Marketing Strategy of AVON – AVON Marketing Strategy: The mission description of the company identifies its target market women. The primary goal group of women working who are between the ages of 25 and 35 with ambitions for careers. Because it’s a direct selling business, the geographic classification of its clients is determined by the ability that its reps. About psychographic segmentation, the customers often purchase makeup products and show a desire for innovative products that are not readily available on markets. marketplace.
This brand is specifically designed to be helping women become empowered. Established before the time women across the US were granted the right to vote, AVON has described its experience as a firm partner in every woman’s success. In addition, AVON also promises to offer the most advanced products and services of top quality. What Is Marketing Strategy? Definition
Did You Know About AVON?
Company : AVON
CEO: Angela Cretu
Founder: David H. McConnell
Year founded: 1886, New York, NY
Headquarters: London, United Kingdom
Annual Revenue: R$ 9.1 billion
Profit | Net income: US$ -107.4 million
Products & Services: skincare, color cosmetics, fragrance and personal care products, featuring iconic brands such as ANEW, Avon Color etc.
AVON Fun Fact: The company that for over a century has stood for beauty, innovation, optimism and, above all, for women. Everyday, Avon brings beauty to the lives of women. It means providing an earnings opportunity so a woman can support her family; and championing causes that matter to many women such as eradicating breast cancer.
AVON Mission Statement
To create a world with more empowered women, because empowered women bring more beauty to the world.
AVON Vision Statement
The Company for Women To be the company that best understands and satisfies the product, service, and self-fulfilling needs of women – globally.
The tagline of AVON is “Beauty for a purpose”. AVON’s philosophy is that beauty empowers women to empower others. They relate this philosophy by considering each AVON representative as a beautiful brand ambassador.
Marketing Strategy of AVON – Competitive Advantage
The distribution Model of AVON could be seen as the main benefit to competitiveness within the identical statement of the product. The major competitors of AVON in the field of cosmetics include L’Oreal, Lakme, Sunsilk, etc. AVON is a leader in direct selling distribution, which is different from the other companies mentioned earlier.
Amway can be an excellent competitor since it is a top competitor with similar products, and it also utilizes an indirect-selling model for distribution. AVON has a long-running research program as well as design for their product to help
innovative products for their clients in response to their requirements.
Marketing Strategy of AVON – BCG Matrix
BCG Matrix this one for AVON to be looked at as consideration for Product division and also by Geographic division.
The Product Division Beauty segment of the brand is seen as the center of attention, while the fashion segment is said to be the main source of income to the business. Home products are thought of as a dog for the company.
In this Geographic Division, Latin America remains a cash product for this brand, whereas Asia Pacific & China is the main focus.
Europe, Africa, and East Asia are the regions where companies want to invest heavily to shift their focus from question marks to stars someday, while North America over the years has been a difficult segment for the company.
Marketing Strategy of AVON – Distribution Strategy
Advancement Of The Direct Selling Model
In a broad sense, Avon’s acquisition channel can be divided into three notable categories include Direct Selling Limited Retailers, and online. Of these, the immediate offering was the primary channel while the remaining two were the auxiliary channels of distribution. The channel for immediate offerings was the center channel of Avon that the company was relying on since the year 1886 when its founder was a fan of door-to-door sales.
The Distribution Model
The brand’s representatives were independent contractors and were not employees of Avon. After a person had become an Avon Rep The director of the district, also a representative of Avon was contacted by the rep to explain the procedure for selling the products. Reps who were new to the field were required to notify a new member for 110. They received 20 handouts, and test items such as sales books, order forms, etc.
In the early 1980s, retail stores were beginning to gain some ground on the market. Around 80percent of all cosmetics were sold through retail outlets and this market was turning into one that was hard to ignore. However, for Avon, the idea of selling its products at retail outlets was problematic because it was aware that the move could cause a loss of business for its agents. To be able to move into offices and make a name for itself in retail stores Avon entered into a joint partnership along with Liz Claiborne (designer) and developed ascents and beauty products available. products available in more than 2,000 stores.
Marketing Strategy of AVON – Brand equity
Avon as a global producer and seller of premium products for families as well as individual products for personal care has believed in coordinating its offerings from the beginning. It provided a broad range of products for beauty including cosmetics, skincare products, perfumes makeup, spa treatments as well as everyday toiletries, and cosmetics such as shampoos, antiperspirants as well as body creams.
The range of products it offered included many famous names, including, Anew, Avon Color, Skin-So-Soft, and Advance Techniques. Avon Color was once one of the most popular cosmetic brands around the globe. The products were targeted at women who were in the range of 25 and 50 years old. The products were top-quality, priced at an affordable price, and offered value.
Marketing Strategy of AVON – Market Analysis
As of May 2017 the company had already established a large social media following that surpassed 18 million users on Facebook and Twitter, which places it in fourth place in the world of beauty giants. The company should be considered to have an outstanding courses presence, in general, because Avon’s videos on beauty had garnered greater than 55 million visits through YouTube in February 2017.
Despite the notable global reach of the company’s public image, Avon faces huge financial difficulties in recent months. In the period 2011 between 2011 and 2016, Avon’s overall earnings dropped from 9.23 billion U.S. dollars to around 5.72 billion.
Tragically for Avon, the drop was not confined to one geographic region. The breakdown of revenue between 2013 and 2015 paints a bleak image of a situation where a decline in any region cannot be blamed for the overall loss. These losses saw the operating profit of Avon cut substantially.
The dramatic drop in cash-related profits has led to an overhaul of the company’s strategies and the door-to-door method has come under fierce criticism in this day and age. According to a study from 2016, the majority of consumers who took part in beauty activities courses visit the internet to purchase items.
With the web evolving from a once consumer information source to now being a purchasing platform for retail it’s becoming more difficult for Avon’s many sales representatives to go to the door to sell their products.
The web is moving from being solely a purchase data source to a retailer stage, it can be difficult to discern which entrances Avon’s different deals will be able to pound in immediately. There is no need to make that consumers aren’t aware of Avon as an entity. In a survey of 2017 U.S. ladies, 80 percent of respondents stated that they were aware of Avon and which is one of the best well-known companies across America. The United States. However, only 16.4% of U.S. women featured use the brand Avon frequently.
Marketing Strategy of AVON – Customer Analysis
Through the years, Avon as an entity has been able to clearly define its plan that focuses on targeting the women who are mostly homemakers and prefer to hire women sales representatives to attract their customers more. This may be a threat to the brand, as in the 21 21st century, the majority of women working professionals are more inclined to shop courses or in retail stores to shop.
The company now has to rapidly alter its strategies for marketing to focus on the right customers.
Marketing Strategy of AVON – Promotional Strategy
To build brand awareness the company has roped in several celebrities, including Lauren Conrad, Lucy Hale as well as Ashley Greene.
This demonstrates the advertising strategy that the brand follows to establish itself as a stronger player in the market, as the brand recently announced Aditi Rao Hydari as its brand’s newest spokesperson in India.
Avon makes use of catalogs that are released on special occasions featuring a variety of famous people on the cover page. Avon also promotes its products through numerous social media platforms, which include Instagram, Youtube, Facebook, and Twitter.
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