Comprehensive Marketing Mix Analysis of Essential Oils: UK and Germany

This report provides a comprehensive marketing mix analysis of Frankincense and Myrrh essential oils, focusing on the UK and German markets. It examines the product aspects, including their origins, uses in aromatherapy, cosmetics, and pharmaceuticals. The report delves into pricing strategies, considering market penetration, B2B and B2C models, and the importance of perceived value. Distribution channels are explored, highlighting placement in supermarkets, specialty stores, and online platforms, with a focus on the international market of Germany. The promotion section covers strategies like emphasizing natural ingredients, brand awareness, and digital marketing approaches, including social media and search network analytics. The report incorporates the BCG matrix for analyzing the growth rate and market shares. The assignment also provides information on the historical background, production, and applications of Frankincense and Myrrh essential oils.

RUNNING HEAD: MARKETING MIX

1MARKRTING MIX
Essential oils are generally the concentrated versions of the natural oils that are mostly found in
the trees and shrub like plants. Frankincense and myrrh are the most prized and reputed essential
oils and hydrosol that are used in a variety of purpose all over the United Kingdom as well as in
international markets (Tisserand, R. and Young, R., 2013.). The following report will analyze
then marketing mix of these two products for the better understanding of the market.
Frankincense and Myrrh Essential Oil:
1. Product: Frankincense essential oil is derived from the sap of Boswellia trees, which have its
origin in India or Northeast Africa. The oil from the sap is extracted by the method of
steamed distillation. Depending on the variety of the Boswelliab trees, the essential oils are
also classified into different types and also for meeting various purposes. The main USP for
the frankincense oil is its rich aroma. Analyzing the growing trend towards aroma therapy
and the rising concern of the people in the developed countries regarding their skin care,
various companies have been using the aroma and the beneficial effects of the essential oil in
aroma therapy and beauty or personal care products. Apart from being sold just in the oil
formula, the product is also used in various soaps, body oil or moisturizer (Chen, Y., Zhou,
C., Ge, Z., Liu, 2013).
Myrrh, almost similar to the Frankincense oil, is the aromatic resin derived from
thorny Commiphora myrrha tree. The essential oils derived from the distillation of the
sap is however, mainly used for offering relieves to cough and colds, phlegm, bronchitis
or other problems. The sedative scent that the oil has is effective in the various treatments
including mood swings and spiritual awakening. Apart from this psychological aroma

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therapy, the oil is also used as personal care products like the skin problems, hair fall
problems and others.
2. Price: the pricing of any products determine the sales of the same. The huge difference in
perceived value and the objective costing of the product leads to the loss of market
(Constantinides, E., 2006.). The Frankincense oil has more or less a stable market
internationally that has led the retailers of the product to gain sufficient knowledge about the
demand and the target market of this oil. The Pricing strategy of the various companies thus
analyses these points thoroughly. With the growing concerns about the natural product all
over the world, and the companies’ attempt of going green, the retailers of these essential oils
will have to circulate the idea that these products are ideally natural and hence beneficial for
skin and health. The incorporation of a hundred percent natural ingredients will definitely be
costly. Fixing a lower price for these products will then obviously hamper the perceived
value of the product. Again, the market penetration for new companies selling these essential
oils will not be easy if the prices are made high enough since there already exists a
competitive market. The ideal strategy for the market penetration will be then, to offer
discounts in the products and making the target market acquainted with the brand. Again,
driving an online or website based business will be an effective idea since this would expose
the customers to the variety of products just at their finger tip. Since the business pattern of
retailing these items follows the business to business and the business to customer’s style, the
pricing of the products are done for catering both the ways. Where the consumers chose their
products not based solely on the price but also the popularity, the B2B buyers make decisions
solely on the profit potentials. The growth share matrix form of this B2B and B2C needs to

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be analysed in order to fix the pricing strategy for the business. The company must map the
different growth rates and the market shares. (INSER THE BCG MATRIX)
3. Place: The original source of Myrrh or Frankincense oil is in the region of Asia and Africa or
Middle East. These oils are however, the direct raw resin of the plants and cannot be used
directly for the selling purpose n the posh markets. The distillation of these oils in a steamed
process of both the Frankincense oil and Myrrh are done in United Kingdom. UK is the
largest exporter of these oil products. The placing of these products are further done
internationally by the International Market choice of Germany (Yan, M.R., Wang, C.H., Cruz
Flores, N.J. and Su, Y.Y., 2019.’). The main areas of placing the products are:
North America: Expanding aromatherapy market which is likely to have positive influence on
essential oils demand.
Europe: Growing cosmetics manufacturing owing to rise in exports is likely to promote essential
oils application in this sector.
Asia Pacific: Growing health sector in the region leading to increasing usage of new ingredients
in medicines which may favor essential oils demand.
On the basis of the distribution channel, the placing of the myrrh and Frankincense oil is
done in the
a. Super markets or the hyper markets
b. Specialty stores
c. Pharmaceuticals
d. Online retailing

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4. Promotion: the retailers of the essential oils mainly focus on the following promotional
strategies:
a. Delivering the idea of being essentially natural: the retailers of the frankincense and
myrrh essential oils mainly target on focusing the hundred percent incorporation of the
natural ingredients in the product. This caters to the awareness of the consumers
regarding the health benefits of the oils.
b. Developing the brand awareness: the market of the essential oils can develop te brand
awareness and image by incorporating the unique packaging formula or featuring into
events or magazines that would attract the target market. Myrrh and Frankincense have
been featured as the key wellness product used in the Ambre Blends. The news was
featured in the beauty magazines like Organic Spa, glamouring.com, Harper’s Bazaar
Australia and others.
c. Online markets: the companies using the frankincense and myrrh essential oils have
contributed significantly in the development of their websites and online marketing.
Apart from creating their own websites and selling the products from there, these
companies also set up ties with online markets like Amazon. The websites also contains
in detail the knowledge and benefits about the products.
Digital Marketing strategy development:
1, generating exposure of the brand: the companies will have to create an exposure about their
brand to make it liable to the customers. The formation of the official website and putting a deft
knowledge about the products, their benefits, their ingredients and others will increase the
visibility of the brands to the customers. The brands can also run a banner campaign on the

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Google Display Networks that will efficiently allow the brand to seclude their products out of the
masses while the customers would browse for similar products. This will also allow them to
conduct online business and position the marketing message of the brand in front of their
consumers. The development of the Google Display Network will also enable the brand to
decide the positioning of their ad, whether it should be photo, texts or videos.
2. Accessibility of the social media: the target market for these kinds of products are mainly the
developed or developing nations and more particularly the youths and adults. Social media
advertising is one of the most effective ways in gaining the attention of this segment. Creating a
social media platform that can accommodate the brand will make the campaigning easier and
will also generate a significant amount of interest. Moreover, the two-way communication in the
social media among the brand and the consumer will also help n the digital market strategy. Face
book ads and the promoted pins are often effective in this respect. Finding new ways of fostering
relationships in a B2B marketing through the social media has emerged as a very prospective
process. This has opened up a two way communication process for the business.
3. Testing the market with the search network analytics: the company can have a considerable
knowledge regarding the demographic behavior by means of launching search network
advertising campaign on Google. This will give an idea o the search behavior of the target
market as well. The launching of this campaign will also help the company to analyze the main
keywords searched by the customers. In online shopping, search is a very essential part. Adword
will help the brand to connect to the customer. A satisfactory online shopping experience will
earn a greater credit to the company.

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Reference List:
:Yan, M.R., Wang, C.H., Cruz Flores, N.J. and Su, Y.Y., 2019. Targeting Open Market with
Strategic Business Innovations: A Case Study of Growth Dynamics in Essential Oil and
Aromatherapy Industry. Journal of Open Innovation: Technology, Market, and Complexity, 5(1),
p.7.
Chen, Y., Zhou, C., Ge, Z., Liu, Y., Liu, Y., Feng, W., Li, S., Chen, G. and Wei, T., 2013.
Composition and potential anticancer activities of essential oils obtained from myrrh and
frankincense. Oncology leTucker, A.O., 2006. Frankincense and myrrh. Economic botany, 40(4),
pp.425-433.tters, 6(4), pp.1140-1146.
Constantinides, E., 2006. The marketing mix revisited
Schillaci, D., Arizza, V., Dayton, T., Camarda, L. and Stefano, V.D., 2008. In vitro anti‐biofilm
activity of Boswellia spp. oleogum resin essential oils. Letters in Applied Microbiology, 47(5),
pp.433-438.
Tisserand, R. and Young, R., 2013. Essential oil safety-e-book: A guide for health care
professionals. Elsevier Health Sciences.