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Avon Essay

734 words - 3 pages

The Corporation
STRATEGIES

AVON CALLING -LOTS OF NEW REPS I
t has been a cold spiing on the East Coasit, and une afternoon in late Aj)nl. the température drops and the wind picks up. But that doesn't koe|i Luz Stella Bongiovi from buttoning up her black wool coat and walking three blocks from her office to Knickerbocker Avenue in Bushwick, a workingciass section of Brooklyn. Standing in front of a jeans store on this bustling commercial strip, Bongiovi smiles warmly, offering passersby Avon catalogs in Spanish and English. The glossy pamphlets are crammed with cosmetics, but this ritual has become less about racking up sales of lipstick and face cream and more about a hunt for people, ...view middle of the document...

S. ;md further into the worlduide markets, which make up almost twothirds of its business, she's joining a wave of mainline companies that are turning to multi-tiered marketing. Among the household names that have adopted the sales stnicture iji some area of their business: Sara Lee, Virgin Group, .The Corporation
STRATEGIES

AVON CALLING -LOTS OF NEW REPS I
t has been a cold spiing on the East Coasit, and une afternoon in late Aj)nl. the température drops and the wind picks up. But that doesn't koe|i Luz Stella Bongiovi from buttoning up her black wool coat and walking three blocks from her office to Knickerbocker Avenue in Bushwick, a workingciass section of Brooklyn. Standing in front of a jeans store on this bustling commercial strip, Bongiovi smiles warmly, offering passersby Avon catalogs in Spanish and English. The glossy pamphlets are crammed with cosmetics, but this ritual has become less about racking up sales of lipstick and face cream and more about a hunt for people, Hijeciiically futui*e Avon sales representatives. Bongiovi has a system that starts with the catalogs, someone takes one, she offers a free makeover, jots down her name and number, and soon schedules the beauty session. It's there that she has the time to pitch the benefits of selling Avon. Bongiovi has also run an ad in el diario/La Prensa, a New York Spanish-language newspapei'. It generated 7:i solid leads in six weeks. But no matter how she goes about (hiimming

A sales-force makeover helps the company's U. S. turnaround
up interest, she saves the best for last. Bongiovi shows fiotential recruits photocopies of her own biweekly checks for recruiting and managing other rejîs. Each one is for about S2,0(K). A]id that's before the $5,000 she averages for her own yales. That usually clinches the deal. Bongiovi is one of 25,000 U. S. rejK of Avon Products Inc. who are part of a multilevel sales force that Avon refers to as "Leadership." These independent contractors, who are paid a commission not only on their own sales but also on the sales of people they recruit and train, have been the driving force behind a four-yeai' tumai-ound in Avon's U.S. business. As Avon C O AnK
C EO JUNG

drea Jung moves the program beyond the U. S. ;md further into the worlduide markets, which make up almost twothirds of its business, she's joining a wave of mainline companies that are turning to multi-tiered marketing. Among the household names that have adopted the sales stnicture iji some area of their business: Sara Lee, Virgin Group, .\0L Time Warner, and Berkshire Hathaway. In l!)90. only 2(m of companies in the Direct Selling Assn. had multilevel pay packages, says President Neil H. Offen! Today, it's 80%. The need to keep up with othei- direct sellers is part of what di-ove Avon's multilevel eíTort. Today's mainstream multilevel maj'keting is different from eiU'lier, more controversial schemes at other cnnipanies that paid people to recniit others and often left the last...

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