GROUP 3 (LaSalellians) - MADFUND

SMELL CHIC CASE STUDY

I. VIEWPOINT
For this case study, Smell Chic’s owners are in charge of the decisions of the
company, specifically Mike and his partners.

II. TIME CONTEXT

The issue of the case arises from Smell Chic’s need to increase its reach and
generate more volume, which begins with the opening of its four mall kiosks. To seize
the opportunities presented to them, Smell Chic has to overcome its low brand
awareness.

III. STATEMENT OF THE PROBLEM

The main problem of this case is that the company lacks market exposure. As not
enough people are aware of their brand, the organization struggles to strengthen their
brand name and identification due to bad marketing and promotion.

IV. OBJECTIVES
The goal of this study is to increase the company's brand recognition and its
ability to draw in more potential consumers. The brand of the organization will become
more well-known among its target audience by using an upward marketing strategy.

V. ENVIRONMENTAL SCAN / AREAS OF CONSIDERATION

A. SWOT ANALYSIS

Strengths
1. The brand has a wide variety of products
2. Potential to become a well-known brand around the Philippines
3. The personal care industry has an increasing growth rate in the coming
years
4. Smell Chic has multiple product placements in local stores here in the
Philippines
5. High-quality products
Weaknesses
1. Low customer engagement
2. Weak and unstable marketing strategies
3. On the pricier side of the industry
4. Tough competitors
5. Does not have many physical stores
Opportunities
1. High demand in the industry
2. Product variation can attract loyal customers to other products Smell Chic
has to offer
3. Ample room for growth and development
4. The industry is fast growing
5. Expand in more stores
Threats
1. Strong and aggressive competitors
2. Less exposure may cause less progress
3. Economic recession
4. The growth rate of competitors
5. The price difference to competitors

S/O Based Strategy

1. Increase online advertising, especially for products
that sell the most for the brand
2. Since the industry is fast growing Smell Chic has to
expand moderately and efficiently
S/T Based Strategy
1. Since the personal care industry has an increasing
growth rate Smell Chic has to maximize its potential in
becoming a bigger and more well-known brand
2. Since it is known that Smell Chic sells high-quality
products it may lessen the customer switch from
Smell Chic to another competitor
W/O Based Strategy
1. If Smell Chic were able to expand their stores they
would have more customer engagement
2. With so many marketing materials in this generation
Smell Chic may utilize more online platforms to sell or
advertise their products
W/T Based Strategy
1. With so many aggressive competitors Smell Chic
should lower their prices initially in order to attract
more customers a lower entry point would always
 attract customers especially when good quality is
present
2. Proper and effective marketing strategies should be
practiced this would help attract new customers and
may even make the business grow as a whole when
done right

VI. ALTERNATIVE COURSES OF ACTION

1. Increase and Utilize Social Media Marketing

Using social media marketing to promote the company's brand and
objective is a cost-effective strategy. Businesses now increasingly rely on social
media since the organic reach is steadily declining. A more thorough social
media presence makes it simpler for current and future consumers to engage
with the company and signals to them that the company or the business is open
to communication and suggestions.
Advantages
● Can Increase the company’s reach and presence with little to no cost or
expenses.
● Can expand and increase the company’s brand recognition.
● Easier to connect and communicate with customers.
Disadvantages
● Time-consuming and needs a lot of effort
● The company needs to hire a good “creatives” team that can make good pub
mats.

2. Building and making their own Website

Having their own website helps them let people find and market their
brand online, even though they can be discovered on platforms like Lazada,
Shopee, and their own social media. Everything that can't be added to social
media postings may be found on the website, including items, services, pricing,
locations, descriptions, and much more.
Advantages
● Can increase the brand awareness of the company.
● It can help potential customers to discover the company and establish credibility
and proof.
Disadvantages
● Website crashes
 ● The website should be kept up to date and reliable so that it can’t mislead
customers

VII. RECOMMENDATION

A. Utilize more online platforms such as Facebook, Instagram, TikTok,

Shopee, Lazada and etc. in order to maximize customer engagement
locally and maybe even internationally.
B. Smell Chic can partner with charities similar to The Fragrance Foundation,
which will increase the social awareness of the company making it more
attractive to consumers. This will increase their reach to people all around
the Philippines because the charity will be able to promote its products
through various outlets and platforms.

VIII. PLAN OF ACTION

Activity Measure Person-in-charge Start Date End Date

Online activity: Campaign No. of • Marketing 3 weeks Kiosk

the current products Engageme department before the opening
through ads nts kiosk
opening

Online activity: Seek Audience • Marketing 3 weeks Kiosk

influencers for further department before the opening
advertising to a new kiosk
market opening

Online activity: Voucher/s No. of • Marketing 3 weeks Kiosk

giveaways through the Participants department before the opening
social media accounts kiosk
opening

On-ground activity: Consumer • Marketing 1-2 weeks Kiosk

Layout and design survey department before kiosk opening
kiosks; prepare product • Kiosk attendants opening
testing stations

On-ground activity: Invite Consumer • Marketing 1-2 weeks Kiosk

influencers for kiosk survey department before kiosk opening
openings • Kiosk attendants opening
On-ground activity: First Sales • Marketing Kiosk Kiosk
50 customers to department opening opening
purchase more than a • Kiosk attendants
given amount will have a
chance to spin the wheel

IX. CASE QUESTIONS

1. What other strategies can the brand explore aside from the strategies
mentioned above?

Aside from the mentioned strategies, Smell Chic can partner with charities similar
to The Fragrance Foundation, which will increase the social awareness of the company
making it more attractive to consumers. This will increase their reach to people all
around the Philippines because the charity will be able to promote its products through
various outlets and platforms.

2. What online activities should they do to be able to generate engagement

and purchases?

Smell Chic as said in the case study is struggling with online engagement leading
to less awareness of the brand to the target market. Smell Chic has to start utilizing
newer online platforms such as TikTok. It is seen in the past years that TikTok has been
utilized by brands to grow and expand their brand awareness to people all over the
Philippines and some audiences around the globe. Moreover, with more and more
Tiktok users in the years to come, it is no doubt that we will see more small and regular
businesses use TikTok to advertise their products or services. TikTok marketing includes
brand awareness, a door to more customers, and advertising by collaborating with
famous TikTokers and providing promo deals for the viewers. To add to that, there are
many influencers who make videos about #ShopeeBudol or #LazadaBudol, making
people search for products they are reviewing. Lastly, Shopee ads have been
increasingly seen and used to market products or services.

Another online activity that Smell Chic can do to be able to generate engagement
and purchases is to utilize and take advantage of social media. Due to the rise and
advancement of technology, the majority of individuals today are using social media.
That is why social media should be a tool for interaction with them. They should get
consumer comments and preferences, keep an eye on trends, and alert them to new
offerings. By doing this, the business will not only promote their client involvement but
also examine areas for improvement, gather concepts for prospective new goods, and
have a chance to boost sales. Moreover, they should assign someone to answer client
inquiries; a prompt response will improve customer contact and motivate them to
purchase the company's goods, as opposed to making them wait for an extended period
of time, during which they may lose interest or become aware of other brands' offerings.
For their clients, they may also hold contests with prizes like merchandise or coupons
for discounts.

3. In support for their new kiosks openings, what on-ground activities should
they do to be able to entice consumers to purchase the product by AB
market?

Leveraging the nature of its business, one on-ground activity Smell Chic can do
is provide consumers with an engaging experience by activating their senses. In the
aspect of visuals, Smell Chic can layout its kiosks in a well-designed and inviting
manner, and select colors that represent its minimalist ethos. With regard to the sense
of smell, the kiosks can have a station where customers can smell the different
fragrances of the sprays and diffusers it offers. As to the sense of touch, the showcased
products in the kiosks can be positioned for consumers to easily feel, touch, and try
them. Different product testing stations within the bounds of the kiosks can be
strategically situated to ensure an opportunity for consumers to experience the products
themselves. Through a unique, multisensory experience, Smell Chic captures the
attention of its market, communicates its brand values, and potentially boosts its sales.
For consumers on their initial encounter with the brand, Smell Chic would leave a good
first impression on them should its kiosks be as interactive and engaging as possible.

Aside from the unique kiosk experience activity, Smell Chic can also incorporate
special events and promotions into the kiosk openings. For example, the first 50
customers who purchase more than a specified amount will be given a chance to spin
the wheel to win free Smell Chic products. Another promotional activity is gifting
customers who will purchase an item from a product group, such as aromatherapy,
home fragrance, and body wash. The gift can be either any product of the consumers’
choice or a product offered by Smell Chic for only a limited period. Furthermore, on the
opening day, influencers can be invited to be part of the kiosk attendants to attract
passersby. Since the potential customers will be coming to the kiosk out of curiosity,
attendants must ensure that they stay invested in the kiosk by immersing them in the
different stations and identifying the product groups they want. Lastly, for potential
customers on the go, kiosk attendees can give out scent strips and cards or pamphlets
encouraging them to visit and experience the kiosks when they have the time.