Lumena Home Fragrance

Case Prompt

LumenaHome is a US-based home fragrance company headquartered in Seattle. LumenaHome currently offers a wide variety of home fragrance products such as soy candles, room sprays, wax melts, reed diffusers, linen sprays, etc. The brand is considered to be high end/luxurious but reasonably affordable. The company primarily serves women between age group 20–65. Recently, the company has been trying to answer the following question: What is the best strategy to grow profits?

Case Background

Client/Company information

• Company manufactures and sells all products in US only, but is open to expanding abroad
• Products are currently sold exclusively online

Industry/Competition information

• The home fragrance industry is currently experiencing growth, specifically the natural aromatherapy segment

Financial information

• LumenaHome is open to the idea of launching a new product as a way of growing if it translates to at least a 10% growth in the existing profit base; no budget/capital constraints
• 2026 profit was $600M

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General response summary

Framework Buckets

• Internal & external are good broad buckets to begin to structure ways to grow profits

Potential ideas associated with internal growth

• Increase prices / decrease costs
• Encourage additional purchases from existing customer base
  • i.e. a rewards program, increasing frequency and mediums of marketing communication
• Introduce a new product

Potential ideas associated with external growth

• Acquire a new product or home fragrance company
• Begin to offer products abroad
  • An excellent answer might suggest an abroad market with reasoning
• Expand channels products are offered
  • i.e. home goods stores such as Indigo, HomeSense, West Elm