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Flare Fragrance

In: Business and Management

Submitted By rbednarz
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Flare Fragrances Company, Inc.
Analyzing Growth Opportunities


Connor Skelly, Rob Bednarz, Brandon Bao, Purvish Patel

Problem & Solution

In light of the recent recession, Flare Fragrances has experienced a significant decline in revenue, though still staying in positive growth. A decision must be made as to how Flare will bounce back from the recession while also gaining market share in an already crowded market. Advertising budgets are consistently inferior to the competition as Flare depends heavily on the Loveliest brand name, its recognition, and halo effect on the other products. Flare is also under pressure by their biggest competitor, Aromatique, who will launch a new product in the coming months priced at $42. With Flare’s successful latest release of Natural, an eco-friendly fragrance targeting millennials, is important to keep newer and younger consumers in mind while also keeping the current, loyal customers, happy. The recommended solution is to develop and implement the brand Savvy, under the Loveliest umbrella, for 2009 at a price of $40. The new product will stay consistent with biannual releases that Flare has implemented. After Natural’s successful launch, it is expected that Savvy will receive very positive feedback and have at least an equally successful launch. The price point reflects the evidence showing pricier fragrance sales will be on the rise in the years after the recession. By staying under the Loveliest umbrella, there will be higher brand recognition and advertising and packaging costs will be reduced, thus enabling a higher promotional budget that will match competitors. By increasing the age bracket to 18-34 for Savvy, Flare’s market share is bound to increase as the 35-65 age bracket remains loyal. Customers will be more likely to stay within the Loveliest brand due to the large variety of products....

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