by Terry Johnson, Business and Marketing Expert
The term Consumer-Centric Marketing refers to making consumer satisfaction a focus of your activities regardless of where you are in the supply chain. One might say “But doesn’t every retailer already do that?” Surprisingly, most retailers have either not developed effective Consumer-Centric policies or have not significantly modified them since the beginning of the pandemic.
For High-Value Natural Essence retailers Consumer-Centric Marketing depends on retailers educating themselves with what consumers now want and also what they should want.
What High-Value Consumers Want
High-Value consumers are those who demand more value from the products they purchase, are willing to pay more if those demands are met, and if satisfied, will re-purchase again and again.
The post-pandemic world has changed everything, including High-Value consumers’ purchasing behaviors. What were priorities for them before, aren’t necessarily what they prioritize now.
One way to get a better appreciation of what current consumers want is to study how and why similar industries, such as sustainable brewed coffee (Starbucks) and premium wines (or other High-Value products similar to these examples), have succeeded. Find out how these companies engaged consumers using Consumer-Centric Marketing strategies.
What High-Value Consumers Should Want
A key point in convincing consumers to purchase from High-Value Natural Essence retailers is to first assume that most consumers don’t know your product well or at all. This should not be difficult, since if you are a Natural Perfumer, you are competing with synthetic perfumes that have 99% of the perfume market share. This lack of market share underscores the importance of Natural Essence retailers needing to differentiate themselves from competition in as many ways as possible. And keep in mind, we have products that are better for consumers’ health and happiness. This has great value to consumers, with wellness now at the top of every consumer’s purchasing priority list.
Knowing what High-Value consumers should want (that they may not be receiving now) can put Natural Essence retailers in a much stronger competitive position to successfully engage their market.
Here is a list of what potential High-Value Natural Essence consumers should want:
Are Consumer-Centric Marketing strategies included in your Vision Statement, Mission Statement, and Value Proposition ?
Consumer-Centric marketing practices should permeate throughout your business, so it is absolutely necessary to incorporate Consumer Centricity into your Vision Statement, Mission Statement, and Value Proposition.
Nothing is more important to a successful Natural Essence retailer’s future than these three related documents. They express exactly what you intend to do and can focus everyone on the importance and value of why you are doing it.
Yet most retailers have either never developed them, have not properly developed them, or have not updated and modified them since the beginning the pandemic.
Including Consumer-Centric Marketing strategies in your Vision Statement, Mission Statement, and Value Proposition will empower you, your business, and everyone working with you to clearly differentiate your business, and your products, while maximizing the market impact of your brand.
By Terry JOHNSON, IPF US Chairman,
New Luxury Business and Marketing Expert
This article was written for retailers. By retailer, I mean a business that sells to consumers, and I am addressing those retailers who want to significantly grow their sales and profits to consumers despite the difficulties we are facing.
An important part of a retailer’s business plan should be properly forecasting future sales and profits. This not easy in the current economy, yet it is vital to surviving in today’s Natural Essences retail environment.
For instance, if you are not forecasting sales increases well in excess of 10%, you will not be growing your business or perhaps even be going backwards simply because inflation will keep increasing costs on everything, including bottles, labels, and ingredients, shipping, insurance, legal, and accounting services.
Improving sales forecasting is sometimes far too low on the list of priorities for retailers, but for a small business competing against very large companies in a turbulent market, proper sales forecasting depends on continually improving your marketing strategies and your supply chain relationships as well.
1. Marketing Strategies
2. Supply Chain Relationships
Learn more about business and marketing in the natural perfumery environment by enrolling to Terry's 6 weeks intensive Business and Marketing Course starting on February 14.
By TERRY JOHNSON, IPF USA Chair and Business and Marketing Expert
Last month’s newsletter article discussed three value-market fundamentals every business should practice in these very challenging times. Let’s expand on these basics starting with the first fundamental:
To develop a totally value-based business to differentiate you from the competition and persuade growing numbers of high value customers there is greater value in your products than that of other competitive products.
A key word here is “differentiate.”
To succeed against stronger, well-financed competition, businesses can attract more customers by giving them better choices (differentiation) for what they purchase. This is where value and value-added come in. Competition, by the way, is much stronger than most people think it is with budgets the way they are.
If you sell to consumers, you are competing with everything they need to purchase or want to purchase. That’s quite a list!
To attract and keep customers you will be needing every value-added tool available. Why should consumers purchase your perfume or essential oil instead of something else? Can you give them ten reasons why? Twenty?
Establishing yourself as an expert in Natural Essences within your community is empowering because it gives you the capacity to help your community make the right choices for healthier and safer lifestyles.
Obviously, anyone who wishes to become and continue to be an expert in Natural Essences must have a great deal of accurate knowledge about Natural Essences, which is where the value of continuing education comes in.
If you are a Natural Perfumer, you also need expertise as an aromatherapist, and the reverse is true for Natural Aromatherapists needing Natural Perfumery. Having knowledge of the history of perfume also has important benefits and needs to be studied.
Continuing Natural Essences education along with effective messaging of the value of Natural Essences will lead to clear, positive distinctions between your up-to-date expertise and the lack of expertise from your competition.
Three Action Steps to Implement Beginning Today
by TERRY JOHNSON,
Vice Chair International Perfume Foundation & Marketing Expert
Make no Mistake; Selling to Consumers Today is as Difficult as it Has Ever Been, and it Doesn’t Appear it Will be Easing up Anytime Soon.
With competition so strong from large brick-and-mortar retailers as well as rapidly growing online retail activity, continued success for high value retailers will increasingly depend following these three basic value-marketing fundamentals:
The New Luxury Code is about recognizing and acknowledging the value of ourselves and the world surrounding us.
It is a continuing reminder of what is important to respect and why; and because of its importance, the New Luxury Code should be part of the value proposition of everyone involved in the high value essential oil distribution chain community from seeds to consumers.
How Can High Value Retailers Express Their Respect for Consumers?
Make sure your customers and the rest of the high value essential oil distribution chain community get the respect they deserve by following the New Luxury Code.
Terry Johnson will be teaching marketing starting February 2022