CAMPBELL-EWALD
March 2011-February 2012
Alexandra Vallarino
Adrienne Vaupshas
AVON
Parsons New School for Design
Advertising Principles PUDM 2425
Nancy Salvati
December 8, 2010
Contents
Executive Summary
3
Situation Analysis
Industry Analysis 4
Product Description 4
Target Market Description
Competitive Review 5
2
5
Advertising Objectives
6
Objectives and Advertising Strategies of Campaign
Promotion Mix 8
Media Objectives
Objectives 10
Strategies and Rationale
Budget 13
Sample Media 14
10
10
6
The creative staff at Campbell-Ewald is equally skilled in both traditional and emerging medias.
The agency is capable of custom publishing, which includes newsstand magazines, print and digital
newsletters. Direct marketing is one of Campbell-Ewald’s specialties and the direct marketing group
is responsible for work including strategy consulting, design and artwork development, direct response
advertising, direct mail production coordination, database design and development, media and list
planning, email and interactive media marketing, loyalty and incentive programs, and qualitative and
quantitative research.
Executive
Summary
Major Target Audiences
Avon will enter a new age market of teenagers
but will continue to cater to women from their mid
20s up to their 50s or even 60s. The rationale
behind this is that makeup and skincare products
are timeless and accessible at any age. Teenagers
are becoming more and more self-conscious of
their bodies and skin, Avon acknowledges that and
therefore sees a rising opportunity by entering this
younger market.
The target audiences have distinct profiles,
which are discussed more in depth throughout the
proposal. In a brief summary the distinct profiles of
the Avon consumer are women overall. Working,
stay-at home, single, married, children or no
children, career driven, family driven. Basically
targeting all types of women and rewarding all of
their efforts whether it is raising children or working
hard in the office or studying for the future. Avon’s
consumers are celebrated with the products.
Time Period of Advertising Plan
This campaign is designed for a projection
period of one year, starting in Spring 2011. The
campaign launch will coincide with the spring
fashion season, when women are looking to freshen
up their look for the new season.
Background
Part of the reason Avon Products hasn’t
performed as well as other primary beauty care
companies is diversification away from cosmetics
to include apparel and other consumer goods.
Repositioning Avon into the cosmetics industry
is the goal of the campaign, making its direct
competitors Revlon and L’Oreal. The main
products that the repositioning will expose will
be under the category of makeup and skin care.
Avon Company’s advertising campaign is going to
be centered on redefining and repositioning Avon
the makeup and skincare line. We are actually
doing the opposite of brand and line extensions
we are doing what we consider a “clutter reduction
cleanup.” The elements involved in the production
mix will be advertising, Internet interactive, sales
promotion and direct selling.
Campaign Theme
Avon had a very interesting advertising
campaign in the past. Avon ladies where introduced.
The current strategy is to reintroduce these “Avon
ladies” in the same style as the old advertisings.
The overall theme is bringing back Avon to its
roots. Therefore reintroducing the powerful idea
that Avon is THE Company for women and also
reintroducing their past Avon lady campaigns.
The campaign slogan will be “Be an Avon Lady,”
targeting consumers to become the ideal woman
by using Avon products and also recruiting women
to work as representatives for the brand.
Overall Budget
The budget for Avon’s media plan for a one year
run, forecasted for 2011 is as follows:
Broadcast media budget:
$2.04 million + $2.10 million + $1.66 million. = $
5.8 million
Print Advertising in Cosmopolitan Magazine =
$2.68 million.
Direct Mail in the form of a catalogue = $15.6
million which only includes direct mail to consumers
and not to other businesses.
Public Relations
Avon’s Breast Cancer fundraiser event
Total cost = price per person x number of persons
attending =
$235.00 x 200 = $47, 000
Total of all Media Budget = $24,127,000.00 million
Summary of Media Used
Our media plan will include broadcast media,
print media, direct mail and a Public Relations event.
Avon. Commercials will be aired over the ABC
network during Dancing with the Stars, Desperate
Housewives and The Bachelor. Print advertisements
will be placed in Cosmopolitan. Catalogues will
be sent to Avon customers whose information is
already in our database and an event will be held
about which a press release will be written.
Rationale
Used
for
Each Element
Avon will run TV commercials to gain mass
coverage. This channel is risky as well because
there is low selectivity and a short message life,
but if TV commercials are aired showing what Avon
representatives do and how they sell Avon products,
it is a positive opportunity for recruiting women
who are watching this channel and to expose some
of their products as well.
Avon needs to include print media in
their advertising campaign because of its quality
reproduction advantage as well as segmentation
and longevity benefits.
Avon will send catalogues to all of their
registered consumers. The way that consumer’s
data is accessed is from their online registration
at www.avon.com when they are making online
purchases with Avon and also with clients that use
Avon representatives for their purchases. Some of
the advantages of using direct mail are that, there
is a high selectivity range, there is a large amount
of content information in each catalogue and the
reader controls the exposure.
Evaluation Program
Objective evaluative criteria for cosmetics includes
attributes such as price, accessibility and appropriate
pigment for one`s skin tone. Subjective evaluative
criteria include emotional factors, such as how using
the cosmetic makes you feel about yourself. The right
shade of lipstick can boost a woman`s confidence;
it provides the client with an experience and not
just the product itself. Although cosmetics do have
functional consequences (covering up blemishes,
moisturizing the skin, etc), the consequences are
primarily psychoscial.
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Situation
Analysis
Avon is known as “the company for women.” Or at least that’s what they were in 1896,
when the company was founded as the California
Perfume Company. The first ten years of business, Avon concentrated on building a reputation.
It was known for its door-to-door selling services. The company grew quickly and very successfully within the cosmetics industry; so much so
that Avon served as the cosmetics sponsor for the
Olympics. The company began a campaign using
advertisings with well-known athletes with the
tag line “Just another Avon lady.”
In the mid 1970s Avon had to make some
changes. Due to some economic turmoil and
changes in society, Avon sought new, younger
consumers. Women where starting to enter the
workforce more and more, meaning that when
sales representatives went to sell Avon in houses, no one was home. Avon thought it was time
to diversify and it launched a new line targeted
to teenagers, it also started a clothing line with
Diane Von Furstenberg and it bought Tiffany
Jewelers in 1979. Not a good move at all, Avon in
consequence to its diversification strategy faced
debt and had to sell both the clothing line and Tiffany’s. Everyone knows that we learn from our
mistakes. Apparently Avon thought they where
the exception to the rule.
Currently Avon belongs to the cosmetic industry, the apparel industry, the manufacture industry and the retail industry. With its main competitors being Revlon, Mary Kay, The Body Shop,
Estee Lauder, and Procter & Gamble for cosmetics, fragrances, manufacturing and toiletries.
Our advertising strategy is based on repositioning Avon to what it used to be. Give it back
its strong reputation that has been lost in diversification and reintroduce it solely to the cosmetics industry. There are hundreds of companies
worldwide that specialize in the enhancement of
the physical appearance. Several product types
fall under the category of cosmetics.
Product Discription
1. Avon’s Life Cycle The History of Cosmetics Industry Analysis
Avon has done fairly well over the years but
since the economic recession in 2007 very few cosmetic
companies did not get affected, one of them was not
Avon. iThe expectation for cosmetics stocks was that they
would detach from retail trade and thrive as a recession
proof industry. Part of the reason Avon Products hasn’t
performed as well as other primary beauty care companies
is diversification away from cosmetics to include apparel
and other consumer goods, resulting in Avon trading more
in line with traditional retailers as we mentioned earlier.
Some companies within the cosmetic industry
(which is our target reposition industry), which Avon could
merge with, would be Mary Kay and Revlon. Yes, they
are Avon’s top competitors but they are also very strong
companies with strong brand equities. Mary Kay tried to
take over Avon in the 80s but was not successful. Today
an acquisition or a merge from any of these companies
would help bring the company back to the surface again.
Avon never had a problem with expansion.
ii
Geographical expansion was quick with Avon. In 1954
Avon started expanding internationally including countries
such as Brazil, Mexico and Venezuela. Today Avon is sold
in 134 countries on 6 continents. The company maintains
operations in 44 markets. Since its entrance into the
Canadian market in 1914, Avon Products have been
dedicated to expanding into international markets. The
main appeal of Avon in international countries was both
the appeal of American products and the opportunity
of women to work for the company as representatives.
Because of this we believe it is important to maintain the
image of Avon as a worldwide sold product reaching out
to different women around the world to provide them
with American cosmetics and to provide the opportunity
to women of becoming independent sales representatives
selling Avon cosmetics from the comfort of their home
within the hours of their choice.
Repositioning Avon within the cosmetics industry
involves certain changes. We thought that giving Avon
a fresh new look and a fresh new audience would build
the company a successful brand reputation. Targeting
teenagers and young women (ages 17- mid 30s) will help
the company achieve that fresh new image, specifying
only in cosmetics and skin care lines.
iiiCosmetics have been in the use of society for
around 6,000 years now. It is believed that cosmetics were
first used by ancient Egypt and Rome. These ancient societies had no idea the dangerous properties in make-up
used back then, like white lead and mercury. Egyptians
believed that eye makeup would chase away evil spirits
and improve sight. In Rome slaves would produce cosmetics, which were known as cosmatae. As time passed and
new civilizations were formed make-up became a part of
the female life routine. Cosmetics are known as aesthetic
enhancers and as part of the beauty culture. Today everyone who is on the media including men in news stations,
talk shows, movies, etc all wear make up to enhance their
physical features It also makes their skin look smooth and
perfect on camera. Females wear make-up everyday. To
go to work, to events, when they travel even when they’re
on vacation. Today the younger population (teenagers)
even wear make up to school and to social gatherings like
birthday parties.
Avon has several Brands under cosmetics that include
•
Anew Beauty
•
Avon Color
•
Beyond Color
•
Healthy Makeup
•
Ideal Shade
•
Jillian Dempsey
•
Smooth Minerals
All of these include products such as eyeliners, mascara,
lipstick, lip-gloss, concealers, and blush, among others.
Under Skin Care
•
Anew
•
Clearskin
•
Solutions
Products include skin toners, face creams, eye care, moisturizers, and body treatments.
Our strategy involves reintroducing Avon but keeping
the same concept of cosmetics and skin care. Right now
Avon is in a state of growth. It still hasn’t reached maturity. Our repositioning strategy puts Avon on a specific industry with fewer segmented markets so that it can reach
a mature state faster by gaining more market shares and
increasing sales.
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5
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2. Product Category
Avon is a high involvement product. Meaning
that the there is a learn - feel – do process when buying
their products. First the consumer learns about the
product and compares it to other products in the market
then he or she decides if this is the product fit for them
and then they purchase the product. Cosmetics are in the
affective high-involvement division of the Foote Cone &
Belding model.
Avon’s main product category is beauty and
health. Its products fall into three product categories:
Beauty, Fashion and Home. As to whether it is a franchise
we thought it wasn’t but after doing some research we
found under the Malaysian Franchise association that it
actually is at least in Malaysia.iv
Target Market Description
v
Right now Avon targets women between their
mid30s and up. It targets every type of women including mothers and a new market for men. This is Avon’s
current market segment. We would change Avon’s target
market; it would be for women of every age (30s, 40s,
50s, 60s, 70s) and include a new market for teenagers.
vi
In terms of geographic segments we decided to keep
Avon’s current geographic distribution, which includes 6
continents. We think it still very important to maintain
Avon’s international identity. Some of Avon’s market characteristics include
the women of different cultures and some psychographics variables that will be very important in our advertising
campaigns include the everyday woman with family values who is self-assured, vibrant, positive, motivated and
that leads a healthy lifestyle.
It is extremely important to portray these women
in Avon’s advertisings because it is an important part of
recreating the culture of the “Avon Ladies” that serve as
positive role models in society.
It is also very important to keep the essence of
Avon alive. Avon is very well known for personal selling
and that “door to door” service. It is important to
conserve the older target market because every woman
at any age wants to look beautiful and conserve her skin.
A very important advantage is the Avon’s representatives
they help older woman directly order from the comfort
of their home their favorite products. Also working
mothers who have little time to go out after work and buy
cosmetics can order them from their Avon representatives.
Competitive Review
For the competitive Review of Avon we will provide a perceptual map that shows three of Avon’s main
competitorsviii , where they stand currently and where
Avon would stand when repositioned.
Our two axis consist of
a) Strength of the brand’s identity (brand equity)
b) Age segment (younger vs. older women)
To build this perceptual map we analyzed our
competitors. Mary Kay looks a lot like Avon, it is a very
broad company with several product lines but with a
younger age segment. Revlon was on the other side, with
much stronger brand equity, it also has a broader age
range than Mary Kay. For their advertising campaign they
use Halle Berry, Jessica Biel and Jessica Alba. They have
a more specific product base focused only on cosmetics.
Last there’s L’Oreal, which has the strongest brand equity,
a very strong brand DNA it targets the mid 20s to mid 30s
or even 40s woman. Cosmetics are more colorful, playful,
trendier and younger. We would like Avon to have a strong
brand identity as L’Oreal and Revlon have but be more
centralized in terms of its age segment, meaning that
teenagers could use Avon but so could moms.
Avon is capable of withstanding a repositioning strategy.
It was once on top of the cosmetics industry and had
an impeccable reputation. Why not bring it back to the
top? Cluttering and diversification definitely hurt the
company, our goal is to concentrate on what makes Avon
really successful while tackling some of its weaknesses
that include poor brand identity, no specific consumer
segments and a poor existing promotional mix.
Objectives and Advertising
Strategies of Campaign
1.
Primary and Secondary Objectives of the
Campaign
Avon Company’s advertising campaign is going
to be centered on redefining and repositioning Avon the
makeup and skincare line. ixWe are actually doing the
opposite of brand and line extensions we are doing what
we consider a “clutter reduction cleanup.” After doing
our research we found that Avon has diversified itself
so much that it has lost thousands of consumers. xWe
examined the website and found that other than makeup
and skincare they have fashion, children, men, fragrances,
wellness, hair care and bath. xiThey have lost their focus
products and their focus target segment. This is where we
come in and reposition Avon to a company focused on the
beauty of woman by providing their two strongest lines:
makeup and skincare.
“ In 2007, the annual Avon Global Consumer
Tracking Study found that four in ten women in the
United States (ages 15-64) had purchased an Avon
product in the past year, and 80 percent had bought
Avon products in their lifetime. Worldwide, the average
awareness of Avon by women polled in 36 countries was
94%, meaning nine in ten women are familiar with the
Avon brand. This translates to an extensive customer base
and a responsibility to deliver the products and service
customers want and need. A key part of this mission is
filled by a dedicated Customer Care team.”xii
– Avon Corporate Responsability
In order to reposition Avon a series of objectives need to
be set in order to carry out the creative strategy. This is
also known as the copy platform. The primary objectives
of the advertising campaign are:
Advertising
Objectives
1)
Identifying the target audience. Female oriented, young women to women in their mid 30s. Targeting the working independent woman but also the working
mother and her teenage daughter.
2)
Researching this audience. What do these
women want? What are their feelings towards makeup?
What makes their makeup so special to them, why is it a
part of their daily life? What skin products do they already
use, are any of those Avon? If so why do they use them?
It is important to really and truly know your audience. A
successful advertising campaign gets the attention of its
intended audience and allows them to relate to the product. A very good example was L’Oreal. The celebrities
that they picked for their campaign represent young powerful women in their industry that are healthy and beautiful and lead positive lifestyles. The Revlon campaign really caught our attention. We saw three beautiful actresses
that are perfectly healthy, not skinny like most models, and
are actually successful at what they do. It made the brand
look more appealing to us.
3)
Choosing the elements for the promotion
mix of Avon
The Secondary objectives are as equally important as the primary ones but are all about the development
of the promotional mix and what the idea behind each of
them is. Specific steps into each element and how they’re
going to be achieved.
2.
Copy Platform
•
Basic problem: Avon is no longer the company
it used to be; therefore it has lost its brand equity. Since
its diversification, Avon has been down 14%.xiii The main
focus of the advertising is to reposition the company
and help it regain its image as a cosmetic and skincare
company as well as “THE company for women” and to
ultimately increase the company’s revenue. By focusing
on cosmetics and skincare, the company will be able to
properly cater to their target market and concentrate on
what makes their brand unique and successfully stand out
among the clutter of cosmetic companies.
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•
Advertising
and
communications
objectives: Foote Cone & Belding grid – High
involvement/feeling. We still be taking the affective
strategy towards our campaign, hence our advertising will
stress psychological and emotional motives (ie. Building
self-esteem and enhancing one’s self-image by using
these products, which will result in having beautiful skin)
but we will also be incorporating some elements of the
low-involvement strategies. The promotion mix used for
this campaign will include advertising, sales promotion,
internet interactive and direct marketing.
•
Target audience: Women in their teen to
30’s, looking and feeling beautiful is of big importance,
not willing to pay high prices for cosmetics but looking
for high quality products, busy women who don’t have
time to scope out every brand and compare them all
(direct marketing will be key to give them a personalized
experience and let them know what will work best for
them), looking for a brand that is fresh and can offer them
what their skin needs.
•
Major selling idea: The “creating a brand
image” approach will be used for the major selling idea
of this campaign. Avon already uses image advertising by
incorporating celebrity spokeswomen in their campaigns,
which is something we will continue to do as well as give
their brand a more youthful and modern look. We will
also incorporate the position approach and advertise
specifically to our target market. Avon will position itself
properly to stay true to its “the company for women”
tagline. Although Avon is more or less designed for
women of all ages, it will be given a younger feel to attract
young adults (high school seniors to women working their
first “real” job) who are major consumers, especially of
beauty products, but don’t necessarily have a large budget
for such items.
•
Creative strategy statement: To increase
brand likeability among women aged between 16 and 30,
as well as older women by branding Avon as an affordable
luxury to treat yourself to after a long hard day of work.
•
Supporting information and requirements:
The appeal for this brand is both emotional and rational.
The need to feel beautiful falls on the emotional side,
however, most women consider beauty products an
essential and buy face washes, mascaras, creams, etc,
as they would toothpaste and floss, which falls on the
rational side. Even in a time of recession, beauty product
sales have risen 7.4%.xiv We would like to introduce Avon
products into pharmacies and make the products more of
a household item, for example, one that would be bought
on a regular basis such paper towels or dish soap. Even
though women may not be able to afford a new outfit or
a day at the spa, they can still get the same satisfaction
as they would out of those things through a new tube of
lipstick per se.
Promotion Mix
and new users. Also free discount coupons with any
purchase of an Avon product.
The promotion mix is a combination of the basic tools used to accomplish an organization’s communication objectives. It includes advertising, sales promotion, direct marketing, internet/ interactive marketing
personal selling and publicity / public relations. For
Avon we are only going to use four of these elements.
Below we will describe in detail what each element entitles.
•
In 1993 the Avon Breast Cancer Awareness
Crusade was first introduced. xvWorking with the YWCA,
National Alliance of Breast Cancer Organizations, the
Centers for Disease Control, and the National Cancer
Institute, the Crusade now raises money, runs education
programs, and offers early detection screening services
to women around the world. By organizing events to
raise awareness and raise money for their breast cancer
foundation Avon sends out a strong message, this is part
of their corporate advertising. Avon is a company that
is committed to the health and beauty of the woman
today, what better way to show it that supporting their
foundation and celebrating the essence of being a
woman. Events such as these are good because they
generate publicity, which is not a strategic part of the
promotional mix, but it works when companies host
events such as these.
•
Advertising: Advertising is very important
for Avon because it has a massive consumer market.
After all the research has been done on what the
target audience wants from this product the next
step would be narrowing down the main theme of
the advertising campaign. Since we decided that we
wanted to bring Avon back to its roots we thought
that re-introducing the
“ Just another Avon lady” slogan is perfect.
We could either use celebrities or models. Our
competitors have celebrities as spokes persons and
most of them are actresses, so in order to keep up
with competition a celebrity that fits the Avon profile
would be crucial.
•
The channels for our ad campaigns
would be magazines such as Instyle, Marie Claire,
Cosmopolitan and Glamour that target our selected
audience and TV commercials in stations like
Bravo, E! Entertainment and Oxygen, for example,
those are channels that broadcast shows seen by the
selected audience. It is also very important to give
the name Avon a new trademark style. Keeping the
same font but changing the color maybe to all white
with a black background to give it a new younger
feel. As we looked through some of the Avon ads we
saw that they had already used this style and it looked
sleek and fresh so we decided to reincorporate that
into the new ads. Also the whole vision is simple is
better, advertising the Avon ladies doing activities
that the everyday woman can identify with. For
example: sitting in a meeting, a lunch date with
friends, a powerful mother and a motivated teenager.
•
Sales promotion: This is a very important
aspect of the promotion mix. We thought that by
giving free samples in stores where Avon is sold, it
is a great opportunity to reach out to current users
•
A lot of women have never tried Avon and it is
important to get them informed on what our products
are. Reaching out to new stores is also important. Reevaluating our target audience also means moving our
products to stores where they shop. We thought that
because of the price range Avon should be placed in
the same stores as its competitors. Duane Reade, CVS,
Walgreens, and some department stores like Macys and
Nordstrom’s.
•
Events are also a great way to attract new
consumers and to engage with current ones. An Avon
show at the museum of media for example would be a
great way to show the brand and reintroduce it to its
consumers.
•
Internet interactive: Redesigning the
website is probably the most important element in
repositioning Avon’s identity. We spent at least 1 hour
navigating around the website, looking at their products,
the layouts and analyzing how much of a user-friendly
website it was. We found it to be very diversified. There
are several brands within the Avon Company and the
website itself suggests that the specific target segment,
is, well are women, children and men. We believe less
is more and simple is better. Also we thought of just
having some products that can only be sold online
therefore there would be three main gateways for Avon
products, website sales, representatives and stores.
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•
The Avon Lady: This will directly connect to
the brand image of Avon. The Avon Lady or the Avon
woman is an accomplished and complete woman. A
woman who has her life on track, who is healthy who
is friendly and who is hard working (in their household
or in the corporate scene) When Avon incorporated
the Avon ladies in their advertisements they used
woman who dilled these characteristics and therefore
it attracted women who had this characteristics or that
with Avon felt as is they would slowly start to have them.
The latest Avon lady was Reese Witherspoon, actress .
We plan to keep the same idea behind the Avon woman
and make the advertisements appeal to every woman
because after all Avon is THE company for women.
•
Hiring reputable graphic and web designers
to re-design the website is a key step. One of their
most profitable channels of sales is the Internet. Their
website needs to be simple and user-friendly. Sleek in
design, easy to navigate and show precise information
on each product. We would like to keep the option
of applying to be an Avon sales representative on the
website because this is a key element on what defines
Avon and a lot of women are interested on working
with the brand. One font should be used for the whole
website and placement of information needs to be re
organized. A website sometimes works as a business
card. They say you should never judge a book by
its cover but unfortunately a lot of people still do. A
website is part of the cover in the Avon book. It needs
to represent the brand and what it stands for.
•
Personal Selling: Avon is known as a “doorto-door” sales company . Some of their advertisings
have nothing to do with using their products but rather
reaching out to women who would like to become sales
representatives for Avon.
The guidelines are:
o
o
o
Make more money
Make your own hours
Work from home, work online
Any woman who is struggling to make ends
meet, or has to work from home would take this offer.
Avon created a strong brand reputation with personal
selling and it is part of what makes Avon, well, Avon.
We thought that by taking this away from the
promotional mix we would be taking away from the
roots of Avon and that is the opposite of what this
repositioning strategy entails. Repositioning Avon is
focusing its product category in cosmetics and skin care.
Reconstructing brand identity with their old slogan “Just
another Avon lady” and keeping their strong personal
selling division.
Objectives
•
•
•
•
Broadcast Media
Print Media
Direct Marketing
Public Relations
Strategies and Rationale
1. Broadcast media:
Avon’s new media channels include broadcast
media. Avon will run TV commercials to gain mass
coverage. This channel is risky as well because there is low
selectivity and a short message life. But if TV commercials
are aired showing what Avon representatives do and how
they sell Avon products, it is a positive opportunity for
recruiting women who are watching this channel and to
expose some of their products as well.
Nielsen Media Research1 estimates that nearly
280 million people age 2 or older live in the nations
112.8 million TV households, nearly 77% of who are 18
or older. Average prime TV shows would be an option
since they reach 5 million homes or more. For the TV
commercials for Avon we chose broadcast television and
we decided to go with ABC network, the reason being it
had the three most popular shows our target audience
would watch. Also these shows are shown in the evening
when our target audience is home from work and they
turn on the TV while they are cooking, doing laundry or
maybe just relaxing.
For the Ratings we used the Program Rating
formula where we divided the amount of viewers for each
program by the total number of households in the United
States.
ABC
Media
Objectives
2. Print media
Avon needs to include print media in their
advertising campaign because of its quality reproduction
advantage as well as segmentation and longevity benefits.4
Accordingly, Cosmopolitan magazine is Avon’s
best-suited media advertisement choice. Cosmopolitan
magazine are one of the only magazines whose readers
are a mean age of 30, which is our target consumers’
mean age. Cosmopolitan’s reader demographics also
correspond to our target market’s demographics. As the
table below show, the main readers of this magazine are
women (single or married) and women with children and
many are employed, which means they have money to
spend on goods for their own pleasure, like cosmetics. The
biggest reason for needing to advertise in Cosmopolitan
is its circulation rate. According to Cosmopolitan’s media
kit, Cosmopolitan is read by 2,900,000 people and has a
higher circulation rate then the most popular television
shows, as you can see from the following charts.5
(See following page for chart)
Print Media continued.
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4. Public Relations
For the purpose of public relations alongside
raising health awareness to consumers, Avon will host a
fundraising gala for its Walk for breast cancer foundation.
Not only will the gala raise money for breast cancer
patients but it will also celebrate being a woman. It is the
perfect setting to expose Avon’s new image focusing on
the woman only and celebrating with its guests the power
of femininity. For the fundraiser Ciprianis located on
Wall Street, will be the venue. The location was chosen
because it is considered a New York landmark located on
one of New York’s most famous streets. The building has
soaring marble columns, a 65-foot ceiling, and glorious
chandeliers. The services provided by Cipriani include
everything from lighting, video, decorations, seating
arrangements, catering services to waiters and valet. The
guest list will include: Avon company workers, New York
socialites, breast cancer patients that are funded by Avon,
all of Avon’s branch from the Walk for breast cancer
foundation, chosen press and celebrity spokespeople.
3. Direct Mail
Avon will send catalogues to all of their registered
consumers. The way that consumer’s data is accessed is
from their online registration at www.avon.com when
they are making online purchases with Avon and also with
clients that use Avon representatives for their purchases.
Some of the advantages of using direct mail are that,
there is a high selectivity range, there is a large amount
of content information in each catalogue and the reader
controls the exposure. Avon should use direct marketing to
maintain a strong brand image and costumer satisfaction
and increase likeability. The emotional appeal of the
traditional catalogue is greater than that of an online
catalogue also the life span of a catalogue is greater than
that of an online catalogue. If the catalogue has appeal
to it, it tends to compare to a magazine, which is retained
in the home longer than any other advertising medium, it
is generally referred to on several occasions6.
Facts on direct marketing7
Women buying over mail, phone or Internet = 53,741,000
Ages between the ages of 18-24 = 9,626,000
Ages between the ages of 25-34 = 17,847,000
Ages between the ages of 35-44 = 21,091,000
The advantage of having such a grand event at a
landmark like Ciprianis is that it quickly drives attention
from the press. Local news stations are always looking for
a new story and this event at such a scale will definitely
have most if not all of New York local stations covering
it. It is clear that the attendance at this particular event
expects to be entertained in a location that is known for its
service, style and cuisine, the very things that make us who
we are. You will recognize the quality and the attention to
detail that we give to each and every on one of our guests.
Therefore Avon expects most if not all of its guest list to
RSVP.
Public relations is an important aspect to this
advertising campaign since it has many advantages that
pertain to our media objective. PR is usually more credible
since the public doesn’t realize that the company has either
directly or indirectly paid for it. Another advantage of PR
is the avoidance of clutter since it is perceived as a news
item and image building, which will help Avon continue
to develop their positive image and strengthen that image
to increase likability.
Budget
13
Broadcast Budget
Dancing with the stars2: $204,806 per spot. If we
where to do a 10 commercial schedule it will equal
$2.04 million.
Desperate Housewives: $210,064.00 per spot. If
we where to do a 10 commercial schedule it will equal
$2.10 million.
The Bachelor: $165,857.00 per spot. If we where to
do a 10 commercial schedule it will equal $1.66 million.
Broadcast media budget:
$2.04 million + $2.10 million + $1.66 million. = $ 5.8
million
If we purchase Avon spots with these three programs we
will hit the highest number of viewers between the ages
of 18 – 49, which matches our Avon consumers. 3
Cost per Ratings Point
CPRP = Cost of Commercial Time
Program Rating
Dancing With the Stars = 204,806 = 11,506
17.8
Desperate Housewives = 210,064 = 11,670
18
The Bachelor = 165,857 = 12,470
13.3
Print Media Budget
Rates
For Avon media print advertisement we are going
to use a Full page advertisement with 4 colors which
totals $222,400. For the advertisement to run with
cosmopolitan for 12 months it would equal = $2.68
million.
CPT= cost of the ad space x 1,000
circulation
so, $222,400 = 0.076 x 1,000 = 76.68
2,900,000
Direct Mail Budget
For 2011, direct mail in the form of a catalogue = $15.6
million which only includes direct mail to consumers and
not to other businesses.
PR Budget
Deborah Mella, the director of sales offered Avon the
confidential price of $235.00 per person. This price is
inclusive of food, beverage, bartenders, captains, lounge
attendants, security, coat check and Cipriani Rentals.
This price is exclusive of service charge (23%), coat
check ($3.00pp), production (sound, light, and video...etc)
and sales tax (8.875%).
Total cost = price per person x number of persons
attending = $235.00 x 200 = $47, 000
Sample Media
Print Media
14
Public Relations Press Release
15
###
16
Broadcast Media
Woman sitting at her vanity,
Avon makeup lying around
(Product Placement)
Colleagues comment on how
fresh and well-rested she looks
Woman applies makeup and
begins to day dream
Woman “comes back to the real
world” and goes to work
Sources
i
Forbes. Cosmetics Stocks Will Make Your Eyeliner Run
http://blogs.forbes.com/greatspeculations/2010/10/01/cosmetics-stocks-will-make-your-eyelinerrun/?boxes=marketschannelnews
www.dsef.org/press/pdfs/avon_products.pdf
ii
History of 20th century fashion. Understanding cosmetics. http://www.digitalhistory.uh.edu/do_history/fashion/
Cosmetics/cosmetics.html
iii
iv
http://www.mfa.org.my/?franchise_directory:avon-cosmetic:Beauty_@_Health
v
Avon stock research report. http://www.wikiwealth.com/research:avp
vi
All Business. Avon to target teens. http://www.hoovers.com/company/Avon_Products_Inc/rfrhti-1-1njea3.html
vii
Sell Avon. http://www.youravon.com/REPSuite/become_a_rep.page?p=PSBRGGL&c=iProspect&s=PSBRGGL
Hoovers, Avons competitive landscape. http://www.hoovers.com/company/Avon_Products_Inc/rfrhti-1-1njea3.
html
viii
xi
x
Avon Products, Inc. www.dsef.org/press/pdfs/avon_products.pdf
Bloomberg news http://www.businessweek.com/magazine/content/07_11/b4025071.htm
xi
Avon website www.avon.com
xii
Corporate responsibility. http://responsibility.avoncompany.com/page-57-Customers
Forbes . Cosmetics Stocks Will Make Your Eyeliner Run.
http://blogs.forbes.com/greatspeculations/2010/10/01/cosmetics-stocks-will-make-your-eyelinerrun/?boxes=marketschannelnews
xiii
Women put on a brave new face for recession as make-up sales rise.
http://www.dailymail.co.uk/femail/beauty/article-1226206/Women-brave-face-recession-make-sales-rise.html
xiv
xv
Avon walk. http://www.avonwalk.org/
xvi
Buzznet. http://justjared.buzznet.com/2007/08/01/reese-witherspoon-avon/
xii
Bloomberg Business. http://www.businessweek.com/1999/99_44/b3653032.htm
TV by the numbers. Program Ratings and viewers. http://tvbythenumbers.zap2it.com/2007/11/18/desperatehousewives-ratings-2007-2008/1808
1
2
What a spot costs. www.adage.com
3
www.adage.com
4
Belch and Belch. Advertising and Promotion. Eighth edition. McGraw-Hill Irwin. New York. 2009.
5
www.cosmomediakit.com
6
Belch and Belch. Advertising and Promotion. Eighth edition. McGraw-Hill Irwin. New York. 2009.
7
Belch and Belch. Advertising and Promotion. Eighth edition. McGraw-Hill Irwin. New York. 2009.
AVON