Swot Analysis and Flare Fragrances Swot
Flare Fragrances Company, Inc.
Britt Miller Rebecca Orsher Allie Steinle 12/07/2010
Executive Summary
• Flare Fragrances has experienced declining sales growth • CEO set goal to increase incremental revenue by at least $7.5M and reverse declining sales trend • Conducted two SWOT analyses to determine best strategy
– Emphasize Natural and increase drugstore presence
• Developed advertising budget and implementation plan
Flare Fragrances
Agenda
• SWOT – Savvy launch • SWOT – Natural emphasis and drugstore expansion • Financials – advertising budget and pro forma income statement • Implementation • Conclusion
Flare Fragrances
SWOT Analysis: Savvy
Internal factors
Strengths
• Name • Favorable sales projections
Weaknesses
• • • • Unknown brand name Cannibalization of current sales For-go investment in current, established brands Higher price
Flare Fragrances
SWOT Analysis: Savvy
External factors
Opportunities
• Reach a new customer segment: 18 – 24 year old females • Arlmont study predicts prestige image fragrances will be best performers • Innovation and originality • Build relationships with department store channel
Threats
• • • • • • Dulcet brand to be launched at same time High competition in market Difficult economic conditions – consumers trade down Declining sales in high-end department stores New fragrance may migrate to mass market quickly Competitors outspending Flare in advertising
Flare Fragrances
SWOT Analysis: Natural/Drugstore
Internal factors
Strengths
• Already have a drugstore sales team • Strong brand image and well-known products in “prestige” market • Loveliest is one of best-selling women’s fragrances in mass market
Weaknesses
• Without Savvy launch, Natural will be the only product for younger market • Drugstore sales team performance is uneven
Flare Fragrances
SWOT Analysis: Natural/Drugstore
External factors
Opportunities
• • • • Expand into retail areas in which Flare
Britt Miller Rebecca Orsher Allie Steinle 12/07/2010
Executive Summary
• Flare Fragrances has experienced declining sales growth • CEO set goal to increase incremental revenue by at least $7.5M and reverse declining sales trend • Conducted two SWOT analyses to determine best strategy
– Emphasize Natural and increase drugstore presence
• Developed advertising budget and implementation plan
Flare Fragrances
Agenda
• SWOT – Savvy launch • SWOT – Natural emphasis and drugstore expansion • Financials – advertising budget and pro forma income statement • Implementation • Conclusion
Flare Fragrances
SWOT Analysis: Savvy
Internal factors
Strengths
• Name • Favorable sales projections
Weaknesses
• • • • Unknown brand name Cannibalization of current sales For-go investment in current, established brands Higher price
Flare Fragrances
SWOT Analysis: Savvy
External factors
Opportunities
• Reach a new customer segment: 18 – 24 year old females • Arlmont study predicts prestige image fragrances will be best performers • Innovation and originality • Build relationships with department store channel
Threats
• • • • • • Dulcet brand to be launched at same time High competition in market Difficult economic conditions – consumers trade down Declining sales in high-end department stores New fragrance may migrate to mass market quickly Competitors outspending Flare in advertising
Flare Fragrances
SWOT Analysis: Natural/Drugstore
Internal factors
Strengths
• Already have a drugstore sales team • Strong brand image and well-known products in “prestige” market • Loveliest is one of best-selling women’s fragrances in mass market
Weaknesses
• Without Savvy launch, Natural will be the only product for younger market • Drugstore sales team performance is uneven
Flare Fragrances
SWOT Analysis: Natural/Drugstore
External factors
Opportunities
• • • • Expand into retail areas in which Flare