Case Study FLARE FRAGRANCE
Table of contents Page
1 Situation analysis / Problem statement 2
2 Introduction – Flare Fragrance (Company Background) 2
3 SWOT Analysis 3
4 Objectives and Financial Analysis 5
5 Marketing MIX 7
6 Recommendations and Implementation 9
7 Conclusion 11
8 References 12
1. Situation analysis / Problem statement
Flare Fragrance is facing in declining of growth rate in 2008 where the CFO estimated year-end numbers projected only 2% growth in 2008. Compare to 2007, sales had risen 12% which was much better than in 2008. An analysis of 2009 strategic initiatives had launched by the CEO, Joely Patterson with determination to make 2009 better than 2008. Arlmont Associates, the Flare Fragrances’ consulting group suggested that several strategic options can offer the greatest potential for growth. First, increase efforts in the drug store channel and second, introduce new perfume brand. In the analysis, Flare Fragrance has two options whether the can proceed either one or proceed both as long as the company can deliver at least $7.5 million incremental revenue in 2009 and reverse the declining sales trend. If the strategy works, the founders can consider taking the company public. So that Joely Patterson need his team to review their company strategic planning in order to determine the company’s direction.
The Company’s positioning statement is to expand into new markets with focus on reaching all levels of demographics, while maintaining their prestige and providing affordable alternatives.
2. Flare Fragrance (Company Background)
Flare Fragrance started a manufactured women’s perfume since 1955 and had grown into the no.4 player in the U.S. women’s fragrance market. Currently, Flare Fragrance has introduced few brands such as Loveliest, Awash, Natural, Summit, Essential, Swept Away and Mixed Prepacks. However, the most powerful brands is Loveliest which has known as
1 Situation analysis / Problem statement 2
2 Introduction – Flare Fragrance (Company Background) 2
3 SWOT Analysis 3
4 Objectives and Financial Analysis 5
5 Marketing MIX 7
6 Recommendations and Implementation 9
7 Conclusion 11
8 References 12
1. Situation analysis / Problem statement
Flare Fragrance is facing in declining of growth rate in 2008 where the CFO estimated year-end numbers projected only 2% growth in 2008. Compare to 2007, sales had risen 12% which was much better than in 2008. An analysis of 2009 strategic initiatives had launched by the CEO, Joely Patterson with determination to make 2009 better than 2008. Arlmont Associates, the Flare Fragrances’ consulting group suggested that several strategic options can offer the greatest potential for growth. First, increase efforts in the drug store channel and second, introduce new perfume brand. In the analysis, Flare Fragrance has two options whether the can proceed either one or proceed both as long as the company can deliver at least $7.5 million incremental revenue in 2009 and reverse the declining sales trend. If the strategy works, the founders can consider taking the company public. So that Joely Patterson need his team to review their company strategic planning in order to determine the company’s direction.
The Company’s positioning statement is to expand into new markets with focus on reaching all levels of demographics, while maintaining their prestige and providing affordable alternatives.
2. Flare Fragrance (Company Background)
Flare Fragrance started a manufactured women’s perfume since 1955 and had grown into the no.4 player in the U.S. women’s fragrance market. Currently, Flare Fragrance has introduced few brands such as Loveliest, Awash, Natural, Summit, Essential, Swept Away and Mixed Prepacks. However, the most powerful brands is Loveliest which has known as
References: - Chang G., Chao P., Shan Lu. Flare Fragrance. Slide Share. Retrieved from http://www.slideshare.net/peiyunchao/flare-fragrance Pratikshya Mishra. The Flare Case Study. Slide Share. Retrieved from http://www.slideshare.net/pratikshyamishra1/flare-case-study-savvy Hualu Zhou. Flare Fragrance Company, Inc: Analyzing Growth Opportunities. Retrieved from https://www.scribd.com/doc/69339378/Flare-Fragrance-Case Jayalakshmi Nair. Flare Fragrances: Strategizing 2009. Retrieved from https://prezi.com/bd_jsivlmg1-/flare-fragrance/ Jason Brooks. Flare Fragrances. Retrieved from https://prezi.com/eaxrfolz58ho/flare-fragrances/