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Marketing Management (GSRM 7223) April 2020 Format Final Examination 1 Info on Final Exam: Date: 16/08/2020* Time: 9.00 am – 5.00 pm* Duration: 8 hours* Mode: Online* *As of 24 July 2020 However, please refer to announcement on the final exam, in your UNIEC Campus, as university may decide to change the date, time and duration of the exam anytime it thinks necessary. Format Total Marks: 50 Number of questions: 4 INSTRUCTION: 1. This is an open book exam. You may consult the learning materials that are provided to you in UNIEC Virtual – the textbook and reference book stated in the course plan, relevant company website plus the notes and videos. You are allowed to do internet research where necessary but are NOT allowed to plagiarize. Marks will be deducted if you are found committing plagiarism while answering this question paper. 2. Your answer can be type-written directly onto the ANSWER BOOKLET provided. Please ensure that your answer is numbered according to the question number and is following the sequence in the question paper. 3. If you chose to handwrite, use only blue or black pen, write legibly and clearly. Scan your completed answer and insert only ONE (1) image per page onto the ANSWER BOOKLET provided. 4. You have the responsibility to make sure that what you submitted is the complete FINAL version of your answer as no resubmission or correction is allowed. Follow the instruction given on the cover page when submitting your answer. 5. Submit your answers in ONE (1) file. Do not submit multiple files. Submission must only be in Microsoft Word. 6. This question book consists of ONE (1) section only. You are required to answer ALL questions. Marketing Management (GSRM 7223) April 2020 Format Final Examination 2 Some practice questions: Links provided just to give idea for you to answer the questions. Nevertheless, please do extra readings and updates. Avon: Is this the end of an iconic beauty brand? “Ding dong, Avon calling!” The old tagline from the 1950s and 60s made Avon a household name among the Babyboomer crowd… And now, the quintessential old-lady cosmetics brand. Even so, their status as one of the first major network marketing companies has made them the biggest name in the MLM space, rivaled only by Amway. Add to that their squeaky-clean reputation, and they’re unlike other MLMs that reek of manipulation and hype. But like other iconic brands that are losing their foothold or outright dying out (think Sears and Macy’s), Avon has been in a steady decline for the last decade. Clearly, they’re struggling to transition from door-to-door sales to e-commerce. Source: https://mlmcompanies.org/avon/ 1. Evaluate marketing environmental trends that are threatening cosmetic companies like AVON to stay competitive and eventually lead to brand name erosion. Support your argument with relevant examples. Read: 1. https://www.cosmeticsdesign-asia.com/Article/2020/06/17/K-beauty-s-post-COVID-19- future-Clean-hygienic-and-healthy-beauty-trends-set-to- soar?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright 2. https://www.cosmeticsdesign-asia.com/Article/2020/06/10/Singaporean-brand- mySKINBAR-looks-to-web-consultations-amid-COVID-19- restrictions?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright 2. Think of a trend in cosmetics industry recently. For example: https://www.forbes.com/sites/pamdanziger/2019/09/01/6-trends-shaping-the-future-of-the- 532b-beauty-business/#7fdc95ff588d a. Do you think AVON should sell the natural cosmetics in addition to their current product lines? Justify your opinions. b. Discuss the target market as well as create the marketing mix for this new product. Read: 1. https://en.wikipedia.org/wiki/Market_segmentation 2. https://en.wikipedia.org/wiki/Target_market 3. In designing marketing strategies, companies will need to adopt marketing orientations. Describe the marketing orientations available and elaborate on strategies that AVON can adopt and the strategies suitable for each orientation. http://mlmcompanies.org/amway/ https://mlmcompanies.org/avon/ https://www.cosmeticsdesign-asia.com/Article/2020/06/17/K-beauty-s-post-COVID-19-future-Clean-hygienic-and-healthy-beauty-trends-set-to-soar?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright https://www.cosmeticsdesign-asia.com/Article/2020/06/17/K-beauty-s-post-COVID-19-future-Clean-hygienic-and-healthy-beauty-trends-set-to-soar?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright https://www.cosmeticsdesign-asia.com/Article/2020/06/17/K-beauty-s-post-COVID-19-future-Clean-hygienic-and-healthy-beauty-trends-set-to-soar?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright https://www.cosmeticsdesign-asia.com/Article/2020/06/10/Singaporean-brand-mySKINBAR-looks-to-web-consultations-amid-COVID-19-restrictions?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright https://www.cosmeticsdesign-asia.com/Article/2020/06/10/Singaporean-brand-mySKINBAR-looks-to-web-consultations-amid-COVID-19-restrictions?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright https://www.cosmeticsdesign-asia.com/Article/2020/06/10/Singaporean-brand-mySKINBAR-looks-to-web-consultations-amid-COVID-19-restrictions?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright https://www.forbes.com/sites/pamdanziger/2019/09/01/6-trends-shaping-the-future-of-the-532b-beauty-business/#7fdc95ff588d https://www.forbes.com/sites/pamdanziger/2019/09/01/6-trends-shaping-the-future-of-the-532b-beauty-business/#7fdc95ff588d https://en.wikipedia.org/wiki/Market_segmentation https://en.wikipedia.org/wiki/Target_market Marketing Management (GSRM 7223) April 2020 Format Final Examination 3 4. You have just been hired as a product manager to manage a new ‘natural cosmetic launched by AVON. Propose ‘’product’’ and ‘’promotion’’ strategies as the product goes through the FOUR (4) Product Life Cycle (PLC) stages, namely Introduction, Growth, Maturity and Decline. Read: https://www.nibusinessinfo.co.uk/content/product-life-cycle-strategies 5. When a celebrity brand ambassador is involved in a controversy, discuss the effect to the customers’ purchase intention towards products endorsed by him/her. Support with evidences of local and international endorsers who were involved in the same situation. Justify your answer. Read: 1. Mobinil and Sawiris case - https://www.independent.co.uk/news/world/africa/islamic- mickey-mouse-provokes-anger-in-egypt-2304029.html 2. https://www.businessinsider.com/nike-kobe-bryant-products-removed-website-2020-1 3. https://en.wikipedia.org/wiki/Celebrity_branding 4. Wikipedia: Celebrity endorsement 5. Celebrity endorsement AND brand equity 6. Celebrity endorsement AND controversy 6. In the situation where celebrity is no longer around to endorse the brand, what will happen to the brand equity? Read: 1. https://www.businessinsider.com/nike-kobe-bryant-products-removed-website-2020-1 2. https://en.wikipedia.org/wiki/Forbes%27_list_of_the_world%27s_highest- paid_dead_celebrities 3. Google scholar: The impact of death on consumer responses to celebrity endorser misbehavior 4. https://www.forbes.com/sites/steveolenski/2017/06/12/the-branding-of-dead- celebrities/#2f0967216d80 Avon Company Overview Headquartered in London, England, Avon is a multibillion dollar direct sales company that focuses on beauty, personal care, and household products. In terms of revenue, they are the second largest MLM company (right behind Amway) and the fifth largest beauty company on the planet. https://www.nibusinessinfo.co.uk/content/product-life-cycle-strategies https://www.independent.co.uk/news/world/africa/islamic-mickey-mouse-provokes-anger-in-egypt-2304029.html https://www.independent.co.uk/news/world/africa/islamic-mickey-mouse-provokes-anger-in-egypt-2304029.html https://www.businessinsider.com/nike-kobe-bryant-products-removed-website-2020-1 https://en.wikipedia.org/wiki/Celebrity_branding https://www.businessinsider.com/nike-kobe-bryant-products-removed-website-2020-1 https://en.wikipedia.org/wiki/Forbes%27_list_of_the_world%27s_highest-paid_dead_celebrities https://en.wikipedia.org/wiki/Forbes%27_list_of_the_world%27s_highest-paid_dead_celebrities https://www.forbes.com/sites/steveolenski/2017/06/12/the-branding-of-dead-celebrities/#2f0967216d80 https://www.forbes.com/sites/steveolenski/2017/06/12/the-branding-of-dead-celebrities/#2f0967216d80 Marketing Management (GSRM 7223) April 2020 Format Final Examination 4 Brand Asset Valuator MOdel 7. AVON has been relying on the MLM business model. The current findings also found that AVON is low on differentiation and relevance. In terms of brand personality, AVON is also in trouble. Should AVON move to adopt hybrid business model that include brick-and-mortar stores as well as online stores in the future, in the aims to strengthen their brand personality? Justify your opinions. Read: Marketing Management (GSRM 7223) April 2020 Format Final Examination 5 1. https://www.investopedia.com/terms/b/brand- personality.asp#:~:text=Brand%20personality%20is%20a%20set,a%20specific%20cons umer%20segment%20enjoys. 2. https://www.bavgroup.com/about-bav/brandassetr-valuator https://www.investopedia.com/terms/b/brand-personality.asp#:~:text=Brand%20personality%20is%20a%20set,a%20specific%20consumer%20segment%20enjoys. https://www.investopedia.com/terms/b/brand-personality.asp#:~:text=Brand%20personality%20is%20a%20set,a%20specific%20consumer%20segment%20enjoys. https://www.investopedia.com/terms/b/brand-personality.asp#:~:text=Brand%20personality%20is%20a%20set,a%20specific%20consumer%20segment%20enjoys. https://www.bavgroup.com/about-bav/brandassetr-valuator