Marketing, theme of our latest e-news is a hot, disputed and instable area in any company. This week cosmeticos br speaks about social marketing on three great companies acting into the country: Natura, Avon and O Boticario. They have acting on different slops; sometimes crossing themselves in face of the marketing possibilities to attend society’s cravings, but along the years they attribute own personality to each company. Marketing, therefore, have a great responsibility in the company. It is through this tool inclusive, that great part of the results on sales appears, or is charged.
As shown by the repercussion of the Natura´s results announce last week. Major Brazilian cosmetic company, for the first time since it opened capital, in 2004, the company has presented on its 2006 fourth half, a 15.7% profits drop. Investors’ reaction came immediately after it: the stocks have dropped 13.7%.
It was an isolated fact in face of the company’s growing results, which has obtained in 2006 a net income US$ 220 mns, 16.1% more then the US$ 189 mns in 2005.
The main problem, according to Natura´s president Alessandro Carlucci, then in conference call and webcast, was a strategic problem with the Christmas promotions which have cannibalized regular products of bigger margin. As a direct selling company Natura use different marketing resources, besides the traditional propaganda, among them, motivation and campaign for the resellers, promotion and discounts that could repair the error, but not change its global marketing strategy.
Alessandro Carlucci, said that Natura doesn’t intends to chance its prices or modify its positioning. “The change will come on the marketing investments weight and among its different tools. Our goal now is to increase the efficiency of our strategies”, declared the executive. “It is possible even that the propaganda diminishes”.
“It will have a fine adjustment on the marketing tactics”, notify Jose David Vilela Uba, finances and information vice-president. “However, he said, the global strategy doesn’t changes. The concepts communication that distinguishes the brand, the portfolio, this strategy is victorious and for many years is sustaining our growth”.
Natura always invested on institutional campaigns that divulged its beliefs and values. It inaugurated with them the concepts of antiageing for different women ages, the scale use of actives from the Brazilian biodiversity in a sustainable way, the use of refills and of recycled packaging, campaigns valuing personal features of each woman, the Brazilian popular music and the cultural protagonism brought up on TV soap opera merchandising.
Marketing trends in a global world and each time more competitive in this new millennium are subjective: they point to the society and its citizens worries, under penalty of the companies not having them to their side, consuming its products.
So, actions that values the environment and the preservation of the species for the future generations, the woman, that all the researches point out as decision taker on consumption environment and the local cultures are being developed and adjusted by companies of all over the world.
Among them it is the global Avon, which has realized a worldwide research to detect the woman autonomy index in the world in 6 dimensions of their lives: health, education, work, economic independence, social participation and family.
Based on this research the company has announced, on the Woman International Day, the implantation of the Found Better Tomorrow, a sociocultural investment on people, which occurs simultaneously on 16 countries and that will finance US$ 124 thousand until the end of the year, to award selected projects that benefits the community, favoring the participation and the attendance to the women, children and young and promotes the culture, the education and the cooperative undertaking.
The simultaneous launch of the Better Tomorrow, Avon´s CEO, Andrea Jung was the hostess of the event Avon Global Summit for a Better Tomorrow, at the United Nations seat, realized in partnership with Virtue Foundation on 7th March. “We want to show how Avon is changing and, at the same time modifying women’s life of all over the world, through economic capacitating, innovative beauty products and corporative citizenship”, said Jung.
To implant and to turn real this concept, just in Brazil the company counts with more then one million brands resellers, which reached distant sites and of hard access such as Pantanal and Amazonian regions. They will be the agents that will indicate relevant organizations and projects for the development of their communities and will register them, from 02nd April, to concur to the award and implantation of these projects.
According to Avon communication director in the country, Carlos Parente, this is not only na inniative that follows a global market trend: “On Avon´s implantation, in 1886, David Mc Connell already spoke on corporative citizenship and, Avon Foundation, which was founded on the 50 decade already collected along its 15 years around US$ 500 mns and its resellers in the country already acted supporting around 400 thousand people on the Kiss for Life project of cancer combat”.
The major part of the great cosmetic companies worldwide invest in some kind of social marketing, searching to eliminate animal tests, as L´Oreal, which for years invest on researches in this sense, or more recently on the search of the pollution diminishing. The final consumer, which is attentive to the news and to the planet’s welfare to the next generations, is the responsible for these actions and the companies that search to listen to their craving have more chances on the shelves.
“This Avon action takes in consideration our consumer, our resellers and, yes, also the competitive environment. Avon come out ahead for having an action that proposes a better social environment and this is what makes Avon a great worldwide company”, says Silvana Cassol, Avon Brazil marketing director. “It is an optimist bet for the future, but with actions that starts on the present, supported on our capillarity, which will get to make move these actions and optimize this mobilization”, complements.
In another side and with strong investments on preservation, is O Boticario, major franchise brand with 2382 stores in the country, which divulged a 15% growth on its income in relation to 2005. The company hás donated last year U$ 1 mi to the Amazonian Protected Areas Program – ARPA from the Environment Ministry; it creates and maintains since 1990 the O Boticario Foundation of Nature Protection, with around 900 projects sponsored, on ecodevelopment and preservation of areas and animals of the Mata Atlantica, one of the most important and damaged Brazilian ecosystems.
The company has projects on environmental education and research and conservationist projects, such as the program After-Consume Recycling, of Support to the Sustainable Development and the Oasis Project, which creates a unprecedented system of payment for environmental services to owners of lands which compromise themselves to maintain integrally Mata Atlantica left over water sources areas, on the region of the Sao Paulo capital surroundings. The region is strategic for the environmental relevance and importance for the conservation of the hydro resources that guarantees the water provisioning to nearly 4 million inhabitants of Sao Paulo municipal district.
The social marketing initiatives, under corporative aspects or not, local or globally will be always welcome, while it favors society, environment, the citizens. However, the relevant of these actions which we argue here and of others that we may argue, is the companies and consumer awareness that there’s a lot that can be done and that the companies of the future, on the cosmetic area or not, will have a crucial social role on the social awareness and performance.