CHAPTER II: BUSINESS ISSUE EXPLORATION I. 1. Problem Exploration Perfume is now available for buy online alongside other products. Many of the newest perfumes are available for purchase on these sites, provided that the buyer is satisfied with the description provided by the seller, including the size, color, and notes of scent. One possible downside of online shopping is that customers may receive products that are not as described. For someone unfamiliar with purchasing perfume online, it can be problematic. The likelihood of being deceived is higher, resulting in a perfume with a less attractive aroma and a low-quality product. Thus, most people look up perfume reviews on the internet before buying a bottle to see if the scent suits them. Celebrities used to have a lot of power when it came to purchasing particular commodities, but their effect as a marketing technique to influence the purchase of goods is diminishing and being replaced with reviews on social media. One of the sources for these reviews is social media influencers. The job of influencers is that of a reputable tastemaker or trendsetter in one or more specific groups. Social media influencers are essentially individuals who have influence over a specific target audience or online media, which companies can use to sponsor their products with content or their interactions with their audiences in order to increase reach, sales, and engagement via positive interactions. Using social media influencers for marketing purposes can help increase brand recognition. Even after considering the facts, social media influencers with less followers are regarded as being more efficient at interacting with their following. According to the findings of Nielsen's research, the role of influencers in market-attraction strategies is substantial. According to reports, influencer participation in a brand might increase sales or marketing of the company's products. According to the 2021 Nielsen Trust in Advertising, 71 percent of 17 worldwide consumers feel that advertising, opinions, and product placements are the work of influencers. Figure II.1: Getting Closer: Influencers Help Brands Build More Personal Consumer Connections Source: 2021 Nielsen Trust in Advertising However, the problem with perfume marketing is that it differs from other things in that its function and utility can be proved, whereas perfume cannot. Fragrance is a personal preference. Online descriptions rarely correspond to what the consumer imagines. Customers will not know how the perfume smells unless they read other people's reviews on the internet. Therefore, the author wants to delve more into the impact of influencer evaluations on HMNS brand consumer purchase decisions. II. 1. 1. HMNS Perfumery Online Purchase Decision Wiley (2014) claims that traditional celebrities are not as influential as they once were because of the rise of online bloggers who are seen as more honest and approachable. Social media influencers with a lower social level who are interested in fashion or beauty are more relatable to consumers than those with a high social status. Due to the rapid growth of digital activity carried out by 18 the people of Indonesia, particularly in terms of the use of social media, HMNS Perfumery was initially launched online, and its primary focus was on online sales and marketing activities. HMNS Perfumery is inspired to develop a storytelling-based marketing approach in part because it understands the potential of online sales. HMNS is able to connect with a large number of fragrance aficionados in Indonesia by implementing this marketing technique. According to an interview conducted by aludi.id with the CEO and founder of HMNS, Rizky Arief Dwi Prakoso, the primary challenge to building the business is to be able to market perfume online, and a good marketing strategy is required because customers cannot directly smell the perfume; consequently, HMNS need a way to make people understand without smelling it. The aroma, a description of the fragrance of the perfume that will be marketed to the target market is required. The strategy includes sharing information on the product development process, as well as storytelling techniques from people who have previously used HMNS perfume, as well as explaining the scent of the perfume itself. An illustration of the purchase decision funnel will be provided by the researcher in order to gain a better knowledge of the consumer buying decision of HMNS Perfumery and to provide the advertiser with improved chances of selling a product or service. This funnel is essential for gaining an understanding of why certain marketing strategies are successful while others are not. 19 Figure II.2: Purchase Decision Funnel Sources: Author Analysis Following an analysis of the above-mentioned purchasing decision funnel, we can see that the process by which people purchase HMNS perfume is heavily reliant on reviews provided by other individuals who have previously used the product, as well as reviews provided by perfume influencers available on a variety of social media platforms. Since it is closely tied to the role of social media influencers, who utilize social media to spread word-of-mouth marketing (eWOM) and shape consumers' perceptions of businesses, it is necessary to research how influential social media influencers are to customers in purchasing HMNS perfume. According to Nouri (2018), social media influencers might have a greater impact on consumers' perceptions and judgements about pop culture trends relating to beauty and fashion. But, given that fragrance is such a personal choice, how much effect do social media influencers truly have in this industry. To go deeper into the business issue, the researcher will attempt to conduct a 5C technique and root-cause analysis of Brand Awareness Interest Review HMNS Purchase Decision Review Search Product Comparison Get information from online ads, Online marketing campaign, Virality, Pop-up offline store Learn about HMNS products, Read the story of a fragrance, Gain an understanding of the fragrance notes Read review on online blog, Search review on social media, have general perception and feeling about HMNS Perfumery Compare products with competitor, put several products in shopping cart, Review price points Make a purchase Purchase Intention and Evaluation Review shopping cart and making final decision 20 the company in order to make assumptions about the impact of social media influencer marketing in the business being conducted. II. 1. 2. 5C Model Analysis According to the Corporate Finance Institute, 5C analysis is a marketing strategy for examining the environment of a firm. It can disclose the critical success criteria and the risk exposure to a variety of environmental conditions. In this study, researchers will investigate the Company, Collaborators, Customers, Competitors, and Context of HMNS Perfumery first to get to know the assets, whether they have sustainable competitive advantage or not. II. 1. 2. 1.