A Harvard case focused on positioning, product launch and pricing decisions for a brand. It was extremely challenging to solve and allowed me to get an in-depth understanding on products and how to position them.

1. Flare Fragrances
Analyzing Growth Opportunities
Name – Vishwas Sankhe
Student ID – 118136175
Course Code – MKM805 MMS
Date – 11th March, 2018
2/8/2019 MKM805MMS - FLARE FRAGRANCES 1

2. Flare fragrance’s is a perfume manufacturer in the U.S. market which is currently contemplating the channel and positioning for it’s new perfume
launch named Savvy with an optimal budget in order to explore a new target market while leveraging it’s experience in the industry over the years
2/8/2019 MKM805MMS - FLARE FRAGRANCES 2
How can Flare successfully address
the consumers increasing need of a
product that’s exclusive and elegant
while positioning and branding their
product Savvy in an optimal way
via. the right channel to reach the
target consumer effectively?
Flare & The U.S. Market:
- Total market in terms of dollars spent was
$5.70 billion as of 2007
- Out of the total market, women's fragrances
consisted of $3.8 billion or 66.6%
- The market was currently going through an
economic crisis
- Flare had 9.5% market share vs. the
competitors
- Flares probable position by the end of 2008
would be $221 mil. Or 10% of the market
- Flares mass outlet penetration was at 74%
Loveliest:
- Loveliest maintains it’s 3% share of retail
market i.e. $77 mil
- Loveliest is the best-selling line in mass market
- Women’s fragrances divided into 3 groups
based on price point, i.e. Mass brands, Mid-tier
and Premium brands placing Loveliest in the
mid-tier section
- The key – the power of Loveliest as an
umbrella brand
- Loveliest key impact is between audience aged
34-65
Product Selection and Competitors:
- Consumers selecting mass alternatives by
trading down from luxury brands due to
economic pressure
- Reducing exclusivity: mid-tier and premium
brands increasingly available in mass
channels
- Over 400 new fragrances launched in US in
2007
- The competition includes Aromatique,
Suzanne Webber and Detuis who currently
acquire market share ranging from 11.5% to
15.6%
- Aromatique had planned on launching
Dulcet priced $42 targeting the young adult
market with a $10 mil for promotion
Channel Activity:
- Mass market evolution as consumer traffic
grows in these stores due to trendier fragrances
and employing beauty consultants
- Overall market trends show slight declines in
sales through high-end department stores and
sales of mass brands through the mass channel,
countered by small percent increase in sales of
prestige brands through mass and relatively
stable sales through mid-tier department stores
- Drug chains are using high-end technology are
sales reps in order to amplify sales but Flare
hasn’t been able to effectively use that channel
so far
Insights:
- Loveliest has successfully been harnessing it’s power as an umbrella brand
- The overall fragrance market is inclined towards women who are constantly on the verge of
looking for something new and exclusive
- The current channel in which Flares strength lies i.e. mid-tier stores are relatively stable and can
be a source of sustained growth for the brand
Research Shows:
- The key perfume buyer are women between the age of 18-35; 35-65 and men who are buying
gifts
- The power of the channels isn’t completely being harnessed by Flare (except mid-tier
department stores and mass channels)
- Competitors are spending more on promotion compared to Flare
Takeaway: Flare fragrances had decided to launch Savvy a new perfume
brand in order to appeal to a fresher target market while generating
profits.

3. In order to launch Savvy in the market it’s a key criteria for Flare to determine the target market based on their competitive advantage i.e. Channel
expertise in order to position Savvy correctly while ensuring sales in order to access their target right where they make a decision to purchase
2/8/2019 MKM805MMS - FLARE FRAGRANCES 3
Loyalists
Novelty
-Seekers
Females: Age 18-34
Relate to: Elegance and Exclusivity
Influenced by: Word of Mouth
Brand Awareness:
Highly brand-aware with
sensitivity to premium
and prestige branding
Loyalty: Low, since they’re
constantly willing to try
something new
Females: Age 35-64
Relate to: Classic fragrances
Influenced by: Brands they
are familiar with
Brand Awareness:
Inclined towards
luxury fragrance brands
Loyalty: High, since they’re
loyal to their favorite
signature scent
Measurable: The market currently
consists of about 75% teenage girls who
use fragrance products
Accessible: Our product can be marketed
as “the new” fragrance that this category
is looking for across the channels wherein
they make a purchase since 50% of the
overall category purchases at mass market
channels where our strength lies
Profitable: Since this segment is seeking
what we intend to sell, they’re worth
pursuing for Savvy
Measurable: This segment is already measured by
Loveliest and therefore, might not be a new area to
venture into
Accessible: This segment while shopping at the
same channels as department stores and mass-
market channels is not affected by marketing as
heavily as the younger generation due to their
loyalty
Profitable: This segment may/may not be profitable
to Savvy depending on how it has been positioned
but since we don’t intend to appeal to the same
saturated market this option isn’t worth pursuing
Target Audience – Female, 18-34 who are seeking novelty and exclusivity
Consumers Description
Demographic Description: 18-34
Their Needs: A scent which makes them feel exclusive and
elegant
Their Enemy: Using something that doesn’t separate them from
the crowd
Insights that tell their story: “My perfume should be an expression of my
personality”
What do they think now? Everything the market has isn’t really as exclusive as
they want it to be for them to use it
How are they buying? Department stores, mass-market channels, Drug-
stores (To some extent)
We want them to
think/feel/do:
Think: Savvy suits any activity and time of the day
with any wardrobe
Feel: Savvy makes me feel different from the crowd
Do: Use Savvy in order to be exclusive and unique
Resource/Capability Value Rare Costly to imitate Organized to exploit
Prestige/Classy Image – Brand Image Yes – Since Flares current target
market associates with it and hence,
buys the brand
No – Since the other brands in the
category also have their set of loyal
customers
Yes – Since it has taken them a lot of
time and effort in order to establish
themselves with this image
Yes – Since they’re still performing in the
market with the same image for years
Introducing New Products – Production Capacity Yes – Since they’ve successfully been
launching products throughout the
years
Yes – Since no other brand is doing it
as frequently as Flare
No – Since the competitors have the
resources to extend their product lines
as well
Yes – Since they’ve been able to successfully
position every product launched so far
Mid-tier/Mass Market - Channel expertise Yes – Since their years of experience
allows them to utilize these channels
to maximum potential
Yes – Since not every competitor has
been around for so long
Yes – Since not every competitor can
establish rapport so quickly
Yes – Since Flare has been selling successfully
through this channel over the years
Competitive
Advantage

4. To successfully position Savvy, Flare needs to exploit its competitive advantage i.e. channel expertise in order to appeal to their target audience at
the right spot and be perceived as an expression of their personality and something that suits their need for a scent at any occasion and time
2/8/2019 MKM805MMS - FLARE FRAGRANCES 4
CLASSIC
CHIC
YOUNGER
AGE
APPEAL
OLDER
AGE
APPEAL
ESSENTIAL
SWEPT AWAY
AWASH
LOVELIEST
NATURAL
SAVVY
Zone Why is Savvy there/not there?
Classic +
Old Age
Appeal
Since our target is the younger audience and
the market in that zone is saturated with our
own products it’s not a suitable position for a
“fresh/exciting” brand like Savvy
Older age +
Chic
This zone doesn’t appeal to us since our
target market is the young adult who is
looking for something exclusive yet elegant
Young age
+ Chic
Competing in this zone puts us in the risk of
competing with our own offering and also
not having the exclusivity we are aiming to
achieve
Young age
+ Classic
This is the perfect spot for us to land Savvy
since our audience profile might extend from
working adults to fashionista and in order to
appeal across we need a perception that can
relate to anyone in this segment
ELEGANT
BEAUTIFUL
ANYTIME
OF THE
DAY
SPECIFIC
OCCASION
ESSENTIAL
SWEPT AWAY
AWASH
LOVELIEST
NATURAL
SAVVY
EXCLUSIVE
SAME OLD
ANYTHING
FROM THE
WARDROBE
WARDDROBE
SPECIFIC
ESSENTIAL
SWEPT AWAY
AWASH
LOVELIEST
NATURAL
SAVVY
Zone Why is Savvy there/not there?
Elegant +
Specific
Occasion
Since our target has the need for a perfume
which can fit any occasion this zone isn’t
suitable for us
Specific
occasion +
Beautiful
This zone doesn’t define Savvy's exclusivity
because everyone talks about being
beautiful, we need to hit the spot which no
one is focusing on
Beautiful +
Anytime of
the day
This zone doesn’t fulfill our requirement of
connecting with the target audience on an
elegant level
Elegant +
Anytime of
the day
This is the perfect spot for us to land Savvy
since our audience wants to buy something
that not only is premium but makes them
feel so. Savvy has to be the perfect solution
for any occasion be it a meeting or a party for
them to stand out
Zone Why is Savvy there/not there?
Exclusive +
Wardrobe
specific
Since this zone is already saturated there’s
not much room to play there. Also Savvy is
not targeting consumers who want to use
perfume for specific reasons/with specific
wardrobe
Wardrobe
specific +
Same old
This zone doesn’t appeal to us since our
product is new and requires people who are
willing to try it
Same old +
Anything
from the
wardrobe
This zone has the threat of people not trying
our product since they’re already
comfortable with the scents they wear
Anything
from the
wardrobe +
Exclusive
This is the right spot for Savvy in order to fit
in the target consumers wardrobe smoothly
with anything they decide to wear and
whenever they want to try something
exclusive which sets them apart
Positioning statement: For females in the age group of 18-34 who want a perfume which can suit any occasion or wardrobe while
expressing their personality Savvy is the perfume which will make them feel elegant, exclusive and classic due to it’s unique fragrance
SUMMIT SUMMIT SUMMIT

5. 2/8/2019 MKM805MMS - FLARE FRAGRANCES 5
Basis Savvy’s positioning the branding decision to be made will be done post evaluation of the options available i.e. Under Loveliest’s umbrella
brand; stand-alone or with a new product name altogether while evaluating how they affect Savvy's performance overall
Key Takeaway: Post a thorough analysis, Umbrella Branding seems like the right way to launch Savvy in order to ensure the perception the product is aiming for without spending all of the funding
allocated for media so that the other products under Loveliest can also be given a subtle push along with Savvy when it comes to promotions
Branding
Type:
Umbrella Branding
Overview: By branding Savvy along with Loveliest we have
the chance to harness the maximum potential
which Loveliest offers and the core on which it
is based i.e. it’s brand image which it has
developed through the years
Brand
Awareness:
Since the budget available for Savvy's
marketing depends on the choice our branding,
umbrella will help us introduce Savvy at a much
lower cost compared to stand-alone since it
already has a position in the market that Savvy
can benefit from
Known
Quality:
Loveliest’s presence doesn’t only give it
credibility but also adds the extra layer of Trust
for Savvy in order to be perceived as something
new yet worth trying
Market
Reach:
The current mid-tier and mass channels are
Loveliest’s key strength and to exploit them
best, Savvy won’t have to struggle when
branding itself under Loveliest
Product
Experience:
Under Loveliest, Savvy will have a higher
chance of being perceived as something that
provides a positive experience for the
consumer and ends their search for something
exclusive and elegant
Branding
Type:
Stand-Alone
Overview: By branding Savvy as a stand-alone we can
create a separate image for the product but at
the risk of being perceived as a new range and
thus, not being selected by the consumer since
they’re highly brand aware
Brand
Awareness:
This approach will require Savvy to be allocated
with a heavy marketing budget in order to
ensure maximum brand awareness amongst
the consumer it’s targeting since it can’t
leverage the brand image
Known
Quality:
As much as the consumers are willing to try a
new product, they’re highly sensitive towards
prestige branding and it will be difficult for
Savvy to land on that scale immediately post
launch
Market
Reach:
The current channels which we strongly rely on
might be hesitant to place a product on shelf
which doesn’t come with the credibility of a
brand name
Product
Experience:
As a stand-alone, Savvy will have a probably
take a lot of time in order to land on the
positive side of the consumer selection criteria
and thereby, fulfilling the demand of the
consumer experience
Branding
Type:
New Product name (Serene) + Stand Alone
Overview: By changing Savvy's name to Serene our target
of landing the product on the consumers
‘elegant’ side of perception will not be
achieved and since in our category perception
is key, this might not be an optimal choice
Brand
Awareness:
This approach will require Serene to be treated
with a completely fresh approach wherein the
key is feeling “Fresh” for our consumer and
since it doesn’t align itself with our consumers
personality achieving brand awareness is a
tough task
Known
Quality:
When it comes to a new product, it’s
immediate association is with it’s brand and
since this product lacks that it will be extremely
difficult to land it on the right spot in terms of
consumer preference
Market
Reach:
Exploiting any channel in this case will be a
tough task since a new product name not only
brings with it a risk of being inexperienced but
also lacks credibility
Product
Experience:
As a new product name, Serene lacks relevance
with the consumer therefore, not fulfilling any
of the criteria which we aim to achieve with
Savvy as a product

6. In order to select the optimum channel to market Savvy from it’s key that Flare determines the budget being allocated behind the launch of the
product since the competitors have already are investing heavily in their launch this decision will heavily impact the selection of channels
2/8/2019 MKM805MMS - FLARE FRAGRANCES 6
Spending on Savvy:
• In order to ensure the maximum returns for Savvy it’s critical for Flare to keep the 3.4% in
consideration which it needs to gain post Savvy's launch .
• Launching it under the Umbrella brand also adds the authencity a new brand requires and
therefore, reduces the amount of spends we need to allocate to Savvy since it comes with
an added layer of integrity for the consumers.
• The competitors while spending more than Savvy on marketing lack the advantage which
Savvy comes with i.e. the power of Loveliest as an Umbrella brand which covers Savvy
thus helping it sustain in the market
• Allocating part funds to Savvy can help Flare to direct the pending funds for the other
brands which lack the advertising/marketing attention
Branding Strategy's Impact:
• An umbrella branding helps Savvy to directly enter a competitive market with credibility
which is one thing that they might be able to exploit
• The budget allocation is also based on the fact that Savvy isn’t a standalone product and
therefore, doesn’t really need heavy branding and marketing to ensure consumer
perception
• Also the fact that the product is not stand-alone saves us the planned spends since
promotions across channels can be reduced as mentioned earlier and the monies can be
redirected to solve other marketing/promotional issues
• The spends on Essential, Awash and Natural will be increased so that we also focus on
parallel lines and not only Savvy
Potential Sources for Funding:
• Crowdsourcing can be an option which Savvy can consider in order to fund itself via. The
masses. The approach while not standard for a perfume brand can always help Flare to
understand as to how to improve their offerings even further in order to ensure sales
while involving the masses and generating brand awareness amongst the target market
• It will also enable Savvy to interact with the masses like never before thereby enabling us
to strengthen our position as the exclusive product for the novelty-seeking consumer
Profit Implications:
• The budget allocated to Savvy for the year of 2009 will be $4,500,000 which consists of
television, magazine, digital, production and reserve
• The total amount planned therefore, for 2009 will be $35,498,886.70
• This amount allows Savvy to give some breathing space to the other products which
Loveliest carries in its portfolio viz. Awash, Summit and Natural which probably if given
attention can excel in their specific zones
• The competitors budget for their product which is competing with Savvy is $10,000,000
And compared to that if we spend $4,500,000 its not only reasonable but also allows us to
leverage our competitive advantage to it’s fullest extent

7. To ensure Savvy's success it’s important for Flare to select the right marketing channel since they’re aiming at positioning Savvy as an extension of
the consumers personality and therefore, it’s key for them to reach the right consumer at the right time to impact their purchase decision
2/8/2019 MKM805MMS - FLARE FRAGRANCES 7
Mass Market
Yes - Our presence
in this market
already allows us
to expand further
Yes - Loveliest’s
expertise in the
channel allows us
to build the
elegant image
we’re aiming for
The entry barriers
are extremely low
since Loveliest is
pre-established
which opens the
gateway for Savvy
Yes - By harnessing
this channel Savvy
can gain profits
sooner
Yes - This channel
is most explored
by the customers
and therefore,
allows us to
improve consumer
credibility
Yes - While the
competitors are
present in the
market, the
channel is
dominated by
Loveliest
Department
Stores
Yes - This channel
is explored by us
but can be fully
leveraged to
explore even
further Yes - The variety of
options available
in the channel
allow us to set
ourselves apart
with Savvy
The entry barriers
are low since
Loveliest is pre-
established which
opens the gateway
for Savvy
Yes - This channel
might allow us to
gain profits over
time
Yes - This channel
drives a lot of
purchase in the
category and has
a need for Savvy
to explore it
Yes - While the
competitors are
present in the
market, the
channel needs
further
penetration
Drug Stores
No -This channel
while identified
still requires a lot
of focus from
Savvys side in
order to be
exploited
No - This channel
is majorly
equipped with
designer/premium
brands which isn’t
a good spot for us
The entry barriers
are high since this
channel isn’t in
our expertise
criteria
No - This channel
is a difficult source
for us to gain
profit since
purchase isn’t
guaranteed
No - This channel
drives least
amount of
purchase for any
of Loveliest’s
ranges therefore,
isn’t really
beneficial
No - This channel
doesn’t allow
Savvy to do so
Increase Market Coverage
Help Build
Desired Image
Barriers To Entry
Increases Profitability
Improves Customer
Satisfaction
Exploit Competitors
Weakness
Increase Market Coverage
Help Build
Desired Image
Barriers To Entry
Increases Profitability
Improves Customer
Satisfaction
Exploit Competitors
Weakness
Increase Market Coverage
Help Build
Desired Image
Barriers To Entry
Increases Profitability
Improves Customer
Satisfaction
Exploit Competitors
Weakness
In order to exploit their new positioning Savvy needs to be utilizing the power of the two channels most beneficial to them i.e.
Department stores and Mass Market channels.
Sales Growth: Both the channels allow Savvy to grow their sales since Loveliest has experience in those and Savvy can leverage it’s
credibility while building it’s own exclusive image
Profitability: Both the channels allow us to place Savvy in a position which can initiate trials or sales
Return on Capital: Both the channels have heavy activity from us and therefore, are bound to pay us off for our investment
Brand Leverage: They allow us to harness Loveliest’s brand to the maximum possible potential and therefore, are ideal to focus on
Therefore, for Savvy to ensure relevant perception
and be an extension of the consumers personality, the
ideal mix consists of establishing Savvy as the
elegant and exclusive option the consumer is looking
for via. The department stores and mass market
channels in order to generate profits.

8. Appendix - Channel power analysis and total media spends forecast
2/8/2019 MKM805MMS - FLARE FRAGRANCES 8
Power Reaction
Reward Power The mass market brand imagery for Savvy can be carried forward to department stores in order to establish
ourselves even better
Coercive Power Associating with Drug stores can be harmful for us since mass markets/retailers will lose their share of
profitable products from Flare
Expert Power Mass market channels have the power to influence other channels decisions in terms of whether Savvy can
find enough shelf space for itself or not
Legitimate Power In terms of Flares market, their key channel has the legitimate right to make or break the brand on various
levels
Referent Power Due to the relationship between Flare and mass markets/department stores its safe to assume that our
channels run in conjunction with our brand values and support our image
Total Media Spends - Planned For Savvy
Item 2006 2007 2008 2009
Total Sales Per Year $221,129,257.00 $228,647,651.74
Brand
Loveliest $15,438,399.00 $16,441,611.00 $16,770,443.00 $21,801,575.90
Awash $146,336.00 $166,497.00 $169,827.00 $212,283.75
Summit $2,414,536.00 $2,663,957.00 $2,717,326.00 $3,124,924.90
Essential $1,375,554.00 $1,498,476.00 $1,443,532.00 $1,804,415.00
SweptAway $512,174.00 $495,330.00 $509,482.00 $611,378.40
Natural $2,092,598.00 $2,401,724.00 $2,755,447.00 $3,444,308.75
Savvy (Sales Allocated) $4,500,000.00
Total $ 21,979,598.00 $ 23,667,594.00 $24,366,057.00 $35,498,886.70