COURSE: MARKETING

-522
P R O F: K E V I N A N N
KELSMARK
FINAL COURSE PROJECT
O N AV E D A
D AT E : J U N E 2 1 S T 2 0 1 6

BY A M I T H I M A N I

A- 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 eco-friendly 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

B- 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
C- IMC Objectives (Quantify)
1- Attract new customers
a- Who are we targeting: Apart from the womens who falls under the age group of 35+ we
will be also targeting teenager, Mens, and customers of different ethnicity group like
Caucasian, Hispanic and African American too.
b- Know what do they need? It very important to understand emotionally and logically what
our customers want from us and how are we going to fulfill their demands. Aveda could
reach their potential customers or the existing customers and try to know more about their
needs and wants from the product.
c- Create an irritable offer: Aveda usually sells most of its products through the salon and
spa and the experience center located globally, so in order to drive the attention from its
potential customers the company needs to give some limited time exciting offers like flat
50% off on any hair and spa with purchase of Aveda products $50 and more.
http://www.aveda.com/cms/offers/offers_landing.tmpl
d- Find the target audience: we all know that Avedas mission is to produce organic beauty
products that are safe, not tested on animals and environment friendly. Aveda has

rightfully earned their reputation as stewards of the environment, as theyre one of the
biggest brands to do a lot of work raising awareness about causes like recycling, pollution
and the responsible sourcing of raw materials. Aveda could easily seek the attention of the
audience who are interested in using the products that are safe for the environment and
their health too by inviting this group of audience into their social awareness event and
introducing some new product into that event or by giving away some gift voucher to this
group. This group of people usually belong from the upper and middle class group.
http://theconsumerfactor.com/en/4-factors-influencing-consumer-behavior/
http://www.aveda.com/earthmonth/index.tmpl#event

2- Retain existing customers:

Aveda has started a pure privilege membership program for their customers. After
signing in for this program the customers could accumulate the loyalty points and use it towards
purchasing products or even a free trip to some best resorts across the world. Aveda also sends
free gifts and vouchers for their pure-privilege customers through emails or post cards.
Birthday rewards Aveda is offering a free $30 worth composition oil to all their pure privilege
customers as a birthday present to make them feel even more special on that special day.
Aveda has also started customer retention

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

Branding objectives
Aveda uses an age old ancient Indian healing tradition called Ayurveda. Ayurveda is a
Sanskrit world which means life knowledge (Ayur- life ) and (Veda-knowledge) and even
their brand name Aveda is derived from this Sanskrit word Ayurveda. 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. Their mission is to care for
the world and make products which are environmental friendly and this is what makes
their brand unique from other beauty products.
http://www.aveda.com/discover/index.tmpl
http://www.aveda.jobs/aveda/our-history.html

C. Market Analysis
a) SWOT

Strength

Weakness

Good

image
Eco- friendly

Opportunities

brand Unappealing

products Focus

and packaging
Limited location

on

presence recession

and
Strong financials

Limited

appeal

consumer
4

Reputable global Safety

brand

new Monopolistic

market segment
market
Increase social Economic
media

Threat

online

marketing
to Improve

Volatility and

packaging
and

concerns

raw

material

prices.
Decreasing

quality Educating
customers

revenue due to
the high tax on
beauty
products

Services,

some states.
Growth depended on Create customer Decline into

products,

new products

education
6

in

loyalty

personal

and

training
Outplay
industry earning

products.
Introduce

new

products
Increase

global presence
Reduce
price
products
similar

its

with
quality

care

for

different

market segment
a- Strength: If you have ever used Aveda products, you know the telltale signs -- the
aromas can seem at once minty and sweet; product names touting rosemary, flaxseed
and aloe make it sound as though the ingredients were plucked right from the garden.
The company uses all natural ingredient into the product and continues to trumpet an
eco-friendly message. Last year, it became the first beauty company to manufacture
using 100 percent wind energy. Aveda is very reputed for have less toxic substance
into its products. The website called skin deep is run by the watchdogs to check the
safety level of all the cosmetics and Aveda is rated 2 on a scale of 1-10 on its toxicity
level. Aveda training is also very recognized globally, according to beauty industry
studies, Aveda cosmetologists and estheticians earn 3 times more than their
counterparts. The institute curriculum is designed is such a manner that 80% of their
learning time is dedicated to practice and also more than half of the top 200 salons in
todays magazine are Aveda salons that means they could offer good pay, perks and
other benefits which other salon couldnt afford.

http://www.mprnews.org/story/2007/12/20/aveda
http://douglasj.edu/blog/2014/11/20/seven-reasons-why-aveda-institute-grads-havean-advantage/

b- Weakness Aveda has certain weak points too which doesnt allow it to
makes certain products due to its safety and quality concerns for example
the neutral colors which it uses into its salon are pretty safe from other
brand but sometimes its unable to give their clients the desired result
which their client is willing to get. This will probably make them loose
some guest and drive away those audience attentions towards their
competitors.

Kevin murphy
Aveda
Another weak point thats driving away its target audience attention is that it
packaging is quite unappealing for certain group of audience. This group of
audience wants to buy certain products just because it looks good.
http://www.aveda.com/product/5237/16611/Collections/GreenScienceTM/Green-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/
c- Opportunities:

In order to pull the attention of those shoppers who

usually buys something just because it looks or smells good, Aveda can try
to make certain changes into its packaging which will help them to
capitalize on this group of audience too. They could also focus on bringing
some product which will help them to attract teenager like the makeup
with a price that could be easily afforded by this group as this will help

them to attract the new comers and there is the possibility that this new
comer will stick with this brand as they grow older.
http://www.aveda.com/supercat/index.tmpl?CATEGORY_ID=CAT5331
d- Threat The biggest threat to any beauty industry is when economic
recession hits the market. The customers will probably try to cut down
their extra expenses and will spend less on the items which are not their
need. During 2008 recession, the annual market growth of the skincare
segment went down from 5% in 2008 to 3% the year after as a result of
the recession. This slowdown impacted even the star category of
nutritional-anti-aging cosmetics (9% of the sales in 2008), (Lennard,
2010). As Aveda is available in more than 28 countries across the world
they always have a threated of can in the government policies and rise in
taxation which might make it difficult for them to survive into a particular
market by keep up with their standards.
http://www.gcimagazine.com/marketstrends/regions/latinamerica/316327381.
html
http://www.toknowpress.net/ISBN/978-961-6914-02-4/papers/ML13365.pdf

b) Segmentation and Targeting: segmentation involves finding out what kind of customers
with different needs exist. Every market has segments, In the car market, for example,
consumers who want the biggest, most comfortable car regardless of price make up one
market segment. Consumers who care mainly about price and operating economy make up

another segment. It would be difficult to make one car model that was the first choice of
consumers in both segments, similar beauty products industry focuses their efforts on
meeting the different needs of their market segment.
Aveda has adopted a niche marketing strategy by making eco-friendly products and targeting
those group of audience who wants their personal care products to be safer and contain very
less toxic substance than other toiletry brand and this innovative idea became so successful
that now many other toiletry industries are switching to green products. Aveda has been able
to attract the middle and upper class womens Caucasian American women, now this brand is
trying to seek more attention from the middle class and upper class African-American,
Hispanic and Mens too. Therefore, the brand is trying to come up with new product like
Mens Invati, be-curly (detangling mask and co wash) keeping in mind the taste and
preferences of this group. Aveda is coming up with the new makeup line and this will a
attract the teen group whose mother are frequent shopper at the Aveda store.
Avedas major challenge is how to broaden demand to mainstream consumers so
that demand is not concentrated to a small consumer group. Only then can the
market share of natural & organic products could reach its true potential; in spite
of growth rates in excess of 20% per annum for almost a decade, natural &
organic products comprise just 3%.

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

http://www.aveda.com/supercat/index.tmpl?CATEGORY_ID=CAT5331
Kotler, Philip, Gary Armstrong. Principles of Marketing, 15th Edition. Pearson Learning
Solutions, 01/2013. VitalSource Bookshelf Online.
http://www.aveda.com/products/16897/Collections/invati-men/index.tmpl
http://www.aveda.com/products/15525/Hair-Care/co-washdry-shampoo/index.tmpl

c) 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.
Aveda is targeting upper and middle class people of following groups.
1- Caucasian

2345-

African American
Hispanic
Teens
Men

Their products are little expensive than the other toiletry brand because of the huge sum
invested by them into research and development and using all natural ingredient therefore
they are trying to target the middle and upper class group who are willing to spend on
quality products and introduced the low price makeup line for the teenagers who could
become their future customers.

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

d) Product/Service: Aveda has given a wide varieties of option to select for haircare,
skincare, body care, styling, essential oils, Makeup, comforting tea, candles and mens
product. They also offer free rituals to all their walk in guest. There are more than 8000
Aveda concept salons across the word which offers hair and spa services using Aveda
products.
Product invention: Aveda needs to invent new product keeping in mind the need of their
new customers.
1- Mens invati : Aveda introduced a new Invati line which is just for their 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
2- 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.
(African American womens and athletics)
http://www.aveda.com/product/5249/37298/Collections/ShampureTM/Shampure-DryShampoo/index.tmpl
http://www.aveda.com/products/16897/Collections/invati-men/index.tmpl
http://www.aveda.com/index.tmpl
e) Customer Profile: Avedas target audience are those who are middle aged womens who
have stable income and are looking for some high end products. They usually read the
ingredients before buying any new hair product. Aveda is now also targeting towards
American middle class and upper class Mens and Hispanic audience

as well. All

Retailers are focusing on the countrys fast-growing Hispanic population. According to

the U.S. Census Bureau, Hispanics account for about 17% of the US population
https://sites.google.com/site/alisecon250assignment3/aveda
http://marketrealist.com/2015/02/macys-target-consumers-make-difference/

f) 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. There are currently about 7,200 points of sale, primarily in the United States,
that sell Aveda products. Bumble and bumble products are principally sold to about
2,500 independent salons, primarily in the United States.
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://216.139.227.101/interactive/el2008-10k/pf/page_006.pdf
http://www.aveda.com/media/ceres/2012/2673-007_CeresReport2012.pdf

D- communication strategy plan

1- Television: By investing into a television ad will give them an exposure to a vast group
of audience, Despite criticism for high costs, advertisers have the best chance to reach a

large audience through television. During the prime time the television ads could target
around 20-30 million on a given night this will help them to create a brand awareness
among their target audience. Television ads main purpose will be to target the Hispanic,
Afro-American and teenager group. The Advertisement will try to make some emotional
connection with their target audience through this ad and also educate them why Aveda
is better than other brands. Television commercial which will be played during the shows
that are watched most by this group (According to Simulmedia data, Hispanic viewers are
heavy viewers of late night sports On a recent Wednesday in late night, they were 54% of
SPEED Channel's audience mid-week, 53% of GOLF Channel's and 40% of ESPN
News. In daytime, midweek, Hispanics were 68% of the audience of LOGO, 37% of the
audience of G4 and 25% of Planet Green's audience). 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.html
http://www.hispanicmpr.com/resources/old-articles/scent-marketing-connects-tohispanics-on-a-deep-cultural-level/

2- Internet:
a- 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 even more appealing.

b- social media: Aveda needs to become more active on social media networks like
Facebook, twitter, Instagram, YouTube etc. Recent trend shows that the social media
has become among one of the most powerful advertising channel. Now a days
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. Aveda will
promote all their new arrivals and offers on YouTube but creating a small 20 seconds
commercial which will also help them to emotionally connect with their target
audience. It will actively promote its new arrivals and offers on Facebook, Instagram
and other social media network.
http://www.marketingprofs.com/charts/2014/26025/how-social-media-advertisingaffects-sales. Its online advertising campaign offer their free coupons and voucher
which they could redeem by visiting any of the participating salons or aveda
experiences centers.
https://www.facebook.com/Aveda/
http://www.aveda.com/cms/offers/offers_landing.tmpl
c- online advertising banners: Aveda started promoting its banner on Pinterest and many
other website pages too and in near future investing more on online banner will help
them to attract even more audience.
https://www.pinterest.com/pin/127156389453697563/
3- Direct marketing: Aveda usually uses this marketing channel to seek the attention of its
pure-privilege members by sending them free gifts vouchers or emails about the new
products. However, when the pure-privilege members visit to the store to redeem their
voucher they usually end up buying their new product or some other Aveda product. As
they focusing to pull down the attention of the Hispanic group towards their brand they

could probably start promoting their products at those places where their target audience
shop more. For example, by giving away free samples at the macys store where middle
class Hispanic womens shops or by doing a quick survey of our target audience who are
shopping into that departmental store like Macys, Dillards and Target to know more
about their taste and preferences and give away a free gift for participating in their
survey. Aveda could use this information and launch new product by keeping in mind
what will fulfill their needs and wants the most. For example, Aveda came up with a dry
shampoo which is preferred by the gymnastics, athletics or those people who have oily
hair but however they dislike to wash their hair every day.
Aveda could also use that information to send them some exciting gift voucher,
newsletters or postcard.
http://www.aveda.com/pure_privilege/index.tmpl#offers
http://fortune.com/2015/04/17/macys-diversity-hispanic-consumers/
4- Sales promotion: Aveda usually have good sales promotion during the holiday seasons
or on special occasion like mothers day, fathers days, thanks giving and during
Christmas. Earth month event 2016: Aveda had organized a water fashion show in order
to raise money to protect water by attending the catwalk for water fashion show. This
event was organized for good cause however it also helped Aveda to get them some good
publicity into the market too.
Aveda attracts more audience with its exciting everyday offers and salon and store
promotion.
1- Sign up and get a free welcome gift
2- Get free shipping and 4-piece summer sample with $30 purchase.
3- Earn 300 points with purchase of its full size products.
Aveda has also framed strategy to promote its Brand 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.

For example, Glamour is moving the market as 1 in 8 American women engage

with Glamour and will have access to your brand! 10.9 million print readers, 8.2
million unique and a social footprint of over 105+ million!

http://www.aveda.com/earthmonth/index.tmpl#event
http://www.nerolispa.com/mothers-day-neroli-free-stress-fix-bath-salts-150-gift-card/
http://www.aveda.com/cms/offers/offers_landing.tmp
http://www.glamour.com/story/advertise-with-us

D- communication schedules:
Steps
Activity -1

Market
Female 10-15

Message
Informative and

Medium
Seventeen

Schedule
Monthly-full

years of age

sex

magazine

page
$168k/monthhalf page $109-

Activity -2

Female 10-15

Informative and

years of age

sex

Teen vogue

1/3 page$81k
One edition-full
page-$127-half
page $76k,1/3

Activity -3

Women 30+ and

Informative and

females

sex

Glamor

page is $51k
Monthly-full
page-$219K,half
page-$148K-1/3

Activity -4

Men and women

Informative

In store display

page-$99k
Rotate every

30+ and
Other

teenagers
Women and men

monthly
Informative

Facebook

Bi-weekly

30+ and teen

updates-choose

group.

by clicks(min.01
per click or
elective range)
company page
free, all year

Other

Women and men

Informative

YouTube

promotion
20 seconds ads
played in
between the
popular links
and shows.
Those videos
which will be
viewed by our
target audience
as and when new
products are

launched
http://www.seventeenmediakit.com/r5/showkiosk.asp?listing_id=4924488&category_id=31772
http://www.condenastinternational.com/media-kits-rate-cards/

a) Launch dates: Aveda launched following product during special occasions

Love composition: February 2016 (valentines day )
Beautifying polish: March 2016
Mens Invati : April 2016 ( Fathers day )
Dry shampoo : During earth month
http://www.aveda.com/cms/whats_new/index.tmpl
Budget evaluation:
Mediums/objectives
Seventeen
Teen vogue
Glamour
Facebook
Youtube
Total per month
Budget
Actual

Month 1
168k
76k
140k
100k
70k
554k
$3350000
$3324000

Month 2
168k
76k
140k
100k
70k

Month 3
168k
76k
140k
100k
70k

Month 4
168k
76k
140k
100k
70k

Month 5
168k
76k
140k
100k
70k

http://www.condenastinternational.com/media-kits-rate-cards/
http://www.seventeenmediakit.com/r5/showkiosk.asp?listing_id=4924488&category_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

Month 6
168k
76k
140k
100k
70k

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

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

3- http://www.seventeen.com/beauty/a7964/aveda-gets-greener/
4- https://www.aveda.co.uk/media/pdf/Aveda_IngredientFAQ-0513.pdf
5- http://www.mprnews.org/story/2007/12/20/aveda
6- http://kevinmurphy.com.au/products/
7- http://www.in-cosmetics.com/in-cosmetics-blog/GreenGlassCeiling/

8- Kotler, Philip, Gary Armstrong. Principles of Marketing, 15th Edition. Pearson Learning
Solutions, 01/2013. VitalSource Bookshelf Online
9- http://www.seventeen.com/
10- www.aveda.com
11- http://www.aveda.com/media/ceres/2012/2673-007_CeresReport2012.pdf