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Flare Fragrance

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Flare Fragrance
Analyzing Flare

Fragrances Co., Inc.

Joseph J Fortunato CR 504
Marketing Management
May, 31, 2011

About Flare Fragrances: Flare Fragrances Company, a small women’s perfume manufacturer, was started in 1955.
Since inception, Flare has grown to be the #4 player in the U.S. women’s fragrance market. For 2008 EOY estimates were $221 million dollars up 2% over 2007 sales. In 1975 Flare introduced the brand “Loveliest” which was their sole focus until 1996 when they introduced “Awash”. Since that time, the company introduced a new fragrance every three years with Loveliest on the label. Early on Flare fragrances sold its brands through premium and mid-tier department stores until the late 1970’s when Flare moved into private pharmacies and in the 1980’s began to mass market in large discount stores such as J.C. Penny, Wal-Mart, Target, and Kohl’s. They stayed away from international markets due to cost. The typical target market for Flare is over 35 with the Loveliest, the Natural which appeals to an under 35 demographic who seek the environmentally safe or green product, and the 25 – 34 for all of the other brands that Flare Fragrances produces.
Problem:
Flare Fragrances although they did make a profit especially through recessionary times, only achieved 2% overall growth in 2008 after a 12% growth figure in 2007 mostly due to economic downturn. CEO Joely Patterson addressing sales and marketing employees told them she was determined to make 2009 a better year. She told the group that they needed to find a way to deliver a minimum of $7.5 million in incremental revenue to reverse the declining sales trend. Arlmont Associates has submitted two recommendations to help Flare achieve this target. First to increase efforts in the drug store channel or to introduce a new perfume brand. She offered these two options as well as asked for someone to come up with a third if the two options seem unachievable. The company would like

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