Avon Products Inc. is one of the leading brands in cosmetics industry specialized in direct marketing. The analysis of results and financial data allows to say that Avon is successful in its industry generating approximately $9.9 billion a year. For Avon, the aim of marketing is to build a brand in the mind of the women-customers. Avon’s branding programs are aimed to differentiate their products from all the other ones even, if they are similar (Drejer 41). Avon perfectly copes with strategic goals and objectives in advertising, sales promotion and other things with public relations in common. For Avon, there are different aims and different discussion regarding the fact whether the brand extension is good or bad. In most cases, as many experts say and as the world practice say, the brand extension has a lot of good features. For sure certain risks exist with brand extension, for example negative impact to the brand. It happens because they are not so distinctive as they shall be and there are not products which are good enough. “As a top global brand and world leader in lipsticks, fragrances and anti-aging skincare, Avon continues to revolutionize the beauty industry by launching innovative, first-to-market products using Avon-patented technology” (Avon Home Page 2009).
One of the best ways for Avon brand to become stronger is to narrow it focus, to sell cheaper and to dominate in certain category, i.e. be the first brand in a new category. The crucial step to success of the brand is its authenticity. For example, both Avon and Mary Key the leading brands in their categories. Thus, in order to compete with Mary Key and other cosmetic companies Avon has to be the leading one in certain segment, so it has try to create a category in which a brand will be a leader. This category can be aging products and lifting products. The virtual and national expansion of Avon is happening at an ever growing pace. Most of its virtual and online stores have shifted from multi domestic marketing to international marketing. For Avon, the appearance of virtual market has been enthused by the speedy enlargement and mixing of countries; the configuration of local trading blocs; the formation of market economies; and advances in production and communications technologies. Today, marketing strategies adopted by Avon are proving to be of ever-increasing importance to companies of all sizes, to their customers, and to national economies. Worldwide, most companies are now selling to, using materials or equipment from, or competing with products from other nations (Drejer 43).
For many companies, like Avon cosmetics, current market provides additional profits and is all that enable some companies to make any profits at all. Many women in developing countries are not familiar with its cosmetics but they are familiar with main brands and products. For Avon, marketing in developing countries represents great opportunities to expand its international activities and enter the new market (Drejer 54). The advantage of product differentiation will allow Avon to create a strong international brand image. Brand loyalty will also be important factor in increasing the costs for customers of switching the products of new competitors. Using an international market development strategy, Avon will capture a larger share of a market for current products through market saturation and market penetration. Taking into consideration rapidly changing environment and customers’ expectations it is not enough to operate only on a national market.
Avon Home Page. 2009.
Drejer, A. Strategic Management and Core Competencies: Theory and Application. Quorum Books, 2002.