Avon Cosmetics Marketing Strategy

1.1 Introduction

According to a recent estimate, about 25% of all television and print advertisements in the United States have featured celebrities (Shimp, 2000), 57% in Korea (Choi, Lee & Kim, 2005), and 70% in Japan (Money, Shimp & Sakano, 2006). Celebrity endorsements have also spread to other countries such as New Zealand, Turkey and India (Money et al, 2006). This phenomenon is extreme in India as celebrities appear in 24% of the ads in India and 45% in Taiwan. However, the percentage is much lower in Europe. In Germany, for example the rate is only around 16%. Over the last decade, corporate brands have increasingly turned to Hollywood celebrities and musicians to sell their products. According to Millward Brown from a marketing research agency, stars showed up in nearly 14% of ads in 2008. In the year 1996, US companies paid more than 1 billion dollar to celebrity endorsers for endorsement deals and licensing rights.

Marketers nowadays prefer to use celebrity endorsement as one of their marketing strategies for promoting various

The company position itself through a broad range of men’s fragrances and women’s fragrances which is offered in an affordable price (Euromonitor, 2014: page 27). Avon Cosmetics has endorsed several celebrities under them which are Fazura and Scha Alyahya. Both of them are choose because of the quality that they have such as physical attraction and acting skills. They are the actress, models and also host for a popular shows. However, a rising number of new launches fragrance products from other companies resulted in a drop in total value share possessed by Avon Cosmetics of five percentage points from 2012. Other huge brands like Enchanteur and Silkygirl are becoming strong competitors of Avon upon the launch of more new variants. Enchanteur currently endorsed new actress, Nelydia Senrose and longtime popular host and actress, Sazzy