ARTD 6051Marketing research proposal for expanding AVEDA sustainable business

University of Southampton

MA Design: Advertising Design

MA: Advertising Design Management

Name: Qianru zhou

Student ID: 22921869

16 January 2009

• AVEDA in nature products market1. Sales of organic products growth has slowdown (New York times)

2. AVEDA in narrow market share but with high brand value.

1. Green/Organic market is on positive trend thought it the growth decrease(Marketing Daily)

2. Greenmarket related to vast retails which imply a big market.(Grant J)

“Long term” refers to

1. Brand purpose: material is nature is sustainable

2. Brand strategy: sustainable business

• Green market with positive trend

• Sustainable development add brand value

Figure1:Organic product sales growth down

Source:

New York Times

Figure 4: Sustainable developmentSource:AVEDA

Figure 3: Green market

Source: Environment Leader

Join in the LOHAS(Life Of Healthy And Sustainable) market, target LOHAS consumer, advocate LOHAS lifestyle when serve customer

• Sale AVEDA products in green retails in order to target more LOHAS customers.

LOHAS market with $209 Billion businesses Opportunity, expected to quadruple by 2015 (GreenMonry Journal repots )

• Design Eco-label Design an Eco-label represents AVEDA with testimonial add value to brand and attract comsumer(Enviroment Leader).

Figure 3: Eco-labels impact

Source: Environment Leader

• LOHAS Theme activity in salon

Strengthen the benefit and importance of healthy product and LOHAS lifestyle in more than 700 AVEDAs’ salons and 20 concessions in stores ， proving healthy premium or special are better received than luxury .

Figure 4: AVEDA Salon

Source: AVEDA

• To identify why green product related to LOHAS are seen as healthy and ValuableProve opportunity in LOHAS market according to the marketing research report, journal.

1. Select the suitable range of the LOHAS market to represent the brand

2. Target the right consumer group

• To clarify customers’ attitude towards LOHAS products and lifestyle

Insight into the demands and behaviours of target audiences towards green/nature products, identify competitors, determine best way of push marketing

1. Do they buy green/nature product? Where they currently buy their nature skincare products?

2. What the ideal of healthy life style they are mostly interested in?

• To the company 1. Reposition and expand market, target more customer in green retails.

2. Re-interpretation the brand: Beauty as beauty does. Strengthen healthy life through the LOHAS theme activity. It is sustainable strategy to add value to brand.

• To customers 1. To know oneself and choose the suitable skincare product.

2. A good chance to get in to a healthy and sustainable lifestyle.

• Secondary soured data1. NBJ's Natural Personal Care Report 2008

2. Understanding the LOHAS Market Report

3. 2007 Organic Consumer Trends Report

Marketplace changes across organic. Opportunity analysis, new product development.

Sales channels (natural/healthy retail, department stores, boutiques, spas, multi level marketers, beauty supply discounters ,specialty personal care stores), especial focus on U.S market.

Competitors, communications development, and overall strategic planning

Source:Nutrition Business Journal

Source:Natural marketing institute

Source:Natural marketing institute

• Primary soured data

1.Face to face semi-structured interview in solon

Objective: Customers in solon

Data: Insight in to customers’ nature preference about green/healthy products and lifestyles

2. Face to face structure interview

Objective: Salon and green retail manager

Data: Get personal opinions, attitude, analysis of particular circumstance and data

3.Questionnaire through E-mail, journal, shopping mall, theme activity at scene

Objective: General

Data: Get statistics shopping habit, consumption level( price) according to age group, gender

2. Journal: Business Strategy and Environment Title:The Living Product – Using the Creative Nature of Metaphors in the Search for Sustainable Marketing

“living product metaphor as a tool for change we explore the potential for a reorientation towards organizational-environmental configurations” imply the business opportunity in green market.

• Possibility of LOHAS marketing

Strategic Decision

Source: Emerald

Business Strategy and Environment

Source: Emerald

1. Journal: Strategic Decision Title: Green marketing

Provide consumer trends and demographics present sample evidence

of a growing, thriving demand for green/sustainable products.

3. Newpapers : The Guardian Title: Dowry of earthly harmony: Reputations: The head of Aveda has made a mint out of his greener-than thou-approach.

'The most important thing about business is the intent behind it. I am interested in the long-term. Is the intent to serve beyond me? If it is only to enrich me, then it is certainly for nothing.'To figur out the creative nature distinguishing feature of Aveda product related to LOHAS/Green marketing.

• Consulting academic books and data(secondary data) 1. Actual time available

2. High costs of the academic marketing reports

• Administrative constraints of collecting Primary Data

1. The size of the research objective too small or not representative.

2. The target group may not work co-operatively in interviws or questionnaire

• Clarify four questions before making the market research

1. Clarify the market position, target group, and aim to LOHAS marketing

2. Clear decision according to the true value that consumers place on green benefits

3. Research design connect to research object, aim to collect accurate and full-scale data

4. Strengthen the theoretical underpinnings to support the research

• Clear target: How to expand market and to be on the top of green/organic market

1. When do green claims help a brand?

2. what are consumers really looking for in a green product or brand?

Baker, M.J Business and Management Research: How to complete your research project successfully, Westburt Publishers Ltd, Glasgow, Scotland LOHAS MEANS BUSINESS, Greenmoneyjournal, Publisher & Managing EditorCliff FeigenbaumEditor

Grant J,Green marketing, Strategic Direction, 2008 Volume: 24 Issue: 6 P25 - 27 ISSN: 0258-0543 DOI: 10.1108/0258054081086804 Emerald Group Publishing Limited

Ryle,S, Dowry of earthly harmony: Reputations: The head of Aveda has made a mint out of his greener-than thou-approach..The Guardian(London, England (Nov 22,1997) 24 Newspaper datebase, Gale University of Southampton 15 Jan.2003.

LOHAS Consumers Drive Charitable Donations, Environmental Leader, 12-29-2008

Martin, A,Business:Budgets Squeezed, Some Families Bypass Organics, New York Times, 10-31-2008

Mitchell1, K. I, Michael, S , The Living Product – Using the Creative Nature of Metaphors in the Search for Sustainable Marketing , Department of Marketing, Strathclyde Business School, Glasgow, UK