Flare Fragrances Company was started in 1955. It’s a small women’s perfume manufacturer. By 2008 it’s taken up # 4 positions in the women’s fragrance market in the USA. By the year 2008 flare’s estimated factory sales was in the tune of $221 million dollars. The CEO Joely Patterson wants to have new strategic initiative for the year 2009. There are two potential options: increase the efforts in drug store channel or introduce a new perfume brand. ANALYSIS OF THE SITUATION
Market research shows that in 2007, US fragrance market cap was almost $5.7 billion dollars, of which $3.8 billion dollars were from women’s fragrances. Flare’s share in this particular segment is almost 9.5%. In 2007 they have 6 brands: Loveliest, Awash, Summit, Essential, Swept Away & Natural.
In our analysis, they should launch a new perfume targeting men of age 30-40 using natural for men and a new product line targeting younger generation of men using savvy for men. Flare has got a solid market in the mid-tier amongst middle aged women for Loveliest brand. They can target customers who “seek prestige at an affordable price”. By capitalizing on the customer loyalty, the men’s section should be under Flare’s big umbrella as well. They can stimulate the interest of customers by promotion of gift-with-purchase, any customer buying a Natural, Savvy for ladies will get a small sample for men as well. Flare will set up a website surveying the trial customers so they get the feedback as to flavor, price, segmentation. They will attract more buyers when tucked into a box with a lacy western design and a tiny silver lasso that adorns the bottle. The outside of the package will attract a first-time buyer; a quality fragrance will bring buyers back to purchase more. Looking at the customer’s loyalty, if they start marketing other brands more to the mass market, the brand value will keep increasing as Loveliest. ALTERNATIVE STRATEGIES
Flare should try to increase the...