March 16, 2007

Avon Keeps Knocking

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By Bernice Hurst, Managing Director, Fine Food Network

The armies of well-dressed, well-groomed ladies who used to ring the doorbell bearing samples of Avon cosmetics are about to be joined by a generation of new recruits.

The New York based cosmetic giant is pouring $340 million into a new Hello Tomorrow advertising campaign and signing thousands more Avon Ladies to sell its products. The campaign, which will feature Hollywood stars Salma Hayek and Jennifer Hudson, is the company’s biggest ever, larger even than the famous Avon Calling recruitment campaign in the 1970s.

Avon claims it sells one stick every three seconds. According to the London-based market research group TNS, the brand ranks among the top-selling manufacturers in the UK of fragrance, nail enamel, eye make-up and skincare, as well as those lipsticks 

But in the UK, apparently, perception is a problem.

Avon’s U.K. boss Andrea Slater told the Guardian that the reason two thirds of British women don’t buy from Avon is because they think of it as a relic of the past.

"Perceptions of Avon may still be rooted in the distant past of our 1970s advertising campaign," said Ms. Slater.

However, Avon is still using a ‘relic of the past’ approach–door-to-door selling–in order to reach its customers. The new recruits will join more than five million Avon Ladies–including 170,000 in the U.K.–selling more than $8 billion worth of products in more than 100 countries.

Although Avon was one of the first cosmetic companies to start selling online, the internet accounts for less than five percent of sales. Ms. Slater believes that having brochures and a trained saleswoman on the doorstep offers sufficient enticement to drag customers away from their computers and also provides a more personalized shopping experience than brick and mortar shops. She also said Avon’s shoppers, whose average age is between 25 and 45, are reluctant to buy cosmetics over the internet.

"It is relationship selling, direct to your door," said Ms. Slater. "Browsing through the brochure is ‘me-time.’ It is a nicer experience than sitting in front of a computer."

But one issue not addressed in the piece is when, how and where to reach those non-web using shoppers. In both the U.K. and the U.S., middle income women in Avon’s 25-45 target age range are usually out at work all day. Is Avon planning to put its ladies on the streets at night when their potential customers are likely to be at home? And is Avon’s version of "me-time" what those women are really seeking when their leisure time is already so full of conflicting demands?

Discussion Questions: Are there really enough women still at home during the day to justify this additional investment by Avon? If not, do women who are out at work all day really want someone knocking on their door during the evenings or weekends to sell them cosmetics? Is it really sensible or safe to encourage women to be out selling door-to-door during the evenings and weekends?
In my admittedly limited experience, it seems that (a) there are few women of the appropriate demographic for Avon at home during the day and (b) many women in that demographic share childcare with partners which means that the Avon lady ringing the bell really ought to have some men’s products in her bag as well as the women’s.

Facelift for Avon as it irons out wrinkles in its old-fashioned image – Guardian

Discussion Questions

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Art Williams
Art Williams

Raymond is right that this is more multi-level marketing than door-to-door selling. I’m not an expert but I think that a large percentage of Avon’s sales are to friends, neighbors, fellow workers and relatives. This doesn’t have the risks that some have talked about that a true cold canvas sales activity does. I think that Avon is wise to try to rejuvenate itself in this way.

Camille P. Schuster, Ph.D.
Camille P. Schuster, Ph.D.

The “high touch” approach is definitely a good idea. Hiring younger people to sell the products to other young people is also a good idea. Going door-to-door is probably not an effective use of time. However, talking to people at work, friends who are “hanging out,” or using a make-over as the reason for getting together by young people to young people has a good ring to me.

Raymond D. Jones
Raymond D. Jones

Think customer relationship!

While we may still think of the Avon Lady in terms of cold door-to-door sales, the truth is this is more akin to multi-level marketing with sales to friends, neighbors, and office co-workers.

Cosmetics are a very personal purchase and many women want a trusted source to confirm “that’s definitely your color” when they make a purchase.

Avon is trying to maintain its relevance to its customers by telling them “you look marvelous!”

Anna Murray
Anna Murray

Avon needs to learn from Dove in two ways.

1. First, the brand. Since The Campaign for Real Beauty has been so successful, we forget that 10 years ago Dove was a soap for old ladies. Your grandmother used Dove. Avon is also an aging brand. It has made efforts to become more relevant, but nothing close to what Dove has accomplished–to really tap into a current of energy shared by women around the world.

2. The new “going door-to-door” is happening online. If you are going to do consultative selling, send an email in which you offer live chat.

Mark Lilien
Mark Lilien

Avon’s profit growth has been better outside the US than domestically for quite a while. When US unemployment rises, Avon recruits salespeople more easily. When employment rises, not only are salespeople harder to find, but more women are at work, not at home, so customers are harder to reach at home. However, while at work, many women sell Avon to their co-workers during breaks, at lunch, etc. Avon salespeople have alternatives to simply walking around their neighborhood.

Li McClelland
Li McClelland

It makes me both sad and nostalgic to read this. Avon makes nice products. The personalized friendly service, the honest consensus forming choices, (i.e.; “I think this fragrance or this color works better than the other one on you”), and the neighborly/social aspect of the transaction once worked so well in our Mom’s day and age. While those same needs and desires are still very much present in cosmetic buyers, I am afraid the world has changed too much to make house to house calling safe or practical for either the Avon lady or the ladies of the house. Avon ladies who plan to count solely on known friends and family for sales will quickly “wear out their welcome.”

On the other hand, offices today are already mini-markets with officemates hawking everything from sports team candy bars, cosmetics, candles, their kids’ girl scout cookies, and wrapping paper from cubicle to cubicle. Many people find it an annoying, intrusive and inappropriate use of office time. It is a place where people can be asked to buy but I am not sure it is the best place.

Susan Rider
Susan Rider

This is absolutely a great idea. Avon is evolving and reinventing themselves with the current customer demographics.

The old customer base is aging as well as the current Avon representatives, therefore the company must take a preemptive approach. Avon ladies today are more creative than just knocking on the front door; they send emails on sales, deliver product to the ball field and make life more convenient for the new Gen Y buyer. With technology changing the way consumers purchase, the Avon distribution strategy needs to change as well.

This evolution strategy will help gain back some of their US market share. Personal convenience is what the new Avon customer wants and demands.

Karen Ribler
Karen Ribler

New blood and an old approach–high touch selling might be just the ticket. It’s been my experience that the Avon reps sell to friends and have a pleasant sales approach. Our golf club has AVON “Skin So Soft” available as a bug repellent due to a member who sells AVON.

Another comment–it seems that the demographics of stay at home moms are growing. So don’t be too quick to dismiss that market.

MARK DECKARD
MARK DECKARD

I foresee a hybrid approach working with the utilization of email and direct marketing bolstered by a local, personal contact at the customer’s disposal for personal presentation of goods…or not.

Picture this:

>Door to door distribution of brochures/door-hangers with contact data of the representative.

>Promotional incentive for the customer to go online to register and qualify for a free gift/discount/etc., thus collecting email contact data and maybe a few demographics.

>Ability for the customer to shop online and/or personally with the representative.

>Free shipping/free delivery by the representative.

>Customer Membership benefits and incentives/points earned for viral marketing to add friends and family to the fold.

The trend towards moms staying at home at least part-time is back and further, there is a widely growing number of home-based offices as well.

I think Avon will do well with a smart, modernization of a successful vintage design. Worked for the VW Bug didn’t it?

angela berry
angela berry

I believe Avon is smart, and heading in the right direction by launching a new era in door to door personalized service. I am in business school at Peirce college in Philadelphia. With a growing business mind to approach situations, I say do not change it if it’s not broken.

10 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Art Williams
Art Williams

Raymond is right that this is more multi-level marketing than door-to-door selling. I’m not an expert but I think that a large percentage of Avon’s sales are to friends, neighbors, fellow workers and relatives. This doesn’t have the risks that some have talked about that a true cold canvas sales activity does. I think that Avon is wise to try to rejuvenate itself in this way.

Camille P. Schuster, Ph.D.
Camille P. Schuster, Ph.D.

The “high touch” approach is definitely a good idea. Hiring younger people to sell the products to other young people is also a good idea. Going door-to-door is probably not an effective use of time. However, talking to people at work, friends who are “hanging out,” or using a make-over as the reason for getting together by young people to young people has a good ring to me.

Raymond D. Jones
Raymond D. Jones

Think customer relationship!

While we may still think of the Avon Lady in terms of cold door-to-door sales, the truth is this is more akin to multi-level marketing with sales to friends, neighbors, and office co-workers.

Cosmetics are a very personal purchase and many women want a trusted source to confirm “that’s definitely your color” when they make a purchase.

Avon is trying to maintain its relevance to its customers by telling them “you look marvelous!”

Anna Murray
Anna Murray

Avon needs to learn from Dove in two ways.

1. First, the brand. Since The Campaign for Real Beauty has been so successful, we forget that 10 years ago Dove was a soap for old ladies. Your grandmother used Dove. Avon is also an aging brand. It has made efforts to become more relevant, but nothing close to what Dove has accomplished–to really tap into a current of energy shared by women around the world.

2. The new “going door-to-door” is happening online. If you are going to do consultative selling, send an email in which you offer live chat.

Mark Lilien
Mark Lilien

Avon’s profit growth has been better outside the US than domestically for quite a while. When US unemployment rises, Avon recruits salespeople more easily. When employment rises, not only are salespeople harder to find, but more women are at work, not at home, so customers are harder to reach at home. However, while at work, many women sell Avon to their co-workers during breaks, at lunch, etc. Avon salespeople have alternatives to simply walking around their neighborhood.

Li McClelland
Li McClelland

It makes me both sad and nostalgic to read this. Avon makes nice products. The personalized friendly service, the honest consensus forming choices, (i.e.; “I think this fragrance or this color works better than the other one on you”), and the neighborly/social aspect of the transaction once worked so well in our Mom’s day and age. While those same needs and desires are still very much present in cosmetic buyers, I am afraid the world has changed too much to make house to house calling safe or practical for either the Avon lady or the ladies of the house. Avon ladies who plan to count solely on known friends and family for sales will quickly “wear out their welcome.”

On the other hand, offices today are already mini-markets with officemates hawking everything from sports team candy bars, cosmetics, candles, their kids’ girl scout cookies, and wrapping paper from cubicle to cubicle. Many people find it an annoying, intrusive and inappropriate use of office time. It is a place where people can be asked to buy but I am not sure it is the best place.

Susan Rider
Susan Rider

This is absolutely a great idea. Avon is evolving and reinventing themselves with the current customer demographics.

The old customer base is aging as well as the current Avon representatives, therefore the company must take a preemptive approach. Avon ladies today are more creative than just knocking on the front door; they send emails on sales, deliver product to the ball field and make life more convenient for the new Gen Y buyer. With technology changing the way consumers purchase, the Avon distribution strategy needs to change as well.

This evolution strategy will help gain back some of their US market share. Personal convenience is what the new Avon customer wants and demands.

Karen Ribler
Karen Ribler

New blood and an old approach–high touch selling might be just the ticket. It’s been my experience that the Avon reps sell to friends and have a pleasant sales approach. Our golf club has AVON “Skin So Soft” available as a bug repellent due to a member who sells AVON.

Another comment–it seems that the demographics of stay at home moms are growing. So don’t be too quick to dismiss that market.

MARK DECKARD
MARK DECKARD

I foresee a hybrid approach working with the utilization of email and direct marketing bolstered by a local, personal contact at the customer’s disposal for personal presentation of goods…or not.

Picture this:

>Door to door distribution of brochures/door-hangers with contact data of the representative.

>Promotional incentive for the customer to go online to register and qualify for a free gift/discount/etc., thus collecting email contact data and maybe a few demographics.

>Ability for the customer to shop online and/or personally with the representative.

>Free shipping/free delivery by the representative.

>Customer Membership benefits and incentives/points earned for viral marketing to add friends and family to the fold.

The trend towards moms staying at home at least part-time is back and further, there is a widely growing number of home-based offices as well.

I think Avon will do well with a smart, modernization of a successful vintage design. Worked for the VW Bug didn’t it?

angela berry
angela berry

I believe Avon is smart, and heading in the right direction by launching a new era in door to door personalized service. I am in business school at Peirce college in Philadelphia. With a growing business mind to approach situations, I say do not change it if it’s not broken.

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