You are on page 1of 5

Running head: COMPETITVE PROFILE MATRIX

Competitive Profile Matrix for Avon


Daisy Urrutia
January 23, 2015
Prof. Rocco

2
COMPETITIVE PROFILE MATRIX

Competitive profile matrix is a strategic management tool that is used to compare


basically the same industry company with their major competitors. This tool can evaluate the
strength and weaknesses of a company. It is measured based on the success factors. One is
represented as poor, two as average, three is considered above average and finally four as
superior. The weight is a necessity to indicate the importance factor of the companys industry.
The range is from 0.00 to 1.00, which is means that 0.00 is not important and 1.00 indicates most
important. The weighted score is calculated by using the weigh and multiplying by the rating.
The same is used for each competitor on the matrix. (Ozyasar, n.d.)
When it comes to advertizing, Avon relies on the catalog that representatives show the
consumers. The website is another form of advertizing that the cosmetic company uses in
combination with the paper catalogs that are left in offices and consumers homes. Avon does not
use television commercials to advertize; the website and representatives contacts are the reliable
source to advertizing.
Technology is for Avon rates high as the website is the primary source of financial stability. In
todays world a company without a website will struggle and possibly fail. Revlon relies more on having
their cosmetics on the shelves instead of using the website. Mary Kay is also savvy in the website but
wants to incur sales by way of the representatives to create incentives and income for the individual
members.
Product safety is a great quality that Avon has over the competitors. It is considered strength in
my opinion to care for the consumers that are relying on their products. When comparing to Mary Kay for
instance, in which they rate average. (Mary Kay Corp., n.d.)
Price competitiveness is strongly held by Revlon. Mary Kay has a rate of average while Avon is
consuming above average. Revlon has great pricing on the cosmetics; it could be the options in the

3
COMPETITIVE PROFILE MATRIX
product lines. The price is so comfortable when buying it from the shelves. Mary Kay has an above
normal price. This may mean that the products are better scientifically made. A tube of shiny lip-gloss
cost $14.00; Revlon has the same lip-gloss for $6.49 in the drugstores. Avon has affordable prices for
their lip-gloss, they are between $.99 to $6.00. Significantly lower than the competitors. (Revlon Inc.,
n.d.) (Mary Kay Corp, n.d.) (Avon Products, Inc., n.d.)
Not all is great in the cosmetic industry; I have noticed the employee moral incredibly low for
both Mary Kay and Avon. This could be for the high demand that stresses the sales representatives to
push and activate the self-esteem for their financial outcome. Motivation is hard to get when a
representative is not surrounded by others of their class. The competitor Revlon has a better advantage in
rating for having happier employees. See Apendix A

4
COMPETITIVE PROFILE MATRIX
Avon Products, Inc. (n.d.). Avon make up. Retrieved 2015, from
http://www.avon.com: https://www.avon.com/category/makeup/lips
Mary Kay Corp. (n.d.). Mary Kay sparkle. Retrieved 2015, from
http://www.marykay.com: http://ecatalog.marykay.com/us_en-us/GetLatest.aspx?
d=www.marykay.com&m=0&t=Look_Book
Mary Kay Corp. (n.d.). Values. Retrieved from http://www.marykay.com:
http://www.marykay.com/en-US/about-marykay/rnd/pages/valuesproductpromise.aspx
Ozyasar, H. (n.d.). What does the CPM Matrix Do? Retrieved 2015, from Small
Business Chron: http://smallbusiness.chron.com/cpm-matrix-do-67032.html
Revlon Inc. (n.d.). Revlon love is on. Retrieved 2015, from
http://www.revlon.com: http://www.revlon.com/products/lips

5
COMPETITIVE PROFILE MATRIX

Appendix A: CPM
AVON

REVLON

Weight

Ratin
g

Advertising
Customer Loyalty
Employee Morale
Financial Position
Global Expansion
Market Share
Organizational
Structure
Price Competiveness
Product Image
Product Quality
Product Safety

0.10
0.10
0.07
0.08
0.09
0.07

2
2
2
4
3
2

Weight
Scored
0.20
0.20
0.14
0.32
0.27
0.14

0.04
0.10
0.05
0.10
0.10

2
3
3
2
4

0.08
0.30
0.15
0.20
0.40

4
4
4
3
3

Technology

0.10

0.40

Total

1.00

Critical Success Factors

2.80

Ratin
g
4
4
4
3
4
4

Weight
Scored
0.40
0.40
0.28
0.24
0.36
0.28

MARY KAY
Ratin
g
1
3
1
2
2
3

Weight
Scored
0.10
0.30
0.07
0.16
0.18
0.21

0.40
0.20
0.30
0.30

3
2
2
1
2

0.12
0.20
0.10
0.10
0.20

0.20

0.30

0.16

3.52

2.04

You might also like