Aveda Haircare Marketing plan
Executive Summary
Company Profile
Market Segmentation & Targeting
Situation and Company Analysis
Ethics and Social Responsibility
Marketing Information and Research
Customer Decision-Making Profile
Positioning and Differentiation
Branding
Marketing Mix (4Ps)
Product Strategy
Pricing Strategy
Place: Distribution Strategy
Promotion: Integrated Marketing Communications Strategy
Budget
Action Plan
Risk Factors
Attributions
Selling AVEDA haircare products to my target market which is upper middle-class women in their late 30’s to early 40’s
AVEDA hair care products are 100% vegan and eco-friendly
Organic products sold to upper middle-class women in their late 30’s to 40’s
AVEDA is one of the first beauty line products to have an ecofriendly product from start to finish.
AVEDA will provide consumers with the highest quality hair care product that are not only ecofriendly and vegan but also work really well.
The marketing plan below has been created to generate brand awareness in the target market and to create a reputation that will last for years.
● Company Name: Aveda
● Industry: Hair care
● Headquarters 4000 Pheasant Ridge Drive Blaine, MN 55449 USA
● Year founded: 1978
● The number of employees: 3100
● Annual revenue (estimated): $514.07 billion
● Major products and/or services: Hair care and skin care
● Target customers: middle and upper class
● Distribution channel(s): Independent hair salons and spas
● Key competitors: Estee lauder, Redken, Kiehl’s
● Link to website: aveda.com
● Link to Yahoo! Finance information page (for public companies): Aveda - Yahoo Finance
Market Segmentation & Targeting
● Aveda allows someone to use a high-end haircare product that is also environmentally safe, organic, and vegan
● The target market for Aveda is middle to upper class, women in there 30’s and older, those who want to make a difference yet still want to pamper themselves
● Vegans, men’s haircare, hair loss, hair health
● Recently Aveda has made all of their haircare and color products vegan, they have created a men’s line with its own shampoo and styling products, they have a separate line of haircare products for those suffering from hair loss, and they have several hair treatments lines
● They focus mostly on their hair health segment. This is a good place to focus because a women will spend the most money on product to protect their hair. Therefore, those products cost the most yet are the best-selling.
Situation and Company Analysis
The economy influences purchasing power, however even with covid sales of Aveda have been at their best. Currently we are in a growth period. After covid salons have been booming and so has sales of product. Staffing is a problem and probably will be for some time. Interest rates are climbing but remain at an all-time low. Consumers want nothing more than to feel good right now. So, selling products that do this is in high demand.
E- commerce had become imperative in the sale of hair care and skin care products. Aveda has had to close several onsite store fronts.
Organic products have become very trendy in the hair industry, and there are two product lines that rival Aveda, they are Amika and Kevin murphy. Both are organic brands, but their target market is a lower price point. So, they tend to get a younger clientele.
Aveda has two competitors in my opinion, Amika and Kevin Murphy. Amika has a fruity fun scent and brand, their pricing is slightly less than Aveda, Kevin Murphy has a traditional scent that appeals to the masses. Aveda advantage is their earthy smells and their commitment to the state of the earth.
The political environment does not currently affect our market. Every salon that sells Aveda products is not allowed to sell any other product line.
Internal
HELPFUL Ideas
Strengths
● Does the organization have a strong brand presence? Aveda has been working hard on their brand and have solidified themselves as an organic brand.
● What resources are available for marketing activities? Aveda does most of their marketing through salon affiliates, then send packets and instructions on how to market new products.
● Does the company have unique products or services that satisfy the needs of its target market? Yes, they have high end products that do what they say and smell good. It makes them want to come back for more.
● What makes the company's products or services unique? Their signature earthy smell, and the fact that everything is vegan
● What value is brought to customers? They get quality products that smell good and actually do what they say.
HARMFUL Concerns
Weaknesses
● Does the organization have a weak brand presence? Their brand is dependent on how the salon chooses to market their products.
● Are resources insufficient for marketing activities? No, they are always sure to have products readily available
● Does the company lack distinctive products or services? These products are unique to them and their brand
● Do current products or services fail to satisfy the needs of customers? Sometimes their products fall short of the mark, currently their hair loss line does.
● Do current products or services fail to bring value to customers? They do well in hair health, those products never fall short but as stated above their hair loss line does.
External
Opportunities
● What C-PESTs could the company try to take advantage? In this covid era many people want products easily accessible online, consumers don’t mind spending money on themselves to feel good. Aveda can take advantage of both.
● Does the target market have any unfulfilled needs that the company can satisfy? They are in desperate need of a dry texture spray. Every competitor has one and they are missing the mark.
● Are there emerging target markets with needs that the company can satisfy? Yes, every few months they come out with new products that focus on a certain market.
● Are there ways the company and its competitors can benefit from working together? I’m not sure that would be wise for companies that sell similar products.
● Are there opportunities for collaborating with customers to build brand presence? Aveda has a pure privilege program that is a reward system for buying products. It encourages brand loyalty.
● Describe and analyze if market demand is increasing? The demand seems to be increasing for all professional hair care and skin products.
● Are there changes in the government regulations that will affect the company? NO
● Describe any emerging global issues that will affect the company? The supply chain issues has affected how fast Aveda can ship products to their salons.
Threats
● What are the tactics that competitors use to pursue customers? The other brands appeal to a younger crowd, they are more fun, and mission to give back
● What are the strengths of the company’s biggest and or emerging competitors? They have signature scents, have bright colored appealing branding, and a good mission.
● In what ways are the competitors’ products or services superior to the company’s offerings? Their purple shampoo and dry texture spray are far superior to Aveda brand.
● How are competitors likely to respond to any changes in the way the company markets? Aveda mostly markets through salon; they don’t even offer products through professional retail stores. To change this would change everything.
● Is the company behind in adopting new technologies for marketing? I think they are behind a little bit and need to expand how they market to consumers.
● Describe any ways in which international competitors are taking away market share? Aveda is a national brand and does very well in those markets.
● What do customers dislike about the company? There shampoo is all natural which is great but customers don’t understand that that’s the reason they don’t lather really well. That is one of our biggest complaints.
● Describe and analyze if market demand is decreasing? Demand is increasing for all beauty related products.
Aveda mission statement…
OUR MISSION AT AVEDA IS TO CARE FOR THE WORLD WE LIVE IN,
FROM THE PRODUCTS WE MAKE TO THE WAYS IN WHICH
WE GIVE BACK TO SOCIETY. AT AVEDA, WE STRIVE TO SET
AN EXAMPLE FOR ENVIRONMENTAL LEADERSHIP AND RESPONSIBILITY,
NOT JUST IN THE WORLD OF BEAUTY, BUT AROUND THE WORLD.
HORST RECHELBACHER, FOUNDER
They can continue to create products that align with their mission but also market to their target audiences. Adding products that would be affordable for middle class clients would also be a good idea. They should strive to be the best organic and vegan brand in the industry.
Their goal should be to increase sales by %5-7 (rate of current inflation) so that they can remain competitive within their market.
(References for this project Aveda.com)
Aveda was the first beauty company to use 100% post-consumer recycled materials in packaging. More than 85% of their skin care and hair styling PET bottles and jars contain 100% post-consumer recycled materials. They also helped pioneer the “Caps On” recycling programs you see in your community today. AVEDA follows “guiding principles” when it comes to packaging, they are referenced below…
• consider the life cycle analysis when developing packaging options
• reduce the size, weight and production processes of packaging wherever possible
• offer packaging that can be recycled whenever possible
• use the most environmentally sound materials and as much post-consumer recycled (PCR) content as commercially possible without affecting the efficacy of the product.
• use renewable energy to manufacture and fill our packaging in Blaine
• challenge our packaging partners to meet the same standards
Recommendations
It is hard to think of anything more to recommend when it comes to AVEDA and their sustainability and recycling practices. They have virtually pioneered several programs and should be proud of where they are in the industry.
One of AVEDAS goals is to have 90% of their salons participating in earth month. They still have not reached their goal and as of 2016 only 72% of salons were participating. The question is how to get more salons to participate?
They need to know how many concept AVEDA salons are willing or have participated in the earth month sales.
I think the appropriate information can be achieved through primary research. Interviewing concept salon owners would be a good start. Next, I think it would be good to send out a survey that not only salon owners would take but also salon employees since they are the one that will be doing most of the selling. In the past when a salon pledges an amount of money to earth month, they are required to pay it whether they raise the money or not. I think this needs to be changed or altered to get more salon participation.
A primary decision maker in my target market is a parent that wants to leave the world in better shape for their children. There decisions are based on their children’s future. They are also limited on time and want results; they don’t mind paying for those results because they are in the time of their life that they have more disposable income.
Target market lives in a 4 seasons climate with a moderate population size. They are the group that live in the suburbs. They are a family of four with the parents being in their 40’s. These kids are in sports and numerous activities, so they have busy lifestyles with disposable income.
I think getting involved in the community would be the fastest way to get the attention of the target market. So, that would involve running events at your place of business, joining local community groups, and getting involved in local school events and programs like the PTA.
We would position ourselves as the hair care brand that is eco-friendly and efficient. Our products would solve many issues that those in our target market face like thinning hair mostly caused by stress. I products would smell good and be priced at a point that is affordable but not cheap.
AVEDA is different than other hair care brands because it is not only eco-friendly but 100% vegan. There pricing is competitive with other brands, and they have a signature scent that those in our target market.
The market niche we want to fill is vegan eco-friendly products. Making sure we advertise in areas where this is important, magazines, tv programs, etc. This is the right approach because most of the time those that are interested in saving the plant and eating healthy are those with the most disposable income.
“To the soccer mom, AVEDA is the only hair care product that cares about your health and the environment because it is 100% vegan and uses eco-friendly products in their packaging.”
I do not at this time because AVEDA has pioneered the use of eco-friendly packaging materials and it is hard to find a product that even comes close to what they have already done.
The brand is AVEDA hair care products. People know of it to be an eco-friendly company that now is 100% vegan.
AVEDA’s official brand promise from their website is as follows “Aveda is a cruelty-free brand. We do not test on animals and never ask others to do so on our behalf. Our products are “people-tested.” I think they should add that they are 100% vegan and eco-friendly.
● AVEDA is People tested, 100% Vegan, and eco-friendly
● AVEDA is never: going to produce a product that goes against their mission.
AVEDA is strongly positioned as an all-natural and eco-friendly brand. There strategy should remain the same and they should continue to focus on their target markets.
Product Strategy
From beginning to end AVEDA is committed to sustainability. They develop containers and materials that meet the needs of the product, are sustainable, and lend themselves to optimal recycling. AVEDA has pioneered product sustainability and have partnered with several companies so that they ensure their mission is met.
Pricing Strategy
AVEDA has a huge mark up and its up to a salon owner to determine how high they want the product to sell for. AVEDA provides a range of cost for their target market. In Fairlawn, Ohio my target market is upper middle class so I would have the ability to sell it at a higher cost. In Chagrin Falls where I currently work a bottle of hairspray’s cost is $5 but our salon is selling it for $36. I don’t think we would be able to go as high, but I would say $29 for a bottle of hairspray would be a good target and appeal to my market.
Place: Distribution Strategy
Distribution will mostly occur in salons through direct sales and similarly there will be stores set up in high traffic areas where a customer can but AVEDA directly. E-commerce is another strategy we will use, and I think it needs to be utilized more. AVEDA has always valued the guest experience, but I feel the market is changing and they need to get on board with the changes.
Promotion: Integrated Marketing Communications Strategy
Approach
I have always thought of using a combination of social media (Facebook, Instagram, tic tok) I would create a commercial and boost in on the social media platforms that I mentioned. This technique especially works on Facebook, which is where most of my target market will be. One a customer makes it to the store; I will offer a promotional discount if they leave a google review. So, that would mean $5-$10 off there next in store purchase. I would also make raffle baskets for local fundraisers featuring our products. I would make sure to be involved in my local chamber of commerce for local exposure.
Goal
Audience: Upper middle-class moms who care about the environment but still want to use higher end hair care product that work and make their hair look great.
Call to action: Leave a google review of our product and get $5 off your next purchase.
Messages
1) Primary Message: AVEDA products are sustainable, work great, and are affordable
2) Message Pillar: AVEDA cares about the community, they get involved and are willing to give their product out for charity.
3) Call to Action: Come into store/salon and purchase product and get money off your next visit by giving your opinion.
Promotional Mix and IMC Tool
Digital Marketing
● Website: Will have testimonials, google reviews and a link to purchase product.
● Direct Marketing: Offering raffle baskets full of AVEDA products.
● Email marketing: Conduct email campaign with target audience list to generate awareness and interest in product and invite them to an open house featuring AVEDA products.
Sales Promotion + Digital Marketing
● Contest/giveaway: Offer product discounts for google review of AVEDA product used.
Sales Alignment
My sales campaign will generate leads; and build relationships/discover needs of my target market.
Measurement (KPIs - Key Performance Indicators)
The success of my campaign will be seen through these KPI’s
● Total sales/revenue- How much AVEDA product were we able to sell
● Number of qualified leads generated- How many people are interested in purchasing AVEDA and telling their friends about it.
● Engagement – How many people looked at the commercial, commented on it, shared it and then came into store talking about it.
● Followers - social media (Facebook, Twitter, LinkedIn, YouTube)- Did the follower account increase and was it will customers in my target market.
.
Budget
Item Purpose Cost Estimate
Total cost Budget for marketing campaign $2450
Item #1 social media $450
Item #2 Commercial $800
Item #3 Email list $1200
Reference:
beverlyboy.com
Facebook.com
Aveda.com
Activecampaign.com
Estimated campaign impact: [$2450]
Action Plan
Timing Activity Type Brief Description ` `Audience Owner
Today’s Date Example: Website Update Add new key messages Tech company/hiring managers Jim Hill
that fit repositioning strategy
and audience focus
Date Feb 1,2022 Create commercial Blitz studios llc Matt
Date Feb 15,2022 Obtain email list Exact data.com
Date Feb 16.2022 Write email and promotion
Date Feb 28, 2022 Create post for Facebook/Instagram Blitz studios Matt
Date March 1,2022 Send out emails Myself
Launch Date April 1,2022 Launch commercial and social media Myself
Risk Factors
Aveda needs to make sure they continue to solidify themselves as the top all natural, vegan, and eco-friendly company and make sure they build their e-commerce presence. They can do this by knowing who their target market is.
Because Aveda has been around for a long time the danger is that they will be labeled an “older persons product” which could deter new customers in their target market. There are many choices available in the organic hair care market, some that are trendier and fun, Aveda needs to learn how to compete and how to remain competitive with other brands that are organic.
Aveda consistently gets rid of popular products for new and improved products, and it is not always the best choice. Sometimes not changing what works for the majority is the best move to establish a strong brand.
CC LICENSED CONTENT, SHARED PREVIOUSLY
Flinders Business School Marketing Plan Template. Authored by David Medlow-Smith. Located at: https://archive.org/details/FlindersBusinessSchoolMarketingPlan2. License: CC BY-SA.
ORIGINAL CONTENT
SWOT and Integrated Marketing Communications Templates. Authored by Melissa Barker. License: CC BY: Attribution.
Revision and adaptation. Authored by Lumen Learning. License: CC BY-SA.
Revision and adaptation. Authored by Waymon D. “Wade” Hyde, faculty, El Centro College/Dallas County Community College District. License: CC BY-SA.
References
Aveda.com