Defying the ‘Rules’ of Product Lifecycle

Turning an underperforming fragrance line into a multi-million euro revenue generator

The challenge

Where the brand started

Portfolio imbalance resulting from a high volume of flanker and end-of-lifecycle lines
Brand equity dilution as heavy diversion drove down prices
Reduced turnover and profit as sales and margin declined while costs held steady
Incomplete market knowledge despite a strong distributor network

The solution

01
Reviewed lines that met core criteria
- Luxury flanker and/or end of product lifecycle line
- Strong latent demand
- Ability to offer Beautynet exclusive distribution
- One line with two references was selected
02
Collaboratively agreed a detailed sales plan
- Exclusivity — removed the line from general distribution and ceased marketing activity
- Geography — northern and eastern Europe plus the US, where latent demand was strongest
- Channel — pharmacy chains, selected ecommerce and bricks & mortar stores
03
Managed end-to-end distribution
- Warehousing — goods collected and stored
- Compliance — regulatory and customs
- Distribution — direct to agreed channels
- Sales portal — full transparency of sales data