...exclusively at the department store, mainstreaming into mass markets; or being sold in the mass market from the beginning. Channel Available Exclusive in high-end department stores Channel strategy should be consistent with the brand image. Stay exclusive to drive word of mouth. Department store is not as popular as mass market but it still has a big market share of the total fragrance market. SWOT analysis Strengths •Name •Favorable sales projections Weaknesses •Unknown brand name •Cannibalization of current sales •For-go investment in current, established brands •Higher price Opportunities •Reach a new customer segment: 18 – 24 year old females •Arlmont study predicts prestige image fragrances will be best performers •Innovation and originality •Build relationships with department store channel Threats •Dulcet brand to be launched at same time •High competition in market •Difficult economic conditions – consumers trade down •Declining sales in high-end department stores •New fragrance may migrate to mass market quickly •Competitors outspending Flare in advertising Savvy (by loveliest) Advantages: less marketing costs, halo effect; tap into the young segment. Disadvantages: hard to build up a new brand with younger image; conflict with umbrella brand More money on the product line Advantages: more support to develop brand; better effect in current product line. Disadvantages: haven’t launched a new product since...
Words: 406 - Pages: 2
...rP os t 4 1 1 -S 0 6 25 DE MAYO, 2005 JOHN A. QUELCH LISA D. DONOVAN op yo Flare Fragrances Co., Inc.: Análisis de las Oportunidades de Crecimiento tC A comienzos de diciembre de 2008, había llegado el momento de que Flare Fragrances Co. lanzara su análisis final de sus iniciativas estratégicas para 2009 y el grupo de 10 empleados de ventas y marketing que estaba en la principal sala de conferencias de Flare podía ver por la expresión de su cara que la CEO, Joely Patterson, estaba decidida a lograr que 2009 fuera mejor de lo que había sido 2008. La crisis económica había golpeado los negocios de Flare. En 2007, las ventas habían subido 12%, ahora, menos de un año después, las cifras de fin de año estimadas por la Gerencia de Finanzas proyectaban un crecimiento de sólo 2% para 2008, una historia de recesión mejor que la que podían contar algunos negocios, pero no una tendencia que Patterson o los fundadores de la compañía quisieran repetir en el año que se aproximaba. Do No “Los felicito por sobrevivir en un clima económico duro y les doy las gracias por su esfuerzo laboral,” dijo Patterson al grupo. “Por muy buenos que hayamos sido, ahora tenemos que ser mejores. Estamos aquí para analizar el estudio que nuestro grupo de consultoría, Arlmont Associates, presentó el lunes. Como han leído, Arlmont sugirió que hay varias opciones estratégicas que ofrecen el mayor potencial de crecimiento. En este momento, yo prefiero las dos que Arlmont...
Words: 6458 - Pages: 26
...Flare Fragrances Company Case Problem Flare Fragrances is experiencing declining sales growth. Arlmont Associates suggested two options that Flare Fragrance can do to increase sales growth. The first option is to increase efforts in the drug store channel. The second option is to introduce a new perfume brand. Whatever decision they make it will need to deliver $7.5 million in revenue for 2009 and reverse their declining sales growth trend. Analysis The first option to look at is to increase efforts in the drug store channel for the existing Flare Fragrances brands. The total market sales from 2007 in the drug store channel was only about 17% (Exhibit 1). With that being said this channel is not as profitable as department stores some drug store chains are beginning to put aestheticians, beauty experts, which may help this channel grow in respect to market share of the total market. This would be a great opportunity for Flare Fragrances to pursue this channel more and increase their sales. The next option is to introduce Savvy. One of the strengths that Savvy has is the name itself. It is viewed as stylish, upbeat, and classy. The price of $40 per 1.7 oz. spray bottle could also be seen as a strength for Savvy because it gives the product a prestige image and puts it in the Mid-Tier brands category. This price would be competitive against the introduction of Aromatique’s perfume, Dulcet, which is estimated at a price of $42. Introducing Savvy independently...
Words: 667 - Pages: 3
...Flare Fragrances is a manufacture of women’s perfumes since 1955. The association with the company’s product is the elegant and luxury lifestyle. The company reached a number 4 player in US fragrance market. It is launched its signature brand «Loveliest» in 1975 and had significant growth(34,9% in total sales) in its shares. During coming years the firm introduced 6 more perfumes all under the label Loveliest: Awash (6,3% of total sales, Summit (22.6%), Essential (16.9%), Swept Away (23.4%) and the most recent Natural (9.1%). The Flare Fragrances with all their perfumes generated 9.5 % of the total 66.6% of the U.S retail market of fragrances. By 2007, 93% of Flare Fragrance come from it’s six lines of fragrances. However, Flare Fragrance has been faced a growth challenge in a difficult economic environment. Decline in Growth Rate was from 12% growth in 2007 to 2% growth in 2008. There are different reasons for a decline in Growth. Firstly, company had underutilized market for young women(18-34 years old). Secondly, increased competition in the market. The company had comparatively low spending on the advertising. Another reason is that Flare Fragrances had relatively low sales in distribution areas. The corporation had to choose one of the strategies proposed by its consulting group in order to remain afloat. CEO of the company, Joelly Patterson, underlines two possible opportunities to her marketing team to evaluate. One of the possibilities of future development...
Words: 1257 - Pages: 6
...Flare Fragrances Company Inc Definition of Success: In order for MEC to change the negative impression of their private-label and increase market share to 3 percent and profit by approximately $92 million (Exhibit 7) within 5 years, MEC will need to address the following: 1. How to educate and communicate to the consumers regarding production and design so that market share increases by 0.36 percent per year for the next 5 years. 2. How to decrease cost of sales by 16.7 percent of the private label merchandise so that the gross margin increases to 50 percent by 2014. 3. How to enhance the competitive advantage of green initiative by increasing sales by approximately $619,325(in thousands) to put toward the environmental fund and patronage return in order to contribute to a market share increase of 0.36 percent per year for the next 5 years. Decision Criteria * Operational/Ethical- Support the creation and stewardship of parks and recreation opportunities in Canada, to foster a change toward environmental, social and economic sustainability in the marketplace by maintaining the 1% contribution for the planet. * Marketing- Change the perception customers have on how MEC performs its business, shown through an increase in sales and/or the number of members to contribute to the required 1.8 percent increase in market share. * Financial/ Marketing- Increase market share through increasing sales by 1.8 percent over the next 5 years. * Financial-...
Words: 662 - Pages: 3
...BRIEF CASES HARVARD BUSINESS PUBLISHING 4550 2010. május 5. JOHN A. QUELCH LISA D. DONOVAN Flare Fragrance Inc.: Növekedési esélyek elemzése 2008. december első napjaiban járunk. Joely Patterson, a Flare Fragrance vezérigazgatója és az értékesítési és marketingmenedzserek egy tízfős csoportja a Flare legnagyobb konferenciatermében ülésezik. A téma a 2009-es évre javasolt stratégiai alternatívák. Az értekezlet-sorozat utolsó fázisánál tartottak és Patterson arca kemény elszántságot sugárzott. A résztvevők tudták, hogy a 2009-ben jobb eredményt kell elérniük, mint 2008-ban. A gazdasági válság a Flare-t sem hagyta érintetlenül. 2007-ben az eladások még 12%-kal emelkedtek, de most közel egy év elteltével a 2008. év végi adatok már bizton láthatóak voltak. A növekedés mindössze 2%-os lesz. A jelenlegi recesszióban sok vállalat örült volna ennek az eredménynek, de Patterson és a cég alapítói a következő évben már nem ennek a trendnek a folytatását akarták látni. Patterson a következő szavakkal nyitotta meg az értekezletet: „Tisztában vagyok azzal, hogy nagyon keményen dolgoztatok, a ti érdemetek is, hogy ebben a nehéz gazdasági helyzetben még talpon vagyunk, és ezért köszönettel tartozom nektek. Jók voltunk, de jövőre még jobbnak kell lennünk. Azért jöttünk ma össze, hogy a tanácsadó cégünk, az Arlmont és Társai által hétfőn benyújtott tanulmányt megvitassuk. A tanulmányban – ahogy azt ti is olvashattátok – Arlmont több stratégiai alternatívát is fölvázolt. Ezek mindegyike...
Words: 5056 - Pages: 21
...Flare Fragrances Company, Inc. Case Analysis Since 1955, Flare Fragrance Co. has grown to be the No. 4 player in the U.S. women’s fragrances market and generated $221 million in factory sales in 2008. The economic crisis had taken its toll on Flare over the past few years. The CEO wants to finalize Flare’s 2009 strategic initiatives and is looking at options that will offer the greatest potential for growth. Flare’s goal it to pursue an option that will allow the company to gain at least $7.5 million in incremental revenue in 2009 and reverse the declining sales trend caused by the recession. To make a justified recommendation for Flare, an analysis of the advantages and disadvantages of the company’s options are reviewed in Figure 1. Figure 1 Option 1: Advance in drugstore channel Advantages Disadvantages • Considered a great prospect market in the future • Market trends should decline in sales through high-end department stores and mass channels • Reorganized chain drugstore sales team with experience • Redesigned stores will attract younger women • Drug chains are evolving, some with higher-end features, on-site aestheticians • Typically, consumers first experience a product in a department store • No beauty advisors • Consumers can find premium and mid-tier fragrances in mass market retailers • Meaningful consumer experiences can create shopper retention among specialty stores and mass market retailers • Only wanted to sell Flare’s highest-turnover...
Words: 2695 - Pages: 11
...Next in Air Care Scent Trends? Article | 18 Aug 2011 Fragrance developments have moved air care from the functional to the emotional, but what does that mean for future trends in scent? Air Care No Longer a Cover Up Not so long ago, the primary if not only function of air fresheners was to mask unpleasant odours, but clever marketing over the last decade has brought a complete change in consumer perceptions of the category's purpose. As home care manufacturers came to recognise the competitive advantage of offering new and unusual fragrances in their ranges in order to drive sales, scent innovations brought about more experiential and complex fragrances, resulting in a shift in focus for the entire air care category. Consumers no longer turn to air care products only when there are nasty smells to be removed or masked; they now buy into the category when they want to enhance the environment in their homes. A category that once could have been considered almost a commodity used only out of necessity has been subtly transformed into a category deeply connected to consumers' emotions. The scent of success Although one of the most expensive ingredients in any home care product, fragrances are worth manufacturers' investment in terms of time and money as they are extremely important to a product's success. A unique scent can be a powerful differentiator, giving a product the edge in an otherwise saturated market. Fragrance is a crucial factor in the consumer's final purchase...
Words: 2859 - Pages: 12
...Christmas assignment: Ben was sitting in his living room reading a book by the fireplace on Christmas Eve. He had lost contact with his family and girlfriend long ago, when he was deployed in Afghanistan by the army, so he didn’t have anyone to share the holidays with, which he was very sad about. His family wrote a final letter to him, that they didn’t want to be worried about whether or not Ben was gonna come back alive, so they stopped writing to him, and didn’t even meet him in the airport when he got back home. He thought they were just overreacting and that they didn’t mean what they wrote in the letter, but they meant it quite seriously. He knew he hadn’t been the best son, and got into a lot of fights with his mom and dad, but he became very sad that they could do something like that to him, made Ben very sad, and by the time he got home, he was too afraid to call his family or drop by their house to say that he was okay. So he sat there in his chair reading a book, all by himself and he thought about his family and his girlfriend. Thinking about all that made Ben very sad and tears began to roll down his cheeks. He sat there for a good half an hour crying, when suddenly he heard a loud thump outside the house. He wiped the tears of his face with the back of his hand, and layed the book on his chair and stood up to check what caused the sound. He stood in front of the window looking out, but it was too dark to see anything, so he went over to the front door and...
Words: 1074 - Pages: 5
...Wei Ning Chi Professor Woods English 1A 20 Feb 2011 Advertisements Analyzing Between the Advertisements of Chanel’s Fragrance “No. 5” and Givenchy’s Fragrance “ange ou demon” Advertising promotes goods, services, images, and anything else that advertisers want to broadcast. It is becoming a main element of mass media. In order to attract audiences, advertisers use various techniques on their advertisements to make people aware of the firm's products, services, or brands. Even though the techniques used by advertisers are infinite, they have a common goal to convince those who might be their consumers to purchase their products. It is necessary for the advertisement to be more attractive and unique because they are in competition with all the other adverts for similar products. The advertisements of Chanel’s fragrance “No. 5” and Givenchy’s fragrance “ange ou demon” use different techniques to persuade different interest and age consumers purchasing their products. This perfume advertisement features Chanel’s fragrance “No. 5.” The perfume has been described "the world's most legendary fragrance" in Paris. The perfume bottle was in a square shape and was placed at the bottom right hand corner of the advertisement. The top of right side of the advertisement was the subject ‘’No. 5’’ that the Company of Chanel strongly promotes. The entire background of the advertisement was settling by dark...
Words: 2029 - Pages: 9
...ABSTRACT: A solar tsunami is a rare astronomical phenomenon, caused by the magnetic explosion in the sun. The sun has spurted a huge cloud towards the earth which is full of electronic ions. The planet was hit by a “Solar Tsunami” racing 93 million miles across the space. Scientists have warned that the earth could be hit by a wave of violent space storm(Coronal Mass Ejection) after a massive explosion on the sun. This huge explosion could shut down the global communication and the satellites might get destroyed. “These eruptions occur when immense magnetic structures in the solar atmosphere lose their stability and can no longer be held down by the Sun’s huge gravitational pull. Just like a coiled spring suddenly being released, they erupt into space.” This means we have a very good chance of seeing major and prolonged effects, such as the northern lights at low latitudes.” The solar explosion that causes the tsunami has been observed by many satellites along with the Solar Dynamic Observatory, NASA. The blasts will reach to a maximum level in 2020 it is estimated. Along with this blast there was another blast of cold air circumference of the sun’s northern pole. A huge cloud has been thrown in to the space with these related developments. This paper focuses on the global changes caused by the future solar activity and also presented pre actions for safe guarding our lives. Key Words: Coronal mass Ejection, Solar storms, Magneto Hydro Dynamic Waves, Solar electric...
Words: 2035 - Pages: 9
...Dr. Stella Madueme. / International Journal of Engineering Science and Technology Vol. 2(4), 2010, 610-617 Gas Flaring activities of major oil companies in Nigeria: An economic investigation. Dr. Stella Madueme Department of Economics University of Nigeria, Nsukka Enugu State, Nigeria Abstract This paper reveals the general trends in gas flaring in seven major oil companies in Nigeria from 2000 to 2008. It reveals which company’s flaring activities constitutes the greatest hazard. Data was collected through archival sources. Gas flaring activities was highest between 2000 to2002 but presently only about a quarter of all gas produced is flared. TEXACO and PAN OCEAN has been flaring more than 95% of its gas from 2000 to 2008. SHELL was discovered to maintain the best record in terms of the fact that its flaring activities has been decreasing consistently over the years. Some of the recommendations are planned targeted policies towards gas flaring reduction, increased government taxation on gas flaring and governmental reward packages to companies with lowest flaring activities are also necessitated. Keywords: Oil company. Gas. Flaring, economic, environmental, hazard Introduction and literature review Gas flaring has been recognised as an economic waste and a great environmental hazard. Various researchers have written extensively on various issues in the gas sector. Blasing, Hand and Kimberly (2007) worked on monthly carbon emissions from natural gas flaring and cement manufacture...
Words: 2578 - Pages: 11
...4550 MAY 5, 2010 JOHN A. QUELCH LISA D. DONOVAN Flare Fragrances Company, Inc.: Analyzing Growth Opportunities It was early December 2008, time for Flare Fragrances Co. to launch its final analysis of 2009 strategic initiatives, and the group of 10 sales and marketing employees in the main Flare conference room could see by the look on her face that CEO Joely Patterson was determined to make 2009 better than 2008 had been. The economic crisis had taken its toll on Flare’s businesses. Back in 2007, sales had risen 12%; now, less than a year later, the CFO’s estimated year-end numbers projected only 2% growth in 2008—a better recession story than some businesses had to tell, but not a trend that Patterson or the company founders wanted to see repeated in the coming year. “I congratulate you for surviving in a tough economic climate, and I thank you for your hard work,” Patterson told the group. “Good as we were, now we have to be better. We are here to discuss the study that our consulting group, Arlmont Associates, submitted on Monday. As you have read, Arlmont suggested that several strategic options offer the greatest potential for growth. At this point I favor the two that Arlmont viewed as most promising: one, increase our efforts in the drug store channel; two, introduce a new perfume brand. Today, we begin to analyze our options intensively. We can do one, both, or neither. But if we do neither, we have to identify some other idea that can deliver...
Words: 4918 - Pages: 20
...Flare Fragrances Company, Inc.: Analyzing Growth Opportunities Key issue: Flare wants to deliver at least $7.5 million incremental revenue in 2009 and survive the severe economic environment. Two methods are available, one involves launching a new brand – Savvy; the other involves intensifying Flare’s penetration into the drugstore channel. Current situation of the industry: In US market, 2008, 74% women and 75% girls use fragrance products. The total US fragrances retail market was $5.7 billion in 2007, among them $3.8 billion was women fragrances. Flare takes 9.5% market share, exceeded by Depuis, Suzanne Weber and Aromatique. Sales channels of fragrances include mass market, drug stores, department stores and others. SWOT analysis of Flare Fragrances Company: S: Flare is the No.4 player in the U.S. women’s fragrances market. Loveliest is maintaining its 3% share of the market-$77 million. Flare dominates sales of fragrances through mass channels. W: The company was confined to the United States. The drugstore sales team lacks experience and management level O: The potential market for women’s fragrance is huge Traditionally higher-end fragrances will be the best performers in the coming years. Department/drugstore channel have huge markets but Flare accounts for only 5.7% and 2.6% T: major competitor Aromatique would launch a new perfume brand, Dulcet. Mid-tier and premium brands increasingly available in mass channels Evaluation of each option: Project...
Words: 838 - Pages: 4
...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...
Words: 587 - Pages: 3
