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Marketing plan: Avon and Mattel Inc

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  1. Executive summary
  2. Company description
  3. Strategic focus and plan
    1. Avon mission
    2. The global beauty leader
    3. The women's choice for buying
    4. The premier direct seller
    5. Avon's values
    6. Avon's Principles
    7. Core competency and sustainable competitive advantage
  4. Situation analysis
    1. SWOT analysis
    2. Financial data
    3. Competitors' analysis
    4. Customers' analysis
  5. Product-market focus
    1. Marketing and product objectives
  6. Marketing program
    1. Product strategy
    2. Price strategy
    3. Promotion strategy
    4. Distribution strategy
  7. Conclusion

With this article we will highlight how Mattel and its well-known icon, Barbie tried to get a foothold in the Chinese market since 1998 by using a well known company: Avon. This situation is called a piggy - back, this illustrate how company A, here Mattel, wants to sell its products trough the distribution channels of another, company B, here Avon. So to define it, a piggy-back is a horizontal co-operation; in our case Mattel uses the distribution channel of Avon to sell its Barbie dolls. We might ask now, why does Mattel, a big international group, need to co-operate with Avon? We will try to figure it out through this marketing plan. We already know that this association can be profitable.

Considering this case, a relation between Avon and Mattel will be reductive. In fact we must also take into consideration the place as well as the life of the market. China is a special atypical market and a new emerging market. The way to penetrate into the Chinese's market is totally different from that of the USA or European Union. Cultural aspects and especially government wishes and obligations have to be taken into consideration. When an industry gets that big even corporate bureaucrats begin to notice it. Major multinational corporations are taking account of the networking phenomenon, building it into their own plans for distributing products and services.

[...] China accounted for only of Avon's sales in 1998, but with the huge potential of Chinese market, Avon is willing to accept the challenge of entering this market Strategic Focus and Plan This section covers three aspects of corporate strategy that influence Avon's marketing plan: the Avon Mission, Avon's Values and their Principles. Avon Mission The mission of Avon is to market cosmetics, fragrances, toiletries and to be the company that best understands and satisfies women needs in terms of products and services. [...]

[...] In fact the core products of Mattel and Avon are dolls and cosmetics / fragrances respectively and it is difficult to see Chinese girls play with Barbie dolls and women with cosmetics Company description Avon was founded in 1886 and incorporated as California Perfume Products in 1916. The core marketing strategy of the company was its ?Avon ladies?: an army of salespersons today constituted of millions of part-time and full time door-to-door working women. The idea is simple; every woman develops client lists of friends and neighbors to whom they sell Avon products. [...]

[...] Thanks to its Avon ladies, Avon can offer very specific services and show a ?human size? company despite its multinational activities. This is a good way to close and high level services Situation Analysis SWOT ANALYSIS Strengths Weaknesses Huge sales force worldwide implanted High Turnover Representatives not Very personal services offer to always really committed to the company customers lack of basic skills needed Multi canal of sells and distribution Several Competitors are on same Global product communication markets Facility to enter new market Many lower-quality lower-price High quality products with strong competitors corporate ethics Opportunities Threats Chinese market is close to skyrocket Legal & regulations aspects can occur Many rising countries increase their and freeze business in a country incomes and develop beauty product Premium price may limit access to mass consumption markets Avon has a strong commitment and Competitors can follow Avon strategy distinctive name in its markets Overall, the main weakness rising from this analysis is the high turnover of Avon's sales force. [...]

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