Flare Case

Subject come out Fragrance Recommendation Background Flare was founded in 1955 as a small manufacturer of womens fragrances. over a period of time, Flare has dominated the fragrance market, gen whileting 9. 5% of the total womens fragrance market and had grown in to a No. 4 player in the U. S womens fragrances market. Flare has released 6 brands in the market namely Loveliest, Awash, Summit, Essential, Swept Away and subjective. Economic crisis has impacted Flares market share. Sales in 2007 were 12% and by 2008, the estimate was only 2% growth.Flares goal for 2009 was to generate $7. 5 million in additive revenue and reverse declining gross revenue trend. Recommendation Flare should promote natural with loveliest umbrella in 18-34 years era range and expand its efforts in the do drugs store channel. Rationale 1. graphic fits Flares portfolio, both financially and strategically. Promoting born(p) with loveliest umbrella will benefit Flare to meet its target sales numbers for 2009. Loveliest brand was introduced in 1975 and it still holds a strong equity in the market.It is positioned as a classic scent in the older age multitude. These customers will serve as evangelist and contribute to the promotion of raw(a) brand. As a result of the focus group sessions (ex 5), Projected sales for 2008 for Natural is $9. 1MM(ex 1). Based on forecasted numbers in table1, expected sales for 2009 could be $10. 15MM. Keeping the same communication budget from 2008 of 2. 7 MM to Natural in 2009 (exhibit 4), the expected revenue from Natural would be around 7. 45MM (table 2). 2.Natural is a recent launch under the loveliest umbrella and it is reaching slightly younger demographic, who are flavor for the environmentally safer products or so called green product (page 2). Natural is streamly positioned as a chic brand in the younger age group (ex 3). 18-34 year age group women are highly brand aware with sensitivity to premium and prestige brands and word of mouth is inf luential for this age group(ex 5). Promoting Natural in the slightly younger age group will benefit Flares overall sales. 3.Arlmonts review of current recession era (page3), shows that mid-tier and premium brands will be increasingly available in the mass channels. Market development strategy can be used to expand Natural in the drug store. As a result of the focus group sessions (ex 5), 20% of customers shop at the drug store. Flares sales at the drug store do not mirror overall market and there is a potential for expansion in that space. Drug store manacles have evolved over time and some of them also have high end features like on-site aestheticians to assist shoppers in selecting a particular brand.With the current economic conditions, customer with 18-34 yrs age group would get directed to the drug stores in search of cheaper prices. Placing free samples of Natural in the drug stores and Natural testers in the point of purchase will generate trial. Based on the information fro m table 3, after increasing the % allocation in drug store for Natural from 0. 5% to 2. 5% in (ex 1), the flare factory sales for 2009 will increase from 9. 1MM to 11. 3 MM. Additional 1. 15 MM can be worn out(p) on promotional budget for point of sale samples, expected revenue from natural can be 7. 45MM. Risk 1.Drugstores would typically sell only Flares highest turnover items, which might damage Flares relationship with other retail accounts. 2. It can be difficult to position Natural in the 18-34 age group with the loveliest umbrella as women in this age group can perceive loveliest as a classic brand. carry over 1 Natural brand Sales forecast 2006 2007 2008 2009 7 Not available 9. 1 10. 15 2009 sales figures are forecasted based on the % sales increase from 2006 to 2009. Table 2 Natural brand 2009 expected factory sales(MM) 10. 15 2009 communication budget(MM) 2. 7 Incremental revenue 7. 45 Table3