Documente Academic
Documente Profesional
Documente Cultură
Introduction
In this assignment I will be marketing a product for a business that will appeal
to a wide market segment. The business I have chosen is Avon, to market the
product I will need effective marketing to achieve the business objectives. To
carry this out many factors will have to be considered such as; target markets
and delivering the desired goods/services more effectively and efficiently than
its competitors. Avon will decide upon what it is they are selling, its price, who
they are selling to, where it is being sold and why people buy that type of
product.
The following section will be covered fully with significant detail to points in the
following sections:
1
Reema Mehta
I chose to look at the hair care range for several reasons, even though it is not
one of Avon’s original products that started up the business, but it is still a
major sector in the Avon Company, in addition to the fact that it is largely
influenced by customer demands. As well this, it is based in an extremely
competitive market, which is influenced by consumers’ preferences.
Secondly, the hair care range provides a wide collection of products that are
designed to be attractive to many different Market segmentations, which
includes teenagers as well as men.
I have chosen to focus on hair care range due to the fact that Avon has
become a major participant in the hair care business, as more people are now
becoming more conscious of their appearance.
Avon is a PLC as well as a leading global beauty company, with $10 billion in
annual revenue. As the world's largest direct seller, Avon markets to women
in more than 100 countries through 5.4 million independent Avon Sales
Representatives. With its foundation going back to over 100 years, today
Avon's product line includes beauty products, fashion jewellery and apparel,
and features such well-recognized brand names as Avon Color, Anew, Skin-
So-Soft, Advance Techniques, Avon Naturals, and Mark.
Throughout the years the Avon brand diversified its activities. In 1964 Avon
Inc enters the area of men’s perfume, with the launch of the "Tribute for Men".
The brand also expands its distribution network internationally to many
countries, in particular to the Far East and to Canada.
I have chosen Avon as the company I will be focusing on. This is because I
personally feel that they are the number one hair care brand, and have
diversified into many sections of the of the fashion industry, and within this
sector they have created a wide array of products that are well established
and successful. This will mean that Avon would need a high quality marketing
scheme which will enable them to stay at the top.
I have chosen to venture into the consumer products as I would like to target
this particular sector, due to the fact that it has the largest target market,
2
Reema Mehta
which is the general public. I have chosen the hair care range as it is a major
contributor of the Avon turnover making it the company’s largest division in
the UK. This will allow me to look at the marketing strategies, as well as the
aims and objectives of the business.
Mission Statement:
“We will build a unique portfolio of Beauty and related brands, striving to
surpass our competitors in quality, innovation and value, and elevating our
image to become the Beauty Company most women turn to worldwide.”
Competitors
Avon’s competitors are in a hurry to catch up and to even possibly take their
place as leaders in the industry.
3
Reema Mehta
In terms of the hair care products Avon provides L’Oreal is its main
competitor. This also included the fact that both businesses have similar
marketing strategies. This can be seen as both companies use celebrity
endorsement as their unique selling point.
○ L’Oreal
○ Mac Cosmetics
○ Maybelline
○ Max Factor
○ Neutrogena
○ Revlon
○ Bobbi Brown
○ Ralph Lauren
○ Estee Lauder
○ Elizabeth Arden
Avon’s main target market is women of ages of 18-50, and is starting to aim at
men between the ages of 30-40. They target cosmetic but over years Avon
has targeted other markets, with the production of products such as jewellery
box and dressing gowns aimed at children.
The main competitor for Avon is L’Oreal. Both companies are similar in
structure, and have a worldwide presence in the beauty and cosmetics
industry. In this highly competitive market, both companies are increasing
their leads by buying up smaller hair care companies. However they are using
different tactics in order to combat competitions.
Avon uses an extensive amount of promotion for their products. Avon will
have to find different tactics to help themselves beat the competition, with the
shadow of L’Oreal behind them, eager to catch up.
The trends of the hair care products have changed during year. In order to be
able to cater for the growth and profitability made by consumers Avon will
have to detect these trends earlier. They will need to venture into new
markets, in order to do this.
Avon has introduced a range of men’s products but still haven’t target men for
their hair care products. Below there are two example of the types of products
created for men.
4
Reema Mehta
As mentioned above we can see that the male market is growing as more
men are now becoming more conscious of their appearance. This is a
contributing factor to why Avon’s product sales were at their highest during
2006.
Diversification
Avon has diversified into numerous different market segments since it began
and has managed to branch out into many different areas of the health and
beauty market. Avon expanded worldwide in perfume and cosmetics since the
mid 1950’s. Avon acquired Tiffany Jewellery in 1979; other acquisitions
included health care companies such as Foster Medical and the Mediplex
Group. Later, the company launched Women fashion, which was proven to be
a success as customers responded with orders surpassing $125 million,
which was developed with designer Diane Von Furstenberg Avon’s. With this
being a success, it led to the launch of Men’s clothing and Children’s clothing.
Product Range
Avon has a vast range of products, all of which can help to get a better overall
image of the different segmentations their products are aimed at as well as
how the products differentiate.
By looking at Avon’s existing product range, we will be able to see the various
segments the products are aimed at as well as the difference between certain
product ranges.
The Avon product range can be fitted under the following categories.
Cosmetics – Make- Up
1. color trend multistick lip - This is Avon’s latest product from the
cosmetic lips range. This was due to consumer segmentation, as they felt
it was needed to vary the product to match consumer groups. This product
would be segmented due to geographical, demographical and
psychographical factors, as it would be aimed at women in their early 20’s,
5
Reema Mehta
especially those from a well off background e.g. in the social economical
group A, B or possibly C1.
2. Avon Uplifting Mascara -This is Avon’s new mascara; this was due to
consumer segmentation. This product would also be aimed at women in
their early 20’s as well as aiming at women in the social economical group
of A, B or possibly even C1.
3. Avon Nailwear Nail Enamel - this is Avon's nail varnish introduced due to
homogenous preferences, as well as competition. This product would be
aimed at 25 – 50 year old women, as well as aiming at women in the
social economical group of A or B or C1. This product would be
segmented due to geographical, demographical and psychographical
factors.
There is a wide range of different qualities the product range of Avon’s and
must have in order to carter to everyone’s individual needs. These may be
geographical, demographical or even psycho graphical factors. Therefore the
products that Avon sells are all targeted at satisfying the different needs of
their market segment. This is done by altering the brand image to fit into the
6
Reema Mehta
desired market. For example Avon’s men’s aftershave and Avon’s Eau De
Porfame, cater the needs of both men and women.
On the other hand, Avon still creates products for niche markets. This can be
seen through the products created in the accessories range. These products
are of a higher quality, and a reasonable price. Consumers are less likely to
buy this product unless from a well know retailer. People who have a
reasonable wage package are also able to afford these goods.
Avon’s hair care range is aimed at anyone who would like to take care of their
physical appearance, but with its reasonable price ranges, it mainly targets
people between the ages of 18-50. In addition this product is not as easily
obtained as some of the other product in the market and mainly be found at
retail stores such as Debenhams and Boots.
Another reason why Avon is able to place its products in this section is due to
the fact that Avon operates in an A-list world. This is due to promotion carried
out by celebrities who give the company high prestige and status. This would
mean that it would allow Avon to have control over price, as there would be a
higher demand for this product due to the fact that it has been advertised by
celebrities. Therefore unskilled workers and unemployed people are less likely
to buy the products due to the high prices in comparison to some of Avon
other competitors.
Avon operates in the secondary sector this includes those economical sectors
that create a finished product with the use of scientific technology.
7
Reema Mehta
Business Activity
Avon, the company for women, is a leading global beauty company, with $10
billion in annual revenue. As the world's largest direct seller, Avon markets to
women in more than 100 countries through 5.4 million independent Avon
Sales Representatives. Avon's product line includes beauty products, fashion
jewellery and apparel, and features such well-recognized brand names as
Avon Color, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals, and
Mark.
http://www.avoncompany.com/investor/businessnews/index.html
In 2005 Avon’s expectations when they managed to not only improve the
value of their share for their shareholders. The following figures are from their
annual report.
(Taken from the www.avon.com)
8
Reema Mehta
As you can see from the table above, Avon has managed to not only improve
profits but also increase sales and earnings per share. This shows that Avon
is growing successfully.
By looking at Avon’s
revenue by region, we can
see how much revenue
Avon has in each region.
The graph shows that
most of Avon’s revenue
comes from Latin and
North America
Taken from
www.wikinvest.com/stock/Avon_
Products_(AVP)
By looking at Avon’s
operating profits by region,
we can see how much
Avon profit
differentiates
Avon has in each
themselves
region.from
The graph shows
competitors
that most of Avon’s
operating profit comes
Avon prides itself with
from Central and Eastern
the fact that
Europe they use
cutting edge technology
to in order
Takento from
research
better www.wikinvest.com/stock/Avon_
and improved
product for the
Products_(AVP)
consumer, in order for
them to get the best
possible results from
Avon’s products.
9
Reema Mehta
Avon is a house brand that has been sold around the world for over a century.
The life of Avon products has been long and therefore consumers can see
that the product has a long life cycle and therefore the quality of the product
has to be of a high standard. This will enable Avon to differentiate themselves
as a consumer think that they are a long lasting reliable company for the
reason that they have a good corporate image. This is important as if the
products are successful and fulfil the needs of the market and the consumers,
it is likely that they will continue to buy the products and possibly venture into
other areas of Avon’s products.
The ways that Avon are able to differentiate themselves from their competitors
as the allow them to create brand loyalty which overall will increase revenue
and profit helping to achieve the aims and objectives of the company. As part
of Avon’s strategy to increase their market share and maintain customer
loyalty, may be one of the main reasons as to why they have an ever
increasing product range.
Throughout the years Avon has had strong investments in scientific research
in order to create a better range of products. By continuing this, Avon can sell
a wider range of products by creating new and innovative products. Due to
investments in computer-technology, the company will be able to produce
more products they are selling. This will ensure that the consumers will have
lead to a change and more opportunity to sell new and existing product to a
large customer base, with the help of promotion which will in turn increase the
market share and help them to maintain a large sector of the market.
Looking at the above article extract, this article is an extract from a newspaper illustrating the
development of the research into their product.
Looking at Avon’s competitors and their emphasis on the use of science and technology in order
to improve their products
However the use of celebrity endorsement will have a big effect on the overall
capital produced by the business. This is because everything comes at a
price. This can be seen through their multi year contract with Reese
Witherspoon. Nevertheless the use of celebrity endorsement seems to be
10
Reema Mehta
working, as they are able to reach new audiences worldwide, with the help of
celebrity endorsement.
Avon are an important brand as they are prominent in the cosmetics industry
as they are leaders which it comes to the cutting edge technology as well as
making competitors such as L’Oreal egger to catch them up.
Like all products Avon’s products go through a product life cycle. Therefore it
is important to analyse which position each product is in, to inform the
manufacturer, on what option and actions they should take, in order to benefit
the company overall.
A products life cycle can be divided into several stages characterized by the
revenue generated by the product, as shown below.
Introduction Stage
11
Reema Mehta
target the better off, who are usually in A, B and C1 of the social
groups.
• Promotion - Promotion is aimed at building brand awareness, and to
encourage potential retailers to carry the product. This is important, as
we want the product to be successful so that Avon will produce a
higher revenue
Growth Stage
In the growth stage, there is a period of rapid revenue growth. Sales increase
as more customers become aware of the product and additional market
segments are targeted. Once the product has been proven a success and
customers begin asking for it, sales will increase further as more retailers
become interested in carrying it out.
In this stage we can see that Avon hair care for women grows steadily over a
certain time period so it can be assumed that the same products for men will
also be successful. This is due to the fact that Avon has been able to succeed
in creating popular products for its consumers.
The following are some of the market mix implication which are apart of the
growth stage.
Maturity stage
The maturity stage is the most profitable. As sales continue to increase, they
do so at slower pace. This is because the brand awareness is strong, as well
as advertising expenditures will be reduced. Competition may result in
decrease market share. The competing products may be very similar at this
point.
When the Avon hair care products are in their maturity stage they have
reached their saturation. This would also mean that their sales are currently
still quite high and they still have a lot of buyers who consistently purchase the
product. Their cosmetics are an example of this, as they are still being bought
on a regular basis.
The following are some of the market mix implication which are apart of the
maturity stage.
12
Reema Mehta
Decline stage
The following are some of the market mix implication which are apart of the
decline stage.
Extension Strategies
Avon has used many different types of extension Strategies in order to
maintain an increase sale of products.
13
Reema Mehta
aftershave to jewellery. Avon cosmetic has a wide selection to suit all its male
customers. New men’s range products do not do well in the market as the
brand is not familiar in the market. For this reason, Avon could use their
strengths as a developed brand to produce another product for the men’s
range, if they are able to identify a gap in the market. Avon’s products are
affordable, which is a major advantage to its competitors. Also, due to the fact
that Avon has frequent advertisements on television, this makes their
products more appealing and attractive and in turn enticing individuals to buy
their products. The way in which the product is advertised is portrayed to be
of very high quality.
If Avon is able to aim in this overall direction, they are more likely to succeed.
In order to fulfil their aim they must look to achieve the following objectives.
14
Reema Mehta
All of the methods above have been previously used to promote products, but
in order to retain market leaders; Avon must explore more and new
imaginative ways of promoting and promoting techniques. However, the
process of researching ways of promotion and the change of improving the
liquidity remain same or even have exceeded expectations.
By fulfilling the objective listed above, Avon will need to be able to continue to
their market leader status as well as gaining a larger proportion of the market.
Potential customers would want to buy products, which are of high quality as
well as being good value for money. These two factors will help Avon to get
the result which they have predicted.
Consumers are easily persuaded when it comes to trying new products in the
cosmetics industry, as market trends change rapidly.
Avon will need to be able to target different cultural groups as they need
different qualities from their products. They will need to address this matter as
this will have an effect in their product production as well as saving them
money, as they are conducting more focused advertising. Their objectives
must stem from the customers needs and wants in order for them to exceed.
By diversifying, Avon will be able to venture into new segment of the market.
By doing this, it will ensure that they will have a more reliable status of
company, as they have many other products to fall back on. Avon has already
ventured into many other segmentation of the market ranging form fashion to
toiletries. This will enable them to achieve growth and improve their market
share, as well as improving the companies overall image.
Avon must also improve their marketing position in many countries. They
have already started by increasing brand awareness in many other
international countries where the presence of Avon was minimal. Due to the
increase in promotion and advertising, they were able to achieve growth in
those areas throughout the past few years. Now Avon must achieve a greater
presence in major countries.
Avon should be able to specifically target their market, and aim to sell more of
their product, gain more loyal customers in order to improve their position in
international markets.
Market Segmentation
It is important for Avon to identify who their target market is. By doing this is
saves them time and money, as well as making it more efficient for them to
15
Reema Mehta
aim the product at a smaller precise market, than one large one, but it may be
a vague market.
Avon’s target market are women (and men for some of their products), who
live in more developed countries. As women are the largest target market in
the beauty industry, it is natural for Avon to aim products at them, as this will
increase the prospect of profit. It is aimed at women in developed countries,
as it is unlikely that people in un-developed countries are more likely to care
about their appearance and spend money on beauty products as well as the
fact that hair care products and perfumes are a luxury item.
It is better that Avon find their target market, as they could waste lots of
money on advertising campaigns to places where hair care produce are
unnecessary. Also they must look at the different places that they will place
their advertising campaigns.
Although the market segmentation is primarily with women, there are also
other markets which Avon targets. When it comes to cosmetics the
segmentation used there are both gender and age, which are expenditure
variables.
When Avon first started to sell cosmetics there target market were women
aged 25+. They were the target marker, as they seemed to be the most
conscious of beauty, and were willing to spend money on making themselves
look better.
Avon is a house brand that has been sold around the world for over a century.
The life of Avon products has been long and therefore consumers can see
that the product has a long life cycle and therefore the quality of the product
has to be of a high standard. This will enable Avon to differentiate themselves
as a consumer think that they are a long lasting reliable company for the
reason that they have a good corporate image. This is important as if the
products are successful and fulfil the needs of the market and the consumers,
it is likely that they will continue to buy the products and possibly venture into
other areas of Avon’s products.
The ways that Avon is able to differentiate themselves from their competitors
allows them to create brand loyalty which overall will increase revenue and
profit helping to achieve the aims and objectives of the company.
The following chart shows us the different age and gender segments Avon
has created their products for in order to target different markets.
16
Reema Mehta
From the chart we can see that there
is an empty market for men. Therefore
it is a good opportunity to expand into
different target markets.
Many surveys have shown men between the ages of 35 to 50 have started
becoming more conscious of their appearance. For this reason, there is
greater incentive for males to use hair care products. This would mean that
Avon would have a new target market to increase the possible profit they
could make. By having men as a new target market Avon could not only
obtain new consumers, they would also gain profitability from these new
consumers, which in the long run would increase market share.
Avon’s marketing aims are closely linked together with their target markets.
By identifying a target market they will be able to define how they will be able
to differentiate themselves from competitors which will be able to create more
capital for the company, in the long run.
Moreover, by expanding the business into new target markets they will be
able to fulfil two of their major aims of achieving growth, as well as gaining a
better brand image.
Avon would need to carry out extensive market research in order to identify
their target market as well as finding out what they require. Doing market
research would mean that they would be able to achieve their objective of
creating more innovative products, which would help them to diversify into
17
Reema Mehta
In addition the production of new products will help to balance their product
range, as it means that they can replace older products which may be in their
maturity stage of their product life cycle, nevertheless with cosmetic products
people tend to stick with them for longer, than other product on the market.
Through careful analysis of market trends Avon can highlight their competitors
who already cater for the target market, e.g. Just for Men, which in this case
are men’s hair care products. By doing this Avon will be able to look at their
products quality, as well as their unique selling point and possibly incorporate
this into their new product. This will also help them to identify a unique selling
point which would mean that Avon would have a competitive advantage.
In order to target the market effectively Avon must provide for the target
market effectively. In order to do this they need to adapt to a marketing
strategy. Avon must consider which segment of the market they would like to
enter, and as they have already targeted the female market it is important
they target the male market as well, nonetheless only a small proportion of
Avon’s current products are aimed at men, and by growing into this market it
would mean that they will be able to fulfil their major aims of achieving growth,
as well as gaining a better brand image, and grow as a company, rather than
working in a niche market.
There are many links between Avon’s aims and objectives and the different
target markets. However there are other market segments within these. Age is
important segments as older men would probably require different qualities in
a product as younger men would require.
The table below shows that links between Avon’s aims and objectives as well
as various target markets.
Objectives
1. Maximise sales
Gender
Age
Young
Old
and profits
Men 2. Increase the brand
Women
image
3. Developing new
products
Aims
4. Growth in market
share
5. meeting consumer
needs
18
Reema Mehta
Maximise the sales and profit - Avon’s main objective is to maximise sales
and profits, in order to maintain a steady growth of the business. This enable
them to cater to the need of different segments of the market, which will result
in them gaining a larger customer base, which in turn will help them to
generate more revenue. By moving into different market they will gain a larger
market share, as the size of their customer base is comparative to the profit
they will make.
Increase the brand image - In order to increase the brand image, Avon will
need to look at the different segmentation of the market, for example,
demographical segmentation, geographical segmentation and finally
psychological segmentation. By focusing on these Avon will be able to make
their products to cater to the needs of the entire market, so people will be
more likely to buy the product as it has been catered for their needs. This will
help to increase sales, as the amount of sales is proportional to the amount of
business awareness they will receive.
19
Reema Mehta
20
Reema Mehta
Assessment evidence B:
Market research
Market Research
Finding out what the customer wants lies at the core of market research.
Many organisations think, or rather assume that they know how their
customers perceive their products and services. All too often their ideas about
what the customer wants are wide of the mark.
The purpose of market research includes finding out and analysing the market
which the business wishes to venture its products into. Market research is
carried out using various techniques, which all benefit the business in the long
run. The different techniques used in market research help to:-
○ Identify a target market to launch you product at
○ Identify the size as well as structure of the market, which will give you
an idea of how it works
○ Identifying potential competition, as well as analysing their market
trends.
○ Help you to identify gaps in the market, which will mean that you now
which product should be produced to fill the need
○ User testing and feedback can be used, so the company knows how
successful the product will be, once it has been introduced into the
market.
○ Monitors market trends as well as monitoring the performance of the
product on the market.
21
Reema Mehta
Market research provides data which can be used to help make potential
difficult decisions, in all areas of the planning of the marketing activities, as
well as the marketing mix which is made up of the 7 P’s.
In addition, we can also identify the unique selling point of the product, by
looking at the market. This is an efficient way of making the product
successful as it would only require the company to work on the negative
factors to make it more of a popular product.
Target Market
As Avon is a large company and has a clear target market more its products.
As mentioned before, it is now clear that more men are becoming conscious
of their appearance and by Avon expanding into this product range will help to
maximise their capital.
The market Avon targets is the older and people from a fairly high income
group. It is therefore important that research is done in order to find out what
appeals to the target market as well as the number of potential customers.
22
Reema Mehta
necessary in order to succeed. It will also help us to identify how well the
product will do when put up against the rivals products.
The two main types of research that can be used are primary and secondary
research. Both types of research have their advantages and disadvantages
but both of them will benefit a company in many different ways.
The most common primary research resources used are surveys e.g.
questionnaires and surveys as well as informal or structured interviews. Also
gaining information through observations overt or covertly is another method
of primary research.
Avon like many other organisations may undertake test marketing. This is
where a new product is tested on a certain region, and then they can
investigate the market trends and sales. From this they can decide weather or
not to launch the product in the rest of the country.
Like all types of research it is impossible to ask all the potential customers
views on the product they are planning to launch. In order to get an overall
idea, Avon must use the results taken by certain groups of the population to
make a prediction about the rest of the market.
23
Reema Mehta
Primary data is essential to find out what potential customers think of certain
products within the company. Secondary data cannot be used in this occasion
as there will not be enough data available about the new product.
An advantage for Avon that comes from using primary data is that the
information collected will be specific for the needs and purpose of the
company. Nonetheless with secondary data the information received can be
too broad and not precise enough for the product.
Like all data types, primary data does have its disadvantages. The main
downfall of secondary data is that it is labour intensive, as well as being a
slow and expensive process. Primary data also has limitation when it comes
to the market in general. This is because it can help Avon to identify
customer’s needs; by they may not be from new market segments.
Identifying the customer’s needs would mean that Avon is fulfilling their aim of
growth, as well as remaining market leaders. In conclusion primary research
is essential for Avon to succeed with their new target market, men.
On the other hand, secondary data that may have been collected for other
products within the company may not be suitable for this purpose, as it may
only cover a small area of what the company needs.
24
Reema Mehta
succeed, which will help towards the, marketing objective of creating new and
innovative products.
25
Reema Mehta
The questionnaire was carried out in hotels, this is due to the fact that
there are a wide range of people located in nearby areas, also in a hotel
many people come from different countries, which would allow me to ask
a wide range of men who are likely to know about Avon and who are
willing to consider using men’s hair care products.
26
Reema Mehta
Questionnaire
Please take a few minutes of your time to complete this questionnaire. We are currently
undertaking research on men’s hair care products, and would appreciate your input. The
information collected in this questionnaire will be anonymous, and will not be passed on to
third party businesses.
£20 - £25
£26 - £30
£31 - £40
£41 –
Other
1. When purchasing a hair care product what qualities would you look
for?
Product Itself
Quality
Brand
Price
Other
Chemists
Supermarkets
Department Stores
Internet
Other
Television
Radio
Magazines
Flyers
Internet
Other
Questionnaire Results
Percentag
Question Frequency e
27
Reema Mehta
hair dye?
£3.00 - £5.00 25 50%
£6.00 - £8.00 19 38%
£9.00 - £10.00 3 6%
£10.00 + 3 6%
Other 0 0%
28
Reema Mehta
All the questions that I have asked in my questionnaire will contribute to the
decisions made when it come to the marketing mix. Each of the questions can
fit less than one of the heading of Price, Product, Place and Promotion.
Price
Question: How much would you be willing to spend on hair care products?
This question will help directly with the pricing of the product. By asking this
question, it will help to reduce the risk of overpricing the product, as well as
the fact that if the product is under priced it may not help Avon to overcome all
production and research costs. In addition, potential customers may think that
the product is of a poor quality, which is shown on its price. This could have
the opposite effect when attracting potential customers.
Pricing products highly, could also have a negative effect on Avon. This is due
to the fact that customers may be deferred from buying the product as they
feel the price is too expensive and not enough value. However, Avon must
find a price where customers feel that the quality of the product is good, as
well as a price that reflects the quality of the product.
By asking what price the consumer is willing to pay, Avon can identify a price
band for which consumers are willing to pay for the product. This would also
aid Avon to stand out from their competitors as they would be charging a
more reasonable price for their products.
Also, it would help Avon determine price elasticity by identifying how much the
company is willing to stretch their prices before the sales start to decrease.
This will help fulfil the objective of maximising the companies’ capital as the
sale for the product would increase.
How much would you be willing to spend on hair dye?
6%
6%
£3.00 - £5.00
£6.00 - £8.00
50%
£9.00 - £10.00
38% £10.00 +
Looking at the results we can see that 50% of people are willing to pay
between £3.00 - £5.00, with 38% of people willing to pay between £6.00 -
29
Reema Mehta
£8.00 and finally 6% of people willing to pay both £9.00 - £10.00 and £10+.
Therefore 88% of people are willing to pay between £3.00 - £8.00.
Place
Question: Where would you most likely buy hair care products?
This question asks people about the place section of the marketing mix. By
finding out preference people have, Avon could decide where to sell their new
product. Although Avon sell a large amount of women’s hair care products,
they have a good idea and means to finding out where products are sold the
most. This product has a different target market, so they may have different
preferences when they would like to purchase their hair care products
compared to women.
Where would you most likely buy hair care
products?
2%
18%
20%
Chemists
Supermarket
Department Stores
Internet
20%
Other
40%
Looking at the results we can see that people prefer to by hair care products
in department stores, supermarkets and the internet, with the most popular
being the internet with 40% of people selecting it.
By finding out where people have purchased hair care products in the past, it
helps Avon to find out where to sell their products and also helps Avon to
identify where their competitors products are sold. By doing this it shows Avon
where people know to buy hair care products as well as where people will not
consider buying hair care products.
30
Reema Mehta
Product + Price
Question: Which qualities would interest you when purchasing a hair care
product?
This question asks about the ways in which Avon could alter their product to
increase their overall sales. By asking what one would look for in a product, it
would help identify what the consumer really wants. This question also finds
out about the price elasticity, as by incorporating the qualities within the
product ad differentiating Avon from their competitors with these qualities,
there is a possibility that Avon can increase the price of their hair care
products.
22%
40% Quality
Packaging
Brand
14%
Price
24%
By looking at the results we can see that the main qualities people are willing
to buy products based on the quality of the product as well as the price.
Therefore Avon must integrate this within their products. By doing this they
will be able to attract more customers who will be willing to pay more for the
product. Also with 14% of the people saying that they look at the brand of the
product means that Avon must make sure that extensive adverting is used to
tell people about the product.
Promotion
Question: Which medium of advertising do you find most effective when it
come to buying hair care products?
This question asks what type of advertising entices people to buy hair care
products. By asking this question it enable Avon to know what mediums of
advertising will be the most effective which will help to save a lot of time and
money.
31
Reema Mehta
Looking at the results we can see that 32% of people prefer television with
24% of people preferring magazines. Therefore television and magazines
could be the medium type of advertising used by Avon.
My results show me that the idea of a men’s hair care product will be
successful once the other factors are taken into account.
Looking at the results we can see that 50% of people are willing to pay
between £3.00 - £5.00, with 38% of people willing to pay between £6.00 -
£8.00 and finally 6% of people willing to pay both £9.00 - £10.00 and £10+.
Therefore 88% of people are willing to pay between £3.00 - £8.00.
Looking at the results we can see that people prefer to by hair care products
in department stores, supermarkets and the internet, with the most popular
being the internet with 40% of people selecting it.
By looking at the results for the 3rd question we can see that the main qualities
people are willing to buy products based on the quality of the product itself as
well as the price.
Therefore Avon must integrate this within their products. By doing this they
will be able to attract more customers who will be willing to pay more for the
product. Also with 14% of the people saying that they look at the brand of the
32
Reema Mehta
product means that Avon must make sure that extensive adverting is used to
tell people about the product.
Finally by looking at the results from the last question we can see that 32% of
people prefer television with 24% of people preferring magazines. Therefore
television and magazines could be the medium type of advertising used by
Avon.
Secondary research could also help identify the size and structure of the
market and the way in which it works. Also it could also be used to identify the
competition.
Swot Analysis
Strengths
○ Avon’s Corporation is a very profitable organization, earning in excess
$8.1 billion worldwide as of 2005.
○ It is a global cosmetics and fashion brand built upon a reputation for
excellent products and services. It has markets in over 135 countries.
○ Avon has strong ethical values and an ethical mission statement as
follows, ‘to meet fully the obligations of corporate citizenship by
contributing to the well-being of society and the environment in which it
functions.’
33
Reema Mehta
Weaknesses
○ Avon has strong competitors who have been selling products for years.
For this reason, they already have brand loyalty towards them, and
consumers may no be willing to try new products.
Opportunities
○ Avon is very good at taking advantage of opportunities.
○ New products and services that can be retailed on their website, such as
the new hair care products
Threats
○ Who knows if the market for cosmetics will grow and stay in favor with
customers, or whether advancements in technology will wipe out the
cosmetics market
Competitor Analysis
Competitors Name:
○ Just for Men
Strengths:
○ Just for Men have a wide portfolio of products for men
○ Just for Men have a wide target market
○ Just for Men is a well established brand in the men’s cosmetics industry
○ Just for Men has a well established reputation
Weaknesses:
○ Just for Men is not the leading brand
34
Reema Mehta
SLEPT Analysis
35
Reema Mehta
Article One.
Taken From The U.S Market For Men
Male grooming market in the UK over the review period has been driven by a
range of factors, some demographic and some socio-cultural. While the
population as a whole is ageing and the number of 15-24-year-olds, who
constitute a key target group for grooming products, is contracting, consumer
expenditure remains buoyant. Attitudes have changed in the 1990s, with
consumers becoming more value-conscious. Younger men may be declining
in number, but they appear to be far more interested in personal appearance
and grooming than were previous generations of teenagers. Awareness has
filtered down to the pre-teens, with boys as young as ten beginning to use
fragranced bodysprays and hair gel, for example. While older men tend to be
less adventurous, habits acquired in their younger days are likely to
accompany them into mid-life, which bodes well for the future of the market.
(http://www.marketresearch.com/product/display.asp?
productid=939858&SID=11319663-406492276-412495131&kw=men%09hair
%09care)
○ Article Two.
Men's hair care products market rises
The hair coloring category has experienced the fastest growth among male-
specific hair care categories, according to a recent report from the Packaged
Facts Inc. publishing division of MarketResearch.com.
The report--"The U.S. Market for Hair Care Products"--found that sales of
men's hair color products rose from $93.6 million in 1999 to $107.8 million in
2003, for a compounded annual growth rate of 3.6%.
(http://findarticles.com/p/articles/mi_hb3007/is_200509/ai_n18817291)
From the two articles above we can see that there is increases in the number
of men who are know becoming more conscious of their appearance. This will
then mean that there is a higher demand for men hair care products, as well
as the fact that it will product a very competitive market, as these products are
being launched into the market for the first time.
○ Table One
36
Reema Mehta
Gros
Reven s
Reven ue Per Profi
ue Share t
37
Reema Mehta
04/22/ 2.97
08 5.53B 14.36 B
03/20/ 2.97
08 5.53B 14.36 B
02/29/ 2.97 From the data in the table above we can
08 5.53B 14.36 B see that Avon profit is increasing over the
01/21/ 2.97 years.
08 5.42B 13.76 B
12/21/ 2.66 The table also shows that Avon’s revenue
07 5.42B 13.76 B per share is increasing steadily over the
years. This shows that Avon is achieving
11/20/ 2.66
brand loyalty, giving them more publicity.
07 5.42B 13.76 B
10/26/ 2.66
07 5.30B 13.17 B
09/21/ 2.66
07 5.30B 13.17 B
08/28/ 2.66
07 5.30B 13.17 B
07/24/ 2.66
07 5.17B 12.68 B
06/29/ 2.66
07 5.17B 12.68 B
05/30/ 2.66
07 5.17B 12.68 B
04/30/ 2.66
07 5.09B 12.28 B
03/23/ 2.66
07 5.09B 12.28 B
02/26/ 2.66
07 5.09B 12.28 B
01/26/ 2.66
07 4.97B 11.54 B
12/29/ 2.66
06 4.97B 11.54 B
11/22/ 2.52
06 4.97B 11.53 B
10/26/ 2.52
06 5.63B 12.41 B
09/29/ 2.52
06 5.63B 12.41 B
08/31/ 2.52
06 5.63B 12.41 B
07/26/ 2.52
06 5.42B 11.41 B
06/29/ 2.52
06 5.42B 11.41 B
05/30/ 2.52
06 5.42B 11.41 B
04/24/ 2.52
06 5.26B 10.75 B
03/30/ 5.26B 10.75 2.52
38
Reema Mehta
06 B
02/27/ 2.52
06 5.26B 10.75 B
(http://www.goldmood.com/cosmos/hs/A.html)
Chart One
(www.goldmood.com)
From the data in the chart above we can see that Avon has taken
in the most closing price over the years.
The chart also shows that Avon’s share turnover has increased
over the last 2-3 years. This shows us that Avon is achieving their
aims and objectives, as they are gaining the business more profit.
39
Reema Mehta
40
Reema Mehta
Article Three.
Just for Men are Avon’s biggest competitors when it comes to men’s hair care
products. They provide product of the exact or similar specification. They
trade competitive products, which create a demand for hair care products.
41
Reema Mehta
From the research that has been collected, I have found out a lot about the
lifestyle of the target market. Men are now becoming more willing to buy hair
care products on a regular basis. Therefore the product that Avon, launches
need to focus on the idea that It promotes covers grey hair. In addition men,
are now beginning to feel that using hair care products, makes them more
confident around women.
Not only do men feel that they have a better lifestyle with coloured grey hair,
but they feel looking younger is important for an advancement and promotion.
Avon can fulfil the needs of customers and differentiate themselves from
competitors who have not, by identifying customer’s needs in the secondary
research.
It is now more than acceptable for men to take care of their physical
appearance, and we can tell that there has been a growing market for male
grooming; with around 2/3 men are having used hair care products on a
regular basis. This means that the male cosmetics industry is growing at a
steady rate.
Also men are now becoming more willing to buy cosmetic products. Avon has
the chance now to achieve the marketing aim of its growth in their company
and remain market leaders. This can be done by creating new and innovative
products which will help the marketing objectives of increasing sales and
profit, by selling new products to a new segment of the market.
The size of male hair care products market is steadily increasing. It is still not
as large as the female market, but is on its way, making up to 74.1 million
products in a year alone.
Also yearly, the amount of products brought in the UK, is also steadily
increasing, and identifying market trends helps Avon to respond to the market
in a direct way, and tell Avon more about the target market they plan to
operate in.
The level of competition in the male hair care market is relatively low
compared to the female hair care market, but it is steadily increasing. Also in
the UK, the amount of males’ hair care products readily available is lower than
of countries such as America and Canada. Therefore the market for UK hair
care is relatively small.
42
Reema Mehta
Conclusion
The data that I have collected on a whole has been useful to me in finding
information about the trends, and other elements of the marketing mix. The
data I have collected is relevant to my needs and therefore will later help me
to make an informed decision about price, place, promotion and product.
Combined with the primary research, it will help to minimise the risk of the
product falling, as they product will be based on the research gathered,
showing the importance research.
I tried to avoid biased research which only spoke about the positive/ negative
effects. This is due to the fact that if there ate any problem I found out in my
research Avon must try to combat this, instead of ignoring it. As a result I used
articles and data which aren’t from any type of business, but from marketing
research.
On the other hand, there were certain weaknesses and opportunities found in
the research. Weaknesses include the fact that Avon has strong competitors
who have been selling products for years. For this reason, they already have
brand loyalty towards them, and consumers may no be willing to try new
products.
43
Reema Mehta
Assessment Evidence C:
The Marketing Mix
The marketing mix is made up of the 4 Ps: Product, Price, Promotion, and
Place. They are known as the marketing mix as they provide a structure for a
successful marketing campaign. Different aspects of the marketing mix need
to be considered, in order for the marketing to be successful. In addition, the
44
Reema Mehta
Avon will meet the needs and wants of it new potential market of males from
the age of 30+ in A, B and C1 of the social economical spectrum. These
potential customers will generate sales so the product will become known as
a premium product.
The primary and secondary research distinguishes the type of people that the
Avon hair care products will be aimed at. The marketing mix will vary
according to the size and objectives of Avon. Theses include:-
○ Producing maximum capital for the company
○ Satisfying the stakeholder, through dividends
○ Becoming a household name, by promotion and advertising
○ Become more aware of the environment, to stops pressure groups
from giving the company negative publicity.
Product
Product is one of the 4 P’s and is the most important aspect of the marketing
mix. Products have both tangible and intangible benefits. Tangible benefits
include benefits which can be measured such and intangible benefits are
45
Reema Mehta
The new Avon hair care product will be associated with the growing rate of
men who are known becoming more aware of their physical appearance.
Currently, Avon does not offer a hair dye products for men, and by targeting
the number of men who are getting more concerned about their physical
appearance, it will make the product more successful in the market.
Designing a new product especially for men will help to attract a whole new
customer base, which will help add value to the product through the promotion
of it being a premium product.
I have researched into the different types of products that men are looking for;
and I have designed a name and logo for this brand image primarily focusing
on a simple product which will attract the new range of customers. My new
product will be positioned as a premium product in the hair care market,
targeting only men between the ages of 30+. Associating my new product with
this market trend will help to add value to Avon’s business overall.
As you can see below, I have designed the brand image for one of the
product of the new range of products: -
Logo
46
Reema Mehta
Avon’s Hair Care Range for men shows that it is a premium product, due to
the fact that it is a luxury item, of high quality compared against all its potential
competitors. As I have identified through research Avon is seen at the top
range of Cosmetics Products, and by offering a hair care product for men it
will help to achieve one of their objectives of becoming a household brand
name at the luxury end of the consumer spectrum. This approach of market
mapping has identified the potential market segments of a luxury cosmetics
item for the consumers, which Avon can expand into for the future.
Swot Analysis
Strengths
○ Avon’s Corporation is a very profitable organization, earning in excess
$8.1 billion worldwide as of 2005.
○ It is a global cosmetics and fashion brand built upon a reputation for
excellent products and services. It has markets in over 135 countries.
○ Avon has strong ethical values and an ethical mission statement as
follows, ‘to meet fully the obligations of corporate citizenship by
contributing to the well-being of society and the environment in which it
functions.’
Weaknesses
○ Avon has strong competitors who have been selling products for years.
For this reason, they already have brand loyalty towards them, and
consumers may no be willing to try new products.
47
Reema Mehta
Opportunities
○ Avon is very good at taking advantage of opportunities.
○ New products and services that can be retailed on their website, such as
the new hair care products
Threats
○ Who knows if the market for cosmetics will grow and stay in favor with
customers, or whether advancements in technology will wipe out the
cosmetics market
The life of a product is the period over which it appeals to customers. The
sales performance of any product rises from nothing when the product is
introduced to the market, and reaches a peak and then declines to nothing
again.
The life cycle is broken down into different stages. During the introduction
stage, sales grow slowly as a product is new on the market and there is only
limited amount of awareness of its existence. Sales then grow rapidly during
the period of growth. During this stage, the competitors enter the market and
promote their own products. This will reduce the rate of growth of sales, which
is known as maturity and it is at this time that the market becomes saturated
as there are too many firms competing for customers.
Development Stage
Avon has created a new product using research and development to create a
men hair care product. It has gained a larger possible customer base, as it is
growing into new segments of the market.
Nonetheless, the decline stage does have a high failure rate. This is because
there may not be a high enough demand for the product, as the market may
become saturated with competitors selling the same products at different
prices.
Introduction Stage
In the introduction stage Avon’s new product range will have moved up a
stage.
48
Reema Mehta
This product has not been previously addressed by Avon, which will mean
that the products are at an unstable stage as it is critical for the sales of the
product to be high in order for them to succeed. As the main goal during the
introduction stage is to establish a market and build up a primary demand for
the product class. This can be done through promotion to increase product
awareness.
Growth Stage
The growth stage is a period of rapid revenue growth. Once the product has
been established a success and there is a demand for it, sales will increase
further as more retailers become interested in carrying it.
In this stage we can see that Avon hair care for women grows steadily over a
certain time period so it can be assumed that the same products for men we
also be successful. This is due to the fact that Avon has been able to succeed
in creating popular products for its consumers.
Maturity Stage
The maturity stage is the most profitable. Whilst sales continue to increase
into this stage, they do so at slower pace. This is because the brand
awareness is strong, as well as advertising expenses will be reduced.
Decline Stage
Sales being to decline eventually, as the market become saturated, the
product becomes technologically obsolete, or customer’s tastes change. It is
likely that prices will decrease in order to maximise sales, until it reaches the
bottom of the recession stage, and will have to be taken off the market.
Boston Matrix
Boston Matrix is the Product Life Cycle concept, which states that business
opportunities move through 'life-cycle' phases of introduction, growth, maturity
and decline. These phases are typically represented by an anti-clockwise
movement around the Boston Matrix quadrants in the following order:
49
Reema Mehta
The Boston Matrix compares the market growth with the market share. Avon’s
new product lies between the high growth in the cosmetics industry and high
share in the in raising the product to star.
Dog
Products in this area are in a market with low growth and the individual
product has a low market share, for instance, supermarkets own brand
products.
Question Mark
Products in this area are in a market with high market growth, but they have
failed to establish a significant market share. The product may be inferior to
that of competitors or the businesses’ marketing may be inferior.
Star
Products in this area are in a market with high market growth and they have a
high share of the market. These are usually highly successful products, such
as Avon.
Cash Cow
Products in this area are in a market with low market growth and they have a
high market share. These tend to be mature products in mature markets that
provide companies with solid profits year in and year out.
50
Reema Mehta
Ansoff’s Matrix
Ansoff’s Matrix can also be used to indicate new product development, as well
as indicating strategic direction.
Old New
Ansoff’s Matrix’s shows the least risky strategy is market penetration. Only the
market is known to Avon so there is a risk as they move into a new area of the
market.
51
Reema Mehta
Diversification is seen as the most risky strategy as Avon’s new product range
and the market are new to the business. This will mean that Avon’s marketing
aims of gaining market share, development of products as well as increasing
brand loyalty through re-launching existing products to different markets.
Legal Constraints
If Avon fail to meet these acts there is a possibility that they may loose public
creditability and may lose loyal customer, who feel they have been cheated.
This could have reverse effects of achieving Avon’s market aims and
objectives by loosing sales and profit.
Finally the branding of the company would also be damaged, as some may
feel they do not trust Avon’s products.
52
Reema Mehta
Price
The danger of using low price as is that the customer may feel that quality is
being compromised. It is important when deciding on price to be fully aware of
the brand. A further consequence of price reduction is that competitors match
prices resulting in no extra demand. This means the profit margin has been
Quality
Penetration
Skimming
Economy
Premium
LOW LOW HIGH
Pricing
HIGH
There are many pricing policies available for businesses to choose from. The
possible pricing strategies are listed below:
53
Reema Mehta
54
Reema Mehta
With penetration pricing, over time the product will slowly increase in cost as
they demand for it will get bigger.
This will not affect the amount of sales that the business will have, as from my
questionnaire I have noticed that people are will to pay a high price for the
product.
By making the price cheaper consumers will think they are getting more value
for their money which will make them more likely to buy the product.
On the other hand, this pricing policy does have its weaknesses. The main
disadvantage with penetration pricing is that it establishes long term price
expectations for the product, and image pre-conceptions for the brand and
company. This makes it difficult to eventually raise prices.
55
Reema Mehta
Place
Place just refers to how you will sell your products to your customers.
Depending on what it is you are selling will directly influence how you
distribute it, and it affects mainly those businesses that are in production.
There are two possible ways that Avon could conduct the sales proportion of
the new product. These are direct sales methods and indirect sales methods.
However, direct sales can come at a price; you will need storage facilities or
retail premises to sell your products directly.
If Avon were to use indirect sales methods, it would mean that Avon would be
using an intermediary such as retailers to sell to the consumer. This process
is Manufacturer - Retailer - Consumer.
Retails chains such as boots could use direct distribution to retailer. There are
also mail order catalogues that could also use this method.
It is highly likely that Avon would use the indirect sales method. This is due to
the fact that Avon has used this in the past and it shows that this method
works. In addition Avon is planning to sell to a mass audience, and it could
mean that they would take in a larger amount of profit as they are more likely
to sell their products online.
The product will be sold online. This is due to the fact that they can sell their
products in large quantities which will benefit from economies of scale.
Avon’s hair care product should be sold near to their other products has it will
help to fulfil one of their main objectives of brand awareness and brand
loyalty. In addition the product will be easy to access and then the consumer
will have no problem purchasing the item; therefore stratifying the customers’
needs and wants.
56
Reema Mehta
Promotion
The promotions aspect of the marketing mix covers all types of marketing
communications. The methods include advertising, sometimes known as
'above the line' activity. Advertising is conducted on TV, radio, online, poster
sites and in the press (newspapers, magazines).
Other promotional methods include:
• Sales promotions
• Point of sale display
• Merchandising
• Direct mail
• Telemarketing and
• Demonstrations.
Looking back at the questionnaire, I can see that there are certain methods of
advertising that are more effective than other. Avon is a well known brand,
therefore the brand of the product will be stressed when promoting.
During promotion, Avon needs to focus on their main aims and objectives, as
well as the fact that they use new innovative technology to create their
products. This would be an advantage to them as the consumer would feel
they are buying a product that no other one is like. Nevertheless the
disadvantage with this is that some consumers may prefer natural products.
The cost associated with promotion or advertising goods and services often
represents a sizeable proportion of the overall cost of producing an item.
However, successful promotion increases sales so that advertising and other
costs are spread over a larger output.
In addition, by putting the product qualities onto the packaging, it will help
people to identify a certain quality they are looking for in a product. Finally by
using the Avon brand image it will give potential customers an incentive to buy
the product, due to the corporate image.
A common method that Avon uses to promote their products is through the
use of celebrity endorsement, it give the company high prestige and status.
This would mean that it would allow Avon to have control over price and
inelastic, as there would be a higher demand for this product due to the fact
that it has been advertised by celebrities.
Also another disadvantage of using this method is that it costs a large amount
of money. However, Avon has the means to advertise and also has proven in
the past to be an effective way of promoting a product.
57
Reema Mehta
Avon will not be using consumer sale promotions. This is due to the fact that I
feel that due to Avon’s corporate image, it is possible that consumers will buy
the product without the use of this method of promotion.
Advertising
As Avon’s prices are suitable and affordable, the company has a loyal
customer base. This is a good opportunity to maximise profits by maximising
the demand for each product.
Branding
The Advantage of branding is that it will establish the brand name which will
save on future advertising cost as it will gain brand awareness. To consumers
the brand name shows its quality and as Avon has already established a good
brand image and reputation, consumers will automatically think of excellent
quality.
This will also gain brand loyalty which will attract potential customers.
58
Reema Mehta
• Family Brand
• Multi Brand Strategy
• Housing branding
Avon uses a multi-brand strategy. This involves the use of more than one
band in the same market segment to increase the chance of the companies’
product being successful.
Merchandising
Merchandising is displaying a product at the point of sales in an attractive
manner in order to encourage customers to buy. Merchandising is an integral
part of product presentation, which combines the skills of packaging and
display which are make to make the consumer visit the outlet and buy the
products.
Sales Policy
Sales policy is a further aspect of promotion as it brings the attention of the
customers and persuades them to buy the product.
59
Reema Mehta
The marketing mix will be affected in many different ways. Avon’s new
product range will affect the economic cycle that moves from a boom to a
recession in a continuous cycle. Avon has a history of success in profit and
sales, which creates a demand for its products, which show that its new
product for men will also create an international demand.
Avon will stay in the boom economy as it will continue to make profit and
create sales through its new products.
Secondly, promotion would increase due to the fact that more people will have
to spend money, and therefore Avon must make the most of that and try to
get as many potential customers to buy the product.
Place would not change as must, due to the fact that Avon sells its products
on the mass market, so it is unlikely that this will change to any other markets
e.g. Niche Markets.
Finally the product would not change to the fact that many people are buying
the product. If they are gaining enough revenue Avon could develop the
product later on in the maturity stage of the product life cycle.
60
Reema Mehta
If the economy is in recession it will be the opposite, where there will be low
sales, increase in demand and low employment. This is a negative fact or as it
will result in low revenue, making it harder for Avon’s new product to break
even.
Therefore I have decided that Avon should consider launching their new
product where their will be a suitable demand at the start, as well as where
the demand can be maximised to maximise profits.
Political Factors
If the level of demand of Avon’s product and they way in which their business
operate may affect Avon. A high rate of income tax will reduce the level of
consumer demand affecting the profit and sales of Avon’s new product range,
the value added tax will affect the price to the final consumer, as it will
increase the selling, which will in turn effect the revenue generated by the
company.
A guaranteed minimum wage will also give employees, more buying power,
but in turn may result in a decrease of employment levels due to the costs to
the employers.
The rate of interest will affect the levels of consumer demand as well as
business investment for Avon’s new product range.
Technological Factors
If Avon was to sell their products on the internet, it would change the place
aspect of the marketing mix. It is not only that they were able to sell products
over the internet, then the price would also be lower as they would be able to
cut out the intermediary sellers and therefore profit would not have to be
shared.
Promotion would also change as the Avon website would be able to help
promote the product for a relatively small price. In addition by advertising on
popular search engines it would help reach millions of people who visit that
site.
Environmental Changes
This includes packaging and materials used in Avon’s products. This factor
can be overlooked by using recycled materials, which will shift pressure
groups focus off Avon.
Also the implications of this change on the marketing mix are relatively small,
so money will not be lost.
61
Reema Mehta
62
Reema Mehta
Assessment Evidence D:
Justification of the marketing mix
Assessment objective D
Justification of the Marketing Mix
The product that I have research and developed with regards to the marketing
mix was a hair care products, aimed at a new target of men, product under
the company of Avon.
I felt that I have been able to improve whilst developing the product through
careful analysis of the marketing mix, whilst conducting market research.
63
Reema Mehta
I feel that after exploring all the aspects of the marketing mix, I can see that
the product is likely to be successful, as I have identified that there is a
growing market for the product. Therefore the product is likely to be
successful, if all the areas of the marketing mix are considered.
I have also identified a unique selling point for the product. This will be the fact
that Avon will be selling a premium product at a reasonable price compared to
its competitors. This unique selling point will be likely to help the product to be
successful as it most effective product on the market for men. Finally it will
also help to increase the product life cycle as this quality will be likely that
more people will buy the product and it will stimulate the demand for the
product.
Pricing is another major factor in the marketing mix, which is likely to make
the product successful. The price in the marketing mix is used to obtain
competitive advantage through aggressive marketing for market share from
the marketing objectives of maximising the level of sales.
Using pricing strategies, with special offers such as ‘buy one get one half
price’ will attract a wider target market to buy Avon’s hair care products to
make an immense amount of sales and return across the world.
Avon’s main objective is to maximising the amount profit through the level of
sales, growing into other segments of the industry. The marketing objectives
will be fulfilled by Avon will help them to become a secure household name for
its products in a highly completive lucrative market.
64