Case Study essay

An analysis of 2009 strategic initiatives had launched by the CEO, Jolly Patterson with termination to make 2009 better than 2008. Arlington Associates, the Flare Fragrances’ consulting group suggested that several strategic options can offer the greatest potential for growth. First, increase efforts in the drug store channel and second, introduce new perfume brand. In the analysis, Flare Fragrance has two options whether the can proceed either one or proceed both as long as the company can deliver at least $7. 5 million incremental revenue in 2009 and reverse the declining sales trend.

If the strategy works, the founders can consider taking the company public. So that Jolly Patterson deed his team to review their company strategic planning in order to determine the company’s direction. The Company’s positioning statement is to expand into new markets with focus on reaching all levels of demographics, while maintaining their prestige and providing affordable alternatives. 2. Flare Fragrance (Company Background) Rare Fragrance started a manufactured women’s perfume since 1955 and had grown into the no. 4 player in the US. Women’s fragrance market.

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Currently, Flare Fragrance has introduced few brands such as Loveliest, Awash, Natural, Summit, Essential, Swept Away and Mixed Prepares. However, the most powerful brands is Loveliest which has known as an umbrella brand for Flare Fragrance. In the late of asses, Flare had moved into private owned pharmacies while in asses into the mass market. Currently, the sales of the fragrance distributed through four channel; Mass market, drug stores, department stores and other channels including through Internet. One of Flares greatest strengths was its dominance in sales of fragrance through mass channels with contribution of 69. % of total sales in Rare Fragrance. Based on the U. S. Retail market for fragrance, the share held y women’s fragrance was 66. 6% of the U. S. Retail market where Flare products generated 9. 5% of that total. Loveliest is positioned as a classic scent associated with prestige and elegance, giving a strong appeal among women Over age 35 while Natural is reaching a slightly younger demographic that is seeking environmentally safer. Now, Flare Fragrance have a range of perfumes that appeal to the 25-34 demographic in order to combine other brands that target women starting out in their career. . SOOT Analysis We made a SOOT analysis to take a closer look at Flare Fragrance strengths, nakedness, opportunities and threats to identify possible new strategies and implementation plans. 3. 1 SOOT Analysis of Flare Fragrance STRENGTH 1. Flare is the No. 4 player in the U. S. Women’s fragrances market. 2. Loveliest is maintaining its 3% share of the market-$77 million. 3. Flare dominates sales of fragrances through mass channels. WEAKNESSES 1 . The company was confined to the Ignited States. 2. The drugstore sales team lacks experience and management level. OPPORTUNITIES 1.

The drugstore sales team lacks experience and management level. 2. Traditionally higher-end fragrances will be the best performers in the coming ears. 3. Department/drugstore channel have huge markets but Flare accounts for only 5. 7% and 2. 6%. THREATS 1. Major competitor Aromatic would launch a new perfume brand, Dulcet. 2. Mid-tier and premium brands increasingly available in mass channels. However, there are few options to evaluate: 3. 2 SOOT for the SAWS 1. Favorable response from the focus group. 2. Target customer being 18-34 aged group women, for whom the name would nee definitely catchy. . If attached with Loveliest. There could be more benefits. 4. There are fair chances of the sales growth. 5. Customers loyal to the brand “Loveliest” will be drawn towards Savvy too. WEAKNESS 1. Launching a new product has risk factors attached to it. 2. Centralization of current sales will also include certain risk in it. 3. Price is at a higher side. 4. Focus has to be put completely on it as the promotions and advertising would take a lot of efforts. OPPORTUNITY 1 . Target a new customer segment that id young and always ready to try something new and exciting. 2.

Being in the Prestige category, there is a chance to be accepted by the Innovators, Achievers, Thinkers and Believers, as per the VAL’S framework. 3. After success in the Prestige category, other VAL’s zone and also can come up with other varieties to suit different age groups. 4. Apart from welcoming an innovated product, this can also build good relationships with the department store. 5. Stagnation of the product is also prevented. THREAT 1. Dulcet Brand could give a tough competition. 2. There is already a pool of competitors in the market. 3. The financial state of Flare is also at a poor situation.

Marketing MIX 5. 1 price Targeting a new price category that ranges from $30-$45, will allow Flare Fragrance to take sales from their competition. Economic climate pushes customers to more affordable retail outlets, such as drugstores product Naturals current performance in Drugstore channel: 0. 5% of all perfume sold Natural has been on the market for two years – this brand has been marketed under the Loveliest umbrella The natural product promotes the green initiative The product placement and promotion needs to avoid stealing market shares from their own products Utilize their existing market strategy for expanding their product notoriety 5.

Place Flare has not leveraged their potential success at the Drugstore channel – developing the Drugstore channel through negotiating store relationships and product placement. Drugstores are an underdeveloped retailer that evolving offering high-end beauty feature which range in price from 30-$45. Work with the drugstore chains to have their product placed in a more ‘upscale’ product location. Have product physically in the stores and available online. 5. 3 Promotion Utilizing prominent display cases to showcase Flare Fragrances. Implementing holiday promotions which entail gift baskets of soap, body mist, and Natural arrogance. A free gift with purchase promotion will increase sales and expand the consumers usage of Flare Fragrances.

Targeting promotion to reach a younger market – studies show that 75% of teen girls, 74% of adult women use fragrance products. Price discounts for purchases and buy one get one free deals. Promote to reach younger customers through their affordable offering deals and packages. Creating a partner with echo/green-charity and promotions that coincide with Earth Day. Become a sponsor of green fashion events to support the green initiatives 6. Recommendations and Implementation Flare should expand their existence in the market by doing several things; Flare should introduce a new Scent into the market. After doing the market analysis and product development in the marketplace, Flare should be able to know the kinds of scent that customer’s needs.

Tastes and likings of customers keep on altering and companies that want to remain competitive in the marketplace must guarantee that they keep up with these drifts in the market. Existing Channels/Markets New Chain Nell/Markets Existing offerings Market penetration (natural’ – Drugstore) New Channel Development New offerings New Offering Development Savvy) Diversification Saws should be under the umbrella of Loveliest for the halo effect and easily able to penetrate into the market Of perfume or fragrance and able to fight against the new competitor’s launch brand. By this, it will give the group a fast and speedy to make huge profits and capture new market. We further feel that Flare Corporation should also ponder upon extending in to the drug channel.

The drug network would offer revenue to the company when the fragrance line is down. Drug dispersal has one of the highest success rates in the market. This fact could be credited to the poor lifestyle and eating habits f people all over the world. This has led to illnesses like diabetes, heart failure, kidney and liver problems. All these sicknesses must be cured with medication. The drug network business chance is a viable and is highly profitable especially for suppliers, who usually get higher numbers of deals as compared to makers. Given the economic situation of Flare; with declining sales, the enterprise needs such a promising business venture that will turn around its sales direction and make it positive.

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