Flare Fragrance Company, Inc is of the most successful and the leading producers of Women’s fragrance in U.S. They are also No.4 player in the U.S. Women’s fragrance market. They are only concentrating on the women products like perfumes. Due to recession they are force to face difficulties and challenges in company’s growth.
Problem Identification The important problem that faced by the Flare Fragrances Company is its growth rate. In 2007 they have the growth rate of 12%. But compared to 2007 they have only 2% growth rate in 2008. The difficult environment situations are created growth challenge for this company. Another problem facing that they are only best sellers in the mass market only. Their sales are not good in prestige department stores, drugstore chains and other channels including internet also.
Alternative Scenarios After the completion of market research by the consulting group, Arlmont Associates giving two options to increase the growth of Flare Fragrance Company, Inc in 2009. First one is increase the effort in drugs store channels and the other one is introduce a new perfume brand Savvy. After considering all factors we can select any one of the following option.
• Expansion of business into Drugstores Channels
• Launching a New Brand Savvy
• Launching a Premium Brand Targeting at Prestige Group
Analysis
When implement the expansion of drug store channel, there is a chance of damage the relationship between the other retail accounts and only 20% of customers they shop at drugstores for their fragrance purchase. But it helps in increasing revenue and increase the share in drugs store channel. In the case of launching a Premium Brand, it requires a huge amount of investment and it’s also having a high cost. It has another risk is that; there is a possibility of failure in launching the product. When it succeeds it ensure flow in the products through esteemed department stores

And ensure a huge profit. It helps to open a new opportunities in esteemed market and also helps to bring platform to launch new premium products into the market. But in the case of launching new brand Savvy is the repetition of existing Flares brand and there is also a possibility of failure in launching the product. When successfully launch the product, it will helps to increase the growth and at the same time it gives a opportunity to launching new product and continue the same product line(under the Loveliest brand).
Recommendations
In the above analysis we can say that the best opportunity to make high growth is in the way of launching a new premium product. Reason for that the new brands of Flares target consumers are the women aged between 35 and 64. According to Exhibit 5, They are most prefer to buy prestige fragrance brands. And they were more likely to be loyal to a favorite brand and scent. These are increases the opportunity of launching the premium brand and also it gives high return. After the success in this product in the prestige market Flare can also introduce the series of premium products in the market. It also ensures the constant stability in the market and helps in increase the growth opportunity.
Lesson learned When introducing or expanding a product, we must conscious about the market conditions and the consumer’s behaviors. And also finds the maximum alternative methods to achieve our goals. When we are achieved to get proper information’s from the market , then it will positively effects in our decisions.
References
• Harvard Business School, Briefcase