Q1. Assess the strengths and weaknesses of Flair’s position in the women’s fragrance market?

Strengths of Flare Fragrance in the women’s fragrance market:

1. Notable experience: The Company was started in 1955 and has succeeded in positioning
itself in the fourth position in the US women’s fragrances market. It holds 9.5% share in the
retail market(of women’s fragrances)
2. Brand awareness and popularity of sub brands/products: Its successful branding is
based on the 33-year old Loveliest position as a classic scent associated with prestige
and elegance, which also serves as an umbrella for five more recently introduced
brands in the product line that appeal to a wider range of demographic. FFCI owns 6
of the most popular women’s fragrance brands in the US market namely Loveliest,
Awash, Essential, Natural, Summit and Swept Away. There is a strong brand image
of the parent company in the US market.
3. Strong customer base for market penetration: The case mentions that 74% of the matured
women and 75% of teenage girls were users of fragrances. The FCCI were one of the most
trusted brands in this market segment for both matured women and younger female
demographics standing for health and environment friendly trends.
4. Distribution Channels: FFCI dominated their sales via mass channels, more particularly in
the “prestige” brands market segment. The company enjoyed strong distribution networks
and channels at the US premium and mid-tier department stores (Saks, Macy’s). They also
had presence established in the discount department stores (J.C. Penny, Target, and Wal-
Mart) and chain pharmacies.
5. Price points and segmentation: The company targeted market coverage of all three
segments primarily premium customers with premium brands ranging from 70 USD per
ounce spray bottle; mid tier customers with mid level brands priced at 30 USD per ounce
spray bottle, and mass brands at more affordable pricing available at mass merchandisers
and discount stores.
6. Advertising, Promotions, and Marketing Communication: There were regular new product
introductions. Maintained advertising awareness by maintaining both price competitiveness
and prestige image.

Weaknesses of Flare Fragrance in the women’s fragrance market:

1. High dependence on medium price segment: Flare is highly dependent on this price
segment as well as the mass market for majority of their sales. There is increasing
competition with new product introductions which are supported by adequate ad budgets.
2. Increased price pressure from mass merchandisers: Also, the drug store chains wanted to
sell only Flare’s highest turnover items, which would adversely affect Flare’s relationship
with other retail outlets.
3. Reliance on single brand name: This might prove to be inadequate to span an increasingly
segmented market.
4. Advertising woes: FFCI’s industry advertising share was on the decline and weakening.
Loveliest was likely to be outspent by the competitors. The company evidenced a 3% overall
annual decline because of global financial crisis;
5. Budgetary concerns: The budget for advertising was not homogeneous, 70–80% of
advertising budget allocated for umbrella brand Loveliest, but the other five brands
sanctioned 20% to 30%. Adequate budget for market research was unavailable.