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时间：2024-05-22
MKTG 3110 Digital Marketing
Group Project Part 1 'Product Background Report'
SID: 520271089; 510054382; 520037614; 520016354; 520275009; 530215699
1
Table of Content
Background Information............................................................................................................ 3
Mission Statement...................................................................................................................... 4
Background Analysis................................................................................................................. 5
Competitor Analysis...................................................................................................................8
The Brand.................................................................................................................................10
Target Market........................................................................................................................... 13
Customer Journey.....................................................................................................................16
References................................................................................................................................ 19
2
Background Information
This report aims to demonstrate a detailed digital strategy of Lyadh. Lyadh is an Australian
start-up company primarily focusing on producing and selling fragrance candles with
stress-release functions. However, it mainly relies upon the digital channel to market the
products both locally and globally. Firstly, this report clarifies some essential information
about Lyadh, the mission of aiming to provide high-quality aromatherapy candles that
promote letup feelings and well-being, assist customers in removing stress, and position as a
stress-relief product. Moreover, the objective of Lyadh is to grow its profits by around 10%
annually.
Furthermore, in essence, the ‘RACE model’ offers Lyadh Candle a structured approach to
accomplishing its brand objectives: In the initial phase of "Reach," the focus lies on
broadening the brand's reach through a blend of paid, owned, and earned media platforms,
with the aim of strengthening brand visibility and credibility. Moving on to the "Action"
stage, efforts are directed towards stimulating interactions, attracting subscribers, and
generating leads. This involves the creation of compelling content and the organization of
offline events to engage prospective customers. Subsequently, in the "Conversion" phase, the
emphasis shifts towards optimizing online platforms, strategically expanding offline
operations, and delivering personalized sales assistance to drive both online and offline sales
effectively. Finally, during the "Engagement" period, the priority is on fostering enduring
relationships with customers, promoting repeat purchases, and cultivating brand loyalty
through initiatives like loyalty programs, customized communication, and sustained social
media engagement. In addition, the PESTLE and Porter’s five forces have been adopted to
analyse macro and micro-environments respectively, in order to comprehensively familiarise
ourselves with the current stage and formulate proper strategies. Nevertheless, according to
the competitor’s analysis for Lyadh, that could be categorized into two types, the first type is
such existing brands with direct competitiveness as Diptyque and Jo Malone London, and
several indirect competitors, the Aesop and Swisse that contain stress-relieves ingredients
with the same function as Lyadh. Moreover, the other type is related to some emerging
competitors, the personal studio candle maker (Scented Australia) that could provide DIY
service. In terms of the customer aspect, the customer journey provided in the last parts of
this report clearly outlines the various touchpoints and interactions a customer experiences
3
when interacting with Lyadh, therefore, representing the complete journey from the initial
awareness stage through to the purchase decision and post-purchase support.
Mission Statement
Brand positioning
The company used the name Lyadh, the brand name because it means lazy, comfortable
feeling in Bengali. It is exactly the same idea as brand massion, which is hoping that candles
are a way to heal people and help people relieve stress. Lyadh candles focus on aromatherapy
and use a number of plants. These calming scents can help trigger the brain's relaxation
response, reducing stress and promoting calm and a sense of well-being (Sattayakhom et al.,
2023). Currently, Lyadh has established a solid presence in the market with a loyal customer
base and a reputation for quality and reliability. However, there is still room for growth and
expansion, especially in terms of continuing to deliver value to new and existing customers
and maintaining brand popularity.
Brand objectives
Therefore, the goal of the Lyadh brand is divided into the following points: First, the profit to
increase by 10% compared with the previous year. Second, in terms of service, companies
need to continuously provide product value and increase benefits to consumers, such as
providing free samples and offering discounts in some festivals. Thirdly is Sizzle, which
means that the brand always keeps the brand hot, always keeps the market active and at the
forefront in the market.
How do we get there?
Brand goals can use the ‘RACE model’. Firstly, is Reach-grow brand audience, to expand
Lyadh Candle's audience need marketing strategy that combines paid, owned, and free media
is critical. Through paid media channels, such as social media advertising and sponsored
content placement, this can increase reach to new audiences who may be interested in their
products. In addition, owned media platforms, including the company's website, blog and
social media profiles, provide opportunities to engage with existing customers. Finally, the
media gained, such as positive reviews, word-of-mouth testimonials and media coverage, can
4
further expand Candle's brand awareness and credibility. In the "action" phase of the ‘RACE
model’, the focus is on fostering interactions, gaining subscribers, and generating leads. This
includes interactive content, creating engaging interactive content such as quizzes related to
candle use or relaxation techniques to attract more subscribers and potential customers.
Moreover, Lyadh can regularly hold offline events such as pop up sales to attract subscribers
who are interested in learning more about candle products and brand concepts. In the
"conversion" phase, Lyadh Candle focuses on optimizing its e-commerce platform,
strategically expanding its offline business, and providing personalized sales support to
effectively drive online and offline sales. During the "engagement" phase, Lyadh Candle
nurtures customer relationships and encourages repeat customers. Cultivate brand loyalty and
motivate customers to come back through loyalty programs, personalized communication and
post-purchase follow-up. By soliciting feedback, offering exclusive benefits, and maintaining
ongoing engagement through social media, make customers feel valued, established and
encouraged repeat purchases.
Background Analysis
Micro- and macro-environmental analyses provide enterprises with comprehensive market
understanding and strategic guidance.
Microenvironment
● Customer
For the aromatherapy candle, female millennials are the main customer group, occupying the
most of market share. For this group, they are increasingly aware about self-care and mental
well-being. More and more female millennials are ordering online and spending more time at
home looking for entertainment (Clare Gamble, Maree Bava & Wohlers, 2010). For
customers, emotional benefits are more important than functional benefits when it comes to
the product. Therefore, they are not very sensitive to price as long as the products can
enhance their emotional wellbeing. As a result, their bargaining power is not high.
● Competitors
Bath & Body Works Direct, Inc., Better Homes & Gardens and Bridgewater Candle
Company are the three major players in the market (Grand View Research, 2023) which are
5
the direct competitors of the company. Apart from them, there are a number of indirect
competitors that can substitute this product. For instance, essential oil diffusers, which are
used to create an aromatic experience similar to that of scented candles by allowing essential
oils to diffuse into the air.
● Suppliers
Reliability and sustainability are major concerns for our product and we can choose
Australian Wax Company as a supplier, which offers a wide range of candle materials and is
known for environmentally friendly products and sustainable practices (Australian Wax
Company, n.d.).
● Distributors
Lyadh can expand its sales channels by distributing into Mecca and utilising the traffic and
customer base of Mecca's website and brick-and-mortar shops to make consumers aware of
and purchase the product.
Macro-environment
● Technology Force
It is vital that businesses follow new digital trends and technology. One of the technological
changes affecting marketing opportunities is digital security technology, the data show
ransomware increased 6,000% from 2015 to 2016 (IntegrateIT Australia, 2022). Therefore
businesses can use firewalls to protect the network and increase the digital security of the
network. Also, technology convergence and social location based marketing via mobile
phones is a marketing strategy that utilises mobile technology and social media. For example,
setting up QR Codes and using this in product packaging or adverts to direct consumers to
scan and get more information or participate in interactive activities to increase brand
exposure and user engagement.
● Economic Force
Consumers' focus on personal safety and health after Covid-19 and the recovering economy
have influenced consumer behaviour, increasing the demand and purchasing power for
scented candles. Economic growth affects the market growth of the candle industry. It is
6
expected to grow at a compound annual growth rate (CAGR) of 4.1% from 2023 to 2030
(Grand View Research 2023). The growth of the economy and consumer demand is a positive
impact for companies in digital marketing.
● Legal Force
Lyadh business uses digital marketing in order to display information about Lyadh Candle's
products. Therefore the company must comply with laws and regulations relating to online
marketing and sales. According to Australian Consumer Law, products will provide relevant
proof that they will not make false or misleading statements on the sales platform, and unfair
contracts (NSW Fair Trading, 2023) to protect consumer rights. In addition, the product will
comply with the Australian Association of National Advertisers (AANA) (NSW Fair
Trading, 2023) when advertising as well as video promotion which promotes the integrity of
the product's advertising.
Current Digital Trends
With the rapid development of the internet, lots of people choose to use online channels to
make purchases. This trend is especially significant for young people. Also, social media is
the main marketing channel for companies in this industry.
Also, an increasing number of customers would like to get desirable experience through
rapidly developed technologies, such as AR, VR (Mascarenhas, Kesavan & Bernacchi, 2006).
As a result, lots of companies enhance the construction of store experience through the
technologies.
Competitor Analysis
By understanding this competitor you can gain insight into the current state of the market as
well as potential future trends. This in turn enables brands to adjust their strategies and
resource allocations accordingly, so this brand report provides an in-depth analysis of existing
and emerging competitors in the current stress reduction product market.
7
Current Competitors Analysis
● Stress relieving candle (Diptyque)
As people's awareness of their health continues to increase, the remarkable effect of
aromatherapy in reducing stress has become a popular and frequently purchased product.
According to the report, the global scented candle market share will rise from $3.91 billion in
2023 to $4.14 billion in 2024, with a compound annual growth rate (CAGR) of 6% ("Scented
Candle Global Market Report" 2024). For example, the decompression candle brand
Diptyque, holds a considerable market share. As a mature luxury brand, Diptyque offers
exquisite products, introducing new scents annually to keep consumers engaged. However,
despite offering stress-reducing candles, Diptyque's brand image primarily revolves around
creating a refined atmosphere rather than specifically reducing stress. This limited focus on
stress relief has provided Lyadh with an opportunity to position itself as a specialist brand
dedicated exclusively to stress relief.
● Products with stress-relieving ingredients
The range of products aimed at relieving people's stress has also grown in response to
increased demand, including essential oils, bath balls, and sprays. The market competition is
fierce. Consumer preferences are also gradually shifting towards natural purity and
sustainability, which is driving the demand for products using organic ingredients. As a
result, many brands cater to consumers seeking natural benefits through ingredients and
packaging when creating stress-relief products. For example, Aesop, a high-end Australian
cosmetics brand, produces essential oils composed of natural plant extracts known for their
calming and soothing properties. Aesop's brand recognition and reputation compete in the
market as the brand's greatest advantage. However, for consumers with sensitive skin, Lyadh
candles and skin contact rarely rely on the spread of plant aromas to play a role, which
reduces the concerns of consumers with sensitive skin. It also contributes to Lyadh’s
competitiveness and success.
8
Emerging competitor
● Emerging brand of decompression candles
Among the emerging brands, personal studio candle brands leverage their appealing social
media presence, niche market focus, storytelling, and direct-to-consumer model to pose a
strong competitive threat to Lyadh's stress-reducing candles. Personal studio brand Sent, for
example, has 25,000 followers on Instagram and connects directly with consumers for
personal customization. It advertises Sent as Australia's first custom fragrance service. It
promises to use the eco-friendly material soybean as its base, and every time it completes an
order, Sent will help plant a tree. However, its limited brand recognition and distribution pose
a challenge to attracting a wider audience. Lyadh can leverage the benefits of a successful
solo studio to assist with a successful internet marketing campaign, providing Lyadh with the
opportunity to leverage its broader market reach and brand awareness.
● A well-known brand that launches stress-reduction products
When companies with a certain amount of capital accumulation launch decompression
products, they have enough money to advertise and innovate, making them a strong
competitor in the decompression product market. Like Jo Malone London, which is owned by
the Estee Lauder Companies, the existing brand equity gives them an advantage. However,
while their existing brand equity may provide a competitive advantage, there is a potential
risk of diluting their core brand image by expanding into stress-reducing products. For Lyadh,
it's possible to stand out in the market by focusing on stress-reducing candles. Lyadh can
build a strong and cohesive brand image around the concept of stress relief.
The Brand
Product development
The product our team selected is Lyadh. It is a scented candle that can relieve stress and
anxiety to a certain extent. The following report will focus on the product design and
development process, product marketing strategy, competitor analysis, customer analysis and
so on.
In the product research and development process, we follow the people-centric, especially
customer-centric principle, putting customer needs first. First of all, appearance design plays
9
an important role in product marketing. Visual impact and attraction can make customers
notice Lyadh more easily. Therefore, in terms of color matching, Lyadh uses green as the
main color for its outer packaging. According to research, “green is in the center of the
spectrum and can promote a sense of peace” (HomeAdvisor, 2021). As one of the most
comforting colors, green can help customers dispel anxiety and stress and stay calm. The
appearance of Lyadh is not obviously different from the scented candles currently on the
market. As shown in Figure 1, only made some small improvements. Lyadh has a lid to the
bottle, which is more convenient for customers to take it when going out.
Figure 1
Logo and Product Design
Note. The design of LYADH logo and product. Own work.
Lyadh’s technical development mainly involves candle making materials and ingredients.
Some of the main raw materials for Lyadh products come from N-essentials, a large natural
raw material supplier in Melbourne, which can help us save production costs while ensuring
10
that the raw materials are of high quality (Natural Therapy Pages, n.d.). During the research
and development stage, Lyadh also focused on researching how to add soothing medicinal
ingredients into candles. As shown in Figure 2, in our current product line, there are two
main products containing different pharmaceutical supplement ingredients, namely
Cedarwood and Lemon bal (i.e. Melissa Officinalis). We also use different colors to
distinguish the packaging design. Research shows that the cedrol component contained in
Cedarwood has a sedative effect (Kagawa et. al, 2003), and the active compounds such as
flavonoids, phenolic acids and tannins contained in Melissa Officinalis shown in Figure 3 are
helpful. Helps people relax and stay calm (Petrisor, 2022). These safe and effective natural
ingredients are also a major competitiveness of Lyadh products compared with similar
products.
Figure 2
The composition of Melissa officinalis and its pharmacological effects
Pricing Stategy
Lyadh adopts market value pricing strategy, which is to price our products after
understanding the customer's perception of this type of product and the acceptable price
range. The current average price of similar products in the target market is also our reference.
Lyadh takes the high-end aromatherapy route, it not only has safe ingredients and
high-quality raw materials but can also be customized according to consumers' preferences
11
and needs, so the price is slightly higher than similar products. According to our survey, the
price of high-end brand scented candles on shopping websites is usually in the range of
100-150$, such as Diptyque, Jo Malone and so on. Therefore, the final price of Lyadh is
about 145$. In addition, if you go to the store to refill the used aromatherapy bottle with wax
using the empty bottle, the price is 30% off the original price. In terms of product promotion,
we regularly carry out some promotional activities, such as full discounts or buy two get one
free, etc. Especially when large-scale festivals are approaching, some products will be
selected for promotion, and the discounts will be greater. In terms of payment methods,
Lyadh accepts credit cards, debit cards, Alipay and other diverse payment methods to meet
the consumption habits of different consumers. Convenient payment methods and preferential
prices can also help brands attract more partners and promote multi-channel sales of products.
Target Market
Target Market Selection and Justification
The choice of a brand's target market is very important for the development of the brand
because it will directly affect the brand's research and development direction, positioning in
the market and the formulation of subsequent marketing strategies. The target market of our
products is divided according to demographics, mainly focusing on the younger generation,
especially adults over 20 years old who have entered the workplace, because their income
levels will generally be more stable. You will also encounter more pressure in the workplace.
Reports show that “Generation Z is the most anxious of all generations about work-related
issues. About 68% of Generation Z or younger Millennials report feeling stressed”
(Weinstein, 2023). And with the development of this social economy, people are paying more
and more attention to the comfort of life, and are more willing to pay to improve the comfort
of life.
12
Figure 3
2023 Gen-Z Report
Personas
1. Susan, age 36, is a senior corporate lawyer working in a prestigious law firm. Emily aims
to climb the ranks and become a partner in the next few years. Her motivations are grounded
in achieving prestige, ensuring security, and maintaining order both in her professional and
personal life. After tackling high-stakes cases, Susan looks for ways to unwind and relax.
Figure 4
The first persona
Note. Own Work.
2. Emma is a freelance graphic designer and illustrator living in Sydney. Married and a
mother to an energetic toddler. Her home doubles as a studio, where she brings imaginative
13
worlds to life. Her goal is to nurture her child's creativity while cultivating her career and
maintaining a tidy home environment. She looks for stress-relieving solutions that can be
integrated into her busy life.
Figure 5
The second persona
Note. Own Work.
3. Daniel, aged 32, is a software developer. He's engaged to his college sweetheart and is
creating a harmonious home life as they plan their future together. He often works long hours
on his app idea, but he knows he needs to take breaks. In his free time, Daniel and his fiancée
explore local craft fairs, looking for sustainable products. As he continues to navigate the tech
industry, he relies on these small practices to inspire his next innovation.
Figure 6
The third persona
14
Note. Own Work.
Customer Journey
The customer journey outlines the path a customer takes to discover, evaluate, purchase and
use a product and builds a relationship between them and our brand. It can be particularly
effective in marketing automation, where it provides a framework for understanding customer
behavior (Metsola, 2018).
1. Susan hears the ad on a podcast. She goes to the company's website to learn more. She
reads reviews that make her want the candle. As she makes her decision, she is attracted by a
good deal and the brand’s clear return policy, making her feel secure. At the checkout, Susan
has a simple experience, which makes her feel good about the brand. In the post-purchase
stage, the brand keeps in touch with her by email and offers her a loyalty programme with
exclusive benefits.
Figure 7
Customer Journey One
Note. Own Work.
15
2. Emma buys a stress-reducing scented candle after discovering it in a boutique. She is first
attracted by the store's appearance and then buys it after learning more about it. Emma
chooses a candle that meets her needs and buys it, encouraged by a discount and a
satisfaction guarantee.When she brings the candle home, she is pleased with the scent and
packaging. However, she is concerned about the candle's longevity and cost-effectiveness.
The store's follow-up contact addresses her concerns, leading to her becoming a repeat
customer.
Figure 8
Customer Journey Two
Note. Own Work.
3. Daniel Martinez reads a blog post about aromatherapy and buys a scented candle. He looks
at different brands and chooses one with good reviews. After finding a brand that uses data to
create their scents, Daniel buys a candle bundle. He buys it because of a discount and a clear
return policy.When he gets the candles, he is impressed with the quality, packaging, and the
immediate relaxation they provide. The brand keeps in touch with him, giving tips on how to
look after the candles and offering a refill service. Finally, he decides to subscribe to a
monthly service and become a loyal customer because its products are good for the
environment.
16
Figure 9
Customer Journey Three
Note. Own Work.
17
References:
Apsorn Sattayakhom, Sineewanlaya Wichit, & Phanit Koomhin. (2023). The Effects of
Essential Oils on the Nervous System: A Scoping Review. Molecules, 28(9),
3771–3771. https://doi.org/10.3390/molecules28093771
Australian Wax Company( n.d.). Raw materials.
https://www.australianwaxco.com.au/raw-materials
Clare Gamble, J., Maree Bava, C. & Wohlers, M. (2010), "Mood foods: working mothers '
receptiveness to food with stress-relief properties", British Food Journal, Vol. 112
No. 3, pp. 217-233. https://doi.org/10.1108/00070701011029101
Grand View Research (2023). Candle Market Size, Share & Trends Analysis Report By
Product. Grand View Research website. retrieved 19th April 2024, from
https://www.grandviewresearch.com/industry-analysis/candles-market
HomeAdvisor. (2021, January 20). 6 Calming Colors to Reduce Stress in the Home.
https://www.homeadvisor.com/r/calming-colors/
Integrate IT Australia (2022). Cybersecurity and Network Security Services.
https://integrate-it.com.au/cybersecurity-and-network-security-services/?gad_source
=1&gclid=CjwKCAjwrIixBhBbEiwACEqDJe71IFKTU3me3fkLDS48E75tgHWM
T4eUx7hstWpJLNgj_7BDIjpybRoCZZIQAvD_BwE
Kagawa, D., Jokura, H., Ochiai, R., Tokimitsu, I., & Tsubone, H. (2003). The sedative effects
and mechanism of action of cedrol inhalation with behavioral pharmacological
evaluation. Planta medica, 69(7), 637–641. https://doi.org/10.1055/s-2003-41114
Mascarenhas, O.A., Kesavan, R. & Bernacchi, M. (2006), "Lasting customer loyalty: a total
customer experience approach", Journal of Consumer Marketing, Vol. 23 No. 7, pp.
397-405. https://doi.org/10.1108/07363760610712939
18
Metsola, T. (2018). A framework for understanding the usage of the customer journey in
marketing automation . Business, Engineering.
Natural Therapy Pages. (n.d.). Natural Skincare & Personal Care Products Supplier.
https://www.naturaltherapypages.com.au/connect/n-essentials/skincare-personal-care/product
s-supplier-distributor
NSWFairTrading (2023). Advertising standards and the law.
https://www.fairtrading.nsw.gov.au/buying-products-and-services/advertising-and-pr
icing/advertising-standards-and-the-law
Petrisor, G., Motelica, L., Craciun, L. N., Oprea, O. C., Ficai, D., & Ficai, A. (2022). Melissa
officinalis: Composition, Pharmacological Effects and Derived Release Systems-A
Review. International journal of molecular sciences, 23(7), 3591.
https://doi.org/10.3390/ijms23073591
The Business Research Company. Scented Candle Global Market Report 2024.2024.
Weinstein, M. (2023). How Do We Relieve Gen Z’s Workplace Stress?. Training Day Blog.
https://trainingmag.com/how-do-we-relieve-gen-zs-workplace-stress/
19
Group Project Part 1 'Product Background Report'
SID: 520271089; 510054382; 520037614; 520016354; 520275009; 530215699
1
Table of Content
Background Information............................................................................................................ 3
Mission Statement...................................................................................................................... 4
Background Analysis................................................................................................................. 5
Competitor Analysis...................................................................................................................8
The Brand.................................................................................................................................10
Target Market........................................................................................................................... 13
Customer Journey.....................................................................................................................16
References................................................................................................................................ 19
2
Background Information
This report aims to demonstrate a detailed digital strategy of Lyadh. Lyadh is an Australian
start-up company primarily focusing on producing and selling fragrance candles with
stress-release functions. However, it mainly relies upon the digital channel to market the
products both locally and globally. Firstly, this report clarifies some essential information
about Lyadh, the mission of aiming to provide high-quality aromatherapy candles that
promote letup feelings and well-being, assist customers in removing stress, and position as a
stress-relief product. Moreover, the objective of Lyadh is to grow its profits by around 10%
annually.
Furthermore, in essence, the ‘RACE model’ offers Lyadh Candle a structured approach to
accomplishing its brand objectives: In the initial phase of "Reach," the focus lies on
broadening the brand's reach through a blend of paid, owned, and earned media platforms,
with the aim of strengthening brand visibility and credibility. Moving on to the "Action"
stage, efforts are directed towards stimulating interactions, attracting subscribers, and
generating leads. This involves the creation of compelling content and the organization of
offline events to engage prospective customers. Subsequently, in the "Conversion" phase, the
emphasis shifts towards optimizing online platforms, strategically expanding offline
operations, and delivering personalized sales assistance to drive both online and offline sales
effectively. Finally, during the "Engagement" period, the priority is on fostering enduring
relationships with customers, promoting repeat purchases, and cultivating brand loyalty
through initiatives like loyalty programs, customized communication, and sustained social
media engagement. In addition, the PESTLE and Porter’s five forces have been adopted to
analyse macro and micro-environments respectively, in order to comprehensively familiarise
ourselves with the current stage and formulate proper strategies. Nevertheless, according to
the competitor’s analysis for Lyadh, that could be categorized into two types, the first type is
such existing brands with direct competitiveness as Diptyque and Jo Malone London, and
several indirect competitors, the Aesop and Swisse that contain stress-relieves ingredients
with the same function as Lyadh. Moreover, the other type is related to some emerging
competitors, the personal studio candle maker (Scented Australia) that could provide DIY
service. In terms of the customer aspect, the customer journey provided in the last parts of
this report clearly outlines the various touchpoints and interactions a customer experiences
3
when interacting with Lyadh, therefore, representing the complete journey from the initial
awareness stage through to the purchase decision and post-purchase support.
Mission Statement
Brand positioning
The company used the name Lyadh, the brand name because it means lazy, comfortable
feeling in Bengali. It is exactly the same idea as brand massion, which is hoping that candles
are a way to heal people and help people relieve stress. Lyadh candles focus on aromatherapy
and use a number of plants. These calming scents can help trigger the brain's relaxation
response, reducing stress and promoting calm and a sense of well-being (Sattayakhom et al.,
2023). Currently, Lyadh has established a solid presence in the market with a loyal customer
base and a reputation for quality and reliability. However, there is still room for growth and
expansion, especially in terms of continuing to deliver value to new and existing customers
and maintaining brand popularity.
Brand objectives
Therefore, the goal of the Lyadh brand is divided into the following points: First, the profit to
increase by 10% compared with the previous year. Second, in terms of service, companies
need to continuously provide product value and increase benefits to consumers, such as
providing free samples and offering discounts in some festivals. Thirdly is Sizzle, which
means that the brand always keeps the brand hot, always keeps the market active and at the
forefront in the market.
How do we get there?
Brand goals can use the ‘RACE model’. Firstly, is Reach-grow brand audience, to expand
Lyadh Candle's audience need marketing strategy that combines paid, owned, and free media
is critical. Through paid media channels, such as social media advertising and sponsored
content placement, this can increase reach to new audiences who may be interested in their
products. In addition, owned media platforms, including the company's website, blog and
social media profiles, provide opportunities to engage with existing customers. Finally, the
media gained, such as positive reviews, word-of-mouth testimonials and media coverage, can
4
further expand Candle's brand awareness and credibility. In the "action" phase of the ‘RACE
model’, the focus is on fostering interactions, gaining subscribers, and generating leads. This
includes interactive content, creating engaging interactive content such as quizzes related to
candle use or relaxation techniques to attract more subscribers and potential customers.
Moreover, Lyadh can regularly hold offline events such as pop up sales to attract subscribers
who are interested in learning more about candle products and brand concepts. In the
"conversion" phase, Lyadh Candle focuses on optimizing its e-commerce platform,
strategically expanding its offline business, and providing personalized sales support to
effectively drive online and offline sales. During the "engagement" phase, Lyadh Candle
nurtures customer relationships and encourages repeat customers. Cultivate brand loyalty and
motivate customers to come back through loyalty programs, personalized communication and
post-purchase follow-up. By soliciting feedback, offering exclusive benefits, and maintaining
ongoing engagement through social media, make customers feel valued, established and
encouraged repeat purchases.
Background Analysis
Micro- and macro-environmental analyses provide enterprises with comprehensive market
understanding and strategic guidance.
Microenvironment
● Customer
For the aromatherapy candle, female millennials are the main customer group, occupying the
most of market share. For this group, they are increasingly aware about self-care and mental
well-being. More and more female millennials are ordering online and spending more time at
home looking for entertainment (Clare Gamble, Maree Bava & Wohlers, 2010). For
customers, emotional benefits are more important than functional benefits when it comes to
the product. Therefore, they are not very sensitive to price as long as the products can
enhance their emotional wellbeing. As a result, their bargaining power is not high.
● Competitors
Bath & Body Works Direct, Inc., Better Homes & Gardens and Bridgewater Candle
Company are the three major players in the market (Grand View Research, 2023) which are
5
the direct competitors of the company. Apart from them, there are a number of indirect
competitors that can substitute this product. For instance, essential oil diffusers, which are
used to create an aromatic experience similar to that of scented candles by allowing essential
oils to diffuse into the air.
● Suppliers
Reliability and sustainability are major concerns for our product and we can choose
Australian Wax Company as a supplier, which offers a wide range of candle materials and is
known for environmentally friendly products and sustainable practices (Australian Wax
Company, n.d.).
● Distributors
Lyadh can expand its sales channels by distributing into Mecca and utilising the traffic and
customer base of Mecca's website and brick-and-mortar shops to make consumers aware of
and purchase the product.
Macro-environment
● Technology Force
It is vital that businesses follow new digital trends and technology. One of the technological
changes affecting marketing opportunities is digital security technology, the data show
ransomware increased 6,000% from 2015 to 2016 (IntegrateIT Australia, 2022). Therefore
businesses can use firewalls to protect the network and increase the digital security of the
network. Also, technology convergence and social location based marketing via mobile
phones is a marketing strategy that utilises mobile technology and social media. For example,
setting up QR Codes and using this in product packaging or adverts to direct consumers to
scan and get more information or participate in interactive activities to increase brand
exposure and user engagement.
● Economic Force
Consumers' focus on personal safety and health after Covid-19 and the recovering economy
have influenced consumer behaviour, increasing the demand and purchasing power for
scented candles. Economic growth affects the market growth of the candle industry. It is
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expected to grow at a compound annual growth rate (CAGR) of 4.1% from 2023 to 2030
(Grand View Research 2023). The growth of the economy and consumer demand is a positive
impact for companies in digital marketing.
● Legal Force
Lyadh business uses digital marketing in order to display information about Lyadh Candle's
products. Therefore the company must comply with laws and regulations relating to online
marketing and sales. According to Australian Consumer Law, products will provide relevant
proof that they will not make false or misleading statements on the sales platform, and unfair
contracts (NSW Fair Trading, 2023) to protect consumer rights. In addition, the product will
comply with the Australian Association of National Advertisers (AANA) (NSW Fair
Trading, 2023) when advertising as well as video promotion which promotes the integrity of
the product's advertising.
Current Digital Trends
With the rapid development of the internet, lots of people choose to use online channels to
make purchases. This trend is especially significant for young people. Also, social media is
the main marketing channel for companies in this industry.
Also, an increasing number of customers would like to get desirable experience through
rapidly developed technologies, such as AR, VR (Mascarenhas, Kesavan & Bernacchi, 2006).
As a result, lots of companies enhance the construction of store experience through the
technologies.
Competitor Analysis
By understanding this competitor you can gain insight into the current state of the market as
well as potential future trends. This in turn enables brands to adjust their strategies and
resource allocations accordingly, so this brand report provides an in-depth analysis of existing
and emerging competitors in the current stress reduction product market.
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Current Competitors Analysis
● Stress relieving candle (Diptyque)
As people's awareness of their health continues to increase, the remarkable effect of
aromatherapy in reducing stress has become a popular and frequently purchased product.
According to the report, the global scented candle market share will rise from $3.91 billion in
2023 to $4.14 billion in 2024, with a compound annual growth rate (CAGR) of 6% ("Scented
Candle Global Market Report" 2024). For example, the decompression candle brand
Diptyque, holds a considerable market share. As a mature luxury brand, Diptyque offers
exquisite products, introducing new scents annually to keep consumers engaged. However,
despite offering stress-reducing candles, Diptyque's brand image primarily revolves around
creating a refined atmosphere rather than specifically reducing stress. This limited focus on
stress relief has provided Lyadh with an opportunity to position itself as a specialist brand
dedicated exclusively to stress relief.
● Products with stress-relieving ingredients
The range of products aimed at relieving people's stress has also grown in response to
increased demand, including essential oils, bath balls, and sprays. The market competition is
fierce. Consumer preferences are also gradually shifting towards natural purity and
sustainability, which is driving the demand for products using organic ingredients. As a
result, many brands cater to consumers seeking natural benefits through ingredients and
packaging when creating stress-relief products. For example, Aesop, a high-end Australian
cosmetics brand, produces essential oils composed of natural plant extracts known for their
calming and soothing properties. Aesop's brand recognition and reputation compete in the
market as the brand's greatest advantage. However, for consumers with sensitive skin, Lyadh
candles and skin contact rarely rely on the spread of plant aromas to play a role, which
reduces the concerns of consumers with sensitive skin. It also contributes to Lyadh’s
competitiveness and success.
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Emerging competitor
● Emerging brand of decompression candles
Among the emerging brands, personal studio candle brands leverage their appealing social
media presence, niche market focus, storytelling, and direct-to-consumer model to pose a
strong competitive threat to Lyadh's stress-reducing candles. Personal studio brand Sent, for
example, has 25,000 followers on Instagram and connects directly with consumers for
personal customization. It advertises Sent as Australia's first custom fragrance service. It
promises to use the eco-friendly material soybean as its base, and every time it completes an
order, Sent will help plant a tree. However, its limited brand recognition and distribution pose
a challenge to attracting a wider audience. Lyadh can leverage the benefits of a successful
solo studio to assist with a successful internet marketing campaign, providing Lyadh with the
opportunity to leverage its broader market reach and brand awareness.
● A well-known brand that launches stress-reduction products
When companies with a certain amount of capital accumulation launch decompression
products, they have enough money to advertise and innovate, making them a strong
competitor in the decompression product market. Like Jo Malone London, which is owned by
the Estee Lauder Companies, the existing brand equity gives them an advantage. However,
while their existing brand equity may provide a competitive advantage, there is a potential
risk of diluting their core brand image by expanding into stress-reducing products. For Lyadh,
it's possible to stand out in the market by focusing on stress-reducing candles. Lyadh can
build a strong and cohesive brand image around the concept of stress relief.
The Brand
Product development
The product our team selected is Lyadh. It is a scented candle that can relieve stress and
anxiety to a certain extent. The following report will focus on the product design and
development process, product marketing strategy, competitor analysis, customer analysis and
so on.
In the product research and development process, we follow the people-centric, especially
customer-centric principle, putting customer needs first. First of all, appearance design plays
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an important role in product marketing. Visual impact and attraction can make customers
notice Lyadh more easily. Therefore, in terms of color matching, Lyadh uses green as the
main color for its outer packaging. According to research, “green is in the center of the
spectrum and can promote a sense of peace” (HomeAdvisor, 2021). As one of the most
comforting colors, green can help customers dispel anxiety and stress and stay calm. The
appearance of Lyadh is not obviously different from the scented candles currently on the
market. As shown in Figure 1, only made some small improvements. Lyadh has a lid to the
bottle, which is more convenient for customers to take it when going out.
Figure 1
Logo and Product Design
Note. The design of LYADH logo and product. Own work.
Lyadh’s technical development mainly involves candle making materials and ingredients.
Some of the main raw materials for Lyadh products come from N-essentials, a large natural
raw material supplier in Melbourne, which can help us save production costs while ensuring
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that the raw materials are of high quality (Natural Therapy Pages, n.d.). During the research
and development stage, Lyadh also focused on researching how to add soothing medicinal
ingredients into candles. As shown in Figure 2, in our current product line, there are two
main products containing different pharmaceutical supplement ingredients, namely
Cedarwood and Lemon bal (i.e. Melissa Officinalis). We also use different colors to
distinguish the packaging design. Research shows that the cedrol component contained in
Cedarwood has a sedative effect (Kagawa et. al, 2003), and the active compounds such as
flavonoids, phenolic acids and tannins contained in Melissa Officinalis shown in Figure 3 are
helpful. Helps people relax and stay calm (Petrisor, 2022). These safe and effective natural
ingredients are also a major competitiveness of Lyadh products compared with similar
products.
Figure 2
The composition of Melissa officinalis and its pharmacological effects
Pricing Stategy
Lyadh adopts market value pricing strategy, which is to price our products after
understanding the customer's perception of this type of product and the acceptable price
range. The current average price of similar products in the target market is also our reference.
Lyadh takes the high-end aromatherapy route, it not only has safe ingredients and
high-quality raw materials but can also be customized according to consumers' preferences
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and needs, so the price is slightly higher than similar products. According to our survey, the
price of high-end brand scented candles on shopping websites is usually in the range of
100-150$, such as Diptyque, Jo Malone and so on. Therefore, the final price of Lyadh is
about 145$. In addition, if you go to the store to refill the used aromatherapy bottle with wax
using the empty bottle, the price is 30% off the original price. In terms of product promotion,
we regularly carry out some promotional activities, such as full discounts or buy two get one
free, etc. Especially when large-scale festivals are approaching, some products will be
selected for promotion, and the discounts will be greater. In terms of payment methods,
Lyadh accepts credit cards, debit cards, Alipay and other diverse payment methods to meet
the consumption habits of different consumers. Convenient payment methods and preferential
prices can also help brands attract more partners and promote multi-channel sales of products.
Target Market
Target Market Selection and Justification
The choice of a brand's target market is very important for the development of the brand
because it will directly affect the brand's research and development direction, positioning in
the market and the formulation of subsequent marketing strategies. The target market of our
products is divided according to demographics, mainly focusing on the younger generation,
especially adults over 20 years old who have entered the workplace, because their income
levels will generally be more stable. You will also encounter more pressure in the workplace.
Reports show that “Generation Z is the most anxious of all generations about work-related
issues. About 68% of Generation Z or younger Millennials report feeling stressed”
(Weinstein, 2023). And with the development of this social economy, people are paying more
and more attention to the comfort of life, and are more willing to pay to improve the comfort
of life.
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Figure 3
2023 Gen-Z Report
Personas
1. Susan, age 36, is a senior corporate lawyer working in a prestigious law firm. Emily aims
to climb the ranks and become a partner in the next few years. Her motivations are grounded
in achieving prestige, ensuring security, and maintaining order both in her professional and
personal life. After tackling high-stakes cases, Susan looks for ways to unwind and relax.
Figure 4
The first persona
Note. Own Work.
2. Emma is a freelance graphic designer and illustrator living in Sydney. Married and a
mother to an energetic toddler. Her home doubles as a studio, where she brings imaginative
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worlds to life. Her goal is to nurture her child's creativity while cultivating her career and
maintaining a tidy home environment. She looks for stress-relieving solutions that can be
integrated into her busy life.
Figure 5
The second persona
Note. Own Work.
3. Daniel, aged 32, is a software developer. He's engaged to his college sweetheart and is
creating a harmonious home life as they plan their future together. He often works long hours
on his app idea, but he knows he needs to take breaks. In his free time, Daniel and his fiancée
explore local craft fairs, looking for sustainable products. As he continues to navigate the tech
industry, he relies on these small practices to inspire his next innovation.
Figure 6
The third persona
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Note. Own Work.
Customer Journey
The customer journey outlines the path a customer takes to discover, evaluate, purchase and
use a product and builds a relationship between them and our brand. It can be particularly
effective in marketing automation, where it provides a framework for understanding customer
behavior (Metsola, 2018).
1. Susan hears the ad on a podcast. She goes to the company's website to learn more. She
reads reviews that make her want the candle. As she makes her decision, she is attracted by a
good deal and the brand’s clear return policy, making her feel secure. At the checkout, Susan
has a simple experience, which makes her feel good about the brand. In the post-purchase
stage, the brand keeps in touch with her by email and offers her a loyalty programme with
exclusive benefits.
Figure 7
Customer Journey One
Note. Own Work.
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2. Emma buys a stress-reducing scented candle after discovering it in a boutique. She is first
attracted by the store's appearance and then buys it after learning more about it. Emma
chooses a candle that meets her needs and buys it, encouraged by a discount and a
satisfaction guarantee.When she brings the candle home, she is pleased with the scent and
packaging. However, she is concerned about the candle's longevity and cost-effectiveness.
The store's follow-up contact addresses her concerns, leading to her becoming a repeat
customer.
Figure 8
Customer Journey Two
Note. Own Work.
3. Daniel Martinez reads a blog post about aromatherapy and buys a scented candle. He looks
at different brands and chooses one with good reviews. After finding a brand that uses data to
create their scents, Daniel buys a candle bundle. He buys it because of a discount and a clear
return policy.When he gets the candles, he is impressed with the quality, packaging, and the
immediate relaxation they provide. The brand keeps in touch with him, giving tips on how to
look after the candles and offering a refill service. Finally, he decides to subscribe to a
monthly service and become a loyal customer because its products are good for the
environment.
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Figure 9
Customer Journey Three
Note. Own Work.
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