Avon Products, Inc.
This case study discusses Avon’s needs to implement innovative marketing strategies against increasing competition from other direct marketers and the cosmetics’ retail industry.
This case study analyzes Avon as a company and as a strategy maker. The author found that Avon is mostly inclined towards the differentiated defender strategy at the moment as this choice will help Avon defend its existing position in the mature cosmetics industry while it initiates some line extensions strategically targeted towards the latest predominant makeup consumers: teens. In addition, the author finds that Avon possesses superior marketing skills that no other direct marketer has being able to reach in the U.S. market or abroad. These include tracking consumer-changing needs, maintaining customer awareness and loyalty, and having a strong customer relationship. The latter will continue to improve since new channels of communication are being currently developed such as 800 numbers, websites and other computerized systems that will also encourage more representatives to do their best job in order to increase their income.In conclusion, Avon will continue to increase her sales and the number of sales representatives if she sticks to this strategy.
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“Avon Products, Inc is the largest manufacturer and direct marketer of cosmetics, fragrances, toiletries, and costume jewelry. Its global brands include: Anew, Avon Color, Avon Skin Care, Far Away, Rare Gold, Perceive, and Women of Earth. Avon’s corporate vision to be the company that best understands and satisfies the product, service and self-fulfillment needs of women globally, has positioned the company as the best place for consumers to buy and thebest place for women to sell. In 1991 Avon had 1,120,000 active sales representatives operating globally.”