Started in 1886 as the California Perfume Company, Avon was renamed in 1939 and known for its "Ding Dong Avon Calling" marketing campaign. Avon pioneered direct selling by leveraging its large network of independent sales representatives to directly market products to customers. Focused on empowering women, Avon established charitable foundations for breast cancer research and domestic violence prevention. Using a multilevel marketing model, Avon representatives recruited customers through social networks and one-on-one interactions. In the late 20th century, Avon faced challenges in utilizing the internet while maintaining personal relationships between representatives and customers.
History and Marketing Strategy of Cosmetics Giant Avon
1.
2. Started as California Perfume Company by David
Mcconnell.
Named Avon in 1939.
“Ding Dong Avon Calling” campaign started in
relation to there expansion strategy.
Expounded the Direct Selling Method.
The “Back – to – Basics” approach helped them
pioneer the Direct selling method
3. Superior customer service compared to rivals.
Wider geographic coverage than rivals.
More attractive product line than rivals.
Improved e-commerce and Internet sales
capabilities than rivals.
Stronger global distribution and sales
capabilities than rivals.
4. Focused on improving the life of women and ensure
trust by
Providing them a way for earning there living.
Staring Avon foundation for women.
Starting Avon breast cancer crusade
And Avon speak out against domestic violence
5. Person to Person-selling and Party-Plan
approaches were used.
A social networking way before face book.
Sales force leverage their Network to get
more customers.
Sell as well as recruit and form multilevel.
Focus on Convenience and access
6. MARKETING
70 % of the customers were buying through
representatives.
SALES FORCE
0.5 million sales reps in the US
All Avon reps were independent contractors
Extensive sales management hierarchy to
recruit, train and advise the representatives.
7. The reps tend to sell in one-on-one meetings
either at work or at home
They are deliverer, order taker, missionary,
demand creator and as well as solution
vendors.
SELLING PROCESS
The leadership program allowed a rep to earn
additional money by encouraging other
women to become Avon Sales rep.
8. The catch 22 situation the company faced was how to utilise
the internet in there B2B and B2C models?
AVON
AVON
• B2B REPRESENTATIVE
• B2C CUSTOMER
9. 1. An online platform should be used to take
the orders.
2. For promotional purposes incentives could
be given to the sales representatives .
3. The company should also use the B2C path
because a significant amount oftarget
customers would buy independently.
4. There must be co-ordination between the
sales-reps and the avon.com
10. 5. The website should be more attractive .
6. Communication with clients must be done
through sales reps to ensure a personal
touch.
7. There can be a forum so that the reps as well
as the customers can discuss about the Avon
products .
8. The products should be directly shipped to
the customers who make online orders.
11. Group 7
SHANTANU DM14144
SINDHUJA D DM14147
SHIVEN SALUJA DM14248
TULSI CHOUDHARY DM14256
VIJAY KRISHNAN A DM14257
RAMYAA RAMESH DM14266