Integrated Marketing Communications

1

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

2
Summary of the Case

• Thoughtful transformation of Avon
• Enhancing Avons image around the world
• Expanding the Avon brand into new markets
• Creating new products and new distribution
  channels
• Increasing growth in Avons 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 Avons 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 Avons Target Market?

• American Market
• Women Representatives
• 5 million- stranded 100,000 full-time reps
• 2.4 million- new customers 12,000 lead reps
• 3.6 million
• total - 11 million customers 112,000 kiosk
  owners
• German Market
• Women Representatives
• 4 million Beauty 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)?

• Website Retail Stores
• same target market 1st time buyers
• same brand image new brand image
• same distribution method loss of direct selling
• less threatening for reps direct 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