Factors in Avon's microenvironment leading to shape its marketing strategies:
The company's top management: In 1988 Avon's CEO James E. Preston introduced various changes and applied modifications to Avon's business structures which directly affected its marketing strategies. Andrea Jung who later became Avon's new CEO partnered with Mattel and made more changes such as the "Let's Talk" campaign and the alliance with Roche Consumer Health geared Avon to a new level of marketing planning and development.
The company's decision to refocus the company on its core business- selling cosmetics, fragrances and toiletries and selling unrelated business. With addition to cutting prices of Avon's product had a great impact on the marketing strategies because this step was a clear strategy to reinforce Avon's image and attract customers to take notice of its presence.
The customers: The "Lets Talk" positional campaign was developed after Avon consulted with marketing departments in 13 key markets around the world, its aim to uncover woman's commonalties as well as their differences.
Based on the research uncovered from the customers allowed the company's R&D to produce and manufacture higher quality products to match customer's taste.
The marketing intermediaries: The partnership between Avon and Mattel, Inc. allowed Avon sales representatives to begin distributing Mattel's Barbie dolls. This partnership was beneficial to both parties as "powerful distribution channel was combined with powerful brand image". Avon's added a renowned brand to its product line at the same time Mattel products were distributed by a powerful distribution channel.
Marketing intermediaries: The ladies that promoted, sold, and distributed its products decided that they needed more than part time jobs. Therefore, the sales force turnover increased more than 200 percent. This caused that many customers could not find a salesperson when they wanted to buy a product. In 1997, they made a drastic...