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Flare Case Study - Savvy
Flare is a leading fragrance brand dominated in sales through mass channels under its umbrella 'Loveliest' brand. However, its sales do not mirror overall market trends in prestige stores, drugstores, and online. It also mainly appeals to women aged 34+. The document discusses diversifying Flare's portfolio through new brands targeting younger audiences to increase sales and market share. It proposes the 'Savvy' plan to launch new brands despite risks of high costs and failure given competition.
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Flare Case Study - Savvy
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- 15. 5.70 Billion $ Women Percentage 15.6 Men 12.3 11.5 9.5 33% 67% 3.8Billion $ Depuis Suzanne Aromatique Weba Flare
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- 18. Dominance in salesof fragrances through mass channels. (From Exhibit 1)
- 19. % of TotalFlare Sales 2% Mass Market 24% 4% Drug Stores 70% Department Store/Prestige Other Channels (From Exhibit 1)
- 20. Flare Share ofChannel Mass Market 23% 77% Flare Others (From Exhibit 1)
- 21. Flare Share ofChannel 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)
- 22. Dominance in salesof fragrances through mass channels. Power of „Loveliest‟ as a strong umbrella brand.
- 23. Dominance in salesof 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.
- 24. Dominance is salesof 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.
- 26. Sales of Flaredoesn‟t mirror the overall market in prestige/department stores, drugstore chains and internet.
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- 28. Sales of Flaredoesn‟t mirror the overall market in prestige/department stores, drugstore chains and internet. Brand appeal majorly to 34+ women.
- 29. Sales of Flaredoesn‟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.
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- 34. Mass market evolution asconsumer traffic grows in these stores. N/A They overhaul beauty departments by stocking trendier fragrances and employing beauty consultants.
- 35. Possibility of dilutionof the „Loveliest‟ brand image.
- 36. Possibility of dilutionof the „Loveliest‟ brand image. Drugstore reps, even after suitable training, have shown uneven results in the last couple of years.
- 37. Possibility of dilutionof 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)
- 38. Possibility of dilutionof 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.
- 44. Diversification of productportfolio.
- 45. Diversification of productportfolio. Loveliest Natural Summit Flare Awash Essential Swept Away
- 46. Diversification of productportfolio. Loveliest Natural Summit Flare Awash Essential Swept Away
- 47. Savvy? Diversification of productportfolio. Loveliest Natural Summit Flare Awash Essential Swept Away
- 48. Savvy? Diversification of productportfolio. Loveliest Increases the age bracket of Flare. Natural Summit Flare Awash Essential Swept Away
- 49. Savvy? Diversification of productportfolio. Loveliest Increases the age bracket of Flare. Natural Opens up possibilities of vertical expansion. Summit Flare Awash Essential Swept Away
- 50. Savvy? Diversification of productportfolio. Loveliest Increases the age bracket of Flare. Natural Opens up possibilities of vertical expansion. Summit Flare Better utilization of channels Awash Essential Swept Away
- 51. Savvy? Diversification of productportfolio. 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
- 52. Diversification of productportfolio. 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.
- 53. Will increase cost. MinimumPlan Mild Plan 2006 2007 2008 2009 (predicted) Hell Yeah Plan
- 54. Will increase cost. MinimumPlan Mild Plan 2006 2007 2008 2009 (predicted) Hell Yeah Plan
- 55. Will increase cost. MinimumPlan Mild Plan 2006 2007 2008 2009 (predicted) Hell Yeah Plan
- 56. Will increase cost. MinimumPlan Mild Plan 2006 2007 2008 2009 (predicted) Hell Yeah Plan
- 57. Will increase cost. Maydilute the brand image of Loveliest leading to loss of faithful and loyal customers.
- 58. Will increase cost. Maydilute 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.
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- 63. SAV V Y WHY? “Becausebrands that don‟t evolve with time, eventually die!”
- 65. Prefers luxury brands Heavyuser Loyal to signature scents Familiar with Loveliest
- 66. Chic, Brand oriented Mindfulof 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
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- 73. Name: Dagny T. Age: 24 Degree : MBA Major: International Business
- 74. Name: Dagny T. Age: 24 Degree : MBA Major: International Business Smart, Ambitious, Starting to climb the corporate ladder. Erstwhile user of Marc and Jacobs
- 75. 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
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- 80. Natural, Essential Swept away,Awash Loveliest
- 81. Natural, Essential Swept away,Awash Loveliest Summit
- 82. Natural, Essential Swept away,Awash Loveliest Summit Savvy
- 83. Natural, Essential Swept away,Awash Loveliest Summit Savvy Savvy X
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- 85. SAV V Y Weshould go ahead with the Savvy plan. And pre-pone the release. Dulcet
- 86. SAV V Y WHY? “Offenceis the best Defence!” Duclet
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- 90. SAV V Y Noprotection from umbrella brand name PROS CONS
- 91. SAV V Y Increaseaudience without any baggage of the Loveliest branding. PROS No protection from umbrella brand name CONS
- 92. SAV V Y Increaseaudience without any baggage of the Loveliest branding. PROS No protection from umbrella brand name Added expenditure CONS
- 93. SAV V Y Increaseaudience 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
- 94. SAV V Y Increaseaudience 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
- 95. SAV V Y Increaseaudience 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
- 96. SAV V Y Increaseaudience 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
- 97. SAV V Y Increaseaudience 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
- 98. SAV V Y Increaseaudience 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
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- 101. SAV V Y WHY? “Becauseno guts, no glory!”