Avon's Marketing Strategy

1801 Words Mar 3rd, 2005 8 Pages
Avon's mission statement is to be the company that best understands and satisfies the product service and self-fulfillment needs of women globally. They state on their web site that their dedication to supporting women touches not only beauty-but health, fitness, self-empowerment and financial independence. This is a good mission statement for a company selling beauty products to women all over the world. Avon started selling beauty products door to door in 1886. For generations women have been purchasing Avon products from small catalogues through a representative calling on consumers in their homes. During the days when most women were at home rather than building their own careers this method of direct selling was appropriate. In …show more content…
With this problem, Avon's CEO Jung must now try to find a way to merge the company's current direct-selling model with the idea of selling Avon products over the Internet. Jung must determine how to implement the online selling aspect and at the same time try to change the negative views that some of the sales representatives have with regards to potential lost sales from customers who will use this method. Another problem that the company faces is the fact that the company is now behind competitors who have already established their lines of beauty products to be sold online. The company will need to fight for its fair share of the $1 billion online beauty-products business and make new and existing customers aware of this new alternative purchasing method. The first recommended solution would be that Avon adapts the current plan set out by Jung with regards to the implementation of the online business. This plan includes the concept of creating an "eRepresentative" title to all sales representatives who are willing to pay $15 per month to be eligible to earn online commissions. These commissions will range from 20-30% depending on the selected delivery method. This would mean that an eRepresentative would need to sell a minimum $70 worth of products at the 20% commission rate in order to break even with the monthly fee. Also, in order for the commission to be allocated to the
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