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Nov 24, 2024

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Marketing Principles and Techniques SUBMITTED BY: Olga dudova

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Introduction The research elaborates on the marketing strategies used by the renowned and exceptional cosmetics brand Avon Products, which sells items for beauty, daily use, and personal care. David H. McConnel established the business in 1885. Natura & Co. purchases ownership of the business in January 2020 after acquiring a 76% stake in it. Avon's annual revenue was predicted to be 4.7 billion US dollars in 2019; after paying all workers, the operating income for 2018 was 235.2 million dollars. The company, which is among the top fourteen cosmetics companies globally, had global sales of $5.57 billion in 2019. Under the leadership of CEO Angela Cretu, the network of firms is served by 23,000 employees. Avon is famous for its cosmetics, perfumes, and clothing and is the second-largest direct-selling business. Task 1: What is marketing? Definition of Marketing Customer needs must be met as part of marketing in order to generate some profit. All necessary steps to meet that level of satisfaction are included in marketing, including determining a product's need, creating plans for it, manufacturing it, choosing a market to target with it, determining a price that will make customers more likely to buy it, and promoting it to increase sales and make money.. (Gordon et al., 2018)

1.1 Diverse activities carried out in the marketing department The following are some activities that are responsible for the marketing department to do. Listening to customer needs The marketing department's first and most important task is to determine the need for a product through a variety of methods, including surveys, interviews, feedback, and social media data. This is a company's first and most important stage because it might produce the best results from the customer's perspective. Track trends and monitor competition A corporation chooses a product to meet those standards after determining the needs and specifications. The next phase is to determine how many people are willing to buy it, what social trends are present at the time the product will be released, who the competitors will be, and how many of them there will be. Prior to the launch of the product, these queries must be addressed, and solutions must be developed to get through these obstacles. All of these tasks are carried out by the marketing division. Work and brand values The level of competition now is extremely high across all product categories. People have a strong brand loyalty, thus it's crucial to implant new brands in their minds so they develop an interest in novel goods. Yankah and others (2018) Customers should be given information about the brand and expectations, and the company should do its best to live up to those brand values. Help improve sales processes and customer The marketing division's primary and long-term mission is to develop methods to boost sales and grow the variety of clients. From time to time, promotions and enticing strategies are used to draw in customers and boost sales.. (Nath and Bell, 2016) 1.2 Market Segmentation The technique of segmenting a market is dividing it up into smaller groups. These sections' needs and requirements are identified independently, and the company subsequently handles these segments in accordance with those demands.

Geographical Segmentation : The goal of geographic segmentation is to divide the market into different groups according to locations. The rules and legislation of that region are also a part of this form of segmentation. 2015's (Molina et al.) The excellent use of geographic segmentation by Avon Products allows them to sustain their market share throughout numerous nations Psychographic Segmentation ; the goal of psychographic segmentation is to divide the market according to consumer psychology, attitude, and mindset. In order to target clients who have potential and are drawn to their products, Avon Products is undertaking crucial work on psychographic segmentation . Behavioral Segmentation : The goal of behavioral segmentation is to divide the market according to how consumers behave, feel, and use a brand. It involves how customers interact with the products of the company. Demographic Segmentation : The goal of demographic segmentation is to divide the market according to demographic data. Age, gender, monthly income, occupation, religion, marital status, and degree of education are among the demographic parameters that are involved. 2016's Dibb and Simkin Avon Products maintains its demographic groups successfully and effectively. Young mothers and women in the age range of 18 to 50 are captivated by items for their babies and personal care. 1.3 Market Mix The part of marketing that includes the components for customer outreach is known as the marketing mix. Customers are attracted by using products sold under well-known brands, at accessible locations, at affordable prices, and through various marketing techniques. It can also be explained as: Product Avon is a well-known cosmetics company with a wide range of goods. The line-up includes the newest blushers, highlighters, lip and eyeliners, as well as perfumes and cosmetics including lip, eye, and nail colors as well as faultless foundations for various skin tones and skin types. High- quality skincare items like nourishing and cleansing creams and lotions, healing tonics, and fairness creams. In addition to being well known among ladies, the brand is also well known among men for its premium gent's fragrances and fairness creams goods.

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Place Avon Products employs representatives and has 6.4 million sponsors and representatives worldwide. They employ a direct sales strategy and have distributors all around the world. They span a large number of geographical areas. The business also released a mobile app so that their devoted consumers could contact them immediately. Price Avon uses contemporary pricing techniques to reach its target audience. The cost varies depending on the location and demographics. Due to the fact that the products are both created and sold directly in Romania, prices are maintained low. Due to shipping costs, prices in Pakistan and India are in the middle. 2019 (Bruskova) Avon ensures that the prices of its products are reasonable in the market and fiercely focused on competitors. Brands make sure they can compete successfully with companies like L'Oreal and Garnier both in terms of quality and pricing. Promotion Online platforms are used by Avon products to advertise their brands. They successfully update their online store by using the faces of well-known models. To help their clients learn more about the items and prices, they also offer downloadable pamphlets. Avon Products uses appealing presentations to provide their catalogues to customers as part of their primary marketing strategy. In addition, Avon advertises their brand through events, sponsorships, and festivals. Task 2: Market Research s 2.1 Aims of the Research Marketing research aims of the brand Avon Product Inc. are given below  To continue earning their customers' confidence and meeting their expectations with cutting-edge, highly competent items.  To make sure that both the company has a good reputation with its clients and that they believe it is worth choosing over rivals.

 To efficiently contact the target audience through knowledgeable sponsors and reliable product delivery. (Karjaluoto et al., 2015) 2.2 Market Research methods Different market research methods can be used including.  In-person surveys; a face-to-face interview process is used in inhabited locations, and questionnaires about brands and items are distributed. Users fill out the questionnaires, and feedback is quickly gathered. Although this form of survey requires a significant financial commitment and is very expensive, it has a very high response rate.  Telephone surveys Calls are used to conduct telephone surveys, which provide information about items and solicit customer feedback. Compared to in-person surveys, this form of survey has a lower audience, a lower investment, and a lower response rate.  Mail surveys Emails are used to conduct mail surveys. This form of survey can reach a wide audience and is reasonably priced, but the response rate is quite low because few people pay attention to commercial emails and very little feedback is gathered. (Wedel and Kannan, 2016)  Online surveys online websites and social media are used to conduct online surveys. Because so many phony pages are destroying the game, people are generally not going to accept anything they read online. Online surveys are thought to be the more affordable method of reaching the market; in addition, this company cannot control the audience's responses because they are speaking on public forums.. (Rahi, 2017) Avon Product Inc. is conducting online surveys to reach their customers as they are covering wide geographic regions and online surveys are the best option for the brand. 2.3 Market Analysis tools and Techniques The following are the marketing analysis tools that can be used for examining the company’s position in the market.  SWOT Analysis The best method for assessing a company's position in the market and among its rivals is thought to be a SWOT analysis. Through this study, a corporation can learn about its strengths and how

to best utilize them, as well as its flaws, threats, and opportunities. (Jasiulewicz-Kaczmarek, 2016)  PESTLE Analysis PESTLE analysis analyses a company's performance by taking into account its external influences, including its political, economic, sociological, technological, legal, and environmental circumstances. This is an external examination of the company that considers all relevant situations and compares them . ( Çitilci and Akbalık, 2020 ) TASK 3 Applying marketing analysis techniques 3.1 SWOT Analysis of the Avon market This research utilizes S.W.O.T analysis as it is the most effective tool of all. SWOT Analysis Strengths Weaknesses  Avon is quite clear about their target market because they cater to ladies and offer the best incentives to draw them in.  Strong ties between Avon and its representatives and stakeholders are well established. They ensure sponsors' advance payments and commissions  One of the most well-known cosmetics brands is Avon.  Women today favour working outside the home more than staying at home. More women are becoming sponsors as a result of this evolving trend, which lowers the quantity of possible customers.  Customers choose Avon mostly that they could order products while lounging at home, but as more companies increasingly advocate for online shopping, Avon's clientele is declining.  Avon previously over-promised to clients out of a fear of losing them, which raised their expectations.

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Opportunities Threats  With direct selling, Avon can receive assistance from online merchants like Amazon, Daraz.pk, or Flipkart to increase the sale of their goods.  People are flocking to internet businesses and sponsorships as a result of prior disasters, which produces a huge number of new representatives. The marketing network is made larger by this fact.  Amway, a potent rival on the global market, poses the biggest challenge to Avon Product Inc. Target market analysis So, following the SWOT analysis, the product's target market was determined to be women between the ages of 18 and 40. 100 people would make up the sample. Pestle analysis of Avon Political Around the world, Avon is present in more than 60 nations. Avon has retail locations in nations with very low political stability ratings, such as the Ukraine, Turkey, and Egypt, among others. Economic Reduced tax rates would encourage greater foreign direct investment. Developing nations like India, Bangladesh, and others have a ton of promise because they can provide Avon with inexpensive labor and cut expenses. Social Additionally, there is a requirement for adequate market segmentation; for example, Avon cannot offer its luxury line of cosmetics in a country where the bulk of the population is from the lower middle class.

Technological Avon should compare its production costs to those of its rivals. It will have slimmer profit margins if its production costs are higher than those of its rival. To reduce expenses, timely technical developments are necessary. Environment The necessity for businesses to alter their operations in a way that minimizes environmental damage arises from the fact that people are becoming more environmentally conscious. People like to be associated with businesses that care about the environment. Legal The corporation must thoroughly examine the business and employment regulations of the country it wishes to invest in to determine whether or not those laws align with its business strategy. 3.2 Interpreting Research Findings On behalf of Avon Products Inc., a survey of 100 people was done to assess consumer happiness and brand expectations, which will help the business manage methods to meet those objectives. The research's interpretations are provided below. Survey Questions Strongly Agree Agree Disagree Strongly Disagree Do the Avon Product Inc. is worth choosing among its competitors? 55% 23% 12% 10% Are you finding products of Avon better and modern? 67% 30% 15% 10% What do you think the reason behind Avon's fame? Foundations And colors 45% Perfumes 30% Skincare tonics 10% Clothing and mother care 15% Does the representative behave 70% 25% 3% 2%

well with the customers and clarify all asked queries? Is this Company offers affordable prices products? 69% 21% 8% 2% Interpretation by using graphical representations is as follows. Strongly agree 55% Agree 23% Disagree 12% Strongly Disagree 10% Do the Avon Product Inc. is worth choosing among its competi- tors? The audience is well satisfied with the brand among competitors as 55% of people are strongly agreed and 23% of people are agreed with the fact.

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Strongly Agree 55% Agree 25% Disagree 12% Strongly Disagree 8% Are you find products of Avon better and modern? The audience is highly satisfied with the product quality as 55% of people strongly agreed and 25% of people agreed that Avon provides modern and latest products. Founda- tions and Colors 45% Perfumes 30% Skin care and tonics 10% Clothing and mother care 15% What do you think the reason behind Avon fame People consider foundation and colors for the main reason for success as 45% of people agreed with it and 30% of people consider perfumes, the most successful product.

Strongly Agree 70% Agree 25% Disagree 3% Strongly Disagree 2% Do the representative behave well with the customers and clarify all asked queries? The survey represents that the representatives of the company are well informed and solve the queries of people very well as 70% of people strongly agreed with the fact. Strongly Agree 69% Agree 21% Disagree 8% Strongly Disagree 2% Is this Company offers affordable prices products??

The given graph describes that Avon’s products prices are affordable as 69% audience strongly agreed and 21% of people are agreed that prices of Avon are affordable among its competitors. Only 2% of people strongly disagree with this fact. 3.3 Presentation of findings to the marketing team The brand is able to recognize the expectations and demands connected to the brand through market analysis and discovers strategies to meet those expectations and demands in the future. They ask some targeted questions to this end in order to quickly get input and discover these essential market points. It helps the customer learn more about that brand, increasing the likelihood that they will choose it again. According to the market analysis, the company is doing exceptionally well. Customers are happy with the products' quality and affordability.. Task 4: E-marketing 4.1 Ecommerce website E-marketing is the most effective technique to reach the customer in our internet- and technology-driven world. It is important for Avon Products Inc. to efficiently operate its online store. Since their company relies on direct sales, they must regularly update the services and goods listed on their website. (2017) Montague et al. additionally, they should include coverage of other useful items in offers for their own products so that they can be marketed with other companies and sponsorships. Use of Social Media A customer in and of itself is social media. In a few days, a brand experiences increased success if it keeps up its positive reputation on social media. Avon Products Inc. can operate more effectively to reach more customers in less time because to its extensive social media presence. Karjaluoto and others (2015) Avon's primary market is the online space, so they are very aggressive in luring clients there.

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4.2 Methods of managing online image Paint the picture before the exhibition Customers can access the whole Avon Products Inc. catalogue online along with the most recent changes because the company has a direct sales philosophy. For customers to better understand the items, they also offer downloaded pamphlets. (Stevens et al., 2018) Don’t forget the execs Nowadays, consumers are interested in managers as well as products. The company Avon Product Inc. works with representatives, thus it is impossible to mention the 6.4 million people, but it does provide an executive portfolio and briefly identifies its management. A sponsor interacts with each customer, giving that person the overall impression of the company's management. Additionally, Avon supports numerous occasions and festivals that receive media coverage and brand promotion. Ask for help when required It's critical to enlist professional help when things are tough. To maintain the name and position of brand loyalty in people's thoughts, counselling and assistance for new decisions are required. Following is not as unpleasant, but in trying times, self-esteem should be set aside to maintain balance. (Panec and Douglas, 2015) Search Engine Optimization Avon Products Inc. secured the top 13 positions for optimized search results. These places included official websites, e-commerce websites, and customer trust reviews. Conclusion From the aforementioned data, it can be inferred that marketing principles and practises are crucial for a company's daily operations and performance. The paper details the marketing tactics used by Avon Products Inc., a well-known cosmetics company. When it comes to identifying and reaching a market, marketing is said to play a crucial function. In return, consumer pleasure is earned as an asset..

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