Marketing plan: Avon and Mattel Inc

Résumé du document

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.

Extraits

[...] We can resume this case as being the Mattel and Avon's bet. In fact the core products of Mattel and Avon are respectively dolls and cosmetics / fragrances, 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. [...]

[...] In fact the size of Chinese market and its potential. Are really a good motivation especially because the Barbie doll might really meet the local customers' needs. But they have to be approached by the good way. Thanks to its alliance with Avon, Mattel is able to penetrate the Chinese market. Learning from Avon's experiences and because Avon have already deal with Chinese government, Mattel gain a competitive advantage on its competitors. In long term, it will definitively grow a synergy between the two actors. [...]

[...] But when Jung took over as CEO in 1999, she gave the company an extreme makeover, pouring millions into research and development, pushing new lines of skin cream, expanding into overseas markets and developing snazzy ads with celebrities like Salma Hayek. Today the Five Values of Avon are: Trust, Respect, Belief, Humility, and Integrity Avon's Principles - To provide individuals an opportunity to earn in support of their well- being and happiness. - To serve families throughout the world with products of the highest quality backed by a guarantee of satisfaction. - To render a service to customers that is outstanding in its helpfulness and courtesy. [...]

[...] Marketing Plan Avon™ Lady® & Mattel®, Inc. Barbie Table of contents 1. Executive Summary 2. Company description 3. Strategic Focus and Plan 4. Situation Analysis 5. Product-Market Focus 6. Marketing program 7. Conclusion Executive Summary With this plan we will high light how Mattel and its well-known icon, Barbie tried to get a foothold on the Chinese market since 1998 by using a well known company: Avon. This situation is called a piggy - back, this illustrate how a company as Mattel, wants to sell its products trough the channel distribution of another company here Avon. [...]

[...] The exceptional performance of Avon's company in 2004 was once again fuelled by four growth strategies that are the hallmarks of Avon's continuing: Global Beauty, Global Expansion, Global Opportunity and Global Supply Chain. Competitors analysis There are a lot of competitors. Both companies have to face strong competitors on their respective markets (toys and cosmetics / beauty products). Toys : Hasbro, Bandaï, Lansay, Berchet Cosmetics / Beauty products : L'Oréal, Henkel, P&G But we must keep in mind that Mattel is the leader on its market. [...]