Department of Education

Region III

School Division Office of Bataan

Mariveles National High School Camaya Campus

Zone 6, Camaya, Mariveles, Bataan

In Partial Fulfillment of the Requirements in

MARKETING PLAN

(Avon Corporation)

Renniel Philippe Esteban

Donna Rolyn Salenga

Rosemhel Santiago

Shella Marie Palad

February 2019

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 Table of Contents

Page

Acknowledgement................................................................................... 4

I. Executive Summary................................................................ 5

II. Environmental Analysis………………………………………….

a. PESTLE…………………………………………………..

b. SWOT Analysis………………………………………….

c. Buyer’s Persona…………………………………………

d. Objectives………………………………………………..

III. Marketing Objectives……………………………………………

IV. Marketing Strategy……………………………………………...

a. Key Internal Factor…………………………………….

b. Key External Factor…………………………………….

c. IFE and EFE matrix…………………………………….

V. Marketing Mix (4p’s)……………………………………………

VI. Marketing Implementation…………………………………….

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 ACKNOWLEDGEMENT

This Marketing Plan is made possible through the help and support from

everyone, including: parents, teachers, family, friends, and in essence, all sentient

beings. Especially, please allow us to dedicate our acknowledgement of gratitude

towards the following:

First and foremost, we would like to thank God for his unconditional guidance

and wisdom as we make our Marketing Plan. Next, to our Marketing subject teacher

and adviser Ma’am Charina Dizon , who share her pearls of wisdom with us during

the course of this Marketing Plan and also for her assistance and for comments that

greatly improved this plan. We sincerely thank to our parents and family, who provide

financial support. The product of this Marketing plan would not be possible without all

of them. Words are not enough to give our deepest gratitude but we are truly grateful

for all your help and support for our project.

ABM Students,

Renniel Philippe A. Esteban

Donna Rolyn B. Salenga

Rosemhel A. Santiago

ShellaMarie C. Palad

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 I. EXECUTIVE SUMMARY

"Avon calling" -- calling for a younger crowd and improved global

operational efficiencies. Avon Products, the world's largest direct seller of

cosmetics and beauty-related items, is busy building a global brand and

enticing younger customers (while retaining its core base of middle-aged

buyers). Direct selling remains the firm's modus operandi, but sales also come

from catalogs, mall kiosks, a day spa (Avon Salon and Spa in New York), and

a Web site. Its products include cosmetics, fragrances, toiletries, jewelry,

apparel, and home furnishings. Avon has signed approximately 5.1 million

independent representatives. It launched a multiyear, four-part restructuring in

late 2005.

Avon's makeover involves purging staff, streamlining global

manufacturing, and adjusting its supply chain with regard to procurement and

distribution. The beauty company also plans to outsource transactional and

other services where necessary and to navigate toward countries that offer

lower operating costs. Avon plans to funnel funds into advertising (actually

double its ad spending by 2008), consumer research, market intelligence, and

product innovation. The cost of the reorganization is estimated at $500 million

but Avon says that once the restructuring is completed, it expects to save

$300 million each year.

The global reorganization involves boosting its number of "commercial

business units," or geographic regions, to six. Its existing units include North

America; Latin America; Western Europe, Middle East and Africa; and Asia

Pacific. The two additional units are China and Central and Eastern Europe.

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It's also now managing brand marketing and supply chain responsibilities as

global business units at the regional level.

With growth fairly stagnant at home, the New York City-based

company has shed product lines in favor of developing global brands. The

company has said it wants to become the Coca-Cola of the beauty industry.

Avon also is promoting its image as "The Company for Women" by providing

business opportunities for women in countries where women have fewer

choices. Avon products are available in more than 110 countries worldwide.

Despite resistance from China for most of 2004, Avon has been trying

to get its foot in the country's door. In 1998 China banned direct selling

because consumers there found it difficult to distinguish between companies

that direct sell and those that have pyramid schemes. The beauty firm sees

China as an untapped goldmine and as of April 2005 was given approval from

the country's government to test its direct-selling in parts of China, specifically

the cities of Beijing and Tianjin and the province of Guangdong.

As part of its plan to increase sales and market share, Avon has

invested more than $100 million in its research and development operations,

which include the construction of an R&D facility in Suffern, New York, that is

expected to continue into 2005.

Competition from mass merchandisers and specialty and department

stores has spurred Avon to not only spend many millions on R&D but set

aside just as much -- $100 million -- to support the launch of a global ad

campaign (2004). Its repackaged, reformulated, and reshaded line also

included a celebrity endorsement. Avon anticipates driving additional growth

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based on fragrances (Today, Tomorrow, Always) and skin care (Anew anti-

aging) sales.

In a move to realign its North American manufacturing operations,

Avon closed its Montreal-based manufacturing plant and shifted production to

its Springdale, Ohio, and Morton Grove, Illinois, sites. The phase-out was

completed by the first quarter of 2004.

Catering to the testosterone set, Avon, in late 2004, launched its first

men's catalog, M -- The Men's Catalog, which showcases the company's

men's treatment lines. Avon's mark.blu debuted in November. Also in 2004

Avon partnered with Sara Lee Corporation to market Bali and Playtex bras

and panties, as well as Wonder bras, through the company's catalog. The

deal was signed six years after Avon quit selling bras and panties due to

service-level problems through independent representatives.

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II. ENVIRONMENTAL ANALYSIS

A. PESTLE

Positive/Negative/Neutra Impact
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1. POLITICAL

 Regulatory Practices - Neutral - Philippines and

other emerging
economies
have changed
regulations
regarding not
only market
entry but also
how
companies in
Personal &
Household
Products can
operate in the
local market.

 The laws that the - Positive - With regards to

country enforces business, such

as contact law,
as they dictate
what Avon
products is and
is not allowed
to do.

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 trade barriers - Negative - The host
country has
would protect
Avon Products;
however, trade
barriers that
countries with
potential trade
partners would
harm
companies by
preventing
potential
exports.
2. ECONOMIC

 Inflation rate - Negative - The easy

liquidity in the
market post
the great
recession of
2018 will lead
to increasing
inflation in the
United -States
economy.

 Downward pressure - Negative

- The growing
on consumer spending inequality in
the society will
negatively
impact
consumer
sentiment and

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 thus impact
consumer
spending
behavior.
3. SOCIO-CULTURAL

 Citizen Awareness - Positive

- Reactions to
harassment
claims and
importance of
environmental
protection
prevail in the
industry as a
whole, and
thus are
expected from
any company
as they seen
as the norm.

 Demographics - Positive
- United States
is a young
country and
growing. Avon
Products can
use this trend
to cater to
various
segments of
the population.

 Access to essential - Access to

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 services - Positive essential
services by
and large over
the last decade
and half the
wider
population in
getting access
to essential
services in the
Philippines.
4. TECHNOLOGICAL

 Technological - Positive - This can

provide a good
innovation
insight into
what the
competitors
are thinking
and where
personal and
household
production
business
model future is.

 Lowering cost of - Positive

- The latest
production technology is
fast lowering
production and
servicing cost
in the
consumer’s
sector. Avon

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 products has to
restructure its
supply chain to
bring more
flexibility to
meet both
costumers
needs and cost
structure.
 Empowerment of
- Positive
- Technology
supply chain partners
has shortened
the product life
cycle and it
has enable
suppliers to
quickly develop
new product.
This has put
pressure on
Avon dividend
marketing
department to
keep the
supplier happy
by promoting
diverse ratio of
products.
5. ENVIRONMENT

 weather conditions - Negative - Significantly

impact the
ability of Avon
Products to
manage the

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 transportation
of both the
resources and
the finish
products.

6. LEGAL
- If there is a
 Intellectual property - Positive
likelihood like
laws the data stolen,
the Avon
products will
lose its
competitive
edge and have
a high chance
 Discrimination laws of failure.
- Positive - To protect the
employees and
ensure that
everyone in
Avon Products
is treated fairly
and given the
same
opportunities
regardless of
gender, age,
disability,
ethnicity,
religion, or
sexual
orientation.

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B. SWOT ANALYSIS

STRENGHTS

• The largest women’s foundation.

• Socially responsible and ethical with strong values (trust, respect, belief
and integrity)

• One of the world’s largest direct seller

• Strong brand image

WEAKNESSES

• No physical location

• Expensive Advertising

• Lack of control over the representatives.

OPPORTUNITIES

• Buy out other smaller companies

• Online markets becoming increasingly popular

• Offers employment opportunities

THREATS

• Fierce competition

• Reputation smeared by investigation

C. BUYER’S PERSONA

D. OBJECTIVES

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 The business plan is going to describe the directions and propose

steps for the company as a whole, including to management and

shareholders to achieve following objectives:

 Change the worldwide reputation of the Avon company

 Reach the new target market – lower class customers

 Achieve the competitive advantage within chosen products

 Stabilize the position of school responsible company – protect

environment

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III. MARKETING OBJECTIVES

A. Financial – to increase the advertising and net sale of 10% by the end of

current fiscal year.

B. Customer - to achieve an increasing percentage of positive feedback and

sales expansion by providing high quality products and outstanding service to

customers. Redesigning the process of market by including incentives such

as monthly give away or discounts on future purchases for customers who

take time to respond.

C. Human Resource or Employee - Providing trainings and orientations for

all the potential human resources/employees. Equip them with skills and

knowledge that can be applied efficiently and effectively in business.

Enhancing job satisfaction and giving appreciation to motivate employee by

awarding those who have the most creative input during the year in terms of

practical ideas to improve the company.

D. Production - to reduce the production cost at least 5% within 12 months

and to develop the existing machineries and materials used in the production

within 8 months.

E. Management Information System (MIS) - to provide the same necessary

information needed for decision-making, planning, organizing, controlling and

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evaluating the activities of the Corporation and to upgrade the system by 5%

within 5 months.

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IV. MARKETING STRATEGY

KEY INTERNAL FACTOR

Weight Rate Weighted Score

Strength
-The largest 0.12 4 0.48
women’s
foundation
-Socially 0.14 4 0.56
responsible and
ethical with
strong values
-One of the 0.13 4 0.52
world’s largest
direct seller
-Strong brad 0.16 3 0.48
imange
Weakness
-No physical 0.16 1 0.16
location
-Expensive 0.15 2 0.30
advertising
-lack of control 0.14 2 0.28
over the
representatives
TOTAL 1 2.78

KEY EXTERNAL FACTOR

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Weight Rate Weighted Score

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Opportunities
-Buy out other 0.23 4 0.92
smaller
companies
-Online markets 0.18 3 0.54
becoming I II III
increasingly
popular GROW AND MAINTAIN
-Offers 0.20 4 0.80
employment
opportunities

Threats IV V VI
-Fierce 0.20 2 0.40
competition BUILD AND HARVEST
-Reputation 0.19 2 0.38
smeared by
investigation

TOTAL VII 1 VIII IX 3.04

HOLD OR DIVEST

IFE matrix

4.0 3.0 2.0 1.0

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3.0
V. MARKETING MIX (4p’s)

Product

Avon offers a unique and authentic product that you will love. It

has travel size make up colors for lips, eyes, nails and face that will not

irritate your skin and helps your face to prevent oil skin and pimples. Its

skin care products involve brightening, line correctors, fairness of skin

and nourishing creams, and cleansing lotion with different sizes (5ml,

10ml, 50ml, 100ml). It will helps your skin to diminish dark spots on

your skin and helps to prevent dry skin. While the category of

fragrances, it provides great products depth in women fragrances, body

spray, and mist that creates a sweet and long lasting scent.

Price

Avon Company maintained high quality product with a reasonable

price. It includes the cost of production but the mark up cost is not so high for

the consumer to be able to reach out their products.

Promotion

Avon launched a mobile application and uses a commerce website to

publish a brochure that can be downloaded from its official website to keep

the customers informed. They also results sales representatives for selling

directly and relies advertisements via catalogs.

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Place

Avon has adopted the direct sales policy for distributing its products far

and wide. Third party suppliers are also used to sell its products to different

areas. It targets housewives who are comfortable buying in their own space

from their homes.

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VI. MARKETING IMPLEMENTATION

Objectives Activities Time frame Person’s Target/

involve Budget
Allocation
A. Financial

1. Increase 1. Hire 1. December 1. Marketing Php 500,000

advertisements advertising 2019 Manager
agency and
broaden your
advertisement
by creating
tarpaulins,
posters, and
fliers

2. Increase net 2. Intensify 2. December 2. Marketing Php

sales of 10% at the promotion 2019 staff 1,200,000
end of the current
fiscal year.

B. Customer
1. Lower the 1. Incentivize 1. January- 1. Finance Php 560,000
amount of complaints customer to fill June 2019 Manager ,
and receive good out survey Sales staff
feedback

2. Keep the 2. Train the 2. July- 2. Human Php 500,000

customers delighted staffs to December Resource
for the rest of the respond to 2019 Management
year customer’s
complaints
C. Human
Resource/Employee

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 1. Equip the skills 1. Cover skills 1. January- 1. Human Php 1,000,000
and knowledge that gap by training June 2019 Resource
can be use programs Management
effectively in
business

2. Fill 100% of 2. offer some 2. January 2. Human Php 1,300,000

positions posted by incentives and 2019 Resource
business units, 10% benefits Management
of newly hired staffs according to
with company at position given
least 2 years. and attend job
fairs to hire
new employee
D. Production

1. To reduce the 1. Be 1. January- 1. Production Php 200,000

production cost at resourceful, December Manager
least 5% within 12 find of less- 2019
months expensive
alternative
materials or
ingredients

2. To develop 2. Hire well- 2. January- 2. Production Php 800,000

existing materials skilled August 2019 Employee
and machineries technicians
used in the
production within 8
months
E. Management
Information System
(MIS)

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 1. To provide the 1. Be 1. January 1. Chief 1. N/A
same necessary consistent on 2019 Information
information that is providing Officer , MIS
needed for decision accurate and Department’s
making, planning, important employees
organizing, information by
controlling, and daily
evaluating the monitoring.
activities of the
business

2. To upgrade the 2. Developing 1. May- 1. Chief Php 1,000,000

management the system with September Technology
information system the help of an 2019 Officer, I.T
by 5% within 5 I.T expert specialist
months

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