De La Salle-College of Saint Benilde

School of Design and Arts

Bachelor of Multimedia Arts

A Marketing Plan on
HAYDEN FRAGRANCES

Submitted to:
Prof. Mito Tubilleja

Submitted by:
Crizelle Ann S. De Guzman

Submitted on:
June , 2021
 CHAPTER 1 - Executive Summary

A bottle of fragrance holds an aroma wherein beauty is appreciated without sight.

From the study of Joe Schwarcz PhD, it is said that it dated back as early as the 14th
century wherein knowledge about the usage of scents brought beauty to ancient Egypt,
Mesopotamia, and Cyprus. According to the statistics conducted by the Grand View
Research in 2018 "Perfumes have emerged as an essential product driven by the
growing trend of personal care…” Findings from the research also suggest an increased
number of consumers appreciated perfumes. Today, the fragrance industry is projected
to grow in connection with a large number of the population staying indoors due to the
effect of the pandemic. Online shopping leads the industry to grow with the purchasing
power and desire of the consumers to buy the products. In addition, the grooming habits
of the people have increased as a result of personal hygiene and care.

Hayden Fragrances is founded and run by Dr. Hayden Kho, Jr. MD who
specializes and trains in the field of multi-sensory aesthetic development. The line of
fragrances is an innovation by Inovacao Davida which is a Philippine-based company
dedicated to enrich the lifestyle of its clients through the art and science of fragrances.
In 2010, Dr. Kho trained with perfume specialists in Paris and launched the line of
fragrances. With the expertise and knowledge of the owner, paves way to ensure the
production of good quality products.

Due to unfortunate events associated with the owner in his disreputable videos
with female personalities in the country, the brand name is likely to be affected. The
main objective of the marketing plan is to garner a larger audience, increase sales and
ensure the marketability of the company.

In October 2011, Hayden Kho became the endorser of Maldita Man. The
association paved the way for the partnership of Hayden Fragrances with the Maldita
clothing line. The availability of the products in 29 Maldita branches throughout the
Philippines is also made possible. In addition, in February 2012, the company
collaborated with Ever Bilena. The company has been one of the leading brands in the
beauty industry since 1983. This aims to provide improvements with the products and
build a reputable brand name.

The marketing strategies of Hayden Fragrances is towards promotion,

collaboration, digital and social media marketing with regards to the situation brought by
the COVID-19 pandemic for the accessibility of the consumers.
 CHAPTER 2 - Definition of Terms

Fragrance Industry
- The branch of industry that is engaged in the manufacture of cosmetic products
particularly in perfume and other aromatic essences.

Consumer
- Refers to an individual or group of people who intend to order or purchase a
good or service primarily for personal, family, social, and other similar purposes.
The use of the purchased goods or services is not directly related to any
entrepreneurial activity.

Customer
- Refers to a person or an organization who buys goods or services from a store or
business. A customer is also a recipient of a product obtained from a seller
through a financial transaction.

Compound Annual Growth Rate (CAGR)

- A term used to describe the growth rate of a business and investment. It also
shows the rate of return of an investment over a certain period of time which is
expressed in annual percentage terms.

Perfume Market
- Refers to business enterprises that are involved in the selling of perfumes and
other similar products.

Start-up Companies
- A term used to describe a company or a business venture that is focused on
bringing a product or service that the founders want to bring to the market. It also
involves the entrepreneur to seek, develop, and validate a business model that
will help introduce the intended product or service to the market.

Market
- Refers to the group buyers and sellers in the area or region under certain
classifications. The value, cost and price of the product or service are traded
based on the driving force of supply and demand in a market.

Third World Country

 - Can also be referred to as a developing nation wherein the country has less
developed industrial base and low Human Development Index compared to other
countries.

Pandemic
- Used to describe an outbreak of a pandemic disease which is prevalent over the
country or to the whole world.

CHAPTER 3 - Industry Analysis

I. Industry Background

According to the forecast conducted by the Mordor Intelligence for the

year 2021 to 2026, the global fragrance and perfume market is projected to grow
at a Compound Annual Growth Rate (CAGR) of 5.5%. The situation brought by
the effect of the COVID-19 pandemic has brought both positive and negative
impacts on the industry. This results in opportunities for start-up companies as
well as existing competitors to emerge in the market. Hayden Fragrances is still
in the initial development phase, but with the opportunity to grow in the perfume
industry, the growth of the brand is still possible. Although with well known
competition coming from other fragrance companies a research conducted by
Mordor Intelligence also suggests that, “COVID-19 has led to a major consumer
shift, as customers are no longer brand loyal in developing countries and are
trying new brands...” In recent years perfumes have evolved and are considered
as an essential part of personal care which is included as one of the everyday
use products.

II. SPELT Analysis

A. Social
The influence of the society can highly affect the buying decision of
each and every individual. The preference of the majority can influence
the minority group into buying those products. According to an article by
Prachi Juneja, “Social factors play an essential role in influencing the
buying decisions of consumers.” The buying tendency of an individual is
based on his or her preference which is also influenced by society.

B. Political
 According to the Act Amending Section 150 of Republic Act 8424,
otherwise known as the National Internal Revenue Code, “The
consumption of beauty hygiene and healthy products is rising in the
Philippines even among the lower-income groups, according to a
consumer research released in 2013, and the fragrance industry has
benefited from the changing lifestyle of Filipinos.” It is said that the
fragrance industry has contributed to the rising of the Philippine economy,
wherein support coming from the government is needed due to the intense
competition from other countries.

C. Economic
The Philippines is considered as a third world country or a
developing nation wherein people are inclined with financial problems
especially with the situation brought by the COVID-19 pandemic. In
addition, according to a report by the International Labour Organization,
“One quarter of total employment in the Philippines is likely to be disrupted
by the impact of COVID-19 on the economy and labour market, either
through decreased earnings and working hours or complete job loss…”
This result in a decrease in the number of employed citizens has brought
a downfall in the household and raised financial burden to the citizens.
Filipinos don’t have the luxury of buying expensive products such as the
fragrances offered by the Hayden Perfume. The lower classes do not have
the capacity to buy the product and a decrease in the number of possible
customers are also taken into effect.

D. Legal
The Philippine government has established regulations for beauty
and cosmetic products following the Bureau of Food and Drugs (BFAD)
guidelines:
● Permissible Claims for Cosmetics
● Specific Standards and Requirements for Cosmetics
● Cosmetics qualified for listing

The above listed regulations should be followed by the business for

legal purposes. Other laws should also be followed such as:
● Executive Order that requires registration of cosmetics prior
to marketing
● Executive Order for listing of cosmetics that do not require
pre-market approval
 E. Technological
The advancements and increase in use of technology has become
a channel for communication of companies to the customers for concerns
and buying methods. With a large number of people staying indoors, the
use of technology has also increased. According to the United Nations
Conference on Trade and Development, a survey showed that COVID-19
has brought people to shift to online shopping thus increasing the sales of
several products. With the social media presence of Hayden Fragrances
in Facebook and Twitter an opportunity to connect with more customers is
possible. Establishing other social media accounts such as Instagram and
a website would be beneficial to the increase in sales of the company.

III. Competitive Analysis

A. Basis for Competition

Aficionado Germany Perfume

Strengths Weaknesses

● Quality imported fragrance oils ●

sourced from Germany, France,
United Kingdom and Spain.
● Available in local and international
markets
● Several shops located in malls and
convenience stores in the
Philippines
● Wide range of available scents
● Customization for special
occasions are also being offered.
● Products are available online
through Lazada and Shopee.

Opportunities Threats

● ● Numerous competitors that sells

 perfumes

Bench Perfumes and Colognes

Strengths Weaknesses

● Celebrity endorsement ● Controversial case against the

● Popularity of the owner owner
● Partnerships and collaborations ● Brand is not thoroughly established
with fashion and cosmetic industry ● Tarnished brand name in
● Social media presence connection with the owner
● Wide collection of perfume scents ● High selling price
● Discounts and promotions were
offered
● Available online transaction with
customer

Opportunities Threats

● Expansion of the brand locally and ● Numerous and strong competitions

internationally ● Various cheaper substitutes
● Partnership with other ● Low appreciation of the brand
establishments
● Use of fans associated with the
owner

Penshoppe Perfumes and Colognes

Strengths Weaknesses
 ● Celebrity endorsement
● Popularity of the owner
● Partnerships and collaborations
with fashion and cosmetic industry
● Social media presence
● Wide collection of perfume scents
● Discounts and promotions were
offered
● Available online transaction with
customer
● Controversial case against the
owner
● Brand is not thoroughly established
● Tarnished brand name in
connection with the owner
● High selling price

Opportunities Threats

● Expansion of the brand locally and ● Numerous and strong competitions

internationally ● Various cheaper substitutes
● Partnership with other ● Low appreciation of the brand
establishments
● Use of fans associated with the
owner

B. Marketing Mix of Competitors

Product Price

Promotion Place

CHAPTER 4 - Brand Situation

I. Background

II. Current Marketing Mix

A. Product
Hayden Fragrances:
- The company’s product mainly focuses on bringing a collection of
 fragrances to the market. With the collaboration of top perfumers in
Paris, the formulated fragrances are projected to last longer in
warmer climates. Each of the products have a unique scent and
packaging in correlation with the target market.

(https://www.facebook.com/haydenfragrances/)

Product Variety:
- The fragrance collection will be available for men and women which
currently has six scents available in the market. The products being
offered are available in 60ml and 120ml.

(https://www.slideshare.net/JoeyUmandap/hayden-holiday-gift-guide)

Quality:
- According to the company’s website, the launch of the collection
has been recognized as “a very tasteful, thoughtful, and elegant gift
to give on any occasion.”

Features:
- The lasting quality scents are developed considering factors such
as the country’s weather.

Brand name:
- The brand and product is named after the founder and creator
Hayden Kho, Jr., but has been controversial due to his relationships
and video scandals.

Packaging
- Each of the products are elegantly boxed, with a ribbon and packaged in a
black and ivory colored box with the company’s logo in front.
 (https://leahdeleon.com/2011/10/30/hayden-fragrances/)

Services
- The customers are given the freedom to return the products if the
quality is not met. The company also acknowledges any feedback
for suggestions and complaints regarding the products.

B. Place
- The company has set up shopping stalls located in different malls in
Luzon such as Glorietta 3, Trinoma, Ayala Marquee, Robinson’s
Galleria, Filinvest Festival Mall. In addition, the company has stores
open in several other SM branches such as SM North EDSA
Annex, SM North EDSA Main Mall, SM Fairview, SM Megamall, SM
Fairview, SM Makati, SM Megamall, and SM Mall of Asia. From the
company’s partnership with Maldita and Ever Bilena, the products
are also being sold within the partnered stores and website. To
further cater the customers, the company has set up an online store
http://haydenfragrances.multiply.com wherein customers are able to
purchase the products without going to the company’s physical
store. The company’s office is located at 2504-A West Tower, Phil
Stock Exchange Center, Tektite, Ortigas Center, Pasig City and can
be contacted through their email address:
emailinfo@haydentm.com and phone number: +632 570 7798.

C. Price
- The price of the products range from P100.00 to P660.00
depending on the type and quantity of the product. The company’s
efforts to partner with Cash Cash Pinoy, an online group buying site
gives discounts and promotions to the customers. The company
 also gives special discounts during the holiday season wherein
products are being offered at a 10 percent discount when bought
online. Payment methods such as cash, credit and debit cards are
accepted by the company.

D. Promotion
- The company had a grand launch event at Nuvo in Greenbelt that
introduced the product line. Promotional activities such as
advertising the products through posting billboards are also being
activated by the company. In effort to promote the brand online, the
company has different accounts in social media to further cater the
customers.

(https://www.facebook.com/haydenfragrances/)

CHAPTER 5 - SWOT Matrix

(https://twitter.com/hayden_paris)
 HAYDEN FRAGRANCES

Strengths Weaknesses

● Celebrity endorsement ● Controversial case against the

● Popularity of the owner owner
● Partnerships and collaborations ● Brand is not thoroughly established
with fashion and cosmetic industry ● Tarnished brand name in
● Social media presence connection with the owner
● Wide collection of perfume scents ● High selling price
● Discounts and promotions were
offered
● Available online transaction with
customer

Opportunities Threats

● Expansion of the brand locally and ● Numerous and strong competitions

internationally ● Various cheaper substitutes
● Partnership with other ● Low appreciation of the brand
establishments
● Use of fans associated with the
owner

CHAPTER 6 - Marketing Strategy

I. Statement of the Marketing Goal

II. Target Market

A. Buyer / Audience decision-making process / Buyer journey

B. User-persona

C. User touch points

III. Product Matrix and Rationale

A. FAB Framework

B. Unique Selling Proposition

CHAPTER 7 - References
https://www.mcgill.ca/oss/article/history/story-perfume

https://www.grandviewresearch.com/industry-analysis/perfume-market

https://www.cosmeticsdesign-europe.com/Article/2020/11/06/COVID-19-fragrance-
needs-Safety-cleanliness-and-serenity-says-Firmenich
https://www.mordorintelligence.com/industry-reports/fragrance-and-perfume-mar
ket

https://www.voguebusiness.com/beauty/fragrance-the-shift-to-digital

https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-manila/docu
ments/publication/wcms_762209.pdf

https://www.congress.gov.ph/legisdocs/basic_16/HB06150.pdf

https://www.managementstudyguide.com/social-factors-affecting-consumer-beha
viour.htm

https://encyclopedia2.thefreedictionary.com/Perfume+and+Cosmetics+Industry

https://dictionary.cambridge.org/us/dictionary/english/consumer

https://marketbusinessnews.com/financial-glossary/customer-definition-meaning/

https://corporatefinanceinstitute.com/resources/knowledge/finance/compound-gr
owth-rate/

https://www.sisinternational.com/solutions/fragrance-perfume-market-research/

https://www.startups.com/library/expert-advice/what-is-a-startup-company
https://economictimes.indiatimes.com/definition/markets

https://www.nationsonline.org/oneworld/third_world_countries.htm

https://academic.oup.com/jid/article/200/7/1018/903237

https://www.slideshare.net/JoeyUmandap/hayden-holiday-gift-guide

https://leahdeleon.com/2011/10/30/hayden-fragrances/

https://www.facebook.com/haydenfragrances/

https://twitter.com/hayden_paris?lang=en