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COURSE PROJECT ON

AVEDA
COURSE: MARKETING -522
PROF: KEVINANN KELSMARK
DATE: JUNE 23RD 2016

BY AMIT HIMANI

Introduction

Avedas mission is to care for the world we live, from the products we make
to the ways in which we give back to the society. All Aveda products are ecofriendly and are made from the herbal essence. Aveda also avoids using any
such kind of ingredients which are harmful for the society. In fact, they dont
even test their products on to the animals.

Aveda has been into the business for more than 35 years now and over the
years it has experienced a huge success. This brand has been investing a huge
amount of sum into its research and development to come up with new and
innovative product line which will help them to seek the attention from other
group of audience too

http://www.aveda.com/discover/index.tmpl#section=mission

https://www.aveda.com/media/pdf/ELC_corp_2014.pdf

What is the problem?

Over the years Aveda has become a successful business, starting with only one
shampoo and now selling a vast variety of not only hair care but also other beauty
products such as makeup, body lotion, perfume etc. The organization is now an
international chain with stores in America, Canada and even parts of Europe.
However, in order to retain its successful position, it is very important for the
organization to know what are their threats and how will they turn those threats
into opportunities and all its weakness into strength. In the current scenario one of
the most critical problem faced by Aveda is that it has a very limited audience or
market segment and how will they resolve this issue by framing a successful IMC
campaign.

http://www.aveda.com/media/ceres/2012/2673-007_CeresReport2012.pdf

IMC Objectives

Attract new customers

Who are we targeting?

Know what our target audience needs?

Create an irritable offer:

http://www.aveda.com/cms/offers/offers_landing.tmpl

http://theconsumerfactor.com/en/4-factors-influencing-consumer-behavior/

http://www.aveda.com/earthmonth/index.tmpl#event

Retain existing customers:

Loyalty points

Birthday rewards

Customer retention

http://www.aveda.com/pure_privilege/rewards.tmpl#/home/tier-7

http://www.aveda.com/pure_privilege/index.tmpl#birthday

Branding objective

Aveda has a tagline The Art and science of pure flower and plant essences which
means that their beauty products are alive with the life force of plants, and contain
pure essential oils, their solutions are so powerful that they call them
purescriptions.

Mission :Avedas mission is to care for the world and make the products which are
environmental friendly and this is what makes their brand unique from other
beauty brands.

http://www.aveda.com/discover/index.tmpl

http://www.aveda.jobs/aveda/our-history.html

Marketing objective

In order to capitalize on the different segments of Market, Aveda will create a


low price product line for the teenage group and come up with some new
product line that will easily attract Hispanic and African American customers.

Create new products

Better packaging

Develop marketing plan for 2016

Increase social media presence

Increase customer retention

Increase brand loyalty

Strength

Weakness

Opportunities

Threat

Good brand image

Unappealing products and packaging

Focus on new market segment

Monopolistic market

Eco- friendly

Market Analysis

Limited location

Increase social media presence Economic recession


and online marketing

S.W.O.T
Strong financials

Limited appeal to consumer

Improve packaging

Volatility and raw material


prices.

Reputable global brand

Safety and quality concerns

Educating customers

Decreasing revenue due to


the

high

tax

on

beauty

products in some states.


5

Services, products, education and Growth depended on new products

Create customer loyalty

Decline into personal care

training
6

Outplay

products.

Introduce new products

industry earning
7

Increase its global presence

Reduce

price

similar

quality

products
for

with

different

Continued..

http://www.aveda.com/product/5237/16611/Collections/Green-ScienceTM/Gr
een-Science-Firming-Eye-Creme/index.tmpl

http://kevinmurphy.com.au/products/

http://www.stylecraze.com/articles/neutral-hair-colour-guide-which-coloursuits-you-the-best/

Segmentation and Targeting

segmentation involves finding out what kind of customers with different


needs exist.

Niche marketing strategy by making eco-friendly products.

Successfully Capitalized Caucasian, Now targeting the middle class and upper
class African-American, Hispanic, teenagers and Mens too, by keeping in
mind the taste and preferences of this groups.

Mens Invati

New make-up line

Be-curly

Positioning:

Positioning

Positioning is arranging for a product to occupy a clear, distinctive, and


desirable place relative to competing products in the minds of target
consumers. How Aveda has managed to create its distinct image is by staying a
niche player typically in producing organic and eco-friendly toiletry products
which are less toxic than other toiletry brand.

Avedas slogan is the art and science of pure flower and plant essences.

Target the middle and upper class group who are willing to spend on quality
products

Kotler, Philip, Gary Armstrong. Principles of Marketing, 15th Edition. Pearson


Learning Solutions, 01/2013. VitalSource Bookshelf Online.
http://theconsumerfactor.com/en/4-factors-influencing-consumer-behavior/
http://www.mprnews.org/story/2007/12/20/aveda

Product/Service

Mens invati : Aveda introduced a new Invati line which is just for its male customers. This
product will help them to reduce their hair loss within 12 weeks. This has helped them to
seek attention of the male segments

Be-curly co-wash : New co-wash for soft and defined curl (African Americans).

Shampure Dry shampoo This is also a new addition into their product collection which is
targeting those womens who prefers not to wash her hair more often. (athletics,
gymnastics etc.)

http://www.aveda.com/product/5249/37298/Collections/ShampureTM/Shampure-Dry-Shamp
oo/index.tmpl
http://www.aveda.com/products/16897/Collections/invati-men/index.tmpl
http://www.aveda.com/index.tmpl

Marketing Channels:

Aveda sells its products principally to independent salons and spas,


cosmetology schools, third-party distributors and specialty retailers and
directly to consumers at their own freestanding Aveda Experience Centers and
certain Aveda Institutes

Expansion in manufacturing and distribution: Aveda IMC campaign included


to reduce the overhead and distribution cost by utilizing unused capacity at
the Aveda head quarter in Blaine, MN and at the distribution center in
California by leveraging Avedas experience in hair care and NOGS (natural,
organic, green and sustainable) manufacturing. Aveda will also benefit in its
cost of goods produced by transferring its hair color production which was
formerly produced in Blaine.

http://www.aveda.com/media/ceres/2012/2673-007_CeresReport2012.pdf

Communication strategy plan

Television: The Advertisement will try to make some emotional connection with their
target audience and also educate them why Aveda is better than other brands.

During the prime time the television ads could target around 20-30 million on a given
night

The Ad will be played throughout the June and July in the hope of reaching a new
audience.

http://adage.com/article/digitalnext/hispanic-viewers-univision/230429/

http://smallbusiness.chron.com/advantage-using-tv-radio-media-advertising-17673.ht
ml

http://www.hispanicmpr.com/resources/old-articles/scent-marketing-connects-to-hispa
nics-on-a-deep-cultural-level/

Internet:

website: Avedas official website www.aveda.com looks good but not as great
as their competitors like Kevin murphy www.kevinmurphy.com whose official
website looks so new, colorful and appealing, therefore it is very important
that Aveda needs to first re-design its website to make it look even more
appealing.

social media: Aveda needs to become more active on social media networks
like Facebook, twitter, Instagram, YouTube etc.

Launching new products on to YouTube and Facebook has been very effective
in driving up the sales.

The analysis shows that the paid social media has given more response to the
audience to subscribe for the hair/beauty products

https://www.facebook.com/Aveda/

http://www.aveda.com/cms/offers/offers_landing.tmpl

Direct marketing

Give away Free gift vouchers to their pure privilege customers.(through


email and post cards)

Conducting surveys at the department store like Macys, Dillard's and Target.

Organize earth month event.

http://www.aveda.com/pure_privilege/index.tmpl#offers

http://fortune.com/2015/04/17/macys-diversity-hispanic-consumers/

Sales promotion:
Aveda attracts more audience with its exciting everyday offers and salon and store
promotion.

Sign up and get a free welcome gift

Get free shipping and 4-piece summer sample with $30 purchase.

Earn 300 points with purchase of its full size products.

Promoting on the popular magazine and newspapers too such as Seventeen


magazine, Teen vogue, Glamour and local newspapers this help to cover each and
every segment of our target audience

http://www.aveda.com/earthmonth/index.tmpl#event

http://www.nerolispa.com/mothers-day-neroli-free-stress-fix-bath-salts-150-giftcard/

http://www.aveda.com/cms/offers/offers_landing.tmp

http://www.glamour.com/story/advertise-with-us

Budget evaluation
Mediums/objectives

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Seventeen

168k

168k

168k

168k

168k

168k

Teen vogue

76k

76k

76k

76k

76k

76k

Glamour

140k

140k

140k

140k

140k

140k

Facebook

100k

100k

100k

100k

100k

100k

Youtube

70k

70k

70k

70k

70k

70k

Total per month

554k

Budget

$3350000

Actual

$3324000

Budget evaluation

http://www.condenastinternational.com/media-kits-rate-cards/

http://www.seventeenmediakit.com/r5/showkiosk.asp?listing_id=4924488&ca
tegory_id=31772

http://www.pennapowers.com/how-much-do-ads-on-youtube-cost/

Conclusion:

Aveda is an organization that believes being economically as well as socially


responsible creates a profitable and sustainable business. They have shown
time and again that their success is largely contributed to their focus on
charitable organizations. Aveda has grown from a small company to a large,
international chain of businesses over a matter of years. Though their
business has prospered greatly and has become very profitable, there are a
few weaknesses which enable other hair salons to remain competitors:
Aveda's high prices attract few but loyal customers which allows the more
affordable salons to cater to customers who are unwilling to buy Aveda's
expensive products.

Reference

http://smallbusiness.chron.com/ways-increase-product-demand-60210.html

http://theconsumerfactor.com/en/4-factors-influencing-consumer-behavior/

http://www.seventeen.com/beauty/a7964/aveda-gets-greener/
https://www.aveda.co.uk/media/pdf/Aveda_IngredientFAQ-0513.pdf

http://www.mprnews.org/story/2007/12/20/aveda

http://kevinmurphy.com.au/products/

http://www.in-cosmetics.com/in-cosmetics-blog/GreenGlassCeiling/

Kotler, Philip, Gary Armstrong. Principles of Marketing, 15th Edition. Pearson Learning
Solutions, 01/2013. VitalSource Bookshelf Online

http://www.seventeen.com/

www.aveda.com
http://www.aveda.com/media/ceres/2012/2673-007_CeresReport2012.pdf