Introduction
FlowEsScents is a candlestick trading company. This paper examines the key factors that affect the marketing of a given company, identifies the strengths and weaknesses of the brand, and analyzes various data to determine the main goals and objectives of the company in the market and the corresponding strategies. Since candles are a specific product that does not belong to the group of essential goods, the popularity of which grows only during the holidays, the analysis of this company’s marketing will be pretty interesting.
Industry Trends: External Environment
Competitive Analysis
Yankee Candles is one of FlowEsScents largest competitors. Founded in 1969, they have strong brand recognition and a market cap of $1.04B. They specialize in providing a wide variety of scented and alternative wax candles. Currently, their growth strategy is to increase wholesale locations and quality for their customers. Yankee’s target market is women aged 20 to 60, specifically homeowners from the middle to the upper class.
Yankee Candles’ key strength would be the large number of diverse scents they have to offer. As of 2021, they have over 600 scents available, not including their car, seasonal, and specialty fragrances. They are also American-made directly from Massachusetts, allowing for better quality products and money to flow back to the American economy. A fundamental weakness they have is their premium price points which can limit their potential customer base. Yankee has a stronghold in the Northeast but has failed to develop company-owned stores outside this region.
Yankee Candles exhibits solid online marketing and retention strategies. They have a debates incentive when you go on their website. They offer 20% to 30% discounts for email sign-up, guaranteeing a follow-up to consumers, including those who have not purchased anything yet—those who sign up by email give constant updates and exclusive discounts. When receiving an order through delivery, customers also receive a letter specifically addressed to them, adding to the personalization, and they receive other companies’ coupons.
Another key competitor in the candle space is Homesick Candles. The company began in 2016 and, as their name implies, creates candles that are branded with different states to provide a homier feel to their product. Their current business model gives a scented experience to their customers that allows them to feel like they’re traveling. They currently offer scents for most states, some cities, and certain specialty scents such as Dunkin Donuts. As of 2020, Homesick had an estimated value of $1 million. Their target customers are middle to upper-class women.
For Homesick Candles, one of their key strengths is the unique quality their candles have by scenting them as destinations rather than the traditional candle scents. Another strength is the sustainability of their product; their candles are all hand-poured, created from soy wax, and contain 100% organic cotton wicks. One of their weaknesses could be the overall look of their candles.
Candles have been statistically known to be judged based on scent, color, and shape. Homesick candles all have the same cream color wax, simplistic black and white packaging design, and same-sized containers. While this type of aesthetic can appeal to everyone, it does not give any other alternative to the consumer, which can be very limiting. A fundamental weakness would also be that they sell their candles at a premium price of $30 minimum.
Homesick’s candles have been marketed through a referral after being mentioned by major companies such as Buzzfeed, Vogue, Business Insider, and Dunkin Donuts. They also offer consistent annual holiday coupons as well as build your bundle promotion. Homesick Candles does not offer international shipping, but you are guaranteed free shipping if you buy over two candles. They also have different personalization methods, whether it be by adding a letter or by personalizing the scent of the candle.
If another situation like the pandemic were to happen, we could expect to see a spike in demand for candles as we did this past year. As a result, some competitors may feel the need to make their products more feasible by decreasing shipping costs and increasing their online presence. If the market demand were to decline, we could expect to see a production of more popular scents and an increase in promotions/ discounts, especially to lesser-known candle fragrances.
Over time as environmental concerns are raised, our competitors are likely to switch over to more sustainable methods of creating candles. For example, many companies may begin to use soy, beeswax, or palm wax to prevent using toxic chemicals.
Economic Growth and Stability
FlowEsScents is based and operates within the United States. According to the US Census Bureau, the United States has a GDP of $22.68 trillion. The median household income is $65,712, and the poverty rate is 12.3%. Currently, the employment rate has increased to 60.2%.
Within the United States, FlowEsScents primarily operates and is headquartered in Minnesota. Minnesota has an economic output in goods and services that equals $341 billion. During the COVID-19 pandemic, the state lost almost 7% of its jobs. The median household income is $74,600. However, the median household incomes for black and American Indian households are lower, with the median black family being $41,600 and the American Indian median household income being $40,100. Minnesota has a 9% poverty rate which is the lowest poverty rate the state has seen since the Great Recession of 2008 (Economy, n.d.).
The candle industry was valued at $7.5 billion in 2020 and is currently projected to reach a value of $13.38 billion by 2028 (Candle Market Size, 2019).
This industry is growing due to an increase in customer disposable incomes. With an increase in stay-at-home and remote workers, there has been an increase in decorating and creating the desired atmosphere within individuals’ homes and work areas. The demand for natural wax candles has increased over time due to natural candles having a non-carbon blackening effect and helping customers lowering their carbon footprints.
According to a 2021 Forbes article, American consumers are mildly optimistic about the economy. However, there are concerns about inflation, labor shortages, and women are concerned about possible economic opportunities in the future (Hansen, 2021b). The unemployment rate has fallen, and economists believe that wages will eventually go up once unemployment reaches pre-pandemic levels. It will more greatly increase Americans’ disposable income.
Customers within the candle industry tend to be primarily female, and this demographic is expected to drive the candle industry’s growth. 35% of candle sales occur during the Christmas/holiday season, while the other 65% happens non-seasonally (Verified Market Research, 2021). To specifically target fall and winter sales, it is essential to note that Popular fall scents amongst customers include pumpkin spice, apple, cinnamon fragrances, and winter scents, including cinnamon, vanilla, and peppermint fragrances.
E-commerce sales have increased, and characteristics other than smell have become popular. It includes personalized candles for wedding and graduation gifts and the increased popularity of candles with wooden wicks because of the cracking sounds they make when they are lit.
Political Trends
While 2020 will always be remembered as the COVID-19 year, it was also an election year within the United States, resulting in Joe Biden (D) defeating the incumbent Donald Trump (R) by 306 232. During this election period, both the House of Representatives and the Senate flipped to being majority Democrats. It was an important transition within the U.S. after months of social unrest that were only exacerbated by the pandemic.
With a Democrat-controlled government, the U.S. can expect some changes under the Biden administration. This political party seeks to promote social programs, equal opportunity, racial equality, and regulations against environmental pollution. It is excellent news for FlowEsScents as the White House has promised to set a course for social change. The social awakening within the U.S. will allow FlowEsScents to market their products in a much more socially aware environment.
One note of concern is that candles are not seen as a very polarizing product, and relationships with government officials are practically non-existent. Even with the changing environment within the U.S., FlowEsScents should not expect an inherent increase in their product alone. The company will need to leverage its black, female-owned culture to catch the wave of social change. Apart from attracting new clients through political agendas, no significant changes are expected for FlowEsScents. The increase in prices for imported goods and materials will not affect the production of wax, which has many factories in America.
Legal and Regulatory Issues
Most regulations on the Candle industry are centered around Consumer Product Safety. It primarily focuses on lead content in the candle surface coating (CFR Title 16, Part 1303) and the metal-core wicks (CFR Title 16, Part 1500.17). The remainder of the regulations is centered around standard commodity product features such as labeling and packaging (ComplianceGate, 2020). Legal and Regulatory rulings are not typical for this product segment. There does not appear to be any recent court decisions that suggest FlowEsScents would need to overhaul their marketing activities. Online privacy and the integrity and warranties of advertisements must be kept under control to avoid falling within the Federal Trade Commission’s purview.
Technical Advancements
Not much has changed in how people make candles; however, larger stores have the capacity and resources to make candles at a higher volume than a small business. Since larger stores have the resources, we must find a way to make the candles faster and promote to a market and group who we know we can captivate with our brand. There is also a company that is promoting a remote-controlled candle that does not burn wax or soot; however, it does provide a way for specific scents to be used. They promote this product as a safer way to burn candles while providing an ambiance that a regular candle provides. This product is quite expensive, so we do not foresee this as a threat to our current products.
Since candle making is such a delicate process and does not take much time to make, we do not foresee any technological changes that will affect the way that we manufacture our product. Possible technical developments can be expected in the packaging and filling the goods, creating more convenient and durable gift boxes. In addition, the seasonal product line may include gift sets with beautiful candlesticks or glass or small candle holders featured in the product. Otherwise, as mentioned above, revolutionary changes in this area are not expected.
We are seeing more people using social media platforms to promote their businesses. Since more people are looking for products online, we must dedicate a portion of our resources to the e-commerce market uniquely. Although it is difficult to sell products online without providing a scent sample, we will need to be creative and specific with the candles that we promote. More than likely, people will look for a particular scent that they are looking for. If we focus on Fall and Winter scents for the holiday and promote the products in a creative way that will attract consumers to our website, we will sell more of our product.
Although we have an Instagram account, we should look into promoting more by using the features and platforms that are being offered. With the rise of people using social media apps such as Instagram, Pinterest, TikTok, and Facebook, we have an advantage by using these apps to advertise to our future customers in a creative way (Kramer, 2019). We know that people like to be entertained and are attracted to clever marketing to use these apps to drive our brand. Using their Go-Live features and sponsorship promotion, we can attract consumers looking for homemade candles that are healthy and promote wellness. Also, we can utilize email and sponsored listings on websites such as Amazon, Google Ads, and Google Smart Campaigns. We can also use Etsy as a source to sell our products.
Candles will not go out of style. We believe that we are currently selling the correct type of product for our customer base. However, we will need to increase our capacity and product offerings if we want to attract more people. While researching a recent promotion that was being offered through Instagram, the product sold out in three days. To a new customer who wants to try the business, that may deter them from trying to purchase again. We will need to find a way to understand how these products are made, how often they are made, and the plans for growth once the product becomes more popular.
Sociocultural Trends
More people stay at home due to the pandemic, and more jobs are being switched to at-home positions. If this trend continues, we could potentially decrease in-house employees, expand online retailers, make reviews more accessible to view for consumers and improve shipping processes. There has also been a 2.6 % increase in homeownership, the most significant increase since 1965. The majority of candle consumers are women that are homeowners. With that in mind, we could potentially shift market strategies to target and promote more to homemakers.
With the recent increase in support of ethnically owned businesses, promoting and using different resources as a black-owned company would be beneficial. For example, using black-owned directories to increase promotion such as I am black business.com, Blax, and black everything. Many organizations can provide training for employees as a black-owned business, such as Coalition to back black company and Black Founders.
Candles remain a regular everyday purchase for the average American. Since the benefits of aromatherapy became more widely known, there has been an increase in candle sales. The industry is currently valued at 3.14 billion annually in the U.S. 90% of interviewed candle users say it makes their home warm and cozy (Smyth, 2021). Market trends show that the primary consumers of candles are female millennials. 83% of Millennials are environmentally conscious. If we were to market more towards the sustainability of our product and its environmental impact, we could engage more with our target audience.
Market Research
In the course of market analysis, we found several vital theses that influence the choice of candles by buyers and described them according to our case. Candle aroma has become the most critical buying criterion, as candles are most commonly purchased for home decor and stress relief (Ayers, 2021). Absolutely all customers, regardless of gender and age, who buy candles, agree that their prices are always affordable.
- However, 90% of candle buyers are women (Ayers, 2021). It is necessary to build all advertising campaigns with this factor in mind. Advertising should be aimed at women, therefore, placed in women’s magazines, in women’s social networks, which include decor, comfort, and culture of family holidays and aesthetics in the main topics.
- Technological and environmental trends in the world affect the demand for candles: first, online marketing will flourish due to the extensive use of smartphones and social networks; second, organic products such as natural wax are also gradually gaining widespread popularity (CandlesBlog, 2021). Market growth as a whole is also predicted by analysts, in connection with which large firms need to maintain their social and environmental responsibility and keep pace with the rapid growth of technology.
- Research shows that customers start looking for candles in the fall from late August, while Christmas peaks in mid-December (Google Trends, 2021). This information will be helpful in terms of planning the start of advertising campaigns and marketing events, such as sending out special offers to your regular customers by email, launching various promotions and hashtags, activating specific products on Flowesscents social networks, and creating seasonal gift sets.
Several other insights included research on which scents are more prevalent at which time of year (Smyth, 2021). However, the most important ones are listed above, also considering that most men and women think candles to be an ideal small gift for various occasions to colleagues, acquaintances, and relatives. To keep the tradition of candle gifts and decorating and decorating your home up-to-date, campaigns, atmospheric photography, gift sets, and the brand’s overall purpose must support this tradition in advertising campaigns.
Marketing Goals and Objectives
These goals are divided into two groups: autumn and festive. Each of these groups implies a period for achieving this goal and applying a marketing strategy. In FlowEsScents, there is a line of fragrances with an autumn theme, and therefore it is necessary to take this into account. Finally, during the holidays, the company’s income is the largest, and it is required to use this period to get more new regular customers. All objectives are SMART objectives.
- Fall Marketing Goal A: Increase brand awareness and digital presence.
- Objective A1: Grow total Instagram followers to 2000 by November 1st.
- Objective A2: Grow website traffic by 15% through the use of SEO by September 31st.
- Objective A3: Pay for Ad in the Atlanta Daily Journal promoting Flowesscents by October 1st.
- Fall Marketing Goal B: Promote specialty Fall products.
- Objective B1: Send 150 scent samplers to introduce customers to scents by November 1st.
- Objective B2: Post content related to Fall scents 4x per week throughout the Fall campaign.
- Objective B3: Establish partnerships with two micro-influencers to promote Fall Scents within the first 2 months of the Fall campaign.
- Holiday Marketing Goal A: Promote and launch a new Holiday Collection.
- Objective A1: Define what current scents are to be included in Holiday Collection by the first week of November.
- Objective A2: Post content twice per week teasing/detailing the new Holiday Collection throughout November and December.
- Objective A3: Host Facebook Live launch of product contents on Black Friday with discounts for ordering through Cyber Monday.
- Holiday Marketing Goal B: Grow sales and revenues.
- Objective B1: Increase Holiday season sales 15% compared to the same timeframe in 2020.
- Objective B2: Offer 10% discounts for out of season scents throughout the month of December.
- Objective B3: Sell 100 Holiday Collection bundles by EoY 2021.
- Holiday Marketing Goal C: Increase positive reviews and customer engagement.
- Objective C1: Respond to 50% of social media posts that use #FlowEsScents during Holiday Campaign.
- Objective C2: Generate 10 customer reviews on FlowEsScents.com for Holiday Collection by EoY 2021.
- Objective C3: Send personalized feedback emails to consumers two weeks after order arrives throughout the Holiday season.
It is worth noting that this plan is still approximate and may be improved in the future. Methods related to increasing digital presence include not only using SEO technology, but also buying Instagram-based ads, analyzing and analyzing the main users of certain social networks, and leading a group with relevant content identified by the audience. In addition, each post dedicated to the holidays or autumn must be accompanied by a photograph of the product or ascent from the company’s line, giving its brief description that differs from the original.
Collections of candles for the holiday must be selected taking into account the specifics and uniqueness of this new year. Smells should reflect the mood, the impression of the year, but at the same time they should not stand out strongly stylistically from each other. This goal can be achieved by styling candle packaging, releasing limited products with unique flavors, or introducing gift sets.
With the help of such products, customers will have more choice, therefore, there are more chances that the company will have new regular customers. Feedback from clients can be obtained using an email questionnaire, which should be unobtrusive and not take a lot of client’s time. Customers who order candles can also gift a limited-time discount so that they can enjoy the Flowesscents fragrances again or recommend them to their friends during the rest of the holiday season.
Payment for advertising in magazines and newspapers is aimed at the main audience of consumers of these products: middle-aged women. The culture of reading the press remains with the older generation, while the younger generation needs to be captured through social media and online advertising. Year-round advertisements in magazines will not pay off because candles are a seasonal commodity and do not imply active everyday use. The intensification of advertising campaigns in the season not only allows Flowesscents to remind of themselves but also to impose the struggle on competitors, who are also significant players in the market.
These goals and objectives will help the company, in addition to the main and obvious tasks, to sell its products in certain periods, to improve brand awareness and income – to get closer to customers and get the opportunity to expand its line of products and fragrances. Customers will have more choice and will also be able to get to know the full line of flavors of the company, which are not fully represented in regular stores. More loyal customers will be more involved in the company’s life, helping to develop their marketing campaigns: post hashtags, create activity on social media, and support holiday promotions.
The company itself gains recognition in the very season of candle sales, and in order to consolidate the success of development, it is necessary to make this practice an annual Regular customers will know that during certain periods the company launches discounts and other interesting programs to which you can join. The development of digital presence ideas may include various actions to decorate their own homes, corners, and yards with candles, followed by a post with a photo on social networks. It is possible to draw prizes among the winners. The use of technology for marketing today is vital for any company, providing a huge array of opportunities for advertising, business development and mutual benefit for both the company and the customers.
References
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Hansen, S. (2021b). Labor Shortage Will Push Wages Higher, According to Bank Of America. Forbes. Web.
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