Flare Fragrances

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Flare Fragrances Company, Inc

.

Final Authentic Assessment
Analyzing Growth Opportunities
MRKT 495

Flare Fragrances Company, Inc

.

Final Authentic Assessment
Analyzing Growth Opportunities
MRKT 495

TABLE OF CONTENTS
SUBJECTPAGE(S)
History1-2
Executive Summary2-3
Statement of challenge3
Evidence Supporting the Challenge3-4
Analysis of Current Situation 5-6
SWOT Conclusion6
Competitive Analysis Conclusion6-7
Current Marketing Mix7-8
Conclusion from Analysis of Current Situation8
Alternative Strategic Solutions (1-4)8-10
Recommendation of Alternative Strategic Solution11
Putting it All Together11-12
Bibliography13
Exhibits A-F14-17
OUR HISTORY
Since its origin as a small manufacturer of women’s perfume in 1955, Flare Fragrances Company, Inc. has grown into the #4 competitor within the women’s fragrance market. Loveliest was introduced in 1975 and has been Flare Fragrances namesake since. In 1996, Flare Fragrances introduced Awash and has introduced a new fragrance every two to three years since, with our most recent being Natural. Jump ahead to 2008, we are in the midst of a recession with most companies making little to no additional profit from the year prior. Flare Fragrance was fortunate to grab a 2% share increase and is contemplating launching their new fragrance Savvy or entering a new channel into Drug Stores. Most importantly, Flare sees their 2% share increase as weak and wants to ensure greater success for 2009. EXECUTIVE SUMMARY

PROBLEM

It is 2008 and the United States is in the midst of a recession, Flare Fragrances is projected to end 2008 with a better recession story then most, they will have experienced a 2% growth. The CEO Joely Patterson is determined to do better in 2009. Arlmont Associates just completed an audit of the company and had several strategic options that might hold the greatest potential for growth. Their first suggestion was to increase efforts in the Drug Store channel; their second suggestion was to introduce a new scent keeping on track with the every two to three years new launch campaign. The question is which will be more beneficial to our company; do we do one, both or neither?

RECOMMENDATION

My recommendation is to not only launch the Savvy line, but to enter into the Drug Store channel as well. Savvy, by Loveliest should be launched as a classical scent geared towards the young stylish upbeat professional woman. The launch should take place around Mother’s Day capitalizing on it as the promotional platform. By using the Loveliest brand name, we will be able to capitalize on its success while keeping marketing cost down due to brand recognition. In addition, we will reposition Awash and Natural within the Drug Store Channel hoping to capitalize on this market, rejuvenate, and increase the demand for these two scents. I would like to table the idea of revamping our current website for future discussion. Revamping of this website could increase internet sales and push us into the global market.

STATEMENT OF MARKETING CHALLENGETo launch a new product or not to launch a new product, that is the question! Enter the Drug Store channel or not enter the Drug Store channel that is the additional question! Do One, Do Both or Go Home will be the ultimate answer. EVIDENCE SUPPORTING THE CHALLENGE

MARKET GROWTH IN SALES

It has been a challenging year for Flare Fragrances, in 2007 we saw a 12% growth rate in the market, in 2008 we project we will only see about a 2% growth margin. The recession has hit some competitors harder than others; some have seen lower than 2% increase in growth, while others had not received any growth. Our goal for 2009 is to see a larger than 2% increase in growth, how do we get there from here will be our biggest challenge.

In 2007 the women’s fragrance market generated...
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