Marketing Strategy Aveeno Research Paper

Achieving a significant advertising presence must take into account the fact that Aveeno ranks only sixth in total media dollars among leading health and beauty brands:

Major Objectives, Goals and Strategic Action Programs

The directive is to grow unit sales of Aveeno Skin Relief Body Moisturizer by from 5% to 25% within the next 12 months.

Implicit in this is the longer-term business objectives of Aveeno Inc.:

1. Expand the business aggressively and offer above-average returns to shareholders.
2. To become the preferred brand of choice for sensitive skin.

The brand strategies that will drive these business goals are:

For R and D to rapidly extend Aveeno offerings into essential ingredients consistent with care for dry and sensitive skin: vitamins A, C, and E; co-enzyme Q10, ceramides, high-absorbency nano-molecule penetrators, alpha hydroxy acid (AHA) to hasten regeneration; ingredients to minimize cellulite; co-enzyme Q10 and isoproteins to promote firmness and elasticity; and Retinol, a vitamin A derivative with proven wrinkle-effacement effect.

Achieve a dominant share of mind by energetically tripling the advertising budget (from $128.1 million in 2008) to $400 million by the end of the 2009 fiscal year.

Reinforce the bandwagon effect of a greatly enhanced media budget by spreading presence across all 18 types of mainstream and online media Ad Age (1) monitors: magazines (consumer, Sunday, local/city, but not business-to-business magazines); newspaper—local and national newspapers (with free-standing, full-color inserts used judiciously); television (free-to-air network TV, spot TV, syndicated TV, and network cable TV); radio—network, national spot and local; Spanish-language magazines, newspapers and TV networks; outdoor; and internet (display advertising and broadband video only, e.g. YouTube).

Re-target from the crowded 20-34 years consumer segment toward 35 to 55 years, the “mature” age cohort that has very real concerns about wrinkles, other signs of aging, and sensitive skin increasingly ravaged by outdoor sports.

Achieve an authoritative tone by running a complementary campaign of advertorials where dermatologists advise daily regimen care to preserve youthful looks and sensitive skin from the ravages of exposure to the sun and environmental pollution.

Pursue strategic alliances by at least seeking a standalone merchandising presence in day and resort spas.

The Brand Reconsolidation Strategy: Advantages and Disadvantages

There are two alternatives for strengthening the brand franchise and driving sales goals. The first involves co-promoting Skin Relief Body Moisturizer with another entry in the brand line. The preferred second alternative calls for reconsolidation and promoting set sales.

In the latter case, Skin Relief BM will be highlighted as the core product but within what is in effect a bundling promotion inducing women to bring home a complete skincare regimen including body/bath, sun care, and trial packs for the facial care, lip care, antipruritics and anti-infectives. And to be single-minded about it by not including the baby care line. This can be packaged as the “Vital Woman’s Complete Home Spa for Keeping Mature Complexions Looking Young,” the kit includes Sea Salt Body Polishing Scrub and a supply of scrub mittens.

This reconsolidation strategy bears multiple advantages and no foreseeable drawbacks.

Internally, marketing the “Complete Home Spa” concentrates the disparate advertising budgets of what is already a fragmented brand line with numerous extensions. Externally, the strategy aims to make Aveeno the best-recognized name in the health and beauty business. On the sales front, selling the “Spa” kit is bound to enhance aggregate market share by displacing Eucerin, Olay, and even Claritin from the choice set of women who already find a reason to like Skin Relief BM. Assembling all the skin treatment and enhancement needs of women maximizes the share of the $500 per-capita outlay on skincare and hence, can be expected to yield a large increase in company revenue. And most significant of all, the marketing strategy addresses women’s need for body pampering in do-it-yourself style whether or not they can still afford to patronize spas in these parlous recessionary times.

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