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The Online Perfume Industry

The Online Perfume Industry. Chris Butsko Srinath Nagarajan Yuenman (Priscilla) Pang. Major Players in Online Perfume Industry. FragranceNet LaParfumerie Perfumania MyPerfume Fascination Perfumery LoveMart The Fragrance Counter Jasmin.com. A Sample Front Page. Basics.

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The Online Perfume Industry

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  1. The Online Perfume Industry Chris Butsko Srinath Nagarajan Yuenman (Priscilla) Pang

  2. Major Players in Online Perfume Industry • FragranceNet • LaParfumerie • Perfumania • MyPerfume • Fascination Perfumery • LoveMart • The Fragrance Counter • Jasmin.com

  3. A Sample Front Page

  4. Basics • Consumers do not need to sign up online with perfume company • Can shop anytime anywhere where they have access to web interface • Go to the web site, select perfumes (or other products if provided), pay using credits cards (some sites also accept checks and money order), and arrange for shipping

  5. A Sample Signup Page

  6. A Sample Perfume Store

  7. Online Perfume Industry • Who are the customers? • “Over the past ten years, Perfumania, Inc. focused on developing a chain of discount retail fragrance stores to meet the needs of today’s fashion-conscious, value-oriented consumers.” (Source: Perfumania)

  8. Online Perfume Industry • Who are the customers? • International customers => FragranceNet offers shipping worldwide

  9. Online Perfume Industry • How do they attract customers? • Affiliation Program (FragranceNet, LaParfumerie) • Great Discounts (All) • Low price guarantee, beat competitor’s price by 5% (FragranceNet) • Free Shipping and worldwide (FragranceNet) • Free wrapping (FragranceNet, LaParfumerie) • Gift with every order (FragranceNet) • Personalized service (FragranceNet, Perfumania) • Also provide complementary products like, cosmetics, hair/body care, accessories, Lingerie, etc. (LaParfumerie, Lovemart) • Word of mouth (all) • Media Advertising (all) • Direct mail (FragranceNet, LaParfumerie, Perfumania)

  10. Online Perfume Industry • What types of value-added do the firms provide? • Advanced Search Criteria • Special methods for you to explore collections of fragrances and find the ideal one. • Search by brand to browse hundreds of fragrances for both men and women • Search by fragrance family for descriptive characteristics such as aromatic, fresh, floral and oriental • Search by interesting ideas, such as unique bottles, teens, classics etc. • Inform, Educate and Entertain • Magazine – Ex. JASMIN Magazine • Search criteria like “fragrance family” help educate users about fragrances

  11. Online Perfume Industry • What types of value-added do the firms provide? • REMINDER Services • Ex. In FragranceNet.com, members of a club get email notifications of birthdays, anniversaries and other important dates • Higher Buyer-Seller Interaction • Ex. In FragranceNet.com, customers can speak to a fragrance specialist via e-mail or a toll free number • Address Net-Buyer Concerns • High security. Ex. Billing Address must match credit card address for the card to get accepted

  12. Online Perfume Industry • How do they get potential customers to try the products? • Experience good • Price Guarantee • Ex. Fragrancenet.com guarantees that it will beat any competitors price by 5%! • Offer promotions/guarantees to bring in potential customers • Free US shipping and handling (FragranceNet) • Free gift wrapping (FragranceNet, LaParfumerie) • Free gift with each order (FragranceNet, PerfumeShop) • Guarantee to beat any competitor’s price by 5% (FragranceNet)

  13. Online Perfume Industry • How do they get potential customers to try the products? • Free samples • Jasmin.com – only with registration • Strategic alliances to distribute samples to customers of • Vendors of related or other goods • Ex. Online book stores, drug stores etc. • Service providers • Ex. Email providers, ISP’s, Online Communities

  14. Online Perfume Industry • Turning one-shot customers into repeat customers • Personalized services (increases switching costs) • FragranceNet offers a “Reminder Club” in which a consumer enters personally important dates (birthdays, anniversaries, holidays), and receives an email from the company as a reminder of an upcoming date • Perfumania offers fragrance consultants to provide customers with personalized service and expert advice • Offering complementary products • Perfume Center offers a link to HandyCraft.com, where hand crafted goods may be purchased • Perfumania offers bath/body products, aromatherapy products, and an electronic greeting card service at its web site • Excellent customer service • Variety of companies offer an 800 number to talk to fragrance specialist if cannot locate a scent • Also provides a store locator to find out where stores are for customer to buy a certain perfume

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