Avon Marketing Analysis Essay

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.

▪ Special screenings with access to a premium food and beverage menu for VIPs only

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 definition of true beauty continues to evolve as generations pass and new ones emerge. Ulta Beauty, a popular cosmetic store, sells products with the aim to make women feel confident in their skin. Their use of advertisements helps spread the word about new, improved product lines and reach out to potential buyers. Selling makeup is the obvious goal of a cosmetic store, but the kind of consumers they attract and how varies between different franchises. When a company displays their products in one shot instead of in a commercial, the task of conveying the message becomes harder. Ulta Beauty persuades women to purchase their products by pointing out buyers’ insecurities while still appearing to promote empowering feminist values.

Orange Kingdom is a clothing retail store owned by Between, Inc. It is differentiated from its family brands such as Between and Old Marine, as it gives an upscale image compared to the other two brands, and targets young professional population aged mid twenties to mid thirties both men and women. It provides mid-scale work-to-play casual and business apparel, accessories, and shoes through about 500 stores including factory stores in the United States. It is also gaining market share in Asia, South America, and Europe as well. In this marketing proposal, I would like to discuss three service options to retain and acquire customers.

BYS targets the tween and early teenage female market, tweens make up large proportion of the market and are highly sought by the cosmetic industry due to their beliefs, which as suggested by Hair, McDaniel and Lamb (2014, 144) includes a growing need to remain a kid with the inclusion of having the fun of a teenager correspondingly tweens aim to look more mature at a younger age. BYS would target the ages between 12-15, these females would have a low income; from either pocket money or a low paying causal job, they would still be living at home with their parents and attend school and have active social lifestyle. The consumer would have a pursuit to be fashion and appearance savvy, from circumstances such as maturation or peer/ social pressures or alternatively they may hold a keen interest in beauty and cosmetics. BYS would form a basis on usage segmentation as it focuses on consumer actions rather than that of intentions, opinions and attitudes (Sarel and Marmorstein 1996, 39)

Discuss what is meant by the term “customer orientation”. Illustrate with examples how companies demonstrate their customer orientation by reference to at least two elements of the marketing mix.

|Little Black Bag (small circular purse) |22” Spinner (suitcase) |Lanyard |Case for iPhone 5 |

This document represents The i-Fusions Consultant’s Report on BRITA. The company’s current business situation is analysed and various options for action considered. The report aims to identify a clear marketing strategy for Brita in order to address the current issues facing the company the associated falling sales.

Young girls are more concerned about acnes and blackheads while mature women are looking for anti-aging and anti-wrinkle products. Genders do affect the choice of skin care products. In the past, skin care products only belong to the girls’ world. Nevertheless, in recent years, men are increasingly becoming more and more concerned about skin care. With a view to this latest trend, various brands have started developing men’s line. Income level directly affects the purchasing power of customers. Skin care products take up a wide range of price levels from far less than a hundred dollars to more than a thousand. Young girls who do not have any income cannot afford the expensive skin care products while mature women with higher purchasing power focus more on quality and effectiveness. Occupations also determine the need for skin care products. Models and artists generally have a higher consciousness on skin care than people with less exposure to the public.

Mary Kay products have been seen to sell in more than 35 markets expanding across 5 continents. Mary Kay’s sales force exceeds 2 million globally with potential markets such as the Indian and Asia- Pacific areas that represent extensive growth opportunities. Mary Kay is focused on expanding into the Indian Market, due to its large population and market size. With the large population of middle class growing to a total of 500 million individuals will give Mary Kay the opportunity to build their brand and attract this demographic of consumers. Amongst the population that is averaging at 26 years of age consists of a growing number of women seen as highly optimistic candidates who have contributed to an increase in consumption

The target market for Maybelline’s Great Lash Mascara is primarily women between the ages of 15 and 35. Because of this large age gap, Maybelline over the years has become a more contemporary brand for all women of all races. They have done this by providing foundation shades in a wider range of colors and introducing products that women of any age can use. Maybelline also produces different products for each country that they distribute to. Each ad within an ad campaign is altered slightly or tremendously to better suit the culture it is marketing to. In the U.S., a large percent of females begin to use makeup before the age of 16. As a girl uses Maybelline Great Lash Mascara, a well-known product, it could have possibly been bought for her or given to her by her mother. With this specific product being around for many years, many women have grown to be brand loyal to it. As a young woman grows into adulthood, the cheaper mascara option of Maybelline Great Lash can be compared to other brands of higher price. Other competitors can provide a product that a consumer can reach for as they grow and can begin to afford to spend more on a better quality or different formula of mascara. This can relate to income or social class within demographics as well. Some women choose this specific SBU because of the affordable price and what they expect out of the product. This specific product is a simple mascara that lengthens and darkens lashes. As these consumers grow older, they may

The decision of the company to finance its acquisitions with debt, starting from 1982, resulted to high interest expense payments every year (Exhibit 1). These high interest expense payments, combined with the decreasing net earnings made it very difficult for Avon to meet successfully its generous dividend payment policy. So the company had to reduce its yearly dividend payments starting from 1982 and onwards. Under its financial condition in 1988 Avon has no other choice but to go for further reductions in dividends. That way the company will be able to meet its heavy debt obligations and at the same time finance the "come back" to its core beauty products business.

Avon, started its journey in the early 1886 is now the oldest and the largest marketers and manufactures of the beauty products. The advertisements from “Ding dong, Avon Calling” to “Hello Tomorrow” and from “You never looked so good” to the latest one “The Company For Women”, always helped Avon to improve its image and enhance the marketing strategies to serve the purpose. One of the amazing facts about Avon includes that it’s headquarter is situated in USA but major portion of its sales comes from outside North America. Avon has captured a huge market all over the world and its distributing the beauty solutions to almost all parts of the world. With Avon being a part of 112 countries, the company has

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