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COSWAY VS AVON 4P

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Wan Hanuni

on 24 December 2014

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Transcript of COSWAY VS AVON 4P

GROUP MEMBERS
NUR SURIATY BT DAUD @ FHIRI 813342

AFIDATUL ASMA BINTI HASSAN 813292

WAN UMMU HANUNI BT WAN DIN 813632

RECOMMENDATIONS FOR AVON AND COSWAY IN MALAYSIA
MARKETING DEFINITION
Comparison
GROUP PROJECT:
A COMPARATIVE STUDY OF MARKETING STRATEGY BETWEEN AVON AND COSWAY
IN MALAYSIA.

Thank you!
Marketing mix
Main instrument of the company for obtaining strong positioning on the concerned markets (Palade, 2011).

4P’s: product, price, promotion and placement (Philip Kotler).


4P's
Product
1.Size, structure and evolution of the range of goods and services (Lefter, et al., 2006, p.375, 405).
2.Direct connection with the other elements of the marketing mix (Palade, 2011).



Price
1.Market instrument (Lefter, et al., 2006, p.449).
2.Marketing mix variable.
3.Very flexible (Palade, 2011).

Place
1.Demand and supply.
2.Producers and consumers.
3.Streamline the buying – selling processes (Palade, 2011).

Promotion
1.Key tool of the marketing mix.
2.Achieve goals (Palade, 2011).

Focus on marketing Halal products
Implementing more use of IT in marketing
Take advantage from the changes in government policy
Muslim majority concept of halal is an absolute key to consumption

Halal certification & logo inform and to reassure target consumers

Consumers become more religious/halal-conscious, looking for products that not only satisfy their needs but also give them “peace of mind.” (Shafie & Nor Othman, 2004)

Avon
2011 Net Sales: $11.3 billion
Country: USA
 
Avon is the founder of modern direct selling and the acknowledged world leader in cosmetics, fragrances and toiletries. Avon’s well-known product lines include Avon Color, Anew, Skin So Soft™, Advance Techniques Hair Care and Avon Naturals and mark™.
 
2010 Rank: 1
2010 Net Sales: $10.9 billion
Sales Method: Person-to-person
Compensation Structure: Single-level and multi-level
Products: Beauty, fashion jewelry, apparel
Markets: 100
Salespeople: 6.5 million
Employees: 42,000
Headquarters: New York, N.Y.
Executive: Sheri McCoy
Year Founded: 1886
www.avon.com

COSWAY
2011 Net Sales: $433 million
Country: Malaysia
 
COSWAY is a subsidiary of Berjaya Group, a multinational conglomerate known for diversification. Manufacturers, researchers and suppliers from all over the world work with COSWAY to provide an ever-growing range of top-quality products.
 
2010 Rank: 44
2010 Net Sales: $298 million
Sales Method: Person-to-person
Compensation Structure: Not available
Products: Supplements, skin care, personal care, cosmetics, household products, car care, food and beverage, clothing
Markets: 11
Salespeople: Not available
Employees: 1,500
Headquarters: Kuala Lumpur, Malaysia
Executive: Chuah Choong Heong
Year Founded: 1979
www.cosway.com.my
Website enhances marketing & selling activities

Growing use of IT and smartphones among the consumers more people become expert users of the Internet

Collect information understand the profile of their customers

Inflationary environment Goods and Service Tax (GST) & subsidy rationalization program

Lower middle-income group higher return on spending & additional side-income

Individual and organization activities (American Marketing Association, 1985).
Identifying, anticipating and satisfying customer requirements profitably (the UK's Chartered Institute of Marketing).
Marketing is the main purpose within the organization as the associates between products or services with customers.
Marketing is social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others (Philip Kotler).
Product
Readily in demand as they fulfill the everyday needs of customers.
Price
Great value for money.

Promotion
Proactive, aggressive, exciting promotions to help members recruit more members, attract customers and retain customer loyalty.
Physical Distribution
Easily accessible sales centre.

Plan
Offers a lifetime of income earnings.

5P's
4P's
Promotion
Catalogue.

Place
The dimensions of the distribution channel, the size of the distribution, the degree of company’s participation, control degree, elasticity degree and the logistics of goods.

Size growth of product range, quality differentiation strategy and assortment renewal strategy

Product
The prices level, the degree of the prices diversification and the of prices mobility.

Price
Government policy in implementing
Good and Services Tax

Advancement in IT and Globalization

ISSUES

Halal certification

ISSUES AND CHALLENGES
FOR AVON AND COSWAY

Halal certification
Malaysia very specified in
halal certification of the
products offered in
cosmetic company.


Malaysian consumers becomes
more particular on the
products or services that
they interested to consume
Cosmetics and personal care industry become more affected on the impact of the global halal awareness due to the rising in demand of halal cosmetics around the world
Most of the cosmetic and personal care
products originally come from
non-Muslim country are made
by the non-Muslim manufacturer,
which can be doubtful on the halal
status of the ingredients


The impact of globalization has forced many of these companies to adopt a certain type of change such as Internet or any latest manufacturing technology
Disrupt their existing working climate particularly the business culture and organizational structure
Technology advancement increase the competition among the cosmetic and personal care companies as the competitors had advancing themselves into the e-commerce
The customers become more cautious and considerate on selecting the products especially in term of price and quality as internet become the major information sources
Advancement in IT and Globalization

There a challenges need to be face
by the international company comprising
all the standards needed to acquire the
halal certification




COSWAY, which originally from Malaysia
and the products produced by the local manufacturer therefore most of the
products had been certified halal by the
Malaysia’s Department of Islamic Development (JAKIM)


Focus on marketing Halal products
Implementing more use of IT in marketing
Take advantage from the changes in government policy

RECOMMENDATIONS FOR AVON AND COSWAY IN MALAYSIA
Government policy in implementing
Good and Services Tax
Good and services tax is a multi-stage tax on domestic consumption charged on taxable supplies of good and services.

It is consumption tax based on the value-added concept.
As the implementation of GST will be next year, it will affect the direct selling business.
Reduce the consumer purchasing power where the consumers will perceive the products become more expensive.

As the GST applied in every stage of supply chain, these may increase the cost of productions.
Full transcript