Flare Fragrance Inc
Executive Summary
This marketing plan isprepared for the case study of Flare Fragrance Inc which operates in the U.S women fragrance market, currently its growth to maturity stage.External analysis has identified political, economical, social, technological and naturalfactors affecting the fragrance market. Most significant being declining U.S fragrance market and trend of tradingof luxury brands to mass alternative, post 2008 financial crisis.Industry analysis identified the U.S fragrance industryto be low in attractiveness. Critical success factors includes originality and innovation, prestige image, meaningful consumer experience, good distribution network and, relationship with retailers.
Flare’s portfolio consist of fragrances (93%) and scented-products (7%), with strong umbrella brand,Loveliestmaking upa substantial 3%market share in the saturated market.Company analysis shows weakening of financial position with trend of declining sales growth. Customer analysis identified target segments of women ranging from age 18 to above 35 and also men purchasing gifts for women these segments. Being 4th in market,competitor analysis shows, Flare’s direct competitors to beDepuis, SuzzaneWaber and Aromatique (market shares: 11.5 – 15.6%). Indirect competitors includescented-products and facial care. From the SWOT analysis, the identified core problem is the declining sales growth by 10% in less than year (from 2007). Also, underperformance in the other distribution channels, despite overperforming in mass markets.Flare’sobjective is for incremental revenue by at least 3% in 2009.
Proposed solutions include introducing a new brand of perfume,Savvy in the U.S women fragrance market targeting age 18-34, increase distribution of scented-products in mass markets and drugstores, releasing Savvy in the China market instead, supply scented-products to hotel, handwash and air freshener to restaurants.
Lastly,it is recommended that Flare increaseits scented-productsin
This marketing plan isprepared for the case study of Flare Fragrance Inc which operates in the U.S women fragrance market, currently its growth to maturity stage.External analysis has identified political, economical, social, technological and naturalfactors affecting the fragrance market. Most significant being declining U.S fragrance market and trend of tradingof luxury brands to mass alternative, post 2008 financial crisis.Industry analysis identified the U.S fragrance industryto be low in attractiveness. Critical success factors includes originality and innovation, prestige image, meaningful consumer experience, good distribution network and, relationship with retailers.
Flare’s portfolio consist of fragrances (93%) and scented-products (7%), with strong umbrella brand,Loveliestmaking upa substantial 3%market share in the saturated market.Company analysis shows weakening of financial position with trend of declining sales growth. Customer analysis identified target segments of women ranging from age 18 to above 35 and also men purchasing gifts for women these segments. Being 4th in market,competitor analysis shows, Flare’s direct competitors to beDepuis, SuzzaneWaber and Aromatique (market shares: 11.5 – 15.6%). Indirect competitors includescented-products and facial care. From the SWOT analysis, the identified core problem is the declining sales growth by 10% in less than year (from 2007). Also, underperformance in the other distribution channels, despite overperforming in mass markets.Flare’sobjective is for incremental revenue by at least 3% in 2009.
Proposed solutions include introducing a new brand of perfume,Savvy in the U.S women fragrance market targeting age 18-34, increase distribution of scented-products in mass markets and drugstores, releasing Savvy in the China market instead, supply scented-products to hotel, handwash and air freshener to restaurants.
Lastly,it is recommended that Flare increaseits scented-productsin