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Transcript of Glamalash FINAL
Avon does not hold a significant market share of the age group 16 to 24.
This is the target market upon which the marketing strategy 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 strategy The new marketing strategy will involve repositioning this brand (Kotler, Adam, Denize, Armstrong 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. 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 (Avon-who we are n.d.).
Avon’s product divisions comprise of Beyond Beauty, Beauty and Beauty Plus (Datamonitor 2006). The beauty division in particular supplies consumers with items such as skin care, cosmetics, fragrances and toiletries (Datamonitor 2006). Company Background Market environment (Datamonitor 2009, p.13) It is evident that the top three companies comprise of 52% of market share (Datamonitor 2009). 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 (Datamonitor 2009). Avon’s competitors use a mixture of the following distribution methods: • Department stores
• Specialty retailers
• Freestanding stores
• Direct and indirect response TV
• Travel retail
• Up market hair salons
• Authorised websites (Datamonitor 2009) The product range of the competitors include: • Make-up
• Skin care
• Hair care
• Personal care (Datamonitor 2009). Market segmentation Current segmentation: The main segmentations currently used for Super Full mascara are demographic segmentation and behavioural segmentation (Kotler et al. 2008).
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 2005).
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. Current Marketing Strategies PRODUCT Branding Avon and its 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. Positioning Avon is perceived as being of a poorer quality than some of its competitors
Avon is strongly believed to be for older women only and is not considered to be stylish and therefore currently does not appeal to a younger target market as suggested by our primary research Packaging Super Full mascara is unattractive, uses unappealing colours in the packaging of the product – it is plain, and from a ‘design’ perspective lacks excitement in comparison to its competitors. PRICING Avon SuperFull Mascara - $22.99 (Avon 2010)
Maybelline Volum’ Express - $18.75
Revlon Fabulash - $21.95
Napoleon Peepshow (Madame Fantasia) - $33
L’Oreal Volume Shocking - $22.35
Based on these figures it is apparent that Avon is currently using competitive pricing.
This pricing method gives the consumer a perception that Super Full mascara is of a medium quality and is reasonably affordable. PROMOTION SuperFull mascara is sold using personal selling; for example, Avon parties and door-to-door selling, as well as relying on word of mouth. Primary research indicates that party/pyramid selling can be off-putting for consumers.
Opinion leaders assist in promoting Avon’s products, including Super Full mascara. Celebrities have had a positive impact on Avon’s brand awareness (Doonar 2005). In 2000, ‘Avon signed its first global celebrity spokespeople’, Venus and Serena Williams (Doonar 2005, p.22).
A celebrity who currently promotes Avon’s products is Reese Witherspoon (Avon 2010). PLACE Avon uses direct sales (Stokes 2006).
This sees a ‘direct marketing channel’ (Kotler et al. 2008, p.393)
Consumers have to order Super Full mascara through brochures which presents problems in terms of not being able to test the product and it is not conveniently available in stores. Results of Primary Research After analysing this primary data it was found that those aged 16 to– 24 accounted for 42% of total respondents.
Only 8.33% of those aged 16 to– 24 use Avon products.
Based on data collected, a marketing strategy for Avon SuperFull Mascara aimed at a specific demographic (16 to 24 year olds), will be devised. Preferred cosmetic Brand (all age groups) Preferred cosmetic brand (age 16- 24) Marketing Strategy 2011-2014 PROMOTION . Using new celebritiy faces that a younger audience can identify with for example Taylor Swift
Revamping the existing Avon website to make it as trendy as that of its competitors such as Maybelline.
Using social networking sites to advertise Super Full mascara to the younger and existing audience. This would be effective as research has found that women are most regular users of social networking sites (Women more likely to use social networking sites 2009).
Sponsoring major sporting events. Avon could advertise Super Full mascara in a similar way that Garnier promote its products at the Australian Open. Avon could set up stalls, hand out brochures, product samples and showbags at these events as teenagers attend these sporting events.
Advertising in teenage magazines for example Girlfriend, Dolly and Cosmopolitan. PLACE Making the products available in beauty salons where females attending formals and weddings can have their makeup done. This will lead to further word of mouth promotion.
Avon could form a strategic alliance with an up market hairdresser this way Super Full mascara could be available in store to test, buy or for the hairdresser to recommend to the consumer (Kotler et al. 2008)
These can be small ways in which Avon attempts to expand into the retail sector. However, it is not recommended that Avon changes its distribution channel too dramatically as Doonar (2005) discovered that when Avon attempted to move into the retail sector in the US the company’s sales resulted in a loss
The Australian Avon website needs to allow for products to be ordered online to make it easier for consumers to purchase Super Full mascara. PRICE Avon should continue to competitively price Super Full mascara. If anything they should raise the price slightly in order to create a perception that Avon is of a high quality and will allow Avon to make the move highlighted on the perceptual map. PRODUCT The packaging of Super Full mascara needs to be modernised so that both the existing and expanded target markets, which includes the younger audience, will find the product more appealing. This could involve making the design more sleek and changing the colour to a stylish silver.
This new packaging will help with the way the mascara is positioned. Younger people will discover that Avon is not just a company that sells products for your mother or grandmother, but also for teenagers. Marketing objectives The marketing objectives of the new strategy involve improving the way its product is perceived amongst its target market. Therefore, as a result of the new marketing strategy Avon’s Superfull mascara and Avon in general will be perceived as being of a higher quality than it is currently. This will see consumers receiving increased benefits from the product with the price reflecting this higher quality.
The strategy aims to increase market share amongst this younger target market by making the Super Full mascara more appealing in terms of name, appearance and availability.
Through this increased market share, sales for Super Full mascara will increase therefore increasing Avon’s overall profit margins. Conclusion Income statement Control These marketing objectives will be measured through comparison of current and previous income statements, the conducting of focus groups and/or new surveys and comparing data with past data, engaging external organisation to compare current market share to previous market share, and having a marketing audit conducted.
The results will be evaluated and if they are found to deviate from our goals, then this will be rectified through corrective action such as revision of allocation of monetary resources devoted to advertising budget, and take on suggestions from the aforementioned marketing audit. Marketing strategy It can be concluded that by 2011-2014 Avon’s Super Full mascara,now renamed and repackaged Glamalash, will be more popular amongst the teenage demographic.
The new marketing strategy will aim to adapt the 4 P’s, making all aspects of them more appealing to both the existing market as well as the new target market. (Avon SuperFull mascara n.d.[a]) (Avon SuperFull mascara n.d.[b]) (Fabulash mascara n.d.) (Madame Fantasia Peep Show
mascara n.d.) (Taylor Swift n.d.[a]) (Taylor Swift n.d.[a]) (Volum' Express turbo boost
waterproof mascara n.d.) (Volume Shocking mascara n.d.) Avon 2010, Brochure: Number 8, Avon, Lidcombe, NSW.
Avon-100% guarantee 2009, viewed May 9 2010, <http://www.avon.com.au/PRSuite/guarantee.page>.
Avon - who we are n.d., viewed 18 March 2010, <http://www.avon.com.au/PRSuite/whoweare_main.page/>.
Avon SuperFull mascara n.d.[a], image, GittiGidiyor, viewed 14 April 2010, <http://images.gittigidiyor.com/2230/AVON-SUPER-FULL-MASKARA-rimel-50-indirim__22309265_0.jpg>.
Avon SuperFull mascara n.d.[b], image, <http://lh6.ggpht.com/_MueiEra3zBI/SO79Q6NARoI/AAAAAAAAC9o/ODXTlKAMv5A/Superfull+Mascara.jpg>.
Datamonitor 2009, Make-up in Australia: industry profile, reference code: 0125-0700, viewed 21 March 2010, Business Search Complete database.
Datamonitor 2006, ‘Company spotlight: Avon products’, MarketWatch: Personal Care, vol. 5, no. 10, pp. 1621, viewed 21 March 2010, Business Search Complete database.
Doonar, J 2005, ‘Opportunity knocks’, Brand Strategy, issue 191, pp. 2023 viewed 16 March 2010, Business Search Complete database.
Fabulash mascara n.d., image, Revlon, viewed 21 April 2010, <http://www.revlon.com/en/Revlon-Home/Products/Eyes/Mascara/Fabulash-Mascara.aspx>.
Fisk, P 2009, Customer genius: becoming a customer-centric business, Capstone Publishing, Chichester, UK.
Klepacki, L 2005, Avon: building the world’s premier company for women, John Wiley & Sons, Hoboken, New Jersey.
Kotler, P, Adam, S, Denize, S & Armstrong, G 2008, Principles of marketing, 4th edn, Pearson Education Australia, Frenchs Forest, New South Wales.
Madame Fantasia Peep Show mascara n.d., image, Napoleon Perdis, viewed 21 April 2010, <http://www.napoleonperdis.com/products/site/product.cfm?menu=products&sub=eyes&id=263FCB2F-3048-2ADD-746C8A37A1FF909D>.
Stokes, B 2006, ‘Avon’s new calling’, Marketing Week, vol. 29, no. 14, p.33, viewed 16 March 2010, Business Search Complete database.
Taylor Swift n.d.[a], image, SquidWho, viewed 21 April 2010, <http://static.squidoo.com/resize/squidoo_images/590/draft_lens5694832module44033252photo_1246654927Taylor-Swift.jpg>.
Taylor Swift n.d.[b], image, The Boston Globe, viewed 21 April 2010, <http://www.boston.com/ae/music/blog/TaylorSwift-01-big.jpg>.
Volum' Express turbo boost waterproof mascara n.d., image, Maybelline New York, viewed 21 April 2010, <http://www.maybelline.com/Product/Eye/Mascara/volum-express-turbo-boost-waterproof.htm>.
Volume Shocking mascara n.d., image, L’Oreal Paris, viewed 21 April 2010, <http://www.lorealparis.com.au/img/l10n/products/305x262/Cos24.jpg>.
‘Women more likely to use social networking sites’ 2009, Media Report to Women, vol. 37, no. 3, pp. 13, viewed 21 March 2010, ProQuest Central database. References Perceptual Map Datamonitor, 2006 Product Map