The Greatness of Avon

Only available on StudyMode
  • Topic: Multi-level marketing, Marketing, Avon Products
  • Pages : 3 (799 words )
  • Download(s) : 59
  • Published : December 16, 2012
Open Document
Text Preview
The Greatness of Avon
How is Avon still shining on their 126th year? A start-up company is usually given a lifespan of about 3 to 5 years. Once a company has hit that mark, it either goes on or shut down. On the company’s 5th year, consumers commonly grow tired of the brand or simply forget about it. Well, it is human to always look for something new. Long before women in the U.S. were allowed to vote, Avon was already in the direct selling business. In 1886, David H. McConnell started the business in a small office at 126 Chambers Street, in lower New York City. Today, Avon is a huge company making over 11 billion dollars a year and selling products in over 140 countries. Avon is so successful because of their corporate strategy, they “make it stick”, and they take care of their employees. Because of Avon’s corporate strategy, it is one of the largest skin care companies in the world. A corporate strategy is the direction a corporation plans to go and the way in which its business operations work together to achieve particular goals. There are three different types of corporate strategies, the growth strategy, the competitive strategy, and the stability strategy. The executive chairman Andrea Jong devised a growth strategy. She wanted to increase the number of sales representatives in the company. Avon great advertising has allowed it to stay a profitable company for so long. Advertising is just one way of promoting a product. The goal of advertising is pretty easy create awareness for a product and it’s company. This is exactly what Avon is doing. Because of this, Avon’s representatives can easily sell their products. Most companies spend approximately 15% of their annually earnings on advertisements (How Much Should,Hopkins). Whether it is on the TV, internet, or radio advertising greatly affects how much money a company makes. Avon is one of the companies that knows this. During 2004, Avon made its TV comeback in UK. Its commercials were mainly targeted...
tracking img