Bianes, Janinne A.

BSBA-MKG
MKG-302/3BA-N
07/19/19

AVON COMPANY

Avon is the world’s no.1 direct seller of beauty products, they offers
cosmetic products, jewelry, home decoration items, accessories and wellness
products. It started in New York named California Perfume Company(CPC), and
October 1939 the company was changed it’s name to Avon Products Inc., In 1886,
David H. McConnell, 28-year-old, is the founder of Avon Company, he is a travelling
book salesperson and offering beauty products for his customers especially women,
where in he realized that more women are interested with his products so he decided
to help them becoming sales representative despite of being only at home and
hoping for the salary of their husbands. And this is the beginning of Avon history by
empowering women all over the world.
In the Philippines there are 172 branches of Avon, this is one of the
company’s continues growth, the head office is located in Makati City, and the
biggest branch is Avon Edsa in Quezon City. Avon products are available in 100
countries and there are 5000 products including cosmetic, skincare, fragrance,
fashion, home products with well recognized brand names Avon color,ANew and
Skin So Soft. To increase the sales volume of the company, first they recruit sales
people or dealers to be a part of Avon, they called it multilevel marketing includes
pyramid selling, network marketing and referral marketing. One of the most effective
marketing strategy of this company is direct selling because once you are a member
or Avon dealer you can purchase the product through one month credit policy and
can earn 25% income profit. For profitability of Avon Company they set pricing
strategy for the products where in penetration pricing are commonly used, once the
product is new it is possible it may cost lower price to gain more orders and when the
promotion period is over it will return to its regular price. For now the latest asset of
Avon is Julia Barretto, Marian Rivera and Angel Locsin for cosmetics, Daniel
Matsunaga and Jennylyn Mercado for intimate apparel. New Face New Line, the
more ambassadors they have the greater profit they earn and top 5 most profitable
direct sales companies in the world. And because it is a leading global beauty
company it cost $11 billion annual revenue and with 6.4 million representatives. And
to give back the companies success they always help the community by giving funds
for cancer research and to get rid of abusing the ability of women worldwide.