Course: Marketing and Management of Art Presented by Tiffany & Jennifer

December, 2010

“Woman who doesn't wear perfume has no future”— Coco Chanel

Which one is your favorite perfume?

30% Essence

Blend and create your own unique perfume.

55% Free Style

Scent of rose in bud, Warm odor of afternoon sunlight, Brisk smell of soap

5% Confidence

10% Elegance

DIY Fragrance Shop

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Our Shop & Logo

We found our inspiration from a book.

For women, finding a suitable, personal fragrance can be much more difficult than buying a dress or choosing some accessories. There are thousands different types of fragrance, decorated with stylish design and packed in delicate glass bottle which can easily catch people’s attention via their appearance. However, if these fancy perfume packing were took off, can perfume still catch women’s eyes? Or women are just simply pursuing the deluxe, fashion packing of perfume? In other words, when women are buying perfumes, what do they care the most: packing, brand of perfume, or fragrance its very self? Therefore, we believe that we can establish a “pure” fragrance shop, where no famous brand logos, superstar’s endorsement and advertising exist. Our customers can simply experience and enjoy the perfume as well as different scents. Most importantly, our customers can blend their own perfume in the shop to meet their preference and personal odor. We hope our shop can help our customers to express their unique style and broaden their experience and senses in smell.

Motivation

Demeter: Fragrance Library

Le Labo Fragrances

Inspired by two perfumers...

Motivation

“The point is to fall in love with a smell, to wear that smell, voilà. To realize that a carefully chosen smell that arouses emotion within oneself will make their life more beautiful. ”— Eddie Roschi, Co-Founder of Le Labo

In short, this is a DIY perfume shop:

• Everyone can blend and create their favorite and personal fragrance. • In the shop, we provide various raw materials for making perfume, including

essence, base oil, alcohol, emulsifier, hydrosols and natural dyes…etc. We also provide devices and tools for customers to use. Our customers only need to pay for DIY fees (bottles and materials included) and they can use everything provided in the shop to make their perfume.

• In addition to DIY hand-made perfumes, we also sell ready-made perfumes for customers who simply just want to buy from the options we created for them. (They are also very good and special, too!)

Introduction

Profile

Introduction

Simple, Elegant, Refreshing By using neutral and natural colors such as white, wood, green, we want to make our visual identity, including brand image and store decoration, very original and relaxing. This enables our customers to enjoy the pure amusement of creation without too much supplement, interference, and extra explanation.

Style

Introduction

• According to the data provided by Trendgo Research, the main consumers in perfume

market are 20~45 year-old females with college (or above) education background,

living in Northern Taiwan. Therefore, such consumer group is our target customers.

• To be more specific about our target customers, they are 25~40 year-old females with

middle-high income and sensitive to fashion trend and leisure life.

• Even though in Taiwan market there are still about 43% females who don’t wear

perfume, but according to the research there are still approximately 57% females who

wear perfume always or occasionally. Therefore, we believe DIY perfume business can

be much expansive in this market.

Introduction

Target Consumers

Frequency of Female Wearing Perfume

0% 12.5% 25% 37.5% 50%

15%

42%

43%

Never Occasionally Always

0%

25%

50%

75%

100%

Gender

83%

17%

MaleFemale

Location

29%

17%

54%

NorthMiddleSouth

Marriage

41%

59%

YesNo

Education

68%

29%3%

Junior high school (below)Senior high schoolCollege (above)

Taiwanese Perfume Consumer Profile

Introduction

*Chart resource: Trendgo Research

Goals Store Information Human Resource Purchasing & Vendors Cost Estimate Main Products Fragrance DIY Operation SWOT Analysis Marketing

Business Plan

【Short Term】 Offers cozy and convenient space for guests to

make their perfume

【Middle Term】 Occasional Lectures of perfume courses

【Long Term】 Driven the trend of perfume and man can also have

their own unique perfume

Goals

Store Information

Location: East Zone of Taipei City, Taiwan

Square footage：936 sq. ft.

Rent：$NT 135K/month

Interior decoration：$NT 2000K

Human Resource

ShopClerk- 2 Man 2 Shift (Full-Time) Total of 4

Work Time：10:00~16:00 / 16:00~22:00

Management

Treasurer - Accounting、Budgeting、Expense

Reports…etc.

HR Director - Training、HR…etc.

。

ProjectingLogistics Marketing Planning

Product & Purchase Business Planning

Asset Maintenance Business Development

Alcohol、Perfume、Flower Water、Emulsifiers、Dyes

First Chemical Works （Taiwan-made brand）

Flavor & Oil Feedstock

Perfume BottlesLI-CHANG Glass Manufacturing Factory

Other Materials

PackagingLabels、Cartons、Bags、Extra Packaging (ex. Ribbon)

EquipmentTest tubes、Beakers、Stirring rod、Tube racks、Freezer

Purchasing & Vendors

【Variable Cost】

HR Cost：Shop 80000/Month

Rent：135000/Month

Marketing Publicity： 3000/Month

【Fixed Cost 255 Million】

【Variable Cost 24.5 Million】

【Fixed Cost】

Decoration：200 Million

Purchase:

1. Natural Oil $5000 per 500ml Sixty kinds Total $300,000

2. Flavor $1700 per 500ml Hundred kinds Total $170,000

3. Cylinder $2000 per 100

4. Pressure Bottle $2000 per 100

5. Dropper $300 per 100

6. Breker $1500 per 100

7. Perfume Bottle $70000 per 2000

8. Alcohol $8640 per 144

Cost Estimate

Raw Material

Flavor

Oil

Alcohol

Perfumer

Flower Water (Plant

Essence)

Emulsifier

Perfume Dye

Perfume Flower Series Fruity Series Dessert Series Wine Series Life Series Original Series Natural Organic Oil Series Others

Organic Lotion

Whitening Lotion

Moisturizing Lotion

Hand & Foot Creme

Hair Creme

Main Products

Fragrance DIY OperationCustomers can choose bottle, volume and type of fragrance based on their

budget. There are 2 types fragrance: Eau de toilette and Eau de parfum.

Customers choose their bottle and type of fragrance at store counter and pay

to get bottle and they are free to use the tools and materials at DIY area. In

the DIY section, we also provide laptop and guidebook for customers’

references. There are also instructors at side if they have any query during

making the perfume.30ml 50ml 80ml

Toilette 550 750 950

Parfum 750 950 1250

Rate Card

Choose fragrance type: Toilette or Parfum and the

size of bottle.

Check out at counter and get the bottle

Make your own fragrance at DIY area

Finish your personal fragrance

Helpful Harmful

Internal

Strengths Weaknesses

1. High autonomy2. High flexibility3. Hand-made4. Customize 5. Combined with professional courses

1. High cost2. High price3. Unpopularity of wearing perfume in

Taiwan4. Uncertainty of customer’s

acceptance for new shop form.

External

Opportunities Threats

1. The trend of personalizing and customizing luxury goods

2. Rising feminism

1. Famous perfume brand with well-known perfumers’ and celebrities’ endorsement.

SWOT Analysis

In-store event: Hosting speech, workshop or small discussion group to

share about the fragrance making, inspiration and life style.

E-commerce: Official website combined with online shop and cooperate

with major shopping sites

Blogger cooperation: Providing bloggers trial products and request

them to write about the product as well as the brand.

Digital media: Facebook fan page and Instagram maintenance.

Marketing Plan

In-store Event

Speech - Invite famous perfume expert to give lecture/speech periodically to talk about tips

of making perfume and basic knowledge about fragrance.

Customer’s experience sharing - Hosting discussion group or tea time to customers and

share their fragrance DIY experience.

Fragrance Life - Hosting small events at holidays (ex. Valentine’s day, mother’s day,

Christmas…etc.). The event will focus on how to make holiday perfumes for gifting and party

or gathering occasion.

Marketing

Perfume Course - Offer perfume courses for people who are highly interested in

perfume and the manufacture. The courses are divided into 3 levels: elementary,

middle, and high level. The courses contains basic knowledge about perfume, raw

materials understanding, procedure of perfume manufacturing, and creative perfume …

etc. Customers who purchased perfume courses can get free perfume and materials to

encourage customers to buy and use our materials for DIY.

Membership - Customers who purchase courses or goods can accumulate their

purchased amount for free VIP membership. As VIP member, more discounts, small gifts

and extra free special courses are available. The aim of the membership is to stimulate

new customers’ purchasing and to maintain old customers’ relationship.

MarketingIn-store Event

Online Shopping

E-commerce Platform - In order to make customers be more convenient,

the shop is also available online. Customers can buy raw perfume materials,

tools, ready-to-use perfume and other products on the platforms such as

Yahoo!Shopping or PChome Shopping. Via famous and high volume online

shopping sites we are able to broaden our target customers and also

promote the store.

Marketing

Blogger Cooperation

Through cooperate with famous bloggers, we aim to use these

celebrity’s endorsement and high volume readership to enhance our

exposure. The cooperation is to provide bloggers perfume trials,

free DIY coupons or cooperation fee for inviting them to write about

the products and get their readers and fans’ attention. The

cooperation can be combined with press gathering, by inviting not

only bloggers but also target media (ex. editors, journalists,

columnists…etc.).

Marketing

Digital Media

【Social Media】Founding Facebook page to interact with customers. Using social

network to create more exposure via Facebook ads, event and connect with online

shop to spread the word-of-mouth marketing.

【Official Website】Introduce the brand, the store, fragrance related news

and informations. (ex. fragrance know-how, product introduction, latest

promotion, store information and FAQ.) Connect with our Facebook and e-

commerce platform.

Marketing

Conclusion

Although this can be a long and tough road to establish our own fragrance business,

yet at least we are dare to dream!

This is the basic model of new fragrance shop in Taiwan, and we believe by more in-

depth calculation and planning, it is possible to transform our dream into a real,

operating business.

“Energy and persistence conquer all things.”

-Benjamin Franklin

Summary

Thank����������� ������������������  You!