Flare Case Study - Savvy

1. Pratikshya Mishra founder@powepointguard

2. 5.70 Billion $ Women Percentage 15.6 Men 12.3 11.5 9.5 33% 67% 3.8 Billion $ Depuis Suzanne Aromatique Weba Flare

3. (From Exhibit 1)

4. (From Exhibit 1)

5. Dominance in sales of fragrances through mass channels. (From Exhibit 1)

6. % of Total Flare Sales 2% Mass Market 24% 4% Drug Stores 70% Department Store/Prestige Other Channels (From Exhibit 1)

7. Flare Share of Channel Mass Market 23% 77% Flare Others (From Exhibit 1)

8. Flare Share of Channel Mass Market Mass Market Department Drug Other Stores/ Stores Prestige Channels 23% 77% 76.9 97.4 94.3 98.2 2.6 Flares 5.7 1.8 23.1 Flare Others Others (From Exhibit 1)

9. Dominance in sales of fragrances through mass channels. Power of „Loveliest‟ as a strong umbrella brand.

10. Dominance in sales of fragrances through mass channels. Power of „Loveliest‟ as a strong umbrella brand. All the fragrances launched by Flare are under the brand name loveliest. The brand „Loveliest‟ has the larger share of the annual ad and promotions budget – roughly 70-80%. “You are the love in Loveliest” theme in use since 1995.

11. Dominance is sales of fragrances through mass channels. Power of „Loveliest‟ as a strong umbrella brand. Has a strong and loyal customer base among 34-65 aged successful women.

12. Sales of Flare doesn‟t mirror the overall market in prestige/department stores, drugstore chains and internet.

13. Mass Market Department Drug Other Stores/ Stores Prestige Channels 76.9 97.4 94.3 98.2 2.6 Flares 5.7 1.8 23.1 Others (From Exhibit 1)

14. Sales of Flare doesn‟t mirror the overall market in prestige/department stores, drugstore chains and internet. Brand appeal majorly to 34+ women.

15. Sales of Flare doesn‟t mirror the overall market in prestige/department stores, drugstore chains and internet. Brand appeal majorly to 34+ women. Relatively low ad spends, old promotional themes and heavily skewed allocations in favour of umbrella brand.

16. N/A

17. Mass market evolution as consumer traffic grows in these stores. N/A They overhaul beauty departments by stocking trendier fragrances and employing beauty consultants.

18. Possibility of dilution of the „Loveliest‟ brand image.

19. Possibility of dilution of the „Loveliest‟ brand image. Drugstore reps, even after suitable training, have shown uneven results in the last couple of years.

20. Possibility of dilution of the „Loveliest‟ brand image. Drugstore reps, even after suitable training, have shown uneven results in the last couple of years. Just over 20% people admit to buying fragrances from drugstores. (Exhibit 5)

21. Possibility of dilution of the „Loveliest‟ brand image. Drugstore reps, even after suitable training, have shown uneven results in the last couple of years. Just over 20% people admit to buying fragrances from drugstores. (Exhibit 5) Drugstores typically want sell only Flare‟s highest turnover items.

22. Diversification of product portfolio.

23. Diversification of product portfolio. Loveliest Natural Summit Flare Awash Essential Swept Away

24. Diversification of product portfolio. Loveliest Natural Summit Flare Awash Essential Swept Away

25. Savvy? Diversification of product portfolio. Loveliest Natural Summit Flare Awash Essential Swept Away

26. Savvy? Diversification of product portfolio. Loveliest Increases the age bracket of Flare. Natural Summit Flare Awash Essential Swept Away

27. Savvy? Diversification of product portfolio. Loveliest Increases the age bracket of Flare. Natural Opens up possibilities of vertical expansion. Summit Flare Awash Essential Swept Away

28. Savvy? Diversification of product portfolio. Loveliest Increases the age bracket of Flare. Natural Opens up possibilities of vertical expansion. Summit Flare Better utilization of channels Awash Essential Swept Away

29. Savvy? Diversification of product portfolio. Loveliest Increases the bracket of Flare. Opens up possibilities of vertical expansion. Natural Flare Better utilization of channels Prevents stagnation of the brand. Summit Awash Essential Swept Away

30. Diversification of product portfolio. Addition of a new product/brand after two years. Infusion of much needed cash in the ad budget. Keeps the brand relevant. Will boost the sales.

31. Will increase cost. Minimum Plan Mild Plan 2006 2007 2008 2009 (predicted) Hell Yeah Plan

35. Will increase cost. May dilute the brand image of Loveliest leading to loss of faithful and loyal customers.

36. Will increase cost. May dilute the brand image of Loveliest leading to loss of faithful and loyal customers. If the launch fails, Flare‟s position in the segment will be hard to gain back.

37. SAV V Y

38. SAV V Y

39. SAV V Y

40. SAV V Y WHY? “Because brands that don‟t evolve with time, eventually die!”

41. Prefers luxury brands Heavy user Loyal to signature scents Familiar with Loveliest

42. Chic, Brand oriented Mindful of prestige and image Elegance and exclusivity Belief in word of mouth Ready to try out new products and scents. Prefers luxury brands Heavy user Loyal to signature scents Familiar with Loveliest

43. Loveliest

44. Loveliest Awash

45. Loveliest Awash Swept away

46. Loveliest Awash Swept away Essential

47. Loveliest Awash Swept away Essential Summit

48. Loveliest Awash Swept away Essential Summit Natural

49. Name: Dagny T. Age : 24 Degree : MBA Major: International Business

50. Name: Dagny T. Age : 24 Degree : MBA Major: International Business Smart, Ambitious, Starting to climb the corporate ladder. Erstwhile user of Marc and Jacobs

51. Name: Dagny T. Age : 24 Degree : MBA Major: International Business Smart, Ambitious, Starting to climb the corporate ladder. Erstwhile user of Marc and Jacobs Wants to change to something that spells young professional

52. Savvy User

53. Loveliest Awash Swept away Essential Summit Natural Savvy

54. Natural, Essential

55. Natural, Essential Swept away, Awash

56. Natural, Essential Swept away, Awash Loveliest

57. Natural, Essential Swept away, Awash Loveliest Summit

58. Natural, Essential Swept away, Awash Loveliest Summit Savvy

59. Natural, Essential Swept away, Awash Loveliest Summit Savvy Savvy X

60. SAV V Y Dulcet

61. SAV V Y We should go ahead with the Savvy plan. And pre-pone the release. Dulcet

62. SAV V Y WHY? “Offence is the best Defence!” Duclet

63. SAV V Y

64. SAV V Y

65. SAV V Y

66. SAV V Y No protection from umbrella brand name PROS CONS

67. SAV V Y Increase audience without any baggage of the Loveliest branding. PROS No protection from umbrella brand name CONS

68. SAV V Y Increase audience without any baggage of the Loveliest branding. PROS No protection from umbrella brand name Added expenditure CONS

69. SAV V Y Increase audience without any baggage of the Loveliest branding. Opportunity for expansion in future and increased sales PROS No protection from umbrella brand name Added expenditure CONS

70. SAV V Y Increase audience without any baggage of the Loveliest branding. Opportunity for expansion in future and increased sales PROS No protection from umbrella brand name Added expenditure Cost of Failure extremely high CONS

71. SAV V Y Increase audience without any baggage of the Loveliest branding. Opportunity for expansion in future increase in sales Huge market open for the taking PROS No protection from umbrella brand name Added expenditure Cost of Failure extremely high CONS

72. SAV V Y Increase audience without any baggage of the Loveliest branding. Opportunity for expansion in future increase in sales Huge market open for the taking PROS No protection from umbrella brand name Added expenditure Cost of Failure extremely high Dulcet will give tough competition, market will take time to stabilize CONS

73. SAV V Y Increase audience without any baggage of the Loveliest branding. Opportunity for expansion in future, increase in sales Huge market open for the taking, Parent company provides credibility and aspirational value PROS No protection from umbrella brand name Added expenditure Cost of Failure extremely high Dulcet will give tough competition, market will take time to stabilize CONS

74. SAV V Y Increase audience without any baggage of the Loveliest branding. No protection from umbrella brand name Opportunity for expansion in future, increase in sales Added expenditure Huge market open for the taking Cost of Failure extremely high Parent company provides credibility and aspirational value Duclet will give tough competition, market will take time to stabilize Opportunity to break away from association with only old people. PROS CONS

75. SAV V Y

76. SAV V Y

77. SAV V Y WHY? “Because no guts, no glory!”