scent marketing : what does your brand scent like? - hydroemission

Scent Marketing What does your Brand smell like? CUHK Business School, Hong Kong, 4 February 2015

By Mr Paolo Nalin MD Hydroemission

Agenda

1.  Hydroemission: a material science company in the Scent Marketing industry

2.  Concepts of Scent Marketing

3.  Application across various industries

4.  Fragrance customization and technologies involved

5.  Industry Trends and Practical issues

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6. Design of CUHK Signature Scent

A SINGAPOREAN COMPANY EMERGING FROM MATERIAL SCIENCE

Singapore

Hong Kong

Shanghai

Fully owned office

Hydroemission direct support

Jakarta

Bangkok

Tokyo

Macau

Guangzhou Delhi

Kuala Lumpur

Dubai

Singapore -  Product development -  Research & development -  Manufacturing -  Training support -  Technical support Hong Kong -  Installation support -  Training support -  Technical support Shanghai -  Installation support -  Training support -  Technical support

We plan to support directly from Singapore and Hong Kong.

Helsinki

HYDROEMISSION CONTROLLED RELEASE TECHNOLOGY

Hydroemission’s approach is to operate at a macroscopic level; to extend an approach usually limited to the pharmaceutical industry to consumable goods.

Agenda




4.  Fragrance design and technologies


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SCENT MARKETING VALUE LADDER

The most basic usage of fragrances as air fresheners Odor Control

valu

e

The diffusion of fragrances in retails and other business environements in not a new practice, but the application of a fragrance identified and reserved for a Brand is a growing trend among Marketers, Brand Managers and Visual Merchandisers.

Scent Marketing

Through a signature scent, Scent Marketing connects consumers to your brand on a whole new level that is impossible to reach with traditional methods

Customer Journey

Different fragrances guide customers at different stages of engagement (used mostly in hotel industry and Office Management)

Ambient Scenting

A scented environment leads customer to retain a longer lasting positive memory

We refer to Scent Marketing for projects driven by an explicit managerial effort toward brand building and revenue increase, and only when the scent is selected following a Brand Analysis exercise

SCENT MARKETING EFFICIENCY

•  People’s moods improve 40% when exposed to a pleasant fragrance •  Humans recall 35% of smells and can associate them to particular

memories or situations

•  You can expect an sale increase of 20% in scented environment assumed that the scent is pleasant, congruent, of the right intensity.

Sales increase 20% more if the scent is based on simple notes

SCENT MARKETING EFFICIENCY

•  Las Vegas slot players spent 45% more money in a scented environment than those

in an unscented location

•  Between equivalent products, 84% of respondents preferred items presented in scented rooms

•  The addition of a scent to a visual ad increased the recall rate by 500% respect to same ad without a scent

•  Between equivalent products, respondents remember more attributes of products being presented in scented environment

•  When asking customers about their impressions of a DIY store, positive responses rose 50% after scenting.

•  Staff is perceived to be harder-working and more knowledgeable in scented stores.






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Agenda

VM : Create excitement to draw your customer into your world

• Plan traffic flow : develop planograms to study the traffic flow • Stimulate all 5 senses : attract not only with sight but smells, touch, sound and taste • Assess Demographics KAOS approach Kinetic : depict motion, not just static imagery Assortment : show depth in your presentation of multiple product offerings Over-communicate : enforce your theme across multiple senses in all stores Sale! – Again, your end result is to attract sales by leading the customer through the entire store. Make sure high demand merchandise is in the back of the store.

Benchmark for Visual Merchandising is VMSD magazine : http://vmsd.com Just released VSSD LookBook 2015 : �http://www.nxtbook.com/nxtbooks/STMG/vmsd_201501/

Visual merchandising is the activity and profession of developing the floor plans and three-dimensional displays in order to maximize sales.

VM : Create excitement to draw your customer into your world

The Customer Journey : a view of a Hotel Industry’s benchmark

The customer journey is the complete sum of experiences that customers go through when interacting with your company and brand. Instead of looking at just a part of a transaction or experience, the customer journey documents the full experience of being a customer.

The Marketing Department ensures that the Brand is perceived congruently across the whole Customer Journey.






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Agenda

SCENT SELECTION

...to enhance your marketing proposition without incurring the efforts of a branding exercise

PROS: -  The best way to start and to gain confidence on the product -  Fast to kick off

CONS: -  Another brand may have your same fragrance -  You may not have exactly what you were looking for

SCENT DUPLICATION

...to implement your global guidelines or to follow your instinct.

PROS: -  Ideal if you follow global guidelines, or if you already have a very clear point of

view of the direction to follow -  The fragrance is reserved for your Brand -  Can leverage on fragrances already developed for the Brand, and sold in the

stores

CONS: -  can be lengthy to finalize the perfect match of a fragrance

SCENT DESIGN

...to create a unique positioning of your Brand in the Customer’s perspective.

PROS: -  Most effective for Brand positioning and Brand differentiation -  Fragrance is uniquely designed around the Brand’s needs -  Fragrance is reserved for the Brand

CONS: -  It requires the involvement of the management for data collection and

fragrance selection

SIGNATURE SCENT DESIGN

...to create a unique positioning of your Brand in the Customer’s perspective.

Brand Characterization

Fragrance Design

Fragrance Formulation

Signature Scent Design

Brand Characterization: to analyze all aspects of the brand identity and translate them into basic fragrance notes

Brand Characterization requires an holistic approach to analyze an extensive set of information collected through market research and proprietary web-based survey. Information ranging from the Corporate Identity to the expected User Experience are then translated into basic Fragrance Notes.

CORPORATE BRANDING CUSTOMER PROFILE

FRAGRANCE NOTES

Design: to convey an emotion into a tangible fragrance

PERFUMERY

TOP

MIDDLE

BASE

In the Scent Design phase, we elaborate information arising from the Brand Characterization and we match it against concepts of Aromatherapy, Perfumery and Psychology, to develop the Base, Middle, and Top notes that will identify your Brand. The Scent Design usually identifies two to thee fragrances that are later presented to the Client for the final selection.

Commercially Available Essential Oils and Their Corresponding Scent Profile and Effects on the Mind and Body

December 2013

Hydroemission Corporation Pte Ltd Pg 1 of 3

ESSENTIAL OIL SCENT PROFILE EFFECTS ON MIND & BODY

Aniseed Sharp, aniseed Relaxing

Basil Sweet, licorice like Refreshing, invigorating

Bay Sweet, spicy Warming

Benzoin Smoky, woody Uplifting, warming

Bergamot Spicy citrus Uplifting

Black pepper Spicy Warming

Cajeput Camphor-like Relaxing

Cedarwood Woody Soothing

Chamomile Sweet, fruity smell Soothing

Cinnamon Warm, spicy Warming

Citronella Sharp citrus Refreshing, uplifting

Clary sage Nully, earthy Relaxing, euphoric

Clove Spicy, warm Stimulating

Cypress Pine Stimulating

Eucalyptus Sharp, camphor-like Refreshing, invigorating

Fennel Aniseed Energizing

Frankincense Rich, musty Comforting

Geranium Sweet, floral Stimulating

Formulation: to streamline preliminary ideas and finally obtain the first release of your fragrance

Once the selection has been finalized, the conceptual design is sent to our perfumers to craft it into a fragrance. After the formulation is completed, the Client is presented with a selection of usually 2-3 fragrances for the final selection. At this point, we are ready for user groups, to scent your flagship store, and to go live.

PRODUCTS IN THE SCENT MARKETING INDUSTRY : HAND DELIVERY

PRODUCTS IN THE SCENT MARKETING INDUSTRY : OIL BURNER

PRODUCTS IN THE SCENT MARKETING INDUSTRY : DISPENSER

PRODUCTS IN THE SCENT MARKETING INDUSTRY : NEBULIZER

PRODUCTS IN THE SCENT MARKETING INDUSTRY : SCENT FILM

SCENTFILM™ COMPARISON TO EXISTING SOLUTIONS

SAFERY ASPECTS OF SCENT MARKETING

After some time that I am in the store, I cannot smell the fragrance anymore. Why ?

10 – 20 micron scent particle

1 – 5 micron scent particle

The ScentFilm is the only product in the Scent Marketing industry to be green certified :

•  Based on natural vaporization

•  Vapor molecules are in the range of 10 – 20 microns, hence do not enter lungs

As the molecules do not reach the lungs, once you are exposed to a fragrance for a certain time, your nose gets used to the fragrance and you do not smell it anymore.

To smell it again it is enough to awaken your nose with a neutral odor, like coffee or your own skin, or to leave the space for a brief period.

Agenda






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MARKET TREND : PRODUCT LINE EXTENSIONS

Hydroemission only offers products that are designed and manufactured in its premises in Singapore, and –by choice- it maintains a complete transparency about sourcing of other product line extensions. In addition to the ScentFilm Hydroemission’ offer includes : •  Fragrance for reed diffusers and ambience candles •  Customized ScentBlock as VIP gifts or for small areas We are even glad to support you in the procurement of reed diffusers, scented candles, ambient sprays using your fragrance of choice.

ScentBlock Reed Diffusers, Ambient Scenting

MARKET TRENDS : HOW TO TRANSFORM A SCENT MARKETING STRATEGY INTO A PROFIT CENTRE

FRANCHISEES

BRAND purchases the ScentFilm from Hydroemission with a blanket order. Upon order, Hydroemission ships the ScentFim to the BRAND HQ for redistribution to initial franchisees. Minimum production batch : 10 pcs

The BRAND introduces usage of the ScentFilm with its exclusive fragrance among the requirements towards its franchisees. The BRAND adds controls on the application of the ScentFilm into its internal audit plan.

BRAND BRAND

MARKET TRENDS : HOW TO TRANSFORM A SCENT MARKETING STRATEGY INTO A PROFIT CENTRE

HOTEL

Preselect a scent for your room

Purchase Aromatherapy for your stay

Purify your room

PRACTICAL ISSUES IN SCENT MARKETING FOR RETAILERS

When a Marketing manager looks into Scent Marketing, the characteristics that he should look at are: safety, flexibility, invisibility and cost.

Safety A retail manager has enough problems to keep him awake at night, and he doesn’t need to add any more related to the health of its personnel, leakages or fire hazards.

Cost A Manager may like the concept of Scent Marketing, but he is constantly firefighting against increasing costs. It is understandable that he may only want to allocate a limited budget to Scent Marketing.

Invisibility It is bizarre that after spending so much effort in the retail design, a manager accepts a black fuming box standing on the shelves of the store… but it happens.

Flexibility The fragrance must be pleasantly and evenly distributed around the shop.

Read more at: h>ps://plus.google.com/+Hydroemission/posts/eTCvf44rZA8

PRACTICAL ISSUES IN SCENT MARKETING FOR THE HOTEL INDUSTRY

In the Hotel Industry, decisions with regard to Scent Marketing are taken at the General Manager or HQ levels, and then passed down to the Housekeeping department for implementation. Frequent issues to address are: -  Fragrance match to follow HQ guidelines -  Consistency of the Scent Marketing proposition through the customer journey -  Health aspects of the technology being used -  Fire hazards -  Product theft -  Cost

Agenda






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ENVIRONMENTAL DESIGN

ANALYTICAL INPUTS TO THE SIGNATURE SCENT DESIGN EXERCISE

Purple

Orange Yellow

Grey

Nobility

Beauty

Loyalty

Active

Commitment

East meets West

Prestigious

Historical

Global

CORPORATE IDENTITY

CUSTOMER EXPERIENCE

CUSTOMER PROFILE

PRODUCT OFFERING

Modern

Young

Spacious

Bright

Professional

Purple

Earth tones

Wood

17 – 65 years old

Male & Female

Diverse profession and background

Chinese

Modern

Energetic

Uplifting

Comfortable

Happy

Satisfying

Undergraduate, postgraduate and

executive education programs

From CUHK’s brand guidelines, we derived a set of key attributes in aspects ranging from the brand identity to the environmental design as inputs to the signature scent design exercise

FOUNDATION OF THE CUHK SIGNATURE SCENT

Pine, Cedarwood, Sandalwood, Velvet, Leather, Suede, Black pepper, Black sesame

TOP

HEART

BASE

Blackcurrant, Blueberries,

Orange, Bergamot, Lotus, Freesia,

Cyclamen, Peony

Violet, Sunflower, Rose, Orchid, Tulip Lavender, Chamomile, Geranium, Jasmine, Cherry

Blossom, Vanilla, Honey

From the scent matching exercise, a series of scent ingredients are identified as representative of the key attributes of the CUHK brand, based on the science of aromatherapy, aromachology and research on market trends. These ingredients are rearranged into a scent pyramid with top, heart and base notes, forming the foundation of the CUHK signature scent.

VARIATIONS OF THE CUHK SIGNATURE SCENT

Modern Young

Energetic

Happy Satisfying

Comfortable

Nobility Prestige Historical

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Variations of the CUHK signature scent are created to reflect the different key elements of the brand. This is achieved by varying the proportion of the scent ingredients, emphasizing a particular note. As a result, each profile has unique characteristics and creates its distinct ambience and moods.

Singapore Hydroemission Corporation Pte Ltd 229 Mountbatten Road #03-38, Mountbatten Square, 398007 Tel. (65) 3158 2994 Fax. (65) 6491 6541

Hong Kong Hydroemission (HK) Limited Unit 1001, 10/F, Miramar Tower, 132 Nathan Road, Tsim Sha Tsui Tel: (852) 5808 3855 Fax: (852) 3010 9480

China Hydroemission Corporation Pte Ltd Shanghai Representative Office Suite 5167, Raffles City, 268 Xi Zang Middle Road, Shanghai, 200001 Tel: (86) 21 5157 8043 Fax: (86) 21 2312 7777

Mr Paolo NALIN

[email protected]

www.hydroemission.com