Ding-Dong, Avon Calling…
Avon: Reshaping the Tradition of Brand
Community
BA590
Samuel Lippmann
Marianne Gardner
Cynthia Chavez
Melody Sanford
“Ding Dong Avon calling” is one of the best-known branding catch phrases for
the 1950s, but the Avon Ladies have moved on from the iconic-smiling American
homemaker to the working mother on-the-go of today. In response, Avon has had to
rethink, reevaluate and redefine its customers, products and business strategies to reclaim
the market power and presence it once had.
Historically, the first Avon Lady was actually a man, young salesman named
David McConnell. He launched Avon Calling in 1886, offering women cosmetics in the
comfort and privacy of their own homes, but ironically, perfumes and hand-cream were
not McConnell‟s initial merchandise. At the age of sixteen, McConnell sold books door-
to-door and when they were not well received, he resorted to the advertising gimmick of
offering a free gift in exchange for being allowed to make a sales pitch. McConnell
realized that women liked his perfume more than his books. So, he abandoned books and
organized the New York-based California Perfume Company and the door-to-door
approach seemed a perfect fit for cosmetics, particularly in rural areas, where
homemakers, in horse-and-buggy days, had poor access to better stores.
In 1939, California Perfume Company name changed to Avon Products, Inc. The
company was renamed Avon for the simple reason that the New York State town in
which David McConnell lived, Suffern on the Ramapo, reminded him of Shakespeare‟s
Stratford-on-Avon (ideafinder).
Avon suffered a decline in its fortunes in the 1970s and 1980s owing to changing
lifestyles. Many women began working outside the home, the arena where most of its
demonstrations and sales had traditionally taken place. Also during this period, many
salespeople left Avon to pursue more lucrative career opportunities. In the 1990s, the
company redesigned its focus and advertising, upgraded its product line, and trained its
sales force to make presentations in workplace settings, where 50 percent of sales now
take place. Avon also considerably expanded its presence outside of the United States,
especially in Brazil and other South American countries, China, and Eastern Europe.
Today, despite the scores of expensive American and foreign brand-name
cosmetics, Avon ranks first in sales nationwide, with Avon Ladies ringing doorbells from
coast to coast. With more than 2.6 million representatives worldwide, Avon‟s annual
sales top $7.7 billion (Avon).
Management
Andrea Jung joined the company in 1994, ascending through senior positions until she
was appointed CEO in 1999 and elected Chairman of the Board in 2001. Jung is the first
woman CEO in Avon‟s 119-year history and as CEO, Jung has revamped Avon‟s image.
When Jung took charge, Avon was faced with waning sales and a lackluster public
image. In Jung‟s own words, “the company was out of step with the needs of
contemporary women. We knew we needed a fresh strategic approach. We needed to
crystallize our vision.” That new vision crystallized in the new tag line “Avon, The
Company for Women” (AU press release).
With this new vision, the brand was made more hip and relevant including new
products for teens, men, older women and women of color. Ad campaigns featuring
African American and Hispanics celebrities expanded the target market. Jung intensified
Avon‟s focus on global expansion. Networks were put into place internally and
externally encouraging diversity and philanthropy (BSRResourses). Since Jung has
implemented her vision, sales have increased 45% to $7.7 billion in 2004 and stock prices
have risen 86% to $27.63 in November 2005. Under Jung‟s leadership, Avon has
received numerous awards worldwide in recognition for its brands, customer satisfaction
and philanthropy. Jung herself has received accolades for her success. In 2005, she was
ranked #5 on Fortune magazine‟s “50 Most Powerful Women in Business” list. This is a
fitting recognition for the woman who seeks empowerment for all women.
Brand Strategy
Avon‟s brand strategy is to empower women through the creation of opportunities.
Opportunities to meet new people, achieve economic independence, support social causes
all while fulfilling their individual
Brand- Product
Avon quest for beauty. Avon builds
Focal Customer - brand value through innovative
Customers and
Sales products and processes, the
Representatives
Customer
– End Marketer unmatched power of its
User - Avon
distribution channel and the
earnings opportunity it provides women. In addition, the power of their global operating
model, philanthropy, and their people contribute to brand equity. This has positioned
Avon as the top direct seller of cosmetics in the world.
Key Resources
Integral to Avon‟s brand community are its key resources. Key resources include
conventions, consumer events, enterprise awards, cause marketing, scholarships,
websites, publications and parties/open houses.
In 1998, Avon held its first annual National Avon Representative Convention. At
the conventions, all of the prime elements of brand community emerge; consciousness of
kind, shared rituals and traditions, and a sense of moral responsibility with the resulting
effect of increased brand loyalty. Thousands of excited, enthusiastic sale representatives
attend along with key executives, top sellers and employees with an atmosphere of
business and fun. On the business side, there are motivational speakers, product and
training seminars, product displays, along with the latest news on all of the upcoming
changes in products, leadership programs and e-commerce. On the fun side, there are
celebrities, stage shows, raffles and free products. On the serious side, news regarding
the cause marketing efforts is relayed but the vibe remains positive and energizing.
Reflecting on the experience a sale representative mused, “As much as we enjoyed the
good times and appreciated the new knowledge, we were really most happy just to be
together – thousands of people who know Avon, love Avon, are Avon – to feel the pride
and share the dreams” (Beauty Dish). These conventions are effective in instilling a
sense of pride and loyalty within its sales representatives as well as serving as recognition
for a job well done. Vickie Stiner, one of Avon‟s top sellers, won an expense-paid trip to
the national convention in 1999. "I've been in it for a while and I like that they give good
recognition to their top sellers. It's important to me. They also give us great training. If
you have a question the company helps answer it. Avon has treated me very well"
(kobeyswap).
The pride and wish to share the dreams does not stop at the conventions. The
Avon Foundation champions causes that affect women worldwide. Through its Breast
Cancer Crusade, Avon has raised funds for research, clinical care, and education
programs targeted primarily at medically underserved women. Avon also sponsors a
domestic violence program which focuses on domestic violence education, awareness
and prevention and support for victims. At the grassroots level, sales representatives and
their local communities raise funds. At the company level, Avon has formed alliances
with the business community, government and social agencies and partnered with
celebrities, such as Salma Hayek and Serena Williams, to promote the causes. It is
important for Avon to not only provide women opportunities in business but to also build
a corporate image that demonstrates their overall commitment to women. A number of
recent studies have documented that consumers carefully consider a company's reputation
when making purchasing decisions (The Foundation Center). Avon‟s cause marketing
and fund-raising efforts for issues that effect women positively builds their reputation
which in turn, promotes customer loyalty.
Avon is also building customer connections with its consumer events. One of the
events is its fourth annual “Let‟s Talk Beauty Tour”. Avon is traveling across America in
a mobile beauty salon inviting women to learn more about Avon while they get a
makeover and vie for a chance to win a trip to the Bahamas. Additionally, Avon is trying
to build new customer connections via the World Wide Web. They offer on-line
customers and representatives access to beauty and selling tips, in addition to enabling
online sales. Avon has structured their online platform for both ease of use for the
consumer and the retention of business for representatives. Consumers pay the same
price for goods online as they would pay to their Avon lady reducing the threat of
consumers circumventing their reps to obtain a better price. Also, consumers can credit
their sales rep during the online transaction so that both the consumer and the Avon
representative feel good about the offering. This online arrangement is effective in
expanding Avon‟s resources and capitalizing on an increasingly important marketing tool
while still maintaining the essence of Avon, its sales force. As expressed by a couple of
Avon representatives interviewed, they had mixed feelings about the online ordering
system but understand it is part of doing business in a technological world and Avon is
just reacting to the needs of the consumer. In response to the online ordering system,
some representatives have built their own websites advertising to customers and
mentoring their “downline”/recruits. The websites‟ main purpose is to meet consumer
demand for online information while still maintaining ties to the representative.
Representatives connect with each other through local district meetings and award
ceremonies and connect with customers through open houses and parties. The most
intimate connection, and perhaps most meaningful, is accomplished with face-to-face
direct selling by sales representatives who are spreading the word, samples and brochures
about Avon while making friends in the process. The interpersonal relationships formed
with the makeup parties and face-to-face selling is the cornerstone of the traditional Avon
business model. It has been very successful for Avon to hand out samples of the newest
product and to distribute catalogs showcasing the latest trends to potential and existent
customers. Samples offer a way for consumers to try before they buy; a definite upside
to traditional retail outlets which can be buy before you try. Also, the catalog is an
effective marketing tool that allows customers to peruse the latest products at their own
convenience in their own home. Avon realizes the importance of the samples, catalogs
and direct selling to their success and utilizes a lot of their resources in the creation of the
right mix that will entice customers to buy more products.
Avon currently employs a number of marketing strategies in which to build
community within their different product lines. Avon has a couple of distinct lines with
different target markets that comprise the bulk of their products. The traditional Avon
fare is makeup and perfume for middle-aged women of various demographic
backgrounds that enjoy a sense of community through the relationships with their Avon
neighbors, fellow church members and friends. Over the years, this traditional segment
has waned somewhat with the success of competing brands utilizing the direct sales
method, in addition to women taking on more duties outside the home, and consequently,
the free-time Avon capitalized on to build relationships is now spent maintaining a home.
Avon has employed a number of techniques to counteract the loss of the
traditional segment; a few include sales representatives catering their sales pitches for the
workplace and allowing customers to order online at their convenience instead of calling
their representative. According to Jung, "We have a great core direct-selling business,
but now we have a brand that can expand into new channels: new customer segments like
teens, and new brand extensions like wellness" (pbs). Avon has broadened the scope of
their market from the traditional segment to include a couple of emergent markets; the
youth segment with its brand mark, the metrosexual market with their Men‟s Catalogs,
the older generation with their wellness and cosmeceutical products and the international
market with the expansion of Avon selling in various countries around the world.
Youth Market
Within the past few years, Avon has recently realized a new target market that has
recognized a community that is very powerful in terms of sharing meaningful
consumptions – a new generation of youth. Teenage girls and
increasingly teenage boys engage in primping and grooming and
are spending more money each year in this industry. Business intelligence and market
research firm Global Information Inc. reports that with an industry already boasting $6.9
billion in annual sales, youth hair-care, cosmetics, skin-care, and ethnic health and beauty
items are projected to rise up to $8 billion in sales by 2008 (Pennington). According to
Avon research, there are more than 300 million young women in the 16-24 age group in
Avon‟s top 30 markets who spend over $200 billion annually on consumer goods. Avon
has recognized this potential global market and as a result, has released mark., a brand
that “celebrates remarkable young women who are making their mark in the world”
(Cosmetic Packaging).
“Young people are increasingly united around the world.” They listen to the same
music, watch the same television shows, wear the same clothing, and communicate
through the internet. “They think of themselves as part of a new mega-culture that is hip
and dynamic and as a result are increasingly generational, rather than cultural or
geographical (Prestige Brands). Such a market is powerful in the sense of influencing
tastes and preferences. Avon‟s release of mark is directed towards young women and
due to its unique direct selling nature, personal networks are formed. Avon will realize
the benefits of customer relationships and brand community.
Not only does Avon offer the product line that is available in the mark. catalog or
magalog as Avon calls it, but it provides young women “a direct-selling opportunity, and
a unique brand experience that engages them in a world of community, participation, and
empowerment” (Avon mark). This is an opportunity for young women to make their
marks on their financial future in earning up to 40% of sales (Mark).
Young women are also given the opportunity to communicate and converse with
each other as they gather for mark. parties, which serve as a key resource for Avon and
the young women to share their opinions on the products, trade beauty secrets, and
consult each other‟s opinions on colors. Like brandfests, mark parties enable a gathering
of a brand community the opportunity for high-context interaction. During the term of a
traditional mark party, young women manifest themselves in consciousness of kind and
shared rituals and traditions. Selling through personal networks is important especially in
“traditional” societies, as will be covered in more depth in the Emerging Markets and
Globalization section below. When the segment of the youth society is examined, it is
noted that young people have a lot of extra time on their hands. This creates a need for
them to congregate and socialize and socializing is a key factor of the “tradition” of
teenagers, which makes mark parties an extremely valuable tool in delivering the
experience.
The use of Avon‟s choice to target the generation segment has helped to better
develop relationships with their customers. Because the young representatives who
decide to take advantage of the role of an actual Avon representative, the Avon brand
becomes a central part of the overall generational community as the representatives
introduce new, fun, and trendy products to their own peers and community in which they
live. Because it is their friends that the youth representatives market to, the value of trust
is introduced, which is a key factor of loyalty.
Such a global market of the new generation is powerful in the sense of influencing
tastes and preferences. As such, different factors influencing the adoption process may
affect one‟s likelihood of adoption. A person‟s level of innovation is “the degree to
which an individual is relatively earlier in adopting new ideas than the other members of
his social system” (Kotler 356). It is important for Avon to identify “early adopters”
because it is they who are the trend setting opinion leaders that others look up to and
admire. Avon‟s marketers need to research this particular group‟s demographic,
psychographic, and media characteristics in order to communicate and directly target this
audience in terms of both selling opportunities of becoming Avon representatives as well
as becoming Avon customers.
Company officials said that so far, the reception to mark has been strong, but the
challenge is whether the strategy will be compelling enough to woo young women away
from other brands in a very competitive business (Avon Trailblazers). mark. provides a
unique earnings opportunity by tapping directly into young women's existing and daily
beauty rituals. The line of cosmetics and related products offers fun, fresh, modern
packaging; affordable pricing; and unique products offered in their own separate
"magalog," featuring editorial material pertinent to young women (Avon Mark).
Avon has created its mark. product to look appealing to young girls in packaging
it in contemporary styles. The modern packaging is
one way Avon has attempted to entice young women
away from their traditional brands. Yet another factor
that contributes to the attempt of substitution is the
affordability of the products. Young girls tend to have
less disposable income so the low prices are very attractive when it comes to switching
brands. Avon‟s competitive advantage to other businesses is it direct selling approach,
which allows for interaction, relationship developments, and experiences that the
customer will remember. The direct selling approach enables Avon representatives to
hand out samples, interact with the customer and get to know each customer‟s tastes and
preferences. The direct selling approach further creates not only a loyalty factor to the
company, but to the representative. Purchasers may be reluctant to purchase anything but
Avon out of loyalty to their representative may he or she be a family member, close
friend, neighbor, or co-worker.
Avon has advertised in Vogue, Cosmopolitan, InStyle and Glamour. They have
advertised on TV commercials, and just recently partnered with Allure, a beauty
magazine popular among teenage girls, to advertise its products (Mark). The magazine is
the beauty expert that recommends mark. products and gives beauty tips and secrets from
pros and celebrities. Magalog 9 is currently running a promotion that gives a full year
subscription of Allure magazine with a purchase of $20.00. Such partnerships introduce
mark. as a brand of selection and marks it as a hip and cool brand to have. This is vital to
getting the brand name out there so that young people become familiar with mark‟s
products and brand.
Metrosexual Market
Avon has always sought to increase sales by expanding its
network and consumer base. Recently, many studies have
revealed that men‟s products are a growing industry due to
the “metrosexual” trend. A more general study emphasized
that the male personal product/cosmetic world market was
about $3.5 billion (Eurostaf.fr). In response, Avon has launched its first cosmetics and
personal care lines exclusively for men. The launch of these products is an innovative
way for Avon to not only expand its customer base, but to also employ a new strategy for
marketing and sales. In the past, women have usually purchased the men‟s products for
their husbands, making them the actual target market. The new metrosexual line will
target men directly and increase the male customer base.
The male beauty industry is confronting a few issues: First, the industry must
prove to the public that men‟s skin is different than women‟s skin (Rhythm of aging,
thickness, sebum secretion). Therefore, an investment in the R and D to give credit to the
product is essential in order to confirm a product‟s fast action and results.
The next issue involves distribution of the product. Marketing must specifically
target males and take into account that male beauty is still somewhat taboo. Discreet
packaging may be necessary, except for perfume and toiletries, to ensure the men‟s peace
of mind that other men do not know they are using product.
In this market we have three types of agents: leading beauty companies such as
L‟Oreal and Clarins, who are using the rollover strategy and care companies such as
Decléor, Phytomer and smaller individual firms (Eurostaf.fr).
European companies have been seeking customers in this new market for several
years with Europeans appearing to be more willing to try new
things. Studies have revealed that most every man has tried on
at least one of these products, either because of a woman‟s
advice or on their own (Eurostaf.fr). But what are the main
issues in this market? How can Avon create a brand
community for these men? We hardly see men gathering on
Sundays to talk about their skin or their hair: they would soon be considered homosexual
or odd. Avon and other companies have to face this prejudice when looking at their
products. According to marketers, there was a major shift in cultural attitudes that made
these products more acceptable for males (Agovino). For example shows like “Queer
Eye for the Straight Guy” and “Extreme Makeover” have reinforced the idea that paying
attention to grooming isn‟t just a feminine trait and some are saying that there is more
cultural pressure on men to look good. Sports tie-ins also seem to help in promoting
products; in fact, one Avon catalogue featured NASCAR driver Kasey Kahne, while New
York Jets quarterback Chad Pennington graced the cover of another. Mass promotion
can also encourage the shift towards accepting male grooming and beauty. Many have
said that “as soon as they started using one product regularly it was very difficult to stop
using it, even if they had tried many different one before finding the appropriate one”
(eurostaf.fr). As the presence of women increases in men's social and working lives, men
have changed the way they act. This is a part of that shift.
Birdie Jaworsky is an Avon lady that in the article Balls to the Wall, described her
search for ways to sell more products from the men‟s catalogue. Birdie knew that in
order to build brand community and connect with the men, she needed to attend a men‟s
event that would allow her to hobnob while presenting her products. Donning a very
short skirt and her highest pair of Avon heels, Birdie delved into the world of bowling
and attempted to ingratiate herself with the men. This type of selling was very new to her
but she was successful when a couple of men tried her products. Little by little, she
gained the confidence of one of the men, who a couple of days later called her to
purchase a cream he had tried. This was not a typical door-to-door sale for Birdie so
instead, she chose a location where she could capitalize on the servicescape. She
attended an event where men were having fun and where they felt comfortable with each
other - bowling. Also, she was a part of the environment: dressing in a way that the men
wouldn‟t have let her go unnoticed. She used the environment and the new metrosexual
trend to expand her salary, and it worked.
What future can we forecast for the metrosexual market segment? The trend
continues to grow: currently encompassing 25% of the US market. Albeit this trend is
quite recent, marketers have very high hopes about its evolution. The strategies
employed to develop this segment are diverse, but building brand community can be
instrumental in its expansion. However, the main purpose cannot be forgotten: customer
satisfaction. Avon has bet a lot on this trend and will be launching two products lines
that appeal to the family man, career man and the athletes. It‟s crucial that Avon reach its
objectives in order to increase market shares.
Aging Women‟s Health
With American women showing a renewed interest in the overall health of their mind and
body, it is no surprise that a number of new products are being developed to satisfy this
demand. Avon is one of the leaders in the growing cosmeceutical industry and currently
offers an array of daily vitamins catered specifically for women‟s needs; everything from
mineral rich anti-aging skin crèmes to dietary supplements for menopausal women.
The majority of the women fueling the increase in demand are part of an ever
growing segment of the population. Within the past decade, the number of United States
women age 40 and above grew from 40.4% to 44.6% in 2000 (U.S. Census).
Additionally, these women are avid for non-invasive alternatives to Botox and cosmetic
surgery, driving a "cosmeceuticals" market (Cosmeceutical Market Opportunities).
Cosmeceuticals, a combination of cosmetic and pharmaceutical, are products that include
ingredients designed not only to enhance the appearance but also to have a positive
physiological effect at the cellular level. According to the Freedonia Group, a leading
international business research company, this industry is destined to grow 8.5% to $5.1
billion by 2007 and is a real opportunity for Avon. Avon plans to gain market share and
build customer relationships in this industry by building communities at the product,
brand and company levels.
Avon‟s customer-product community is strengthened from a number of sources,
but most noticeably from their tradition for quality and value. Avon was voted “Most
Trusted Brand” on three continents and has stated as one of its missions to be “world-
renowned for leadership in Beauty, with well-loved brands, products of the highest
quality, and an unmatched reputation for innovation and value”. Consumers have
responded to Avon‟s commitment to quality and innovation with product loyalty.
Product loyalty is the cornerstone of an effective customer-product community and Avon
customers have demonstrated their loyalty to Avon with increased annual net sales.
Other communities that Avon is building are the customer-brand and customer-
company communities, which strengthen the Avon brand name in the eye of the
consumer. One of the avenues in which Avon has chosen to strengthen these
communities is cause marketing. Cause-related marketing (CRM) is defined as the
public association of a for-profit company with a nonprofit organization, intended to
promote the company's product or service and to raise money for the nonprofit.
Corporations have been drawn to CRM due to the competition of the expanding global
marketplace and the need to develop brand loyalty (The Foundation Center). Avon has
chosen breast cancer as the inspiration for their cause marketing campaign and to date has
raised over $400 million.
Breast cancer is the second leading cause of cancer deaths in women today (after
lung cancer) and is the most common cancer among women. In 2002, 192,000 new cases
of breast cancer were diagnosed in the United States and 40,000 existing cancer patients
succumbed to the disease. The number of annual breast cancer diagnoses is expected to
continually increase to estimates that in 2005, approximately 270,000 women in the
United States will be affected. This CRM for Avon is not only of societal importance for
women but also for the brand-building efforts of Avon. "The message in the United
States and across all of the countries (where Avon does business) is the same: We're
looking to position Avon as the company for women, whether that's the place to buy a
product, to start your own business, where your health needs are addressed (or) to
function as an advocate on behalf of women's health," says Joanne Mazurki, Avon's
director of global cause-related marketing (Fellman 4).
The target market for Avon‟s cosmeceutical and wellness line of products is age
40+, coinciding with societal pressures for women to better maintain and manage their
health - with one of the recommendations being annual mammograms. Avon, due to its
commitment to raising awareness and finding a cure for breast cancer, is connecting with
their target market with the widespread distribution of Breast
Health Resource Guide and at events such as Avon Walk for
Breast Cancer. This commitment demonstrates Avon‟s genuine
concern for not only the female customers of Avon but also for
the betterment of every woman‟s health. Additionally, Avon enforces this allegiance not
only through marketing rhetoric but also with generous contributions and fund-raising
efforts by the Avon Foundation. The Avon Foundation president Kathleen Walas
exemplified the impact CRM had when she said, “In 2005 the Avon Foundation reached
half a century committed to improving the lives of women. From an initial scholarship of
$400 in 1955, in 50 years we have exceeded $450 million raised and awarded for
women‟s empowerment and health, and we continue to work towards our goal to be the
largest foundation for women. The Avon Foundation has developed a special connection
with women and their communities” (Avon).
Another way that Avon is building brand community is not only with prospective
and current customers but also within its sales people. “Avon ladies” are the heart and
soul of the corporation that not only solicit and build Avon‟s customer base but also
nurture and retain those relationships. Avon promotes itself as “the company for women”
and further enhanced this reputation with the introduction of the "Women of Enterprise
Awards" program. This program recognizes the independent spirit of women who have
succeeded in spite of personal or professional challenges, while risking so much of
themselves in their quest to successfully run their own businesses (Missiontrust). Each
year, the coveted award is given to six women entrepreneurs for their extraordinary
business achievements. This award program inspires both Avon ladies and women of
other businesses to be all they can be and believe in themselves. This belief perpetuates
itself into the everyday lives of women and contributes to the loyal patronage and selling
of the Avon brand. Additionally, Avon leads the female empowerment revolution with a
female CEO, Andrea Jung, who believes, “Women like myself, CEOs, can pave the way
for more women to get to the top” (Brainyquotes).
Emerging Markets and Globalization
Historically, Avon‟s profits have depended on economies where women stayed home.
The U.S. cultural ideologies that existed from Avon‟s inception 120 years ago and
throughout the fifties and sixties fit well with Avon‟s product line and direct selling
channel. Avon provided American women a way to be in the workplace without
compromising family values and met a need for women that allowed them to network and
socialize with other women while earning money at the same time. By selling to
neighbors and friends, they could supplement their families‟ income. In addition, it
allowed women without formal education and limited financial resources to own a
business. As American women traded in their roles as housewives and entered the formal
business workplace in the seventies, Avon lost customers as well as staffers. U.S. growth
declined and Avon looked internally to emerging ethnic markets as well as outward to
global markets for growth.
America has been described as a great melting pot of cultures, which is evident in
all aspects of society, including Avon. Today‟s Avon representatives might be Russian,
Chinese or Brazilian. In 2004, this “army of direct sellers was responsible for $7.66
billion in global sales revenues” (Doonar 20). As the leading direct seller of cosmetics,
Avon‟s success in global and emerging economies has been attributed to the financial and
social opportunities that it provides women, the company‟s flexibility, adaptability and
the personal relationship it creates with its customers. “Avon is promoting its image as
„The Company for Women‟ by providing business opportunities for women in countries
where women have fewer choices” (Avon Products Inc).
Critical to Avon‟s success in emerging markets is adapting to the cultural
ideology of that country or society. “Research shows that people tend to define their
social context locally rather than globally; they look to local sources of support for social
rewards, feedback, and identity. Family, friends, and coworkers supply influential
feedback on personal consumption and provide a key basis for social comparison
(Coulter).
Direct selling by sales representatives to family, friends, and co-workers is an
important strategy permitting Avon personal access to customers through people who are
familiar and identify with the same life themes and goals. This strategy enables Avon to
build customer-centric brand community in global and ethnic markets and in turn develop
customer loyalty and satisfaction. Research has identified five important elements in the
customer satisfaction process, (1) the product satisfaction process is active and dynamic;
(2) the satisfaction process often has a strong social dimension; (3) meaning and emotion
are integral; (4) the satisfaction process is context-dependent and contingent; (5) product
satisfaction is intertwined with life satisfaction and quality of life (Fournier). Direct
selling has enabled Avon to quickly move into ethnic and foreign markets, establish
important customer-company relationships and build relevant brand communities that
have created product satisfaction and life satisfaction for Avon‟s customers and profits
for Avon.
Selling through personal networks is important especially in “traditional”
societies like the Hispanic and Latino cultures. “Interpersonal networks constitute
important mechanisms in these societies that strongly influence decision making
processes” (Korzenny). Most purchases are made on the recommendations of
trustworthy persons usually “a family member, neighbor, someone perceived to be
expert” (Korzenny). In a culture where “Hispanic women, who often function as head of
their households, make many purchasing decisions for their families” (Miller), Avon is
able to penetrate these markets through sales representatives who are trusted members in
the community. Customer trust in the individual representative is then extended to the
product and the company, strengthening customer-company identification and in turn
creating satisfaction and brand loyalty. Evidence of this trust is reflected in the awards
Avon has won worldwide as the most trusted brand.
With the U.S. Hispanic population growing by an estimated 1.7 million annually
and a current purchasing power estimated at more than $700 billion, this is a market
Avon is actively courting. In 2002, Avon, upon recommendations of key sales
representatives, introduced a new color line catering to U.S. Hispanics. “Centered on
core cultural values, like family, tradition and religion, Eres Tu will also offer such
accessories as jewelry for first holy communions and quinceaeras, sweet 16-like
celebrations” (Davila). Because “we seek to express ourselves through possessions and
use material possessions to seek happiness, remind ourselves of experiences,
accomplishments and other people in our lives” (Belk 157), Avon‟s recognition of
pivotal, context rich moments creates satisfaction within the community and strengthens
the bonds between sales representative, customer and the company (McAlexander, et al).
According to sales representative, Maria Diaz, “Avon is celebrating a culture, not by our
differences, but by our contributions. The Eres Tu brochure is an excellent recruiting tool
for me…it binds us together as a culture” (Davila).
Coordinated with the Eres Tu launch, Avon entered a strategic co-marketing
partnership with Latina Magazine. Avon features Latina Magazine in its brochure and in
turn, Latina Magazine binds the Eres Tu brochure in the magazine quarterly for the
duration of the multi-year deal (Staff). Avon has also partnered with its sales
representatives, agencies, business communities and engaged Latin movie actress, Salma
Hayek to promote awareness of domestic violence among Latinos, the global Avon
community and the public at large. Through these actions, Avon cultivates C-C
identification by creating a customer-company identity that is culturally relevant and
trustworthy. They foster identity attractiveness through their spokesperson and embed
their sales representatives by including their suggestions in the strategic decision making
process and increase identity salience with Avon‟s involvement in cause marketing.
Consequently, the result is loyalty, recruitment and company promotion. Also, Avon
creates customer-centric brand community by developing synergies where “sharing
meaningful consumption experiences strengthens interpersonal ties and enhances mutual
appreciation for the product, the brand, and the facilitating marketers” cementing
relationships as well as brand loyalty (McAlexander, et al). Avon is also extending this
same attitude and strategy to its foreign markets.
“In Brazil, beauty has always been more than skin deep - its big business.
Brazilians spend $3 billion annually on cosmetics, and Avon has long been the industry
leader” (Maxwell). In her article “Keeping Up Appearances”, Sarah Maxwell covers
Tracey Olsen‟s award winning student research project on Avon‟s impact on Brazil‟s
culture. According to Olsen, in a country where doctors and dentists are scarce, Avon
representatives are ubiquitous and represent all walks of life. Except for the U.S., Brazil
has more sales representatives than any other country in which Avon operates. While
part of Avon‟s success is linked to cultural expectations - beauty is valued and taught
from a very young age. What sets Avon apart from other cosmetic companies is its
flexibility and ability to adapt to the needs of the community. Brazilian women, due to
family considerations and workplace discrimination, are limited in job prospects. Avon
provides them an opportunity to sell to family, neighbors and acquaintances. According
to Olsen, “In very rural areas, women are allowed to barter for Avon goods. The
representatives accept eggs, gold and food in return for Avon products and sell those
products to pay their distributors” (Maxwell). Besides being welcomed for the product
they sell, Avon ladies are an important source of social information to women in rural
areas. Avon representatives show up regularly with their wares and brochures extending
brand community even to remote areas of the Amazon.
Avon has thrived in the Eastern and Central European countries, including
Hungary, Romania and Poland. According to Jung, "One of our fastest-growing regions
of the world has been the entire Eastern European region. We've grown at 43 percent in
dollars compounded over the last several years, with 45 percent more reps every year. We
call it Avon heaven” (pbs).
Direct selling was an advantage to Avon who entered this market in the nineties
when Central Europe was transforming from socialism to consumerism. A study of
women and cosmetics conducted in Hungary and Romania from 1989 to 2001 revealed
three findings (1) that ideological positions were key in whether informants used
cosmetics; (2) the product involvement was affected by the extent cosmetic use was
linked to key life themes and life projects; (3) cultural intermediaries were important in
the dissemination of Western beauty ideals, cosmetic brands and product, and beauty
instruction (Price). Avon quickly entered this market in 1991 with mass advertising,
enlisted hundreds of local women as sales representatives who lined up eager for the
economic opportunity, trained them to be beauty consultants and run their own
businesses. Local sales representatives were able to target younger women who
embraced western influences and connected appearance and attractiveness to life themes
and goals such as being a good wife, being cosmopolitan and job advancement. At the
same time the representatives introduced Avon products to women who were more
reluctant to experiment with cosmetics and were uncertain how cosmetics were linked to
their personal lives. Because sales representatives are often friends, neighbors, co-
workers, they meet people in their homes, create a fun, non-threatening atmosphere
where they can share beauty tips and sample the product. By establishing a one on one
relationship representatives were able to act as “cultural intermediaries”, facilitating
connections between Avon products, Avon Company and customers. In addition,
consumer events were staged in major cities inviting women to preview product, receive
trial samples, learn about related beauty care and meet Avon sales representative and
sales managers. These connections are important in creating C-C identification,
establishing brand community and brand loyalty; and perhaps, easing cultural change.
Avon has also met success in Asian countries. Avon personal selling approach
has been a perfect fit in Asian countries where extended family kinship patterns and go-
betweens for contacts are important in social as well as business transactions. For
instance in Japan, one‟s junmyaku (network of human contacts) is everything. Avon has
done very well in Thailand where there is an inherent cultural bias of “obligation to one‟s
friend and the great difficulty of saying no when approached directly.” Once again, Avon
has adapted slightly for these markets including skin lightening products and altering
their distribution channel. When Avon discovered that it was not customary in some
Asian cultures for women to invite strangers into their homes, Avon opened beauty
centers operated by independent consultants and permitted sales by sales representatives
in retail settings. In addition, Avon modified its selling channel for China who banned
door-to door selling in 1998. Avon now has 5,700 beauty boutiques in China operated by
local independent people, in addition to 1,600 counters located in department stores or
with other retailers. China represents a tremendous growth opportunity in the cosmetics
industry having 20% of the world population. Avon‟s Chinese sales were $157 million in
2003, grew to $220 million in 2004 are forecasted at $600 million in 2007 (Avon). Avon
will resume direct selling in China with the Chinese Government‟s September 2005
announcement of two sets of direct selling regulations. In preparation, Avon has
implemented a massive training effort readying supervisors who will recruit Chinese
representatives when their license is granted (Chandra).
Avon‟s mission “To be the company that best understands and satisfies the
product, service and self-fulfillment needs of women – globally” is evidenced through
their customer-company interactions, brand community building, focus on satisfaction,
commitment to provide learning and financial opportunities to women, and their
willingness to adapt to meet these needs worldwide. Their direct selling strategy is still a
competitive advantage in emerging global and ethnic cultures where it provides an
economic opportunity for women. However as these markets become developed, Avon
will face similar challenges as it has in the U.S. retaining and recruiting the sales
representatives who are Avon‟s most important personal link to the customer.
Avon‟s Future
Avon has come a long way from the traditional Avon lady with her pink pill box
hat and matching pink outfit from head to toe. Avon has emerged as the company for
women and has done so in a manner which empowers women in a number of ways.
Avon‟s projections indicate a major restructuring of the company that includes
downsizing to restore growth. Avon just recently experienced an 8.16% decrease in
share price due to a weak year where heightened competition, increased rivalry, and a
fragile economy somehow seeped through Avon‟s doors. Andrea Jung has also
recognized a lapse between senior management and consumers and plans to “de-layer”
the company as to unify ties between key decision makers and the customer
(D‟Innocenzio).
Yet another foreseeable item that Avon sees in the future is the role women have
in executive positions. Jung hopes to be an example to all and has set a standard of
empowerment for women everywhere. Not only has Avon empowered women through
its overall mission and values, but by example. “In the next 10 years, Jung said she
believes there will be a comparable exponential change in the number of women in top
positions across all of corporate America (Women in Business).
Business looks optimistic for Avon‟s future and Andrea Jung and Susan Cropf are
equally confident in the future of Avon. “As we look forward to celebrating Avon‟s
120th anniversary in 2006, Avon‟s star is shining more brightly than ever. Our journey of
transformation continues. We have bold, exciting dreams for the future and we are on a
mission to improve women‟s lives. For Avon, truly the best is yet to come.” -Andrea
Jung and Susan Cropf
Bibliography
Agovino, Theresa. WAUSAU Daily Harold. Men's Skin Product Sales Jump. 08/08/05.
http://www.wausaudailyherald.com/wdhlifestyle/289369757001259.shtml
10/26/05.
Agovino, Theresa. Shunning the Metrosexual Tag, Men Are Grooming to Get
Promotions, Business and Dates. 2005.
http://abcnews.go.com/Business/Careers/story?id=953224&page=1 11/26/05.
Anderson, Elizabeth. Avon is Vendor‟s Ticket to the Top
http://www.kobeyswap.com/articles/vendors/avon.htm
Avon. www.avoncompany.com 2005. 10/12/05.
Avon mark. http://www.avoncompany.com/brands/mark.html 2005. 11/20/05.
Avon Products Inc., Hoovers (2005)
Avon Trailblazers. http://www.avontrailblazers.com/avon_reborn.htm 11/22/05.
AU Press Release. Avon chairman, CEO to deliver Cutco Lecture at Alfred
University. 3/25/04
www.alfred.edu/pressreleases/viewrelease.cfm?ID=207 11/16/05.
Belk, Russell W. Possessions and the Extended Self. Journal of Consumer Research Vol.
15. Sept. 1988. Pg 139-167.
Bhattacharya, C.B. Sankar Sen. Company Identification: A Framework for
Understanding Consumers Relationships with Companies. Journal of Marketing.
Vol.67. April 2003. Pg 76-78.
BrainyQuote, Andrea Jung Quotes.
http://www.brainyquote.com/quotes/authors/a/andrea_jung.html 2005. 11/15/05
BSRResourses. BSR Business of Social Responsibility.
www.bsr.org/BSRResources/IssueBriefDetail.cfm?DocumentID=443 April 2005.
10/25/05
Chandra, Shobhana. Avon‟s Andrea Jung Pins Hopes on China as Sales in U.S. Fade.
www.Bloomberg.com Dec. 27, 2004. 11/25/05
Cosmeceutical Market Opportunities Today and Tomorrow. http://www.in-
cosmetics.com/files/incos05_Phytopharm.pdf April 14, 2005. 11/02/05.
Cosmetic Packaging and Design.
http://www.cosmeticpackaginganddesign.com/features/featureMarchApril032.ht
m 11/18/05.
Coulter, Robin A., Linda L. Price, Lawrence Feick, David Glen Mick, Ruth Ann Smith.
Rethinking the Origins of Involvement and Brand Commitment: Insights from
Postsocialist Central Europe. Journal of Consumer Research. Sep2003. Vol 30
Issue 2. Pg 151-169.
D‟Innocenzio, Anne. Avon Products Unveils Major Restructuring. Contra Costa Times.
11/15/05.
http://www.contracostatimes.com/mld/cctimes/news/breaking_news/13172290.ht
m?temp ... 11/28/05.
Davila, Shiara. New Avon Cosmetic Line Caters to Latinas. U.dailynews.com, Sept 15,
2002. 10/27/05.
Doonar, Joanna, “Opportunity Knocks.” Brand Strategy; (April 2005) 20-23
Eurostaf.fr. (http://www.eurostaf.fr/fr/01etudes/luxe/cosmetiques_homme/ 11/01/05.
The Foundation Center. http://fdncenter.org/learn/faqs/html/cause_marketing.html
http://www.missiontrust.com/avon.htm 2005. 10/28/05.
Fournier, Susan. David Glen Mick. Rediscovering Satisfaction. Journal of Marketing
Oct. 99. Vol. 63 Issue 4. Pg 5-23.
Herbig, Paul Ph.D. International Direct Marketing. International Marketing Lecture
Series.
Ideafinder. http://www.ideafinder.com/history/inventions/story090.htm 11/09/05.
Women in Business: Report from the Trenches. Knowledge @ Wharton – the University
of Pennsylvania.
http://knowledge.wharton.upenn.edu/index.cfm?fa=viewArticle&id=1095&specia
lId=26 11/17/05
Korzenny, Felipe Ph.D. Key to reaching Hispanics: Word of mouth, Door-to door, and
Network Marketing.
Minorities in Business. January/February 2003.
Kotler, Philip. Developing New Market Offerings. Chapter 11.
LaChance, Danny. Carleton Student Examines the Role of Avon Corporation in Brazil.
Carleton College News. Apr. 11, 2001.
Mark. http://pr.meetmark.com/PRSuite/sell/benefits.jsp 11/27/05.
Fellman, Michelle Wirth. Marketing News. Vol. 33 Issue 9. 04/26/99. Pg 4.
Maxwell, Sarah. Keeping Up Appearances. Carleton College Voice. Winter 2004.
McAlexander, James H., John W. Schouten, Harold F. Koenig. Building Brand
Community. Journal of Marketing. January 2002.
Miller, Alex. Market Focus: Hispanic Women. Media Daily News. Mar. 28, 2005.
Missiontrust. http://www.missiontrust.com/avon.htm 10/27/05.
Pennington, April Y. The Hottest Teen Business for 2005.
http://www.entrepreneur.com/article/0,4621,318067,00.html 11/27/05.
Prestige Brands: How to Thrive Worldwide. IESE Business School – University of
Navarra. http://www.iese.edu/aplicaciones/news/view.asp?id=96&cs=1
11/15/05.
Staff. Avon Inks Distribution Deal with Latina Magazine. Advertica.com Inc. August 8,
2002. 10/12/05.
That Money Show. Avon – The Company For Women
http://www.pbs.org/wnet/moneyshow/cover/090701.html
U.S Census Bureau. www.census.gov 10/30/05.
Your Avon. 2003 Convention Wrapup.
www.youravon.com/articles/info_library/conventionwrap 11/28/05.