TABLE OF CONTENTS

I.

Background of the Case.................................................................................................3

II.

Statement of the Problem...............................................................................................4

III.

Goals and Objectives......................................................................................................4

IV.

Areas of Consideration (Analysis ad Assumptions)....................................................4

a.

SWOT Analysis................................................................................................................4

b.

STP (Segmentation, Target, Positioning)......................................................................5

c.

4 Ps.................................................................................................................................. 5

d.

Ethical Issues in Marketing Communications..............................................................8

V.

Decision Criteria.............................................................................................................9

a.

Ease of implementation..................................................................................................9

b.

Sustainability................................................................................................................... 9

c.

Marketing Costs.............................................................................................................. 9

d.

Brand Awareness and Credibility................................................................................10

VI.

Alternative Courses Action:.........................................................................................10

1.

Do Nothing..................................................................................................................... 10

2.

Re-brand the product with another name....................................................................11

3.

Strategic Expansion through improved communication...........................................12

VII.

Recommendation and Action Plan..............................................................................12

MARKETING PLAN.................................................................................................................. 14
a.

Industry Study............................................................................................................... 14

b.

Marketing Mix Strategies and Programs.....................................................................15

i.

STP Approach............................................................................................................ 15

ii.

4Ps of Marketing.......................................................................................................15

I.

Background of the Case

It is often said that sweet fragrance creates inspiration and heightens positivism. Perhaps one of
the reasons why Filipinos remain positive and in the list of happiest countries in the world is the
fact that it values smelling good and looking nice in the public. This assumption is best
exemplified by a research conducted by Euromonitor International in June 2013 which
concluded that even Filipino men are increasingly availing of grooming kits.1
Euromonitor Internationals June 2013 report on Fragrances in the Philippines assumed positive
growth for perfume products in the Philippines that backed by improvement in the economic
situation and Filipinos strong interest in maintaining proper hygiene as well as increasing
demand for premium fragrances. The stronger competition in the category will encourage
manufacturers to limit price increases, or even implement price cuts. Manufacturers will attract
new consumers to try their products through the use of promotional pricing schemes. These will
be more prevalent in mass fragrances, in which pricing is a key consideration in product
purchases. It also has a high prospect for the industry considering the expansion of shopping
malls and the establishment of department stores in more key cities which will provide premium
brands with new markets in the forecast
Hayden Fragrances is an innovation of Inovacao Da Vida, a Philippine-based company which is
dedicated to enrich the lifestyles of its clients through the art and science of fragrances. The
company is founded and is being managed by Dr. Hayden Kho, Jr., infamous for the series of
sex videos scandals with several known female personalities in the country that wrecked his
career as a medical practitioner.

Dr. Hayden Kho capitalized on his knowledge of beauty and fashion and positively pursued his
further studies on perfume making and management in France. He brought with him this French
understanding of fragrances to create his own brand of mass fragrance available for all genders.
With just more than 2 years of presence in the country, it still has a long way to survive in this
1June 2013; Euromonitor International. Passport: Mens Grooming in the Philippines
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industry with a lot of competition not only from premium brands but also with several mass
fragrance lines that are proliferating in the market.

Alongside the objective of ensuring the marketability of Hayden Fragrances, this case will
primarily tackle ethical issues involved in marketing communications.
II.

Statement of the Problem

What must Hayden Fragrances do to channel ethical marketing communications for its product
considering the tarnished reputation of its founder and owner?

III.

IV.

Goals and Objectives

To ensure proper and ethical marketing communications for the product

To increase its market share
To strengthen brand equity alongside competitors
To continue to serve the society
To improve profit margin

Areas of Consideration (Analysis ad Assumptions)

a. SWOT Analysis

STRENGTHS

Popularity of the owner/manager

Unique manufacturing process

Strong partnerships and collaboration with Maldita and Ever

Bilena

WEAKNESSES

Knowledge of the perfume/fragrances

Availability of the product on-line

Tarnished reputation of the owner/ brand name

High selling price

Starting and competing with giant mass fragrances like Bench,

Penshoppe, Joel Cruz and other celebrity endorsed perfumes

Fan-base, regardless of tarnished reputation, owner has a niche

with fans

OPPORTUNITIES

THREATS

Partnerships with other fashion brands

Expansions in the provinces and international

Strong competitions

Huge number of cheaper substitutes, even deodorants

High costs of capital

b. STP (Segmentation, Target, Positioning)

Segmentation

Class D to Lower Class C and even Upper Class C.

Target

It targets young professionals who still cant afford the luxury and
expensiveness of premium perfumes. Its product is meant to suit the
different scent orientations and preferences of the consumers through
several product lines and variations.

Positioning

HAYDEN is a collection of extraordinary fragrances created in

collaboration with top perfumers in Paris, formulated to last longer in
warmer climates. With its unique scent, elegant packaging and
thoughtful presentation, each Hayden fragrance is an exceptional
way to make your own personal statement, as well as the perfect
pleasure to give, or to receive.

c. 4 Ps
Product

For Her:

For Him

Purse Sprays:

Body Sprays:

The fragrances are developed to pay special attention to lasting, quality

scents taking into consideration the countrys weather.
The product is named after the owners and creator Hayden Kho,
controversial and infamous given his relationship with Dr. Vicky Belo and
his sex video scandals
The packaging is elegantly and thoughtfully boxed, with a ribbon
Perfumes and body sprays are available in 60 ml and 120ml , while the
purse sprays are available in 10ml variants,

Price

Purse sprays : 10 ml bottles are sold at P98.00 per bottle

Perfumes:
60ml are sold at P380.00 per bottle
120ml are sold at P520.00 per bottle
Body Sprays:
60ml are sold at P130.00 per bottle
120ml are sold at P230.00 per bottle
The company has tied up with group buying sites which offers products
at discounted rates.
It is being sold at all Maldita branches nationwide and through Ever

Place

Bilena Direct Sales Channels apart from its companys stalls in several
Promotion

Ayala Malls, SM Malls and Robinsons malls.

It has existing website, blog, multiply, facebook and twitter accounts
It runs several promotions to group buying sites online while it has put
up a very good launch at Greenbelt and traditional media mileage such
as Billboards and newspaper print ads.

d. Ethical Issues in Marketing Communications

Marketing ethics addresses principles and standards that define acceptable conduct in the
marketplace. (Ferrell)2 Some obvious ethical issues in marketing involve clear-cut attempts to
deceive or take advantage of a situation. Some major ethical concerns regarding marketing
programs generally are that:
- Marketing causes people to buy more than they can afford.
- Marketing increases the costs of goods and services
- Marketing perpetuates stereotyping of males, females and various ethnic minorities.
- Marketing creates offensive advertisements
- Marketing creates advertisements linked to bad habits and intimate object subjects.
- Marketing prepares deceptive and misleading advertisements
C. Farell (2005) has devise the following framework to underscore ethics in marketing:

Individual Factors:
moral philosophies and
values

Stakeholder
Ethical issue
Ethical
interests and
intensity
decision
concerns
2 http://www.genderprinciples.org/resource_files/Marketing_Ethics.pdf

Evaluation
of ethical
outcomes

Individual Factors:
moral philosophies and
values

V.

Decision Criteria

a. Ease of implementation

This will pertain to how much change there will be in the organization and its operations once
the alternative course of action is implemented. And in any business decision, cost will always
be an important consideration especially for an organization that exists to generate profits for its
stakeholders

b. Sustainability

Sustainability focuses on the long term impact of a business decision, which is a way to
measure the stability of the solution. The goal is to ensure that Hayden Paris Fragrances
stabilizes as a good consumer brand not just of value but of its effect to consumers. The
decision should also prove to be manageable all throughout the time. It should not just be a
current, one-time solution but a long-term workable decision for the management.

c. Marketing Costs

The decision must also ensure the least cost with the greatest marketing impact for the
company

d. Brand Awareness and Credibility

The decision must come up with a solution that will further establish brand awareness and
credibility for the company

Given the identified areas for consideration, the above decision criteria are given their
corresponding weight as follows:

Decision Criteria

Weight (in %)

Ease of Implementation

10%

Sustainability

20%

Marketing Costs

20%

Brand Awareness and Credibility

50%

TOTAL

100%

VI.

Alternative Courses Action:

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1. Do Nothing

From the time that the company has started marketing and distributing the Hayden Paris
Fragrances, it has continue to penetrate the market without any issue as to its ethical
foundation. While the owner remains tangled with several judicial and gossip-made cases
involving several sex video scandals he has been, there is an apparent acceptance of the brand
considering several branches it has already set up and the partnership it was able to
established. It also appears that Dr. Hayden Kho, given his charms and good looks remains to
have a niche fan-based that is willing to considering using his perfume products.

PROS

ACA 1

CONS

No added cost for the company.

No additional work nor manpower

No growth potential if marketing will

not be enhanced as well.

requirement

No risk taken up

2. Re-brand the product with another name

In this alternative course of action, the company will consider renaming the product with a
different name. This is to eliminate any direct connection with the owner so that the product can

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flourish on its own using other marketing techniques other than naming it through a popular
celebrity.

PROS

Perfume products may be renewed as

a brand on its own

Haters of Hayden Kho, might blindly

ACA
2

CONS

the re-branding will entail relaunch of the product as if it is a

consider the new brand, not because

of its relationship with the maker but

new product.
Risk of losing existing customers

for the Hayden brand.

Will entail a lot of work, from

because of its benefits as a particular

brand
Can also change the pricing scheme

conceptualization to

of the brands. Considering the strong

implementation. Including the

competition, this is an opportunity to

understand the industry rates and
base its pricing scheme thereto

Cost will be huge considering that

branding, the packaging.

No guaranty that it will no longer
be tied to the owner, as the owner
remains the same.

3.Strategic Expansion through improved communication

Capitalize on the value of renewal, positive change, and progress of Dr. Hayden Kho and its
perfume products. Marketing may include press releases of the right apologies of Dr. Hayden
Kho for its previous involvement in scandals and how is has been recuperating and his desire to
change as a better person. This will only work if indeed Hayden Kho has found niche in this
perfume business, has undergone change of lifestyle and is really trying to improve his life.
Improve the product awareness through wholehearted support to community work, particularly
to women and childrens welfare.

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PROS

ACA

CONS
Capitalizing on theres goodness in

every person is working on easily

forgiving

and

forgetful

Filipinos.

Filipinos normally forgive especially if

they see sincere change in the person.

VII.

Cost for expansion will be minimal

Chance for further opportunities

This

can

be

an

experiment

without assurance of real results.

May open the owners life for
further bad publicity and criticisms.
There were victims who may not
have the heart to forgive as of the
timing of this marketing strategy.

No need to change the brand

Recommendation and Action Plan

Decision Criteria

ACA 1:

ACA 2:

ACA 3:

Ease of Implementation (10%)

10%

6%

10%

Sustainability (30%)

20%

25%

25%

Marketing Costs (20%)

15%

10%

20%

Brand Awareness and credibility (40%)

30%

35%

35%

TOTAL

75%

76%

90%

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Basing on the above tabulation, ACA 3 is the best course of action. Hayden Paris Fragrance
must capitalize strategically its marketing communication before further identifying key areas of
expansion through improved market communication. Sometimes, showing the good side of th
Dr. Hayden can allow forgiveness and certain improvement on his credibility to which his
business are attached and affected.
The desire to change for the better can further enhance the value proposition as well of the
product he is selling, as if persuading customers to believe that positive change can also
improve their lives.

Communication of the products value proposition will be improved in

potential target markets. Surveys and further market study will be conducted to identify which
markets are open to the value of fresh, healthful products and once these areas are identified,
partner distribution centers will be tapped to offer Gardenias products in said areas.

The process of doing this action plan will undergo internal and external decision-making
processes. This will make sure that significant changes that will be done to the marketing of the
product will have considerations of all the stakeholders.

INTERNAL
Internal processes will include a planning session to be conducted by the Marketing team with
the owner and through its public relations expert (either hired or serving a a consultant). Meeting
will identify what is necessary communication to be relayed to everyone, what media to be used
and how the process will be taken.

EXTERNAL

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Alongside, the Marketing and operations team must also be able to identify expansion
opportunities for the company, either through partnerships with other brands or through direct
selling and online opportunities

VIII.

Conclusion

The company is still in the growth stage, but what somehow is hindering its opportunity to grow
is the direct relationship that is attached to the owners past and the products it is now endorsing
and sharing to the public. Primary responsibilities for ethical behaviour reside within each of us
when placed in any of the various marketing communications roles. We can take the easy route
and do those things that are most expedient, or we can pursue the moral high road and treat
customers in the same honest fashion that we expect to be treated. In large part, it is a matter of
our own personal integrity. Integrity is perhaps the pivotal concept of human nature. Although
difficult to precisely define, integrity involves avoiding deceiving others of behaving purely in an
expedent fashion.

MARKETING PLAN

a.

Industry Study

According to Euromonitor International3, fragrance current value growth slightly contracts by

0.3% 2012, reaching Ps7.5 billion. Mass mens fragrances sees the most dynamic performance
3 June 2013; Euromonitor International. Passport: Fragrances in the Philippines
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in 2012. Avon Cosmetics maintains its lead in fragrances with a 43% value share in 2012 and
Finally fragrances is expected to see negligible but positive constant value growth in the
forecast period, with a CAGR of less than 1%
Current Product/Brand Situation
Hayden Paris Fragrances is still on the initial growth stage. With a very strong competition
coming from the presence of premium brands that readily attracts classes A & B, and mass
fragrances that are proliferating right now to cover for Classes C & D, it has to work on a lot of
aspects of its operations and particularly its marketing to enhance its market share.

b. Marketing Mix Strategies and Programs

In order to market better its operations and marketing strategies, a few changes will have to be
made on Hayden Paris Fragrances internal processes.

i.
Segmentation

Target

Positioning

STP Approach
While it will not be able to compete with internationally known premium
brands to capture Classes A & B market, it can improve on its costing
and pricing to target not just Class C but also Class D. This may
include offering products in smaller variants, etc.
Students, particularly, College and High School level are mostly on
the period when they are more critical about their appearance and
hygiene. Hayden Paris Fragrances can tap this market to further
enhance profitability
HAYDEN is a collection of extraordinary fragrances created in
collaboration with top perfumers in Paris, formulated to last longer in
warmer climates. With its unique scent, elegant packaging and
thoughtful presentation, each Hayden fragrance is an exceptional
way to make your own personal statement, as well as the perfect
pleasure to give, or to receive.
It can retain its existing positioning particularly that its value
proposition is longer-lasting fragrance for warmer climates like the
Philippines.

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ii.
Product

4Ps of Marketing
Improved product offering to cater to Class D market by further retailing
the product into smaller variant so that it comes within the budget of the

Price

Class D.
Pricing strategy will be maintained Not too high to be considered
expensive, nor too low to be considered cheap; Brand equity has also

Place

put justification as to the price of the products

Enhanced distribution through partnering with other fashion and clothing
lines.

Promotion

Comprehensive in terms of media coverage (print, television and radio);

Message on why the product is fresh will be strongly communicated
and will be used as a key promotional tool in the expansion.

References
Kotler and Feller (2011). Marketing Management 14th Edition.
June 2013; Euromonitor International. Passport: Fragrances in the Philippines
June 2013; Euromonitor International. Passport: Mens Grooming in the Philippines

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