Excerpt from Case Study:
Marketing Difficulties and Alternatives for Sparkle Fragrance
Flare Fragrance faces a multitude of issues at the time of the situation study, with the uncertainty with the economic situation not simply leading to a true and already-present drop in growth rates and fresh sales nevertheless also so that it is difficult to select and enhance a strategy for future expansion, and with intense competition and expansion in the industry creating further complications and problems. Selecting suitable demographics to get future revenue growth, determining how to most effectively choose and put into action a funnel strategy, and a variety of other specific detailed and tactical concerns exist for Surface and its professionals and managers, and how these challenges will be met will determine how powerful the company will probably be in the coming years. Even though many of these difficulties are not marketing challenges in and of themselves in any direct sense, all of them affect the advertising channeling tactics and issues that the company faces now and will confront in the coming years, and al could have an impact for the decisions produced in regards for the marketing difficulties specifically. It is only in the circumstance of current large-scale financial issues and industry competition, that is, a marketing problem can be correctly understood and addressed.
The central promoting challenge that could be identified in cases like this is the need for Flare to capture greater market share and accomplish sales development – twin outcomes which might be truly two sides of the identical coin, jointly cannot happen without the various other – inside the coming years. Though this is often said to be the central promoting challenge pertaining to virtually any company in any market in almost all circumstances, it is an especially pressing and quick concern in this instance as a result of the number of options the organization has in attempting to go after this target and the various obstacles and opportunities linked to each choice or technique. The release of the new Knowledgeable brand and fragrance can be one choice – or one set of alternatives, truly, as there are significant potential variances in the pursuit of this tactic – that could potentially expand market share in the young (18-34) demographic although also raising the buck value of sales by using a higher asking price. Proper funnel strategies will need to be created and implemented to carry this off effectively, however , and marketing costs would be considerable without clearly predictable results; the question of releasing the manufacturer outside the Loveliest umbrella brand would must also be answered. Alternatively, Flare could cancel or postpone the Smart release and focus promoting efforts on improving funnel distribution and sales of existing items, especially Natural for the desirable young demographic. Getting a appropriate solution to this promoting challenge will demand a consideration of numerous market and industry elements in addition to stated organization goals and projections.
Business and Industry Analysis
In order to effectively examine alternative sales strategies, it is necessary to build a comprehensive watch of the internal and external situations Sparkle Fragrance detects itself in, meaning a great assessment of the strengths, weaknesses, opportunities, and threats which the company confronts as it techniques forward and attempts to obtain greater business and a tremendous growth in sales earnings. The company contains a significant power in the brand dedication of the consumers and the longevity of its personal fragrance and umbrella company, Loveliest. A recognizable and trusted manufacturer is a significant marketing durability regardless of industry, and though Loveliest is not a first-tier or premier brand it is a long-worn and long-trusted perfume and name which will continue to provide the company well if correctly updated and capitalized (Armstrong Kotler, 2010). The company even offers a sizeable market share and has not just remained rewarding but offers achieved growth during the recession, which is one other significant durability. Though an integral part of the challenge facing the company is a slower-than-desired development rate, the very fact that one could still speak of a growth rate in positive conditions means that there exists cash flow and capital available for a marketing marketing campaign and possibly for a cool product launch. Weak points exist inside the company’s self confidence and, it appears, in some aspects of its encounter, as new product launches and new (to the company) distribution stations seem to be uselessly utilized when real efforts are made, and perhaps they are often basically ignored or purposefully prevented outright. Filling up knowledge gaps and more effectively utilizing available resources could be very helpful.
This potential clients directly into one of the main opportunities Surface has: getting to a younger market through even more careful route strategy. Though the company has relatively strong sales, it does not effectively employ many of the distribution channels that currently exist – the Internet, drugstores, and more. Marketing on the Internet is visible as a daunting prospect to unfamiliar businesses, but most of the same fundamental rules apply and this method allows a company to reach a far younger demographic – just the demographic that Flare is usually hoping to entice (Armstrong Kotler, 2010). Even though sales of fragrances have got recently dropped worldwide in respect to recent research, amounts have remained more constantly strong in the usa, and the disruption of corporations with higher international propagate could also be a boon intended for Flare (Bombourg, 2012). Sales are also anticipated to climb within a longer-term trend of urbanization and increased focus on grooming and personal appearance is constantly on the occur in ethnicities throughout the produced world, and this means that if perhaps Flare can easily gain a stronger establishment now it can be that much more in a position to take advantage of upcoming market progress (GIA, 2011). At the same time, respect brands experienced a sharp drop-off during 08, and 2009 does not give any crystal clear signs of pain relief, making the entrance of the new product and particularly of a fresh higher-tiered item especially dangerous at this time (Burr, 2009). All this, of course , significantly impacts the chosen industry strategy.
There are numerous distinct alternatives from which Flare’s executive and management team could select in taking company frontward and applying a new marketing strategy. Differences in these kinds of alternative strategies range from the intense to the even more subtle, and not space enough right here to extensively list and discuss most potential strategies. A consideration of three wide strategy choices delivers a understanding of the potentials the business faces and the various challenges it will talk with in the future.
1st, the company can move forward with the Savvy fragrance aimed at young women and with a higher price tag, hoping to increase market share and per-unit revenue and thus fulfill the targeted revenue growth amounts. Significant cash would need to end up being spent on marketing in order to achieve the product sales level the company is definitely seeking, even so keeping the Savvy fragrance within the Loveliest umbrella brand would reduce the marketing costs and give the advertising campaign (and the perfume) a primary edge in terms of efficacy/sales. True efficacy in that product launch, with the demographic focus which the company has expressed a desire in, would require a greater versatility and comprehensiveness in terms of route strategy, particularly with a greater Internet presence in terms of product supply and advertising, without which usually younger buyers simply are not reached. The Loveliest company could also be detrimental to achieving revenue with a more youthful demographic thanks specifically to the longevity and lack of “newness. “
For this reason and others, a second alternative will be for the business to move in advance with the Experienced release as Flare’s initial new brand outside the Loveliest umbrella. This would avoid potential brand dilution, enable the organization to reconstruct a more youthful and more fresh image pertaining to the brand in general, and possibly create a distinct department just for this fragrance series that would enable a more quickly transition out of current modes of accomplishing business and towards actions and marketing strategies that are more flexible and alert to current styles and requirements. Marketing costs will significantly increase with no Loveliest identity if the same revenue level can be desired, however , and a the chances of a new brand have all of the problems of a new brand – problems the business hasn’t addressed in decades, and that its current management and officials do not appear fully equipped to handle. These two options have the problem of being yet yet another new scent in an overloaded sea of competitors.
A 3rd option eliminates this significant problem – all of the prblems connected with a new company, in fact – by steering clear of the release in the new manufacturer itself. Instead of moving forward with Savvy, the corporation could emphasis its initiatives, including and particularly its marketing efforts, in the creation of more effectively applied marketing and syndication channels and campaigns intended to promote current brands to younger buyers. The appealing performance amongst the younger market of Characteristics in particular shows that more effective channel strategies and marketing work could quickly lead toGet your custom Essay