Problem Statement
Flare Fragrances Company is experiencing a stiff declining sales growth in
2008 and is considering options in order to deliver at least $7.5 million
incremental revenue in 2009 and reverse the declining sales trend.
Facts Proof
A stiff declining sales growth Back in 2007, sales had risen
12%;now, less than a
year later, the
estimated year-end
number projected only
2%.
Options to deliver incremental revenue One, increase efforts in the
drug store channel;
two, introduce a new
perfume brand.
Situation Analysis
Flare
Buyers:
Consumers trade
down to mass
alternatives,
Prestige image in
consumers’ mind,
Competitors:
Depuis, Suzanne
Weber, and
Aromatique
Suppliers:
Not identified in the
case
