Avon.com Presenters: Ashley Caldwell Harold Goldsberry Courtney Hamm Brandon Johnson
Executive Summary • Statement of the problem • Background • Discussion • Recommendations Avon.com must be integrated into the company in a way which not only supports the current representatives, but also builds upon the strong community that exists in the customer base.
Executive Summary • Statement of the problem • Background • Discussion • Recommendations Avon has already made a moderately unsuccessful attempt at an online presence in 1997. The current website must be created in such a way that it allows the best possible purchasing and shipping options, along with the most powerful community builders.
Executive Summary • Statement of the problem • Background • Discussion • Recommendations Integrating the representatives into Avon.com by having them place their orders online would allow the representatives more time to promote and gather future customers for themselves and the website. Also, the percentages show that the majority of the target market feels more comfortable buying through a representative. In addition to this integration, the company should sell products that are only available online in addition to products that are only available through representatives. This would help balance the sales between representatives and the website. Also, shipping cost should be consolidated to provide the lowest final price possible for the customer.
Executive Summary • Statement of the problem • Background • Discussion • Recommendations • Incentives for Avon Representatives promoting Avon.com • Website advertising aimed at women in the target market • Website exclusive products to increase website traffic
Introduction • Main Case Focus • Integration of Avon Representatives • Strategy of Avon.com • Other Concerns • Commission allocation • Products to be sold on the site • Marketing strategy • Shipping
History of Avon.com • Created in 1997 • Budget of $400,000 • No additional product information or community building • Viewed more as a method of testing the selling power of the internet rather than a true selling website
History of Avon.com • Only Beauty Products offered online • Minimal Advertising • Len Edwards
Edwards’ Choices • Create a new commerce only website • Create a website fostering community building and sharing of information
Advantages Fit well with traditional direct selling method Direct purchase Disadvantages Initial commerce-only website unsuccessful Commerce only website
Advantage Recent growth in internet usage Disadvantage Direct selling the key to Avon’s success Community-Based Website
Research • Data Collection Firm • Experts from AOL, Yahoo!, and Microsoft • Focus Groups
Discussion Points • Role of Representatives • Increase Traffic • Product Availability • Shipping methods
Role of Representatives • Representatives able to order from website • Ability to assign commission • Certain Products available only to representatives • Free shipping for representatives
Increase Avon.com traffic • Promotion through representatives • Integration with online communities such as iVillage • Behavioral Targeting • Product Packaging
Product Availability • Majority of products available online • Information about all products online • Web exclusive products
Shipping Method • Direct Shipping to Customer • Shipped to representative who will deliver to customer Choose which ever method is most beneficial to the company and the consumer!
Discussion Review • Avon Representatives included in Avon.com • Commission Allotment system • Representative exclusive products • Representatives, online communities, and behavioral targeting to drive traffic • Most products online
Discussion Review • Web exclusive products • Customer-chosen shipping methods
Strengths World’s largest direct seller of beauty products 500,000 Avon representatives in the US alone 26 magazine campaigns per year Low product cost geared toward middle/lower class comsumers Weaknesses Low advertising expenditures 100% representative turnover Stranded customers Shipping cost can hurt representatives SWOT Analysis
Opportunities Untapped growing market Low prices appeal to cost-conscious Americans Ability to reach women through online communities Growing Personal Care Products Threats Avon.com could reduce attractiveness of sales representative positions Drugstores already offer makeup products online Makeup competitors such as Revlon and Lancome SWOT Analysis
Questions And Comments