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Principles of Marketing Case Study

Good Essays

Name: Saadia Mazhar

Class: MCOM

Subject: Principles Of Marketing

Assignment: Case Study

Date: 01/11/2010

C A S E S T U D Y

Question Number 1:

Avon was selling its products for 112 years by using the motto “Ding Dong, Avon Calling” successfully. Demand of Avon’s beauty products was very high and selling was done successfully. This company earned $4 Billion worldwide as a result. This company was incorporated as California Perfume Products in 1916 and was founded in 1886, deploying an army of 40 million. It constituted of women, selling products door …show more content…

QUESTION NUMBER 3

On the rule, “change we did, change we must and change we will”, Preston launched a $30 million ad campaign in 1994 with the theme, “Just Another Avon Lady.” Market searched showed that despite all changes, consumers still thought of “Ding Dong” and the Avon Lady, when they associated with the company. Observers wondered if the use of the term “Lady” in the mid-1990s would provoke negative reactions among many women. After all, even Avon had avoided using the term in advertising, for 20 years. Between 1992 and 1996, Avon’s sales and profits rose slowly, but steadily, driven primarily by sales in international markets. Then in late 1997, Avon announced what might be its most radical change yet. It announced that it would soon introduce retail stores in the U.S. market, which were although running in foreign markets, but were to be tested in the U.S., being a new approach in markets. Preston argued that no doubt, Avon’s products were loved and appreciated in the markets, but still the idea of direct selling was not good, as when the sales representatives rang the door bells, they were not given any appropriate response. To calm down Avon’s 440000 U.S. sales representatives, Avon gave them share in its new business either through franchising or through referrals from the stores. Avon cut down its product line by 30percent to focus entirely on the limited products, in aspects of marketing, promotion and

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