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MKTG 3110 Digital Marketing
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
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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
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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
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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.