This website uses cookies to ensure you have the best experience. Learn more

Avon Marketing Channel Essay

927 words - 4 pages

History of Avon

Avon was founded in 1886 as the California Perfume Company by a book salesman named Mr. David McConnell. He got the idea of opening this company when he discovered that the rose oil perfumes he was giving away with the books were the primary reason people were buying his books not the book it self.
In 1914 the first international office opened in Montreal, Canada and in 1916 California Perfume Company first incorporated in New York State and by 1964 Avon stocks have been listed on New York Stock Exchange.

The company changed its name to Avon products, Inc., in 1939 by the new president of the company the son of the founder after the river that runs through Stratford-On-Avon in the English Midlands. The name is a tribute to McConnell's favorite playwright, William Shakespeare, who hailed from the town.
From only $500 revenues a day, which was recorded for the first time in December 1897, in 1920 the company’s revenues reached $1 million a year and by 1972 it reached $1 billion for the first time. In 2004 the total revenue of Avon was $7.7 billions!!
In 1999Avon names its first-ever female CEO with the appointment of Andrea Jung in November and in 2001Avon’s Board of Directors elected her as the company’s first female Chairman of the Board. She is one of five female chief executives of Fortune 500 companies, and is one of three holding the titles of chairman and chief executive.

Facts about Avon:

Avon is the world's leading direct seller of beauty and related products. It markets to women around the world through 4.9 million independent sales representatives a number that has grown 11% from 2003.

In addition to be the leading direct seller, it is the sixth largest global beauty company in term of size with total assets equals to $4.2 billions in 2004.

Moreover Avon is expanding in the global market rapidly and it has business operations in 60 markets conducting over 1 billion customer transactions every year.

Avon is achieving notable strategic and financial successes. In 2004 Avon has generated $7.7 billion in revenues with a grow rate of 13% from 2003. Avon is expecting even more grow in the coming years and expects a total revenue to be around $10 billion by the year 2007.

In addition, Avon is achieving even higher success in term of grow in net income and shareholders wealth. In 2004 Avon has generated net after tax income of $846 million, 27% more than 2003. Furthermore stock price reached $38.70, which is 15% more than 2003.

Avon product categories include Beauty, which consists of cosmetics, fragrances, skin care and toiletries; Beauty Plus, which consists of fashion jewelry, watches, apparel and accessories; and Beyond Beauty, which consists of home products, gift and decorative products, candles and toys.

Avon product lines include such recognizable brand names such as Avon Color, Anew, Skin-So-Soft, Advance Techniques Hair Care, Avon Naturals, Mark and Avon...

Find Another Essay On Avon Marketing Channel

Marketing 388 Assignment 1 Avon Ladies

1951 words - 8 pages Avon to a new level of marketing planning and development.The company's decision to refocus the company on its core business- selling cosmetics, fragrances and toiletries and selling unrelated business. With addition to cutting prices of Avon's product had a great impact on the marketing strategies because this step was a clear strategy to reinforce Avon's image and attract customers to take notice of its presence.The customers: The "Lets Talk

Marketing Management Marketing Report Avon in Australia

3936 words - 16 pages different from Avon's direct selling marketing strategy. Therefore there is a distinct distribution channel strategy difference between Avon and Revlon. Loreal develops and manufactures hair care, hair colour, skin care, colour cosmetics and fragrances. Products are available in all retail distribution channels including supermarkets, department stores pharmacies and hair dressing salons. This is also a different distribution selling strategy

Avon Products Redesigning it's supply chain

3825 words - 15 pages sells to customers in far more than 100 countries mainly through nearly 5 million independent sales representatives. Avon is the world's largest direct seller and among the largest global beauty companies and now also selling via retail and web. [Avon Annual Report 2004 and Avon Products Homepages]You can have a company with great products and a strong brand and excellent marketing communications but if the supply chain management is weak, the

Avon Case Study- International marketing

3089 words - 12 pages of door-to-door sales-ladies. Today, Avon remains the world's largest direct seller of cosmetic products with operations in 143 countries through 4.4 million independent sales representatives.Since its beginnings, the firm has evolved enormously due to the influence of various microenvironmental actors and macroenvironmental forces. Not only do these factors shape Avon's domestic marketing strategy, but these environments also have a great

AVON Case Analysis

6991 words - 28 pages Representatives sell Avon products more efficiently, and extending the Avon brand to new products and possibly new channels. (3) Bigger profit margins: Lower sales in Latin America than expected and additional strategic spending on consumer marketing initiatives caused the slight decrease in profits for the 2001 year. The drop may have been a lot worse if it was not offset by considerable margin improvement form the business transformation

Avon Case Analysis

2248 words - 9 pages internet and emerging new internet technology applications. For example, “Avon improved its web site under Perrin by making it easier for customers to purchase products online and began testing a Web-based ordering system for the company’s sales representatives in Japan.” Most if not all major competitors have also been focusing on the internet as a distribution channel; an example is Estee Luader marketing its products through www.Gloss.com. Product

An Investigation of Avon

3803 words - 15 pages relationships. * To be the Premier direct seller We will expand our presence in direct selling and lead the reinvention of the channel, offering an entrepreneurial opportunity that delivers superior earnings, recognition, service and support, making it easy and rewarding to be affiliated with Avon and elevating the image of our industry. I think this objective is SMART, but is ongoing. I think it will take a long time for this to happen

Avon Case Study

7534 words - 30 pages efficiently, and extending the Avon brand to new products and possibly new channels. (3)Bigger profit margins:Lower sales in Latin America than expected and additional strategic spending on consumer marketing initiatives caused the slight decrease in profits for the 2001 year. The drop may have been a lot worse if it was not offset by considerable margin improvement form the business transformation initiatives. Despite the incredible achievements

Managing change of Avon Products Inc

3851 words - 15 pages VisionCommunicating the change vision required using every possible channel and opportunity to talk up and reinforce the vision and required new behaviors. At Avon Jung's task was to create a global brand. At the time, each region was in charge of its own campaigns. As a result, the company logo, packaging and advertisings in Latin America, for example, looked nothing like those in U.S. Jung created a new "Let's talk" campaign and pushed for current

Supreme Canning Company

997 words - 4 pages GERALD ALBAIJM University of New Mexico, USA EDWIN DUERR San Francisco State University, USA JESPER STRAMISKOY Aarhus School of Business, Denmark INTERNATIONAL MARKETING AND EXPORT MANAGEMENT FIFTH EDITION Prentice Hall npnnl ol Peai'SOll E © 2008 AGI-Information Management Consultants May be used for personal purporses only or by libraries associated to dandelon.com network. CONTENTS Preface About the authors List of abbreviations Guided

HERBORIST

2632 words - 11 pages knowledge is distinct from other competitors. After the analysis, the successful entry benefits from the brand position, philosophy, images the company created, the marketing strategies and distribution channel the company chosen. Through the comparison and careful consideration, I suggest Herborist to expand the market in Mexico for the further growth. I have chosen the Mexico market through the precise international market selection process

Similar Essays

Marketing Mix Paper

809 words - 3 pages channel." (Avon, 2007) Avon Hello Tomorrow Fund is a public relation for the company to provide economic opportunity for women worldwide when employment options were limited. Avon has outlet sales brochures (the prices are right) until product last. Avon often has promotional price item that customers can take advantage of for one to two campaign monthly books.Avon marketing mix has been essential for the company since 1948. Without the four P's the

Avon Case Study

5072 words - 20 pages Avon case study in strategic management (SCM) Executive Summary: Avon Products, Inc. (Avon) is based in New York. The firm engages in the manufacture and marketing of beauty and complimentary products primarily in North America, Latin America, Europe, and Asia Pacific . Avon's products are classified into three product

Avon Case Study

3857 words - 15 pages percent within five years. Face-to-face selling comprised 79.7 percent of direct selling, preferred among senior citizens. The marketing budget would be increased to target customer traffic at Sears and JC Penney. Investment costs were limited to $15 - 20 million to launch retail products, with a bulk of expenses being absorbed by the department store. Avon's strengths would help increase global recognition of brand name and image. Jung

The Newest Avon Lady Barbie! Essay

1344 words - 5 pages to crack international markets. Mattel, Inc., announced in 1997 that it would partner with Avon to allow its salespeople to begin selling its Barbie dolls. In a 1996 test, Avon sold $43 million worth of two versions of Barbie, including more than one million of one version in just two weeks. Andrea Jung, Avon's president of global marketing noted that, "Our powerful distribution channel combined with their powerful brand is a huge opportunity