Flare Fragrance Inc

Only available on StudyMode
  • Download(s) : 825
  • Published : March 20, 2012
Open Document
Text Preview
Executive Summary
This marketing plan isprepared for the case study of Flare Fragrance Inc which operates in the U.S women fragrance market, currently its growth to maturity stage.External analysis has identified political, economical, social, technological and naturalfactors affecting the fragrance market. Most significant being declining U.S fragrance market and trend of tradingof luxury brands to mass alternative, post 2008 financial crisis.Industry analysis identified the U.S fragrance industryto be low in attractiveness. Critical success factors includes originality and innovation, prestige image, meaningful consumer experience, good distribution network and, relationship with retailers. Flare’s portfolio consist of fragrances (93%) and scented-products (7%), with strong umbrella brand,Loveliestmaking upa substantial 3%market share in the saturated market.Company analysis shows weakening of financial position with trend of declining sales growth. Customer analysis identified target segments of women ranging from age 18 to above 35 and also men purchasing gifts for women these segments. Being 4th in market,competitor analysis shows, Flare’s direct competitors to beDepuis, SuzzaneWaber and Aromatique (market shares: 11.5 – 15.6%). Indirect competitors includescented-products and facial care. From the SWOT analysis, the identified core problem is the declining sales growth by 10% in less than year (from 2007). Also, underperformance in the other distribution channels, despite overperforming in mass markets.Flare’sobjective is for incremental revenue by at least 3% in 2009. Proposed solutions include introducing a new brand of perfume,Savvy in the U.S women fragrance market targeting age 18-34, increase distribution of scented-products in mass markets and drugstores, releasing Savvy in the China market instead, supply scented-products to hotel, handwash and air freshener to restaurants. Lastly,it is recommended that Flare increaseits scented-productsin mass market and drugstores to tap into thegrowth in the categoryand increasing traffic in mass markets and drugstores. The competitive U.S fragrance market makes it difficult for Flare’s, as a market challenger to increase its market share or even to reverse its declining sales growth. Lower-priced scented-products also reduce risk of diluting Loveliest as a brand of fragrance. Besides, Flare is recommended to releases its intended launch of Savvy targeting the 18-34 age segment in the Asian market instead of in the U.S.

Table of Contents
Financial position6
Market share7
Brand penetration and brand awareness7
Product7
Place (Distribution Channels)8
Recommendation15

1.0. Market Definition and Trends
* Industry of operation - U.S women’s fragrances market. Market is divided into 3 groups (in descending order of price; premium, mid-tier and mass brands). * In the fragrance market, sales were seasonal, concentrated heavily around Mother’s Day and winter holidays when both men and women purchases fragrances as gifts. * Rising popularity and trend of celebrity and designer fragrances. * Growing consumer traffic in mass market. Upgrades of beauty departments with trendier fragrances and allocation of beauty consultants. * Blurring of retail channels - fragrances first introduced in prestige department stores are now more quicklymadeavailable in smaller sizes in the mass market. * Diminishing exclusivity - increasing availability mid-tier and premium brands through mass channels. * Declining sales through high-end department stores. Also, declining sales of mass brands through mass channel whichironically, is countered by increase in sales of prestige brands through this channel.

2.0. Market Size and Growth
* The U.S fragrances retail market was valued at $5.7 mil in 2007. 66.6% of market share is held by the women fragrances sector and has remained steady over time. As of 2008, 74% and 75% of adult women and...
tracking img