1. Integrated Marketing Communications MKT 642 Amy Thomas La Donna White September 24, 2003

2. Summary of the Case Thoughtful transformation of Avon –Enhancing Avon’s image around the world –Expanding the Avon brand into new markets –Creating new products and new distribution channels –Increasing growth in Avon’s core product line –Enhancing the experience of the Avon representative

3. Summary of the Case Avon.com Created in 1997 Caters direct-to-consumer sales Solution for stranded customers Reasons for success –representatives were addressed –earned extra money through advertisement

4. Summary of the Case New Distribution Channels International market –retail selling –Quelle shops in Germany (7000 stores) –Avon-run beauty counters American market –mall “kiosks” (50 in operation) –franchised to representatives –90% of customers are 1st time buyers

5. Who is Avon’s Target Market? Women –ages 30 - 40 –shops at the mall for beauty products –willing to spend additional money for higher quality and prestige –first time buyer –average to high income Representatives –full time employees of AVON –purchase mall kiosk –12,000 leadership representatives –trained through the Beauty Advisor program

6. Who is Avon’s Target Market? American Market WomenRepresentatives 5 million- stranded100,000 full-time reps 2.4 million- new customers12,000 lead reps 3.6 million total - 11 million customers112,000 kiosk owners German Market WomenRepresentatives 4 millionBeauty Advisors

7. What is the potential for conflict? Representatives Competition Conflict with new customers Benefits lead and fulltime representatives Loss of customers Delivery system becomes unattractive

8. What is the potential for conflict? Current Customers Do not purchase beauty products in the mall May not frequent high end stores Loss of personal/familiar connection Higher price

9. What is the potential for conflict? Potential Customers AVON brand name conflicts with the image of high-end retail stores Current market is very competitive Will not see other products offered by AVON, which makes up 40% of sales May work in international market

10. How is managing conflict in case (B) different from case (A)? WebsiteRetail Stores same target market1st time buyers same brand imagenew brand image same distribution methodloss of direct selling less threatening for repsdirect competition

11. Are there other strategies that would take advantage of the Web without creating conflict? Create a new brand name –NOVA (AVON spelled backwards) –use as the website name –high-end products, higher prices –luxury car of beauty products Introduce NOVA to retail –advertising campaign –target market is women who would not purchase AVON

12. Progress of Avon 39 million representatives 1 billion transactions per year Website Kiosks AVON spa in New York Mall locations New brand for younger women (Mark)

13. Questions