Market Differentiation Strategies in the Perfume Industry: Economic Implications of Brand Value

This study investigates market differentiation strategies within the luxury perfume industry and their economic impacts on brand value through an Exploratory Data Analysis (EDA) approach. In a highly competitive market, brands employ strategies beyond mere fragrance, emphasizing brand experience, packaging, and marketing to enhance perceived value. Understanding the economic impact of these strategies is vital for gaining a competitive edge and commanding premium pricing. The research utilizes Optical Character Recognition (OCR) to extract ingredient lists from perfume bottle labels, converting physical label information into digital data. This digitized data is then matched with a predefined cost table to determine the cost of each ingredient, providing insights into the cost structure of perfumes.