Mkg comm2

Integrated Marketing Communications

MKT 642

Amy Thomas

La Donna White

September 24, 2003

Summary of the Case

• Thoughtful transformation of Avon – Enhancing Avon’s image around the world

– Expanding the Avon brand into new markets

– Creating new products and new distribution channels

– Increasing growth in Avon’s core product line

– Enhancing the experience of the Avon representative

Summary of the Case

Avon.com• Created in 1997• Caters direct-to-consumer sales• Solution for stranded customers• Reasons for success

– representatives were addressed

– earned extra money through advertisement

Summary of the CaseNew Distribution Channels

• International market– retail selling– Quelle shops in Germany (7000 stores)– Avon-run beauty counters

• American market– mall “kiosks” (50 in operation)– franchised to representatives– 90% of customers are 1st time buyers

Who is Avon’s Target Market?• Women

– ages 30 - 40– shops at the mall for beauty products– willing to spend additional money for higher quality and prestige– first time buyer– average to high income

• Representatives– full time employees of AVON– purchase mall kiosk– 12,000 leadership representatives– trained through the Beauty Advisor program

Who is Avon’s Target Market?American Market

Women Representatives5 million- stranded 100,000 full-time

reps2.4 million- new customers 12,000 lead reps3.6 milliontotal - 11 million customers 112,000 kiosk owners

German MarketWomen Representatives4 million Beauty Advisors

What is the potential for conflict?

Representatives

• Competition• Conflict with new customers• Benefits lead and fulltime representatives• Loss of customers• Delivery system becomes unattractive

What is the potential for conflict?

Current Customers

• Do not purchase beauty products in the mall• May not frequent high end stores• Loss of personal/familiar connection• Higher price

What is the potential for conflict?

Potential Customers

• AVON brand name conflicts with the image of high-end retail stores

• Current market is very competitive• Will not see other products offered by AVON,

which makes up 40% of sales• May work in international market

How is managing conflict in case (B) different from case (A)?

Website Retail Stores

same target market 1st time buyerssame brand image new brand imagesame distribution method loss of direct sellingless threatening for reps direct competition

Are there other strategies that would take advantage of the Web without creating conflict?

• Create a new brand name– NOVA (AVON spelled backwards)– use as the website name– high-end products, higher prices– luxury car of beauty products

• Introduce NOVA to retail– advertising campaign– target market is women who would not purchase

AVON

Progress of Avon•39 million representatives• 1 billion transactions per year•Website•Kiosks•AVON spa in New York•Mall locations•New brand for younger women (Mark)

Questions