Competitive Profile Matrix for Avon Draft Final

Running head: COMPETITVE PROFILE MATRIX 1

Competitive Profile Matrix for Avon Daisy Urrutia January 23, 2015 Prof. Rocco

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Competitive profile matrix is a strategic management tool that is used to compare basically the same industry company with their major competitors. This tool can evaluate the strength and weaknesses of a company. It is measured based on the success factors. One is represented as poor, two as average, three is considered above average and finally four as superior. The weight is a necessity to indicate the importance factor of the company’s industry. The range is from 0.00 to 1.00, which is means that 0.00 is not important and 1.00 indicates most important. The weighted score is calculated by using the weigh and multiplying by the rating. The same is used for each competitor on the matrix. (Ozyasar, n.d.) When it comes to advertizing, Avon relies on the catalog that representatives show the consumers. The website is another form of advertizing that the cosmetic company uses in combination with the paper catalogs that are left in offices and consumers homes. Avon does not use television commercials to advertize; the website and representatives contacts are the reliable source to advertizing. Technology is for Avon rates high as the website is the primary source of financial stability. In today’s world a company without a website will struggle and possibly fail. Revlon relies more on having their cosmetics on the shelves instead of using the website. Mary Kay is also savvy in the website but wants to incur sales by way of the representatives to create incentives and income for the individual members. Product safety is a great quality that Avon has over the competitors. It is considered strength in my opinion to care for the consumers that are relying on their products. When comparing to Mary Kay for instance, in which they rate average. (Mary Kay Corp., n.d.) Price competitiveness is strongly held by Revlon. Mary Kay has a rate of average while Avon is consuming above average. Revlon has great pricing on the cosmetics; it could be the options in the

3 COMPETITIVE PROFILE MATRIX product lines. The price is so comfortable when buying it from the shelves. Mary Kay has an above normal price. This may mean that the products are better scientifically made. A tube of shiny lip-gloss cost $14.00; Revlon has the same lip-gloss for $6.49 in the drugstores. Avon has affordable prices for their lip-gloss, they are between $.99 to $6.00. Significantly lower than the competitors. (Revlon Inc., n.d.) (Mary Kay Corp, n.d.) (Avon Products, Inc., n.d.) Not all is great in the cosmetic industry; I have noticed the employee moral incredibly low for both Mary Kay and Avon. This could be for the high demand that stresses the sales representatives to push and activate the self-esteem for their financial outcome. Motivation is hard to get when a representative is not surrounded by others of their class. The competitor Revlon has a better advantage in rating for having happier employees. See Apendix A

4 COMPETITIVE PROFILE MATRIX Avon Products, Inc. (n.d.). Avon make up. Retrieved 2015, from http://www.avon.com: https://www.avon.com/category/makeup/lips Mary Kay Corp. (n.d.). Mary Kay sparkle. Retrieved 2015, from http://www.marykay.com: http://ecatalog.marykay.com/us_en-us/GetLatest.aspx? d=www.marykay.com&m=0&t=Look_Book Mary Kay Corp. (n.d.). Values. Retrieved from http://www.marykay.com: http://www.marykay.com/en-US/about-marykay/rnd/pages/valuesproductpromise.aspx Ozyasar, H. (n.d.). What does the CPM Matrix Do? Retrieved 2015, from Small Business Chron: http://smallbusiness.chron.com/cpm-matrix-do-67032.html Revlon Inc. (n.d.). Revlon love is on. Retrieved 2015, from http://www.revlon.com: http://www.revlon.com/products/lips

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Appendix A: CPM AVON

REVLON

Weight

Ratin g

Advertising Customer Loyalty Employee Morale Financial Position Global Expansion Market Share Organizational Structure Price Competiveness Product Image Product Quality Product Safety

0.10 0.10 0.07 0.08 0.09 0.07

2 2 2 4 3 2

Weight Scored 0.20 0.20 0.14 0.32 0.27 0.14

0.04 0.10 0.05 0.10 0.10

2 3 3 2 4

0.08 0.30 0.15 0.20 0.40

4 4 4 3 3

Technology

0.10

4

0.40

2

Total

1.00

Critical Success Factors

2.80

Ratin g 4 4 4 3 4 4

Weight Scored 0.40 0.40 0.28 0.24 0.36 0.28

MARY KAY Ratin g 1 3 1 2 2 3

Weight Scored 0.10 0.30 0.07 0.16 0.18 0.21

0.40 0.20 0.30 0.30

3 2 2 1 2

0.12 0.20 0.10 0.10 0.20

0.20

3

0.30

0.16

3.52

2.04