Avons Marketing Strategy Essay -- essays research papers

Avons mission statement is to be the company that best understands and satisfies the cross centering service and self-fulfillment needs of women glob every last(predicate)y. They state on their vane put that their dedication to supporting women touches not only beauty-but health, fitness, self-empowerment and financial independence. This is a impregnable 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 give way 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 grammatical construction their own careers this rule of direct selling was appropriate. In 1979 Avon purchased Tiffany & Co Jewelers as well as a chemical maker and health-product company. By the twelvemonth 1988 Avon was removing themselves from the health care industry. Their debt had reached $1.2 billion and stock prices had bottomed step forward. During 1989 Avon was the target of ii take over attempts. The company was successful in warding off some(prenominal) bids. Avon launched their new web site in 1997. This was a turning bill for the company as they were offering products directly to the customers thus cutting out the need for the representatives that they had spent decades relying on. Avon estimated that they had 500,000 gross sales representatives in the United States al cardinal. The sales results from this internet site have not produced the gain the company had hoped for. In 1998 Avon clip up mall kiosks around the United States. This was their first attempt at operating retail stores. This was a major departure in the way the company has done business in the past. The intention of the kiosks was to aim sales at younger consumers not already aware of the Avon brand. To help the relationships among Avon and its sales representatives these ki osks are flat franchised to the representatives. Andrea Jung was named CEO of Avon in 1999. During the year 2000 Avon relaunched its web site emphasizing the availability of Avon representatives on run to help latent customers with their needs. At the same time Avon created a new product line to be carried by major retailers and sold only in stores. Avons sales have increased but at a ordinate of only 5% per year during the past ten years ... ... call in number that commission is earned and this is not a way to receive information for other purposes. Avon leave aloneing compliments to make customers aware that they now have the opportunity to shop in the convenience of their own home, and one of the most inexpensive forms of advertising allow for surely be word-of-mouth. This forget certainly be used if sales reps are confident that they will receive the amount of commissions they deserve. As a result, Avon will also want to implement a first time user profile that will allow customers who are registering for online purchases to indicate who has referred them to their sites, and provide an motivator such as commission if this person is a sales representative.Avon will be able to measure its success by monitoring its sales and profit growth. The company will also want to evaluate the foodstuff share it owns in the online business in comparison to competitors. Should this online business intermit to be profitable in the long run, the company may want to reevaluate its current target market and determine if the most users of their products do have access to computers and feel comfortable using this new method of shopping