AVON Cosmetics-Place and Price Analysis Research Paper

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As a result of the implementation of this pricing strategy, whenever a modification is incurred in the price of the commodities used in the process, this modification is reflected in the products' retail prices. In other words, when the costs of manufacturing and distributing the AVON cosmetics increase, the retail price of the products will also increase. Vice versa, as the costs decrease, the retail price would decrease.

The second component of the pricing strategy is that of discount pricing. Discount pricing generally implies the vending of the company's merchandise at reduced prices in order to achieve various goals, such as promoting a product or rewarding the loyalty of customers or representatives. The AVON pricing strategy is unique as it offers discount prices for the representatives on the one hand, but also for the products in the catalogue on the other hand.

Finally, the last aspect of AVON's pricing strategy is that of revealing competitive prices.

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The AVON products are high quality and as such comparable with more renowned brands such as L'Oreal or Vichy. Yet, they are sold at lower prices, meaning as such that they are more easily accessible to consumers. Even relative to number one competitor Oriflame, AVON's prices are still slightly lower. This ability to implement competitive retail prices is given by a combination of efficient management and the representatives' distribution strategy which reduces organizational costs......

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