Flare Fragrances Company

I. Situational Audit
A) Industry Analysis: Fragrance Market

1. Market Structure- * Small manufacturer * No. 4 player in the US women’s fragrances market * 93% of sales came from the six lines of fragrances

2. Competitor Analysis * Other fragrances

3. End Users Analysis * Women over 35-65 * Long time users * Tend to have signature scent * Regular purchasers of gifts * Men for buying gifts * First real attempt was to penetrate younger demographic who are interested in current health and green trends

B) Enterprise Analysis: Flare Fragrances Company

1) Administrative Heritage * CEO Joely Patterson * Origins in 1955 * U.S. * Introduced Loveliest in 1975

2) Capabilities Audit

a) Core Strengths * Dominance in sales of fragrances through mass channels * Promotions: Buy one get one free * One of the top in US women’s fragrances market * Hiring and placing managers in offices near key retailers headquarters * Used Loveliest as umbrella brand

b) Core Weakness * 34 years old+ * New brand every 2-3 years * Steady but high prices * Confined in the United States

C) Market Strategy * Sales in premium stores and mid tier department stores * Moved into privately owned pharmacies * Moved into mass market

II. Problem/Decisional Statement

How should Joely Patterson who is the CEO of Flare Fragrances Company reach her goal of $7.5 million by choosing what media plan that Flare’s advertising agency outlined that will make 2009 better than 2008?

III. Heuristic Frames

1. Frame 1: Joely Patterson can choose Plan 1.

2. Frame 2: Joely Patterson can choose Plan 2.

3. Frame 3: Joely Patterson can choose Plan 3.

4. Frame 4: Joely Patterson can continue business as usual.

IV. Issue Analysis

Frame

Pros: *
Cons:
* * Recommendation and Implementation
I recommend that Rosso should which to an endorsement branding strategy for Diesel and StyleLab. It would had benefits from

1) Dynamics of External Environment *

2) Compatibility with Market Strategy * 3) Feasibility