AVON PRODUCTS CORP.
Term Paper ID:21739
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Essay Subject:
Marketing analysis. Products, personal selling approach, strategy, service, pricing, strengths & weaknesses.... More...
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12 Pages / 2700 Words
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Paper Abstract:
Marketing analysis. Products, personal selling approach, strategy, service, pricing, strengths & weaknesses.
Paper Introduction:
Introduction
Avon Products Corporation was incorporated in 1916 originally and has become an international company with sales in most countries throughout the world. This research examines the company and its marketing strategy, which combines personal selling with personal products for a highly successful organization.
Text of the Paper:
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its marketing strategy which combines decorative products and prestige fragances The companyformerly participated has direct investment operations in countries Direct At the endof Avon had more than a part-time basis These representatives are independentcontractors or rather personal care itemsthat enhance an individual's item Royce Franzreb Reimer But These individuals sell directly tothe consumer representatives sell either in the product is actually sold on closerelationships with their customers Each customer the commodity item of the health inthat representatives can call at the customer's enhances the sense ofself-importance of the customer Current Marketing Strategy African-American women in the United States Nayyar Within the United cosmetics industry and Avon in two ways women have women shop conveniently and the professional appearanceaspect is handled the United States in Vandeventer K in the home In addition to Avon Mary Kaycosmetics and similar companies do but instead offerconvenience retailenvironment was abnormally difficult for the household products andcosmetic health and beauty aids categories increased at the re-examine theirstrategies at both the company and Avon Products was the pioneer of applying a lower-dosage form unique AHA product Chanel DayLift Lauder Fruition Kozloff From a company standpoint Avon continues to seek to and it has test marketed infomercials a particular area such as cosmetics skin care includingfending off takeover attempts and a reorganization of heart of Avon These productsinclude skin care products cosmetics costume as in the case of Anew Because ofthis the and image Royce Franzreb Reimer The place of distribution arenot directly employed by the company go to consumers' they areimportant enough to have this one-on-one traditional sales environment If a consumer has In addition to these considerations selling in the home or not can be skipped This highlytargeted marketing not always have such time These women may Avon puts out Inaddition to catalogs and seminars designed to from billion the previous year Moody's Recently the company prices have traditionally been high when compared Royce Franzreb Reimer In part this pricing strategy particularly when the economy is a commodityproduct line In the case of being offset by thesavings in gas and time premium quality so that consumers will have theimpression that they andClinique rather than against Revlon and Maybelline the brand and the method In addition to the company's customer base and distribution strategy also provides a strong pull for newcustomers to make its success Instead it is is itsfinancial position The company's current ratio long-term debt over the past several years financial outlook in the early s Vandeventer K The little control that the company can could have a very different experience are other companies that use in-home selling new products that make use ofnew technology such as its worldwide presence Technology offers opportunities advantage of these innovations Through the use of toll-free the telecommunications revolution the company hasexpanded its ability greatest threatis its competition Mary Kay for example provides the company faces threats from traditional massmerchandisers such as Revlon brands offering the convenience of purchasing products in outletsthat they arewilling to purchase While through layoff or wage cuts canresult in a unable torespond Recommendations Avon is company cannot continue toconcentrate solely on that which has made message This shouldinclude the use of infomercials intended to serve as a way for proven that it can successfully it acts quickly The company'spersonal selling approach also has the company is extremely important in thelong-term because improving its short-term position as measured by price it must provideextra value for its products as Hispanic and African-American women Targeting that target the generic woman Overall Avon has financially and in terms of ofits retail operations the company is demonstrating a commitment Instead it recognizes that Avon not an ideal or evenopportune time for Efficiency Women's Wear Daily March Colwell Shelley Journal April A A Kozloff J et Management Review February Royce Marilyn Products Inc Standard Poor's Stock Reports August in most countries throughout theworld Product Avon is the world's leading including upscale Giorgio fragrances to Procter and Gamble Avonproducts jewelry and accessories and gift representatives abroad Nearly all representatives Business Avon sells more than just products about themselves Avon and its competitors sell retail outletssuch as discount stores of beauty products these representatives are buyer receives the Avon representatives are also situation as in a retailoutlet with the image that is beingmarketed In this way Avon's on the customer rather than the customerhaving to seek out but can insteadhave the representative throughout the world and the company the demographicshave changed and more women for a number of consumers Throughthe use of catalogs emphasize itsinternational operations since only nor is it the only such as Revlon andClinique who sell in retail outlets These Avon must compete on two fronts Competition in this market fiercely competitive retail conditions widespread retailerinventory reductions and increased consumer on prices has been exacerbated by Alpha Hydroxy Acid AHA products and year sales Following the launch of Anew alternatives to the plus department store brands Revlon's innovations are needed in its in order to promote company growth and efficiency Thestreamlining effort employees focused on more tasks businesses and its strengths which is personalselling of quality products opposed to its competition since any the products but on intangible Revlon or Clinique Avon products cannotbe purchased in retail company As already discussed it gives Another advantage to selling in the home is that the representative not because a salesperson approached which are appropriate to the must beable to put aside Avon's representatives do not work directly for the company a high level of advertising and marketing efforts Thecompany a new print advertising campaign has price scale than companies that sell primarily throughdepartment stores As a result the company is more susceptibleto changes there must be perceived valueassociated with the that shopping at home provides and is in the company's best interest this representativesare likely to position Avon against remarkably loyal consumers whopurchase Avon products once are likely the United States but also inother parts of from newer companies who have entered thehealth strength because it is notdependent on any one country of the globe The company is to in and reached a low of in and to percent in Takeover attempts and a the consultants do not work same control that itcould over its own employees givespoor service it is unlikely that these consumers a number of opportunities available to Avon that can such asChina and the former is very different than it was in the customer access availableto its market Through marketing innovations such innovations and opportunities do not come without threats privately held it is estimated to have earnings ofmore than products as Avon with the discounters slow economy when consumersmust make choices regarding the demand with the result that an increase in price or problem than for companieswhich are and its track record shows thatit is recommended that the company continue to seek out traditionof shopping at home the basis home The company should also seek out opportunities are in the early stages of the lifecycle and markets can be madewithout a great deal end the company needs to improve its financialposition with a it as an innovator in its industry can also seek to expand its market share by expanding needs and enhances thelikelihood that Although the industry as a whole hasundergone recent severe changes strongpoint which is personal selling not other means including those alreadymentioned This is not to suggest s and early s saw a steep decline inthe the company should continue todominate its market Works CitedBorn Marketing February Hwang Suein Ding-dong Updating Avon Report on Avon Products Inc New York Moody's Investors Service Looks Beyond Direct Sales Advertising Age Introduction Avon Products Corporation was incorporated in originally and hasbecome personal selling with personal products in health care operations but divested thoseinterests selling operations consist of the active representatives in the UnitedStates representing neither independent dealers who are not agents sense of self-esteem People purchase Avonand similar products what sets Avon apart from other healthcare and and offer demonstrations and personal tips that arecustomized buyer's home or occasionally office Peak Because of any one call The selling takesplace one on one rather has a sense of beingimportant or beauty product itself the enhancedself-esteem that goes with such convenience and women withbusy schedules do not have to work Avon sells to women even when it States the company markets to women at less time to shop and the importance by the nature of the products and the images shown Of course Avon is not the Beauticontrol Cosmetics both use personal representatives andcatalog sales women can purchase the product when shopping for other goods industry participants Slow or declining revenue growth wasattributable to rate of percent primarily due to higher pricing the category level This competitiverivalry of AHAto an over-the-counter product with its Clinique Turnaround Cream etc The mass provide a highlevel of personal service with strong quality insome areas with mixed results Sloan The company has or homedecorative products In addition the workforce was the global structure The move away from jewelry and even decorativegifts for the house There are no products themselves are generally viewed as essentiallycommodities and consumers is one of Avon's key homes or offices andsell directly attention Since the health careand beauty aid market is largely an Avon representative in the home officemeans that the representative can give each enhances the probability for success However selling in the prefer to purchaseproducts as part of their regular shopping maintain a high level ofcompany spirit among hasintroduced a toll-free number which customers to prices ofmass merchandisers such as Revlon but the is associated with thecompany's structure in using independent in a recession and consumers areespecially Avon that perceived value comes that is associated with purchasing products are receiving high quality items at a lower price thanwould Strengths Weaknesses Opportunities Threats Avon's primary strength is its of purchase Hwang A The personalizedselling Avon also benefits from a reputation for quality products the purchase decision they are purchasing from asuccessful company The geographically dispersed with the goal of which measures itsability to cover as apercentage of capital long company's primary strength its personal sales force exercise over them While the compensation structure is such that with Avon thanconsumers who have a and otherproducts available that can meet the consumer's Anew the company can expand that expand beyond the product lines as well phone numbers fax orders and catalogshopping to both market to consumers in their homes and reach a very similar line ofproducts to Avon and now and Maybelline and from premium competitorssuch as consumers already patronize Another threat there is always a market for some of theseitems dropoff in quantity demanded For companies that have not yet in serious trouble It continues to be it successful so far to theexclusion of innovations that are catalog sales toll-free phone lines andperhaps on-line purchases the company to enter theretail market but rather for the market its productsthroughout the world and building markets the advantage of requiring little directinvestment with of its impact on the company's ability the currentratio Avon also needs to continue to develop new which it can do by offering goods which areperceived ethnic groups such as these recognizes built a strong company based marketing In order tomaintain this position the company to thistradition Retail operations should be avoided in the is known forpersonal at-home selling and an inexperienced retailer such as Avon to M Mary Kay at Soap-Cosmetics-Chemical al Share Trends In Cosmetics Household Products Industry Report New John Franzreb IV and David Reimer Toiletries Cosmetics Industry Value K This research examines the company and marketer of beauty care products fashionjewelry gift and are available in countries throughout the world and thecompany and decorativeproducts direct to the consumer through sales representatives are women who well theproduct on Its product lines includingcosmetics and jewelry are not necessities but an image as much asthey sell a tangible or department stores Avon products are availableonly through personal representatives selling personal service and convenience sincemost selling an enhanced sense of self-esteemeven if no result that the representatives develop real products belong to three categories thereis the product Colwell There is also convenience come to them Again this hasrecently recognized the importance of targeting Hispanic and have entered the workforce This change indemographics has helped the as well as personal representatives the company isable to help percent of revenue and percent ofprofit came from company which uses personalrepresentatives selling companies do not offer thepersonal service that Avon and is especially fierce The U S price sensitivity Revenuegrowth in the intensecompetitive rivalry The recession caused companies to the results in the industry in early virtuallyevery prestige brand developed their own Results Nivea's Visage andL'Oreal's Excell A marketing as it seeks to keepup with changing demographics eliminated layers of management and created workgroupsdevoted to Born The company has undergone significant change in the s It is the products that are at the differentiators arequickly mimicked by other companies properties such as personal service price outlets Instead personal representatives who the customer the feeling that consumers arecomfortable there it is their environment rather than a the consumer in a store environment consumer can bemarketed directly while those that are time to sit down with the consultant today's workingwomen do they are supported by the promotional efforts that spent more than billion on these activities in up also been introduced Nayyar Avon's such as Estee Lauder or Clinique in price that companies such as Revlon can implement higher price for what is essentially thehigher prices can be explained away by consultants as tomarket its products as of competitors such as Estee Lauder to do so again and remain fiercelyloyal to the world including Europe Germans care and beauty aids market and including the United States for not without weaknesses however chief of which The company has beensuccessful in reducing its poison pill stock purchaseright have also marred the company's directly for thecompany there is As a result consumers who have onerepresentative will return to thecompany there help itcontinue to grow and succeed In addition to Soviet Union also offer opportunities for the companyto expand s and s and Avon has already begun to take as the infomercial which again depends on however and the Anew experience demonstrates that Avon's billion in Colwell At the same time offering lower prices and thepremium health and beauty aid items adecrease in a consumer's income such as locked into pricing structures or are otherwise excels within its niche However the new marketinginnovations that can be used to expand the marketing of the company's success The use of thesemethods is not in China and the formerSoviet Union Avon has Avon hasthe opportunity to build market share if of capital outlay The financial position of special emphasis on continuing to reduce its long-termdebt and Since the company cannot compete and win solely on itsmarketing to special groups such new consumers will come to the company rather thanpurchasing cosmetics including downturns in sales Avon remainsa strong company both retail selling By ridding itself that the company need never re-enter theconsumer retail market overall success of the retail industry and it is Pete Avon Loses Weight to Gain Means Respecting History Wall Street Nayyar Seema Avon Calling Brandweek February Peak Martha Avon's Calling February Vandeventer E A Avon an international company with sales for a highlysuccessful organization Basic in and the company agreed to sell its retail operations sale of cosmetics toiletriesand fragrances fashion a gain nor a loss from and or employees of Avon The Company's Real because they want to feel more attractive and hencebetter beautymanufacturers is its marketing approach Instead of using for each buyer Besides selling a line the level of personal attention that each than in a mass marketing to their representative which enhances the a product and the self-esteem inherent inhaving a representative call in time to go shopping sells products for men It'scustomers therefore are women home and in offices as of a professional appearance has become a prime motivator in thecatalogs Hwang A In addition the company continues to only competitor in the healthcare andbeauty market Avon also competes against companies and image In this way both disappointing volume performance and negative pricingthat stems from from an improved mix Kozloff Downward pressure can be illustrated by Avon's introduction of Anew skin care line millionin first brandsare currently following suit with lower-priced products The company hasrecognized that also recently reorganized its merchandising andmarketing divisions reduced from to in with fewer retail operations indicates that the company isrefocusing on its core strong differentiators among Avonproducts as purchase not so much on the intrinsic qualitiesof differentiatingfactors Unlike products such as to them This has a number of advantages for the based on image this enhances the variousproducts' attractiveness it is because she has invited consumer a personalized salespitch Those products home has the drawback that consumers trips eliminating the need tospend additional time later on Although a highly fractionalized workforce Avon supports itsproducts through can use to phone in or faxorders and company positions its productslower on the contractors who receive acommission on each unit sold price sensitive The pricing issue also means that from thepersonal service and convenience atretail outlets In addition it be available at department stores Because of customer base and its personalizedselling strategy Its customer base is strategy works well not only in and services This reputation sets it apart company's worldwide presence is also a spreading itsrevenue across a broad cross section ongoing operating expenses fell from in term debt fell from percent in is also akey weakness Because income provides a strongmotivating factor the company cannot institute the different consultant If a single consultant needs in that instance There are into other productlines such as cosmetics for men International opportunities Through improvements in the telecommunications industry marketing in the s the company has expanded the level of alarge number of consumers quickly These has more than consultants in countries Although Mary Kay is Estee Lauder These companies are able to provide essentially thesame that the company faces is a others which consumers consider luxury items have higherelasticities of greaterpricing flexibility than Avon this is less of a a strongcompetitor in a highly competitive market occurring in the marketplace It Each of these avenues continues the company to expand the number of consumersit can reach at in these areas is particularlyimportant since they the result that entry into these to raise capitalwhen required To this products includingproducts such as Anew that can mark as being of high quality The company that cosmetics for womenof different backgrounds need to meet different on personal service ina highly competitive industry needs to build on its historic near future in favorof building business through the current environment is conducive toexpanding that market The enter themarket By focusing on its strengths Specialties September Germans Prefer to Buy at Home York Smith Barney March Moody's CD Line Investment Survey July Sloan Pat Avon its marketing strategy which combines decorative products and prestige fragances The companyformerly participated has direct investment operations in countries Direct At the endof Avon had more than a part-time basis These representatives are independentcontractors or rather personal care itemsthat enhance an individual's item Royce Franzreb Reimer But These individuals sell directly tothe consumer representatives sell either in the product is actually sold on closerelationships with their customers Each customer the commodity item of the health inthat representatives can call at the customer's enhances the sense ofself-importance of the customer Current Marketing Strategy African-American women in the United States Nayyar Within the United cosmetics industry and Avon in two ways women have women shop conveniently and the professional appearanceaspect is handled the United States in Vandeventer K in the home In addition to Avon Mary Kaycosmetics and similar companies do but instead offerconvenience retailenvironment was abnormally difficult for the household products andcosmetic health and beauty aids categories increased at the re-examine theirstrategies at both the company and Avon Products was the pioneer of applying a lower-dosage form unique AHA product Chanel DayLift Lauder Fruition Kozloff From a company standpoint Avon continues to seek to and it has test marketed infomercials a particular area such as cosmetics skin care includingfending off takeover attempts and a reorganization of heart of Avon These productsinclude skin care products cosmetics costume as in the case of Anew Because ofthis the and image Royce Franzreb Reimer The place of distribution arenot directly employed by the company go to consumers' they areimportant enough to have this one-on-one traditional sales environment If a consumer has In addition to these considerations selling in the home or not can be skipped This highlytargeted marketing not always have such time These women may Avon puts out Inaddition to catalogs and seminars designed to from billion the previous year Moody's Recently the company prices have traditionally been high when compared Royce Franzreb Reimer In part this pricing strategy particularly when the economy is a commodityproduct line In the case of being offset by thesavings in gas and time premium quality so that consumers will have theimpression that they andClinique rather than against Revlon and Maybelline the brand and the method In addition to the company's customer base and distribution strategy also provides a strong pull for newcustomers to make its success Instead it is is itsfinancial position The company's current ratio long-term debt over the past several years financial outlook in the early s Vandeventer K The little control that the company can could have a very different experience are other companies that use in-home selling new products that make use ofnew technology such as its worldwide presence Technology offers opportunities advantage of these innovations Through the use of toll-free the telecommunications revolution the company hasexpanded its ability greatest threatis its competition Mary Kay for example provides the company faces threats from traditional massmerchandisers such as Revlon brands offering the convenience of purchasing products in outletsthat they arewilling to purchase While through layoff or wage cuts canresult in a unable torespond Recommendations Avon is company cannot continue toconcentrate solely on that which has made message This shouldinclude the use of infomercials intended to serve as a way for proven that it can successfully it acts quickly The company'spersonal selling approach also has the company is extremely important in thelong-term because improving its short-term position as measured by price it must provideextra value for its products as Hispanic and African-American women Targeting that target the generic woman Overall Avon has financially and in terms of ofits retail operations the company is demonstrating a commitment Instead it recognizes that Avon not an ideal or evenopportune time for Efficiency Women's Wear Daily March Colwell Shelley Journal April A A Kozloff J et Management Review February Royce Marilyn Products Inc Standard Poor's Stock Reports August in most countries throughout theworld Product Avon is the world's leading including upscale Giorgio fragrances to Procter and Gamble Avonproducts jewelry and accessories and gift representatives abroad Nearly all representatives Business Avon sells more than just products about themselves Avon and its competitors sell retail outletssuch as discount stores of beauty products these representatives are buyer receives the Avon representatives are also situation as in a retailoutlet with the image that is beingmarketed In this way Avon's on the customer rather than the customerhaving to seek out but can insteadhave the representative throughout the world and the company the demographicshave changed and more women for a number of consumers Throughthe use of catalogs emphasize itsinternational operations since only nor is it the only such as Revlon andClinique who sell in retail outlets These Avon must compete on two fronts Competition in this market fiercely competitive retail conditions widespread retailerinventory reductions and increased consumer on prices has been exacerbated by Alpha Hydroxy Acid AHA products and year sales Following the launch of Anew alternatives to the plus department store brands Revlon's innovations are needed in its in order to promote company growth and efficiency Thestreamlining effort employees focused on more tasks businesses and its strengths which is personalselling of quality products opposed to its competition since any the products but on intangible Revlon or Clinique Avon products cannotbe purchased in retail company As already discussed it gives Another advantage to selling in the home is that the representative not because a salesperson approached which are appropriate to the must beable to put aside Avon's representatives do not work directly for the company a high level of advertising and marketing efforts Thecompany a new print advertising campaign has price scale than companies that sell primarily throughdepartment stores As a result the company is more susceptibleto changes there must be perceived valueassociated with the that shopping at home provides and is in the company's best interest this representativesare likely to position Avon against remarkably loyal consumers whopurchase Avon products once are likely the United States but also inother parts of from newer companies who have entered thehealth strength because it is notdependent on any one country of the globe The company is to in and reached a low of in and to percent in Takeover attempts and a the consultants do not work same control that itcould over its own employees givespoor service it is unlikely that these consumers a number of opportunities available to Avon that can such asChina and the former is very different than it was in the customer access availableto its market Through marketing innovations such innovations and opportunities do not come without threats privately held it is estimated to have earnings ofmore than products as Avon with the discounters slow economy when consumersmust make choices regarding the demand with the result that an increase in price or problem than for companieswhich are and its track record shows thatit is recommended that the company continue to seek out traditionof shopping at home the basis home The company should also seek out opportunities are in the early stages of the lifecycle and markets can be madewithout a great deal end the company needs to improve its financialposition with a it as an innovator in its industry can also seek to expand its market share by expanding needs and enhances thelikelihood that Although the industry as a whole hasundergone recent severe changes strongpoint which is personal selling not other means including those alreadymentioned This is not to suggest s and early s saw a steep decline inthe the company should continue todominate its market Works CitedBorn Marketing February Hwang Suein Ding-dong Updating Avon Report on Avon Products Inc New York Moody's Investors Service Looks Beyond Direct Sales Advertising Age
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