Ans 1: In early 1960’s, Flare was only a small manufacturer of women’s perfume, and was moving up in the fragrance market from its existing 4th position. One of Flare’s greatest strength was its dominance in sales of fragrance through mass channels, mainly the market of prestige brands . The “Loveliest” brand held the company’s old-fashioned strength due to its widespread recognition. Flare targeted the women aged in the range of 34-65 years, and achieved to have a strong women customer base. The weakness of Flare’s position was due to the low sales in the high-end departmental stores, online sales, and medical stores. The company did not invest heavily on advertisements as it was too dependent on the “Loveliest” brand. The other weakness was to target only the women who were above 34 years.
Ans 2: A few growth strategies considered by Flare were to build the line of scented products rather than concentrating on fragrances, and increasing the prices across the brands. The two growth strategies suggested by Arlmont Associates for Flare were to increase the company’s selling efforts through drug store channel, and introduce a new perfume brand. Pros of increasing effort through drug stores would increase sales as these stores have more consumer traffic. These consumers buy such perfumes for inventory, research on it and use it later after consultation. The cons of these strategies would be less number or people buying perfume from a drug store, and the drug stores selling only those products from Flare that have highest turnover.
Ans 3: Flare CEO Joely Patterson, had created a chain of drugstore sales team that had experience and skills at sales management level, and some members were still in the learning the skills to market Flare products. Flare must reconsider drugstore distribution through redesigned drugstores with upscale, customer oriented outlets (for example, CVS 360), and mass market
retailers that attract younger women .
Ans 4: Flare had already considered launching a new brand “Savvy” in 2009. When sales of current products decline over the past few years, or if there are complaints on products by consumers, distributors, or retailers, the company may improve the existing product or develop a new product . Introducing a new product diversifies the portfolio, and opens new markets as the brand is not stagnated. The company can target for consumers above 34+ years and the sales can be increased with the change the old brand. New brand will increase the cost and may also sideline the reputed “Loveliest” brand that has been used by old consumers.
Ans 5: According to me Savvy must be launched in combination with the loveliest branding for the company, Flare, to be relevant, stimulate sales, and position itself at the top in the perfume market. There will be an increase in the consumers for Savvy apart from the ones who use “Loveliest”. Without the umbrella branding, there are high possibilities of Savvy failing in the market. With Aromatique announcing Dulcet, the competition between Dulcet and Savvy would be tough as they both target the same audience. Even with this competition Savvy must be launched due to the huge available market, future expansion opportunities, and be connected with the new generation, without losing old people.
Ans 6: As stated by , the 2008 Focus Groups Sessions: Summary of findings was conducted on women that revealed the name Savvy for women’s fragrance is seen as stylish, upbeat and classy. When women get more information from research and are asked to provide inputs from others they often loop back to previous stages in purchase path . For Savvy introduction into the market, I would recommend the advertising budget according to Exhibit 7 Plan 3 in Three media plans for Savvy Introduction , considering that the brand Savvy would change the fortune of Flare
International Marketing
Ans 1: Referring Figure 1 The 2015 Harley-Davidson Street 750 , Harley Davidson has launched 2 new models in the motorcycle segment. Based on behavior based segmentation Harley has specifically launched these models for the female audience as this model is light weight.
Ans 2: The market segments pursued by HSBC include geographical and demographic segmentation. The company initially launches a marketing plan in a country and later extends it to other geographical locations. The positioning strategy that defines HSBC are the points-of-difference, and points-of-parity. HSBC consumers strongly relate themselves to the brand, as it is a global bank with a worldwide branched network.
Ans 3: Bandai, a toy and video making company headquartered in Tokyo, Japan, makes plastic model kits such as the Godzilla, models such as super-sentai and gundam, fun goods, hobby supplies, and figurines. In global marketing, market segmentation is critical because of wide difference in cross-border consumer needs and lifestyles . Bandai must make Americanized versions of the toys and tie up with an American company that can sell Bandai products. Being in a video making business, Bandai can utilize endorsing its products on DVD and online videos. The 4 segments of Bandai are the Toy Hobby segment, Content segment, Amusement Facility segment and the Others segment .
Ans 4.a: Glaxo Pharmaceuticals had already introduced Imitrex or Imigran in US and UK, and seeing the potential for a larger market for Migraine Glaxo Wellcome introduced a second migraine medication, the Naramig in UK and Amerge in U.S.
Ans4.b: Glaxo must position Naramig in UK through the Replacement strategy to attract the 67% market share of the nearly 90% available market. Naramig must be promoted as a patient-friendly medication that provides best relief in the market.
Ans 4.c: Choosing option 4: Replacement strategy for Naramig was the right decision.
Ans 4.d: American market is vast, geographically and demographically compared to UK. Glaxo Wellcome can position Amerge in US through alternative positioning strategy due to the differences in healthcare industry in U.S and UK.
References
Bandai Namco Group. (2013). Annual Report. Japan: bandaiinamco.co.jp. Retrieved from http://www.bandainamco.co.jp/ir/annual/pdf_bnh/en_2013_9.pdf
Barletta, M. (2003). Marketing to Women: How to Understand, Reach, and Increase Your Share of the World's Largest Market Segment. Dearborn Trade Publishing.
Beri, G. (2007). Marketing Research. Tata McGraw-Hill Education.
Kotabe, M., & Helsen, K. (2009). Global Marketing Management (5e ed.). John Wiley & Sons, Inc.
Quelch, J. A., & Donovan, L. D. (2010, May 05). Flare Fragrance Company, Inc.: Analyzing Growth Opportunities. Harvard Business School Brief Cases, 1-11.
Stock, K. (2014, June 02). Can Harley-Davidson Finally Woo Women? Retrieved from http://www.businessweek.com/: http://www.businessweek.com/articles/2014-06-02/can-harley-davidson-finally-woo-women#r=nav-r-story
Figures
Figure 1 The 2015 Harley-Davidson Street 750
