Avon in China

Summer was making its picture-perfect debut in New South Wales that day in October 2011, but Mr Greg Foran hardly noticed. Newly hired away from his role as head of Australia’s leading supermarket chain, Woolworth’s Supermarket Division, he was set to work as a senior vice president at Wal-Mart International, the fastest growing division of the world’s largest retailer, Wal-Mart Corporation. However, what exactly he would be doing was still open to discussion. It was not until the sudden and somewhat mysterious departure of Mr Ed Chan, the president of Wal-Mart China, that Foran’s new role suddenly emerged. That Australian summer, far from the approaching winter back in

Mary Kay started her business in 1995 and invested US$20 million in its China operations. In, 1996, Mary Kay managed to opened branch in Shanghai where residential incomes are higher than average and cosmetics and skin care products are used most often. By the end of 1997, wholesales sales topped US$12 million in China, and a nearly 12,000 strong sales force was making inroads into China’s cosmetic market.

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

In World War II the soldiers used a jelly-like substance, called “red vet pet” to prevent themselves from the sun. Finally, Benjamin Green combined this substance with cocoa butter and coconut oil, which created the new line of Coppertone suntan cream. Coppertone has come a long way, to make their product better. As they changed the product, the advertisement changed over the years to appeal to the audience. Although both of these advertisements are being presented to get people to buy Coppertone, the modern day advertising is more appealing than 1944 advertisement; the modern day advertisement has a better focal point, action, general feeling and mood, selection of elements, and audience.

The Premiere is suggested by the president and verified by the congress. The other members of the State Council are suggested by the premier and verified by the congress. The State Council’s main functions consist of implementing the “principles and policies of the Communist Party of China”, accomplishing the regulations and laws and “dealing with such affairs as China's internal politics, diplomacy, national defense, finance, economy, culture and education”. (Government)

About twenty years ago in 1989, two dermatologists, Dr. Katie Rodan and Dr. Kathy Fields came up this idea with a special cream made mainly from benzyl peroxide to meet the needs of teens, women and men about their special beauty concern of acne. They launched the product and started to merchant their products with Guthy-Renker.LLC, one of the largest and most respected direct marketing companies in the world. By 2010, Proactiv has boasts 5 million customers with total revenue of $850 million a year worldwide and has been recognized with 27 coveted awards and honors from the beauty and health industry. Other companies also had the experiences

For baby boomer generation which is experiencing life changes brought by aging, they have shown increasing interests in cosmetics and toiletries, not only to enhance their appearance but also for other reasons. A simple example is that they use foundation with treatment ingredients to protect their skin against harmful UV rays, and to help a variety of skin problems.

Revlon brand rose in 2008 with 12.2% in the facial sector, with 3 important new products such as (Revlon natural make up, Revlon color stay mineral foundation and Revlon custom creation foundation) which led to the growth in that year . These products were supported through print advertising and television leading to celebrities such as Jessica Alba and Halle berry. Revlon has expanded their brands globally with the helpful use of their brand ambassador strategy by engaging Elle Macpherson and Jennifer connel in representing the brand.

The quest for beauty is an endless endeavour at all times. Despite the old saying cautioning us that beauty is only skin deep, billions of dollars is spent on skin care products every year for men and women, young and old alike. In this multi-million-dollar industry, every company tries hard to maximize their profit. One of the most common methods they apply is market segmentation.

I. Problem The Shiseido company is weak in understanding the market needs and is looking to create a strategy that will both increase global market share and reap success in the high potential Chinese market.

This incubation is the financial subsidiary of the General Motors Company through which the dealers of GM offers credits or lease financing, vehicle insurance and extended service contracts (10 K annual report, 2010 April 7, GM website) . GMAC (General Motors Auto Insurance) was the most financially strong subsidiary of the old GM Company. Yet, GMAC is not wholly owned by GM since 2006. GMAC agreed with Chrysler to provide auto finance services for the Chrysler dealers in 2009, which made the company to leverage its core strength of auto financing. On the

With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.

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

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.