MNG93003: Promotions & Consumer Behavior in the Cosmetics Industry

This report investigates the impact of promotional activities on consumer buying behavior within the cosmetics industry, focusing on Avic Company in Australia as a case study. The research explores how price promotions, non-price promotions (product and advertisement), and overall marketing strategies influence consumer decisions. It addresses the overarching problem of Avic's less organized promotional activities and aims to identify strategies for capturing a wider market. Key research questions examine the effectiveness of promotional activities, the impact of price and non-price promotions on consumer demand, and the role of advertising in enhancing consumer behavior, ultimately providing insights for Avic to improve its market presence and consumer engagement. Desklib provides a platform to access similar solved assignments and past papers for students.

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Impact of Promotional Activities on Consumer Buying Behavior. A Study on Cosmetics
Industry
Course
Professor
University
The City and State
Date

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Introduction
This study will engage a case of Avic Company in Australia that serves both domestic
and international markets. It is a cosmetics firm that specializes in beauty and personal care
business. The company is tasked with the role of assembling personal care products and applying
chemicals, herbal and natural material obtained from suppliers to produce a quality cosmetic
brand. Avic Company is present in 5 other countries apart from Australia. The company adheres
to international standards of maintaining environment conditions such that they emit harmless
gases to environment. The market target for Avic Company is always on the urban landscapes
represented by individuals mostly ladies with 25 to 45 years of age. The company employ strong,
specialized women, educated and interested on their outlooks. These individuals always
appreciate quality brands and mindful to all details. It sales are conducted directly through a sales
system. It was founded in 1967 with 2 registered Avic representatives who later became sales
directors in Australia.
Research Field
This research aims at solving the promotion issue in Avic Cosmetic Company. This is
because promotion is an element of marketing that focuses on the activities done to widen the
market share to provide important information to satisfy their wants. There are several types of
promotions that include price promotions, non-price promotions, and sales promotions.
Incorporating these aspects might lead to a positive consumer behavior towards Avic’s products
Overarching Problem
Besides being one of the most successful cosmetic company globally, Avic is faced with
several challenges that should be addressed. The most common issue is its promotional strategy.

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Its promotional activities are not well organized and prioritized. This has less promotional
activities towards its consumer hence low consumption of their products. Furthermore, the
company does not focus on expanding its image globally compared with other global players.
Avic should address all these issues to have a wider market since there are many potential
consumers out there.
Overarching Research Aim
This research aims at investigating how promotional activities can positively enhance a
consumer behavior. It stipulates three aspects that include price promotions, non-price
promotions, and advertisement. Price promotions involve the discounting of product prices. It is
also known as price-offs since it offers a specification aspect to the consumer when making a
purchase. Avic Cosmetic Company should employ this technique since it is simple to control
such that the firm can independently decide to increase or decrease the number of brands to
promote at any given time. The use of coupons and rebates can also influence a consumer at the
point of purchase. Coupons are provided before purchase while rebates are given afterward (Yeh,
T.M., Hsieh, P. 2015, 35)
Avic Cosmetic Company should employ non-price promotions providing two aspects that
include product promotions and advertisements promotions. Product promotion is helpful in case
Avic is introducing a new brand to the market. Sampling strategy should also be applied to new
products to attract new consumers. For example, a sample of a product is provided to consumers
for free or in other instances a low price is charged so that the new brand can be influential in
future purchases (Chan, Y.Y, Mansori, 2016).

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Advertisements can also influence the customer behavior and lure them to make more
purchases. For the Avic Cosmetic Company, reappearance in advertisements inspires the
judgment of the consumer that assist in keeping the information of the product in their mind
hence more purchases.
Research Questions
 Do promotional activities help in capturing a wider market? What activities should the
company undertake to improve its consumer market?
 How does price promotion affect consumer demand? Do non-promotional activities
influence consumer behavior? Does proper advertisement enhance consumer behavior?
References

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Vlahos, A. and Bove, L.L., 2016. Went in for Botox and left with a rhinoplasty: The ethics of
customer relationship marketing practices for non-surgical cosmetic procedures. Marketing
Intelligence & Planning, 34(7), pp.927-942.
Yeh, T.M. and Hsieh, P.L., 2015. Measuring brand equity of cosmetic chain stores by hybrid
multiple criteria decision making methods. International Journal of Services and Operations
Management, 21(1), pp.27-49.
Chan, Y.Y. and Mansori, S., 2016. Factor that influences consumers' brand loyalty towards
cosmetic products. Journal of Marketing Management and Consumer Behavior, 1(1).
Yeh, T.M. and Hsieh, P.L., 2015. Measuring brand equity of cosmetic chain stores by hybrid
multiple criteria decision making methods. International Journal of Services and Operations
Management, 21(1), pp.27-49.