Avons Marketing Strategy Essay

1790 Words 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
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Marketing techniques used in the traditional sales methods are not viable for the online segment. Research has found that on line customers have higher incomes and are more educated. Competition is this market is fierce. When the web site was initially launched they offered only a small portion of their products. The company was very timid at that time of alienating the sales representative. Management could not agree on the strategy to be used for their Internet sales and consequentially came on line later than many of their competitors.
     Avon’s product line has become deeper as the decades have passed. They at one time were selling only a limited line of make up and fragrances. Avon added jewelry, some clothing items, and children’s books, among other offerings. At the time the case was printed two thirds of Avon’s sales were generated overseas. The case cites examples of the sales in Taiwan. Five years prior to the printing of the case sales were growing at a rate of less than 5% per year in that country. Then Avon’s management introduced multilevel marketing and opened retail stores selling Avon products to customers directly. The company is now enjoying 20% per year growth in Taiwan. Stock prices are increasing from the troubled times cited earlier in this report however they along with the sales have not rebounded as much as Avon would like.
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