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Transcript of Glamalash
• This is the target market upon which the marketing strategies will be based.
• Avon’s Super Full mascara is in need of a revamp to bring the product in line with that of its competitors.
Marketing strategies • The new marketing strategy will involve repositioning this brand (Kotler et al. 2008) by retitling the product ‘Glamalash’.
• This marketing strategy will be launched in the Australian market in 2011, with the aim being ‘market share maximisation’ in this age bracket, ‘profit maximisation’ and ‘product-quality leadership’ (Kotler et al. 2008, p.351).
• The launch strategy will involve promoting the mascara through numerous ways such as social networking sites and having an opinion leader such as Taylor Swift.
• The product will be priced accordingly, the package redesigned by using more appealing colours and the distribution of the product will become more accessible.
• A change to the distribution channel, for example a minor move into the retail sector, is necessary in order for Avon to modernise, however, a complete move away from the traditional direct selling method of Avon is not recommended.
• Research suggests that having operations in the retail sector can in fact decrease profit margins. (Doonar 2005).
•Avon, ‘established in 1886’ (Stokes 2006, p.33), is one of the largest direct sellers of beauty products in the world (Avon Who we are n.d.).
•Avon’s market expands over 150 countries, with over 5 million representatives undertaking door-to-door sales in those countries.
•Avon’s product divisions comprise of Beyond Beauty, Beauty Plus and Beauty (Datamonitor, October 2006). The beauty division in particular supplies consumers with items such as skin care, cosmetics, fragrances and toiletries (Datamonitor, October 2006).
•This well known company is currently pursuing new marketing strategies in order to effectively increase its market share of younger female customers and consequently increase its profit levels.
Company Background Preferred Cosmetic Brand Market environment (Datamonitor 2009, p.13) It is evident that the top three companies comprise of 52% of market share with these entities having operations expanding over the eye, lip, face and nail make-up sections. It has been assessed that in this market:
•Fashion is a significant influence
•Rivalry is moderate
•Threat of new competitors is moderate
•Threat of substitutes is weak.
Avon’s competitor’s use a mixture of the following distribution channels: • Department stores
• Specialty retailers
• Freestanding stores
• Direct and indirect response TV
• Travel retail
• Up market hair salons
• Authorised websites
The product range of the competitors include: • Make-up (for example foundations, lipsticks, eyeshadows, mascaras, nail products, concealers, blush and powders).
• Skin care
• Hair care
• Personal care
Preferred cosmetic brand L’Oreal S.A. • L’Oreal SA’s brands include L’Oreal Paris, Garnier, L’Oreal Professional and Maybelline.
• Recent moves by L’Oreal include the introduction of a new lipstick line as well as the launching of the Body Shop’s mineral make-up range of which both occurred in 2008. Furthermore, L’Oreal Paris introduced a new make-up collection in 2009.
Estee Lauder Companies Inc. • Recent activity by the company had seen new make-up and fragrance products being introduced to the market in 2009. In the same year a new range of eye pencils and lip pencils were launched. In addition mineral based products were produced by the company. Revlon Inc. • The company chooses to charge a higher price for its products. One of Revlon’s brand names in particular, ‘Revlon Age Defying’ is targeted at women in the over 35 age category.
• New developments by Revlon in 2009 include the launching of a mineral make-up collection.
Market segmentation Current segmentation: • The main segmentations currently used for Super Full mascara are demographic segmentation and behavioural segmentation (Kotler et al. 2008).
• The primary demographic variables include age and gender for this product.
• Super Full has segmented the market by targeting their product to all ages, in particular those aged 16 and older.
• They have segmented the market based on gender, only targeting females as these are the main users of mascaras. This is evidenced by the fact that Avon’s customer base is 99.99% female (Klepacki, p46).
• Behavioural segmentation sees the product designed for regular users, who purchase make-up frequently and who can become loyal to Avon.
Future segmentation for new marketing strategy: • As for Glamalash, it will use similar segmentation.
• In regards to the age variable, this will change to be 16-24 years old.
• The gender will remain the same; that is it will continue to be targeted to females. The behavioural variables for this product will see Avon segmenting the market according to those potential customers who are first time and regular users and, to a certain extent, those customers who will be loyal to the product.
Marketing Strategies PRODUCT Product – branding • Avon and its associated products are often associated with the old ‘Avon calling campaign’ (Customer genius, Fisk, 2009, p.353)
• Avon’s volumising mascara is currently known as ‘Super Full’ mascara