Avon Co was established in the year 1886. From a modest beginning, it has grown to become one of the leading cosmetic companies in the world. Fragrances, cosmetics, accessories and home decor products are just some of the commodities Avon produces, targeting mostly the female clientele. What sets this company apart, however, is that it employs the traditional direct sales method that is, nowadays, the reserve of small companies. For a company that has been in operation for so many years one would expect the sale and marketing methods to take a much more contemporary inclination. The questions that linger, therefore, are why direct sales? Does it work for them?

Avon Co employs a network-marketing model whereby products are sold through sales representatives. Avon recruits agents, trains them on the various products and then sends them out on a mission to sell the products on a door-to-door basis. The fact that the remuneration is on commission basis, depending on the number of products sold, is the reason why the agents are motivated to be more proactive. How much the agent shall be able to sell is contingent upon his or her marketing and social skills. The income that an agent can earn is infinite, sell more earn more, this motivates the agents to be more aggressive. Being complacent would not make any economic sense to the agent in the long run.

Avon Co is a perfect example of how efficient and effective direct sales can be to a firm. The channel through which the products pass from the company to the customers is short. By selling directly to customers, intermediaries are eliminated, therefore, the prices of the products are not inflated. By the time the product reaches the customer, prices are almost the same as the factory prices. The short channel also reduces the sales budget greatly. Minimum advertisement is required since the representatives do all the marketing themselves. Representatives only need to be supplied with pamphlets and leaflets that they distribute to customers.

Direct sales are also more advantageous over retail sales since the customers get to interact with the representatives, they can ask questions and get immediate feedback. The personal nature of direct sales also makes it more persuasive to the customer unlike retail sales where the goods sell themselves. One of the main objectives of any business venture is to maximize revenue whilst keeping cost at a minimum. Through the employment of the direct sales technique, Avon Co has continued to be both effective and efficient in its operations. This technique was a big hit in the 1950’s and 1960’s when most women were homemakers. Sales representatives were almost guaranteed that a knock on the door could lead to a sale since chances of finding the woman of the house present were very high.

The success of Avon Co due to direct sales is proof that this age-old technique is efficient and relevant even in a modern set up. Avon Company has attested to the fact that the marketing strategy of a company must not be influenced by the size of its budget. Even big multinationals can successfully employ direct sales technique.