SWOT Analysis

"Before specific marketing activities can be defined, marketers must understand the current and potential environment that the product or service will be marketed in. A situation analysis is sometimes referred to as a SWOT analysis; that is the firm should identify its internal strengths (S) and Weaknesses (W) and also examine external opportunities (O) and threats (T)." (MKTG, Lamb Hair McDaniel, pg 19, chapt. 2)

In identifying the strengths of our business offering we will have experienced perfumers. Our employees will be reliable and educated in our product offerings and that of what other businesses are offering so that they can intelligently help our customers. They will also be empowered to help our customers where needed, when needed. Our operating costs will be low operating costs. Our products are reliably consistent as is our product support. We are a member of the Natural Perfumers Guild. We offer a green product.

Our keys to success will be studying "consumer behavior which describes how consumers make purchase decisions and how they use and dispose of the purchased goods or services" (MKTG, Lamb Hair McDaniel, pg 63 chapt 5) we can produce our products accordingly. We will conduct annual marketing research which "plays a key role in the marketing system. It provides decision makers with data on the effectiveness of the current marketing mix and also with insights for necessary changes." (MKTG, Lamb Hair McDaniel, pg 114, chapt. 8) We will be in line with the current trend which according to AskMen.com the trend for Men's colognes for 2010 are genuinely unique blends of the masculine aromas of wood and musk balanced with floral and citrus notes.

Our competitive advantage of our business offering are our cost competitive advantages by obtaining and using inexpensive "processed materials which are products used directly in manufacturing other products" (MKGT, Lamb Hair McDaniel, pg 92, chapt 6) (the essential oils), efficient, experienced employees, creating an efficient way to produce our product and run backend operations, designing our products for ease of manufacturing, controlling overhead and business service costs, and avoiding marginal customers. Our product/service differentiation competitive advantage is our product reliability, our offering of reusable, collectable bottles, our green product and green production of the product. Our niche competitive advantage is in targeting the male baby boomer who is a weekend adventurer.

In identifying the weaknesses of our business offering; though we have considerable anecdotal information, the company is lacking in marketing research. Our financial resources are limited. Our company is under development while establishing our product line. We have had to supplement our company with independent consulting services.

Ethics and intergrating social responsibility is very important to our company. Sustainability opens new ways of thinking and doing business, both theoretically and practically, for each individual and for the company. Today's consumer wants to associate themselves with companies who are transparent and have full traceability manufacturing processes. This adds value to the relationship with local communities and local associations.

For companies whose green missions are based on inherent values, not a marketing objective, the commitment to environmental sustainability and reporting is important, and allows consumers to align themselves with socially responsible businesses. Consumers want to be able to trace a company's path of environmental responsibility from soil to bottle.(The Demands of Natural Product Claims on Fragrance By: Sara Mason http://www.gcimagazine.com/marketstrends/segments/natural/52977367.html utm_source=Most+Read&utm_medium=website&utm_campaign=Most+Read Posted: August 11, 2009, from the August 2009 issue of GCI Magazine.)

Some of the ethical problems we may face the issues involved in discerning and weighing the benefits and outcomes between a nature-inspired scent and a truly natural one remains, knowing that the olfactory trend toward nature cannot be mistaken.

There is clear reason for consumers moving toward products labeled as natural, and that is the potential dangers, real or perceived, that they feel can impact well-being. Naturals are often perceived as “safe,” when compared to synthetic ingredients but they do open up a whole new category of concerns and safety issues. “Not all ingredients in nature are safe,” said Ulisses Sabará, president, Beraca. “Therefore, safety procedures and caution are more than necessary in order to analyze a natural ingredient.” Brands must be careful to use essential oils properly, as some can be toxic and others are known to cause sensitization. But created properly and thoughtfully, these offer translatable claims for consumers. As a company that will create natural perfume, our principal role is to create authentic, plant-derived aromas that not only provide consumers with enjoyable experiences, but also foster a sense of well-being.

In examining the external environment we found opportunities in;

Demographics, targeting "the baby boomers who make up the largest demographic segment of today's U.S. population. There are 77 million baby boomers (people born between 1946 and 1964). ..For the next five years, one million boomers will join this group of consumer segment each year." "As a group, people aged 50 to 60 have more than $1 trillion of spending power a year." (MKTG, Lamb Hair McDaniel, pg 36 chapt 3)

Economic: By purchasing organic products, companies and consumers create demand for high-quality products and ingredients that support environmentally responsible local farms and sustain indigenous people around the world.

Social trends: Today's consumers are using information technologies that provide the consumer with tremendous insight into how corporations do business, how the aroma is created and manufactured, and the potential environmental consequences of this process. "After getting information and constructing an evoked set of alternative products, the consumer is ready to make a decision. A consumer will use the information stored in memory and obtained from outside sources to develop a set of criteria. These standards help the consumer evaluate and compare alternatives. One way to begin narrowing the number of choices in the evoked set is to pick a product attribute and then exclude all products in the set that don't have that attribute. (MKTG, Lamb Hair McDaniel, pg 66, chapt5)

In identifying other opportunities of our business offering we found that there is a 5% market growth annually, with 87,427 establishments in the U.S there exists an unlimited market across the United States, with internet access there is the opportunity of going global, there is no brand loyalty among consumers which gives us a break into the market, the "Recession is an excellent time to build market share because competitors are struggling to make ends meet." (MKGT, Lamb Hair McDaniel, pg 290, chapt. 18)

In identify threats to our business offering: There exists a lot competitive competition in the fragrance industry, offerings can be duplicated by knowledgeable experts, and there are larger companies with unlimited budgets. At this time perfumes are a 25 billion dollar industry, yet are one of the poorest performing sectors of the cosmetics industry. The fragrance market is stagnating and is cluttered with new scent products which mean there is no longer any brand loyalty. As many as 300 new brands appear every year. Consumers jump with speed to the latest new "designer perfume" product. This means fragrances often only have a shelf life of 3 years. (http://www.nytimes.com/2009/06/20/business/20perfume.html?pagewanted=all By CHANDLER BURR Published: June 19, 2009 ) Recession is also a threat because "Recession is a period of reduced economic activity. Reduced demands for goods and services, along with higher rates of unemployment, is a common trait of a recession." (MKTG, Lamb Hair McDaniel, pg 290, chapt. 18)