Reema Mehta

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:

Assessment Evident (a)

Marketing aims and objectives, target markets and segmentation
– An understanding of Avon’s products, and why I chose to use the
company in depth and knowledge
– A descriptions of their aims and objectives
– Show links between marketing aim and objectives with market
segmentation and their target market

Assessment Evident (b)

Marketing Research
– Use of primary and secondary research from a wide range of
sources to produce the products marketing research
– Analyse how the research relates to may product

Assessment Evident (c)

The Marketing Mix
– Create a detailed and developed, in dept marketing mix for my
product, I must then clearly link this to the research and
segmentation evidence

Assessment Evident (d)

Full justification of the marketing mix
– A justified account of my selected marketing mix with the use of
original ideas

Assessment Evident (a)

Marketing aims and objectives, target markets and segmentation

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Description of my chosen product

For this assignment I will be selecting a product which is targeted at a range

of user across a specific market segment. The company I have chosen to
base this product for is Avon Inc. I will be focusing on Avon Inc’s hair care
range and have decided to specifically focus on their hair styling products.The
product I am going to market for Avon Inc will be men’s hair dye. In order for
this product to be a success I will use sufficient information, which provides an
understanding of the market share.

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.

Form of ownership and background to the company

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.

Avon has a line of clothing, accessories, perfumes and cosmetics. It was

founded in 1886 by David H Mconnell.

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,

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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.

Avon has a high brand pressure with frequent advertisements throughout

many mediums, including newspapers, television and magazines to advertise
their products.

Avon is also supportive of the community by not testing their products on

animals, as well as being environmentally friendly.

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.”

They aim to discover:

• To provide individuals an opportunity to earn in support of their well-
being and happiness.
• To serve families throughout the world with products of the highest
quality backed by a guarantee of satisfaction.
• To render a service to customers that is outstanding in its
helpfulness and courtesy.
• To give full recognition to employees and Representatives, on
whose contributions Avon depends.
• To share with others the rewards of growth and success
• To meet fully the obligations of corporate citizenship by contributing
to the well-being of society and the environment in which it
functions.
Avon Inc shows an understanding of their own level of standards
they wish to set, with the above aims and objectives. From these set
of aims and objectives Avon Inc can work harder to increase their
standard and performance so that the customers are more satisfied
with the products that they buy.

Competitors

Avon’s competitors are in a hurry to catch up and to even possibly take their
place as leaders in the industry.

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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.

Competitors marketing strategies will also have an effect on the marketing

strategy objectives. This is due to the fact that both Avon and L’Oreal have
similar cosmetic products, so it is clearer to identify their marketing.

Avon needs to ensure that their marketing objectives as well as marketing

strategies are effective, which will help them to gain a competitive advantage
which will result in them getting a better corporate image.

Avon’s competitors include:

○ 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.

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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.

By diversifying into different sectors of the cosmetics market, which allows

them to achieve growth and increase profitability, which allows Avon to
generate the most amount of profit that any of its competitors.

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,

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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.

I will be focusing on the following range of products with regards to the

coursework

Cosmetics – Hair Care

1. Advance Techniques Mega Deal - This is Avon’s hair care product

introduced to the market. It was aimed at women between the ages of 27-
50, as well as aiming at women in the social economical group of A, B or
C1.
This product introduced a new dimension to Avon which helped to promote
its business too many different types of segmentation, which may be
geographical or demographical or psychographic.

2. Advance Techniques Super Straight Smoothing Balm - This is Avon’s

latest product from the hair care 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 late teens as well as aiming at women in the social
economical group of A, B or C1.

Over time Avon’s products will change due to homogeneous preferences, as

well as technology and other dependant factors may change. For example,
hair care products were for every day wear, but as people are now getting
more conscious of their appearance, especially men, these products are now
becoming more popular through many different segments of the market.

In addition their aim to maximise market share by maintaining customer

loyalty, this helps them to venture out into new markets as well as preventing
them from allowing economies of scale. By doing this, this will help to
increase the Avon’s profitability.

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

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desired market. For example Avon’s men’s aftershave and Avon’s Eau De
Porfame, cater the needs of both men and women.

Market in which Avon operates in

Avon operates in a mass market, as well as being an international company.

This can be seen through the several product ranges they carry as well as
focusing on various sectors of the market rather than focusing on a particular
area and running a niche market, but operate in the tertiary sector. Avon is
influenced by competitors as well as social and economical trends.

Avon is influenced by consumers, because consumers are becoming more

and more conscious of their appearance.

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.

Avon’s hair care range is classed as a luxury product, resulting in it being

aimed at A B, C1 of the social economic groups ranging from A to E, as their
products are usually aimed at middle income groups. One of the reasons why
Avon is able to place themselves in this social economic group is that they
provide products for a specific range of people. For example, Avon is known
all around the world, but many people cannot afford to buy their products.

The marketing objectives Avon follow needs to be specific to the type of

market they follow in order to meet their needs and requirements of the
consumers, and in order to be effective as well as having maximum results.

Nevertheless they will need to increase marketing activity to ensure effective

marketing for the diverse range of products.

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.

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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)

In millions, except per share data 2007 2006

Net sales $ 2,163.3 $ 1,982.4

Other revenue 22.0 20.8

Total revenue 2,185.3 2,003.2

Costs, expenses and other:
Cost of sales 836.7 779.7
Selling, general and
administrative expenses 1,110.8 1,137.3

Operating profit 237.8 86.2

Interest expense (26.5 ) (26.5 )

Interest income 12.3 13.2
Other expense, net (0.6 ) (1.6 )

Total other expenses (14.8 ) (14.9 )

Income before taxes and

minority interest 223.0 71.3
Income taxes 72.4 ) (14.5 )

Income before minority interest 150.6 56.8

Minority interest (0.6 ) (0.6 )

Net income $150.0 $56.2

Earnings per share:

Basic $.34 $.12

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Diluted $.34 $.12

Weighted-average shares outstanding:

Basic 440.61 450.75
Diluted 443.76 452.62

Cash dividends per common share $.185 $.175

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.

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The use of science and technology is Avon’s weapon against their

competitors, making it their unique selling point. This is due to the fact that
there is no other cosmetics company which emphasises the fact of the use of
new technology to help them create better products.

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

Another method used by Avon is to use celebrity endorsement to gain a

competitive advantage. Avon is able to use celebrity endorsement to grab the
attention of potential customers. This enables them to have a competitive
edge against their rivals, which in the long run helps them to generate more
profitability across the globe.

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

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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.

The Product Life Cycle

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.

For example if a certain cosmetics products life cycle is in maturity, it would

highlight the need for the business to start developing new ideas and looking
for new products, in order for them to continue making a profit and not to lose
out on the potential revenue which is available to them.

A products life cycle can be divided into several stages characterized by the
revenue generated by the product, as shown below.

Introduction Stage

In the introduction stage, sales

will be low until customers
become aware of the product.
Advertising costs are high during
this stage in order to swiftly
increase customer awareness of
the product.

Avon will be introducing new

products onto the market, which
will be a hair care range for men.
There previous products that
have been launched are the men’s fragrances ranges. The hair care products
will be different from their previous hair care range as they will be aimed at a
different target audience, which will be men. This product has not been
previously addressed by Avon, which will mean that the products are at a
unstable stage as it is crucial for the sales of the product to be high in order
for them to succeed, as the primary goal during the introduction stage is to
establish a market and build up a primary demand for the product class.
The following are some of the market mix implication which are apart of the
introduction stage.

• Product - Avon will need to produce one product which is moderately

different. As they will be producing a hair care range for men which is a
product not yet used by the company
• Price - The price will be generally high, assuming a skim pricing
strategy for a high profit margin, as well as the fact that the company

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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.

• Product - New product features and packaging options means that

there is improvement of quality products. This can be seen from the
transition between Avon’s hair care ranges for women to men.
• Price - Maintained at a high level, if demand is high to reduce to
capture additional customers
• Promotion - Increased advertising to build brand preference, as they
have identified their target market

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.

• Product - Modifications are made and features are added, in order to

differentiate the product from competing products that may have been
introduced, especially when competitors such as L’Oreal catch up with
Avon.

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• Price - Possible price reductions in response to competition while

avoiding a price war. This could be due to the fact that competitors are
lowering their prices or there is a lower demand for that product.
• Promotion - emphasis on differentiation and building brand loyalty
incentives to get competitions’ customers to switch which will help build
up a good customer base

Decline stage

Eventually sales being to decline as the market become saturated, the

product become technologically outdated, or customer tastes change. The
profitability may be maintained longer if the product has developed brand
loyalty. Unit costs may increase with the declining production quantity and
ultimately no more profit can be made.

This is when the products do not have a sufficient number of potential

customers who are willing to purchase the product, as the market is saturated
and demand for some items are decreasing. Currently there are no products
which have entered this stage of the product life cycle. This shows me that
their products are usually successful which makes it easier for me to launch a
new product with them.

The following are some of the market mix implication which are apart of the
decline stage.

• Product - the amount of products in the line may be reduced or

surviving products may be revitalized to make them appeal to the
market again.
• Price - prices may be lowered to settle the inventory of discounted
products, or prices may be maintained for continued products serving a
niche market
• Promotion - Expenditures are low and aimed to reinforce the brand
image for continued products.

Extension Strategies
Avon has used many different types of extension Strategies in order to
maintain an increase sale of products.

– Product Development - Avon has redesigned many product

packages. The cosmetic range has changed their packaging to
emphasis more on the target market.
– Market Development - Avon has been able to find a new market for
their cosmetics. This was done by opening up their market to men.
Previously their products were primarily aimed at women however they
have opened up their markets due to a demand for men’s products in
the market.

My interest in the product

I am interested in this product as Avon cosmetics is somewhat a long and

establish brand that caters for both male and female customers and has a
wide selection of products to suit its target audience whether its from

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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.

Marketing Aims and Objectives

Avon operates in an increasingly competitive market, and therefore must

create objectives that will help them remain at the top of their market, and aim
not to let anyone else, take their position of market leaders. Some of Avon’s
main aims are stated below:

– Growth in market share

– Maximising consumer needs
– Meeting consumer needs

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.

– Increasing brand awareness

– Developing new products
– Maximising sales and profits

To maximise the sales and profit

By maximising the Avon’s capital, they will be able to carry on to be more
influential market leader, and gain market share and improve profitability
overall. In order to fulfil this objective, Avon must look at their other objectives
and fulfil them as well. If they are accomplished, they will allow there to be
increased sales and profit maximisation. By increasing awareness of their
product range, it will become more likely that customers will buy the product,
which will ultimately turn into maximising sales and profit. Furthermore by
creating new products there will be a wider variety of products to sell, making
it more likely that the customers will buy the products. Avon needs to
maximise sales whilst at the same time keep the marketing costs within the
company budgets in order to get profit maximisation.

To Increase the brand image

By increasing the companies’ corporate image, Avon will be more likely to
fulfil their aims of staying market leader. Avon is already a world known
company, but potential customers need more information about the specific
products to buy, as the wide range of products can be quite difficult to choose
from. For this reason it is essential to increase brand awareness, and well as
awareness of specific products. This can be achieved through a selection of
factors such as imaginative product design, good advertising, good publicity
as well as sponsorship to increase brand awareness.

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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.

Avon’s market objectives are to develop new products as well as diversifying

into new market and gain large market shares abroad. Avon can keep up-to-
date with the needs and wants of customers, by fulfilling this certain objective.
Also by conducting market research and gathering market data. This factor
will also help contribute to the deigns of the new products. This will mean that
Avon will need to continue to invest money into the research and development
of new products.

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

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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.

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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.

Men have recently started to shows an

increasing interest in their physical
appearance. Ageing in increasingly
unfashionable in men and many
companies have launched an
advertising push to get the word out.
Television and adverts aimed at
getting men to start buying hair care
products have tripled over the last few
years, in line with an explosion in hair
care sales.

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.

How Avon’s marketing aims and objectives, target market and

segmentation are all connected

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

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new market segments, nevertheless would be a very costly process at the

start.

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.

This would also allow Avon to differentiate themselves from competitors, as

new products would already have the branding of Avon who already provides
certain other products from men such as skin care, so it will be more likely for
the products for the new target market to succeed, as well as the fact that
Avon may not need to do too much advertising to promote the new product,
as they are already a well known company with a strong customer base.

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
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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.

Develop new products - Avon is already a well known business; however, in

order for them to succeed they need to create a larger product portfolio. As
Avon has already been focused on advertising their products to the female
population, it is important that they target new products to different
segmentation of the market, e.g. men. This will also help them to create a
larger customer base, as they will have the potential to take in customers from
a wide range of market segmentations.

Growth in market share - Avon is already a will established business in the

cosmetics industry. It order to increase their market share Avon must in new
products, which will aid to increase their market share. They must also cater
for all ages and in turn, it will enable Avon to achieve a wider customer base
to buy their products thus, help them generate more revenue and staying as
the market leaders.

Meeting consumer needs - By meeting consumer needs, this shows that

Avon caters for all consumer needs. At the same time Avon aim to
concentrate on age groups; this is because different age groups require
different needs. This will ultimately increase brand loyalty and brand
awareness.

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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.

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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.

As Avon is already a well established company, and has a loyal customer

based from marketing their previous products, it would be easier to a certain
extent to venture into the male hair care market. As this is a relatively new
market for Avon, as Avon has not got a wide portfolio of products for this
market, it is important that a significant amount of research is carried out
about this market, to find out what appeals to the consumers and whether
there is sufficient number of customers who would be interested in the
products, to make it worthwhile for Avon to launch it into the market.

It is imperative to identify the size and structure of the market, to see if

products have already been introduced for this market, as well as identify
which stage they are in of the product life cycle e.g. maturity. This is important
as if the product was in its growth stage, there would be a significant amount
of work that would need to be undertaken in order to try and get this particular
product at the same stage as the competitors.

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.

As previously mentioned the competition is also an aspect that needs to be

investigated, so the business has more knowledge on what the company
provides, so they can compare their prototype to it, and identify a way in
which it could be altered in order to make their product more appealing to the
market. In addition looking at the competitors will also help to identify the
market trend, which will allow Avon to respond to the market effectively and
fulfil the needs of the consumers

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.

Identifying the Target Market

It is important that the size as well as he structure of the market is researched
upon. This will help represent the several types of potential consumers that
will be interested in the product

Identifying the competition

In order to make sure a product is successful it is essential to investigate the
potential competition. This will help the company to work out what is

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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.

(b) Primary and Secondary Research

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.

The advantages of Primary research are:-

○ It is quick and cheap to conduct primary research if the sample is small
○ Allows generalization to a larger population

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.

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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.

Primary research is always up to date, as well as the fact that there is no

danger in using out of date data that may not be useful to the business at the
present moment in time. This is a common problem with secondary data;
therefore it would be essential for Avon to make reliable decisions using
primary data.

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.

Secondary research allows Avon to gather and analyse research which is

already available on the market. There are two types of secondary research,
which are internal sources which include feedback from companies’ sales
department and careful analysis of reports as well as financial accounts.

External sources include Government publications as well as marketing

agencies reports. Other sources include results from pressure groups and
trade magazines.

Secondary data is usually a more popular way of gathering information, as it

is more efficient as well as being more cost effective. Also Secondary data is
easier to get hold of compared to primary data.

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.

Therefore it is crucial that whilst carrying out secondary research many

sources are included so all questions are answered when undertaking
research. Another problem for Avon with secondary data is that they may be
unsuitable, e.g. it may contain errors, or even be out of date.

Secondary data is mainly used to help Avon to get an initial understanding of

a certain market. Avon will then be able to carry out primary research on
problems or issues that have show up whilst using the secondary data.
Secondary data also allows Avon to recognize market trends and illustrate
product life cycles of certain products. This will help Avon’s new products to

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succeed, which will help towards the, marketing objective of creating new and
innovative products.

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1(a) Primary Research

I have undertaken a questionnaire for my primary research about new types

of hair care products aimed at men between the ages of 30+. For this reason
the questions that have been included in my questionnaire are all specifically
intended to aim at all of the areas of the product mix (4 P’s). I have decided
to use a quota sample to find people who I feel their contribution will be valid.
This is why I have not included any women in the questionnaire as it would
not be appropriate for a woman to answer questions about men’s hair care
products, if they will not be using it themselves. The information that has been
collected is therefore specific to the product, as well as the information used
will be targeted at the right audience.

I have therefore decided to ask the following questions as it will allow me to

perform up to date market research for the new product that Avon would like
to launch, targeting men. It will also possibly help me to make informed
decisions such as the pricing of the product, based on consumers needs.

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.

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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.

1. How much would you be willing to spend on hair care products?

 £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

1. Where would you most likely buy hair care products?

 Chemists
 Supermarkets
 Department Stores
 Internet
 Other

1. Which medium of advertising appeals to you when it comes to buying

hair care products?

 Television
 Radio
 Magazines
 Flyers
 Internet
 Other

Questionnaire Results

Percentag
Question Frequency e

How much would you be willing to spend on

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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%

When purchasing a hair dye product what

qualities would you look for?
Quality 20 40%
Packaging 12 24%
Brand 7 14%
Price 11 22%
Other 0% 0%

Where would you most likely buy hair care

products?
Chemists 1 2%
Supermarket 10 20%
Department Stores 10 20%
Internet 20 40%
Other 9 18%

Which medium of advertising appeals to you

when it comes to buying hair care products?
Television 16 32%
Radio 10 20%
Magazines 12 24%
Flyers 2 4%
Internet 5 10%
Other 5 10%

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Questionnaire Result Analysis

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 -

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£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.

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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.

When purchasing a hair dye product what qualities

would you look for?

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.

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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.

Conclusion of Primary Research

My overall results show that my research of primary research has narrowed

down the decision to be made in the marketing mix for my 4 P’s. My new
product range produced through the marketing mix has showed through the
results of the questionnaire that it will be a success. Each of the questions on
the questionnaire show that the results have been a benefit to Avon, and
gives me an opportunity to create a success from its new product range of
men’s hair care products.

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

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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.

(2) Secondary Research

Secondary research must be undertaken in order to identify the trends of the

potential market. By identifying information about them, we can adapt the
product to the customers needs. In addition, we could also find out if there is a
market for the product. If not, Avon could stop investing in the product and
move to another.

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

SWOT analysis is a tool for auditing an organization and its environment. It is

the first stage of planning and helps marketers to focus on key issues. SWOT
stands for strengths, weaknesses, opportunities, and threats. Strengths and
weaknesses are internal factors. Opportunities and threats are external
factors.

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.’

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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

Competitive products/ services and price range:

○ Just for Men - Just For Men Hair Colourant Just for Men - £5.69
○ Just for Men - Just For Men Beard & Moustache Gel - £7.29
○ Just for Men - Just for Men Shampoo-in Hair Colour - £7.99

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

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SLEPT Analysis
Before creating business plans or when evaluating existing ones it is
important to 'scan' the external environment. This takes the form of a SLEPT
analysis, i.e. an investigation of the Social, Legal, Economic, Political, and
Technological influences on a business.
Factory Category Description
This means how well
Avon deals with
customers. This may
Social allow Avon to increase
prices as they have a
loyal customer base.
This involves where and
how Avon produces their
products. This can be
Legal social or geographical
factors, as well as child
labour.
Where Avon distributes
their products, as well as
which market they are
Economical aiming/ targeting their
products at.
Avon would not want to
be seen in a militant
camp, as well as being
Political involved in other political
issues such
as child/ cheap labour.
Research and
development of new and
innovative technology, to
Technological be able to produced a
wide portfolio of products,
which will benefit the
company.
Impact
Attracting new customers,
which will allow Avon to
have a wider target
market, resulting in an
increase of sales and
more brand awareness.
This also increase brand
loyalty and may force
pressure groups to make
good impressions. As well
as giving the company a
better reputation and
image.
Increasing brand
awareness giving Avon a
competitive advantage
over less successful
brands such as Just For
Men.
Giving them low public
relations, decreasing
sales and giving out a
bad image and
reputation.
Introducing a wider range
of products allowing
existing products make
way for new products in
order to reach maturity.
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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

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Gros
Reven s
Reven ue Per Profi
ue Share t

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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

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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.

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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.

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Secondary Research Conclusion

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.

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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.

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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

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marketing mix will be constrained through budgeting available for the

marketing activity.

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

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benefits that cannot be measured. It is important that the product is changed

as necessary to bring it up to date and prevent it from being overtaken by
competitors, as well as central to the marketing planning of a business.

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.

When conducting my market research, I have identified that through celebrity

endorsement, it gave 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.

A product can be differentiated from the competitor by creative advertising

and promotion, even if the competing products are physically identical.
Avon’s new product range targeted at males will increase brand awareness,
and as well as being a competitive product in the market which competes with
many of its biggest competitors e.g. Just for Men.

As you can see below, I have designed the brand image for one of the
product of the new range of products: -

Logo

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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.

Avon’s hair care range is classed as a luxury product, resulting in it being

aimed at A B and C1 of the social economic groups as their products are
usually aimed at medium income groups, and is unlikely to be bought by
people who are unemployed. As Avon creates premium products, so it is likely
that people are willing to pay more than the economy price to purchase the
good. Avon operates in the lower end of the premium spectrum, and therefore
most people will buy this product compared to products on the top end of the
premium spectrum due to the high price comparison.

Swot Analysis

SWOT analysis is a tool for auditing an organization and its environment. It is

the first stage of planning and helps marketers to focus on key issues. SWOT
stands for strengths, weaknesses, opportunities, and threats. Strengths and
weaknesses are internal factors. Opportunities and threats are external
factors.

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.

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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

Product Life Cycle

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.

The diagram below shows the product life cycle

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.

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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.

This needs to be conducted through aggressive promotion in order to attract

more customers.

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:

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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.

I will be analysing each quadrant of the matrix.

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.

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Ansoff’s Matrix

Ansoff’s Matrix can also be used to indicate new product development, as well
as indicating strategic direction.

The table below shows the matrix.

Product

Old New

Old Market penetration Product Development

(Low Risk)
Market

New Market Development Diversification

(High Risk)

1. Market Penetration - this is where the company will market existing

products to existing customers. This will mean increasing the revenue,
for example by promoting the product and repositioning the brand. In
the penetration stage Avon’s products are maintained through their
existing products to their existing customers

2. Market Development - This is where the company markets their

existing product range into new markets. This means that the product
remains the same, but is marketed to a new audience, for example
exporting the product or marketing it in new regions. Here Avon will
market their existing products to a new market.

3. Product Development - This is where the company markets new

products to existing customers. This is where they develop and
innovate, new product offerings to replace existing ones. For example
Avon can target their hair care product at men who already buy their
hair care products.

4. Diversification - This is where the company markets completely new

products to new customers. There are two types of diversification.
Related diversification, which means that the company will remain in a
market or industry which the company in know for, an unrelated
diversification is where the company has not previous experience in.

The product that I will be marketing will be launched in related

diversification as Avon is familiar with the hair care range, and will only
be altering it for a different audience.

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.

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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

Sales Good Act 1979

This Act gives consumers protection against faulty or unreliable goods. At the
time of sale, the product must fit its description, be fit for its purpose and be of
satisfactory quality. If a product is faulty at the time of sale or shortly
afterwards, the customer has a right to return the product and claim a refund.

Trade descriptions act 1968

This Act makes it a criminal offence to apply a false trade description to
goods. The Act covers descriptions given both verbally and in writing. It
covers any factual statement about the physical qualities of the product, e.g.
size, performance, place of manufacture and previous history. For Avon it is
significantly important to ensure that it has a procedure in place, in a fast
changing market, to ensure that new products are accurately described when
they are put on sale.

The Weight and measures act 1986

This act sets out to make sure that consumers get the weight or measure (e.g.
for liquids) that they are offered.

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.

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Price

The customer's perception of value is an important determinant of the price

charged. Customers draw their own mental picture of what a product is worth,
based on the price. A product is more than a physical item; it also has
psychological connotations for the customer.

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:

Price Skimming - Price skimming is a pricing strategy in which a marketer

sets a relatively high price for a product or service at first, and then lowers the
price over time. Nevertheless it is only effective when the business is facing
an inelastic demand curve.

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However, skimming encourages the entry of competitors. When other firms

see the high margins available in the industry, they will quickly enter, as well
as the fact that the manufacturer could develop negative publicity if they lower
the price too fast and without significant product changes.

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Penetration Pricing - Penetration Pricing is a form of market-based cost. As

Avon is a large company, it has the means of producing a product with the
revenue they generate from other products in their portfolio. Therefore they
can start off selling their products relatively low.

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.

As Avon is a popular brand there is a chance that people would be willing to

pay for this product. I have therefore decided to choose the starting price of
£4.99. This is slightly lower than the average price from my research being
£6.29. I have chosen to sell the product for £4.99 rather than £5.00, as this is
psychological pricing, so it makes it seem much cheaper than that of other
products, even through it may be a couple of pence cheaper.

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.

The advantages of penetration pricing to the business are:

• It can achieve high market penetration rates quickly. This can take the
competition by surprise, not giving them time to react.
• It can create e valuable word of mouth.
• It creates cost control and cost reduction pressures from the start,
leading to greater efficiency.
• It discourages the entry of competitors - Low prices act as a barrier to
entry
• It can create high stock turnover throughout the distribution channel.

Predator Pricing - Predatory pricing (also known as Destroyer pricing) is

the practice of a firm selling a product at very low price with the intent of
driving competitors out of the market, or create a barrier to entry into the
market for potential new competitors. The other firms go out of business if
they cannot sustain equal or lower prices without losing money. The predatory
pricing then has fewer competitors or even a monopoly, allowing it to raise
prices above what the market would otherwise bear.

Nonetheless in many countries, legal restrictions may preclude this pricing

strategy, which may be deemed anti-competitive.

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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.

Direct selling involves selling directly to your customer; retailing, door-to-door,

mail order and ecommerce all directly sell to customers. The advantage of
deciding to directly sell would mean you are in direct contact will your
customers and can easily detect the subtle changes which are occurring and
adapt to the changes; i.e. demand for price changes or overall demand for
your products. You also have complete control over your product range, how
it is sold and at what price.

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.

The advantages of using direct sales include

• It is a traditional method that Avon has used in the past with their
products.
• The product can reach a wider customer base
• It would cost Avon more money to have shares with profit
intermediaries.

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.

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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.

However, when it comes to celebrity endorsement they have to be careful

when choosing the celebrity as an inappropriate choice many defer people
from buying the product.

Good quality packaging could also be used to attract potential customers to

buy the products. Nevertheless, the packaging must state all the benefit of the
products. By doing this the product will automatically be targeting people who
may not have seen the advert before.

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.

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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.

In order for Avon to create a successful advertising campaign they need to

follow the following three stages:

There are numerous ways to advertise Avon’s products. These included

above and below the line promotion.

The main types are stated below:-

○ Vision - This is done through the use of TV’s, radios and the cinema.
○ Paper based advertising - This is done through the use of magazines
and newspapers
○ Leaflets and Catalogues - this is done through the use of main order and
door to door sales

Branding

Branding is the method of identifying a product by a certain name or logo,

which is unique to that product. Branding also helps to create a unique image
that fixes the product in the consumers mind as well as making it different in
the minds of the competitors.

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.

There are four types of brands. These are:-

• Individual Brand

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• 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.

Publicity/ Public Relations

Publicity is gained by a product being quoted in the media. Publicity is never
under the control of the marketing team, but depends on their decisions. It is
therefore necessary to find research in order to meet the customers’
requirements and make use of advertising effectively.

Public relations are similar to publicity but are an extensive to publicity. PR

aims are used to safeguard and promote their image of the entire organisation
as well as the individual product. It consists of the press release about the
organisation such as new product concepts, technological and political
factors.

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.

Merchandising depends on the psychology of advertising in its research into

what motivates the consumer. It can be anything from emotive messages,
package design and publicity.

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.

A sales campaign is a range of selling activities taking place within a specific

time period to achieve a specific level of sales.

In the selling process, numerous skills are required. These are:

• Research and development for making contact with potential
customers
• Establishing the customers needs through market research
• Presenting the product to the customer by explaining its features and
highlighting its benefits

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Other Factors Influencing the Marketing Mix

Economic Factors

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.

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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

The advancement of the internet would be a factor that could potentially

change the marketing mix.

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.

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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.

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Using Avon’s previous marketing aims and objective, as well as their

corporate ones, as a base for their success for the marketing of that product, I
have come to many decisions based on the likelihood of fulfilling these aims
and objectives.

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.

The place of which I will be selling my hair care product will be

internationally .All the places will help to make an immense amount of sales
with a huge amount of profit. I will be selling my product online. I have mainly
targeted all aspects of the internet to distribute my new product range and
cannot improve any further with new places to market hair care range. I think
selling my products worldwide will make enough profit to cover the costs of
the production.

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.

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