Retail marketing and logistics: marionnaud case

septembre 9, 2018 Non Par admin

I have chosen the French retailer Marionnaud because cosmetics industry is really important in France. Cosmetic industry includes « any product intended to come in contact with parts of the human body, with the aim to cleaning them, perfuming them, changing their appearance, protect, maintain in good condition or correcting body odors « (Code of Public Health, ArticleL.5131-1)
This is the 4thsector of the French economy through its trade balance (balance between exports and imports). It accounted for 6.9 billion Euros turnover in 2007 on the domestic market and 16.3 billion Euros on the world market.
The profits from this sector rose from 41 years without interruption. Its revenue is divided between exports (57%) and domestic (43%). In 2007, the cosmetics industry grew by 5.5% over2006.Cosmetics and perfumery sector employs about 45 000 people not including employees of subcontractors and distributors. It represents approximately 0.27% of total employment in France.
In France, every person bugs an average of 205.45 Euros in perfumery, hygiene, beauty per year. This consumption is the 4th largest in the world behind the United States, Japan and Brazil. In 2008, it declined by2.3% over one year 1, reflecting a price increase of 3.9% over the same period. Consumption via the internet has become fundamental in 2006; the French spent 700 million Euros on net cosmetics. Today, there were two very promising new trends: 4% of the market in 2007 and increases of 40% per year. Each day, the French but’, on average, 525000 shampoos, 309000 health care products and specifics157000 bottles of perfume(45000 for men).
(¬parfumerie-un-marche-qui-sent-bon-la-croissance-556.php, 2009)

Marionnaud is the Europe’s largest perfumeries and cosmetics retailer; it is the latest addition to the A.S. Watson family. Its reputation is built upon trust, which has driven it to become the leading perfumeryChain in France, the home of fragrances, with a market share of 30%. Its 1,210-plus store network stretches to 13 countries, and it is the market leader in 10 of them.
Marionnaud is renowned for service, professional advice, competitive pricing and customer loyalty.
Founder Marcel Frydman acquired his first perfume store in 1984. The group has registred exceptional growth ever since. Between 1986and 1992, it bought a large number of local perfume retailers and independent outlets.
By 1996, it owned 48 outlets and then acquired the Bernard Marionnaud SA chain, immediately doubling its site. In 1997, the entire network adopted the Marionnaud Perfumeries brand. Based on this success, Marionnaud went ahead with an IPO to raise funds for development and, as a result, has acquired more than1,100 outlets in five years. In 2002, Marionnaud continued its expansion in Europe, particularly in Italy, Spain and Portugal, becoming one of the leading perfume retailers in France and subsequently the market leader in Europe. In 2005, A.S. Watson acquired Marionnaud with the aim to expand the Group’s portfolio in the perfumery sector and further develop the chain in Europe and internationally. InSeptember 2006, A.S. Watson introduced Marionnaud to the Asia Beauty market with the opening of its flagship store in the Mall of Asia in Manila. In April 2008, Marionnaud expanded further into Asia by opening the first Marionnaud Paris in Hong Kong. (, 2009)
1) Positioning strategy of Marionnaud:
Marionnaud is positioned as a luxuryretailer thanks to the exclusive partnerships it has with really famous luxury brands like Hermes (Marionnaud is the only perfume retailer which is allowed to sell this brand online). Marionnaud is positioned as a leader in France. Marionaud is different from its competitors because it offers another kind of service, in this retailer’s stores shop assistants are really qualified, they have degrees,…