- Università: Bocconi
- Docenti:
Fabrizio Zerbini
- Studenti:
Sofia Antonucci, Irene Bonotti, Julius Maher, Martin Bremec, Caterina Rosamilia, Alessandro Pomatto
We propose an innovative and revolutionary retail store concept in the fragrance industry. We conducted a careful analysis of macro trends in both Italy and throughout Europe thanks to a PESTLE analysis, as well as a micro analysis focused solely on the Italian market. We identified an opportunity to revolutionize the process of buying fragrances and transforming it into an exciting and personal experience. Our store was thus conceived: an ever-changing retail-store offering a selection of perfumes based on the current season, accompanied by a unique, multisensory experience. We plan to locate our store in one of Via Montenapoleone’s side streets, taking advantage of the large flow of high-income, fashion-sensitive people who visit there every day. We have identified a core target group within these consumers, called “The Elegantes”. The Elegantes are people with high incomes, particularly attentive to their own style and to new trends, and have a high willingness to pay. They also like to have a different fragrance for every season. As a secondary target group, we want to cater to “business people”; high-income individuals who also care about their appearance, but whose work-life balance doesn’t leave much time to go shopping. The retail-store section is the first part the consumer sees: we aim for a multi-sensory experience of the shopper who from the very entrance is immersed in an open space room in which, thanks to advanced projectors and digital panels, is immersed in an environment designed around the current season and in which 10 fragrances, selected for the season, are displayed. Bonotti is thus presented as an exclusive and innovative playground where consumers can find luxury fragrances, already selected to suit the season, saving them time on choosing perfumes and making their lives easier. The consumer will be able to move as if in an art museum around the room, knowing that no matter what fragrance he or she chooses, it will fit the season.
Despite this, the heart of our store and our value proposition lies beyond this room. After entering a waiting room, the consumer is led to dark room with a tablet in the middle, on which the consumer answers a series of questions about their preferences, personality, and taste. They will go through a unique experience in which colors, images and sounds are projected on the walls while the AI algorithm chooses the fragrance that best fits the customer from our selection of 750 different perfumes. Once the survey is completed, a small quantity of the perfume is dispered in the room and the customer has the option of buying the perfume. Our extremely trained and knowledgeable sales assistants will be available to help the person during each stage while always maintaining a close relationship with the customer typical of luxury, offering champagne or coffee to customers before and after the. Experience. All decorations and furniture will be in a modern and minimal luxurious theme, remaining consistent with the main themes of the seasonal room.
Thanks to an automatic monitoring system of important KPIs on performance, a developed IT and IoT system that will make information flow quickly and easily inside of the store, we aim to achieve a competitive advantage over competitors.
Our pricing strategy consists in maintaining good relationships with producers and wholesalers allowing us to have a 210% markup over the acquisition price and maintaining a price that is slightly less or equal to a boutique purchase. Our prices will therefore range from 90€ to 1000€ according to the different brand’s positioning. We forecast to sell 60% of products in a in a price range between 90€ and 200€, 30% between 200€ and 400€, and 10% higher than 400€. Consequently, our assortment will be adapted to those forecasts monitoring constantly or sales data and being flexible to consumer’s wants and needs. These strategies will be combined with a very structured marketing campaign composed of: billboards in strategic places in Milan such as Piazza Duomo and Piazza San Babila(short-term strategy for the initial two weeks), commercials in fashion magazines such as Vogue Italia, ads on social media and use of a newsletter (long term strategies). We believe these will allow us to not only to reach the breakeven quantity in the second year but also to make positive and growing profits in the next coming years.
