Marketing Strategy of Perfume World in the Light of Consumer Behavior in Bangladesh

A Report On “Marketing Strategy of Perfume World in the Light of  Consumer  Consumer Behavior in Bangladesh”

Course name: Consumer Behavior Course code:

424

Submitted To Muhammad Intisar Alam Assistant Professor, Department of Marketing, University of Dhaka. Submitted By “GROUP“GROUP- MYSTIC” Sl. N 1 2 3 4 5 6 7 8 9 10 11

NAME

ROLL

Jamal Hosen Subrata Kumar Shil Saikat Sen Gupta Md. kutub Uddin Anisur Rahman chowdhury Khadija Akhter Rupa Prosanjit Biswas Md. Mosleh Uddin Mahmuda Akter Lima Tahmina Akhter Md. Muniruzzaman Muniruzzaman

129 29 109 111 117 107 139 143 121 199 257

Section: A, BBA 18 TH Batch Department of Marketing, University of Dhaka.

Date of Submission: 2  December, 2015.  nd

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Course name: Consumer Behavior Course code:

424

Submitted To Muhammad Intisar Alam Assistant Professor, Department of Marketing, University of Dhaka. Submitted By “GROUP“GROUP- MYSTIC” Sl. N 1 2 3 4 5 6 7 8 9 10 11

NAME

ROLL

Jamal Hosen Subrata Kumar Shil Saikat Sen Gupta Md. kutub Uddin Anisur Rahman chowdhury Khadija Akhter Rupa Prosanjit Biswas Md. Mosleh Uddin Mahmuda Akter Lima Tahmina Akhter Md. Muniruzzaman Muniruzzaman

129 29 109 111 117 107 139 143 121 199 257

Section: A, BBA 18 TH Batch Department of Marketing, University of Dhaka.

Date of Submission: 2  December, 2015.  nd

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LETTER OF T RANSMITTAL RANSMITTAL

December 2, 2015 Muhammad Intisar Alam Assistant Professor, Dept Of Marketing University Of Dhaka. Subject: Submission of Term Paper. Dear Sir,

We have completed this term paper as a par t of our curricular program. The paper has been compiled as per your requirements. It gives us immense pleasure to tell you that working on this paper has given us a wide range of exposure. We are thus submitting this report with the hope that it lives up to your satisfaction. However we would be glad if you enlighten us with your thoughts and views regarding the report. In addition, if you wish to enquire about any of the aspects of the report, we would be glad to answer your queries. Sincerely Jamal Hossain ( Group Leader, On behalf of ‘Mystic’ ) ID: 129

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ACKNOWLEDGEMENT

The successful completion of this assignment has seen many helping hands, without which this would have been next to impossible. However, the space involved does not allow us to mention everybody individually. At first, all glory and honor is for Allah, the Supreme Being who bestowed profound  perseverance and ability on us to accomplish this work. We would like to express our profound and cordial gratitude to our honorable course teacher. As he has given us the chance to deal with such an interesting topic, we would like to offer thanks to our course teacher  Muhammad Intisar Alam. We would also like to show our gratitude to another person who has helped us understand different practical aspects in context of consumer behavior of Perfume World. Without his helping hand we could not be able to make this report. He is Md. Tanvir Alam positioned as  brand manager at Perfume World.

Muhammd Intisar Alam Assistant Professor Dept. of Marketing University of Dhaka

Md. Tanvir Alam Brand Manager Perfume World

Special & Grateful acknowledgement goes to our parents who enabled us to perform such activities. We enjoyed a lot to prepare this following interesting topic. Last of all, we would like to thank our group members of this course for their outstanding contribution.

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Contents

Executive Summary ................................................................................................................................. 7 Introduction ............................................................................................................................................ 8 Objectives ............................................................................................................................................... 8 Market Analysis ....................................................................................................................................... 8 Perfume World ........................................................................................................................................ 9 Competitors of Perfume world ............................................................................................................... 9 Conditions of Perfume World ................................................................................................................. 9 Marketing Mix of Perfume World ......................................................................................................... 10 Product.............................................................................................................................................. 10 Price .................................................................................................................................................. 14 Place .................................................................................................................................................. 14 (Banglaperfumes.com.bd, 2015) ...................................................................................................... 15 Promotions........................................................................................................................................ 15 Process .............................................................................................................................................. 15 People ............................................................................................................................................... 16 Physical Evidence .............................................................................................................................. 16 Gender role ........................................................................................................................................... 16 Perception Formulation ........................................................................................................................ 16 

Print Media: .............................................................................................................................. 17

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Tvc at shopping mall: ................................................................................................................ 17

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Digital Marketing: ..................................................................................................................... 17

Stimulus Factor ..................................................................................................................................... 17 Fragrance: ......................................................................................................................................... 17 Color:................................................................................................................................................. 17 Packaging: ......................................................................................................................................... 18 Size: ................................................................................................................................................... 18 Attitude Change Strategy of Perfume World ........................................................................................ 18 Original Belief .................................................................................................................................... 18 Changing Belief ................................................................................................................................. 18 Market Segmentation ........................................................................................................................... 19 Regional ............................................................................................................................................ 19

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Demographic..................................................................................................................................... 20 Psychographic ................................................................................................................................... 20 Estimation of current total potential customers of Perfume World .................................................... 21 Population......................................................................................................................................... 21 Learning about Perfume World by end user......................................................................................... 21 Operant Conditioning ....................................................................................................................... 22 Purchase Motive ............................................................................................................................... 22 Maslow’s Hierarchy of Need  ................................................................................................................. 23

Influence and Reference Group ............................................................................................................ 23 Word-of-mouth..................................................................................................................................... 24 Self-oriented value ................................................................................................................................ 24 Religious/secular:.............................................................................................................................. 24 Postponed/immediate gratification: ................................................................................................ 24 Environment-oriented value ................................................................................................................. 24 Traditional/change:........................................................................................................................... 24 Risk taking/security: .......................................................................................................................... 24 Performance/status: ......................................................................................................................... 25 Other-oriented value ............................................................................................................................ 25 Individual/collective:......................................................................................................................... 25 Youth/age: ........................................................................................................................................ 25 Masculine/feminine:......................................................................................................................... 25 Diffusion of innovation ......................................................................................................................... 25 Innovators: ........................................................................................................................................26 Early adopters: .................................................................................................................................. 26 Early majority: ................................................................................................................................... 26 Late majority: .................................................................................................................................... 26 Laggards: ........................................................................................................................................... 26 Motivational Conflict ............................................................................................................................ 27 Approach-Approach conflict: ............................................................................................................ 27 Consumer Decision Process .................................................................................................................. 27 

Problem Recognition:................................................................................................................ 27

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Information Search: .................................................................................................................. 27

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Evaluation of Alternative: ......................................................................................................... 28

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Purchase Decision: .................................................................................................................... 28 5

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Post Purchase Behavior: ........................................................................................................... 28

Recommendation for Perfume World (Based on Marketing Mix)........................................................ 28 Consideration of Price Sensitivity of People of Bangladesh: ............................................................ 28 Intensive brand awareness program ................................................................................................ 28 Increasing the number of outlet: ...................................................................................................... 29 Participation in the event sponsorship: ............................................................................................ 29 Conclusion............................................................................................................................................. 29 References and Bibliography ................................................................................................................ 30

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Executive Summary

We as a group “Mystic” were assigned to analyze the marketing strategy of Perfume World  based on consumer behavior. So in this report, we have tried to describe the analysis of the consumer behavior of the Perfume World. Firstly, this report has tried to state a brief company profile of Perfume World and its key competitors. Then going through this report, we would be able to define the marketing mix strategy taken by Perfume World based on consumer response to their business activities. After then, this has clarified the self-oriented, environment-oriented, and other- oriented value of the customers of the customers of Perfume World. Population distribution of the Perfume World has been showed in this report. In addition to, consumer decision process of customers regarding perfume in context of Perfume World as well as it also describes the motivational conflict of the customers of the Perfume World. Besides, this report has clarified the attitude change strategy, market segmentation strategy, and market segmentation variables of the Perfume World. At last, some recommendation for the Perfume World has been attached in this r eport.

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Introduction An understanding of the needs and behaviors of consumers is an intrinsic component of the development and implementation of successful marketing actions. Specific topics address the consumer decision process; situational and perceptual influences in consumer evaluation of marketing messages, products and services; motivation, learning and memory, personality, attitude and attitude change in marketing contexts; the influence of consumer demographics; and contextual influences on consumer behavior, including that of the online consumer. We will cover up consumer behavior analysis of perfume world. How they are applying the concept of consumer behavior in perfume industry. Besides, this report will also describe implications related to consumer the Perfume World in its practical journey in the Perfume industry. We will also able to understand the marketing strategy regarding consumer behavior taken by Perfume World to occupy a position in the target customers.

Objectives Here our principal objective in making this report is to learn how the company named as Perfume World applying the concept of consumer behavior in its business strategy. Objectives behind making this report have been mentioned below: 

Learning the marketing mix strategy of Perfume world based consumer behavior.

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Explaining and illustrating the major influences on customer choice of perfume.

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The process of human decision making complexity regarding perfume.

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Understanding the whole process through which Perfume World is performing in the market in context of perfume world.

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Understanding the promotional strategy planned and executed by perfume world to attract, motivate the purchase decision of customers regarding perfume.

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Understanding the factors which stimulate the customer’s motive to purchase pe rfume from the Perfume world.

Market Analysis Market analysis refers to those actions which are associated with examining the own company profile, competitors profile, and external situations etc. Here as our term paper is

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completely based on Perfume World, we have done a short analysis of Perfume World, competitors of Perfume World, and the consumer groups.

Perfume World Perfume world is basically a retail organization which sells various kinds of perfumes of different renowned brand all around the world to the end user. Perfume World is a kind of retail organization owned by a company named as Bangla perfumes. In fact, Bangla Perfume works with other 25 different companies in the perfume industry. Bangla Perfume is basically  playing the role of distributor here in the perfume industry of Bangladesh. So Perfume World is a retail organization completely owned by Bangla Perfume. Besides this Perfume World was established by two founders named as Khondokar Nazrul Islam and Zakir Hossain. Perfume World started its journey in the perfume industry of Bangladesh in 2008 through opening a show room in Bashundhara city at level 6. It basically imports it’s the various kind of luxury perfume brand from different countries.

Competitors of Perfume world Here we mentioned that Perfume World entered in the perfume industry in 2008. At that time Perfume World was only the retail organization which deals with the end user directly. It has got the first mover advantage in the perfume industry. At that time the key competitors of the Perfume World was Paris Perfume which belongs the company Prestige Bengle. Paris Perfume was the retail organization of Prestige Bengle. Paris Perfume owned by Prestige Bengal stayed in the market till 2013. Then they started another retail organization named as The Beauty Shop which is not completely based on perfume. They have diversified product line like cosmetics, and skincare etc. along with perfume. So in this scenario, the Beauty Shop can be claimed as the key competitor of Perfume world.

Conditions of Perfume World Perfume World can be described as a market leader in the perfume industry of Bangladesh. At present Perfume has got a very limited exposure to the target market. But they are going to install a massive change in their marketing strategy. Their promotional activities are not that massive like the big MNC. After an interview with the brand manager of the perfume world named Md. Tanvir Alam, he confirmed us that they are going to start an online based massive marketing strategy like email marketing, social media marketing etc. to attract the right target segment.

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Marketing Mix of Perfume World Product Product mix includes the all product offered by the perfume world. There are sub categories in the product mix. They are as follows: 

Product Line and width: There is only single product line in Perfume World. They

offer only perfume to their customers. So their product line and width are same as  product width refers to the total numbers of product line. 

Product Mix Length: Product mix length pertains to the number of total products or

items in a company's product mix. The product mix length of the Perfume World is as follows: Brand name

Origin of Brand

Production of Brand

Gucci

Italy

France,

Italy,

UK,

and

Italy,

UK,

and

Germany Dolce & Gabbana

Italy

France, Germany

Escada

France

France, and Germany

Hugo Boss

Germany

France, Germany, and UK

Burberry

United Kingdom

France, and UK

Versace

Italy

Italy, and Franace

Lacoste

France

France, Germany, and UK

Azzaro

France

France

Moshchino

Italy

Italy, and France

Jimmy Choo

United Kingdom

UK, and France

Mont Blanch

France

France, and UK

Thierry Muglar

France

France

Table 01: Product Mix Length of Perfume World 

Product mix depth: Depth of a product mix pertains to the total number of variations

for each product. Variations can include size, flavor and any other distinguishing characteristic. The product mix depth of Perfume World is as follows:

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Gucci

Dolce

&

Hugo Boss

Burberry

Lacoste

Dolce&Gabbana

Hugo

My Burberry

Eau

Light Blue Male

Bottled

Azzaro

Gabbana Gucci

by

Gucci EDP

Boss

de

Chrome EDT

Lacoste Pour Femme

Gucci

by

Gucci EDT

Dolce&Gabbana

Hugo

Light

Bottled Night

Blue

Boss

Brit Man

Eau

de

Lacoste

Female

Chrome United

Sensuelle

Gucci

by

Dolce&Gabbana

Hugo

Boss

Brit

Gucci

Pour

Light Blue Male

Bottled Sport

EDT

Boss Mavie

Brit

Women

Eau

de

Chrome

Lacoste Noir

Sport

Eau

de

Chrome

Lacoste Blanc

Legend

Eau

de

Pour Homme

de

Pour Homme

Limited Edition

Homme Gucci

by

Gucci

PH

Dolce&Gabbana Light

Blue

Women

EDP

Female Limited

Sport

Edition Gucci Guilty

Dolce&Gabbana

Male

Pour Homme

Boss Nuit

Brit

Sheer

EDP

Lacoste Rouge

Gucci Guilty

Dolce&Gabbana

Female

Pour Femme

Gucci Guilty

Dolce&Gabbana

Boss

Limited

Pour

Intense

Man Intense

Lacoste Blue

L'eau

Editon Male

Intense

Gucci Guilty

Dolce&Gabbana

Boss

Brit

Eau

Pour Homme

Limited

Dolce EDP

Lumineance

Women

Femme

Boss Jour

Brit

Rhythm Eau

Man Nuit

Brit

Rhythm

Rhythm

Lacoste Vert

Elixir

Eau

Pour Homme

Lacoste

de

de

Big  Night Time

Bang

Editon Female Gucci Envy

Dolce&Gabbana

Boss

Brit

Dolce EDT

 Nuit,Jour,Mavie Women Runway

Rhythm

Essential

Duo Man

Essential

Duo Women

Floral EDT

Collection Gucci

Dolce&Gabbana

Boss

Gardenia

The One Man

Man

Dolce&Gabbana

Boss

Orange

Brit Splash

Sport

Collection Gucci

Flora

Orange

London Man

Touch

of

Club Man

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Garden

The One Man

Collection

Limited Edition

Gucci

Dolce&Gabbana

Boss Orange in

London

Premire

The

Motion

Women

EDT

Gentleman

Gucci

Dolce&Gabbana

Boss

Premire EDP

The One Sport

EDP

Gucci Made

Dolce&Gabbana

Hugo Green

to Measure

Intenso

Gucci

Dolce&Gabbana

Bamboo

Rose The One

One

Women

Pink

Femme

Joy of Pink

Club Women

Touch Man

Love of Pink

Decibel EDT

Touch

Challenge

Women Hugo Red

Just

Weekend

Challenge

Man

Refresh

Weekend

Pour Femme

Dolce&Gabbana

Hugo

L'eau The One

Different

Women

Dolce&Gabbana

Hugo Element

Pour Homme

Elegence

Hugo Women

Pour Femme

Lacoste Live

The One EDP

Male Hugo XX

The Beat Man

Hugo XY

The

Beat

EDP Hugo

Boss

The

Beat

Selection

EDT

Hugo Boss Soul

Body EDP

Hugo Deep Red

Body EDT

EDP Body

EDP

Intense Body Tender

Table 02: Product Mix Depth of Perfume World

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Escada

Especially

Versace

Moschino

Pour Homme

Forever Man

Eros

Escada EDT Especially

Jimmy

Mont

Thierry

Blanch

Muglar

Choo

Star Walker

Alien Edp

Choo

Legend Man

Alien EDT

Choo

Legend

Man

Angel EDP

Pour

Angel EDT

Man

Angel Man -

EDP

Escada EDP Especially

Jimmy Choo

Eau Frachie

Forever

Jimmy

Sailing Man

EDT

Pink Bouquet

Jimmy

Escada Elixir Escada

Eros

Absolutely

Femme

Pour

Glamour

Man

Intense

Blossom

Legend Femme

Me Escada

Bright Crystal

Desire Me

Trosours

Flash Femme

Legend

Glamour

EDP

Special

A Man

Edition Escada

Bright Crystal

Incredible

Absolu

Chip & Chick

Exotic EDP

Individuel

Innocent

Man

Me Escada Joyful

Yellow

Chic Petals

Diamond Escada

Yellow

Tarquis

Diamond

Summer

Intense Crystal

I love Love

Womanity

Individuel

EDT

Presence Man

Womanity EDP

Noir

Happy Fizz

EDP Crystal

Femme

Noir

Light Clouds

Presence Dune

Alien

Femme

Extraordinary

Emblem

Alien

EDT Versus

Necter

Divine Funny

Emblem Intense

Versance

Femme

de

Mont Blanc Versace

Homme

Women

Exceptional

Table 03: Product Mix Depth of Perfume World (Banglaperfumes.com.bd, 2015)

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Price Price includes the monetary value which is given up by customers to purchase a product. Price of different brands varies depending on the size, quality, and brand itself. The minimum  price in the Perfume World starts from 1800 tk. The maximum price for different brands is up to 25000 tk.

Place It refers to the availability of the product for the end customers. As the Perfume world is a kind of retail organization, it has selected three different regions for making its product available to the end users. The regions are Dhaka, Chittagong, and Sylhet. They are offering various renowned brands to the end user through maintaining ten show rooms in Dhaka, Chittagong, and Sylhet. They are controlling 6 outlets in Dhaka, 2 in Chittagong, and 1 in Sylhet. The list is as followed: Outlets in Dhaka Banani

Chandiwala Mansion, House # 32, 1st floor, Block G, Road # 11, Banani, Dhaka 1213. Bashundhara City Outlet

Shop No. 1 & 2, Block A, Level 6, Bashundhara City Shopping Complex, Panthopath, Dhaka. Dhanmondi Outlet

Shop # 216-217, Plaza AR (1st Floor), Road # 14 (New), Dhanmondi, Dhaka 1209. Uttara Outlet

Shop # 29, Polwel Carnation, Level 1, Plot # 9/B, Sector 8, Uttara, Dhaka 1230. Gulshan Outlet

Shop # 6 (1st Floor), Navana Tower Shopping Complex, 45 Gulshan Avenue, Gulshan 1, Dhaka-1212. Uttara Outlet

Shop # 29, Polwel Carnation, Level 1, Plot # 9/B, Sector 8, Uttara, Dhaka

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Outlets in Chittagong Afmi Plaza

Shop # 247 (2nd Floor), Afmi Plaza, Baizid Bostami Road, Panchlaish,Chittagong. Nasirabad

Shop # 202 (2nd floor) ,Younusko City Center, Nasirabad, Chittagong. Sylhet Outlet

Shop # 172-173 (1st floor), Al-Hamra Shopping City, Zinda Bazar , Sylhet.

(Banglaperfumes.com.bd, 2015) Promotions In fact, Perfume World doesn’t go for massive promotional activities. We never see any add of Perfume World. But they are focusing on digital marketing like email marketing, sicial media marketing etc. highly. They also sometimes make tvc which is advertised in different shopping mall like Bashundhara city, Afmi Plaza etc. They basically focus on magazine ad highly. Among the different magazines, Ice Today is little expensive than other magazines. During various occasions like Eid, Puja, and Pohela Boishak Perfume World takes print media promotion to increase the traffic in their stores. They provide ad in the newspaper like Prothom Alo, and Daily Star etc. They also provide customer promotions like customers who  possess the debit Card of City Bank and Standard Chartered Bank receive discounts during the promotional offers.

Process Bangla Perfume is based on distribution. They are not involved in manufacturing any kind of  privet label brand. They are licensed with many renowned organizations which are established in different countries like United Kingdom, France, Germany, and Spain etc. They simply import various brands like Avon, Lacoste, and Versace etc. from the renowned companies. Then they make product available to the end user through distributing the brands to Perfume World. They make every import after the regular intervals of 3 or 4 months. One  brand named Hypnoses is continuously innovating their product shape, size, color, and fragrance within 3 or 4 months.

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People As Bangla Perfume is a small retail organization, the size of the employee working at Perfume World is low. Now there are almost 55 employees working in Perfume World from top management to front line employees.

Physical Evidence As Perfume world is involved with retailing the l uxury perfumes to the end user, it focuses on  building sophisticated outlook of the outlets. Their each and every out is highly decorated. The lighting and the brand display are highly sophisticated.

Gender role Basically Perfume World does not offer any separate brand for any particular gender. They  provide brands for each gender. The brands which are being provided by the Perfume World contain two categories. One category of a particular brand is offered to male. And another category of the same brand s offered to female.

Perception Formulation Perfume World has created positive brand image as a retail organization through different kinds of exposure to the target market. They basically use three kinds of medium for exposing themselves to their target audience. They are as follows:

Tvc at shopping mall Print media Digital Marketing Figure: 01 Promotional medium of Perfume World

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Print Media:  Perfume World spends a lot of money for advertising their retail

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 brands on print media. They generally use various kinds of magazine like Ice today for exposing themselves to their target market. The cost of print media advertising varies depending on the magazine and newspaper. In the case magazine ad Perfume World has to pay 35000-50000 for a single page ad. They also use newspaper like Prothom Alo, and Daily Star etc. for exposing the retail brand Perfume World occasionally like Eid, Puja, and Pohela Boishak etc.

Tvc at shopping mall:  In addition to using the print media, they also use various



kinds of tvc ads which are displa yed in various shopping malls like Bashundhara City, and Jamuna Future Park etc. The cost of displaying ads in different shopping malls varies depending on the time limit, schedule etc. On an average, they have to pay 40000 for displaying an ad for 15 minutes in Bashundhara City. The charge varies depending on the mall, time schedule, and duration etc.

Digital Marketing: Perfume World is not currently using any kind of heavy



 promotional tools for improving their brand awareness. They are moving with selectively exposing to their target audience. Recently they are heavily focused on digital marketing like e- mail marketing, social media marketing, etc. They are going to establish a responsive website which is currently under construction. They also have a face book page for attracting their target customers. They are very much responsive through digital marketing.

Stimulus Factor Fragrance: Perfume is not involved with manufacturing any kind of perfume. So they can not directly control the fragrance factor of any brand directly. In a single brand, the manufacturer of the perfume may use single fragrance or combination of multiple fragrances like rose, peony, tulip, and jasmine. The most important factor about each brand is that maximum brands of the Perfume World are manufactured on the basis different fragrance factors.

Color: As the control of the stimulus factor is not in the hand of Perfume World, the brands which are sold by Perfume World are provided with different colors by the manufacturers. Color is another stimulus factor which acts as to attract new customers.

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Packaging: Packaging is also directly made by the companies from which Bangla Perfume imports. As a result of gorgeous packaging, Perfume World has been able to attract a large number in their stores.

Size: Perfume World provides various types of sizes ranging from 30 ml to 100 ml for each  brand. They also sometimes provide some exceptional brand whose size may vary from 125 ml to 200 ml.

Attitude Change Strategy of Perfume World An attitude in marketing terms is defined as a general evaluation of a product or service formed over time (Wright, 2006). An attitude satisfies a personal motive — and at the same time, affects the shopping and buying habits of consumers. Perfume started its journey in the  perfume industry of Bangladesh in 2008. At that time, the response of the end users was not so positive. As perfume is a kind of luxury products, the price of the various brands was not so low. There was also case of alcohol in perfume. Most of the target customers had the following original belief about perfume.

Original Belief 

Fear of being cheated:   People thought that the brands that were provided by the

Perfume World might not be genuine brands. So the und users of the perfumes were in dilemma whether they are being cheated or not. 

Alcohol case:  Another barrier Perfume World had to overcome is changing the

 perception of end users about alcohol. As Bangladesh is Muslim country, maximum customers are sensitive about alcohol here. For this reason, the target consumer thought that there is alcohol in every brand of the perfume. It was a kind heavy difficulty which Perfume World has overcome in the last few years.

Changing Belief 

For this reason, Perfume World provides some brands which are completely water  based without alcohol. They also provide brands which are mixed with alcohol in a very limited extent which amounts to 5-10 %.

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Passing several years after 2008, Perfume World has been successfully able to change the wrong perception about Perfume World through building positive and consistent  brand image. They also became successful in reducing the consumer’s fear of being cheated through providing quality brands to their target customers. 18

Market Segmentation Market segmentation is the science of dividing an overall market into customer subsets or segments, where customers in each segment sharing similar characteristics and needs. It is  practiced especially in major companies with highly differentiated product lines or serving large markets. The small business tends to discover the segment it serves best by the trial and error of dealing with customers and stocking products more and more suitable to its particular clientele (Mullin, 2006). For this reason Perfume World is highly focused on selective segmentation. Perfume World segmented their whole market on the basis of various variables. They segmented the market on the basis of region, demographic, behavioral, and  psychographic etc.

Regional • Dhaka • Chittagong • Sylhet

Demographic • Gender • Age • Income • Occupation • Social Class • Education

Psychographic • Lifestyle • Interest and attitudes

Figure: 02 Market segmentation variable of Perfume World

Regional Based on the regional segmentation variables, Perfume World has segmented their target market into three regions of Bangladesh. The regions where Perfume World conducts their  business activity are Dhaka, Chittagong, and Sylhet etc. They are focusing highly on urban  people. 

Rural vs. Urban:  Perfume World has outlets in three regions. Among the three

regions, Perfume World is focusing on urban customers intensively. Their maximum sales are coming from urban people.

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Demographic Based on the demographic segmentations, Perfume World has categorized its target market into various groups. The categorization criteria Perfume World uses are age, income, occupation, education, and social class. 

Gender:  Perfume World targets both categories of genders. They are targeting male

and female section respectively. Each brand in the Perfume World provides different versions for male and female. 

Age:  The manufacturing companies select the appropriate age class for each brand.

Here Perfume World provides different brands targeting customers of age ranging from 20-60. Maximum customers of Perfume World fall in the category of 30-45. 

Income: A household’s income level with its accumulated wealth determines it’s

 purchasing power. Purchasing power of people in Bangladesh is consistently increasing day by day. Income of customer coming to the Perfume World is start from approximately 50,000 taka to more a month. Students from a good family income background are mostly coming to the Perfume World. 

Occupation: Perfume World has divided its target customer’s into different

occupational groups. The maximum customers of the Perfume World consist of doctors, engineers, teachers, celebrity, business people, and top official people etc. 

Social Class:  As middle class in Bangladesh are highly diversified, they have

formulated strategy for targeting medium middle class, higher middle class, and higher class of the society. But their maximum customers fall in the middle class category. Higher class society is also responding with different innovative brands that are offered by Perfume World. 

Education:  People who are highly educated have been being targeted by Perfume

World since 2008. Some of their customers are businessman, high profile job holders, doctors, engineers, and lawyers. All these segments have got professional degree. So it can be said that their target profile is highly educated.

Psychographic Psychographic includes the categories of values, attitudes and interest, lifestyles. People who are interested in leading a luxury life are being targeted by Perfume World continuously.

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People who are engaged with various community, clubs, high social groups, and top clas s job are also a portion of the whole target market of the Perfume World.

Estimation of current total potential customers of Perfume World Demographics influence consumption behaviors both directly and by affecting other attributes of individuals’ such as personal value and decision style. Perfume Worlds segment their markets on the basis of demographics are giv en in the following:

Population Bangladesh has the population of around 16 cores. Most high class people live in Dhaka, Chittagong and Sylhet. The market for perfume in Bangladesh changed rapidly during 2000. It has created a new opportunity for Perfume World. As Perfume World has their extension in  both Sylhet and Chittagong, according to their brand Mr. Tanvir Alam it has approximately more than 1 billion customer all over the Bangladesh. Retail store distribution

Dhaka

Population distribution 5,00.000

Chittagong Sylhet Total

3,00,000 2,00,000 10,00,000

Table 04: Population distribution of Perfume Wor

Population Dsitribution of Perfume World Sylhet 20% Dhaka 50% Chittagong 30%

Figure 03: Population distribution of Perfume World

Learning about Perfume World by end user Learning is any change in the content or in the organization in long term memory or  behavior. Thus, any knowledge or behavior that we now possess that we were not born with, 21

was somehow "learned" (Hawkings, Mothersbaugh and Mookerjee, 2010). Learning is about Perfume World is high involvement as it is offering high class and luxury products to its target customers. As perfume is a luxury product, consumers buy different brands after regular interval. The involvement of buying a brand from Perfume World depends on the  price, or the brand itself. If a particular brand is highly expensive, then consumer will take more time and will be highly involved for buying that particular brand.

Operant Conditioning Operant conditioning (sometimes referred to as instrumental conditioning) is a method of learning that occurs through rewards and punishments for behavior. Through operant conditioning, an association is made between a behavior and a consequence for that behavior (James and James, 1892).This learning basically focuses on positive reinforcement. So, in the case of Perfume World, they are claiming on their advertisement that they are the number one retail organization in Bangladesh which provides various famous perfume brands to their customers. They also claim in their advertisement that they are continuously bringing new  brands in the market with new fragrance, size etc. So, this kind of learning is stored in implicit memory of consumer. For this reason, before buying any perfume the consumer decision making can influenced by this kind of positive reinforcement.

Purchase Motive  Manifest Motive:  Manifest motive refers to those things that can be easily observed

or identified by the society. Consumer may use a brand from Perfume World because of the quality, color, fragrance, and comfort ability in social standings. Customers who are purchasing perfume from Perfume World may say that the brands offered by  perfume World are very much qualitative, attractive, and having good fragrance etc. 

Latent motive: Latent is a type of factor that consumers don’t want to say it or it can

 be unknown to the customers themselves. Using a brand of Perfume World may have a latent motive like consumers like to be presented in the society sophisticated, trendy, or stylish etc.

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Maslow’s Hierarchy of Need

Figure 04: Need fulfillment stage by perfume

The different kinds of brands offered by the Perfume World basically fulfill two types of need mentioned in the above figure of the Maslow’s hierarchy of need. 

Social need:  We know that social need refers to the need for belongingness to any

 particular society, class, and group etc. In this stage of need, people want to be accepted in particular groups. Perfume of famous brand can fulfill the need of this stage. 

Esteem need:  Esteem refers to the need of achieving mastery, recognition, and

respect from others. It also refers to the need of being unique individual of people. After analyzing, we can say that Perfume World help their target customers fulfill their esteem need.

Influence and Reference Group Perfume is not such product that if someone feels the need of buying a perfume, he or she will go out and buy one without checking the brand or stuffs. This is a product which is evaluated by people  before buying one and are influenced by different groups (friends, family and others) while making the decision. There are 3 types of influence and reference group; informational, normative and identification. As Perfume World has the most artistic collection of renowned brands from in Bangladesh. We frequently come to hear the name of the product and about its quality from our surroundings. So, before going to buy a perfume from Perfume World is surely an Informational Influence.

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Word-of-mouth In case of Perfume World, the word-of-mouth is very effective. Consumers share their experience and information about Perfume World with other in verbal form. Word-of-mouth is happening in many forms including face-to-face, over phone and internet. Word-of-mouth via personal sources such as family and friends has a great influence on perfume world’s customers gathering.

Self-oriented value Traditionally Bangladeshis have not been used fragrance much in daily life. But the scenario is quite different now. Bangladeshis are placing emphasis on using fragrance.

Religious/secular: Bangladesh is basically a religious society. 80% of population is Muslims. Women are forbidden to use any fragrance for the sake of their religion. So it is quite difficult to attract them. Most customers of Perfume are male but the number of female customer is increasing. As the targeted customer of perfume world is of upper class or upper-middle class, they have no big problem regarding this.

Postponed/immediate gratification: In case of perfume, consumer is interested to get immediate gratification. Customers are unwilling to delay pleasure of getting of the comfortableness the fragrance.

Environment-oriented value Environment-oriented values prescribed a society’s relationship with its economic, technical and physical environment.

Traditional/change: Bangladeshis are always very reluctant about change. It is very difficult to replace the traditional one with new one. Encouraging people to switch to a new brand or new store is challenging task for the Perfume World. But Perfume World has got a very effective wordof-mouth spread. Consumers are coming to Perfume World to get the authentic products.

Risk taking/security: Bangladeshis are becoming risk-taking oriented in case of trailing or using new version of  brand. There was an increased emphasis on security but this attitude is changing. Consumers 24

are willing to take the risk of using new products. New generation are appreciating the change or innovation. As the majority customers of Perfume World are from 25 to 45, new  products get the highest revenue stream.

Performance/status: Generally customers use perfume for getting more acceptance from their friends, co-workers etc. And customers give more importance on the performance of the products. But in case of  perfume of Perfume World, people come here mostly for the status (performance is also a major concern) as Perfume World keeps the most enriched perfume br and of the world.

Other-oriented value Other oriented value reflects a society’s view of appropriate relationship between individuals and groups within that society.

Individual/collective: People of Bangladesh are collective in nature. The use of perfume from perfume world has a very great influence of group. Customers always come with peers, groups or friends. When someone sees that their friends or other group are going to Perfume World to purchase perfume, they also prefer to shop in Perfume World.

Youth/age: Traditionally, older people are not as interested in using perfume as the young people. The value on young generation is continuing. So the focus of perfume world is to encourage youth to come to their retail store.

Masculine/feminine: There is no individual focus on male or female customers. Perfume world has both male and female version in almost every brand. There are a few exceptions in some brands which are either femaleoriented or male-oriented.

Diffusion of innovation Diffusion is the “process by which an innovation is communicated through certain channels over a period of time among the members of a social system”. An innovation is “an idea,  practice, or object that is perceived to be new by an individual or other unit of adoption” (Samli, 1995). An innovation is an idea, practice or product perceived to be new by the relevant individual or group. Perfume World receives a modified product after every 2 or 3

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months. This innovation might be a little change or huge change. New generation are appreciating the change or innovation. As the majority customers of Perfume World are from 25 to 45, new products get the highest revenue stream. In this case Perfume World has a continuous innovation process. Late Majority 10%

Early Majority 15%

Leggards 5%

Innovators 50% Early adopters 20%

Figure 05: Diffusion process of innovation taken by Perfume World

Innovators:  The first 50 percent of the potential customers of Perfume World fall in the category of the innovators. Because, they are referred as risk takers. They have wide connection with mass media, high professionals etc. These people are well educated as well.

Early adopters: The next 20 percent can be described as early adopters. These people can  be described as the opinion leaders of the society. They are also risk takers like innovators  but these people are much more calculative than innovators.

Early majority: The next 15 percent of the potential customers of Perfume World fall in the category of early majority. But these people are less educated and have less mass media connection than early adopters. These people are less educated, and less connected with mass media than early adopters.

Late majority: 10 percent of the customers of Perfume World fall in the category of late majority. They generally adopt an innovation after facing social pressure or because of the unavailability of the previous product.

Laggards:  The final 5 percent of the potential customers of the Perfume World are more localized than the other customers. They are against any innovation.

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Motivational Conflict Approach-Approach conflict: A motivational conflict is a situation in which a person is driven to make a decision based on conflicting goals. All people are driven by positive and negative reinforcement.

These form the basis of individuals' motivations to act and make decisions.

Marketers can take advantage of these situations by providing solutions to these conflicts. These situations can range from social and status problems to physical needs (Myers, 1998). It is a kind of conflict where consumers are in a situation of dilemma or confusion before choosing a product to buy. In case of Perfume World, customers may get confused because o f strong brand like The Beauty Shop, Artisti and other indirect competitors.

Consumer Decision Process

Perceived  Need for  perfume

Information about Perfume World and other retail organization

Evaluation  between Perfume World and The Beauty Shop, Artisti etc.

Purchase a  brand from Perfume World

Post  purchase reaction about Perfume World (Positive or  Negative)

Figure 06: Consumer decision process for buying a perfume in light of Perfume World 

Problem Recognition:  At first, the consumers have to recognize the problem like whether they need to use perfume or not. When they feel this need they will look for solution. So, this is the step Perfume World gets a chance of being in the customer’s consideration sets.



Information Search:

After recognizing the problem consumers try to find

information of their desired brands. Consumers can have information which can be internal or external. There can also be personal sources or public sources from where consumers can get their desired information. Now, we will describe those sources in  below-

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Internal:   People sometimes seek information from personal sources before buying

any product. Internal sources include family, friends, and reference group etc. People also receive information from their past experience of using the same product. Internal sources work as an intensive influencer before buying a product. External  Consumers can get information about Perfume World from tvc at different

shopping malls, magazines, newspaper, and email marketing etc. 

Evaluation of Alternative:   In this case consumers will evaluate Perfume World with other alternative competing brand based on some characteristics like price, durability, features and many other things. Then, they finally get a conclusion. Affective Choice:   In this stage consumers compare Perfume World with the major

competitors like The Beauty Shop and Artisti based on not only in price but also in quality. If the potential customers find that brands provided by Perfume World are different from others then they will go for it. 

Purchase Decision: After going through the entire process consumers will decide to purchase a renowned brand of perfume from Perfume World.



Post Purchase Behavior:   Consumers will get positive or negative feelings after using a brand from Perfume World. In this case, if it is positive then they will incur repeat buying from Perfume World and if it is negative they might not consider Perfume World for their future purchase.

Recommendation for Perfume World (Based on Marketing Mix) Consideration of Price Sensitivity of People of Bangladesh:

As people of

Bangladesh are very much price conscious, Perfume World should come up with brand which is easily afforded by middle class family. They might introduce new international brand or  private label brand of their own.

Intensive brand awareness program : Perfume World is the leading retail organization in the perfume industry of Bangladesh but it is unknown to a large section of the potential target market. For this reason, they should take heavy brand awareness program to attract more traffic in their stores. They may expose themselves to the target through tv commercial, digital marketing etc.

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Increasing the number of outlet:  At present, Perfume World maintains in total 10 outlets in Dhaka, Chittagong, and Sylhet etc.

However through increasing the number of outlets,

Perfume World can reach large number of potential customers.

Participation in the event sponsorship:  Event sponsorship is a kind of tool where a new company can create a high level of brand awareness by using it. Perfume World can  participate in the national event through sponsoring like high voltage cricket & football tournament.

Conclusion After a thorough analysis of the strategy of Perfume World in terms of consumer behavior, we have been successfully able to understand the consumption pattern of perfume in Bangladesh. We have described the current situation of Perfume World, its competitors, and regulatory condition of Bangladesh. This report has described the marketing mix of the Perfume World in terms of consumer perspective. Besides, this report has described consumer decision process regarding perfume. In addition, we have also been successfully able identify the diffusion process of any innovation taken by Perfume World. We have also tried to identify the market segmentation, and attitude strategy taken by Perfume World to stay active in the market. After thoroughly reading this report, we can easily understand the self-oriented value, environment-oriented value, and oriented of the value of the customers regarding perfume.

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