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    Flare

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    Veni Gupta
    Flare Fragrances is the 4th largest player in the US women's fragrance market, accounting for 9.5% of sales. 93% of Flare's sales come from its six core fragrance lines. To meet a 3.4% sales growth target, Flare is considering introducing a new perfume brand called Savvy targeted at young women. While this strategy could help boost sales, directly competing with an existing brand risks cannibalizing other product lines. Positioning Savvy as a brand for young classic women could avoid these issues while resonating with customers. With the right marketing plan, Savvy has potential to help Flare meet its growth target.

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    Flare

    Uploaded by

    Veni Gupta
    51 views1 page
    Flare Fragrances is the 4th largest player in the US women's fragrance market, accounting for 9.5% of sales. 93% of Flare's sales come from its six core fragrance lines. To meet a 3.4% sales growth target, Flare is considering introducing a new perfume brand called Savvy targeted at young women. While this strategy could help boost sales, directly competing with an existing brand risks cannibalizing other product lines. Positioning Savvy as a brand for young classic women could avoid these issues while resonating with customers. With the right marketing plan, Savvy has potential to help Flare meet its growth target.

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    Flare Fragrances is the 4th largest player in the US women's fragrance market, accounting for 9.5% of sales. 93% of Flare's sales come from its six core fragrance lines. To meet a 3.4% sales growth target, Flare is considering introducing a new perfume brand called Savvy targeted at young women. While this strategy could help boost sales, directly competing with an existing brand risks cannibalizing other product lines. Positioning Savvy as a brand for young classic women could avoid these issues while resonating with customers. With the right marketing plan, Savvy has potential to help Flare meet its growth target.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    51 views1 page

    Flare

    Uploaded by

    Veni Gupta
    Flare Fragrances is the 4th largest player in the US women's fragrance market, accounting for 9.5% of sales. 93% of Flare's sales come from its six core fragrance lines. To meet a 3.4% sales growth target, Flare is considering introducing a new perfume brand called Savvy targeted at young women. While this strategy could help boost sales, directly competing with an existing brand risks cannibalizing other product lines. Positioning Savvy as a brand for young classic women could avoid these issues while resonating with customers. With the right marketing plan, Savvy has potential to help Flare meet its growth target.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 1

    Flare Fragrances Company, Inc.

    : Analyzing Growth Opportunities – Group D5

    1. Understand Flare’s position in women’s fragrance market.

     Market and Competition: Starting out as a small manufacturer of women’s fragrances in 1955, Flare
    has grown into the No. 4 player (behind competitors Depuis, Suzanne Weber and Aromatique), accounting
    for 9.5% (~$361 million) of the total U.S. retail market for women’s fragrances (~$3.8 billion). This is a highly
    cluttered market, with 400 new fragrances being launched in the U.S. in 2007 alone.
     Product Mix: By 2007, 93% of Flare’s sales came from its six lines of fragrances, while the remaining
    7% was attributed to other brand extensions/products that were part of gift packs. The contribution to 2008
    projected sales of each of the products is shown in Fig 1.
     Place (Distribution): Mass market is the main distribution channel, followed by department stores (Fig
    2).
     Promotion: Flare’s communication budget is roughly 19-20% of sales, with 56-58% of the budget
    being spent on media, advertising and web promotions. Loveliest is the most aggressively advertised brand.
     Pricing: Flare’s brands are sold at price points for $30-$36 (with Loveliest at $32), placing them in the
    mid-tier categories of fragrances.

    2. What are the pros and cons of Flare’s possible growth strategies?

    Patterson requires a minimum of incremental $7.5 million sales in 2009, which implies a 3.4% YOY growth over the current
    2008 sales of $221 million. The strategies should therefore be evaluated on their ability and probability to achieve this target.
    Strategy Pros Cons
    Increase efforts in - Currently under-utilized; may help achieve - In conflict with the ‘prestige’ image
    the drug store penetration - Direct competition with mass brands
    channel - Opportunity as drug stores will have higher-end
    features
    Introduce Savvy - Venture into the young demographic with an - Will be pitted against Aromatique’s
    for young chic image independent of Loveliest to increase sales Dulcet
    segment through department stores - May partly cannibalize Natural
    Increase budget - Caters to the young demographic; potential to - Not enough to meet target (assuming
    of Natural increase sales if promotion investments are made YOY growth=30%); very niche
    Building other - Currently low contributor, scope for more sales - Tangential to core marketing and sales
    scented products during gifting occasions expertise
    Introduce Savvy - Positioning resonates with results of FGDs *********
    for young classic wanting image of elegance and exclusivity within
    segment 18-34 demographic
    - Avoid competition with Dulcet, and
    cannibalization of Natural

    3. Should Joely Patterson introduce the new perfume brand?

    Joely Patterson can introduce the new perfume brand Savvy to achieve the incremental sales target. However, it is suggested
    to change the positioning from the chic segment to the classic segment for the young demographic to avoid competition with
    Dulcet and cannibalization of Natural. **Some calculations on expected sales, and which media plan to use.**

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