7 billion dollar cosmetics company that serves tens of millions of women. They have defined themselves as one of the top ten direct marketing companies and are listed globally as one of the top 100 recognized labels. Avon has a very high success due to its marketing communication. One aspect of marketing communication is sales promotion and this paper will emphasis on how Avon uses sales promotion to achieve its goal and objectives. Sales promotion is a marketing communication function that encourages action by adding tangible value to brand offering. More specifically, it is a short term, added value offer designed to encourage and accelerate a response. There are two basic sales promotions: push strategies and pull strategies. Push strategies are marketing communication efforts targeted at members of the distribution channels and pull strategies are marketing communication effort targeted at end user. Avon is focusing more on pull strategies rather than push strategies. There are different types of consumer sales promotion including coupons, price reductions, rebates, premiums, specialties, sampling, sweepstakes and contests, tie- in promotion, and loyalty promotions. .
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Avon does not offer coupons because Avon is different from any other beauty product. Unlike Maybelline or L’oreal, they often offer coupons that customers can get from some fashion magazine. Coupons do not work for Avon because of two reasons: first, Avon products and relatively cheap and second, Avon’s customers are their sales representatives, not the end customers. Sales representatives are able to buy Avon product in extremely low price depending how well their performance are. The lower price they get to buy the products, the more profit they gain. .
Avon is emphasizing on price reduction because the main goal is to get customers to buy more of their products. Even on their website, customers can get for example, 2 bottles of shower gel for the price of one (“buy one, get one free-) or if customers buy 3 bottles, they will get certain percentage of discount.