Avon Products, Inc.

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:

After the consumer makes his selection from the landing page, a transition to the shopping cart and checkout page is simply the next step to complete the transaction. In a business-to-business e-mail marketing campaign the e-mail is only a part of the marketing. The e-mail to a business must contain contact information for offline communications, and an attachment for downloading catalog or price list information. The e-mail is followed up by sales representatives who will also forward quotes and snail-mail an information packet (Weil, 2002).

Also, Amazon has emphasized on building “several distribution centers around the world to hasten deliveries”(Hof and Himelstein, 1999). Coupled with its software it provides a “laser-like focus on the buying experience”(IT Business Edge, 2012). Such a system and service is what draws customers towards Amazon and subsequently retains them.

​A Porter analysis will be performed throughout this paper, on the internet sales industry. Included in the Porter analysis is six relative competitive forces; threat of new entrants, rivalry amongst firms, threat of substitute services, bargaining power of buyers, bargaining power of suppliers, and relative power of other stakeholders.

Weight loss is a $40 billion dollar industry in the United States today (www.abc.news.com). In With the growing concerns about obesity in the United States, the desire and need to lose those extra 20 pounds is more desperate than ever. In this task, many diets, pills and even surgeries have been conducted today. Not just for health reasons but for that desire to have the perfect body. This desire is being felt by both male and females. With the many weight control programs on the market today, Jenny Craig, Inc. has grown into one of the largest weight management companies in the world.

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

Other companies also address the online environment. The great potential and the numerous advantages of doing business on the Internet have appealed many companies. The online environment allows these companies to reach a larger number

Mary Kay Cosmetics Inc’s (MKC) was facing challenges of increasing number of competing direct selling organizations in the US cosmetics market and was not satisfied with their sales revenue generated from international sales. They believed MKC culture could be transferred internationally and that Mary Kay Ash’s charisma, motivation and philosophy were likely to appeal to women throughout the world.

target market. Their age is usually greater than 45, and they are married couples that own a

This essay examines Harley-Davidson's use of the Internet as a strategic marketing tool. Unlike their competitors' websites, Harley takes advantage of every online opportunity to build relationships with customers, promote their brand, and market Harley offerings. The Internet in particular is an effective promotion medium for Harley because it extends their efforts to market the company's products and services.

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

Over the last several years the process of reaching out to customers has been continually changing. Part of reason for this is because more people are turning to the Internet as a way to be able to promote their products and communicate to a larger audience. A good example of this can be seen with the election of Barack Obama in 2008, with him using this medium as a way to gain support and funding for his campaign. This allowed him to utilize this new technology to effectively connect with and inform voters about key issues. Over the course of time this helped his campaign to gain momentum. Once this occurred is when he was able to stand out against his rivals through effectively utilizing these tools. (Miller, 2008)

Under the direction of the new CEO, a new strategy was developed to reinvent Avon's image, improve customer satisfaction, and to increase profit margins and market share. Avon has gained an outstanding reputation as the best direct seller of beauty products. Through the continued efforts and achievements of its sales representatives, Avon is now known worldwide. Avon's core competence has mainly been its direct selling busniess model.