Name: Abdullah Al-Shuraim ID: 0804461 Group: S3G7 Instructor: Brian Thompson Contents * Executive Summary:3 * Overview of non-food Halal product:11 * Overview of Avon Cosmetics Company:13 * Avon Products:15 * Some of Avon Products:16 * Potential Product Summary20 * Process for Halal Certification21 * The procedure to make it a Halal Product is:22 * The procedure of Halal Certificate:23 Changes or Improvements for Launching Halal Product24 * Define three different market segment for Kuwait market place25 * Mission & Vision and How might be affected by new Halal Product:28 * Providing the same quality of service to existing customers30 * Major Promotional Activities & RMOI:32 * One Year Budget and ROI:36 * Competitors:39 * Communicating the changes in the Current Operations with Introduction of Halal Product:41 * Recommendation:42 * References:43 Executive Summary: 1. Avon Overview:
Avon is a very successful and leading global company in the cosmetics industry. It was founded in 1886 by Mr.
McConnell. When Mr. McConnell was selling books he used to make his own perfumes and he used to give them to his customers, then he realized that the customers likes his perfume and it was one of the reasons why they are buying his books, so he decided to make his own cosmetics company and now Avon is one of the best cosmetics company in the world. Avon Company was renamed after a river that runs through the English midlands.
Avon CEO is Andrea Jung who committed to make Avon the most wanted company by women and also to satisfy the need of women globally. The main product are beauty products and fashion jewelry and also Avon has many brands that comes under the name of Avon such as Avon color, anew, Advance techniques, skin-so-soft, Avon naturals and Mark. Avon is the faster growing market on China and Russia which means they are doing a good and successful business. 2. Recommendation of Halal Product in Kuwait market Launching Halal product in Kuwait will be a very successful idea because of many reasons. . Kuwait is an Islamic Market b. Kuwaitis always seeks for Halal product and they are loyal to this type of products c. Kuwait is a trendy market which means word of mouth might make the company one of the biggest company I Kuwait market and by launching Halal product that will be a good reason to make people in Kuwait talk about your products and that will help us to sell more, increase product awareness and get the market attention 3. Who are the three market segments? A. Demographic: Age| 18 – 30| Gender| Females| Income| Above 500 K. D| Religion| Muslims| B. Psychographic:
We will be focusing on the interest because women who are interested to attend social meeting and family gathering which are a very important part in our society will be more likely to buy make up because this type of women use it more than others. Also we will be focusing on the opinion because we don’t sell only cosmetics, we sell Halal cosmetics and that might make a difference on people who thinks and believe that Halal product are better than other regular product and we will be focusing on this type of women because they care about the ingredients and how did we make our products.
C. Behavioral: We will be focusing on the usage rate because women who use makeup and cosmetics more than other because they have more occasions so these will be focused on and also brand loyalty because there are some women when they like a certain brand of makeup they don’t tend to change it and they became loyal to this brand and this type of women who we are looking for.
Also Occasions is one of the important parts of behavioral segment because there are women who don’t use make unless they have an occasion and this type we can satisfy them by offering them promotions for a whole set of cosmetics and they will have the opportunity to buy it and keep it till they use it. 4. What changes and improvement to current organization with launching new Halal product A. Kuwaitis have their own taste in some of the fragrances and perfumes and adding “Bokhor” smell to the fragrances and perfumes will a very good step in Kuwait Market. B.
Also since our products are Halal product we might add some “Henna” which is a planet with a nice smell and Kuwaitis also put “Henna” on their hairs often and they believe that it helps the hair to be stronger, better smelling and shiny. C. We must create a website in Arabic so customers can read all of the ingredients and what are our products made of in Arabic so they can trust us and feel safe. D. We will use some Kuwaitis celebrities to represent our makeup and do some commercials for us. E. Customer Service is a very important thing that we have to look after and we will be collecting our customer’s Mobile number r emails so we can inform them if we have any promotions or discounts. F. Since we will be doing some commercials and advertisement for our new Halal product we must have an Arabic advertisement and also an English advertisement. G. We will be publishing flyers that shows how Halal cosmetics are better than regular cosmetics to increase the target market awareness. H. To ensure that the team or the employees are working affectively we will set a commission for each clerk so we can encourage them to work better. 5. ROI and ROMI for new Halal product ROMI: Promotion Method| Promotion Budget|
Events Promotions| 5,200 K. D| Media Promotions| 2,600 K. D| Internet Promotions | 750 K. D| Total| 8,550 K. D| Return On Marketing Investment| 17,100 K. D| As we can see the table shows each promotion method budget and also it shows the total budget for the Marketing plan in 8 months including the two pre launch months. It also shows you that the ROMI is 17,100 K. D because what are we planning for is in every 1 K. D we pay for promotions we want to get 2 K. D for example, When we budgeted 5,200 K. D in the Event promotions we want to make sales of 10,400 K. D and we did that because after making sales of 10,400 K.
D we have to pay all of our expenses and we will have the rest as a profit. The best way to make sure that you are making profit is to make sure that the ROMI is 50% or above. ROI: Sales| 133,000 K. D| | COGS| 80,000 K. D| | | | 53,000 K. D| Gross Profit| 53,000 K. D| | Expenses: * Sales Expenses: 13,700 * Operation Expenses: 6,000 * Financial Expenses 5,000| 24,700 K. D | | Net Profit| | 28,300 K. D| This table shows the sales we make for a period of 14 months, how much did we pay for the goods or product we sell and it shows what expenses did we have and how much each one of them cost us.
Also as you can see it tells us how much profit we make over one year. We calculate that by taking how much sales we made minis how much did we pay for the product we sells and then we will get the Gross profit. Then we take the Gross Profit minis Total Expenses and we will get the Net Profit which means the money we make over a period of time which is in our case 14 month. 6. Promotional Activities of New Halal product Main Promotional Activities: Event | October| November| December| January| February| March| April| May| Cost| Exhibitions in Mall| | | | | | | | | 3,200 K. D|
Trade Show| | | | | | | | | 2,000 K. D| Media | October| November| December| January| February| March| April| May| Cost| Catalogs | | | | | | | | | 400 K. D| Magazines| | | | | | | | | 600 K. D| Radio| | | | | | | | | 1,200 K. D| Flyers| | | | | | | | | 400 K. D| Internet | October| November| December| January| February| March| April| May| Cost| Social Network| | | | | | | | | 600 K. D| Blogs| | | | | | | | | 150 K. D| One year Promotional Activities: 7. Who and How you will communicate the changes in the company When any company introduce new product there will be many changes in the organization.
The successful companies are the companies that focus on the new product and also they still focus on the old product and they know how to communicate the changes that happens to the current operation in the organization. For our company we will have 5 main steps to be able to communicate the changes. Who? 1. Employees 2. Management 3. Board of Directors 4. Clients or customers if necessary How? 1. We must communicate through many channels such as writing, intranet of the organization and training and explain more about the change 2. We have to give enough time for people to ask question and know more about the change 3.
We have to clearly explain the Vision, Mission and the objectives of our company 4. Explain the reason of the change clearly and what that might benefit the company and the clients Overview of non-food Halal product: Halal has become a very famous word specially for food industry, Hala could extends non-food products such as personal care, cosmetic, pharmaceutical and other consumers goods. Halal is an Arabic word, meaning lawful, and is the Islamic dietary law that identifies food permitted for Muslims. Non-halal is also referred to in Arabic as Haram (meaning not permissible).
Halal word comes from Al. Shareyah law or the religion law. Halal in general means that the food is clean, safe and good quality. In Islam everything is Halal except the harmful things and things that might harm. Also in Islam any food or drink comes in the middle area between halal and haram it’s called ‘Shobha’ and Muslims should avoid consuming Shobha foods and drinks until the label of the food or drink becomes clear. In Malaysia, the definition of halal food is provided by the Malaysian and they have standards of halal food such as storing, handling, ingredients and production.
Why does halal products and food are so famous nowadays even in the non-Muslim countries? The answer is because Muslims are all over the world there are Muslims everywhere and they considered a large segment of target market and if we could produce a product that may attract all of the Muslims in one spot to my product that will be a very big success to any company and that what many companies tried to do and now it become a very successful business and Halal is recognized world-wide. Kuwait is an Islamic country and it follows the Quran and Shariyah law which means that non-halal products are not allowed in Kuwait.
In order to import goods such as personal care, cosmetic, pharmaceutical and other consumer’s goods it should be halal according to the law in Kuwait and Shariyah law. Now cosmetics industry is getting bigger and they are making a very good business in all over the world. And also because people in all over the world have become a very specific about the cosmetics ingredients and caring more about what are they made of, we must come up with a very good solution that insure the customer a better cosmetics ingredients and could attract more consumers to the product and increase the market share and be more widely.
Overview of Avon Cosmetics Company: Avon is a leading global company was founded in1886. Avon caters to the cosmetics demand of women across all over the world. Avon Company follows a certain marketing policy in over than 130 countries through million of Avon representatives. Avon has a unique line of cosmetics product. Most of these products include fashion jewelry, apparel, and beauty product. The well recognized brands launched by Avon are Avon color, anew, Advance techniques, skin-so-soft, Avon naturals, and mark the company has its presence in over 135 countries.
It is the faster growing market in china and Russia. Almost all the products are sold to the retail stores. The skin care product line comprises bath and skin lotions, anti-aging cream, perfumes, lipstick, only to name few. Avon is one of the best cosmetics company in the world with over $6 billion in annual revenue. When the company began it began as the California Perfume Company. The founder of Avon cosmetics Company is Mr. David McConnell. He discovers that people were buying his books because he was giving them a rose oil perfumes. In 1939, Avon was renamed after a river that runs through he English midlands. Avon produces makeup, bath and skin lotions, anti-aging cream, perfumes, jewelry, clothing, cosmetics and toys. Now Avon products are sold in over 135 countries all over the world.
The main target for Avon is women, but even though now they are manufacturing product for children. Although Avon products are sold in shops and retails outlets, but many of them are also sold by being marketed as door to door through “Avon Ladies” or Avon Representatives. The company chairman and CEO is Andrea Jung, who was promoted to this position in 1999. Avon Strength and weaknesses: * Strength: * It gains a huge profit every year That tells us that Avon is a very successful company and there are many demands on its product * Avon is one of the best names in Cosmetics Industry. Avon is the fastest growing market in China and Russia and that tells us that Avon is one of the best names in Cosmetics Industry.
* Avon company has a very successful history Avon was founded in 1886 and they’re still doing business which means they have a very great history and that what makes them still doing business. Avon Cosmetics are high quality cosmetics with a possible price Avon has a big responsibility towards the clients because Avon promised that they will provide the best cosmetics with a very high quality and that consider as a strength and also what makes it better that the price is not expensive. * Avon has a very good reputation in the market. Avon is a well-known company world-wide and it’s a very famous company as we mentioned before its revenue reaches $6billions annually. * Weaknesses: * Avon Fake Product Many companies are selling fake product and pretending that they represent Avon * Internal Operating problems:
There was many compliant about Avon because of the Internal operating problems such as order were taken, but not filled, packaging wasn’t enough also the internet wasn’t used as a marketing and selling tool since Andrea Jung changes all the problems and fixed them, however there are few things must be fix ed. * Old Product: Even though Avon are developing new products every year, but there are still product that Avon produce and no one want to buy them and there are some studies that tells us that these old product are causing a loss in the profit because of the wasted money that are spent on the marketing, packaging and buying the supplies . Few Product Variety: As we can see most of the companies that comes to the industry after Avon such as Unilever, and Procter are offering a variety of product, while Avon has a focused product line and they are over focusing on it. Avon Products: Avon cosmetics are famous and they have achieved the bestseller in many countries over the world. Avon products are available in many countries and in many shops in more 130 countries all over the world. The ingredients that Avon uses in their product are high quality ingredients and also they have committed to provide Avon clients the best product in the market.
Avon believes that all the women in the world deserve the best quality and the best cosmetics product and that what Avon is looking for. Since Avon is a women company as they name their self we believe that their product are meant to be for women and their product is exactly what women all over the world is looking for. Avon has many products and many products line, they have lips, eyes, nail and face cosmetics and also they have beauty tools and beauty gift sets. However, Avon has many brands of their product such as, Anew Beauty, Avon Color, Extra Lasting, Healthy Makeup, Ideal Shade, Jillian Dempsey, Nail
Expert, Perfect Wear and Smooth Minerals. What makes Avon a very special cosmetics company is that Avon has many healthy product and they are also care about the health so Avon is a part of Breast Cancer Crusade and also Avon is against the domestic violence. The people who sells Avon products or Avon representatives are trained very well to know all the ingredients of each product that Avon sells and they have a good products knowledge, so when a customer ask any question or need a recommendations Avon representatives will be more than happy to help him and guide him to the best cosmetics on the planet.
Some of Avon Products: The Product Name| Price| Description| Ingredients| Colors| Picture| ANEW Age-Transforming Compact Makeup| $15. 00| With 4D Wrinkles Reverse Technology. Skin looks younger, even after you take makeup off. Minimizes fine lines, wrinkles and age spots. Water-based for ultra-fresh feel. Natural radiant finish. Medium coverage. | WATER COCOS NUCIFERA (COCONUT) FRUIT JUICE OLEA EUROPAEA (OLIVE) LEAF FRUIT EXTRACT BENZYL ALCOHOL NYLON-12 DIMETHICONOL GLUCOSAMINE HCL ALUMINUM DIMYRISTATE TITANIUM DIOXIDE/CI 77891 MICA/CI 77019 IRON OXIDES| | |
The Product Name| Price| Description| Ingredients| Colors| Picture| Healthy Makeup Concealer| $8. 00| Radiant color makes your entire look come alive. Healthy Makeup is infused with skin-loving nutrients. | WATER/EAU CYCLOPENTASILOXANE TRIOXAUNDECANEDIOIC ACID PHENYL TRIMETHICONE DIMETHICONE GLYCERIN SODIUM CHLORIDE SORBITAN SESQUIOLEATE ETHYLHEXYL METHOXYCINNAMATE GLYCERYL BEHENATE PEG/PPG-18/18 DIMETHICONE DISTEARDIMONIUM HECTORITE OLEA EUROPAEA (OLIVE) LEAF EXTRACT PYRUS MALUS (APPLE) ROOT EXTRACT PUNICA GRANATUM FRUIT JUICE | | |
The Product Name| Price| Description| Ingredients| Colors| Picture| Healthy Makeup Lip Conditioner| $3. 0| Healthy makeup The essence of a beautiful look. A fresh face. Vibrant eyes. Rosy lips. It lets your natural radiance shine through and your true beauty come alive. To your skin’s health and radiant beauty Jillian Dempsey, Avon Global Creative Color Director & Hollywood Makeup Artist| Active IngredientOctinoxate 7. 5% Other Ingredient: DIISOSTEARYL FUMARATE BARIUM SULFATE SQUALANE POLYBUTENE OZOKERITE MICROCRYSTALLINE WAX/CIRE MICROCRISTALLINE DI-C12-15 ALKYL FUMARATE POLYETHYLENE ZEA MAYS (CORN) STARCH CETYL ALCOHOL PETROLATUM PUNICA GRANATUM FRUIT JUICE GLYCINE SOJA (SOYBEAN) OIL
OLEA EUROPAEA (OLIVE) LEAF EXTRACT ALOE BARBADENSIS LEAF EXTRACT RETINOL COLLAGEN | | | The Product Name| Price| Description| Ingredients| Colors| Picture| Healthy Makeup Lipstick| $9. 00| Healthy makeup…the essence of a beautiful look. A fresh face. Vibrant eyes. Rosy lips. It lets your natural radiance shine through…and your true beauty come alive. | Active Ingredient: OCTINOXATE 7. 5% Other Ingredients: DIISOSTEARYL FUMARATE SQUALANE POLYBUTENE BARIUM SULFATE OZOKERITE MICROCRYSTALLINE WAX/CIRE MICROCRISTALLINE DI-C12-15 ALKYL FUMARATE POLYETHYLENE ZEA MAYS (CORN) STARCH CETYL ALCOHOL
PETROLATUM | | | The Product Name| Price| Description| Ingredients| Colors| Picture| AVON PRO Color and Gloss Lip Duo| $10. 00| Luscious shine wrapped in rich color. Lipstick on the outside, lip gloss on the inside. Wear each alone or both together…3 looks in one! Multi-dimensional color and shine. Lips look and feel moisturized. Lipstick, . 07 oz. net wt. Lip Gloss| LIPSTICK: RICINUS COMMUNIS (CASTOR) SEED OIL POLYGLYCERYL-2 DIISOSTEARATE SQUALANE GLYCERYL TRIACETYL HYDROXYSTEARATE MYRISTYL LACTATE OZOKERITE MICROCRYSTALLINE WAX/CIRE MICROCRISTALLINE LIPGLOSS: DIISOSTEARYL FUMARATE
TRIISOSTEARYL TRILINOLEATE TRIISOSTEAROYL POLYGLYCERYL-3 DIMER DILINOLEATE POLYGLYCERYL-2 DIISOSTEARATE/IPDI COPOLYMER SUCROSE ACETATE ISOBUTYRATE VP/HEXADECENE COPOLYMER BIS-STEARYL CAPRYLYL GLYCOL | | | Potential Product Summary After studying the market in Kuwait and studied the product of Avon we decided that the products we want to bring to Kuwait are lipsticks and lip treatment products. This type of product has a very big demand in the world especially in the Middle East. A study in 1937 survey revealed that over 50% of teenage girls fought with their parents over lipstick.
This means that lipsticks have been a very good product for the companies to sell since lipsticks has a strong demand in all over the world. Even in Kuwait, after we studied the market in Kuwait we found that most of the women and girls buy lipstick and they prefer to buy lipstick more than buying any other cosmetics. During the Islamic Golden Age the notable Arab Andalusian cosmetologist Abu al-Qasim al-Zahrawi invented solid lipsticks, which were perfumed sticks rolled and pressed in special molds, and he described them in his Al-Tasrif. That shows us the importance of the rouge and lipsticks in the Arabian Culture.
Also after studying the market in Kuwait and the demand of the lipsticks we found that the ages who uses lipstick are from 13-35 years old which means a bigger target market for us and this is a very good number and if we succeeded in getting 20% of the market interesting in our product we will be making a very good sales and making a good number of revenue. Also one of the reasons why did we choose lipsticks is that lipsticks are used everyday not like other cosmetics and make up which are used in a special occasion and that increases the demand of lipsticks in the country pecially in Kuwait because most of the girls and women here they don’t get out of the house unless they have some make up on which shows you the importance of the makeup and cosmetics in Kuwait Market. The last reason why we choose lipsticks and lips treatment product is that Avon Company has many types of lipsticks and many varieties of lipsticks. That’s an advantage for us because we will bring many types of lipsticks so we can satisfy all the needs and wants of the customers who wants lipsticks and we can offer them more than one type.
Also we will be bringing eyes products such as eye liner, mascara and eye shadow. These products also have a strong demand in Kuwait market and the eye product is as much important as the lips products. That’s not all, we will also bring some make up special product such as foundation which is so important in Kuwait market since the women use it a lot for wedding and other occasions and also blush because it’s also used in the same occasions and even more. In Kuwait Kuwaitis care about perfumes and fragrances so much and I believe that bringing this product to Kuwait market will be the best choice as a beginning.
After we launch these products we will be launching more products such as bath and body product, skin care products and hair care products. Process for Halal Certification Even though there is a long hard procedure to follow in terms to certificate your product as a halal product, but it worth it. First of all since we are going to sell our product in Kuwait and Kuwait is an Islamic country we have to sell a halal product and we can’t sell anything that has“haram” ingredients. Also to have a halal product, this will improve the brand image in the market and internationally.
Also Halal certificate will help us exploring the cross border trade opportunities and it could obtain us the advantage to be better than our competitors and have a competitor advantage. Halal certificate also will help us attracting more customers not only in Kuwait, but internationally also and Halal insignia is a trustworthy and autonomous and dependable. The procedure to make it a Halal Product is: First of all no food served inside the factory to make sure that the factory is always clean.
Second, only Halal Ingredient should be in the product and there are no “Haram” ingredients in it. To make the product Halal it should be: * Free from Alcohol or wine for food. * If it’s not food the alcohol content in the finished product must be less than 0. 5%, but it is better to keep it less than 0. 01%. * Free from filth * Free from animal part, except what has been approved as “Halal”. * Free from animal fat such as, enzyme, emulsifier and other fats except what is “Halal”. * Free from pork or dog
This table shows the Halal and Haram ingredients and also it shows “Mashbooh” ingredients which mean it is not clear yet if it’s Halal or Haram, but it would be better if we did not use it. Ingredient| Status| Ingredient| Status| Alcohol| Haram| Hydrolysed Animal Protein| Mashbooh| Ammonium Chloride | Halal| Lard| Haram| Animal Fat | Haram| Leavenings| Halal| Animal Shortening | Haram| Lecithin (commercial) | Halal| Ascorbic Acid | Halal| Malt| Halal| Bacon (Pork) | Haram| Molasses| Halal| BHT| Halal| Monoglycerides| Mashbooh|
Cholesterol| Mashbooh| Oxalic Acid | Halal| Collagen (Pork)| Haram| Partially Hydrogenated Vegetable Oil | Halal| Dextrin / Dextrose | Halal| Pepsin| Mashbooh| Dicalcium Phosphate | Halal| Phospholipid| Mashbooh| Diglyceride| Mashbooh| Phosphoric Acid | Halal| Diglyceride (Plant) | Halal| Pork| Haram| Enzyme| Mashbooh| Potassium Bromade| Halal| Ergocalciferol| Halal| Potassium Citrate | Mashbooh| Ethoxylated Mono/ Di Glyceride | Mashbooh| Propionic Acid | Halal| Fatty Acid | Mashbooh| Renin / Rennet | Mashbooh| Fungal Protease Enzyme | Halal| Shortening| Mashbooh|
Gelatin / Kosher Gelatin | Haram| Soya Protein | Halal| The above is a list of some of the known ingredients only. Source : Islamic Food and Nutrition Council of America| The procedure of Halal Certificate: First we have to fill the application forms and supporting documents includes a detailed of the company’s profile and the local authority’s license, also we have to inform them with all the ingredients that in the product, the address of the manufacture and the name or the suppliers of the ingredients name and address.
Also the original status of ingredients, packaging materials, manufactures process and procedures. Second, we have to pay full payment of the certification fees before the inspection and we have to succeed in the physical site inspection includes inspection of storage, ingredients, production, general hygiene and quality control. Third, a report will be sent to the evaluation committee and recommendation and then the report will be tabled and evaluated by a committee for issuing Halal Certificate.
Then they will give us a validity period of the certificate is only for two years. Then it will be carried out the Halal conformity through inspection, constant monitoring by surprise visit or calling the companies involved. Changes or Improvements for Launching Halal Product Because Kuwait market is an Islamic Market and they follow the rules of “Alshariyah” that means they usually eat, drink, wear and buy Halal products and the demand on Halal product is huge.
Also on the other hand the demand in Kuwait market for the cosmetics is also huge and strong as in Kuwait cosmetics is used every day and its one of the important priority for women and teenagers in Kuwait. If we could take a product with a high demand on it such as cosmetics and turn it to Halal cosmetics and also introduce it in an Islamic market such as Kuwait market, you will be doing an excellent business. If we see the demand and supply we will find that the demand of Kuwait market is cosmetics product and they are also demanding Halal product, but unfortunately they didn’t have the opportunity to find Halal cosmetics.
Now we will be supplying their demand by offering them Halal cosmetics and if we just monitor the marketing mix well we will be doing a very good business in this market. Every business has its own special marketing plan and strategy to attract the customer and to grab their attention. Every company has its own way how to make the product and all of the marketing mix works with each other in terms to be successful company and to make more sales and profit.
There is one important thing that not many of us might be aware of it, which is there might be some changes required to be successful in that market and as we know not all the markets are the same and any strategy that works in a certain place or market might not work in another place. For example when Cheetos Company for cheese curl wanted to expand in China they did not study the market well and after introducing the product in china they was shocked with the big failure they have faced. The reason why Cheetos Company failed in this market is because they didn’t do some changes.
In China cheese curl is not famous and even though when they tried it they didn’t like it. After Cheetos company realized the problem they have done a research to find what are the best flavor for China market and they find that Strawberry, blueberry and BBQ flavored are the best to suit this market and when they changed the flavor they succeeded in this market. For our business we also will make some changes since we studied the market well and we think these changes will attract more customers to our business and make it a successful business. 1.
Kuwaitis have their own taste in some of the fragrances and perfumes and adding “Bokhor” smell to the fragrances and perfumes will a very good step in Kuwait Market. 2. Also since our products are Halal product we might add some “Henna” which is a planet with a nice smell and Kuwaitis also put “Henna” on their hairs often and they believe that it helps the hair to be stronger, better smelling and shiny. 3. We must create a website in Arabic so customers can read all of the ingredients and what are our products made of in Arabic so they can trust us and feel safe. 4.
We will use some Kuwaitis celebrities to represent our makeup and do some commercials for us. 5. Customer Service is a very important thing that we have to look after and we will be collecting our customer’s Mobile number or emails so we can inform them if we have any promotions or discounts. 6. Since we will be doing some commercials and advertisement for our new Halal product we must have an Arabic advertisement and also an English advertisement. 7. We will be publishing flyers that shows how Halal cosmetics are better than regular cosmetics to increase the target market awareness. 8.
To ensure that the team or the employees are working affectively we will set a commission for each clerk so we can encourage them to work better. Define three different market segment for Kuwait market place Before we complete our study we should divide the customers into different categories, so we can know what are the expected demands are and so we can meet need or want of these customers. Since satisfying all the customers is almost impossible, so we have to divide the customers into different groups and after dividing them we have to select a part and try to meet the need and want of this part.
Now how can we divide the market or split it? We can group the customers based on 3 main groups 1. Geographic 2. Demographic 3. Psychographic 4. Behavioral Now I will discuss three of the segments and I will rank them based on their viability and likely contribution to the business. 1. Demographic: Age| 18 – 30| Gender| Females| Income| Above 500 K. D| Religion| Muslims| We choose the age of 18-30 because from 18- 25 are likely to buy most of our products and because most of them are in Colleges and universities they will use it more.
And from 25-30 are likely to go for weddings and in Kuwait they must have makeup on them when they are going to wedding and that why we will be focusing on this age group. Cosmetics are used by females and also Avon Company is a women company so we will be focusing on women and tries to satisfy their needs and wants. The income should be above 500 K. D because women who have an income which is below 500 K. D will not be able to buy from Avon because they will have a more important priority to do with their salaries and they will prefer to buy from other shops that cheaper than Avon. 2. Psychographic:
We will be focusing on the interest because women who are interested to attend social meeting and family gathering which are a very important part in our society will be more likely to buy make up because this type of women use it more than others. Also we will be focusing on the opinion because we don’t sell only cosmetics, we sell Halal cosmetics and that might make a difference on people who thinks and believe that Halal product are better than other regular product and we will be focusing on this type of women because they care about the ingredients and how did we make our products. . Behavioral: We will be focusing on the usage rate because women who use makeup and cosmetics more than other because they have more occasions so these will be focused on and also brand loyalty because there are some women when they like a certain brand of makeup they don’t tend to change it and they became loyal to this brand and this type of women who we are looking for.
Also Occasions is one of the important parts of behavioral segment because there are women who don’t use make unless they have an occasion and this type we can satisfy them by offering them promotions for a whole set of cosmetics and they will have the opportunity to buy it and keep it till they use it. Which segments are likely to purchase our product?
Now if we want to see which segment is more likely to buy my product and ranking them from one to three, Number one will be Demographic segment because they are likely to buy my products since the religion is included and Halal product means that this product is the best product for Muslims and also because they are women and the age of 18-30 is the best age to buy from us.
Second, Psychographic women who are interested in family gathering and social meeting and gathering are likely to buy our product more than the others because they use the makeup more than others and those whom we want to attract and they will be likely to buy our product because we can offer them special discount and promotions if they visited us more and more.
The last one is Behavioral because women who uses the cosmetics based on usage rate and brand loyalty won’t buy our product so much because cosmetics products isn’t used for one day, it’s used for a period of time and we want women who use more so they will buy more and this is the reason why behavioral segment comes in the last place. After segmenting the market, now we can say that our best customer is a Muslim women between 18-26 years old who is interested in social activities and meeting and also interested in family gathering with an income above 500 K.
D and she thinks that Halal cosmetics are better than regular cosmetics because they don’t have Haram ingredients and it is been produced and manufacture in a better way. Mission & Vision and How might be affected by new Halal Product: Avon Vision: To be the company that best understands and satisfies the product, service and self-fulfillment needs of women—globally. Avon’s Mission: The Global Beauty Leader Avon Company will build a unique portfolio of beauty and related brands, striving to surpass their competitors in quality, innovation, and value, and elevating our image to become the world’s most trusted beauty company.
The Women’s Choice for Buying Avon Company will become the shopping destination for women, providing a personal, high-touch experience that helps create lifelong customer relationships. The Premier Direct Seller Avon Company will expand their presence in direct selling, empowering women to achieve economic independence by offering them a superior earnings opportunity as well as recognition, service and support, making it easy and rewarding to be affiliated with Avon. The Best Place to Work
Avon Company will be known for their leadership edge, including their passion for high standards, their respect for diversity, and their commitment to create exceptional opportunities for professional growth so that associates can fulfill their highest potential. The Largest Women’s Foundation Avon Company will be a committed global champion for the health and well-being of women through philanthropic efforts, with a special focus on breast cancer, domestic violence and women’s empowerment. The Most Admired Company
Avon Company will deliver superior returns to our shareholders by tirelessly pursuing new growth opportunities while maintaining our commitment to be a socially responsible, ethical company that is watched and emulated as a model of success. When Avon Company introduced the Halal cosmetics many things were changed in the Vision and the Mission of the company. This step has given the company an opportunity to prove that Avon Company is a real Women Company and they care about women. By introducing Halal product they have attract more customers to their brand name.
Every company has its own Vision and Mission and now we will see what did the Halal cosmetics change in the Vision and the Mission? Halal cosmetics have changed the company to be a better company that cares about all the religions and try to have the best ingredients and satisfy the women needs globally. By providing Halal cosmetics Avon proved what they have promised when they said they wanted “To be the Company that best understands and satisfies the product, service and self-fulfillment needs of women— globally. Halal products have worked in make the Avon Company image better and trustworthy and also it helps the company with their mission such as being the most admired company and also by introducing Halal product to the company they’re achieving their mission to be the largest women’s foundation and the women choice of buying and to be the global beauty leader. Providing the same quality of service to existing customers Customer service is a very important part that we have to focus on because customer service is in every purchase the customer does.
We all have stories with bad customer service and good customer service and we used to share it with others. We know that word of mouth could be the reason why customers always come back for your store or company or it could be a reason of loosing many customers by treating them poorly. Warren Buffett said: “It takes 20 years to build a reputation and five minutes to ruin it. To be honest with the customers is the best way to ensure a good customer service.
Being honest with the customers and communicating with the customers when there is any mistake that happens ensures you that the mistake will never happen again and this is an advantage of being honest. There are few steps if we follow them we will continue to provide continued quality of service. 1. Response quickly When something goes wrong we have to quickly call the customer and explain him what happened and explain him our company’s mistake.
If We have to communicate with a large number of customers, then we have to send them an email explaining them what’s the company’s mistake and we will send them an email because it’s faster if we are communicating with a large number of customers. 2. Set a Realistic Expectation If we promised the customers something that didn’t delivered as we promised, the customers will feel disappointed and we will lose their trust in our words and promises, so we must do what we have committed to do even if it takes some arm wrestling with other departments who want to launch a product to the market before its been ready. . Respect The customers are so important to any company, without them we will not have any company, so all of our staff should love the customers even though there are some customers who will push the limits, but with the philosophy of respecting our customer and appreciating him we will get the customers satisfaction and we will be providing good customer service. From Gandhi, “We must become the change we want to see in the world. ” How could we know if the customers are satisfied with our customer service or no? We have many ways to see if the customers are satisfied or no.
First, after purchasing we can ask them to do a survey for us and also by doing an annual survey is a good way to ask. Also a follow up calls from the call center department will be a good idea. Measuring our services is an important thing to do because it gives us the opportunity to improve our company performance or even to save our company of losing. We will do some steps to know if customers are satisfied or no. How can we keep the customer satisfied? We can keep the customer happy and satisfied by following also several rules.
If we follow these rules we will be able to satisfy the customers and ensure that they are happy with our services. 1. Service level: For the call center the first call is just like the first impression for the customer. The customers will know if the service is good or bad from the first call. Also for the shipment and delivery we must give a very good impression for the customer from the first day. 2. Response time: The response time is a very important tool we should use to ensure that our customers are satisfied and what we mean by response time is that when any customer has a question we should answer him as soon as possible.
This will help us to keep the customers satisfied. 3. Give the customer his time: Some of the companies tell their agents to keep the calls short, but this is not helping the company because this might send a wrong message to the customer, so we will be giving the customer plenty of time to feel free to ask about anything he want and also our agent will give the customers a full detailed answers. After doing all these steps we will be sure that we are provide the same quality of service to existing customers with the introduction of the new Halal product.
Major Promotional Activities & RMOI: This table shows our promotion major activities and also it shows which promotion we will use in each month before launching the product and after launching the product. We have choose three main promotions activities section and under each of them we have choose a certain promotions ways that we thinks it best deliver our message to our target market. | October| November| December| January| February| March| April| May| Events & Exhibitions| | | | | | | | | Media| | | | | | | | | Internet| | | | | | | | |
We will be launching the product in December 2012. In October and November these two months are pre launch months and we will be doing some exhibitions and advertisement on these two months to create product awareness before launching it. When we launch the product we want to reach the highest number of target market so we will be using the three major promotions to reach our target market on December. Event | October| November| December| January| February| March| April| May| Cost| Exhibitions in Mall| | | | | | | | | 3,200 K. D|
Trade Show| | | | | | | | | 2,000 K. D| For the Event we will be using this promotion in October before launching the product, December when we launch the product, January, March and May. We will be using two types of Events promotions. The first one is Exhibition in malls such as Avenues, Marina Mall and Al Fanar Mall. The second one is the Trade show where there are some exhibitions for cosmetics brand where many cosmetics brand rent a booth and promote their product. This table will show you what Event promotions we will use and when. Media October| November| December| January| February| March| April| May| Cost| Catalogs | | | | | | | | | 400 K. D| Magazines| | | | | | | | | 600 K. D| Radio| | | | | | | | | 1,200 K. D| Flyers| | | | | | | | | 400 K. D| For the Media Promotions we will be using 4 types of media. The first thing we will be printing some Catalogs of our product and a brief description of our company and what are the Halal Products. The second thing we will be doing some advertisement in some Magazine that targeted the women such as Laki Magazine, Al-Mara’a Magazine and Sayedati Magazine.
Also Radio is a good way to advertise for such a product, we will be doing some commercial advertisements in Marina FM because there is a study that said 78% of the channel listeners are females and that was said during one of the programs in Marina FM. Also flyers will be printed and we will be publishing them in some salons and Malls. Internet | October| November| December| January| February| March| April| May| Cost| Social Network| | | | | | | | | 600 K. D| Blogs| | | | | | | | | 150 K. D| For the Internet Promotions we will be using two methods.
First we will be using Social Networks such as Facebook, Twitter, MySpace and YouTube. We choose this method because nowadays many people are being a part in the social networks websites and in Kuwait it has been a very attractive way to reach your target market. Also some of the social networks could offer you to advertise just for your target market. For example, if your target market is female age from 18 to 30 and their interests are Cosmetics, The social network can advertise your promotion just for the target you choose.
The second method we will be using is Blogs since now many people are interested in blogs and they can share their opinion and get new ideas. This method might be used to educate our target market about Halal Product and also we might use it to tell more about our products and company. This is table shows our promotional budget for 8 month before and after launching the product and also we have mention the expected ROMI for these 8 months. Promotion Method| Promotion Budget| Events Promotions| 5,200 K. D| Media Promotions| 2,600 K. D| Internet Promotions | 750 K. D| Total| 8,550 K. D|
Return On Marketing Investment| 17,100 K. D| As we can see the last table shows each promotion method budget and also it shows the total budget for the Marketing plan in 8 months including the two pre launch months. It also shows you that the ROMI is 17,100 K. D because what are we planning for is in every 1 K. D we pay for promotions we want to get 2 K. D for example, When we budgeted 5,200 K. D in the Event promotions we want to make sales of 10,400 K. D and we did that because after making sales of 10,400 K. D we have to pay all of our expenses and we will have the rest as a profit.
The best way to make sure that you are making profit is to make sure that the ROMI is 50% or above. One Year Budget and ROI: This table shows which promotions we are going to use for a period of 14 months include the two months of the pre launch period. This table shows in details which promotion we are going to use and when also it shows how much each promotion cost. Promotion Method| Promotion Budget For one year + Pre launch 2 months | Events Promotions| 7,000 K. D| Media Promotions| 3,800 K. D| Internet Promotions | 1,400 K. D| Educational Promotions| 1,500 K. D| Total| 13,700 K.
D| Return On Marketing Investment| 27,400 K. D| This table shows the promotional budget for a period of 14 months including the 2 months before launching the product. As we mentioned before in the report we always assume that our return on investment will be the double because we usually set a plan to get 2 K. D for every 1 K. D we invest in promotions and marketing. Sales| 133,000 K. D| | COGS| 80,000 K. D| | | | 53,000 K. D| Gross Profit| 53,000 K. D| | Expenses: * Sales Expenses: 13,700 * Operation Expenses: 6,000 * Financial Expenses 5,000| 24,700 K.
D | | Net Profit| | 28,300 K. D| This table shows the sales we make for a period of 14 months, how much did we pay for the goods or product we sell and it shows what expenses did we have and how much each one of them cost us. Also as you can see it tells us how much profit we make over one year. We calculate that by taking how much sales we made minis how much did we pay for the product we sells and then we will get the Gross profit. Then we take the Gross Profit minis Total Expenses and we will get the Net Profit which means the money we make over a period of time which is in our case 14 month.
Competitors: MAC: MAC Company is one of the best names in the cosmetics industry. MAC Company was founded in 1984 in Toronto, Canada by Frank Toskan and Frank Angelo. The MAC is a short cut of Make-up Art Cosmetics, but its known world-wide as MAC. Frank Angelo was a beauty salon owner and he come up with a makeup line that would be well with photography. The two owners use to cook the cosmetics in their own kitchen and most of their clients were artist, models, photographer. Strength: * Strong Brand Name * Brand Loyalty * Many Branches in Kuwait
Weaknesses: * Uncomfortable products * Potential skin irritants products * No anti-blemish products * Poor customer service * Not many Advertisement L’Oreal: L’Oreal is the world largest cosmetics and Beauty Company. It was founded in 1909 by the French chemist Eugene Schuller in France. L’Oreal has a variety of products such as hair color, skin care, sun protection, makeup, perfumes and hair care. L’Oreal reached the top 100 Brand in the industry which means it is one of the leading cosmetics company in the cosmetics industry. Strength: Many distribution channels sells their products in Kuwait, but they don’t have a store here * Many Advertisement * Many varieties of products line * Many products for men * Their product almost in every super market in Kuwait Weaknesses: * No experts in Makeup and no makeup artist * No store for L’Oreal they only supply other stores with their products * They are focusing on hair product and less focusing in cosmetics Threats: There are few threats that our company is facing from MAC and L’Oreal. 1. They have a good customer base Customers prefer to try something have been in the market for long time then trying new thing specially for cosmetics products so it might be hard for us to attract and get customers interested in our product 2. They might do promotions or discounts on the time we launch our product * They may fail our product launching because they might do discounts or huge promotions on the same time we launch our product in and that could distract the customers for noticing our products 3. They might introduce Halal Product Our competitive advantage is that we have Halal products, if they produce Halal products and launch it in Kuwait most of the customers will buy from them since they are well-known and have a big customer’s base. Communicating the changes in the Current Operations with Introduction of Halal Product: When any company introduce new product there will be many changes in the organization. The successful companies are the companies that focus on the new product and also they still focus on the old product and they know how to communicate the changes that happens to the current operation in the organization.
For our company we will have 5 main steps to be able to communicate the changes. Who? 5. Employees 6. Management 7. Board of Directors 8. Clients or customers if necessary How? 5. We must communicate through many channels such as writing, intranet of the organization and training and explain more about the change 6. We have to give enough time for people to ask question and know more about the change 7. We have to clearly explain the Vision, Mission and the objectives of our company 8.
Explain the reason of the change clearly and what that might benefit the company and the clients If we follow these 4 steps, we will be able to make a very good communication and all the people who works in the company will know why we are changing and how we will change and when also, so they will be on track with any step the company does and they will help to make the introduction of Halal product more successful. Recommendation: Avon Company is a very successful company in the cosmetics industry and it has a very long history in the industry.
Avon products are in more than 130 countries and that show us how big and successful the company is. I believe that Avon Company will make a huge success in Kuwait and even in the Middle East because Avon has the perfect products that satisfy the needs of Kuwait market the Middle East market. The Vision of Avon is to be the company that satisfies the needs of the women internationally and globally and by introducing Halal product they are proving to the people that Avon is the Number 1 Company that understands the women need and try to provide the products that satisfy that need.
The introduction of Halal Product will make a big change in the marker. Kuwait market is small and Kuwait community is also small and a word of mouth in Kuwait is doing a great job for the companies and organizations. By introducing Halal Product we will get the Kuwait market attention and many people will be talking about it and we will have very good product awareness by word of mouth and we will make a big success in this market since it’s an Islamic market and they are trendy people who like to try new things. References: http://en. wikipedia. rg/wiki/Halal http://www. npros. com/dir/avon/ http://www. avoncompany. com/aboutavon/index. html http://licence2halal. com/our-services/ http://www. malaysiahalalfoods. com/ingredients. html http://www. halaljournal. com/article/194/jakim-halal-certification-details http://www. scribd. com/doc/26155318/New-Product-Development-Strategy http://managementhelp. org/fp_progs/mkt_mod/market. htm http://managementhelp. org/fp_progs/mkt_mod/mrk_nlyz. htm http://www. netmba. com/marketing/market/segmentation/ http://samehar. wordpress. com/2006/05/29/a223/