2. Direct Marketing
• Direct marketing is the use of consumer-direct channels to
reach and deliver goods and services to customers without
using market middlemen, wholesalers, advertisers and retailers.
• Direct selling can be conducted one-on-one, in a group or party
format, or online.
• According to the World Federation of Direct Selling
Associations (WFDSA), 87 million people, roughly the
population of Vietnam, are part of the global, direct-selling sales
force. Direct sellers around the world have $132 billion in sales
annually
4. ABOUT AVON
• Avon Products, Inc. is a world’s No. 1 direct seller of beauty products Avon
offers its customers not only a wide assortment of cosmetic products but
also jewellery, home decoration items, accessories and wellness products.
• It was founded in 1886 by a 28-year-old David H. McConnell who sold books
door-to-door and gave out perfume to entice women to buy his books.
• It started with California Perfume Company (CPC) in New York. In
October, 1939, the company was changed officially to Avon Products,Inc.
• As the world's largest direct seller, Avon markets to women in more than
100 countries through over 6 million active independent Avon Sales
Representatives.
• Avon has been responsible for breaking the conventional mould and
bringing the cosmetics counter to our doorsteps.
7. Mission statement and its element
• Avon's mission statement is to be the company that best
understands and satisfies the product service and self-
fulfillment needs of women, globally.
• The three most important elements, however, are the focus on
women, on being global, and on the additional opportunities
for Avon in self-fulfillment.
• At Avon, the "direct" part of direct selling also refers to the
personal component of this sales channel; it’s about building
relationships with people and offering them a high level of
service and personal attention.
8. The Principles That Guide Avon
1. To provide individuals an opportunity to earn in support of their
well-being and happiness;
2. To serve families throughout the world with products of the
highest quality backed by a guarantee of satisfaction;
3. To render a service to customers that is outstanding in its
helpfulness and courtesy;
4. To give full recognition to employees and Representatives, on
whose contributions Avon depends;
5. To share with others the rewards of growth and success;
6. To meet fully the obligations of corporate citizenship by
contributing to the well-being of society and the environment in
which its functions; and
7. To maintain and cherish the friendly spirit of Avon.
9. Avenues of growth identified by Avon:
From a global perspective, three avenues of growth were
identified by Avon management:
geographic growth,
leveraging distribution channels in emerging and developing
markets, and
marketing in developed industrial areas.
10. Avon’s competitive strategies.
AvonAVON LADIES
Ladies
Since its core element is its focus on women worldwide so
who else can understand the needs of women better than
another women.
Hence in order to retain customers and garner a good
customer relationship they hire women representatives widely
known as AVON LADIES. It gave them a competitive
advantage over their competitors.
11. Cross category or bundle selling
• Bundle selling ,also known as up selling and cross-selling is a
practice of marketing, promoting and selling an additional
related or unrelated product with the main product. Thus it
ensures economies of scope by reducing average cost of
marketing of two or more brands of the same company.
• Avon representative make it a virtue to promote and market
secondary products in addition to the product being demanded.
• And since high customer interaction leads to better
understanding of customer`s additional needs and wants
bundle selling is bound to be more successful in direct
marketing as proved by Avon.
12. Advertising in local businesses
• It is one of the ways Avon agents manage to
reach a larger customer base. They do this by
offering to deliver products that customers
purchase online to local businesses such as book
stores, coffee shops and restaurants. This
effectively results in saving the shipping costs
which is borne by the customers. To make this
arrangement a lucrative proposition for the local
businesses who store and hand out Avon
products, the agents offer them a part of their
commission.
13. Internet Marketing
• Another popular and cost effective sales strategy adopted by
many Avon dealers is writing informative articles in websites
such as Associated Content and Ezinearticles.com. These
articles are linked to their Avon business website. This is an
excellent way to drive traffic to websites and increase sales.
15. About Business Website
• Customized social media environments for Representatives to
reach customers and other Representatives.
• A personalized eBrochure widget to ensure that customers are
never more than a few clicks away from ordering, sharing
the eBrochure with friends and creating a viral sensation.
• Online training and sales tools.
• A new application for Sales Leadership Representatives to
more effectively monitor their Representatives’ orders.
• “Intelligent ordering,” which makes it easier for Representatives
to place their orders with Avon and ensures that they receive
special product offers that are relevant to them.
• A widget which lets Representatives embed the latest Avon TV
advertisements and videos into their own social media
platforms.
17. Multi Level Marketing
It is a marketing stregy in which the sales force is compensated
not only for sales they personally generate, but also for the sales
of the other salespeople that they recruit. This recruited sales
force is referred to as the participant's "downline", and can provide
multiple levels of compensation.
Other terms for MLM include pyramid selling, network
marketing and referral marketing
18. Doing Good: The Other Face of Beauty
• Corporate Citizenship is also an important aspect of the company that
continues to give back to the community. It has been a part of Avon since the
company's inception, and has played an extremely important role in Avon's
desire to be a part of the societal affairs.
• The company has dedicated great funds for cancer research and even to
eliminate abuse of women worldwide, giving back to the community.