FREE ESSAY ON CASE STUDY-AVON

CASE STUDY-AVON

Avon Case
What direct marketing efforts would you recommend to Avon? Who would be the target
market? What range of products would be sold, and how would those products be offered?
What other specific price, distribution, promotion, and product mix strategies and
tactics would you propose and why?
When I think of Avon the first thought that comes into mind are the Avon ladies and those
Avon catalogs. This is actually what most people think of I believe. Avon is a extremely
well-known company but this does not mean it doesn't have its problems. During the 80's
Avon has had its shares of negativity; debt reaching -$400 millions but since then has
bought itself up again and now into the 21st century it is trying many different options
to increase sales which have barely climbed in the last four years.
The direct marketing efforts that I recommend Avon make are to definitely focus on
television advertisement commercials like they did in the early 90's. To be honest the
only advertisement for Avon I know of or only recognize are the print ads in magazines.
Having television ads would make people more aware of Avon than they already are. It
definitely would linger in people's minds more than just seeing magazine ads. Print
advertisements should also increase in number and be published in different magazines
ranging from teens to woman with products being advertised that are targeted to that
specific group. Telemarketing can be help but I do not think Avon needs to focus on this.
Maybe having telemarketers calling during holiday seasons offering a free holiday catalog
or even just calling year round asking if consumers have an Avon representative or if
they wish to receive a free catalog and have a Avon representative in their area contact
them. Avon has used this method in the past but this method might be expensive and not
yield much profit since you are not actually taking orders during these phone calls.
Direct mailing could also be of help since Avon has tried this in the past and has a
greater response then the norm (11% rather then the 1% or 2% norm). This could also erase
telemarketing since it basically is the same concept but no Avon representative would be
given the interested customers name and address. Adding bind-ins could be useful too
since the average girl or woman do read a lot of magazines and this would work well with
print media advertisements. Imagine having an ad for an Avon product and then right next
to it you see a postage paid reply card for a free catalog. Even though Avon has in the
past sent out samples of products maybe adding samples of makeup or fragrances in
magazine ads would attract people to buy them and other products. Avon has recently begun
to talk about how they are going to sell a special product line at stores such as Sears.
This is a great opportunity for Avon to put ads in local newspapers of the cities in
which there are Sears's stores and also to buy space in Sears's weekly flyer in Sunday
papers. This can be an enormous plus for sales and profits of Avon. I know this will hurt
Avon representative but what is being sold is not the same product line sold in the
catalog. Loyal product users of the catalog makeup will always stick with their favorite
from the catalog. 
Avon's main target market has always been woman between 35 and 54. I feel that Avon
should focus in the young woman/teen market. I feel that once young women become
customers that they will be customer for a long time and maybe even life. It is best to
expose and introduce someone to Avon when young because I know I am still wearing some of
the same brands of makeup that I did when I was younger. College students to me would be
a great target market since most don't have enough money to buy department store makeup
and even drugstores Avon is known for its affordability and this group would be perfect
to target. Once one friend has the makeup a ripple effect usually occurs. Groups of
friends usually have the same things; I know this is true of mine. 
In order to target this group I feel a whole new product line has to be introduced that
specifically targets college age woman and young adults/teens. Shimmer makeup, funky
colored eye shadows and nail polishes, body glitter and just colors that this age group
is wearing. Trendy, chic, fun and flirty is what these girls are looking for not the
usual pinks and reds that moms and grandmas wear. Advertising in dorms for Avon workshops
could be posted in various colleges and universities with a number to call if interested.
Print advertisements in magazines such as Seventeen, Glamour, and Elle should take place
as well as free samples given out in the freshman dorm packs at orientation. Avon
products are affordable and I guarantee that focusing on this target group would bring
Avon a younger trendier following and yet its normal product line will still have its
normal customer following. Avon needs not take away any makeup but add on which is just
attracting more customers plus more sales which equals bigger profits.
Avon is as I have said earlier known for its quality at a reasonable price. Well when
introducing a new product line, products should be sold at a special preview price that
will be lower than the price it will be after the preview sale. As far as the regular
product lines I definitely think special offers like when you buy a product from the new
line you will get a regular product for half off. This will increase sales of the product
line to regular customers outside the targeted group. Major promotion for Avon products
should take place. Promotional offers such as getting a certain amount off on your first
purchase, offering coupons for a free makeover when Avon products are sold in department
stores. Promotional events I believe should be an ongoing priority. I feel in my opinion
Avon knows who its customers are and hope they will always be Avon customers. This might
be true for some but Avon has to remember the saying "out of sight out of mind";
therefore I feel promotion is much needed. In terms of product mixing, Avon's sales are
mainly form its cosmetics and beauty line but they also sell different products such as
children's books and toys as well as jewelry and clothing. I feel that Avon should
definitely emphasize its makeup line of course but I feel they should also emphasize and
focus on children's items. Since the majority of Avon's consumers are from 25-55 I feel
that a children's line would be profitable since mothers will have the convenience of
ordering products for their children as well as toys and books from a company whose name
they have faith in and trust and have used themselves and have gotten positive results.
As far as distribution is concerned I feel like Avon does do a good thing by offering
customers the choice of buying directly from the distribution centers. I feel that this
is a positive thing since the centers have served as showcases for products. Having Avon
products readily available for customers to purchase is a easier more convenient time
saving method of selling. Most consumers like the idea of not having to call their Avon
lady place an order and then wait for the products to be delivered. Distribution centers
would make Avon products more accessible to the consumers in that area. I feel like more
centers should be built. I mean I know from personal opinion when I think about ordering
Avon I find it a hassle to try and find a representative to get a catalog. I'd rather run
to the drugstore and buy cosmetics from there. Even the thought of having to wait for the
products to arrive to me is a disappointment. I know that if there were a distribution
center near and Avon products were accessible to me I would have a lot of Avon products.
This is why having products sold in department stores would definitely increase sales
since more people would be exposed to the Avon product line.