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By Lee Kelly —

Market Research & Marketing Mix: P&G Smart Air Freshener Launch Strategy

Market Research Brief for Procter & Gamble’s Smart Air Freshener

Overview: SWOT Analysis

Strengths

Procter & Gamble (P&G) is a strong force in the market, known worldwide for its innovative products and strong brand identity. Their long-standing reputation for delivering quality, sustainability, and trust provides a solid base for launching new items like the Smart Air Freshener. This product highlights P&G’s focus on blending innovation with convenience, using its extensive distribution network to ensure availability in both physical stores and online channels (Lucà, 2019; Hoskins & Griffin, 2019).

Another advantage lies in the air freshener’s integration of smart technology. As more consumers adopt smart home ecosystems, this Wi-Fi-enabled device connects effortlessly with existing systems. It offers users greater control over their home environment, allowing them to personalize their scent experience and boost their comfort. P&G’s strong track record in product innovation puts them in an excellent position to thrive in this expanding market (Han et al., 2019).

Weaknesses

While P&G’s focus on innovation is a strength, the premium pricing of the Smart Air Freshener may be a potential drawback. This price point risks alienating a broader audience that may not be willing or able to invest in higher-end smart home products. As noted in research, higher pricing can signal quality but may also limit market appeal, especially when compared to more affordable alternatives like traditional air fresheners (Jain et al., 2021).

In addition, P&G faces stiff competition from tech giants like Google and Amazon, both of which already dominate the smart home market. These companies have integrated ecosystems, which could make it challenging for P&G to penetrate this space and compete effectively without significant differentiation (Choi et al., 2022; Rîpa & Nicolescu, 2023).

Opportunities

The smart home industry continues to expand rapidly, driven by consumer demand for convenience, automation, and personalization. This growth presents a significant opportunity for P&G’s Smart Air Freshener, which caters directly to these trends (Jain et al., 2021). As more households adopt smart technology, there is ample opportunity for P&G to position itself as a key player in this space, particularly by emphasizing its unique wellness benefits.

Moreover, the product’s alignment with the wellness trend is a strategic advantage. Research has shown that scents can improve mood and cognitive function, which means the Smart Air Freshener can be marketed as more than just a fragrance product—it’s a lifestyle enhancement (Choi et al., 2022). The subscription model for scent refills also taps into the growing consumer preference for convenience and continuity, helping to build brand loyalty (Pothitou et al., 2017).

Threats

Despite the opportunities, P&G faces significant threats from well-established competitors. Google and Amazon have a strong foothold in the smart home market with products like Google Nest and Amazon Alexa. These companies offer integrated product ecosystems that make it difficult for new entrants like P&G to differentiate themselves (Hoskins & Griffin, 2019).

Another potential threat is the legal and regulatory challenges that accompany smart home devices. Different countries have varying regulations regarding Wi-Fi-enabled products, which could create distribution barriers for P&G’s global expansion plans. Navigating these legalities will be crucial for the company to avoid costly setbacks (Ogbari et al., 2019).

The smart home industry is experiencing rapid growth, fueled by increasing consumer demand for convenience, automation, and personalization. As more consumers adopt smart home devices, companies like Procter & Gamble are well-positioned to capitalize on this trend by introducing innovative products like the Smart Air Freshener. According to market research, the global smart home market is expected to grow by 25% annually, reaching nearly $200 billion by 2027 (Jain et al., 2021). This creates significant opportunities for P&G to enter this space with a product that blends technology with wellness, two areas of increasing consumer interest.

One of the most notable industry trends is the focus on personalization. Consumers no longer want a one-size-fits-all product; instead, they seek devices that can be tailored to their individual preferences. The Smart Air Freshener meets this demand by allowing users to customize their home’s scent through a smartphone app. This fits perfectly into the broader trend of consumers seeking products that enhance their daily lives in a personalized way (Lucà, 2019). Whether it’s adjusting the scent to match their mood or setting schedules for different times of the day, consumers are increasingly looking for products that offer flexibility and control.

Another key trend shaping the market is the growing focus on wellness. As people spend more time at home, they are looking for ways to improve their living environments. Wellness technology has become a hot topic, with products designed to enhance physical and emotional well-being. Research shows that certain scents can positively impact mood, productivity, and overall mental health (Choi et al., 2022). The Smart Air Freshener is well-positioned to take advantage of this trend by marketing itself not just as a functional air freshener but as a tool for enhancing wellness. By highlighting the emotional and cognitive benefits of customizable scents, P&G can appeal to consumers who prioritize their well-being.

Additionally, subscription services are becoming increasingly popular as a business model in the smart home industry. This trend, driven by consumer preference for convenience, presents an opportunity for P&G to offer scent refills on a subscription basis. This not only provides convenience but also encourages long-term brand loyalty through continuous engagement with customers (Pothitou et al., 2017). This model aligns with the trend of consumers seeking easy, ongoing solutions rather than one-time purchases.

Lastly, as smart home technology becomes more widespread, privacy and data security concerns are also becoming more prominent. Consumers are increasingly wary of how their personal data is being used, especially with Wi-Fi-enabled devices. For P&G to succeed in this market, it will be crucial to address these concerns by implementing robust data protection measures and clearly communicating privacy policies to consumers (Hoskins & Griffin, 2019).

In conclusion, the Smart Air Freshener is entering a market that is not only expanding rapidly but also evolving to meet the changing needs of consumers. By tapping into trends such as personalization, wellness, subscription services, and data security, P&G can position this product to capture a significant share of the growing smart home market.

Marketing Mix Elements: Potential Target Demographics

The Procter & Gamble Smart Air Freshener targets two key consumer segments: tech-savvy individuals and health-conscious consumers. The first group consists of homeowners who have already embraced smart home ecosystems. Typically between the ages of 25 and 45, they are middle-to-high-income earners who seek convenience and personalization in home automation products. This segment is likely to use devices like smart thermostats, lighting systems, and voice-controlled assistants, making them an ideal audience for a smart air freshener that integrates seamlessly into their existing setup (Balta-Ozkan et al., 2013).

The second target group consists of wellness-focused consumers who prioritize products that improve their living environments. These individuals, typically aged 30 to 50, value products that enhance their well-being and mental health. The air freshener’s ability to provide mood-enhancing scents, backed by research on the effects of aroma on mental performance, makes it a natural fit for this audience (Choi et al., 2022). This group also tends to have disposable income and values products that blend technology with wellness.

Marketing Mix Elements: Internal and External Organizational Factors

Internally, Procter & Gamble’s strong foundation in product innovation and sustainability provides the company with a significant advantage in launching the Smart Air Freshener. P&G’s vast resources, robust corporate structure, and established reputation as a market leader in home care products enable it to introduce new technology-driven solutions with ease. The company’s focus on sustainability, particularly in product design and operations, will also appeal to environmentally conscious consumers (Schaltegger et al., 2012).

Externally, the smart home market is rapidly evolving, driven by increasing consumer demand for convenience and wellness. However, P&G faces stiff competition from tech giants like Google and Amazon, both of which dominate the smart home industry. Competing against these well-established ecosystems will require P&G to differentiate its product by emphasizing its unique features, such as scent customization and wellness benefits (Porter, 1980). Additionally, global regulations related to smart devices may pose challenges in certain markets, requiring P&G to ensure compliance with local laws (Rîpa & Nicolescu, 2023).

Marketing Mix Elements: Product Need

The Smart Air Freshener meets a clear market need by combining the convenience of smart home technology with the growing demand for wellness products. Consumers today are looking for products that not only make their lives easier but also enhance their living spaces. Research shows that specific scents can positively affect mood and productivity, which makes this product more than just a functional air freshener—it’s a tool for improving well-being at home (Pothitou et al., 2017). Busy families and wellness-focused individuals will appreciate the ability to control their home’s ambiance with minimal effort, making this product a perfect fit for their lifestyles.

Marketing Mix Elements: Pricing Strategy

The Smart Air Freshener will follow a premium pricing strategy to reflect its advanced features and appeal to higher-income consumers who are willing to pay for innovation and quality. This pricing approach aligns with P&G’s brand image as a provider of premium home care products. Additionally, offering a subscription model for scent refills creates a recurring revenue stream and increases customer retention by providing continuous value and convenience (Nagle & Müller, 2017). By combining premium pricing with a subscription service, P&G can position this product as both exclusive and essential for tech-savvy and wellness-conscious consumers.

Marketing Mix Elements: Placement of Product

The Smart Air Freshener will be available through multiple channels, including online retailers like Amazon, P&G’s direct-to-consumer website, and physical stores like Walmart and Target. This multi-channel distribution strategy ensures that the product reaches a broad audience while offering the convenience of online shopping and in-store availability (Verhoef et al., 2015). By selling through both digital and traditional retail channels, P&G can cater to the tech-savvy consumers who prefer online shopping as well as those who prefer the in-store experience. Additionally, placing the product in home improvement and wellness stores could further strengthen its appeal to consumers focused on enhancing their living environments.

Marketing Mix Elements: Promoting the Product

Digital marketing will be the primary promotional strategy for the Smart Air Freshener. Platforms like YouTube and Instagram are ideal for showcasing the product’s smart home integration and wellness benefits through influencer partnerships and video demonstrations. Tech influencers can highlight how the product integrates seamlessly into existing smart home systems, while wellness influencers can focus on the emotional and mental health benefits of customizable scents (Balta-Ozkan et al., 2013). Email marketing and content marketing will also be leveraged to engage current customers, promoting subscription options and exclusive scent offerings to encourage long-term brand loyalty. Online ads will emphasize the product’s personalization features and ease of use, targeting consumers already familiar with smart home technology.

Marketing Mix Elements: Implications

While the Smart Air Freshener presents exciting opportunities, there are potential ethical and legal implications to consider. The product’s integration with Wi-Fi raises concerns about consumer privacy and data protection. As consumers become increasingly wary of how their personal data is used, it is critical for P&G to implement robust privacy policies and security measures to safeguard user information. Transparency in how data is collected and used will be essential to maintaining consumer trust (Hoskins & Griffin, 2019).

Furthermore, P&G must ensure that its marketing claims regarding wellness benefits are accurate and compliant with regulatory standards. Overpromising on the product’s ability to improve well-being could lead to legal issues and damage consumer trust. Clear, honest advertising that highlights the proven benefits of aroma on mood and productivity will help mitigate these risks (Nagle & Müller, 2017).

The marketing mix for Procter & Gamble’s Smart Air Freshener—encompassing product, price, place, and promotion—has been carefully designed to align with current industry trends in the smart home market, personalization, and wellness. The research conducted emphasizes how the interplay between these elements and market trends positions P&G’s product for success.

Product

The Smart Air Freshener represents a convergence of two major industry trends: smart home technology and wellness. Consumers are increasingly seeking products that enhance their personal well-being while offering convenience and automation, which this product delivers through its customizable scent features and integration with existing smart home systems. Research shows that personalization is a growing expectation among consumers, with smart home devices becoming more tailored to individual preferences (Balta-Ozkan et al., 2013). This product taps into the desire for greater control over the home environment, offering users the ability to adjust the scent based on mood, time of day, or personal preference, which aligns with the growing wellness trend and the focus on mood-enhancing products (Choi et al., 2022).

Price

The pricing strategy for the Smart Air Freshener reflects the premium positioning of the product, designed to appeal to tech-savvy and wellness-conscious consumers who are willing to pay for innovation and convenience. This premium pricing strategy is consistent with market trends that show consumers are willing to invest in high-quality, smart home devices that provide ongoing benefits and value (Nagle & Müller, 2017). Furthermore, the subscription model for scent refills aligns with the increasing consumer preference for subscription services, which offer convenience and encourage brand loyalty. This trend has been particularly successful in smart home products where continuous use and integration drive repeat purchases and customer engagement (Pothitou et al., 2017).

Place

The product’s distribution strategy leverages the shift toward omnichannel retailing, where consumers expect the convenience of purchasing products both online and in-store. The Smart Air Freshener will be available on e-commerce platforms such as Amazon, as well as in physical retail locations like Walmart and Target, ensuring that it reaches a wide demographic (Verhoef et al., 2015). This multi-channel approach aligns with consumer trends favoring flexibility in shopping, particularly in the smart home and wellness categories, where customers often conduct extensive research online before making a purchase in-store or vice versa.

Promotion

Promotion for the Smart Air Freshener will primarily focus on digital marketing, which is aligned with trends in consumer behavior where people increasingly rely on digital platforms for product discovery and decision-making. The use of social media influencers, particularly those in the tech and wellness spaces, will help P&G tap into these growing markets by leveraging credible voices to showcase the product’s innovative features. Additionally, the focus on content marketing through personalized email campaigns and online advertisements speaks to the trend of engaging consumers in a meaningful way that highlights both the technological and wellness benefits of the product (Balta-Ozkan et al., 2013).

By emphasizing the product’s smart home integration, customization features, and wellness benefits, the promotional strategy will connect with consumers who value both technology and a healthier home environment. This is consistent with the broader industry shift toward products that enhance everyday life through personalization and automation (Jain et al., 2021).

The marketing strategy for the Smart Air Freshener is directly informed by current industry trends and backed by comprehensive marketing research. By understanding consumer demand for personalization, convenience, and wellness, P&G can position the product as a unique offering in the smart home market. The interplay between marketing research and industry trends ensures that the Smart Air Freshener not only meets current consumer needs but is also adaptable to future trends in the industry.

The use of both primary and secondary research helped identify key consumer preferences, including the growing desire for customizable, wellness-focused products. This research guided the development of the marketing mix elements, ensuring that the product, pricing, distribution, and promotional strategies are all aligned with consumer expectations and market dynamics (Babin & Zikmund, 2019). Moreover, the research highlights the importance of data-driven decision-making in today’s rapidly changing market, where understanding consumer behavior is critical to staying competitive.

Concluding Findings and Limitations: Organizational Objectives

The research conducted for Procter & Gamble’s Smart Air Freshener strongly supports the company’s broader objectives of driving innovation and enhancing everyday consumer experiences. P&G has a long-standing commitment to creating products that integrate seamlessly into the lives of their consumers while promoting sustainability and well-being. The Smart Air Freshener aligns with these objectives by introducing a product that merges wellness with cutting-edge technology, fulfilling the consumer need for convenience, personalization, and a healthier living environment.

The marketing strategy, based on thorough industry research and competitive analysis, emphasizes key organizational goals such as expanding P&G’s reach into the growing smart home market and maintaining its leadership in home care products. Additionally, the product’s subscription model for scent refills aligns with P&G’s objective of building long-term consumer relationships by offering continuous value through ongoing product engagement.

Looking forward, the marketing research has identified several trends that could influence the success of the Smart Air Freshener. The continued growth of the smart home market and the increasing integration of technology into everyday products will likely drive further demand for connected home devices. Consumers will continue to prioritize convenience, personalization, and wellness, making P&G’s air freshener well-positioned for future growth.

However, as the smart home market becomes more saturated, P&G may need to focus on further differentiating the product from competitors. This could involve integrating more advanced features, such as compatibility with voice assistants or additional wellness functionalities based on consumer health data. Additionally, with privacy and data security becoming increasingly important, P&G must stay ahead of these concerns by continuously updating their data protection policies and ensuring transparency in their practices.

The marketing research conducted for this product has shown a clear alignment between industry trends and consumer demands. The increasing consumer interest in smart home technology, personalization, and wellness reflects broader shifts in how people view and interact with their home environments. P&G’s focus on these areas through the Smart Air Freshener capitalizes on these trends, positioning the company for success in a competitive market.

Additionally, the use of both primary and secondary research has provided valuable insights into consumer preferences, competitive landscapes, and industry dynamics. This research has allowed P&G to fine-tune its marketing strategy, ensuring it is closely aligned with the latest industry developments, such as the growing popularity of subscription services and the focus on creating emotionally resonant, wellness-enhancing products.

Concluding Findings and Limitations: Marketing Research Aligns to Standards

The marketing research and strategies proposed for the Smart Air Freshener adhere to legal, ethical, and industry standards. P&G has a strong history of upholding rigorous standards in its product development and marketing efforts, and this product is no exception. The company has taken steps to ensure that the data collected from consumers through the smart device is handled responsibly, with clear privacy policies and protections in place.

Ethically, the product’s marketing campaign will focus on transparency, especially regarding the wellness benefits it offers. Ensuring that claims about mood enhancement and scent customization are backed by scientific research helps avoid misleading advertising, a crucial factor in maintaining consumer trust. The integration of legal and ethical considerations into the marketing strategy demonstrates P&G’s commitment to responsible business practices and aligns with industry regulations regarding privacy, advertising claims, and consumer safety.

Concluding Findings and Limitations: Implications

The research conducted for Procter & Gamble’s Smart Air Freshener has highlighted several critical implications that will affect the product’s success in the market. These implications are tied to the broader industry trends in smart home technology, consumer expectations, and the evolving focus on wellness.

Meeting Consumer Demand for Personalization and Wellness

One of the most significant findings from the research is the increasing consumer demand for personalized products that offer both convenience and enhanced well-being. The Smart Air Freshener addresses this need by allowing users to control and customize the scent of their home through a smartphone app, integrating seamlessly with existing smart home systems. This feature aligns with the trend of consumers seeking products that can be tailored to their individual preferences, particularly those that enhance their lifestyle and environment (Balta-Ozkan et al., 2013).

The wellness aspect of the product also offers strong market potential. With more consumers focusing on their mental and emotional well-being, products that promote a sense of calm, productivity, or relaxation are in high demand (Choi et al., 2022). By highlighting the product’s ability to create a mood-enhancing environment, P&G can differentiate the Smart Air Freshener from competitors and tap into this growing wellness market.

Challenges of Competing in the Smart Home Market

While the Smart Air Freshener is well-positioned to capitalize on the growing demand for smart home devices, P&G faces significant challenges in competing with tech giants like Google and Amazon. These companies already have established ecosystems with products like Google Nest and Amazon Echo, which integrate various home automation features. P&G will need to focus on differentiating its product, emphasizing the unique wellness benefits and customization options that competitors may not offer (Hoskins & Griffin, 2019).

In addition, as smart home products become more mainstream, consumers will expect seamless integration with other devices and platforms. Ensuring that the Smart Air Freshener is compatible with popular smart home systems, voice assistants, and other technologies will be critical to its success. P&G may also need to consider partnerships or collaborations with established smart home brands to enhance the product’s appeal and accessibility.

Privacy and Data Security Considerations

As a Wi-Fi-enabled device, the Smart Air Freshener raises potential concerns around privacy and data security. Consumers are increasingly aware of how their personal data is collected and used, particularly with smart home products that may gather information about their behavior and preferences. P&G will need to implement robust data protection measures to ensure that user information is kept secure and used responsibly. Transparency in how data is collected, stored, and shared will be essential for building and maintaining consumer trust (Hoskins & Griffin, 2019).

Additionally, the company must comply with privacy regulations across different markets, as global regulations on data protection vary significantly. Failure to address these concerns adequately could result in legal challenges and damage to the brand’s reputation.

Subscription Model Opportunities and Risks

The subscription model for scent refills offers P&G an opportunity to create a steady revenue stream and encourage long-term customer loyalty. This model aligns with consumer preferences for convenience, as it allows customers to receive regular deliveries of scent refills without needing to reorder manually. It also builds a continuous relationship with the brand, as customers remain engaged with the product over time (Pothitou et al., 2017).

However, the success of the subscription model will depend on how well it is executed. Consumers may be hesitant to commit to a subscription if the pricing is perceived as too high or if the product does not deliver consistent value. P&G will need to ensure that the subscription is affordable and offers a range of customizable options to meet different consumer preferences.

Global Market and Regulatory Challenges

Expanding the Smart Air Freshener into international markets presents both opportunities and challenges. Different countries have varying regulations regarding smart devices, particularly when it comes to Wi-Fi-enabled products. P&G will need to navigate these regulatory landscapes carefully to avoid potential legal issues that could hinder the product’s global rollout (Ogbari et al., 2019). Ensuring compliance with local laws related to data security, product safety, and advertising claims will be critical for the company’s success in diverse markets.

Furthermore, consumer behavior and preferences may differ across regions. P&G will need to tailor its marketing strategies to address the unique needs and expectations of consumers in different countries while maintaining a consistent brand message.

Concluding Findings and Limitations: Limitations

While the marketing proposal for Procter & Gamble’s Smart Air Freshener is grounded in extensive research and analysis, there are several limitations that should be considered when evaluating its overall effectiveness. These limitations may affect the ability to fully implement the marketing strategy or draw definitive conclusions about the product’s success.

One of the primary limitations of this marketing proposal is the reliance on currently available research, which may not fully reflect rapidly changing consumer preferences. The smart home and wellness markets are evolving quickly, and while this proposal leverages data from recent studies, these trends can shift dramatically within short periods (Jain et al., 2021). As a result, the data may not capture the most current nuances in consumer behavior, particularly as new competitors and technologies enter the market. The lack of real-time consumer data may limit the ability to predict how well the Smart Air Freshener will perform in the future, especially in such a dynamic market.

Limited Primary Research

While the proposal utilizes both primary and secondary research methods, there is a heavier reliance on secondary data, such as industry reports and market analyses. Secondary data is useful for understanding broader trends but may not capture the specific preferences or concerns of P&G’s target audience for this particular product. Ideally, more comprehensive primary research, such as focus groups, surveys, or in-depth interviews with potential users of the Smart Air Freshener, would be conducted to gather first-hand insights into consumer behavior and expectations (Babin & Zikmund, 2019).

For example, while studies show that wellness is an emerging trend, it is unclear how strongly consumers in P&G’s target demographic value this feature in an air freshener compared to other smart home devices. Conducting further primary research would help to address this gap and strengthen the marketing strategy.

Unverified Assumptions About Subscription Model Adoption

The proposal suggests that the subscription model for scent refills will be well-received by consumers, based on the growing popularity of subscription services in other industries. However, it is important to note that there is limited direct data available to confirm that consumers are willing to subscribe to air freshener refills specifically. This assumption could present a risk if consumers perceive the subscription as unnecessary or overly expensive, potentially reducing adoption rates (Pothitou et al., 2017).

Additionally, without direct data on consumer attitudes towards a subscription model for this type of product, there is a risk that the pricing or structure of the service may not align with consumer expectations. Testing the subscription model with a pilot program or further research could mitigate this limitation by providing more concrete data.

Potential Bias in Competitor Analysis

Another limitation of this proposal is the potential bias in the competitor analysis. While the strengths and weaknesses of major competitors, such as Google and Amazon, are acknowledged, there may be an over-reliance on comparing P&G’s Smart Air Freshener to these tech giants. This focus may overshadow the potential threat posed by smaller, more agile competitors who are also innovating in the smart home and wellness markets (Rîpa & Nicolescu, 2023).

Moreover, the emphasis on differentiating the Smart Air Freshener from products in the Google and Amazon ecosystems may lead to a narrow view of the competitive landscape. There is a need to consider how other emerging brands or niche products might impact market share, especially if they are more specialized or cost-effective. Expanding the scope of the competitor analysis could help P&G better anticipate and respond to competitive threats.

The proposal assumes that P&G will be able to navigate the regulatory and legal challenges associated with launching a Wi-Fi-enabled product in global markets. However, this is a significant limitation, as different countries have varying laws regarding data privacy, wireless communication, and product safety (Ogbari et al., 2019). If P&G encounters regulatory barriers in key international markets, it could delay the product launch or increase costs associated with compliance.

The evolving nature of privacy laws, particularly in regions like Europe with stringent regulations such as the General Data Protection Regulation (GDPR), introduces further uncertainty. P&G will need to closely monitor legal developments and ensure that its data protection measures meet the highest standards to avoid potential legal issues.

Consumer Privacy Concerns

As a Wi-Fi-enabled device, the Smart Air Freshener collects and processes data on consumer preferences and behavior. While the proposal includes plans for robust data protection, there is always a risk of consumer pushback regarding privacy concerns. Recent data breaches and growing awareness around personal data use mean that some consumers may be reluctant to adopt smart home products that they perceive as invasive, regardless of the security measures in place (Hoskins & Griffin, 2019).

Additionally, the marketing strategy may not fully address how to educate consumers about the data privacy policies and safeguards associated with the product. Without clear and transparent communication on how their data will be used, consumers may be hesitant to engage with the product, limiting its potential adoption.

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