Essay About Flare Fragrances Company And Loveliest Brand Name

Flare Fragrances Company – Analyzing Growth Opportunities
Flare Fragrances Company, Inc.Analyzing Growth OpportunitiesBy:Connor Skelly, Rob Bednarz, Brandon Bao, Purvish PatelProblem & Solution        In light of the recent recession, Flare Fragrances has experienced a significant decline in revenue, though still staying in positive growth. A decision must be made as to how Flare will bounce back from the recession while also gaining market share in an already crowded market. Advertising budgets are consistently inferior to the competition as Flare depends heavily on the Loveliest brand name, its recognition, and halo effect on the other products. Flare is also under pressure by their biggest competitor, Aromatique, who will launch a new product in the coming months priced at $42. With Flare’s successful latest release of Natural, an eco-friendly fragrance targeting millennials, is important to keep newer and younger consumers in mind while also keeping the current, loyal customers, happy.        The recommended solution is to develop and implement the brand Savvy, under the Loveliest umbrella, for 2009 at a price of $40. The new product will stay consistent with biannual releases that Flare has implemented. After Natural’s successful launch, it is expected that Savvy will receive very positive feedback and have at least an equally successful launch. The price point reflects the evidence showing pricier fragrance sales will be on the rise in the years after the recession. By staying under the Loveliest umbrella, there will be higher brand recognition and advertising and packaging costs will be reduced, thus enabling a higher promotional budget that will match competitors. By increasing the age bracket to 18-34 for Savvy, Flare’s market share is bound to increase as the 35-65 age bracket remains loyal. Customers will be more likely to stay within the Loveliest brand due to the large variety of products. Additionally, there will be a heavier emphasis on internet marketing. As department sales slowly decline, it is important for Flare to stay up-to-date on their customers’ purchasing habits. Executive Summary        The recession has had a significant impact on Flare’s growing revenues. While the company has not lost money as a result of the decline in sales, their momentous growth has come to a halt. One of the largest threats facing the company is being outspent in advertising by competitors. This has made it difficult for Flare to gain market share in an already saturated market. In the past, Flare has relied on its prized Loveliest brand umbrella to create brand awareness and loyalty. Its halo effect on Flare’s other products has proven to make the company a competitor in the fragrance market. However, the company can no longer rely so heavily on the brand name when consumers are changing the way they see fragrance brands. Those in the 35+ age bracket will stay loyal to Flare and its Loveliest brand but the real challenge is to effectively advertise to a new market while fending off new releases from the competition and reaching a goal of $7.5 million in sales.