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Submitted by ewic on February 21, 2008
Category: Miscellaneous
Words: 1675 | Pages: 7
Views: 171
Popularity Rank: 71,509
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The Avon brand is one of the leading cosmetics brands in the world. When it started in the late nineteenth century and throughout the middle of the twentieth, their target market was mostly housewives. Since it started as door-to-door selling, it is only logical that their consumers are the ones left at home. However, after much development in society and economy, with the progression of women, their target market also extended to working women.
Today, Avon's products are designed to appeal to the mass market of women aged 25-50 with average to below-average household incomes. Through their representatives, they are able to reach millions of women, roughly 25 million in the United States alone. Direct Selling also allows them to keep the prices down, to be able to cater to average earning women and even below average ones.
Avon's Direct Selling model is a good strategy for it not only differentiates them from their competitors; rather, it is one of the main reasons for their success. Their brand is the fifth largest beauty company overall with annual sales of over $5 billion dollars. When asked if Avon should sell directly to the consumers, the answer is yes, because it works for them.
Since other beauty companies rely on malls and stores for their sales, Avon directly goes to you whether you are in the office or in the comfort of your own home. And with this, the company is able to sell not just to the mall goers but almost to everyone in their target market having 500,000 sales representatives in the United States. The product goes directly to you.
By doing Direct Selling, Avon is able to lessen the costs in terms of rent and wages that a normal company utilizes for their sales in the mall or store. There are particularly no costs attributed to these factors. Another thing is that since the company relies on the sales representatives to make the orders during their selling cycles, they minimize inventory costs such as...
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