Avon Company, Essay Example

In the first period which spans from March 1^st, 2014 to March 19^th, 2014, money matters are scheduled. Money will be required in order to develop a customer base of Chinese consumers. This is the most important aspect of the Avonintroduction into china. The cosmetics industry is less developed in China than it is in other Asian nations. Chinese consume cosmetics for a variety of reasons. One of the reasons is perceptions fashion and luxury. Specific market segments must be targeted. This endeavor will require market research and advertising (El- Hadj Ben Brahim et al., 2011; Pang et al., 2009).

• Money- 41710 would be needed in order to initiate Avon’s China office.
• Research and Development – 41734 would be needed for research and development.
• People- 41790 would be needed in order to procure personnel.
• Training- 41728 would be required in order to train the personnel.
• Space- 41734 would be needed in order to procure space.
• Equipment- 41740 would be needed in order to acquire equipment for Avon’s China office.
• Inventory- 41770 would be required for inventory.
• Manufacturing- 41800 would be required for manufacturing.
• Product testing- 41809 would be required for product testing.
• Product promotion- 41810 would be needed for product promotion
• Product launch- The total required in order to launch the new Avon product in the Chinese market would be 417, 725.

In the sixty day period of market research and development which is scheduled to take place between April 1^st and June 1^st, 2014, the market research which must be conducted with regards to the Avon introduction into the Chinese cosmetics market must be formulated. This is another important endeavor. The market research which must be conducted with regards to the Chinese cosmetics consumer market is based upon targeted advertising to a specific market segment in order to enhance the rational and emotional attraction of Avon products (Yen & Lin, 2010). The aspects of random advertising in comparison to targeted advertising must be conducted. The competitors’ products (i.e., Mary Kay cosmetics and Sally dot cosmetics) may create Nash equilibrium with regards to the market segment (El- Hadj Ben Brahim et al., 2011; Pang et al., 2009).

The aspects of the people who will represent Avon products in China will be the researched from April 15^th, 2014 to April 29^th 2014. The training which the representatives must comprehend and complete will be conducted from April 15^th, 2014 to April 30^th, 2014. The aspects of space will be researched from March 15, 2014 to March 29^th, 2014. Inventory research will occur between March 15^th and March 29^th, 2014.  The manufacturing research activities will take place form April 11^th to May 10^th, 2014. The same time the product testing will take place from May 10^th to June 10^th, 2014.  The product promotion will take place from June 11^th to June 17^th, 2014. The product launch will occur on June 11^th 2014.

The Avon introduction in the Chinese market may wish to review the study of the introduction of the L’Oreal cosmetics company into the Chinese female cosmetics consumer market. This is a successful marketing pattern which should be followed by Avon in entering the Chinese female cosmetics market. L’ Oreal initiated its presentation into the Chinese female consumer cosmetics market in 1996. Five years later, L’ Oreal acquired two Chinese cosmetics brands. The acquisition of these two Chinese cosmetics brands delegated L’Oreal access in the tier two and tier three municipalities in China.

L’ Oreal made the decision of entering the Chinese female cosmetics market by concentrating on developing a Chinese client base of cosmetics and not shampoos. Eventually, L’Oreal was able to manufacture its products in china and export to Taiwan, Southeastern Asia, Korea and Japan. Avon should consider basing its entry into the Chinese market upon the successful marketing efforts of L’Oreal in China. Research has demonstrated that the Chinese cosmetics consumer market represented the seventh largest cosmetics market in the world (ICMR, 2013).

Conclusion

The aspect of establishing a market presence in the Chinese female cosmetics market is a challenge in which Avon has the capacity of success. Avon requires the review of prior models in order to effectively formulate a market entry and penetration plan.

References

El – Hadj Ben Brahim, N., Lahmendi- Aved, R., & Lauset, D. (2011). Is targeted advertising always beneficial? International Journal of Industrial Organization,        29(6): 678- 689.

ICMR (2013). L’Oreal in China Working Paper 309-191-1. International Center for Management Research.

Pang, J., Keh, H. T., & Peng, S. (2009). Effects of advertising strategy on consumer based brand relationships: A brand love perspective. Frontiers of Business Research in China, 3(4): 599- 620.

Yeh, J- T., & Lin, C- L. (2010). Measuring the effectiveness of advertising sent by mobile phone: Implications of the appeal, endorser and involvement model of purchasing behavior. Social Behavior and Personality, 38(2): 249- 256.