jo malone london pop up store

FASM 410 Retail Management Fall2016Professor Alessandra Cannata

Shaniya Shabrah-Oritz | Pan Wang

Company SummaryAbout Jo Malone London

Brand Identity MatrixSWOT Analysis

Current DistributionPrice/Accessibility Matrix

Communication & Promotional Activities

Market AnalysisFragrance in ChinaPESTEL Analysis

CompetitorsIndirect competitors

Target ConsumerDemographicPsychographic

Customer In China

Store Location Design and ProductStore Location

Area AttractionLogistic and Infrastructure

Human ResourcesCompetitionPop Up Shop

Communication And Promotional PlanProduct PlanFinancial Pan

Bibliography

Executive Summary

Content

In 1983, Jo Malone began mixing bath oils in her kitchen and from there the British fragrance house Jo Malone was founded. They are known for their iconic packaging and elegant, but simple scents, with unex-pected ingredients. Jo Malone has grown into a worldwide company, reaching over 41 markets. However,

only 19% of their total net sales come from the Asia/Pacific region, which is why we see this as a big oppor-tunity for Jo Malone.

The China market has huge growth potential. The Chinese people are interested in western lifestyle and have a strong purchase power. To further increase the Jo Malone presence in Asian countries, we will be

opening our pop up shop in the IFC Mall, Shanghai, China. In addition, we will be hosting a launch party in the Ritz Carlton hotel, which is on the upper floor of the IFC Mall. We will be

promoting the shop and event on all of our social media pages. With the launch of our party and pop up shop, we see this as an opportunity to educate potential customers today to reach a certain profitability of

Jo Malone. We also want to reach the younger generation with the goal of leaving a lasting impact that will increase the penetration of Jo Malone in the market.

Executive Summary

Jo Malone London is a British fragrance house known for elegantly simple scents with unexpected ingredients and a unique twist. As well as coveted colognes, Jo Malone Lon-

don creates luxurious scents for bath, body and home. They are distinctive yet understat-ed, perfect alone or artfully layered with Fragrance Combining™, and synonymous with

gift giving, Jo Malone London is a thoughtful and generous statement from a small token to the grandest of gifts. Wrapped in our iconic cream and black box, tied with grosgrain

ribbon, Jo Malone iss always elegant and always appreciated.

About Jo Malone London

Strong Brand Identity

High Quality

Financial stability from being a part of Estee Lauder

Diversification of products

Strong Personalization

Low Brand Recognition

Lack of Advertising / Promoting

Strengths Weaknesses

Demand in Men’s Designer Fra-grance Market

Expanding in the Asia pacific market

Demand for skin care products due to aging in America

Big Competition Between Fashion House’s Fragrance Line

The White Company (Similar aesthetic and product line & British company )

Opportunities Threats

Brand Identity Matrix

Brand as a person

British AffluentElegantDriven

Knowledgeable

Brand as product

Brand as a symbol Brand as an organization

British heritage Consistent

Modern Minimalistic

Luxurious

Current Distribution

Jo Malone London was acquired by The Estée Lauder Company, Inc. in 1999. Today the brand is available in 22 countries and territories. In the US, Jo Malone London is sold in Belk, Bloomingdales, Dillards, Blue Mercury, Neiman Marcus, Bergdorf Goodman, Nordstrom, Saks Fifth Avenue. Their turnover is 76 million

dollars and their net assets are 12 million dollars.Jo Malone London first launched in the Asia Pacific Region in Japan, in 2008.

Price/Accessibility Matrix

Price

Accessibility

ChanelNeiman MarcusBergdorf GoodmanBloomingdalesSaks Fifth Avenue Lord & TaylorMacy's BelkDillardsNordstromSephoraBonton

Jo Malone London: BelkBloomingdalesDillardsNeiman MarcusBergdorf GoodmanNordstrom Saks Fifth Avenue

Byredo: Neiman MarcusBarneysSears

Tom Ford:Barneys BloomingdalesLord & TaylorMacy's Neiman Marcus Bergdorf GoodmanNordstromSaks Fifth AvenueSearsVon MaurSephora

Roja Dove:Neiman MarcusBergdorf Goodman

Guerlain:BelkBloomingdalesThe Bon TonDillardsLord & TaylorMacy's Neiman MarcusBergdorf GoodmanNordstrom Saks Fifth AvenueSearsSephora

Diptyque:BarneysBloomingdalesNeiman MarcusBergdorf GoodmanNordstromSaks Fifth Avenue SearsSephora

Average Price Range: $72 - $325

Average Price Range : $72 - $350t

Average Price Range : $72 - $595





Most of the Jo Malone London's current promotion is digitally based. They are active on their website and numerous social media platforms. Jo Malone’s website provides information about their brand and showcases the diversification of their products. One promotion they are offering for the holidays is allowing customers to choose a complimentary sample with each order. On Facebook, they have 602,897 likes and they post upcoming events and a variety of new products to keep their followers in the loop. On Instagram, they have 362,000 followers on Instagram. They cater towards a younger demographic by posting a lot of GIF's. Their Pinterest is used to showcase specific products and themes of their brand. They have 49.4 thousand followers on

twitter, which is there smallest following out of all their social media platforms.They will launch special edition products for holiday such as the Merry Mischief Christ-mas. They launched the Christmas limited edition scent Orange Bittes and they have

special gift boxes and ribbon for the holidays.

Communication & Promotional Activities

Boutique ServicesCustomers can take a seat at the Tasting Bar™enjoy a complimentary and luxurious Jo Malone™

Hand & Arm Massage. Also, experience scented discoveries with our compliments.

Tailor Your ScentThe stylists will show the customers how to create a scented signature with Fragrance Combin-ing™. Jo Malone™ scents can be worn solo or layered for a truly individual effect. The customers

can create something unexpected.

Decorate with ScentCustomers can learn how to transform any room, any occasion with candlelight and scent. Any room, any occasion, transforms when it’s styled with scent. A way to personalize customers’

home with candles, elegant diffusers and room sprays.

Style Your WeddingA personal consultation to help customers dress the venue with scent, choose gifts and create the ultimate touch… your bespoke scent. Adorn customers’ day with the ultimate signature touch from Jo Malone London. Bespoke inspiration for brides, inviting fragrances that transform any

venue and gifts to spoil every guest.

Services

Fragrance in China

The Chinese account for 20% of the world’s population, but only contribute 1% to value sales of fragrances. During the cultural revolution, the use of perfume was illegal. This caused the

Chinese people to not be accepting fragrance products. As a result, only 1% of Chinese people use perfume. They will only wear perfume on a special occasion or when it is recieved as a gift. However, the Chinese are now more accepting of western lifestyle, espeially the younger gener-

ation.Chanel, Parfums Christian Dior ,Calvin Klein, Hugo Boss and L’Oréal have established high

brand awareness among Chinese consumers. Jo Malone London can compete with these compa-nies if they build up their brand awareness. The Chinese consumers prefer single not or simple scents. Jo Malone specializes in simiple scents and can provide them with the best product on

the market.

PESTEL Analysis

Political will for economic growth

Riots have been happened

Will to creates safe environment for foreign investors

The political force is the most unset-tled force

China's economy has been reformed and opened since 1978

The second-largest economy in the world

Sigh rate of savings, abundant and skilled labor, more export business,

potential urban growth

High inflation rate, high property prices

Last year the value of Yuen dropped

B2C industry does not have a safe and stable online payment system

Only 1 percent credit card penetra-tion in China

The lack of safe online credit card payment system is one of the key

reasons for this low usage and pene-tration.

Set up a relative complete law system to encourage foreign companies to

invest

P E

T E

Literacy rate in China is over 90%.

420 million Internet users

E-commerce has changed how local consumers see shopping

Taobao is the largest local e-com-merce website

Still a group who wish to avoid the perceived risk associated with online

shopping

Only 1% of Chinese using fragrance product

Pollution control was great investedCampaigns the quality of air in some

cities has been improved

Pros:

Huge size of the market

Very low cost of labor

Government encourage foreign companies to invest

China’s growth potential together is remarkable

Cons:

Local Differentiation Is Huge

The Strengthening Of Core Compe-tencies In Certain Areas And Business

Activities Are Unbeatable

Chinese Are Culturally Not Fully ac-cepting Fragrance Yet

S

L

direct competitors

Guerlain is a French perfume and cosmetic company founded by Pierre Pascal Guerlain. Since then they have had 5 generation of perfumers who have succeeded one another, holding the cre-ative reins. In 1994, they were acquired by LVMH and since then they have been well known for their fragrances. In the US, they are only located in major cities: NYC, LA, and Atlanta. While in Paris, they have 9 stores and in China they only have one store, which is located in the Shanghai Four Seasons Hotel. They hav-en't had any pop up shops. Their products are available on their website and in Sephora. Their prices are similar to Jo Malone, they range from $65 - $300.

Diptyque was originally a wall paper design studio that evolved into a Parisian luxury brand, that makes high end lines of fra-grances, body care, and candles. It was founded by Christiane Gautrot, Desmond Knox-Leet, and Yves Coueslant. All of their fragrance scents are derived from nature. They are known for their iconic emblem shape and gift wrapping. They have 532 in-ternational stores, 146 stores in the US, and 14 stores in China. They had one pop up shop in Beijing, China from December 2015 to January 2016. Diptyque is an anti marketing company. They focus on their social media and word of mouth to promote the brand and products. Their products range from $50 - $300. Diptyque is available worldwide.

Indirect competitors

Our strongest competition comes from indirect competitors that are luxury brands. Jo Malone occupies low market share even though perfume is our major product because the luxury brands can attract consumers by their fame. Consumers who cannot afford a Chanel bag can buy a Chanel perfume. This way they can still feel exclusiv, without spendinga fortune. Also, the luxury brands have their apparel line to entice the consumers,

which Jo Malone doesn’t have.

The major indirect competitors includes Chanel, Tom Ford, Dolce & Gabbana, Louis Vuitton, Giorgio Armani, Gucci, Dior, Prada, YSL, Cartier. Their price range are from $50 - $500.

Men and Women from ages 20-45 Middle to Upper ClassIncome above $50000

College Graduates Value high quality products and name brands Driven, affluent, optimistic, and sophisticated

Enjoy dinning out, drinking tea, and reading in a cafe

Target Customer

Robert Lee 40 years oldAdvanced financial controllerIncome $100,000Drives a Mercedes SLLives in a penthouse with a home theater systemCares about name brands and the quality of productsEnjoys collecting wine and shopping online at Jo MaloneWears Jo Malone's Wood Sage and Sea Salt Cologne

Mary Chen 33 years old

Foreign bank executive Drives an Audi TT

Income $75,000Speaks 4 languages

Enjoys buying expensive watches and going to the gymWears Dolce and Gabbana Light Blue, but wants to try

Jo Malone

Jessica Wong22 years oldAssistant Magazine EditorIncome $18,000Uses public transportation to get aroundShops at Zara, H&M, and Top Shop Wants to wear Jo MaloneBig on celebrity influences like Kendall & KylieVery tech savy and keeps up to date on all the current trends

Customer In China

Store Location

We choose to open our pop up store in Shanghai IFC Mall. IFC Mall is a six story world class shopping mall more than 110,000 square meters that located at No.8 Century Avenue in the heart of the Little Lujiazui financial and trade zone. It provides a spectrum of the finest retail offerings to the best international luxury

brands.

The IFC Mall is located in the heart of Shanghai. It is surrounded by many attractions and means of transportation. The subway has two different lines that stop at the mall. Eleven buses stop at IFC, along with the Maglev train. The Pudong International Air-port is only 40 minutes away and the Shanghai Hongqiao airport is only 35 minutes

away. Since it is in the middle of the city and there is a variety of transportation, many tourists and locals visit the mall. Their services include: baby carriage services, lim-ousine services, concierge service, and even a golf cart service. Along with the 1,900

parking spaces, they do offer valet parking. Shanghai IFC mall gives their customers a remarkable shopping experience and is one of the best luxury shopping destinations

in the world.

Logistic and Infrastructure

There are many landmarks around the Shanghai IFC Mall, including the Oriental Pearl Tower, Shanghai World Financial Center, Shanghai Tower Observation Deck, Jin Mao Tower ,Shanghai Ocean Aquarium, Pudong Riverside Promenade and China Art Mu-

seum. Those landmarks bring millions of visitors every year.

Area Attractions

Store Manager Salary: $70 an hour + compensation fee $2000Assistant Manager Salary: $40 an hour + compensation fee $2000

5 Fragrance Experts Salary: $20 an hour + 6% commission fee

Human Resources

Store Manager

Fragrance Expert

Fragrance Expert

Fragrance Expert

Fragrance Expert

Fragrance Expert

Assistant Manager

Competition

During the beginning of the holiday season, IFC is filled with both locals and tourists. These individuals are looking for luxury items to treat

themselves or give as gifts to friends and family. Jo Malone's competition will come from other stores in the mall for example, Chanel, Dior, Dolce and Gabbana, Armani, Hermes, and Prada. We will have an advantage over our competitors because we are the only fragrance house in the

entire mall.

Location In The Mall

The Jo Malone Pop Up Store will be located on the ground floor where there is the most foot traffic. This area is between Chanel and Dior and

many events are held here monthly.

Pop Up Shop

The Jo Malone Pop Up Store is 50’ x 17’. The store will be open from November 1st to December 1st. Our pop up shop is in an open floor plan so the customer can navigate around the store easily. We want the customer to have access to all of our products, be able to interact with the space, and develop a familiarity of what Jo Malone is about. We wanted to keep the shop very minimalistic and classic, sticking to the Jo Malone

aesthetic. The pop up shop will carry merchandise from our regular brick and mortar stores as well as online. Our fragrance experts will assist the customers and provide

them with knowledge about the product. Our payment methods include: cash, credit cards, and wechat.

Cost of Pop Up Shop

For Jo Malone's pop up in Shanghai China, we will be promoting through social media. Due to China's strict laws on internet access, our promotions will be specifically through Weibo, Youku, Todou, WeChat, and Ren-

Ren. These are the most popular sites used in China. Weibo is equivalent to Twitter, Youku/Todou is equivalent to youtube, WeChat is an instant messaging service, and RenRen is just like Facebook. One month prior to our

opening, we will be doing sneak peak posts on our upcoming pop up shop. We want to inform the public and get them excited as well. We will be posting once a week on all our social media platforms up until the launch.

The day of our launch, November 1st, we will be having a launch partying later that evening in the Ritz Carlton Hotel. We will be sending out invitations to celebrities, bloggers, and fashion critics. We want them to write

about our pop up shop and blog about the event to continue building our presence and brand awareness. After the launch party we will be sending out thank you cards to all our guests for attending. During our post launch,

we will be continuing to promote our products through social media and encouraging buying online.

Communication And Promotional Plan

Included

COLOGNES Product Plan

CITRUS

BASIL & NEROLI

LIME BASIL & MANDARIN

GRAPEFRUIT

EARL GREY & CUCUMBER

Product Scent Name Size Retail Price Units

30ml

100ml

100ml

100ml

100ml

30ml

30ml

30ml

$65

$65

$65

$65

$130

$130

$130

$13030ml

100ml

100ml

100ml

100ml

30ml

30ml

30ml

$65

$65

$65

$65

$130

$130

$130

$130

FLORAL

MIMOSA & CARDAMOM

ORANGE BLOSSOM

BLUE AGAVA & CACAO

PEONY & BLUSH SUEDE

30ml100ml

100ml

100ml

100ml

30ml

30ml

30ml

$65

$65

$65

$65

$130

$130

$130

$130

FRUITY

POMEGRANATE NOIR

ENGLISH PEAR & FREESIA

NECTARINE BLOSSOM & HONEY

BLACKBERRY & BAY

22

22

222222

22222222222222222222

2222

22

2222222222

22

SPICY

NUTMEG & GINGER

AMBER & LAVENDER

Product Scent Name Size Retail Price Units

30ml

100ml

100ml30ml

$65

$65

$130

$130

30ml100ml

100ml

100ml

100ml

30ml

30ml

30ml

$65

$65

$65

$65

$130

$130

$130

$130

LIGHT FLORAL

FRENCH LIME BLOSSOM

WHITE JASMINE & MINT

RED ROSES

WILD BLUEBELL

30ml100ml

100ml

100ml

30ml

30ml

$65

$65

$65

$130

$130

$130

WOODY

WOOD SAGE & SEA SALT

154 COLOGNE

BLACK CEDARWOOD & JUNIPER22

2222

22

22

22222222222222

2222

22

2222

22

COLOGNE INTENSE Product Plan

Product Name Size Retail Price Units

ORRIS & SANDALWOOD

INCENSE & CEDRAT

AMBER & PATCHOULI

DARK AMBER & GINGER LILY

OUD & BERGAMOT

VELVET ROSE & OUD

TUBEROSE ANGELICA

100ml

100ml

100ml

100ml

100ml

100ml

100ml

$180

$180

$180

$180

$180

$180

$180

33

33

33

33

33

33

33

DELUXE CANDLES

LUXURY CANDLES

HOME FRAGRANCE Plan


TRAVEL CANDLES

HOME CANDLES

60G

60G $35

200G

600G

2.5KG

$65

$200

$470

LIME BASIL & MANDARINPOMEGRANATE NOIRENGLISH PEAR & FREESIARED ROSESSENT SURROUND DIFFUSER

165ML $90

LIME BASIL & MANDARINPOMEGRANATE NOIRENGLISH PEAR & FREESIARED ROSESROOM SPRAYS

$65175ML

175MLLINO NEL VENTOACQUA DI LIMONELINEN SPRAY $65

30

30

30

40

25

15

40

RARE TEA Plan

$340


175ml

175ml

175ml

175ml

175ml

175mlGOLDEN NEEDLE TEA

MIDNIGHT BLACK TEA

OOLONG TEA

JADE LEAF TEA

DARJEELING TEA

SILVER NEEDLE TEA $340

$340

$340

$340

$340

15

15

15

15

15

15

FINANCIAL PLAN

Bibliography

http://www.jomalone.com/https://www.moodiedavittreport.com/jo-malone-london-enters-mainland-china-with-beijing-opening/http://pestleanalysis.com/pest-analysis-of-china/http://marketingtochina.com/market-perfumes-booming-china/http://www.kafkaesqueblog.com/2014/05/28/china-japans-fragrance-markets-culture/http://www.chinabusinessreview.com/understanding-chinese-consumers/https://www.statista.com/statistics/259221/global-fragrance-market-size/

Pop up Store Render credit Nicole Leung

jo malone london pop up store

Marketing