Arabic Perfumes and the Global Fragrance Market

Posted: March 26th, 2020

Arabic Perfumes and the Global Fragrance Market

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Arabic Perfumes and the Global Fragrance Market

Identify and discuss the micro/macro —marketing environment

The microenvironment of the Arabian fragrance market incorporates the foreign competition that has recently penetrated the local scene and the local players such as the acclaimed Ajmal, the customers market and the conservative locals are other factors. The supply chain in the Arabian fragrance industry flows directly from the company to the retailers. Other players that directly pertain to the success of the products in the fragrance industry are the airlines and hospitality industries (ALdrees, 2015). The macro-environment determines consumer movements in the larger global fragrance market. There is a positive economic growth in line with money derived from energy exports. Socio-cultural forces such as religion have promoted fragrance purchases, as they are an essential part of traditional life across along demographics. The political unrest does not significantly reduce the demand for fragrance. The change in demographic that has seen an increase of youth the Middle East has grown the market size for the products. The technological advancements have facilitated the growth of metropolitans, accompaniment facilities such as airports to bring in tourism to the Middle East. The increase n globalization has led to the entry of European scents into the Arabian market. Similarly, the internet has exposed the locals to international standards of quality and availed an avenue to reach the technologically adept youth.

How did the international fragrance company (like Elizabeth Arden, Coty, Estee Lauder, Christian Dior, L’Oreal, or Revlon) attempt to position itself as “the world’s local fragrances”; that is, as .a global fragrance company, but a company that also understands the local cultures and needs? What benefit do you think it draws from such a positioning?

The decrease of traditional oriental scents such as oud oil fragrances availed an opportunity for the L’Oreal to present a localized alternative. By positioning itself as a local scent, the consumers would not feel like they are sacrificing their culture at the altar of western influence. The locals that are brand sensitive could thus maintain their tradition while leveraging the excellent quality of L’Oreal’s’ products (Reinarz, 2014). A further step towards incorporating itself to the domestic market, the company utilizes local labor from the top down to ensure transactions align with their socio-cultural beliefs. The positioning reduces any backlash they may have received if the locals perceived it as an alien entity aimed to disorient their values. While scents sponsored by Western celebrities have little sales, L’Oreal has utilized prominent people in the Middle East to endorse their various perfumes. The locals’ acceptance of the brands as their own enables the brand to influence the consumers’ preferences from as an insider. From within they can educate the market of new possibilities, and they will adopt the new trajectory with minimal resistance. For instance, the can provide solutions for the present population needs. With the increasing scarcity of the esteemed ouds, musks, and ambers given the death of the indigenous trees like the Agarwood, L’Oreal offers synthetic alternatives to ensure they enjoy the heritage left by their ancestors. They are niche perfumes centered on the local ingredients and scents in Arabian-styled bottles. Furthermore, they can adapt they sales strategy to align with the locals consumer habits. For instance, the price for the refill is usually half the one charged for the initial purchase. The positioning assisted them to compete effectively with preexisting brands such as those produced by the Ajmal fragrance company.

Why would an international fragrance company choose the Middle East market?

L’Oreal interest in the Middle Eastern market was given impetus by the fatwa issued under the Islam law that legalized the use of alcohol-based fragrance that had until then been restricted. It was determined the levels of alcohol in the perfumes were insufficient to taint the cleanliness of a worshiper undermining their capacity to approach Allah (Smith, 2015). The above translated to the residents of the Middle East to expand their consumption of fragrances. This change in attitudes provided an opportunity for the predominantly alcohol based L’Oreal to enter the Middle Eastern market. Nonetheless, the conservative Muslims that were encouraged to persist in the use of oil based scents. As illustrated in the above issue fragrances are deeply rooted in the Islam. Multiple scriptural references link prophet Mohamed to the use of perfume. Following the prophet’s example, the locals have perceived scents as an essential aspect of grooming. The locals of both sexes do not hesitate to pay a premium for their fundamental aspect of grooming. In fact, they adorn themselves with several layers of fragrances and believe that a perfume is ineffective is it does not level a trail. Traces of a person’s presence should be felt minutes after he or she has left the venue. The preexisting tradition of perfume consumption presented a ready market for the international fragrance organization. The population of youth in the Middle East is increasing even in the background of turmoil who grow up known that perfumes are part of their personal and cultural identity. Another factor that made the region attractive was the high level of expendable income of the populace emanating from their energy exports. Even consumers from the lower classes do not compromise on the quality of their scents.

Identify the growing market segments that fragrance industry tries to target?

The hospitality industry in the Middle East is growing at an astonishing rate with the proliferation of skyscrapers that have not left their architectural aesthetics to chance in the United Arab Emirates. Here the Arabian luxury converges with Western glamor attracting new tourists and executives to the country in their hordes. These tourists are from all regions f the world thus open to scents other than the traditional oriental fragrances (Reinarz, 2014). Similarly, their exposure demands the relevant brands to maintain the highest standard of professionalism from quality to packaging an aspect that has given the more experienced foreign companies the edge. Saudi Arabia has its annual tourists that come for the Mecca pilgrimage. The pilgrim’s enthusiasm increases their consumerism, as they perceive any commodity purchased in the holy land as a souvenir. The growing segment of tourists avails a unique opportunity for the fragrance industry leaders to launch their products. The various airports that have been built as a support infrastructure for tourism feature duty-free retail shops specializing in fragrances. This growth in the retail industry has provided a supply solution to the absence of wholesale distributors in the region. The elegant and spicy scents that pervade the corridors of the airport have become to be a part of the Arabian experience. The leisure hotels have illustrated gravitation towards luxury goods promoting the fragrance culture. The industry leaders like L’Oreal are collaborating with airlines and hotels to launch their products within the vicinity of the tourists. The other growing segment as aforementioned is their youth. The young people are more accommodative of modern trends and willing to take risks with new products. The digital generation is exposed to diverse cultures courtesy of the internet. They are prepared to depart from the traditional oriental scents.

Explain the basic categories of target marketing strategies in this case,

L’Oreal and the rest of the international industry players utilize all the four types of target market strategy. They pricing strategy takes advantage of the religious value attached to fragrances to put a premium price. The local consumers, as well as the tourists, lack price sensitivity, increasing the companies’ profit margins (ALdrees, 2015). The companies utilize place strategies to ensure availability of them products. Towards reaching the emerging demographics, the companies have a vibrant online presence using social media for marketing as well as provisions for online orders. Similarly, the fragrance companies ensure that they products are present in all the retail shops present in strategic locations like airports. Their promotion strategies entail recruiting local labor that is conversant with the transaction etiquette unique to the region. Similarly, they strive to educate the locals of hybrid products towards gradually introducing their prominent products. The introduction of fragrances associated with Middle Eastern prominent figures has been equally successful. The product strategy has caused the companies to utilize Asian ingredients such as both synthetic and natural oud to appeal to the conservative market. Another promotion strategy is giving discounts to customers on subsequent purchases. They have launch niche products that are centered on local trends and themes such as the Arabian night’s brand. They players acknowledge the locales preference for stronger scents relative to their western contemporaries and ensure they deliver towards the same. Recognizing the tendency of the populace to wear multiple layers of fragrance, L’Oreal has divided their products to supplementary scents that are meant to worn with a major fragrance.

References

ALdrees, G. A. (2015). The role of cosmopolitanism on perceptions of authenticity of perfumes and consumer behavior: an investigation in Saudi Arabia (Doctoral dissertation, Victoria University).

Reinarz, J. (2014). Past scents: historical perspectives on smell. Illinois, Chicago: University of Illinois Press.

Smith, B. (2015). Market Orientalism: Cultural Economy and the Arab Gulf States. Syracuse, New York: Syracuse University Press.