Crosscut Advisory proposal to a global fragrance brand for strategic development

1. TM TM
Crosscut Advisory Partners, LLC.
SelectNY Proposal: Fragrance Exploratory
© 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.

2. Confidentiality
Crosscut will hold all information gained from SelectNY under the strictest
provisions of client-partner confidentiality. Crosscut’s principals and
representatives will keep any, and all information, confidential, and will not
divulge to any third party.
1 © 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.

3. Background
SelectNY is an astute global luxury strategic communications concern. Its
Chief Strategic Officer, Wolfgang Schaefer, has requested Crosscut develop
an approach outlining how it would logically interrogate, and find new
insights in the consumer fragrance category.
Crosscut principals have prior experience in fragrance, specifically,
developing the strategic platforms for Hugo Boss V, Rocawear 99, and
start-up leadership in men’s grooming. Crosscut will leverage this
experience for this engagement.
2 © 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.

4. Objective
Crosscut will discern new Culture contexts
and insights relating to the awareness,
consideration, purchase, and consumption
of fragrance. The primary premise of this
objective is to ascertain what consumer
attitudes and behaviors are shaping the
Culture of fragrance, and how.
We will evaluate and analyze the fragrance
market, consumer, product, and experience,
in order to identify relevant and emergent
consumer tangents.
This customized approach consists of
TM
Crosscutting , a proprietary quantified
measure of Culture in markets, layered on
top of Crosscut’s strategic methodology -
Evaluate, Measure, Apply - will identify
alternative leading directions for fragrance
brand marketers.
3 © 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.

5. Deliverable
Crosscut will deliver a business opinion
and strategic recommendations via a
comprehensive Power Point deck and
presentation, including sources, findings,
insights, and implications.
4 © 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.

6. Crosscut Methodology
Cut 1: Evaluate
Audit of category Key
Review and interrogate Define Culture Performance Indicators:
category, market, dimensions to track + Drivers of Purchase
consumer, channel, Qual research
product, brand data
Cut 2: Measure
Crosscutting Process Identify and correlate Extract simple outputs,
Crosscuts to category recommend direction
EXTEND AND STRETCH ADOPT AND
Cut 3: Apply POSITION NEW
COMMUNICATE
FRAGRANCE FRAGRANCE
Apply Culture to CAGTEGORY/EQUITY RELEVANT CULTURE
CULTURE INSIGHT
1 2 BEHAVIOR 3
business and revenue
models as Market-
Performing Culture LEVERAGE CULTURE TO INFLUENCE REASON TO BELIEVE
INCREASE CONSUMER CATEGORY VALUE FOR PURCHASE
Intelligence TARGETS DECISIONS
PROPOSITION 5
4 6
MANAGE BUSINESS
AND BRAND RETURNS
VIA IMPLICATIONS
7
5 © 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.

7. Qualitative Approach
Crosscut will utilize a mix of qualitative and quantitative research
methodologies to begin to decipher where fragrance is headed, and why.
Expert Online Shopper
Focus Groups Interviews Questionnaire Analysis
NYC-based focus group One-on-one interviews Comprehensive online Shop-a-long trips with
compromised of Heavy with leading questionnaire designed fragrance-involved
fragrance users, male practitioners in to test hypothesis and consumers; Store
and female. Objective: fragrance development, new learnings observations
Attitudes, Behavior, marketing, branding, regarding fragrance
Perception, Usage trade, and academia insights and
exploratory areas
6 © 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.

8. Quantitative Approach - Crosscutting TM
Crosscut will poll approximately 50-100 consumers to identify what
dimensions of Culture for fragrance are most relevant today, and what will
motivate them to seek new fragrance experiences tomorrow.
Commerce Culture
AUTOMO BEER & CNSMER CELEBRITY CULINARY CURRENT
TIVE SPIRITS ELCTRONCS CPG DIGITAL
INFLUENCE HABITS EVENTS
DESIGN DIVERSITY
ENTERTAI ENVIRON FINANCIAL FOOD & HEALTH ENVIRO ENTERTAIN
FAITH FAMILY FASHION
NMENT MENT SRVCES BEVERAGE CARE NMENT MENT
HOSPIT MEDIA &
QSR &
SOCIAL
X GAMING & HEALTH & INNOV INTOXI
CAS RETAIL ATION LANGUAGE
ALITY PUBLSHNG MEDIA HOBBY FITNESS CANTS
DINING
TECHN TRAVEL & MUSIC ROLE
SPORTS TELECOM WIRELESS MEDIA SEXUALITY SUCCESS
OLOGY LEISURE TASTE MODEL
7 © 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.

9. Culture Hypothesis
While Crosscut views the category of Fragrance within Consumer Packaged
Goods, determining which Culture dimensions most influence consumption is more
difficult. Our hypothesis are the following dimensions may be drivers…
Culture
CELEBRITY CULINARY CURRENT
DESIGN DIVERSITY
INFLUENCE HABITS EVENTS
ENVIRO ENTERTAIN
FAITH FAMILY FASHION
NMENT MENT
GAMING & HEALTH & INNOV INTOXI
ATION LANGUAGE
HOBBY FITNESS CANTS
MUSIC ROLE
MEDIA SEXUALITY SUCCESS
TASTE MODEL
8 © 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.

10. Areas of exploration
 Brand awareness and trial
 Brand image and fragrance attributes
 Consumer demographics
 Consumer usage behavior
 Sales channel mix
 Seasonality, gifting, ancillary
 Innovation
 Adult, teen shopping incidence by retail format
 Product merchandising
 Advertising and communication
 Adjacencies and other factors
 Gender perceptions
 Aroma and scent profiles
9 © 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.

11. Key consumer variables to examine
 Adoption
 Affinity
 Awareness
 Esteem
 Loyalty
 Persuasion
 Preference
 Purchase
 Recall
 Respect
 Retention
 Trust
 Value
10 © 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.

12. Timeline
Crosscut can fulfill this proposed research scheme in 30 working days:
 W/O April 26, 2009: “In field” collecting data (qualitative)
 W/O May 3, 2009: Crosscutting (quantitative)
 W/O May 10, 2009: Client interim briefing and status
 W/O May 17, 2009: Further strategic refinement and development
 May 21, 2009: Client presentation
11 © 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.

13. Benefits to SelectNY
The benefits of a Crosscut engagement to explore the fragrance marketplace
accrue to SelectNY as follows:
 Leverage Culture to understand fragrance market dynamics
 Discover what is driving purchase in fragrance consumption
 Identify emerging trends in fragrance and consumer behavior
 Modify and refine existing strategic decisions and tactics
 Optimize future product launches, communications and strategies
 Develop competitive mitigation strategies and plans
12 © 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.

14. Pricing & Terms
$XX,XXX
 Assumes all direct and indirect costs and fee
 50% of total due in the first working week (five days from agreement)
 Net 15 days for balance due
13 © 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.

15. Thank you.
TM TM
14 © 2009-2010, Crosscut Advisory Partners, LLC. All Rights Reserved.