Flare Fragrances Company, Inc.

1. Evaluate the Savvy program. Consider how the Dulcet announcement affects your
evaluation and whether Savvy could be successfully launched without the Loveliest
umbrella branding?
A) Savvy- it is a new brand which flare wanted to launch in 2009 among focus group of
young women aged 18-34 yrs . The projected pricing point was $40 for 1.7 oz. spray
bottle and they want to introduce that product initially in department stores before
main streaming into mass markets, or it could be sold in the mass market from the
outset. They also want to launch savvy as independent product from loveliest, because
they thought this would help in improving their sales in department stores. These are
the things which we considered after evaluating all the alternatives.
B) As Aromatique launched its product Dulcet in the same category which we planned to
launch our brand savvy and with the price of $42 for 1.7 oz and spent communication
budget of $10 Million, we became clueless because we want to launch similar product in
the same segment of young women’s. So, we went into dilemma of whether to launch
the product or not. In my view I shouldn’t launch the product right after the launch of
Dulcet instead I will spend some time analysing the consumers behaviour on
competitors Dulcet and launch savvy while making appropriate changes in packaging
and introduce in the department store. Savvy could be launched successfully by
investing more on communication budget because it is a new brand and I need
incessant advertising in order to bring awareness and trust among target segments. But
I think it would be more beneficial for Flare by introducing savvy under loveliest
umbrella because it will offer cost benefit, bring in sense of trust because young woman
already might aware of the brand and its demand among 34-60 aged women population
and will attract more customers by outset in department stores and by taking necessary
steps in order to increase sales in both stores.

Submitted by- Akula Padma Priya, PGP12101, SecB