Marketing Mix of Avon and 7Ps (Updated 2024)

The Marketing mix of Avon analyses the 7Ps of Avon, which include the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Avon. Avon Products Inc. is commonly known as Avon and is a public limited company. It is a personal care brand associated with the FMCG industry. Avon was founded in 1886 by its founder, David H McConnell. As a direct-selling company, it is ranked in the second position. It ranks fifth globally as a multi-level marketing beauty corporation with 6.4 million representatives. It faces competition from several rival brands, which include:

• Amway
• Oriflame
• Lakme
• L’Oreal
• Sunsilk
• Natures

About Avon

• Type: Personal care company
• Industry: Cosmetics, skincare, fragrance, and personal care
• Founded: 1886
• Founders: David H. McConnell
• Headquarters: London, United Kingdom
• Area served: Worldwide
• Current CEO: Angela Cretu
• Number of employees: 6.4 million
• Major products: Cosmetics, skincare, fragrance, and personal care

Avon Product Strategy

Avon is one of the leading companies in the world in the market research terms of beauty products. It primarily sells products in a complex and diversified range of items that are essential for women but, with time, has incorporated products for men. Its offerings are under its brand name, Avon, and several sub-brands like Avon Series, Avon True, Anew, Avon Senses, and Avon Care.

The new Product Mix of Avon in 2024 is as follows (Source).

1. Skincare Products: Avon’s skincare line includes products that cater to multiple skin concerns. This includes serums with active ingredients like hyaluronic acid, snow mushroom extract, and pro-vitamin B5, aiming to target issues such as dryness, dark spots, and signs of aging. They also offer moisturizers and creams with nourishing ingredients to enhance skin texture and tone.
2. Body Care Items: The company provides an array of body care products, including advanced formulas like Moisture Therapy Balance + Soothe, which supports the skin’s microbiome. These products deliver deep hydration and relief for dry and itchy skin, with options like body washes, lotions, and creams.
3. Hair Care Solutions: Avon’s hair care range includes volumizing, damage repair, and hydration products. They offer hair oil serums, masks, root touch-up products, and various treatments enriched with ingredients like royal jelly and Moroccan argan oil, catering to different hair care needs.
4. Anti-Aging and Firming Solutions: Avon has put a significant emphasis on anti-aging products, offering serums and creams with ingredients like vegan collagen, pomegranate extract, and peptides. These products are designed to help the skin appear firmer and plumper and reduce the visibility of fine lines.
5. Vitamin C Enriched Products: Recognizing the benefits of vitamin C in skincare, Avon offers products like Anew Power Serum and Vitamin C Illuminating Priming Moisturizer. These are formulated to brighten the skin, improve texture, and provide antioxidant protection.

Avon Pricing Strategy

At the end of the 2016 financial year, the brand Avon posted its revenues at 5.72 billion US dollars and its net income at 107.4 million US dollars. More than 88% of the revenues earned from the mix of Avon products come from its overseas markets.

Avon has positioned itself as a high-quality product line readily available to customers. It targets homemakers and regular cosmetic purchasers who are comfortable buying in their own space from their homes.

Avon’s pricing and marketing strategy also exemplifies a mix of customer-centric and market-aware approaches, crucial for their success in the highly competitive beauty and personal care industry. Here’s their marketing and pricing strategy again:

1. Value-Based Pricing: Avon sets prices based on the perceived value of their products to consumers. Their range of skincare, body care, and cosmetics is priced to reflect their quality and benefits, ensuring customers feel they are receiving value for their money.
2. Competitive Pricing: Aware of the competitive landscape, Avon strategically prices its products to compete in the beauty market. This involves regular market analysis to ensure their prices align with or offer a better value than their competitors.
3. Discounts and Promotional Offers: Avon frequently runs promotional campaigns, offering discounts and special deals, mainly through their catalogs and brochures. These promotions are designed to attract new customers and retain existing ones, enhancing the overall appeal of their product lineup.
4. Tiered Pricing Structure: Avon offers products across different price points, catering to a wide range of customers, from those seeking affordable beauty solutions to those looking for more premium products. This tiered approach allows them to tap into different segments of the market.
5. Sales Representative Incentives: Given their direct-selling model, Avon’s pricing strategy also incorporates incentives for sales representatives. This aspect motivates their representatives and influences how products are priced and promoted to end consumers.

Avon Place Strategy

Avon is an international company that started its office in Manhattan and currently has its headquarters in London in the United Kingdom. It has a full product line and distribution channel presence in nearly one hundred countries, with Brazil being its largest market. In 1990, Avon products were introduced in the Chinese markets via beauty boutiques, and they have been directly selling to that target market since 2006.

Avon’s place strategy is characterized by its unique marketing mix, distribution channels, and a market share and presence approach to financial markets, focusing on accessibility and customer engagement. Here are key points of their strategy:

1. Direct Selling Model: Avon primarily relies on a direct selling model, where independent representatives market and sell products directly to consumers. This approach allows for personalized customer service and creates opportunities for entrepreneurs worldwide.
2. Online Presence: Avon has a robust online platform that enables customers to purchase products directly from their website. This digital approach complements their traditional direct-selling model, catering to the growing demand for online shopping.
3. Global Footprint: Avon operates in numerous countries, offering a global reach while catering to local market preferences and needs. This international presence helps them maintain a diverse and widespread customer base.
4. Representative Support: Avon provides comprehensive support to its representatives, including training and marketing materials. This support is crucial for effectively empowering their representatives to reach and serve customers in various locations.
5. Catalog and Brochure Distribution: Avon utilizes catalogs and brochures, both in physical and digital formats, to showcase their product offerings. These materials are key to their marketing and sales strategy, helping customers and representatives stay informed about the latest products and deals.

Avon Promotion Strategy

Avon follows a competitive advertising policy to attract customers and strengthen its brand loyalty and position in the consumer market. It has roped several famous personalities to create positive brand equity and awareness. Its notable ambassadors are Lucy Hale, Ashley Greene, and Lauren Conrad. Recently, the company appointed Indian actress Aditi Rao Hydari as its newest brand ambassador in India. Avon recruits sales representatives to sell directly to consumers. Sales representatives use them for door-to-door selling and marketing.

Avon relies heavily on advertisements via its catalogs. These are launched as special releases at special events with several famous personalities on their cover page. The company has published a brochure that can be downloaded from its official website to inform its customers about brand equity, various marketing strategies, a mix of Avon’s latest offerings, and other related information. It offers lucrative discounts and unique offers at periodic intervals and has appointed style specialists who provide essential tips to keep its customers happy. The brand also does online advertising and promotes its products on social media platforms like Instagram, Twitter, YouTube, and its Facebook page.

Avon has been involved in philanthropic causes and has established The Avon Foundation. It awards scholarships to its representatives and their family members. As part of its promotional activities, it took part in a worthy initiative related to Breast cancer awareness in 2002. The ribbon was attached to every catalog, and funds raised via this advertising campaign were donated to purchase medical equipment.

Some Recent Video ads and Print ads for Avon are:

Avon People Strategy

When discussing the “People” aspect of Avon’s service and marketing mix for all Avon products, it’s essential to consider the internal and external human elements contributing to the company’s success. Avon, a pioneer in direct selling, relies heavily on its network of representatives, employees, and customer relationships. Here are several key points regarding the “People” component of Avon’s service marketing mix:

1. Direct Sales Representatives: Avon’s business model involves direct selling through independent representatives. These individuals are the face of Avon to the customer, providing personalized service and product recommendations and building long-term relationships. Their expertise, customer service skills, and personal interactions are crucial for customer satisfaction and retention.
2. Training and Support: Avon invests in comprehensive training programs for its representatives, equipping them with the knowledge and skills to sell products and manage their businesses effectively. This includes product knowledge, sales techniques, and digital tools for online marketing.
3. Customer Service Teams: Beyond the direct sales force, Avon has dedicated customer service teams that handle inquiries, complaints, and support needs. Their responsiveness and ability to resolve issues efficiently contribute significantly to the overall customer experience.
4. Inclusive and Diverse Culture: Avon promotes an inclusive and diverse work environment, recognizing the value of diverse perspectives and experiences in driving innovation and understanding customer needs across different markets.
5. Employee Engagement and Satisfaction: The company focuses on employee engagement and satisfaction as key factors in its success. Avon ensures a motivated and committed workforce by fostering a positive work environment, encouraging professional development, and recognizing achievements.
6. Community and Relationship Building: Avon’s representatives are not just salespeople but community builders. They host events, participate in social causes, and create social media content, strengthening community ties and building loyal customer bases.
7. Innovation through People: Feedback from customers and representatives plays a critical role in Avon’s product development and innovation strategies. This direct line of communication allows Avon to adapt quickly to changing consumer needs and preferences.
8. Global Network with Local Touch: While Avon operates globally, its strength lies in its ability to maintain a local touch through its vast network of representatives who understand their local communities’ unique needs and preferences.
9. Leadership and Vision: Avon’s leadership team sets the vision and strategy for the company, focusing on ethical business practices, sustainability, and empowering women. The leadership’s commitment to these values is integral to Avon’s brand identity and appeal.
10. Corporate Social Responsibility (CSR) and Ethical Practices: Avon’s people-centric approach extends to its CSR initiatives, such as the Avon Foundation for Women, which focuses on issues like breast cancer awareness and domestic violence. These initiatives contribute to societal well-being and build a strong, positive brand image that resonates with employees, representatives, and customers.

Avon Process Strategy

The “Process” element in Avon’s service marketing mix and personal selling mix refers to the methods and procedures the company employs to deliver its products and services to customers, emphasizing efficiency, customer satisfaction, and the overall buying experience for target customers. Here are key points regarding Avon’s processes:

1. Direct Selling Model: Avon’s core process is its direct selling model, which bypasses traditional retail channels to sell products directly to consumers through independent sales representatives. This approach allows for personalized service and product demonstrations, creating a unique customer experience.
2. Order Placement and Fulfillment: Customers can order through Avon representatives in person or online via the representative’s Avon website. The process is designed to be seamless, with representatives often providing personal delivery to the customer’s doorstep, enhancing the personal touch Avon is known for.
3. Digital Sales Platforms: Avon has integrated digital technology into its sales process, allowing representatives to manage their businesses online, place orders electronically, and leverage social media for marketing. This digital transformation enables a more efficient and accessible sales process for representatives and customers.
4. Training and Development: Avon provides comprehensive training for its representatives, covering product knowledge, sales techniques, and digital tools. This process ensures that representatives can serve customers effectively and grow their businesses.
5. Customer Service and Support: Avon has established robust customer service and support processes to handle inquiries, complaints, and after-sales support. These services are accessible through multiple channels, including phone, email, and social media, ensuring customer issues are resolved promptly and satisfactorily.
6. Inventory and Supply Chain Management: Avon’s process includes efficient inventory management and a global supply chain to ensure products are available and delivered to representatives and customers on time. This involves sophisticated logistics and distribution systems to efficiently manage stock levels and fulfill orders.
7. Feedback and Continuous Improvement: Avon has mechanisms in place to gather feedback from customers and representatives, which is used to improve products, services, and processes continually. This feedback loop is crucial for adapting to market changes and enhancing the customer experience.
8. Recruitment and Onboarding of Representatives: Recruiting and onboarding new sales representatives is streamlined to ensure a smooth entry into the business. This includes informational sessions, starter kits, and access to online resources and communities.
9. Compliance and Ethical Standards: Avon’s processes ensure compliance with local laws and regulations and adherence to ethical standards and practices. This includes training representatives on ethical sales techniques and ensuring product safety and quality.
10. E-commerce and Mobile Apps: Recognizing the shift towards online shopping, Avon has developed e-commerce platforms and mobile apps for customers to browse products, place orders, and track deliveries. This digital process aligns with contemporary shopping preferences and enhances accessibility.

Avon Physical Evidence Strategy

The “Physical Evidence” component of the service marketing mix refers to the tangible elements that customers interact with, directly or indirectly, which influence their perceptions of the product line service quality and brand. For Avon, a company primarily known for directly selling beauty and personal care products online, physical evidence is crucial in shaping customer experience and brand image. Here are key points highlighting Avon’s physical evidence marketing strategy:

1. Product Packaging: Avon’s product packaging is a critical element of physical evidence. The design, quality, and branding of the packaging not only protect the product but also communicate the brand’s values and appeal to the aesthetic preferences of customers.
2. Catalogs and Brochures: Avon is well-known for its catalogs and brochures, which provide detailed product information, including images, descriptions, and prices. These materials are tangible representations of the brand and a primary tool for representatives to engage with customers.
3. Representatives Appearance and Branding: The appearance and professionalism of Avon representatives serve as physical evidence of the brand’s quality and reliability. Representatives often wear Avon-branded apparel or accessories during customer interactions, reinforcing the brand identity.
4. Avon Websites and Online Presence: The design, functionality, and user experience of Avon’s websites and online sales platforms are crucial forms of physical evidence in the digital realm. They reflect the brand’s commitment to accessibility, convenience, and modernity.
5. Social Media and Digital Content: Visual content shared on social media platforms, including product demonstrations, tutorials, and customer testimonials, is physical evidence of the brand’s engagement and responsiveness to customer needs and preferences.
6. Sales and Delivery Vehicles: Avon uses branded vehicles for product delivery in some markets. These vehicles are practical for logistics and serve as moving advertisements, enhancing brand visibility and recognition.
7. Customer Service and Support Centers: For customers interacting with customer service, the physical environment of support centers, as well as the quality of the materials used in communication (e.g., emails, letters, support tickets), reflect the brand’s professionalism and commitment to service.
8. Events and Experiences: Avon hosts events, such as product launches, beauty workshops, and representative conventions, which provide physical spaces for customers and representatives to experience the brand culture and community firsthand.
9. Merchandising and Display Units: For Avon products sold in retail or pop-up locations, the merchandising units and display stands are carefully designed to attract attention, facilitate product interaction, and convey brand messages.
10. Gifts and Samples: Physical samples and gifts provided to customers, either through representatives or with orders, serve as tangible evidence of Avon’s value proposition and its commitment to quality and customer satisfaction.
11. Corporate Social Responsibility (CSR) Initiatives: Physical evidence of Avon’s CSR initiatives, such as branded fundraising products or event materials, reinforces the company’s ethical stance and commitment to social causes, enhancing brand image and customer loyalty.

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