Assignment 2

Group: 7
Sanyam Kumar
Tejaswi Nettem
Priya Kumari
Siddharth Gautam
Kanika Goraya
Sneha Bharti
Anshu Kandpal
Dhiraj Suryavanshi

Which option we would choose and why?

Ans. Based on Consumer Trends Commented [DA1]: why consumer trends? how will it
help in achieving the target
Loveliest
● Previous demographic : women over 35 age Commented [DA2]: state that you are analyzing the
market share of different brands and consumer groups-
● USP: prefer classical scent associated with prestige and elegance how will this help in improving sales?
● Market share : 3%
● Channel : Departmental stores and mass store
Natural
● Younger demographic
● USP: Environmentally safer and green products
● Market Revenue: Grew from $7 million in 2006 to $9.1 million
● Channel: Departmental store and mass stores
Other brands of Flare
● Women between 25-34 age
● USP: Women starting out their careers
● Channel: Departmental store and mass stores
Savvy
● Women aged between 18-34
● USP: Classy, upbeat,modern and stylish
● Channel: department stores and Mass stores

Channel :
% of total flare sales from different channels
Savvy

We can choose Plan 3 - 3.39% of the total revenue for the marketing of savvy. We can launch it
as its own brand not under the umbrella of loveliest. Since consumers are wanting prestige
brands at lower prices due to the recession and moving towards mass stores we will launch savvy
in mass and departmental stores . We will prepone the release to avoid clash with our competitor
aromatique which is similar produvct to savvy. competitor aromatic.
Promotion
Consumer-
Timings - Mother’s Day, Winter Holidays
Gift with purchase or purchase with purchase in form of packs
Mixed prepacks features as a variety of products from the same or different product lines

Trade promotion
Timing: periodically
Promotional prices of 5% to 10% above the usual 40% margin

Market Analysis of Flare Fragrance-

SWOT Analysis
Strength-
1)Dominance in sales of fragrances through mass channels
2)Power of loveliest as a strong umbrella brand
a)all the fragrances launched by flare are under the brand name loveliest
b)the brand loveliest has the larger share of the annual ad and promotions budget- roughly 70-80% Commented [DA3]: strong salesforce
3) Has a strong and loyal customer base among 34+ aged successful women Commented [DA4]: strong brand image, has offered
innovative products
Weakness-
1)Sales of Flare doesn’t mirror the overall market in prestige/department store, drugstore chains and
internet
2) Brand appeal majority to only 34+ aged women
3) old promotional themes and heavily skewed allocations

Opportunities-
1)Savvy would take sales from competitors’ brands in the $30–$45 range
2) Potential to penetrate further with the existing brands Commented [DA5]: drugstores are upgrading their
3) can tap into the new market that is untapped of 18-34 years old women. image, can help in positioning

Threats-
1) They can cannibalize their own market if they launch other products under the same range and
under the same demographic
2) Overpowering of the market share by the competitor, namely Aromatique since it was also
launching under the same price bracket i.e $42.