Flare Fragrances Company, Inc: Analyzing Growth Opportunities

Group 3 – Ojaswini, Chaitra, Manvita,Rashmi ,Anjali
Flare Fragrances Company , Inc: Analyzing Growth Opportunities
1. Should the new perfume be launched ?

Yes. It should be launched. Reasons being:
 Steady market
 Good visibility in upscaling drug store
 It would help Flare’s visibility in departmental store.
 Customers vouch for Flare as it is a prestige issue to own a Flare product.
 Cash in on the “Halo effect” created by “ Loveliest”.
 Flare needs to be consistently demonstrate its presence in the market by launching new
varieties, something for everyone.
 Flare already has a successful advertising and promotional campaign done wherein the
small prepacks and the discount coupons were popular and helped increase the sales.
Also, the brands that do not evolve, eventually die.
2. Does it make strategic sense?If, Yes, how should your branding be?
- The branding should be line extension of the existing brand. The brand should focus on
the younger ladies as “Savvy” symbolizes the personality of the customer. Flare has low
appeal in younger age.
- Flare has always focused on older segment and has a classic appeal. ( Exhibit 3) So the
new perfume should target young ladies, girls who have a flair for perfumes. Secondly
the packaging would have to reflect the today’s generation. The packaging should be
trendy, vibrant.
- As the target customer is the younger generation, the brand could also focus on smaller
packs, gift packs with scented shower gels, soaps, wrist roll ones, etc how ever they
should focus more on the main line that is perfumes as this accounts for 93 % of their
sales.
- Flare could tie up with Aroma therapists and essential oil experts and market on the
health benefits of the new variants.
3. How would you launch it ?

Qualities of Target customers:
Age Group: 18-36
Chic, brand oriented. Mindful of prestige and image. Elegance and exclusivity. Belief in
word of mouth. Ready to try out new products.
Distribution channels: Mass Stores, Departmental stores
Savvy should be launched with the “Loveliest” umbrella branding. Following are the
reasons:
 Increase audience without any baggage of the loveliest branding
 Opportunity for expansion in future and increase in sales
 Huge market open for the taking
 Parent company provides credibility and aspirational value
 Opportunity to break away from association with only old people
We will position Savvy as a Classic brand that caters to younger adults. With this classic
branding, Savvy would be attracting a different group of consumers as compared to
Dulcet. This would minimize the direct competition between these 2 brands. Similarly,
the target age group will remain at 18 to 34. However, we have decided to launch 2
versions of Savvy; Savvy Deluxe and Savvy Belle. The former will be launched first and
seeks to target those 25 to 34 whilst the latter will be introduced three months after the
release of the former, catering to those between 18 and 24.
To ensure exclusivity Deluxe will be sold only in luxury departmental stores and Belle
will be sold in specialty and mass stores. This is to cater to the need for exclusivity and
prestige that customers want.
Product: Place:
Savvy Mass Market Channels,e-
retailers,convenient locations
Price: Promotion:
 Relatively the same as other flare  Coupons and advertisement
fragrance products through online media (e-mails,
 $30 - $40 range social media pages)
 Store pop-up displays
 Collaborate with local businesses
 Collaborate with young
professional job places and host
shopping events
 Catchy tagline: Bring out the
Classy you!
4. What budget should you ask for the launch from your manager?
Budget is based on a percentage of average industry sales.
Total amount needed to move sales from current state to desired state is the total
budget.
10% of 2008’s sales total and 10% of new product’s projected sales is used to arrive at
2009’s promotional budget. I.e $22, 862,926.
This would not affect the pricing strategy.

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Group 3 – Ojaswini, Chaitra, Manvita,Rashmi ,Anjali

Flare Fragrances Company , Inc: Analyzing Growth Opportunities

1. Should the new perfume be launched ?

3. How would you launch it ?

Distribution channels: Mass Stores, Departmental stores

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