flare case study - savvy

Pratikshya Mishra

founder@powepointguard

67%

33%

Women

Men

3.8 Billion $

5.70 Billion $

15.6

12.311.5

9.5

Depuis Suzanne Weba

Aromatique Flare

Percentage

(From Exhibit 1)

(From Exhibit 1)

Dominance in sales of fragrances through mass channels.

(From Exhibit 1)

70%4%

24%

2%

% of Total Flare Sales

Mass Market

Drug Stores

Department Store/Prestige

Other Channels

(From Exhibit 1)

(From Exhibit 1)

23%

77%

Flare Share of ChannelMass Market

Flare

Others

23%

77%

Flare Share of ChannelMass Market

Flare

Others

23.12.6 5.7 1.8

76.997.4 94.3 98.2

Flares Others

Mass Market

OtherChannels

Department Stores/Prestige

DrugStores

(From Exhibit 1)

Dominance in sales of fragrances through mass channels.

Power of „Loveliest‟ as a strong umbrella brand.

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.

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.

Sales of Flare doesn‟t mirror the overall market in

prestige/department stores, drugstore chains and

internet.

23.12.6 5.7 1.8

76.997.4 94.3 98.2

Flares Others

Mass Market

OtherChannels

Department Stores/Prestige

DrugStores

(From Exhibit 1)

Sales of Flare doesn‟t mirror the overall market in

prestige/department stores, drugstore chains and

internet.

Brand appeal majorly to 34+ women.

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.

N/A

N/A

Mass market evolution

as consumer traffic

grows in these stores.

They overhaul beauty

departments by

stocking trendier

fragrances and

employing beauty

consultants.

Possibility of dilution of the „Loveliest‟ brand image.

Possibility of dilution of the „Loveliest‟ brand image.

Drugstore reps, even after suitable training, have shown

uneven results in the last couple of years.

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)

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.

Diversification of product portfolio.

Diversification of product portfolio.

Flare

Loveliest

Summit

Essential

Swept Away

Awash

Natural

Diversification of product portfolio.

Flare

Loveliest

Summit

Essential

Swept Away

Awash

Natural

Diversification of product portfolio.

Flare

Loveliest

Summit

Essential

Swept Away

Awash

Natural

Savvy?

Diversification of product portfolio.

Flare

Loveliest

Summit

Essential

Swept Away

Awash

Natural

Savvy?

Increases the age bracket of

Flare.

Diversification of product portfolio.

Flare

Loveliest

Summit

Essential

Swept Away

Awash

Natural

Savvy?

Increases the age bracket of

Flare.

Opens up possibilities of

vertical expansion.

Diversification of product portfolio.

Flare

Loveliest

Summit

Essential

Swept Away

Awash

Natural

Savvy?

Increases the age bracket of

Flare.

Opens up possibilities of

vertical expansion.

Better utilization of channels

Diversification of product portfolio.

Flare

Loveliest

Summit

Essential

Swept Away

Awash

Natural

Savvy?

Increases the bracket of Flare.

Opens up possibilities of

vertical expansion.

Better utilization of channels

Prevents stagnation of the

brand.

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.

Will increase cost.

2006 2007 2008 2009 (predicted)

Minimum Plan

Mild Plan

Hell Yeah Plan

Will increase cost.

2006 2007 2008 2009 (predicted)

Minimum Plan

Mild Plan

Hell Yeah Plan

Will increase cost.

2006 2007 2008 2009 (predicted)

Minimum Plan

Mild Plan

Hell Yeah Plan

Will increase cost.

2006 2007 2008 2009 (predicted)

Minimum Plan

Mild Plan

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, Flare‟s 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

don‟t evolve with

time, eventually die!”

Prefers luxury brands

Heavy user

Loyal to signature scents

Familiar with Loveliest

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.

Loveliest

Awash

Loveliest

Swept away

Awash

Loveliest

Swept away

Awash

Essential

Loveliest

Swept away

Awash

Essential

Loveliest

Summit

Natural

Swept away

Awash

Essential

Loveliest

Summit

Name: Dagny T.

Age : 24

Degree : MBA

Major: International

Business

Name: Dagny T.

Age : 24

Degree : MBA

Major: International

Business

Smart, Ambitious,

Starting to climb the

corporate ladder.

Erstwhile user of Marc

and Jacobs

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

Savvy User

Natural

Swept away

Awash

Essential

Loveliest

Summit

Savvy

Natural, Essential

Natural, Essential

Swept away, Awash

Loveliest

Natural, Essential

Swept away, Awash

Natural, Essential

Swept away, Awash

Loveliest

Summit

Natural, Essential

Swept away, Awash

Loveliest

Savvy

Summit

Loveliest

Savvy

Savvy X

Natural, Essential

Swept away, Awash

Summit

SAV V Y Dulcet

SAV V Y Dulcet

We should go ahead with the Savvy plan.

And pre-pone the release.

SAV V Y Duclet

WHY?

“Offence is the best

Defence!”

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.

No protection from umbrella

brand name

PROS CONS

SAV V Y

Increase audience without any

baggage of the Loveliest

branding.

No protection from umbrella

brand name

Added expenditure

PROS CONS

SAV V Y

Increase audience without any

baggage of the Loveliest

branding.

Opportunity for expansion in

future and increased sales

No protection from umbrella

brand name

Added expenditure

PROS CONS

SAV V Y

Increase audience without any

baggage of the Loveliest

branding.

Opportunity for expansion in

future and increased sales

No protection from umbrella

brand name

Added expenditure

Cost of Failure extremely high

PROS CONS

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

No protection from umbrella

brand name

Added expenditure

Cost of Failure extremely high

PROS CONS

SAV V Y

No protection from umbrella

brand name

Added expenditure

Cost of Failure extremely high

Dulcet will give tough

competition, market will take

time to stabilize

Increase audience without any

baggage of the Loveliest

branding.

Opportunity for expansion in

future increase in sales

Huge market open for the taking

PROS CONS

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

No protection from umbrella

brand name

Added expenditure

Cost of Failure extremely high

Dulcet will give tough

competition, market will take

time to stabilize

PROS CONS

SAV V Y

No protection from umbrella

brand name

Added expenditure

Cost of Failure extremely high

Duclet will give tough

competition, market will take

time to stabilize

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

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!”