Marie Ann Pius (University of Multimedia)
AVON CASE STUDY
a) What has been the firm’s corporate strategy to date?
Stronger Brand’s name than rivals:
Again Avon’s history a big player here because it gives the company credibility and name recognition.Avon continues to strengthen its image of core beauty product and international brand product line.In the past few years the company has made several upgrades in imaging and formulations,packaging,and customer service and the accuracy and speed of order delivery have also been improved.Avon products provide a consistent,high quality image in every market and include brand such as Anew,Skin So Soft,Far Away,Rare Gold,Perceive,Avon color and Avon Skin Care.Global brand have continued
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Incentives provide a positive motivational influence to encourage and excite buyers to buy the products. Such incentives, appropriate for this situation, are coupons, rebates, product samples and awards. Coupons can be attached in mail, beauty magazines, newspapers, and advertisements on mail or on the internet company’s official website. Rebates can be offered also to attract more buyers to buy the products. Rebates can be advertised also on coupons through mail or the internet. Another successful way of attracting consumers is by offering samples of Avon’s cosmetic products, which can be done door to door or attached on an advertisement through mail. Finally, awards through prizes, contests or sweepstakes can offer consumers the chance to win something small or big like cash or free-trips. Also, prizes can be offering a free gift whenever a consumers purchase one of Avon’s products. This last incentive option attracts more attention from consumers than the three other options.
Motivate the Avon business to reach its goals of promoting its products and gaining sales through advertisements, sales competition, participating in conventions and endorsing franchise. Advertising is the key to attracting consumers and the outcome is high sales. Such advertisement is done through media (television), mail, or the internet. The more awareness from the public of the company likely to attract more buyers and the outcome is high
They are women with incomes of $25,000 or more a year that care about their appearance and spend money on beauty products. They tend to have curly or frizzy hair. They are women that tend to use beauty salons and keep up with fashion and fashion trends.
Avon Corporation In order to begin to understand the industry in which Avon functions as well as the specifics around the introduction of the new EAS drive, I used the 5Cs analysis to outline the company’s current situation. Situation Analysis via the 5Cs:
The cosmetics are now being sold in 143 different countries brining its profits up 41%. She gave Avon a revamp when she took over gaining trust, reliability, and gaining a competitive advantage over their
Expand the limited advertising program for current niche market products to retain and gain market share.
Companies across the world are determined to compete for the survival of their brands. The magnitude of success of the marketing and advertising strategies of a new or existing product is majorly depended upon the organization itself. As a matter of stated facts when an organization advertises its products in the market they first have to identify the relevant answers of some questions like what is the product aiming at? What benefits will the user seek by this product? How the organization plans to position itself within the market and what differential advantages will the product offer over the competitors. Because the bottom line of all marketing and advertising campaigns, is to provide the suitable collection of benefits to the end users of the product. Successful companies are usually recognized as iconic brands. Success of a
The Avon Heathcote area has suffered extensive damage from the 2011 earthquakes which has caused land surrounding the Avon-Heathcote Estuary to drop by 20 to 50 cm as described in figure 4. This combined with the expected sea level rise has left some areas vulnerable to flooding. However, housing in this area was not red zoned and more than 1300 homes are at risk. A flood in this area is largely due to water flowing freely from the river and sea into the estuary. The council wants a solution to be formed which will reduce the risk of flooding in the area. There are multiple constraints that need to be assessed when determining a solution. These constraints include: social, environmental, economical and physical factors.
Attracts customers by developing and implementing marketing, advertising, public and community relations programs; evaluating program results; identifying and tracking changing demands.
The cosmetics business is a billion dollar industry. Every year, women are responsible for consuming millions of cosmetic products. The cosmetics industry is so large because of several factors. The media is a huge contributor to the intense pressure to look a certain way. The idea that "sex sells" is evident in gossip magazines, movies, advertisements, music, and more subtly- in the business world. People first notice what race someone is, how beautiful or ugly they are and what clothes they are wearing. Beauty is skin deep; however, first impressions are usually what others use to base their
Coupons are typically used as a marketing and sales promotion device to pique the interest of consumers by offering them enticing discounts if they purchase a certain product. Recently, coupon offers have diversified from offering the consumer a certain percentage off of the retail price of a good, or offering a "Buy one, get one free," promotion (Raghubir, 2004, p. 1). Although viewed as an outdated form of saving money, shopping with coupons profoundly impacts consumer behavior, as they contribute to potential unplanned spending as well as to company profits. Coupons indeed have been deployed my companies as important marketing tools in order to lure undecided and vacillating consumers to purchase certain goods, especially products that consumers would not otherwise buy if they did not have coupons. Coupons often function as a driving force for consumers to spend impulsively, which directly impacts companies and businesses. Although extant literature underscores the adverse ramifications of coupons and consumer behavior, some scholars assert that coupons can be beneficial. In a similar fashion to the rhetorical elements deployed in marketing and advertisements, coupons function as a subtle mechanism for companies to gain customers, raise revenue and increase consumer spending.
AHC have limited amounts of promotion for its business and currently only rely on its website as well as word of mouth which could realistically only attract a certain number of consumers however if Andy wishes to expand or even increase the number of sales, alternative methods of advertising should be taken into account, for example, below the line promotion such as posters, local radio advertisements, local newspapers and magazines to make people aware of the business, and this way, AHC can widen their market. Andy knows that some facilities offered only target specific people, e.g. the beauty salon is aimed at mostly female members so instead of advertising within the mass market, he could implement personal selling to allow customers to
As stated in the case, the ban on door-to-door selling was lifted in 2005. Avon Products and Amway are taking advantage of this by using door-to-door selling as a method of marketing their products. The main advantage to using door-to-door selling in the sale of cosmetic products is that it is a cheap and cost effective method of getting products across to the customers. Companies do not incur the cost of setting up physical stores and hiring dedicated sales person when using door-to-door selling as the products are sold directly from the manufacturer to the customers via one level of sales representatives. Illustrating the success of this method of sales, Avon Products had already recruited 350,000 sales representatives by the end of 2006. We can assume that most of these sales representatives are being paid purely on a commission basis and Avon Products does not incur any other additional or fixed cost in employing these sales personnel thus making it a very cost effective method of selling products. This and the lack of intermediaries between the manufacturer and the customer mean that the
As of November 1999, Avon was experiencing economic troubles. Avon's growth rate of annual sales was less than 1.5 percent during the greatest economic boom in history. This prompted a transfer in leadership which appointed Andrea Jung as CEO. Since that time, Avon has experienced remarkable growth.
Avon Products, Inc. (Avon), the US cosmetics giant, had considered China the keystone of its marketing effort in Asia. Years of effort and the development of a large direct marketing organisation in that country had made operations in China its most profitable and most rapidly growing market in Asia. On 21 April 1998 senior company officials from the New York headquarters and throughout Asia had gathe red in Guangzhou for what was supposed to be a festive occasion. During the meeting William Pryor, Avon 's head of China operations, was called away from his table to take a phone call When he returned, it was with devastating news. The Chinese government had just announced an immediate ban on all direct selling. In 113 years, Avon had used
The environmental factors are something that the company cannot control but able to response back to the change. As time change, more and more women are educated and work in professional fields which require women to dress and look professional; this increase the demand of skin care products and make up products. Also, people work under a fast-paced environment and this make time become important, Estée Lauder company would want to think how to response to the change of time. Customers want to shorten skin care time by applying a 2 minute moisturize instead of a 15 minutes’ mask, so Estée Lauder need to innovate their products or create a new product that save customers’ time. Currently, Estée Lauder creates a capsule product as replacement of serum, which is easier to carry and use. Within international trading, the language and culture of other country affect the way company package Estée Lauder Advanced Night Repair and the way they advertised the product. For example, the culture of China love to use red color when it comes to celebration, and avoid use black or white when wrap the products.
Promotional events such as, house parties, bring back my bar promotion, monthly discounted prices on selected items, scent of the month, close out sales, featured products, combination ordering and customer loyalty. These promotions are used in conjunction with Scentsy’s normal advertising campaigns.