Flare Fragrance

In: Business and Management

Submitted By paolo305
Words 406
Pages 2
Savvy (new brand)

Advantages: new brand image, tap into the young segment
Disadvantages: large investments, fierce competition due to the SKU and brand proliferation

Target segment: 18-34 years old women; young, confident and successful; in college or career.
Channels: being sold 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 2006

Drugstore expansion

Advantages: increase sales through more retail stores; reach more…...

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