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COLLEGE OF BUSINESS ADMISTRATION
Marketing Principles (BUSI 3313)
Organization Project
Avon
Prepared By:
Huda Al-Rashidi 200600654
Rawan Al-Atrash 200900174
Nuwaire Al-Marzogy 200700048
Haya Al-Kabra 201100081
Arwa Dawoud 201001633
Sahar Al-Mohammadi
For:
Ms. Kumarashvari Subramaniam
Due Date:
14/12/2012
Table of contents
Executive summary ..................................................................................................................... 3
Chapter1: Introduction ................................................................................................................ 4
1.1 Marketing Communication...............................................................................................4
1.2 Steps in Developing Effective Communication...............................................................5
1.3 types of communication channels ................................................................................... 5
1.4 About Avon ...................................................................................................................... 6
Chapter2: Literature review ....................................................................................................... 8
Chapter 3: research methodology.....................................................................................................9
Chapter 4: Data analysis ............................................................................................................ 10
4.1 Business Analysis .....................……………………………...................................….10
4.2 Avon`s channels........……………………………........................................................10
4.3 Field findings…………………………………………………….......…….................11
Chapter 5: Conclusion& recommendation ……………………....……………………........…14
References ……………………………………............……………………………..........…...15
Appendix1…………………………………............……………………………..........…......16
Appendix2…………………………………............……………………………..........….......16
Appendix3.........…………………………………………………………..............................17
Appendix4…………………………………............……………………………..........….......17
Appendix5…………………………………............……………………………..........….......18
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List of figures
Fig. 1 Elements of communication process …………………………………………..6
Fig. 2: zone of survey.....................................................................................................16
Fig.3: ages of respondents...............................................................................................16
Fig.4 promotion types................................................................................................17
Fig.5 Customer`s preference. ..........................................................................................17
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EXECUTIVE SUMMARY
There is a wide difference between customers each other so the communications programs
must be varied to reach all these customers. Companies must ask about how can they reach
their customers and also about how can they find ways to let their customers reach them? For
effective communication, marketers need to know how communication works.
Avon is a leader in the beauty industry and one of the biggest direct sellers in the world. In
this case study on the company, by using multiple online tools, journals, articles and books,
we have known all information to decide as to how Avon can continue its leadership in the
world. In this case study we will understand the effective communication with Avon and we
will know more about their Representatives and Customers in a survey we will discuss it
below.
3
Chapter 1 : Introduction
In many countries, there are a lot of companies begin their business from small place and
with very low capital. They begin growing to the local place and assure some expansions in
markets which attract them. These companies decide special ways to enter into the other
markets according to the environment and the appropriateness of the coming market. They
face various challenges like culture, nature, and their adaptation plans with the culture and
nature. If they get successful, it's mean they have the true marketing plan and they made right
combination of its suitable factors to be chosen and considered. An example for these
companies which ensured its long term success and have the experience around the world is
Avon. One of the persuasive ways to understand the environment and customer of the
companies is Marketing communication. The communication messages of the companies are
made by the combination of different elements. We will discuss below the communication
process, and the channels of communications. Also we will discuss how it effects on the
target of the company.
1.1 Marketing Communications
There are many discussions on marketing communication. Writers have different opinions
about what is meant by the marketing communication.
Marketing Communications are means used to persuade people into product purchasing
using different channels of communications Emphasis on rational, product-based
information. There are main five steps in the marketing communication process: SenderEncoding-Message- Decoding - Receiver.

The sender should realize the audience before the layout of the message.

The audience can be diversified priorities or identical which should carefully be
studied.

The appropriateness of all of the elements is important.

The strength of the noise can be increased if the message will not be appropriate
which can lead to the failure of communication.
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(Kotler, 2006, p. 539) Fig. 1 Elements of communication process
1.2 Steps in Developing Effective Communication







Identify the Target Audience
Determine the Communication Objectives
Designing a Message
Message Content
Message Structure
Message Format
Choosing channels of communication
1.3 types of communication channels
Personal Communication Channels The message regenerates from a particular person,
between two or more persons, face to face or by a person to the audience, over the telephone,
or via post or couriers or via emails or via mobile messages.
Nonpersonal Communication Channels:
 Media channels: that includes printable media such as newspaper, magazines, calamities
of conferences), broadcast media (radio, television), presentation media (billboards, signs,
posters) and electronic media (audiotape, videotape, videodisk, CD-ROM).
 Atmosphere is what institutions create in their office environment. The office interiors
and exteriors have a meaning to the prospective shoppers.
Setting the Overall Promotion tools : Promotion tools have unique characteristics and
costs. Marketers must realize these characteristics in selecting their tools.
Advertising is a general mode of communication. Because it is communicated simultaneously
to great number of persons and people know that the communication itself is going to many
people, they feel their motivations for shopping are understood by the advertiser.
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Sales promotion tools
Such as coupons, tournaments, bonuses, and the like act as a
communication medium and also promote sales.
Public relations and publicity News stories and characteristic articles are more authentic and
reliable than advertisements to readers.
Personal selling as a communicative channel includes a live, immediate, and interactive
relationship between people.
Direct Marketing selling of products and services to a target audience by reaching them via
direct methods for examples, phone calls and mail. The goal of Direct Marketing is to sell
products by getting many buyers as possible to respond to a campaign.
1.4 About Avon
Avon, the company for women, is a leading global beauty marketer they began operations in
1886, when door to door s David McConnell took the decision to sell perfumes were inserted
in the State of New York on January 27, 1916. Their product lines are Beauty, Fashion and
Home.
Beauty conducted in color cosmetics, fragrances, skin care and personal care. The names of
the brands are: Avon Color, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals, and
Mark. The products are not only for women but also expanding to men, displaying Avon’s
ability to notice the changing trends of recent times. Fashion brands are: fashion jewelry,
watches, apparel, footwear, accessories and children’s products. The home consists of gift
and decorative product, housewares entertainment and comfort products and nutritional
product.
Since its origin, different women from all walks of life have looked to Avon to provide
them with the opportunity to improve their lives and the lives of their families. Avon's
steadfast commitment to serving women's needs also is evident in a long list of "firsts" in the
beauty industry. Avon was the first beauty company to: announce a permanent end to animal
testing; offer a consumer beauty product utilizing alpha hydroxy acid technology (appendix
1); Anew products stabilize the purest form of vitamin A, retinol, for use in an anti-aging
treatment. Avon also pioneered aromatherapy as a way to help women relieve everybody
stresses of their busy lives. Avon has developed many products under their main categories,
one of the most successful 2011Avon`s campaigns is shine attract The campaign was
launched on Facebook group target as an effective new communication channel.
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Their business is conducted worldwide primarily in one channel, direct marketing.
Their main reportable segments are based geographically in five regions: Latin America;
North America; Central & Eastern Europe; Western Europe, Middle East & Africa; and Asia
Pacific.
The Largest Women's Foundation
Avon will be an obliged global supporter for the health and well-being of women through
charitable efforts that eject breast cancer from the face of the earth, and that delegate women
to achieve economic independence.
The Most Admired Company
Avon will deliver maximum returns to their shareholders by tirelessly pursuing new growth
chances while continually improving their profitability, a socially responsible, ethical
company that is watched and imitated as a model of success.
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Chapter 2 :Literature Review
Avon’s biggest strategic asset is its direct selling strategy. Avon will continue their presence
in direct marketing and lead the renew of the channel, offering an entrepreneurial opportunity
that delivers maximum earnings, recognition, service and support, making it easy and
remunerative to be affiliated with Avon and elevating the image of their industry.
As web presence is becoming a standard in business, Avon has based its presence on websites
such as Twitter (Appendix 2) and Facebook (Appendix3), which are on the whole used by
their target market .These accounts have let Avon to create a more interactive experience and
engage in copartner ships with other products and websites. Web sites like these offer
particular information, application and color-coordinating factual experiences, which has
been very receptive between younger make-up users.
Avon has started an Amazon-powered application on the social network (Appendix4), which
lets people review Avon products, and purchase them. This is an effective way to reach out
for a new target group and perform direct-to-consumer sales.
Due to this international strategy, Avon had the ability to take advantage of its vast
geographical coverage. Avon is present in more than 100 countries expanding across all over
the world.
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Chapter 3 : Research methodology
The present study focuses on understanding the communication channels for Avon. To
understand how much these channels are effective for Avon`s target we applied an interview
with the CFO of Avon in Saudi Arabia and one survey questionnaire by asking some
questions to a random sample of people .
To analyze the situation of Avon's business we asked the CFO of Avon in Saudi Arabia about
Avon`s objectives by defining what is the company aim to achieve and identify The factors
(strengths and weaknesses) internal to the company and external factors presented by the
external environment to the company (opportunities and threats) that are important to
achieving their aim.
These questions aim to analyze the situation of the company (SWOT analysis) to understand
the business environment, make decisions and creating a recommendation during a study.
Then we asked about the new communication channels lunched to the company to reach their
objectives and achieve their aim.
To decide if these new communication channels are effective for the company or not we
conducted one survey to a random sample of persons consist of10 respondents (Appendix 5 )
in the Eastern Region in Saudi Arabia focusing on the position of Avon in the Market ,
prices, quality of products and promotion.
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Chapter 4: Data Analysis
In this chapter, we will discuss and analyze the data as in the following sequence
4.1 Business analysis
SWOT analysis is a total evaluation of a firm’s strengths, weaknesses, opportunities and
threats. Strengths and weaknesses are a company’s internal factors, over which a company
can have some control or influence. Opportunities and threats are external factors
Strength
 High quality wide range of products.
 Innovation of products.
 Qualitative & successful management.
 Market leader in direct sales field.
 Not testing products on animals.
 Developed selling network companied to competition.
 Motivating discounts for customers.
 Motivating extra earnings based on increased volume of sales.
Weaknesses
 Avon's product has a finite focus on teenagers.
 The products it's just expensive for the lower-income women.
 Most women see Avon's products as an old fashioned brand image that's appropriate
for the older one.
Opportunities
 Continuing of spreading production marketing program.
 Under penetrated in the market at mid-tier price segments.
 Cooperation with competitive companies in humanitarian actions.
 Spreading of selling network.
 Development of education for employees.
 Perfecting new keys of selling.
 Improvement of products for women of other races according to their skin types.
Threats

The reducing in the number of intermediate -class homemakers who willing to work
on the part-time sales job basis and began to work full-time.

The threats of competitors such as: L'Oreal, Procter & Gamble.
4.2 Avon`s channels
Avon basically depends on direct marketing, the benefits of direct selling are:

The availability of products in each and every part of the world where e-commerce is not
available.
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
Reduction of the cost of opening retail stores.

With independent direct sales representatives, Avon reaches to a maximum number of
customers. It's best to go to the customer, in state waiting for the customer to come to
you.
One of the important channels that Avon lunched Facebook fan page (Appendix 2) Facebook
presents a vast marketing opportunity by creation of Facebook Avon Page. People explore
social networking sites they use to learn more about products .So they can get to know their
Customers interaction and reaching your target of selling products.
4.3Field Findings
One survey questionnaire is conducted to a random sample of persons consist of10
respondents in the Eastern Region in Saudi Arabia focusing on the position of Avon in the
Market ,prices, quality of products and promotion.
Fig. 2: zone of survey.
Fig.3: ages of respondents.
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1-position of Avon
By asking about the position of Avon among its competitors (using the same
communication channels) we find that Avon maintains a certain position in the
market. Currently, Avon positions itself in the market, targeting women in their
mid-twenties to end-thirties. Avon`s products are slightly more expensive than many of
its direct competitors like for eve but it is less expensive than most of oriflamme products.
2-promotion types of Avon strategies:
By asking about how they heard about Avon 60% of the total response given for
the catalogs. Avon follows basically a direct selling strategy .This clearly shows the
strength of the Avon sales catalogs and the strength of the personal relationships.
How have you heard about Avon ?
60%
40%
0
others
internet
catalogs
Fig.4 promotion types
3-prices and quality of Avon product (Customer's preferences):In the cosmetic
production, traditionally the profit margins are upwards of 50%. In KSA, Avon's
products are priced between (15 SR-299SR).
Price is not the only major concern for the buyers as they don’t want to expose with their
skin, and looks. Avon wants to characterize the values of quality and affordability of its
customers. So, the Avon products are always in request due to their high quality and
competitive price.
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what is most important factors in your choice ?
40%
40%
30%
0
others
Internet services
Quality of products
Prices
Fig.4 Customer`s preference.
The figure illustrates the response ratio of the customer`s preference. Prices and quality of
products are the most important factors.
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Chapter5: Conclusion and recommendations
Avon is one of the biggest and leading cosmetic companies. It has maintained high levels of
quality since 1886, and with their direct marketing strategy, they are able to increase their
revenues. The biggest reason of the ever growing popularity of Avon products is their
availability, their improvement in strategies and their communication channels. Noted from
the survey, customers think that Avon is affordable. Thus Avon has been successful
communicating customer value for their product to the product price.
Avon sales increased in 2011when they began online shopping &Facebook pages. Avon has
continued to enhance their e-commerce options. Avon communication channels play an
effective role in changing customer preferences in reaching their target. According to Avon’s
annual report, they increase IT budget, as more and more customers are preferring ecommerce.
RECOMMENDATIONS
In my opinion Avon should improve their innovations and increase the production is in sync
with the current market request. Moreover, Avon must expand their Network of centers&
their ordering systems. Also, they should expand into using more social media.
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References
th
1- Kotler, P & Keller KL 2006, Marketing Management, 12 Edition, Pearson Education,
Inc., New Jersey, USA.
2- http://www.avoncompany.com/aboutavon/history/index.html
3- Russell, H. Colley, Defining Advertising Goals for Measured Advertising Results,
National Association of Advertisers, New York, 1961.
4- http://www.markedbyteachers.com/ marked by teachers Andrea Jung's Make-Over of
Avon. Products.
5- Philip Kotler Principles of Marketing.pdf E-book.
6- Roland T. Rust, Advertising Media Models: A Practical Guide, Lexington Books,
Lexington, MA, 1986.
7- http://gmx.xmu.edu.cn/ews/business/pmarketing/chapter14.htm#marketing Marketing
Communications Strategy.
8- A Super Contest," Nation's Business, October 1997, p. 13; Alison Ashton, "Office
Services to Go," Home Office Computing, May 1998, p. 24; Alice Cuneo,
9- Promotion Prize: Super Bowl Ad," Advertising Age, September 1, 1997, p. 29; Emily
Fromm, "Super Sunday," Adweek, January 25, 1999, pp. 30–31; Bob Garfield, "Bud
Lizards Electrify Super Bowl Ads," Advertising Age, January 26, 1998, pp. 1, 53;
Ryan Peal, "Mail Boxes, Etc.
10- Make Big Bets on Lone Commercials during Super Bowl," Marketing News, January
5, 1998, p. 25.
11- http://www.avon.com.sa/PRSuite/xmas_collection.page Avon Saudi Arabia.
12- http://www.facebook.com/AvonProductsInc Avon Products Facebook.
13- https://twitter.com/Avon_UK Avon twitter.
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Appendix1
Appendix2: twitter profile page
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Appendix 3: Facebook group target
Appendix 4; Avon application on amazon
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Appendix5: summary of survey
Q1: what is company do you prefer?
1.
2.
3.
4.
Response
ratio
20%
60%
10%
10%
oriflamme
Avon
for eve
other
10%
other -‫ــــــــ‬
10%
for eve
avon
60%
20%
Q2: how have you heard about Avon?
Response ratio
1-catalogs
60%
2-internet
40%
3-others
0
orifilam
0 others
internet
40%
catalogs
60%
Q3; what is most important factor in your choice?
1-Prices
2-Quality of products
3-Internet services
4-others
Response ratio
40%
40%
30%
0
18
0 others
Internet services
30%
40%
Quality of products
40%
Prices
Q4:what do you will say about Avon compared with the other companies
1-The best
2-Better
3-About the same
4-The Worst
Respons
e ratio
10%
80%
10%
0%
0%
10%
80%
10%
Q5: How many times have you used Avon product(s)?
Response
ratio
60%
1-Five times in the last year
2-Couple of times last year
20%
3-Every month
4-never used
20%
0
0 never used
20%
Every month
20%
60%
Couple of times last year
Five times in the last year
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Q6: What motivates you to buy Avon product(s)?
Respons
e ratio
40%
30%
30%
10%
1-Need\ requirement
2Attractiveness of the product
3-Value of money
4-A personal deep desire
A personal deep desire
10%
30%
Value of money
30%
Attractiveness of the product
Need\ requirement
40%
Q7: If you have been purchasing Avon`s products, how satisfied are you
with the same?
Response
ratio
1-Very satisfied
2-somewhat
3-slightly satisfied
4-Very dissatisfied
40%
50%
10%
0
0
10%
50%
40%
Q8: what is a sort of product do you use?
response ratio
1-mascara
40%
2-lip gloss
20%
3-eyeliner
10%
4-skin care
10%
5-plush
20%
20
plush
20%
10%
skin care
10%
eyelinear
lipgloss
20%
masscara
40%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
21