Company Case: Avon: a Promotional Strategy Makeover

Company Case: Avon: A Promotional Strategy Makeover

  1. How does Avon’s new strategy change the promotion mix? How do the elements of the new promotion mix support each other?

With the new marketing strategy, some of the elements of the promotion mix changed. For the sales promotion, the price was cut up to 75%. For personal selling, new compensation program that allowed sales representatives to earn up to 21% in bonuses based on the sales of new representative they recruited was introduced. Elements of the new promotion mix like advertising and public relations activity supported the new strategy. To support the catalog program, a toll-free telephone number was provided and a print ad campaign that featured “Avon-The Smartest Shop in Town” was launched. Series of television commercials backing the catalog program would also be employed.

  2. What are Avon’s objectives for its catalog, print and television campaigns?

Avon’s objectives are to promote the catalog program by encouraging the consumers to use the toll-free numbers, to increase profits, to gain market share and to win over with their competitors.

  3. What advertising message(s) should Avon communicate with its new programs, and what message execution style(s) would you recommend? How would you measure the effect of the new campaigns?

The advertising message Avon should communicate with its new programs is that consumers can buy Avon products even they are not at home. As long as they have the toll-free numbers with them, they can order Avon products. They can use the lifestyle, mood or image or personality symbol to execute the message. To measure the effect of new campaigns, Avon can evaluate their records of orders using the toll-free numbers.

  4. What consumer or sales force promotions would you recommend to Avon?

Avon can use incentive programs to encourage their sales representatives to sale more. Since Mary Kay Cosmetics has their new compensation system, which is...