Avon

MARKETING

Case Assignment:

AVON

Actors in microenvironment and forces in the macroenvironment that have been important in shaping Avon's marketing strategies

Microenvironment

The company consist top management, finance, R&D, purchasing, operations, and accounting.

Top management sets the company’s mission, objectives, broad strategies, and politics.

E. Preston serves as chair and chief executive of the Avon Company. He changed marketing strategy of the Avon. First, he sold unrelated business and concentrated on- selling cosmetics, fragrances, and toiletries. Second, he cut prices on Avon products. Finally, he tried new compensation program, which was cancelled because of the cultural incompatibility.

Preston developed program called “Avon Select” which featured catalog and toll-free telephone number that allowed direct-mail selling. It supported program by advertising campaign.

In 1997 Preston decided the Company selling products through retail stores. He argued that many customers won’t buy Avon products from Avon ladies in a one-on-one situation.

Preston announced the creation of global brands out of its several products and standardize its promotion efforts.

Avon (president of global marketing) partnered with Mattel in 1997 in selling Barbie dolls.

Suppliers- during the 1970s and 1980s the environment changed. Many Avon ladies decided that they needed more than part-time jobs, meaning that labor force supply decreased during these years.

Marketing intermediaries- include physical distribution firms, marketing services agencies and financial intermediaries.

During 1970s and 1980s more women found that they needed to work outside the home. Avon was direct selling company. They met with customers in their homes, showed products, took and deliver orders. As the result of the environmental changes Avon ladies couldn’t connect with customers as they were not