Professional Documents
Culture Documents
5
Agenda of the Presentation
4. SWOT Analysis
5. Marketing Objectives
8. Competitor Analysis
Revlon
L'Oreal
Mary Kay
A PERIOD OF GROWTH
As the firm grew, so did the product line. In 1920,
the company introduced a line of products called
Avon that consisted of a toothbrush, cleanser,
and vanity set. The Avon name was inspired by
the area about the company’s laboratory at
Suffern, New York, which Mr. McConnell thought
resembled the countryside of William
Shakespeare’s home, Stratford-on-Avon, England.
The name of the line became so popular that in
1929, the company officially became Avon. By
1929, the company was selling low-cost home
care and beauty products, door-to-door and
through catalogues in all 48 states.
productlines include lipsticks, foundations,
bath and skin lotions, anti-aging cream,
perfumes, as well as jewelry and clothing
Fragrance
Skincare
Cosmetics products
Cosmetics products are lip gloss, lip liner, lip
conditioner, lipstick, foundation, face powder,
blusher, cleanser, toner, moisturizer, eye liner,
eye shadow, mascara, shampoo, conditioner,
styling cream, nail polish, cold cream
Avon men & women fragrances
Avon men fragrances are Avon untamed,
black leather,black suede,driven black
Avon women fragrances are blue
rush,candid,far away, sweet honesty,
perceive,bond girl
Avon skin care
Avon skin care products are
facial cleanser
Moisturizer
Fairness cream
Fairness lotion
Fashion products:
Watches
Accessories
Toys
Home products:
AVP earns 11% revenue from home products
that are offered in market includes:
Gifts
college-aged women)
"M" (an Avon catalogue for men)
These brands have helped the
company reach out into markets
it has not serviced.
AVON’S BRANDS
Mark proved to be successful in
reaching a new generation of recruits,
primarily young women ages 18-25,
with a monthly “magalog" featuring
award-winning products.
SWOT Analysis and
Internal & External
Environment
SWOT Analysis
Strength
Weakness
Opportunities
Threats
Strengths
Strengt
h
Positioning
Celebrates young women making
their Mark in World. Fun, fresh,
modern and affordable price
Target Market & market Demand
Avon focuses on capturing the market younger women,
college student, men with disposable income in its effort
to promote the sale of the sink-so-soft brand extension
products
Vietnam
Cambodia
Product
Avon will reduce product by 30% by reviewing and
eliminate poor performing products and combining
near duplicate products.
Lunched new brand extension of the Skin-So-Soft
product
Avon new products is directed towards teenage
college students and younger women
Pricing
Price
Avon market most of its product at moderate
price in relation to the industry.
Discount and price reduction will be offered
periodically.
New brand extension product will be priced
at approximately the same price as the
original brand.
Place
Liquidity Ratio
Activity Ratio
Debt Ratio
Profitability
Profitability
Price/Earnings 7.88
Changing Marketing Strategy
Changing Marketing
Strategy
Change #1:
Refocus product lines to core businesses
Price Cuts
“Leadership” bonuses for salespeople based
on sales of people they recruit
Change #2:
Avon Select
Catalogue with toll-free number, designed
International Marketing
Strategy
Domestic Marketing
Strategy
Recommendations:
Consistency in Marketing Strategy
Better Positioning
Distinctive Product Line
Better Sales Force Incentives
Better Coordination of Distribution
Channels to Minimize Conflict
International Marketing Strategy
Recommendations:
Stick with selling to Retailers in China less
risky
Expect to sell smaller volumes to many
customers due to Economics of this country
Different Products to Appeal to this Market
Develop more Partnerships with companies like
Mattel
Takeaways
(Conclusion)
Find a strategy and stick with it
Important to position a company (re: a
target market) and have a focused
strategy that flows from positioning
Always keep in mind the broader
environment when formulating Marketing
Strategy (anticipate changes)
Capitalize on opportunities in developing
markets
May be a better fit with a company’s
strengths
Keep in mind Sales force Availability
Economic, Political, and Cultural factors
ANY
QUESTION?