Subject: Principles Of Marketing
Assignment: Case Study
C A S E S T U D Y
Question Number 1:
Avon was selling its products for 112 years by using the motto “Ding Dong, Avon Calling” successfully. Demand of Avon’s beauty products was very high and selling was done successfully. This company earned $4 Billion worldwide as a result. This company was incorporated as California Perfume Products in 1916 and was founded in 1886, deploying an army of 40 million. It constituted of women, selling products door to door. This army sold products to its neighbours, friends, relatives etc, and took commissions on the products sold. A time came when out of these 40 million ladies, 500000 were willing to earn more money, but did not want a full-time job outside the home, as they were homemakers. Recruiting sales persons was easy who could encourage the customers to make repeated purchases. But during the late 1970s and 1980s, environment trend changed a lot. Firstly, more women found that they needed to work outside the home. As a result, when these ladies rang the door bells, either they were not answered or were not given a positive response. Secondly, many Avon ladies decided that they needed more than part time jobs, and Avon’s annual turnover force rised up to more than 200%. Thirdly, because of high sales force turnover, many Avon customers, wishing to see a sales person could not find one. Fourthly, many competitors like Amway, Mary Kay Cosmetics, and Tupperware, were competing for the pool of people, interested in full time and part time direct selling jobs. Lastly, in edition to all these factors, increasing mobility of the U.S. population meant that both customers and salespeople were moving. This made it difficult for salespeople...