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Flare Fragrances Case Study

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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 includes introducing a new product. It is a fragrance oriented at a younger audience. Another one is doing market penetration into the drug stores channel (increasing its sales at drug stores, prestige department stores, and through the internet). In order to take a final decision, it is necessary to analyze each possibility of future development. We should look at the internal and external

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