A CASE STUDY ON AVON

A case study on Avon

A case study on Avon

1.In this study different marketing operations have been discussed which are briefly described as:

Direct Selling: Direct Selling is a technique of communication and sale which is to broadcast a personalized message and incentive to target individuals or businesses, in order to obtain an immediate and measurable response like Avon different models represent the brand and promote it.

Less competitive market: Avon focus is to target less competitive markets which are their strategy to first capture small markets and then expand it to larger markets.

House to house sales:

Avon has also focused on house to house sales as in shopping malls small kiosks in which their distribution is done (Nagel, 2004). Although this has drawbacks but it is also helpful in providing more opportunities for further expansion.

2. Avon has a slow growth potential because the cosmetics market in US is unexploited. The US beauty market is highly competitive. In order to succeed Avon must focus on less competitive market so they can compete well. The population rate of women is low in US; due to strong competition people prefer other brands. Avon focuses on distribution channel which is limited to different models that represent Avon at different platforms. Avon has a limited distribution contracts in US for this reason Avon focused on going global. Avon has also managed to sell its products at lower prices than those of the competitors this has helped to develop a better image of Avon in markets worldwide.

Today, Avon is the largest engine of economic opportunity for women worldwide, serving over Representatives from six million in more than one hundred countries (Marrakchi, 2006). In addition, the Avon Foundation for Women is the philanthropic organization's largest corporate membership with a focus on issues of importance to women, and Avon philanthropic activities worldwide have donated more than $ 800 million to improve health and safety of women throughout the globe.

3. The marketing staff must be on understanding the young consumer market size and because its members have an increasing amount of money to spend. They are good consumers of cassettes, automobiles, cosmetics, clothing, jewelry and other products.

Market of young adults (age group between 20 and 39) are particularly important because at that age usually people start their careers, get married, start a family and spend lots of money. One is the group of people in the sixth and seventh decade of life. The mature market is large and economically promising. Its members are on the top of their purchasing power and have no financial responsibility with their children. The other age group includes persons with more than 65 years; members of this age group are logical prospects for a small house, low cost, cruises, foreign travel, health products and cosmetics prepared especially for the elderly advanced. Income of the consumers as well as the prevailing market conditions are in fair of cosmetic industry (Bruno, 2010). Avon has bright chances of its market ...