Marketing Management Marketing Report Avon in Australia

Essay by lihaobd January 2009

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TABLE OF CONTENTSExecutive Summary 3Introduction and Background 4Marketing Environmental Analysis 5Situational Analysis 7Critical Analysis of Marketing Strategy 8Future Growth Opportunities 11Recommendations………………………………………………………………………………12Reference………………………………………………………………………………………..14Executive SummaryThis report strategically focuses on investigating and analysing Avon Australia's current marketing environment and strategy. The report provides an in-depth situational and marketing analysis on Avon's current marketing operations which weaknesses have been identified that have led to areas for improvement and future development and growth for the company.

It has been determined that Avon competes with two very good competitors in Revlon and Loreal in the cosmetics marketplace in Australia. There are important differences between the business marketing strategies of these companies with Avon specifically focusing on a direct selling strategy that does not use retail distribution outlets to sell their products, compared to Revlon and Loreal who both have a wide range of distribution outlets that they use to sell products instead of a singular direct personally selling strategy that Avon practices.

Avon's Sales Representatives are the lifeblood of the organisation and it has been determined that they change frequently as well as are undertrained to perform their jobs effectively. Avon's promotion is also limited to the extent that it only uses coupons, website and a product catalogue to promote its products. Also the Avon Website is simple and not interactive, thus it doesn't provide a two-way communication process or exchange, nor does it segment its products or information effectively compared to Revlon and Loreal. Avon's products and markets are less distinctive then it should be, with the company continuing to add and remove products from its product range, which entails an inconsistent marketing strategy.

It has been determined that a market development strategy can be utilised to help grow and develop the company's existing products and market these to new markets e.g. female professional (working mothers)...