Flare Case Analysis

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Flare Fragrance Case Analysis Competency "Lindt & Sprungli of Switzerland" (an example demonstrated in class) a super-premium chocolate company entering Canada were facing tough competition. The company did not have enough resources to take on its rivals. So it withdrew and choose a different approach by positioning itself in a desert category (with the concept of chocolate-wine pairing) instead of snack category. Similarly, as per analysis Flare has less or no competitive advantage against its rival company Aromatique in an already crowded market and hence Flare cannot launch Savvy as such. Flare could position Savvy differently by marketing to a different (broader or niche) segments, or create point of difference for Savvy (product differentiation), or take the help of family brand (line extension), or explore other options to flourish (channel expansion, acquiring the competitors, etc). But, exploring for new customer segments is unfavourable as the market is highly fragmented. Also, Line extension causes brand dilution if the new product Savvy is not deemed classy. Hence, Flare could potentially loose the current loyal customer base. Moreover, Product differentiation is difficult to achieve in a crowded market(over 400 new fragrances have been launched in 2007). Starbucks(an example from class) planned to increase its coffee sales. After a thorough analysis it was concluded (in unison) that Starbucks should focus on second most visiting visitors as the most frequent visitors are already generating maximum sales. Flare is experiencing a similar situation (performing exceptionally well in mass channels and Loveliest product category) and using the above idea it can be concluded that Flare should focus on drugstores and increase its sales in Summit and Essential brands. Flare can penetrate into Drugstores at cost of turning over the

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