Avon Business and Marketing Analysis

Keywords: avon benefits, intro of avon company

INTRODUCTION

Avon is a cosmetic company intended to carry out business on boosting women's beauty. This brand is currently a global leader with massive progress and high profits. Being the world's greatest direct owner, Avon has captured a sizable market in more than hundred countries with millions of the sales staff across the globe. The product line of Avon is quite large in spatial magnitude; it includes beauty products, fashion jewellery, clothing etc.

Avon is retailing its brands in the areas such as THE UNITED STATES, Latin America, Europe and Asia Pacific (Avon Company, 2010)

COMPANY BACKGROUND

Avon was founded in the us in 1886 with distinctive procedure of advertising womens cosmetic makeup products with the name of Avon contacting. This notion of business was initiated by David McConnell from newyork. The primary merchandise of business was not perfume and products but at the age of sixteen mcconnell started to sell books through door to door offering. He discovered he had not been able to entice the consumers to choose the books so he initiated the advertising campaign by offering free gifts as perfumes which he produced with the cooperation of the pharmacist. Eventually this ended up being an incentive that became a mainline product for avon and the books were abolished, paving the way for Avon makeup' existence. The entranceway to door offering was made specifically to specs and later by 1887 Mcconnell hired around 13 women representatives. In addition, with the passage of time the company started to grow and the name was altered from california plastic company to Avon Products, Inc. Currently is rated first across the nation in plastic industry with high earnings.

MACRO ENVIRONMENT

PEST ANALYSIS

(P)OLITICAL

As avon is situated in U. S we have to give attention to the realtionship between both UK and US which is exclusively close plus they share great trade and monetary relationships. Both are top trading companions of each other hence the business enterprise relations of both the countries are strong and have wielding electricity. Also the trade bonds and affiliations are strengthened (U. S international policy, 2010)

Avon uses its websites to market its products worldwide they need to follow the copyright policy of the uk. UK Government lately came up with the Consumer Coverage (Distance Reselling) conditions to be able to protect consumers which are buying online and have no immediate control with the seller. These Regulations are only applied to the consumers that purchase goods or services from a small business and not if it is business-to-business acquisitions, land sales, vending machine acquisitions, and buys made via auctions. Whereas to give distinguishing characteristics to the business such as brand, one needs to get legal documents which gives permission to take action. (IPO, 2010).

No an example may be treated in some other manner based on their genders, time and religious beliefs. Every Employee may it be a female or male engaged running a business if does not get their privileges and employers fail to similarly balance them can be terminated and dismissed (Occupation laws, 2010).

(E)CONOMIC

The economic fluctuations such as status of the market declines called downturn does change the demand for product which is coherent over time because for the reason that time women go through the crisis and get stressed. For the reason that mental pressure period their skin gets affected scheduled to burden and pressure hence they spend money on buying constitute to look good and fresh. Recent survey also signifies the statistics for the demand of make-up and aesthetic in U. K has truly gone up from 4. 7% to 15. 6bn. This clearly implies that in recession the demand of the merchandise increases (Beauty products business, 2008).

In 2000, the inflation climbed up however in the beginning of twenty first century and end of twentieth hundred years; it slumped down. THE UNITED KINGDOM economy grew by a faster-than-expected 0. 5% in the first quarter of the entire year, in line with the formal data shown below in figure 2. It had been the quickest increase and growth since 2006 (ONS, 2010).

Some consumer goods companies published more than expected comments for the United Kingdom's market because of large consumer spending. Hence this country has all components critically compulsory to transport the business procedures successfully. Once the beauty products and toiletries market will become the UK's quickly growing swift tempo retail sector it will dispose of the recession storm and stabilize the overall economy of UK which concurrently will have a great Effect on Avon`s greater and rapid market development.

(S)OCIAL

The important category and course of market is the fashion industry of UK because it comes with an increasing and growing consumer's interest. To be able to increase more customer consciousness about the brands and products released by the company Avon should understand about the extension of the brands living. Avon marketing methods are undergoing a big change to become gradually centered on a relationship and connection with the client; because Participants experienced the image of Avon is not positively mirrored by its advertising and Avon representatives. Although the beauty products industry is increasing sales by bringing the merchandise that cater to the needs and desires of folks with particular ethnic backgrounds, pores and skin and mane types, and genetic characteristics, many customers are not aware of the brand campaigns and its lifetime on the market. Avon must market through stores to represent them so that consumer can get understanding of such flexible brand with comprehensive product line. The marketplace for cosmetic makeup products is very profitable because women in UK never trade down in beauty. They are in love with fashion and the makeup products sector is moved by mass market brands. A large number of marketing types are put on the retail industry according to the change in consumers fashion and lifestyle.

(T)ECHNOLOGY

The new advanced and modern methods are being used these days in order to schedule up the existing share of the cosmetic company on the market. Hence technology can be used fully to align and compete in the market of toiletries and beauty products. For instance, the virtual make up possibilities online on web sites of the business gives a genuine effect which includes also helped Avon to take over the region with the help of e-commerce; accelerating in this field to get the utmost attainable show (Kumar, 2004).

Cosmetic industry is remunerative and income generating business where the key to accomplish and succeed is creativity and new creativeness because the merchandise life cycle is designed for a restricted time and will keep changing but Avon is covering every part in the best possible manner. Avon unexpectedly has taken this area of electric marketing over companies whose advertising techniques deals in face to face consultation.

MICRO-ENVIRONMENT ANALYSIS

FIRM

The company is providing the product on a large scale and are actually the global leaders of marketing technique called Direct Selling. The business has large workforces who are normally not the employees of the business but the providers and contractors hired. The whole team is working on satisfying the needs and needs of the client. They give extra weight to the new product offering and opportunities and also new marketplaces that have emerged. To achieve this company is trading an increased amount in research and development domains to hold it and also to gain a competitive advantage in health and beauty care. The staff of the company market the merchandise through brochures, advertising strategies and also by contributing to the improvement and evolving their global aesthetic representation to be famous and known.

COMPETITORS

Every company in the plastic industry is positively engaged in being truly a market innovator by rewarding the needs and peremptory demand of the client related to health insurance and beauty products.

Companies such as Estee lauder, potential factor and Revlon have many competition such as Route, Lancґme, Maybelline, L'Oreal, Lakme but the primary opponents of Avon is Mary Kay across united kingdom as it is similar to Avon and would depend upon the indie sales and direct selling method. Hence both they are the rivals of the other person in the same business market (Kumar, Massie and Dumonceaux, 2006).

Marketing mix

AVON PRODUCT LINE

The company has a broad and panoptic products which fulfils the consumers' wants of purchasing the commanded goods.

Avon Products is referred to as follows

MAKE UP

It involves the products put on alter and alter the appearance not having an effect after the functions with the purpose of boosting beauty and attractiveness e. g. lipstick, nail polish, vision shadow, foundation, powder, etc.

SKIN CARE

Skin is an integral part of the body gives shape to the beauty of any person as well as for a corporation like Avon, which emphasises on the aspect of beauty with glamour; it can't disregard the skin care products. Major products that Avon provide in this particular area are: cleansers & toners, vision care and attention, moisturizers, problem solvers, anti-aging, skincare

BATH & BODY

Avon take care of the shower and body products with extensive good care as it soften and lightens your skin and present a shine to it with beautiful perfume which gives a pleasant sense. It includes (body lotion, side cream, bathroom & bathtub, body sprays, feet care, sun care, depilatories, bath & body)

HAIR Treatment: A wide range of products which are Perfect for all hair types(shampoo & conditioner, treatments, brushes)

AVON Health and fitness (home environment, fitness, Health and fitness Specials)

FRAGRANCE:

GIFTS & FASHION (Presents, jewellery, outfits, accessories, inspirational treasures etc.

OUT DOOR Coverage: These products prevent the epidermis from the exposures in the sun (self-tanners', suntan creams, insect repellents, children's)

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PRODUCT DEVELOPMENT:

Lisa Midyett, director of world marketing job for Avon spoke about Avon new product development process that has put an impact on procedure for forming suggestions to the execution process. The business entered into a fresh task four years when Avon had evidently separate procedure for development for each country these were hauling their business operation. They planned to focus on globally-aligned process which would work in the same manner for everybody but later carried out an activity which got some drawback too and required a lot of administrative and management work which company found ineffective and wanted to focus on invention rather than hanging out in general management. Hence they integrated a new systems solution called horizon. Furthermore company have ideas to implement about the upgrade of the software which would add more towards expanding new products, providing the data customers needs and also in having a single gain access to point (Consumer Goods, 2008)

BRANDING STRATEGY

Avon basically uses a discreet branding strategy. It offers several brands to provide and those brands are for unique segments. As a result of this, Avon is rolling out a distinctive image for each of its brand so as to cater to the preferences and purchasing behavior of the clients in each portion.

PRICE

Although many respondents were not serious about the Avon price issues and as a matter of fact, many of the women thought that the price of the merchandise are mutually and logically linked to the quality. Since their encounters are something that signifies them, hence they sought the perfect plastic for adding value to their face beauty because it presents them how they would like to see themselves (Beasley, 2007)

Avon comes after a competitive rates strategy; they keep a check up on their competitor's costing and then give attention to lowering the product costs and increasing the worthiness propositioning for the users.

PLACE

RETAIL Stations: Company hires the self-employed sales representatives to market their products that are not the personnel of the business but neutral traders. As soon as they receive requests from the customers they send on the demand to the nearest syndication centre of Avon and are then sent to the consultant by local delivery system.

ONLINE: Consumers can purchase the products online from Avon website www. Avon. uk. com

PROMOTION

SPECIAL PROMOTION Happenings:

Brochures: It really is the main important marketing device employed by Avon (Kumar, Massie and Dumonceaux, 2006).

TVs, publications and Radio announcements

Product sampling: They give product samples sometimes so that consumer may use them and try before making a purchasing decision.

Bulletin boards: Representatives leaves their phone numbers on the plank to get hold of them with a few words written onto it to draw in customers.

Discount coupons: Company provides discounts sometimes on the purchase of Avon products.

Gifts: To please customers and entice them, the company offers small items to them.

coupon packs

(Avon products, 2002)

ONLINE ADVERTISING:

Avon. Com offers consumers the knowledge about the business's product marketing promotions that tempts and allures a consumer to get products at discounted prices.

myavon. co. uk/earn with: That is for the person who would like to work for Avon.

www. AvonShop. co. uk: Free delivery in case a person shop more than 20 pounds (Avon, 2010)

Social Networking websites: They make an effort to promote their product using social areas such as facebook, tweets and my space

SLOGAN AND JINGLES

Avon Calling

The Company for Women

Avon is made with you in mind

Avon is designed for life's unforgettable moments

UPGRADING THE BRAND IMAGE:

Job fairs: Avon organizes a Job rational for the individuals who are unemployed and wishes to be employed by Avon and also have high interest to provide the business.

Corporate social responsibility- contributes in well being of the modern culture and its environs. Mainly centered on women issues, empowerment and health.

(Eikenberry, 2009)

PROMOTION STRATEGY OF AVON: The Company follows a pull strategy as they don't put stresses on the vendors and distribution stations to provoke customers to buy their products instead they give attention to promoting their company through advertising and through other message boards of sales campaign. Advertising this way itself creates an emotional elegance that helps the consumer to select the merchandise they want for.

SEGMENTATION, TARGETTING AND POSITIONING

SEGMENTATION

Avon has segmented its market in the following Age ranges.

Youngsters: From age of 16 to 24

Middle older women: From age of 25 to 35

Old women: 35 above.

The company also comes after the psychographic segmentation as it divides the purchasers into groups of teens and later years women to provide the products according to their demands.

TARGETING

Avon, Company`s most important and primary target market has always been female between 35 and 54 but now the company is very engaged to focus the teens because of large growing teen market through internet, direct selling, and catalogues. Promoting and advertising Avon product to the children is Avon's new plan of action to expand the business into new product school and paths to circulation. Company is locating the young sales associates with the age lesser and add up to thirty five, to advertise their brand to draw in the youngsters (All business, 2001). Avon is concentrating on the women possessing high interest and love for beautifying their body. It follows Differentiated strategy because they are focusing on two marketing mixture for two different target marketplaces.

POSITIONING:

As quoted by Matt Phillips (2003, p. 5) "Avon girls are a household name in the united kingdom "clearly defines the company`s abstruse thinking related to marketing in the ladies sector.

Positioning map:

Company is providing the merchandise with the product quality similar to the rival but at a lower price

Marketing mix positioning of Avon with high quality and good deal does not impact its strengths as lower price is never inadequate for Avon to hide the expense of quality. Company

Goes with the traditional approach of experiencing products similar to the competitors and is being successful advantageously.

RECOMMENDATIONS

In spite to the fact that Avon is carrying out their business really well in the UK market, they should concentrate and keep some elements into consideration. For e. g. the marketing campaign of this company is bound and limited to brochures, directory site, catalogues. Etc, the company must have a thought above the addition of models to advertise the Avon products. This is attained by finding fashion models with different looks because many individuals on the target groupings want to see products on someone who has appearance and resemblance comparable to theirs.

Concurrently the availability of Avon product in the departmental stores is less, hence the Goods should be accessible on the stores in the united states.

Moreover, THE BUSINESS should keep a check on their representatives to make sure that the brand name is properly symbolized on the market. It is strongly suggested for Avon to constitute brand collateral to be able to improve the brand 'success with the audience.

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