Logistics of Avon and Chanel
Introduction
As an essential component of marketing, logistics is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from the point of origin to point of consumption for the purpose of conforming to customer requirements. Logistics’ making extensive use of human and material resources can have influence on national economy. A research conducted by Michigan State University indicated that logistics could represent between 10 to 15 per cent of the gross domestic product of most major North American, European and Asia/Pacific economies (Rushton, Oxley and Croucher, 2000). Therefore, many brands take account into logistics management and design. Avon and Chanel are two main brands in Australian cosmetic market. These two companies all have very long history and large numbers of loyal customers. They both have their own particular channels of distribution, which will be researched in this study.
Avon and Chanel’s channels of distribution
Avon is the largest direct seller of cosmetic products in the world, whoes independent sales representatives, usually known as Avon Ladies build up Avon’s marketing network covering more than 150 countries (Avon Australia offitial website). The channel of distribution of Avon could be described as “manufacturer directly to customers”. In this channel of distribution, consumers purchase and get the products directly from the manufactory, which means no intermediaries—wholesalers, retailers, or warehouse are needed. The products of Avon are in storage in the warehouse in distribution centres and be sold to the customers via alone representatives, who get the produchs from distribution centre. Avon’s representatives provide the customers with everything about the beauty— knowledge of health and cosmetic, the latest information of products. They make beauty plan for each costomer and recommend the cosmetic
As an essential component of marketing, logistics is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from the point of origin to point of consumption for the purpose of conforming to customer requirements. Logistics’ making extensive use of human and material resources can have influence on national economy. A research conducted by Michigan State University indicated that logistics could represent between 10 to 15 per cent of the gross domestic product of most major North American, European and Asia/Pacific economies (Rushton, Oxley and Croucher, 2000). Therefore, many brands take account into logistics management and design. Avon and Chanel are two main brands in Australian cosmetic market. These two companies all have very long history and large numbers of loyal customers. They both have their own particular channels of distribution, which will be researched in this study.
Avon and Chanel’s channels of distribution
Avon is the largest direct seller of cosmetic products in the world, whoes independent sales representatives, usually known as Avon Ladies build up Avon’s marketing network covering more than 150 countries (Avon Australia offitial website). The channel of distribution of Avon could be described as “manufacturer directly to customers”. In this channel of distribution, consumers purchase and get the products directly from the manufactory, which means no intermediaries—wholesalers, retailers, or warehouse are needed. The products of Avon are in storage in the warehouse in distribution centres and be sold to the customers via alone representatives, who get the produchs from distribution centre. Avon’s representatives provide the customers with everything about the beauty— knowledge of health and cosmetic, the latest information of products. They make beauty plan for each costomer and recommend the cosmetic