OF HUMANITIES, SOCIAL SCIENCES AND BUSINESS (INJOSS), 2(2), pp.188-217.
  • Viswanathan, M., Baskentli, S., Gallage, S., Martin, D.M., Ramirez-Grigortsuk, M. and Subrahmanyan, S., 2021. A demonstration of symbiotic academic-social enterprise in subsistence marketplaces: Researching and designing customized sustainability literacy education in Tanzania. Journal of Public Policy & Marketing, 40(2), pp.245-261.

Article

  • Constantinescu-Dobra, A., 2019. Do Europeans appreciate the Romanian cosmetic products? An empirical study. Marketing From Information to Decision, (2), pp.149-162. Available at: https://www.ceeol.com/search/article-detail?id=238438 [Accessed on: 24.11.2023]

Website

  • Inviqa. com,(2023) Available at: https://inviqa.com/case-studies/molton-brown [Accessed on: 24.11.2023]
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