Flare Case Study PDF

Pratikshya Mishra
founder@powepointguard
5.70 Billion $
Women
Percentage
15.6
Men
12.3
11.5
9.5
33%
67%
3.8 Billion $
Depuis
Suzanne Aromatique
Weba
Flare
(From Exhibit 1)
(From Exhibit 1)
Dominance in sales of fragrances through mass channels.
(From Exhibit 1)
% of Total Flare Sales

2%
Mass Market
24%
4%
Drug Stores
70%
Department
Store/Prestige
Other Channels
(From Exhibit 1)
Flare Share of Channel

Mass Market
23%
77%
Flare
Others
(From Exhibit 1)
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)

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.
Dominance is sales of fragrances through mass channels.

Has a strong and loyal customer base among 34-65 aged
successful women.
Sales of Flare doesnt mirror the overall market in

prestige/department stores, drugstore chains and
internet.
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)

internet.
Brand appeal majorly to 34+ women.

internet.
Brand appeal majorly to 34+ women.
Relatively low ad spends, old promotional themes and
heavily skewed allocations in favour of umbrella brand.
N/A
Mass market evolution

as consumer traffic
grows in these stores.
N/A
They overhaul beauty

departments by
stocking trendier
fragrances and
employing beauty
consultants.
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)

Just over 20% people admit to buying fragrances from
drugstores. (Exhibit 5)
Drugstores typically want sell only Flares highest

turnover items.
Diversification of product portfolio.

Loveliest
Natural
Summit
Flare
Awash
Essential
Swept
Away

Loveliest
Natural
Summit
Flare
Awash
Essential
Swept
Away
Savvy?

Loveliest
Natural
Summit
Flare
Awash
Essential
Swept
Away
Savvy?

Loveliest
Increases the age bracket of

Flare.
Natural
Summit
Flare
Awash
Essential
Swept
Away
Savvy?

Loveliest

Flare.
Natural
Opens up possibilities of
vertical expansion.
Summit
Flare
Awash
Essential
Swept
Away
Savvy?

Loveliest

Flare.
Natural
vertical expansion.
Summit
Flare
Better utilization of channels

Awash
Essential
Swept
Away
Savvy?

Loveliest
Increases the bracket of Flare.

vertical expansion.
Natural
Flare
Better utilization of channels

Prevents stagnation of the
brand.
Summit
Awash
Essential
Swept
Away

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

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

May dilute the brand image of Loveliest leading to loss of
faithful and loyal customers.
If the launch fails, Flares position in the segment will be
hard to gain back.
SAV V Y
SAV V Y
SAV V Y
SAV V Y
WHY?
Because brands that
dont evolve with
time, eventually die!
Prefers luxury brands

Heavy user
Loyal to signature scents
Familiar with Loveliest
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
Loveliest
Loveliest
Awash
Loveliest
Awash
Swept away
Loveliest
Awash
Swept away
Essential
Loveliest
Awash
Swept away
Essential
Summit
Loveliest
Awash
Swept away
Essential
Summit
Natural
Name: Dagny T.
Age : 24
Degree : MBA
Major: International
Business
Name: Dagny T.
Age : 24
Degree : MBA
Business
Smart, Ambitious,
Starting to climb the
corporate ladder.
Erstwhile user of Marc
and Jacobs
Name: Dagny T.
Age : 24
Degree : MBA
Business
Smart, Ambitious,
Starting to climb the
corporate ladder.
Erstwhile user of Marc
and Jacobs
Wants to change to
something that spells
young professional
Savvy User
Loveliest
Awash
Swept away
Essential
Summit
Natural
Savvy
Natural, Essential
Natural, Essential
Swept away, Awash
Natural, Essential
Swept away, Awash
Loveliest
Natural, Essential
Swept away, Awash
Loveliest
Summit
Natural, Essential
Swept away, Awash
Loveliest
Summit
Savvy
Natural, Essential
Swept away, Awash
Loveliest
Summit
Savvy
Savvy X
SAV V Y
Dulcet
SAV V Y
We should go ahead with the Savvy plan.
And pre-pone the release.
Dulcet
SAV V Y
WHY?
Offence is the best
Defence!
Duclet
SAV V Y
SAV V Y
SAV V Y
SAV V Y
No protection from umbrella

brand name
PROS
CONS
SAV V Y
Increase audience without any

baggage of the Loveliest
branding.
PROS

brand name
CONS
SAV V Y

branding.
PROS

brand name
Added expenditure
CONS
SAV V Y

branding.
Opportunity for expansion in
future and increased sales
PROS

brand name
Added expenditure
CONS
SAV V Y

branding.
future and increased sales
PROS

brand name
Added expenditure
Cost of Failure extremely high
CONS
SAV V Y

branding.
future increase in sales
Huge market open for the taking
PROS

brand name
Added expenditure
CONS
SAV V Y

branding.
future increase in sales
PROS

brand name
Added expenditure
Dulcet will give tough
competition, market will take
time to stabilize
CONS
SAV V Y

branding.
future, increase in sales
Huge market open for the taking,
Parent company provides

credibility and aspirational value
PROS

brand name
Added expenditure
Dulcet will give tough
time to stabilize
CONS
SAV V Y
branding.

brand name

future, increase in sales
Added expenditure
Parent company provides

credibility and aspirational value
Duclet will give tough

time to stabilize
Opportunity to break away from

association with only old people.
PROS
CONS
SAV V Y
SAV V Y
SAV V Y
WHY?
Because no guts, no
glory!

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Pratikshya Mishra

Dominance in sales of fragrances through mass channels.

% of Total Flare Sales

Flare Share of Channel

Flare Share of Channel

Dominance in sales of fragrances through mass channels.

Dominance in sales of fragrances through mass channels.

The brand Loveliest has the larger share of the annual

Dominance is sales of fragrances through mass channels.

Sales of Flare doesnt mirror the overall market in

Sales of Flare doesnt mirror the overall market in

Sales of Flare doesnt mirror the overall market in

Mass market evolution

They overhaul beauty

Possibility of dilution of the Loveliest brand image.

Possibility of dilution of the Loveliest brand image.

Possibility of dilution of the Loveliest brand image.

Possibility of dilution of the Loveliest brand image.

Drugstores typically want sell only Flares highest

Diversification of product portfolio.

Diversification of product portfolio.

Diversification of product portfolio.

Diversification of product portfolio.

Diversification of product portfolio.

Increases the age bracket of

Diversification of product portfolio.

Increases the age bracket of

Diversification of product portfolio.

Increases the age bracket of

Better utilization of channels

Diversification of product portfolio.

Increases the bracket of Flare.

Better utilization of channels

Diversification of product portfolio.

Will increase cost.

Hell Yeah Plan

Will increase cost.

Hell Yeah Plan

Will increase cost.

Hell Yeah Plan

Will increase cost.

Hell Yeah Plan

Will increase cost.

Will increase cost.

Prefers luxury brands

Chic, Brand oriented

Prefers luxury brands

We should go ahead with the Savvy plan.

And pre-pone the release.

No protection from umbrella

Increase audience without any

No protection from umbrella

Increase audience without any

No protection from umbrella

Increase audience without any

No protection from umbrella

Increase audience without any

No protection from umbrella

Increase audience without any