You are on page 1of 30

Chapter 1

PROBLEM AND ITS BACKGROUND


Introduction: One of the very significant factors for effective sales performance is the marketing strategy. Marketing is a social and managerial process by which individual obtains what they need and want by creating, exchanging and offering product and services with value to others. This study is all about the strategy that a company, like Avon, will need in order to have an effective sales performance. In this, study, you will notice that focusing on customer is one of the effective strategies that Avon Company implies, since they believe that the customer is the reason of their existence. Advertising and promotion is one of the tools that Avon Company is using such as discounts, giving free products and other promo. Their advertisement shows that they offer not only high quality product but also opportunity for every woman in the country; this kind of advertisement will surely catch the attention of the customer and will lead them to be a part of Avon Company. But of course, marketing strategy is effective not only on gaining customer but also on motivating the employee to work harder and to give their best in the field of business, that is why it is needed to determine and to identify a motivational strategy that will surely encourage the employee to work. Considering also the product of the business is important in identifying a strategy that will fit on your business. The place of your business also affects the sales of your company; you need to make sure that the company is located in a place wherein it will not be hard for the consumer to find. Also, identifying the price is necessary; you need to make sure that right price will fit on the quality of the product. As we all know, people
1

would love to invest their money if the quality of the product will exceed their expectation. These things are just the factor that you need to identify in order to make sure that the marketing strategy is effective. Using this data, you can have an idea whether your company is growing or not.

Theoretical framework: The present study is anchored on the Principle of Marketing. 8th edition by Philip Kotler and Gary Armstrong. 1. Marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.

Products are goods and services combination the company offers to the target market.

Price is the amount of money customers have to pay to obtain the product Place includes company activities that make the product available to target consumer

Promotion is the activities that communicate the merits of the product and persuade target consumers to buy it. The marketing mix is related to the study because it discusses the marketing

strategy to be done in order for a company to be successful and attain their goal. This marketing strategy is reflected on the performance of the sales leader of the company.

Conceptual framework Input Demographic profile -age -gender -civil status Marketing strategy -promotion & advertising -services -location -modern technology

Process Conducting surveys, interviews, and questionnaire

Output

Effective sales performance

Figure 1 In order to have a successful company, planning good strategies is needed. As a marketing manager, they must think what marketing strategies are needed to
3

implement in order to gain more profit and to satisfy the customer. These marketing strategies are conducted through promotion and advertising, services and location or the environment of the company and modern technology. The researchers also need to focus on the demographic profile of the employees and customer. The process that the researchers will use should depend on the marketing strategy which ids the implementing of marketing mix such as the product, place, promotion and price that should be considered as factors of consumer satisfaction. For gathering the demographic profile as the respondents, we will use the process of surveys, interviews, and questionnaire. Considering these marketing strategies and process will lead the company to an effective sales performance.

Statement of the Problem This study primarily aims to determine the effects of marketing strategies for Avon achieving effective sales performance at Avon Bayanan especially, the researcher sought to answer the following question: 1. What is demographic profile of the respondents? 1.1 Age 1.2 Promotion 1.3 Civil Status 1.4 Educational Attainment 2. What marketing strategies are implemented to achieve effective sales performance? 2.1 Pricing
4

2.2 Location 2.3 Promotion 2.4 Modern Technology 3. To what extent does these strategies affects the sales performance? 4. Is there a significant relationship between the marketing strategy of Avon Bayanan and sales performance of the sales leader of Avon?

Hypothesis Below are the hypothesis draw by the researcher to determine the significant relationship between the marketing strategy and sales performance of Avon Bayanan. Ho- there is no significance relationship between the marketing strategy and sales performance of Avon Bayanan H1- there is a significance relationship between the marketing strategy and sales performance of Avon Bayanan

Significance of the Study Company- this will give them an idea on how effective their strategy is. And this will serve as a reference for the improvement of the company strategy, through this study; the company will be able to determine the factors that may affect their sales. Avon Dealer- this will give them opportunity to earn more profit. They are involved in a well known and well established company; more customers will buy their product.

Customers- since the researcher will be conducting a survey regarding the product of Avon, by the use of marketing strategy; the customer will be satisfied to the product. Since the price is good with regards to the quality of the product. Future Researcher- serves as a baseline data for future research in related topic.

Scope and Limitations The research includes only the relevant information explaining some reasons behind the study of marketing strategy. Specifically, it will answer the following question like the demographic profile which only includes their age, gender, and civil status and educational attainment of the 20 respondents. It does not include the personal and private life of the respondents only the information that is needed in connection to the study. The researchers choose the 20 top sellers of Avon as the respondents in this research. Whatever the result that will come up, the company will not abuse the result of the survey but rather improve the strategy to satisfy the result of the customer. The researchers chose Bayanan because it is the main branch in the vicinity of Muntinlupa.

Definitions of Terms To give a clearer understanding of the words used in this study, the term used is operationally and theoretically defined. Location- refers to the environment or the condition of a certain companies Marketing- a social and managerial process by which individual obtains what they need and want by creating, exchanging and offering product and services with value to others.
6

Marketing mix- set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. Marketing strategy- refers to marketing logic by which the business units hope to achieve marketing objectives. Place- includes company activities that make the product available to target consumer Price- the amount of money customers have to pay to obtain the product Products- goods and services combination the company offers to the target consumer Promotion- the activities that communicate the merits of the product and persuade target consumers to buy it Service- is the act of labors that would give benefit to the customer

Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES


This chapter presents the related literature and related studies used by the researcher to be added in the information needed in this study. Foreign Literature According to Raji, professional marketers uses an understanding of consumer behavior to anticipate future behavior based on the implementation of specific marketing strategies. Knowledge of consumer behavior serves as a strong basis for the development of effective and efficient marketing strategy. Another literature explained by Maier that human behavior is very complex and shouldnt expect that the researcher will be able to accurately predict how people will. The first step is to talk to your customer and find out what they would change about your strategy if they could. It was pointed by Sommer that we should stop all marketing that is not delivering a positive return on investment. And evaluate your sales team and eliminate under performers. This is a perfect time to build a strong team of top performers. Similar study given by Clark is that you must strengthen your existing customer relationships to enhance purchase loyalty, foster strong relationships and encourage word-of-mouth referrals. Smith stated that successful sales management can happen provided there is support, alignment and documentation through effective self leadership skills, sales managers can increase sales, reduce staff turnover and truly enjoy their roles.

Stephen mentioned in his study that selling more to your customers is another way of saying increase the frequency you do business with your customers. And meeting your customers need is a place to start.

Foreign Studies Marketing basics according to Cohn (2008), stated that there are three strategies to grow a business, and these are: increase the number of customer, increase the average transaction amount and increase the frequency of repurchase and that every marketing strategy should be measured by its ability to directly impact and improve upon each of three factors. Garin (2005) mentioned in his study that there are two recommendations for promoting direct-sales through consumer and the business it is to offer incentives to the customer and to motivate the business in promoting its products by advertisement. In the study of Carbone (2003) particular attention should be paid to the evolution of the consumer the increase in competitive pressures. Same study by Manda (2010) mentioned that the word-of-mouth marketing has been existence for a very long time. But the important aspect of it was people speaking favorably about the product, to the right people, at the right time and very often.

Local Literature In the fourth element of marketing by Ruby F. Aliminar Mutya (2000) states that it was a satisfaction of existing human needs and wants. It said, based on
9

economic principle,that human need and wants were insatiable within itscontext, it can be seen that buyers continuously demand for new or developed goods for their satisfaction. It was out of these needs that new products should be planned and developed. Moreover, out of these needs satisfaction, we can be assured as sales, as human requirement were fulfilled. Local Study Another study was conducted in relation to marketing strategy, done by Esguere-Bantay entitled, The Eden Corporation and its Marketing Processes A study. She derived in a solution that exclusive distribution enables Eden Corporation to have more aggressive and knowledgeable selling and more control on the dealer. The dealers were able to establish this distribution with the producer primarily because of inventory. The dealers major problems were those related to sources of supply, internal operations and customers. This research enumerates marketing processes and in connection with the present study, the authors both do the same. It also emphasizes the importance of knowledge in distribution and that one should consider dealers as well as consumers. Synthesis Satisfaction of the customer is one of the important things that a company needs to determine. Improving the product and the services being offered is essential in order to meet or exceed the expectation of the customer. Just like Garin said, offering incentives to the customer will surely give them motivation to continue on purchasing products to the company. There are lots of strategies that are effective in motivating not only the customer to buy but also the employees to work harder. Establishing sales competition to the dealers will encourage them to sell more
10

products and to look for more customers. Also focusing on the behavior to anticipate future behavior based on the implementation of specific marketing strategies. There are lots of strategies that a company can use in order to have an effective sales performance. Giving enough time on your product to have high quality will help in making your customer continue on buying our product. High quality products encourage the customer to invest and spend their money.

11

Chapter 3

METHODOLOGY
This section describes the research design, population and sample frame, research instrument, data gathering procedure, and statistical treatment which will be use to analyze the data. Research Design The researchers will be using the descriptive method in determining the marketing strategy of Avon Bayanan in relation to sales performance Descriptive method of research is an essential fact-finding tool which will give the researchers adequate and accurate interpretation about such data. It describes the current condition, practices, situation, or phenomena through normative standards from which it determines and reports the way things are or what actually exists. Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. The methods involved range from the survey which describes the status quo, the correlation study which investigates the relationship between variables, to developmental studies which seek to determine changes over time. Population and Sampling Procedure The probable respondents of the study will be the Sales Leader of Avon Bayanan branch. It will focus on determining the performance of their sales.
12

The respondents choose purposive sampling procedure by choosing the 20 top sales leaders in Avon Bayanan Data Gathering Instrument The researcher will seek approval to conduct the study. The validated questionnaire will be distributed to 20 respondents in Avon Bayanan and could be requested to answer in their most convenient time. After one week, the answered questionnaire will be retrieved by the researcher and 99% retrieved was noted Research Instrument The researcher used survey questionnaire for gathering data. This information was used because it collects data faster than any other method. The researcher used the Likert Scale below to measure the degree of the answer of the respondents whether Strongly Agree, Agree, Neutral, Disagree and Strongly Disagree depending on the equivalent range. Scale 5 4 3 2 1 Statistical Tools Used The researchers will employ the following statistical tools in order to come up with justifiable analysis and interpretation:
13

Range 4.50- above 3.50-4.49 2.50-3.49 1.50-2.49 1.49- below

Descriptive Rate Strongly Agree Agree Neutral Disagree Strongly Disagree

1. Percentage- the measure to response as a percentage of number of samples and

how to show the relationships between two or more magnitude. Formula: P =f/n*100% Where: P= percentage F=frequency N=total of samples

2 .Weighted mean- a measure of central tendency ad was used to determine the weighted average of the responses. Formula:

Where: = weight mean F = frequency


14

X = weight average N = total no. respondents 3. Pearson-r- is use to determine the significant relationship between the effect of marketing strategy of Avon Bayanan on the sales of the company Formula: r= N (xy) (x) (y) [nx-(x)] [ny-(y)] Where: x = First variable y = Second Variable xy = Product of the first and second variable = Summation of = Summation of

N = number of samples

To interpret the correlation value (r) obtain, the following classification can be applied: Range of Values + - 1.00 + - .91 - .99
15

Interpretation Perfect positive (+) / negative (-) Very high and reliable relationship

+ - .71 - .90 + - .41 - .70

High positive correlation Moderate correlation significant relationship

+ - .21 - .40

Slightly correlated, valuable but low relationship

+ - .01 - .20

Slightly correlated, valuable but almost negligible relationship

+ - 0.00

No correlation

16

Chapter 4 PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents the data obtained from the responses of the sales leader of Avon Bayanan. The data were organized, analyzed and presented in summarized form.

Question1. What is the demographic profile of the respondents?

1.1 Age Table 1.1 Distribution of Respondents Profile in Relation to Age


Age 43 and above 37-42 31-36 25-30 19-24 Total Average Age Frequency 12 2 6 0 0 20 Percentage 60% 10% 30% 0% 0% 100% 43.7

The Table 1.1 presents the age distribution of the respondents. It shows that the average age ranges to 44 years old. 6 respondents or 30 percent got the age ranging from 31-36 years; 2 respondents or 10 percent got the age of 37-42 years. It implies that most of the respondents were matured enough to sustain their corresponding needs not only for own sake but also for their family.
17

1.2 Gender Table 1.2 Distribution of Respondents People in Relation to their Gender

Gender Male Female Total

Frequency 0 20 20

Percentage 0% 100% 100%

Table 1.2 presents the gender distribution of the respondents. It shows that 20 respondents or 100 percent are female. It implies that female has greatest interest in selling and has great ability in selling.

1.3 Civil Status Table 1.3 Distribution of the Respondents Profile in Relation to their Civil Status Civil status Single Married Separated Widowed Total Frequency 5 14 0 1 20 Percentage 25% 70% 0 5% 100%

18

Table 1.3 presents the civil status distribution of the respondents. It shows that 14 respondents or 70 percent are married. It implies that married woman is more persevere to earn money because of the numerous expenses for day to day cost of living.

1.4 Educational Attainment Table 1.4 Distribution of the Respondents Profile in Relation to Educational Attainment

Highest Educational Elementary Attainment High School College Masteral Degree Others: vocational Total

Frequency 0 5 12 0 3 20

Percentage 0 25% 60% 0 15% 100%

Table 1.4 presents the highest educational attainment of the respondents. It shows that 12 respondents or 60 percent are able to study in college. It implies that college graduate is interested on being a sales leader than being an ordinary dealer because they acquired skills and knowledge needed to influence other people.

19

Question No. 2 What are the Marketing Strategy of Avon Bayanan ? Table 2 Distribution of the Respondents to the Marketing Strategy
Marketing Strategy 2.1 Pricing Strategy The price of cosmetics are affordable The price of intimate apparel is affordable The price of health and fitness are affordable The price of alliance product are affordable Weighted Mean 2.1 Location of the Branch Avon Bayanan Branch, is accessible to dealers The location is near our house The ambiance of the place is relaxing The place is clean Weighted Mean 2.3 Promotion Strategy Introducing infant products attracted new customer Raffle draw contest encourage my recruit and customers to buy more Free membership attracts new customer and recruit Discounted Coupons motivates my dealer to purchase more Weighted Mean 2.4 Modern Technology Used Social Network help me to communicate with my dealer Website of Avon is useful tool to show catalog Seminars in DVD is a useful tool in my personal selling TV Advertisement help me to promote Avon products Weighted Mean Grand Weighted Mean Weighted Mean 4.75 4.60 4.05 3.25 4.16 4.3 3.75 4.0 4.55 4.15 3.6 4.4 4.6 4.55 4.29 3.95 4.2 4.0 4.5 4.16 4.19 Descriptive Rate Strongly Agree Strongly Agree Agree Neutral Agree Agree Agree Agree Strongly Agree Agree Agree Agree Strongly Agree Strongly Agree Agree Agree Agree Agree Strongly Agree Agree Agree

Legend: Scale 5 4 3 Range 4.50- above 3.50-4.49 2.50-3.49


20

Descriptive Rate Strongly Agree Agree Neutral

2. 1

1.50-2.49 1.49- below

Disagree Strongly Disagree

The above table shows that the weighted mean obtained by the respondents in relation to pricing strategy is 4.16 which fall on a descriptive rating of Agree. So therefore it implied that the product is very affordable for the sales leader or clients. In addition, with regards to the location, the above table shows that the weighted mean obtained is 4.15 which fall on a descriptive rating of Agree. It further employed that the location of the branch is accessible and relaxing because it is clean and easy to locate on the part of the respondents. As regards to the promotion of the company the above table shows that the weighted mean obtained is 4.29 which fall in the descriptive rating of Agree. It further conclude that strategies like raffle draw contest, free membership, discounted coupons and introducing new product line encourages the respondents customers to purchase more of the companys products. In addition, with regards to the modern technology used by the company shows that the weighted mean obtained is 4.16 which fall on the descriptive rating of Agree. So therefore it stated that most of the respondents find it more convenient to reach out to their customers through the use of the internet. Also, the television advertisement, and seminars in DVD help in promoting the product of the company. So therefore the obtained grand weighted mean of 4.19 which falls to the descriptive rating of Agree the respondents agrees with the strategies used by the company and motivates the respondents to sell more and therefore satisfies the customer.

21

Question No. 3 To what extent these Strategies Affect Sales Performance?

Table 3.0 Distribution of Respondent in Relation to Sales Performance


5 Trainings and Seminars provided by the company is helpful in my personal selling Discounts and Incentives given by the company encourage me to sell more Paying on time helps me to improve my sales Sales quota challenges me recruit more 80 60 85 50 4 16 32 12 24 3 0 0 0 12 2 0 0 0 0 1 0 0 0 0 Weighted Mean 4.8 4.6 4.85 4.3 4.64 Descriptive Rate Strongly Agree Strongly Agree Strongly Agree Agree Strongly Agree

Grand Weighted Mean

Legend: Scale 5 4 3 2. 1 Range 4.50- above 3.50-4.49 2.50-3.49 1.50-2.49 1.49- below Descriptive Rate Strongly Agree Agree Neutral Disagree Strongly Disagree

Table 3.0 shows that the obtained grand weighted mean of 4.64 which falls to the descriptive rating of Strongly Agree implied that trainings and incentive motivates the respondents to increase sales which will in return improve their sales performance.

Question No. 4 Is there a Significant Relationship between the Marketing Strategy and Sales Performance of Avon Bayanan?
22

Marketing Strategies x Price Location Promotion Modern Technology x= r = 0.99 Weighted Mean (x) 4.16 4.15 4.29 4.16 16.76

Sales Performance y Weighted y y y y4 y= Mean (y) 4.8 4.6 4.85 4.3 18.55 x y xy

17.31 17.22 18.40 17.31

23.04 21.16 23.52 18.49

19.97 19.09 20.81 17.89 xy=77.76

x=70.24 y=86.21

Legend:
Range of Values + - 1.00 + - 0.91-0.99 + - 0.71-0.90 + - 0.41-0.70 + - 0.21-0.40 + - 0.01-0.20 + - 0.00 Interpretation Perfect Positive (+)/ negative (-) correlation Very high and reliable relationship High positive correlation Moderate correlation, significant relationship Slightly correlated, valuable but low relationship Slightly correlated, valuable but negligible

relationship No correlation

Table 4.0 shows that the correlation value obtained by the respondents is 0.99 which means that there is very high and reliable relationship between the marketing
23

strategies practiced by the company that greatly affects the sales performance of the sales leader. It implies that if the sales leader is satisfied with the products and services of the company they will speak favorably about it to the right people at the right time and place.

Chapter 5 SUMMARY, FINDINGS, CONCLUSION AND RECOMMENDATION This section presents the summary of all the findings gathered by the researcher. It also includes the conclusions drawn and the recommendation provided by the researcher.

Summary This chapter summarizes all the findings of the study or Marketing Strategies of Avon Bayanan Branch in relation to Sales Performance. The researchers intended to answer the following problems. 1. What is the demographic profile of the respondents I terms of: a. Age b. Gender
24

c. Civil Status d. Educational Attainment

2. What marketing strategies are implemented to achieve effective sales performance? a. Pricing Strategy b. Location c. Promotion d. Modern Technology 3. To what extent these strategies affect Sales Performance? 4. Is there a significance relationship between the marketing strategy of Avon Bayanan Branch and its sales performance?

To answer the problems, the researchers gathered data from the Top 20 Sales Leader of Avon Bayanan Branch. The survey questionnaires were distributed to the respondents who answered each of the items as completely as possible. The questionnaires were then collected, tallied and collated. The retrieval rate was 100%. In answering the questionnaires, the respondents made used of the Likert Scale and corresponding weighted mean was then computed. Based on the results all data were presented accurately using graph, tables, interpreted and analyzed in the context of how the research study was undertaken.

Findings After completing the study the researchers came up with the following findings.
25

1. Findings on the Demographic Profile of the Respondents 1.1 Most of the respondents fell on the age ranging from 43 and above. About 12 got the percentage of 60%,about 6 got the percentage of 30% were ages 31-36, about 2 got the percentage of 10% or respondents were ages 37-42. 1.2 All of the respondents were female or 100% of the respondents.
1.3 About 25% or 5 were single, 70% or 14 of the respondents were married,

5% or 1 of the respondents is widowed. 1.4 About 60% or 12 of the respondents experienced college, 25% or 5 respondents graduated in high school and 15% or 3 of the respondents graduated in vocational courses. 2. In terms of Marketing Strategies
2.1

About 13 respondents or 65% of the respondents are strongly

agreed that the intimate apparel is affordable. It implies that intimate apparel is one of the best selling of Avon. 13 respondents or 65% of the respondents are strongly agreed that the intimate apparel is affordable. It implies that intimate apparel is one of the best selling of Avon. There are 15% who are agreeing that the price of health and fitness are affordable. 40% of the respondents agree that the price of alliance product is affordable.
2.2

About 10 respondents or 50% of the respondents are strongly

agreed that Avon Bayanan is accessible to dealers since it is located in the highway. 7 respondents or 35% of the respondents are agree and has a neutral decision that the location is near to their house, since that they live on different places. 9 respondents or 45% of the respondents are agreeing
26

that Avon can provide a relaxing place because of its air-conditioned room. 11 respondents or 55% of the respondents strongly agree that the place is clean.
2.3

About 50% of the respondents are agreeing that introducing infant

products are helpful in attracting customer since it is a new product. 12 respondents or 60% of the respondents are strongly agreed that raffle draw encourage customers to buy more. 13 respondents or 65% of the respondents are strongly agree that free membership attracts customer and recruit. 12 respondents and 60% of the respondents are strongly agreed that discounted coupons motivate the dealer to purchase more.
2.4

10 respondents or 50% of the respondents are agreeing that social helps to communicate with their dealer, since social network is

network

the trend in communication today. 9 respondents or 45% of the respondents are strongly agreed that the website of Avon is a useful tool to show catalog. 9 respondents or 45% of the respondents are agree that using DVD is a useful tool for conducting seminars, since not everyone is available to attend the seminar. 13 respondents or 65% of the respondents are strongly agreed that TV advertisement helps to promote Avon products since TV advertisement is an effective promotion of products. 3. In terms of Sales Performance About 80% or 16 or the respondents strongly agreed that trainings and seminars are helpful in personal selling. 12 respondents or 60% of the respondents are
27

strongly agreed that discounts and incentives encourage the sales leader to sell more. About 80% or 17 of the respondents agreed that paying on time helps them to improve their sales since having a past due is a bad record to a sales leader. 10 respondents or 50% of the respondents are strongly agreed that meeting their sales quota is a challenge to them. 4. Significant Relationship The correlation value obtained by the respondents is 0.99 which mean that there is very high and reliable relationship between the marketing strategies practiced by the company that greatly affects the sales performance of the sales leader. It implies that if the sales leader is satisfied with the products and services of the company they will speak favorably about it to the right people at the right time and place.

Conclusion After the data were collected and interpreted, these are the conclusions drawn by the researcher.

1. All of the Top 20 Sales Leader for the month of August was female.

2. All of the respondents fell on the age of 30 and above.

28

3. Most of the respondents was able to finish secondary education and some of them

experienced tertiary education 4. Based on the average weighted mean of pricing strategy, the price is acceptable to the respondents. 5. Based on the average weighted mean of location strategy, the place is accessible to the respondents 6. Based on the average weighted mean of promotion strategy, the strategy used by the company are effective on the perception of the sales leader.
7. Based on the average weighted mean of modern technology, the used of television

as a tool for promotion is useful on the perception of the sales leader. 8. Social networking is not so effective tool in communicating with their customers. 9. There is a significant relationship between the marketing strategy of Avon Bayanan and sales performance.

29

Recommendation These are the recommendation drawn by the researchers.

1. The price of the cosmetics and intimate apparel must continue throughout the business. 2. Based on the average mean, alliance product are expensive for the respondents, so there is a need to adjust the price of those products 3. The cleanliness and orderliness of the vicinity of the company should be maintained.
4. There is a need to focus on promoting new products to attract more customers.

5. Having raffle draws, discounted coupons and free membership should be practiced throughout the business.
6. Since social networking is not so effective tool in communicating with their

customers, the company should provide another way.


7. Showing products of Avon in a website is of great use for the respondents so

continuing and improving this website will increase the sales of Avon Company. 8. Television advertisement should be aired regularly for the awareness of new products of the company.

30