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Flare Fragrances Company’s Strategy

Summary of the Case Study

This work outlines a strategy that Flare Fragrances Company Inc. will use to regain its competitiveness in the market following a year of reduced company sales. Recent trends in the volume of sales indicated that the business had lost track and was only struggling to make sales. The CEO, Joely Patterson, established that the company would not continue with the worrying trend of the 2014 trading period in which it realized only a 2% growth in revenues. Arlmont Associates advised Flare that there were two options that the latter would use to regain and even improve performance in terms of sales. First, the firm had the option of introducing a new perfume brand into the market while the second was to improve on the already existent brands. Therefore, the objective of this work is to help the CEO of Flare Fragrances to come up with a better alternative between the two. More precisely, the work will discuss the launch of a new product called Savvy into the market.

Flare Company Analysis

Flare Fragrances Inc. began as a small company that manufactured perfumes for women in 1955. Currently, it is the fourth most influential company in the US market for women fragrances. The corporation has had many success stories with brands, and the most prominent one is Loveliest, which was launched in 1975. The mentioned brand continues to be one of the most popular brands in the US market according to the case study. In 2013, the company realized approximately 93% of its total revenues from sales made from six of its best brands of fragrances. The firm achieved a 9.5% of the total revenues generated in the entire fragrances market of the US, which was $ 5.70 billion. However, there was a likelihood that the company would hit the lowest mark of its sales because of a financial crisis in 2014. The company sells much of its products through premium and mid-tier stores. Presently, the firm has a target of realizing a $ 7.5 increase in revenues generated in 2015 and $ 12.5 million in two years.

Customer Analysis

There are three major customer segments in the market; they are the consumers of the premium, prestige, and mass brands. These segments have differences in terms of their needs, which are often determined by their willingness to spend on fragrances. However, the company has only been operating in the category of mid-tier and mass brands. The firm enjoys about 3.5% of its share in the mid-tier brands because its veteran brand, Loveliest is one of the leading in this category. On the other hand, the company offers affordable brands to the customers in the mass brand category. Customer loyalty to brands in the market results from the ability of the brands to satisfy their needs in terms of class and affordability. Therefore, the company stands a chance of gaining from improving product brands and upgrading to premium brands especially after dividing the market into age categories.

Competitor Analysis

There are two bases of competitors in the market – those that compete with in terms of products and those who compete for resources. The case study precisely mentions Armomatique, Dupuis, and Suzanne Weber as the greatest competitors of the company. The latter-mentioned companies compete Flare both for its customers and its marketing resources because they offer products that almost match in quality.

The Choice of Marketing Strategy

The company should consider launching new products for the prestige customer segment because the business has not exploited this category of products. For a long time, the corporation has been a major player in the mass market category. The company already has an established brand in the prestige category, which will create an added advantage if the new brand is marketed using its parent company name. The parent company branding effect has a competitive edge against generic products within the same market. Customers will identify Savvy as soon as they learn that it is a brand name from the company. Therefore, the rationale for launching a new product is that the existing Loveliest brand has an effect of upholding the image of the company to customers. Another reason is the fact that Loveliest has been in existence in this category for long and stable sales and revenues. Raising desired volumes of sales in 2015 and 2016 will not be easy using the same brand. Therefore, a new brand is launched.

The Target Market

The company will target both male and female lines of products across the middle-class section. The middle-class section for this case refers to the category of clients who can afford the prestige category of products. The company also segmented its target market according to age groups so that it could be as relevant as possible. For instance, it targets women from 18 to 34 with particular interest because they are the largest consumers of prestige brand products.

Value Proposition

The main objective of a value proposition is to emphasize the exclusiveness of the products offered by Flare Fragrance Company. A proper value proposition needs to identify the strengths of a particular firm. In the case of Flare Fragrances, the company needs to emphasize its quality and reputation underlining that its brand called Loveliest has been loved by the customers for the last four decades, so the quality of Flare Fragrance products is proved by time and tens of thousands of devoted and satisfied customers. Further, the marketers need to draw parallels between the old and trusted product and the newly released Savvy and mention that Savvy is going to be the new Loveliest. This way the company’s value statement could include the following message: “We are one of the oldest companies at the American men and women fragrance market dedicated to providing our clients with a wide range of unique, luxurious and mesmerizing fragrances. We are the creators of Loveliest, one of the most loved American fragrances that has been on the market for almost four decades and never lost its popularity. Today, we are ready to launch Savvy our latest creation. It is young, authentic, and ready to conquer. It is Savvy, your new Loveliest”. This value statement contains the most important characteristics required to make a valid promise to the customers concerning the quality of Flare Fragrance Company products, attract new customers and retain the regular ones. Besides, this value statement can be re-shaped and made shorter and more consumer-friendly to fit into an advertising slogan for Savvy.

The Marketing Mix

This section will consider the 4Ps of marketing; Product, Place, Price, and Promotion. First, the business will offer versatile fragrances to customers of the prestige class packed in compressed air-tight spray bottles. The customers will find the perfumes in drug stores. The perfumes will cost about $30-$60 for a 1.8 oz. bottle, which is within the range of prices in the market. The company hopes to promote its products through all available methods such as the internet, the print media such as fashion magazines and visual media such as television. The internet is one of the most popular methods of promotion today, so the business will gain a wide range of customers. The rest of the chosen media also affect attracting a large customer base for the company because of their popularity among the target group.

Calculations of the Pricing Strategy

The company should employ the Cost-Plus Pricing Method, which allows it to consider the costs of production and set prices at which they will make profits. For instance, if the raw materials cost $20 for one unit and the cost of production is $7, the cost of one unit will be:

20+7=27, but the margin is 40%

Therefore, the price of one unit will= 27+ (40%*37)=41.8

The customer will pay $41.8 for a unit of the perfume. The chosen calculations will give the company a profit of 40% of its cost price, which is competitive considering that one of its competitors will offer a new product at $42.00.

Calculations for Media Budget (Using 2008 figures)

Television = [(34.2*73.5*42456817)/10000]=10672370

Magazine= [(34.2*11.5*42456817)/10000]


Radio= [(34.2*12.1*42456817)/10000]


Internet= [(2.8*34.2*42456817)/10000]


Total Media Budget=14520231.41

Calculations of the Pro Forma Income Statement

Calculations of the Pro Forma Income Statement.

There is a projection that the sales of the company will grow within the two years. However, the taxes and the expenses produced adjustments, which resulted in total revenue of $12.5 million.


Flare Fragrances will realize an increase in its sales volume in the two years because the developed strategy will make it more market-specific in production. The company will fill the gap that had remained blank for long by concentrating on the production of prestige brands. The performance of the Savvy brand will depend on the pricing, branding strategies, and promotion activities that the firm will adopt. A new product will supplement and benefit from the brand supremacy of Loveliest, which is a part of parent company branding.

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Work Cited

"Flare Fragrances Company’s Strategy." StudyKraken, 17 Oct. 2021,

1. StudyKraken. "Flare Fragrances Company’s Strategy." October 17, 2021.


StudyKraken. "Flare Fragrances Company’s Strategy." October 17, 2021.


StudyKraken. 2021. "Flare Fragrances Company’s Strategy." October 17, 2021.


StudyKraken. (2021) 'Flare Fragrances Company’s Strategy'. 17 October.

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