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Marketing of products in any market has its own risks. In a business market, high risks represent market opportunities that may have high returns. Universal Scentsations exposed itself to market risks, as it chose to become the Australian agent for American fragrances. However, introducing less known fragrances to the Australian market was a good strategy for the company. This is because it had opened itself to the world and was able to sell more products within one year. This represents one of the examples in which the company swum upstream and exposed new market opportunities (Perrone, n.d.: 395). In addition, the company was able to identify a unique market niche.


It is essential to understand that a unique market opportunity requires a company to invest enormous amounts of money in order to attract consumers at the micro level. This will ensure that the company’s products penetrate a market and increase sales (Walker, Gountas, Mavondo, & Mullins, 2009: 134). Universal Scentsations had to spend much on the market campaigns, such as on involvement in community activities (Perrone, n.d.: 393). Thus, strategic and financial leverage required the company to spend much on the marketing campaign. The ability to penetrate the Australian market for foreign fragrances was not an easy task. Advertizing in the televised media coupled with the gifts given to customers were some of the strategies the company spent its money on.

However, Universal Scentsations could have also sold its products to a larger and more established fragrance company. From the case study, the company had to forfeit their representative rights to the American designer fragrances. This was due the drying up of the company’s cash flow and the limited strategic leverage. Thus, the company could not continue its operations.
The company could not get financial support from the banks, since the situation had already become critical. The marketing strategy that utilized the company’s value proposition through consumer value and needs was tearing it down in the glamorous world of designer perfumes. The company had little financial backing and the market began to flood with similar marketing gimmicks (Perrone, n.d.: 395). This may have made it impossible to get more financial leverage.

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