Avon Beauty Company
Avon is worldwide beauty company, which would also be termed as a women’s company because it deals with beauty products and skin ointments, with the ladies being the number one customers. The company was founded in 1886 by Mr. David H. McConnel, who supplied books from door to door, and offered a small token of perfume to keep the ladies buying, and later grew to form a perfume company after it got more popular than the books. It has very unique strategies in relating to the world and making sure that they offer utmost quality services to the community it serves. This includes maintaining high levels of invention and innovation, training its associates and representatives with amazing skills in business. Because it deals with women, it has gone further in its market strategies to improve the living standards of women in the globe by helping fight back breast cancer and household problems that affect millions of them daily. Due to this personal interaction with its customers and employees, it has kept its name in the light, and that helps it its course to make huge sales. It is one of the leading employers in the world because it has opened branches all over the world, with a commitment to keep its employees updated and informed on new market approaches and teaching them on career growth and improvement. It also offers information to its workers on how to manage the chain of supply and communication skills to keep in touch with customers.
One of the major marketing approaches by Avon in marketing its products is by selling directly to the consumer. This is met by utilising the many marketing representatives, most of whom are ladies who deal with customers door to door, and through the established online network to advertise their diverse products globally. The company constantly trains more and more representatives, who are also expected to recruit and train others, thus expanding the market outlets (Cravens, Lamb & Crittenden, 2010). In addition, Avon does not just sell beauty creams and skincare products, it has come up with numerous kinds of commodities of high quality to meet consumer demands, including hair products, jewellery, art facts, toys and many more. It tries as much as possible to produce commodities that relate to every other product, for example skin care lotions and body creams. This ensures consumers get a wide range of connected beauty products instead of opting to get only a few from Avon and shop elsewhere for things unavailable here. The company also ensures that there is fair pricing of their products by offering discounts depending on how much the customer is willing to spend buying their accessories, the more goods one buys the greater the discount given. This makes customers spend more to earn the reduction, hence more sales and profit for the company.
More to this, Avon’s most impacting marketing skill is the campaign against breast cancer in women, which was launched in 1992, and so far has helped raise more than 500 million dollars to step up the research on breast cancer. The funds help put up campaign on the awareness of the killer disease, in educating women of all ages on the importance of healthy diet, and also in the provision of cheap medical care to those suffering from breast cancer. Avon also arranges concerts, open runs, walks and conferences in a bid to advertise on breast cancer to the public (Malhotra, 2011). This has brought the world together in supporting women in this fight, and at the same time allows everyone from across the globe to identify with the company. Avon also responds to emergency situations like earthquakes, not only from within The United States, but also internationally. It comes in handy in the assistance for recovery, fundraising initiatives, donating relief food to volunteer groups, and helping women rebuild their families and restore their lives.
Avon is more dependent on its foreign markets because of the monotony of its products, as in the company has been there since ages ago, so the commodities they have been distributing is already available in the local outlets. They do not sell that much than internationally and so the firm concentrates on exporting and constructing other branches all over the world to make sure the products are available at all times. Another reason why Avon sells outside the country is because of stiff competition by other similar companies that have sprung up from within The United States. Being one of the earliest beauty companies, it must have taken time for the company to stretch to all corners of the country and exhaust its customers, but the same would apply for having been the first to hit international markets. This is mainly because most of the countries that are still developing have not yet got to the point of inventing their own beauty products. Avon therefore finds its potential buyers from foreign countries, and due to the many branches wide-reaching, it makes large sales volumes through international markets (The University of Michigan, 2006).
Socioeconomic and demographic changes would affect Avon in so many ways, and would hit its market strategy directly and indirectly. International rules and regulations would restrict the movements of the company’s finished products, and also control the amount of goods to export. Socioeconomic impacts which include the effects of the changing technologies or natural calamities that would influence the distribution of people within a certain area. Concentration of people in a place, say a city or district affects business positively as the market would be readily available and advertising made easy because of increased population. The same way, when crowds disperse and scatter, it makes to difficult to manage the link with customers. Demographically, a company can be able to assess which kind of age group or sex consumes what kinds of products. For Avon, if girls from a certain community are married off and dispersed to different places, the demand for beauty products for ladies and women would go down and therefore a call for a different approach.
Worldwide economic recession would badly affect Avon because it deals with products that sell on a daily basis. When everything goes expensive, there is low household income and people naturally learn to do without secondary needs, and beauty products fall in this category. Women will buy less of the products, unless their prices go down, which means that low profits would be recorded, then companies like Avon would retreat to minimized production of their goods. The idea of this company to sell their products in small quantities allows it to create customers of the lowest capability and poor income, hence a great network of customers. On the contrary, it would not be making lump sum sales and would have to wait long large profits.
If Avon was to make a choice on how to win potential suppliers, it would ensure that the area has a growing need for a numbers of products. The place should also be close to other business institutions if not adjacent to major cities because it ensures easy access to consumers, thus networking would be comfortable (Glueck, 2010). To avoid direct competition and creating business rivalry, firms should be situated away from other similar companies that would be targeting the area for their supplies. There are a number of companies than have come up to compete with Avon for market, although it still has the advantage of its big and established name. Another advantage is to do with how far it has stretched its outlets, but with the constant inventions and new technologies in the world today, with increase in demand for different types of beauty creams and soap, other companies are growing so fast Avon would not notice easily. Competition is stiffening everyday and Avon has to step up their game lest they find themselves struggling to keep up in a few years to come.
Malhotra, N. K., (2011). Marketing research: an applied orientation. Prentice Hall.
Glueck, W. F., (2010). Business policy and strategic management. McGraw-Hill series in management
Management Series, McGraw-Hill International Series in the Earth and Planetary. McGraw-Hill.
Cravens, D. W., Lamb, C. W., Crittenden, V. L. (2010) Strategic marketing management cases,
The Irwin/McGraw-Hill series in marketing, Irwin Advantage Series for Computer. McGraw-Hill/Irwin.
The University of Michigan, (2006). Rubber journal, vol 151. Original from the University of Michigan.
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