Xavier Institute of Management,

Bhubaneswar

IMC Project on new Product Category

By: Group 2

UM20015: Bandhan Pramanik

UM20169: Shobhit Kishore
UM20177: Shrijata Thakur
UM20204: Indrani C
UM20233: Siddharth Palai
 IMC End- Term Project
Indian Fragrance Industry
India contributes about $500 million to the global fragrance and flavour sector, which is worth $24.10
billion. However, India's growth rate has been around 11% in recent years, but it is expected to
skyrocket in the coming years due to rising personal care, brand awareness, increasing disposable
income, growing demand among the middle class, and affordable fragrance in the form of mass
perfumes and deodorants.

With the introduction of technology and increased usage, India's traditional fragrance industry has
seen significant changes in recent years. The Indian fragrance sector is one of the largest in terms of
production and consumption, and the market is expected to continue to grow, providing numerous
chances for new entrants.

Potential for India:

Around 300 significant natural fragrant raw ingredients are used around the world. Only 50% of them
are cultivated, with the remainder living in the wild (e.g. Nagrarmotha, Kewra etc). Out of the
cultivated raw materials, 110 cultivated natural fragrant raw materials account for 95% of current
worldwide fragrance and flavour consumption. There are 31 for which India is well-known around the
world, and approximately 21 for which India has grown but not to the point of global relevance.
India's essential oils of menthol mint, sandalwood, jasmine, tuberose, and spices have had a global
impact.
 Situation Analysis
Aromatherapy is a complementary medicine that aids in the recovery of a variety of ailments,
including pain, cardiovascular disease, respiratory disease, skin problems, cold and cough, digestion
issues, immune system malfunction, sleeplessness, anxiety, and wounds. Acne scars are more
common in women, and persons with acne-related issues frequently use therapeutic-grade essential
oils.

Aromatherapy is primarily marketed to women, although it is increasingly gaining popularity among

millennials. The altering trends in healing methods are due to this group of people. People are
increasingly choosing natural remedies over pharmaceuticals. Key corporations are launching new
initiatives and developing new goods as a result of changing trends in healing therapies.

The relaxation category dominated the aromatherapy market in 2020, accounting for 23.2 percent of
sales, owing to an increase in the number of persons suffering from anxiety. Aromatherapy oils have
the ability to soothe people, thereby balancing their hyperactive mental states. People are also
concerned about stress management. People are turning to these solutions to relieve stress because of
their preference for natural treatments.

Scents are very closely linked to memories and emotions, so scent playlists can cause reactions very
different than music playlists, and will likely stir up different feelings for different people.

Product Name: De Sine(Romanian for self )

Product Definition
A new entrant in the home fragrance industry, our Product De Sine is a Scent Speaker. Fitted with
several capsules of different scents, the device is a digitally linked fragrance diffuser about the size of
a small peanut butter jar. The speaker can be charged with any electric charger. This can hold six
interchangeable aroma capsules, with 3 combinations of aromas and three stand-alone scents. 

Our standalone scents are 

 Lavender

 Citrus Mint

 Sandalwood 

We also provide three combination scents, which we define as “playlists: 

 White- White is based on a patented technology that reduces the perception of

unpleasant odors (like what white noise does for audio). 

 Relax- Relax includes smells that involve natural chemicals derived from human
pheromones that have been shown to reduce stress and aggression while also
improving sleep quality. 
  Focus- Focus includes smells that involve natural chemicals derived from human
pheromones that have been shown to alertness and attentiveness

Use the free De Sine app to mix four perfumes and create your own unique scents, or choose one of
the pre-set combinations suggested by the De Sine app.

You may use De Sine to make sure the aroma is only produced when someone is there to enjoy it. The
capsules have a shelf life of 300 hours. Because to De Sine’ clever characteristics, the capsules may
be used for a longer period of time.

De Sine integrates with the most cutting-edge smart home technologies, such as Amazon Alexa, Siri
Shortcuts, Google Assistant, and others. When you go home, say "Siri, my favourite scent, please!"
and De Sine will fill the room with the right aroma to put you in the right mood!

Competitive Situation
This market is an untapped market in India. We have identified 2 relevant competitors across the
globe as written below:

 Moodo: Moodo is a one-of-a-kind fragrance diffuser that can contain up to four Moodo scent
capsules at a time, with dozens of unique, high-quality aromas to choose from. Smell is a
unique sensation for each person. Choose your fragrance capsules from Moodo's huge variety
of high-quality fragrances: use the free Moodo app to mix four perfumes and create your own
unique scents, or choose one of the pre-set combinations suggested by the Moodo app.

 Moodify: Moodify helps people enhance their performance, well-being, and safety by using
and creating unique active fragrances. The fragrances created by Moodify have a non-
invasive and non-harmful influence on the olfactory sense. 

Distribution:
Specialty retail stores, multi-retail stores, and internet retail stores are some of the key distribution
channels for the fragrance sector. Among the three distribution channels, the offline sector continues
to be the most popular. This is because most clients want to try on perfumes and aromas before
purchasing them. The offline category has a market share of 92.1 percent, but it is being challenged
by online retail sites, which are rapidly increasing and coming up with attractive offers thanks to their
low overhead costs. Supermarkets, hypermarkets, brand outlets, medicine shops, and other
unorganized retail markets are examples of offline distribution networks.
 Segmentation
The level of Segmentation we are undertaking is Multiple Segmentation, more specifically 
Product Specialization

Given De Sine aims to deliver a quality fragrance experience, segmentation will be first
focussed based on distribution channel, into direct-To-customer and B2B

In the Direct to customer, we will segment based on the following bases:

 Geographical Segmentation: Primarily focused on metro cities of Delhi, Mumbai,

Bangalore and Kolkata along with other Tier-1 cities with high urban density.

 Income and Demographic Segmentation: High income between the ages of 25- 40
years

 Buyer Readiness Stage:  Targeting the cohort with maximum technological literacy
and comfort

 Psychographic Segmentation: We are targeting the following three groups within

the VALS framework:

1. Experiencers –  The group of consumers who have high resources but also need a
mode of self-expression are known as Experiencers. Mostly characterized by young
adults, it consists of people who want to experience being different. This class of
consumers is filled up with early adopters who spend heavily on food, clothing and
other youthful products and services.
2. Innovators –  The class of consumer at the top of the vals framework.  They are
characterized by High income and high resource individuals for whom independence
is very important. They have their own individual taste in things and are motivated in
achieving the finer things in life.
3. Thinkers –  A well-educated professional is an excellent example of Thinkers in the
vals framework. These are the people who have high resources and are motivated by
their knowledge. These are the rational decision making consumers and are well
informed about their surroundings. These consumers are likely to accept any social
change because of their knowledge level.

B2B:  For our institutional partners, we also customize our scent offerings based on
their needs.

 Yoga centres: Yoga requires a fresh and clean environment. The customer group of
Yoga centres are upper middle class to upper class income group, who also happen
to be our primary customer. An aromatic fragrance would give a differentiating factor
to the yoga centres.
 Mental health centres (and their affiliated hospitals): Good fragrance is directly
related to mental health  Olfactory therapies are gaining credence with every growing
day. Given smell is a direct component in affecting mood and emotion, we will also
be targeting mental health centres.

Upscale Restaurants and Fashion Boutiques and Retail Outlets: To provide a unique
complete customer experience, we want to also partner with retail outlets who can channel a
sophisticated olfactory experience to ensure that customers stay and buy more.
 Positioning
The De Sine is a "Digital Scent Speaker and Mood Modification Platform," according to the
company's website. The device is small enough to fit in the palm of your hand and stores three
perfume capsules, each with four smells. The emphasis on diversity distinguishes De Sine from other
aromatherapy gadgets. On the device's accompanying app, users may choose from a variety of smell
"playlists" with names like "Get Relaxed" and "Get Away." Individual fragrances are released for 35
seconds before switching to a new one in the playlist. The gadget takes a 22-second break between
each fragrance to give your nose a rest.

The standalone speaker costs Rs.1499 and positions itself as a product that strives to create the right
ambience for the right mood giving the consumer an ultimate personalised premium experience of
aromatherapy coupled with music. For B2B sales, price is negotiable.