Comparison of the results of various studies suggests that Avon and Oriflame are the most famous brands of the MLM companies in the Russian market. Typically, such information of companies is of a closed nature, it is essentially the know-how of a specific company. The results of the survey of a potential target audience of consultants in Moscow indicate a low interest in buying cosmetics through consultants Table 4.
Table 4 Attitude to the formats of cosmetic purchase point scale, where 1 — I do not like it at all, 10 — I do like it very much. Comparative analysis of the consumer survey data on their attitude to the method of direct sales of perfume and cosmetic products shown in Fig. According to the results of the analysis of utterances, two groups of participants were singled out practically the same in number of utterances : potential consultants, i. All utterances belong to women aged 25 to 40 years. Basically, such utterances are short and express either just interest or the question of what exactly should to be done in order to become a consultant.
Most of these utterances are neutral.
Future of Avon's China: Direct Sales, Retail Sales or Both Marketing Strategy Analysis & Solution
Many consultants with experience tell how they started, describe the history of their success. The utterances of experienced consultants are mostly positive. Involvement of consultants in interaction with the brand of the MLM companies can be considered as one of the strategic marketing goals of companies, since true loyalty in the conditions of saturation of the cosmetic products markets is provided rather by the involvement of consultants than their satisfaction. Behavioral involvement forms a high motivation, an active position, commitment to the brand and its seller, the desire to promote the brand.
The analysis of competitive positions of the MLM companies according to the main parameters is given in Table 5. The parameters were evaluated on a low, medium, high scale. Source : Composed by the authors based on the materials of research reports for Oriflame Sweden.
The analysis of the competitive situation in the perfume and cosmetics market in Russia shows that according to a comprehensive assessment of all parameters, Avon and Oriflame are the leaders. These companies are focused on the mass segment of the market; they occupy high positions in terms of the image and brand awareness, communicative activity, the product assortment width.
At the same time, both these terms describe the scope and business model, which is covered by marketing as a scientific and educational discipline. The authors have identified the opportunity to gain income not only through a personally organized and conducted transaction for the product sales, but also through the deductions from transactions made by other participants involved by them as specific features of multilevel marketing which distinguish it from network marketing.
Thus, they consider the multilevel marketing as a form of networ k marketing. Involvement is formed as a synergistic value of the consultant, in stages through brand awareness and interest emotional involvement , willingness to cooperate and accept commercial proposals cognitive involvement and, finally, behavioral involvement assumes continuous cooperation with the company.
Further research in this direction can be aimed at studying special loyalty programs for consultants of MLM companies that provide synergy effects of identified factors on the consultants. The know-how should be constantly improved because of the constant appearance of new influencing factors of the external marketing environment, of both positive and negative nature.
Such factors include, for example, increased interest and confidence of Russian consumers in the online sales.
The present study has shown that the share of online sales tends to grow substantially and takes a share in consumer preferences commensurable with the share of sales through the consultants. It can be assumed that the forms of online and direct sales will be combined now the MLM companies also offer online sales.
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This determines the direction of further research on the prospects for the development of sales organization form by the MLM companies. The authors express their gratitude to the students of the Faculty of Marketing of Plekhanov Russian University of Economics who took part in the study. Albaum, G. Multilevel network marketing: an objective view, The Marketing Review, 11 4 : DOI: Biggart, N. Chicago: University of Chicago Press.
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Bloomsbury Reference book. Haritonova Safonova , T. Prospects: Collected Scientific Articles, 6: Hossan, F. A Conceptual Evaluation of Traditional and Multilevel marketing.
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Motivational factors in multilevel marketing business: A confirmatory approach. Management Science Letters, 5 10 , Koehn, D. Ethical issues connected with multilevel marketing schemes. Kozinets, R. Journal of Marketing Research, 39 1 : Li, C. HRD Journal, 7 1 , Malhotra, N. Marketing research: An applied orientation. New York: Pearson Education. Home Products are still considered to be as a dog by the brand.
Europe, Africa, and East Asia are the markets which company looking to heavily invest in to change their category from Question marks to star somewhere in future while North America over the years has been a dog segment for the brand. Of these, an immediate offering was its essential channel while the other two were auxiliary channels of dissemination. The representatives of the brand were independent contractors and not workers of Avon. They were given 20 handouts, test items, sales books, order forms, etc.
In the mids, retail outlets were picking up a solid hold on market. Notwithstanding, for Avon, offering its items through retail locations was troublesome as it knew the move could distance its business agents. So as to go into office and claim to fame stores, Avon went into a joint venture with Liz Claiborne designer and made fragrances and beauty care products line and made these items accessible in 2, stores.
Avon, being a global maker and merchant of excellence, family, and individual care items, had confidence in coordinate offering since its beginning. It offered an extensive variety of beauty products, which also includes skin care products, cosmetics, perfumes, spa treatments, makeup, and everyday cosmetics and toiletries like shampoos, antiperspirants, and body lotions.
Avon Color was once one of the leading cosmetic brands in the world. The items were chiefly focused at women in the age gathering of 25 to 50 years. The items were of high caliber, positioned at a reasonable price and as products that provided value.condistterimo.gq
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In May , the brand had had already had a strong social media following with more than 18 million followers on Facebook , putting it in fourth among the worldwide beauty giants. Tragically for Avon, the decrease was not contained to one geographic area. Please note that corrections may take a couple of weeks to filter through the various RePEc services.
Economic literature: papers , articles , software , chapters , books. This paper contains an analysis of the marketing mix followed by a Swot analysis of company Avon. It continues with a market research conducted among women in Brasov highlighting the attitudes, opinions and behaviour of women in Brasov on the acquisition and use of cosmetics product. After analyzing data from market research shows that most women acquires cosmetic products from Avon company, the representatives role being extremely important.
Alexandra Palade, Handle: RePEc:pet:annals:vyip as.