Overview

1886 : David H. Connell founded Five core values

Trust Respect Belief

The California Perfume Company (CPC) with first office in New York 1938 : Name changed to Avon Products Inc. 1946 : Co was announced publicly with advertising campaigns like Avon Calling 1970s : Acquired jeweller Tiffanys First major U.S. Cosmetics manufacturer to end animal testing Slogan : The company for everyone - committed to the enrichment of lives

Humanity

Integrity

Mission : To be Global Beauty

Leader Worlds largest direct seller with 5.4mn representatives in over 100 countries Largest Micro lender to women Closest competitors: Revlon, Mary Kay Three product categories Beauty Fashion Home

Growth Avenues in developing countries

Geographic growth
Exploring countries with huge population like China, Indonesia Eastern Europe countries liike Poland, Czechoslovakia and Hungary Pacific Rim like Vietnam, Cambodia Leverage distribution channels in emerging markets Main focus on development of retail infrastructure esp. in the interiors Direct selling to open up unprecedented opportunities for women in areas where access to quality goods was limited Marketing in developed industrial areas New programs to complement existing network of sales representatives and image-enhancing advertising and promotion programs worldwide Make purchase options available like on the website and retail outlets

Organization Structure A large company like Avon that markets products on an international level needs to organize marketing activities by geographic regions. Managers of functions for each regional reports to a regional executive who reports to a senior executive at the corporate level. Especially effective for a firm whose customers characteristics and needs vary greatly from one region to another.

Marketing Positioning Map and Analysis

Customizing Marketing Internationally

Distribution Customization
New programs were designed to complement the existing network of sales representatives
In the United States, for example, Avon developed Avon Select, a direct marketing program, to enable customers to buy Avon products in various settings. Customers could order products via any one of four methods: through Avon representative by mail though special Select catalogs by the 1-800-FOR-AVON telephone By FAX In Taiwan, for instance, Avon products were sold by Avon representatives in some 2,000 storefront shops, where orders could be placed via fax for next-day delivery.
The company spent 2 to 3 percent of annual sales on image-enhancing advertising and

promotion programs worldwide to make customers aware of Avon products and the purchase options available. Even retail stores were not ruled out by management as a viable alternative for the distribution of Avon products.

Different Marketing Strategies for countries

Direct Selling (Door-to-Door/House-toHouse)
Form of non-store marketing that makes

personal contacts and sales away from a fixed business location Customer contact was traditionally in the home, but more recently was made increasingly in the workplace and in other convenient locations. As noted, the traditional Avon system of door-todoor house calls worked wonderfully in developing nations. In the United States and other industrialized nations fewer women were at home when doorto-door salespeople called; and fewer women wished to make money in their spare time selling cosmetics to their neighbors.

Different Marketing Strategies for countries Contd...

Retail Stores Products of Giorgio Beverly Hills were sold through major department stores and boutiques. Retail stores were used in some countries and were being considered by management as an alternative form of distribution in the United States. Retail stores provide access for customers at a fixed location. This channel, however, offers the potential for conflict with the work of sales representatives.

Different Marketing Strategies for countries Contd...

Telephone Retailing Opportunities were offered in the United States and worldwide to contact Avon through the 1-800FOR-AVON telephone number. The major reason for using telephone retailing is that it allows customers 24-hour access to the company. Customers order merchandise at their leisure from a catalog or sales brochure. Telephone retailing provides greater customer convenience, but places less emphasis on sales assisted service.

Catalog Special select catalogs allowed customers the opportunity to review the Avon product line during their leisure time. Orders could be placed by mail, 1-800 telephone numbers, or by FAX. Catalogs provided the convenience of continuous access, but put less emphasis upon customer service.

Advertisement Analysis
Advertisements for Avon adopt a customised strategy by showing regional models to help the customers in relating. Also, the products have different offerings depending upon the regional preferences of customers

Differentiation strategies
Superior Customer Service

Wider Geographic Coverage

Quicker Design-to-Market Times More Attractive Product Line

Improved E-Commerce and Internet Sales Capabilities

Stronger Brand Name than Rivals Stronger Global Distribution and Sales Capabilities