Avon case analysis

Investment in representatives is increased to fund a number of initiatives such as the rollout of a new sales leadership opportunity, improved training, changes in the commission structure and new Web-based and mobile-technology tools. Avon distributes 3 products categories: Latin America has more revenue and profit for Auon than any other area. DuringAvon made a monumental change in marketing of its beauty products.

Avon case analysis

Archaic and limited distribution channel which would impede the intermediate and long-term Jung's strategy: Broaden Avon's reach in the U. Mary Kay was weak in traditional department stores and if Avon diversifies here, it would win a greater baby boomer customer base Edge against L'Oreal: Traditional department stores sought new products to add to their mix as well as high turnover personal care merchandise Edge against retail brands: Avon could match the medium- to high-priced products and is globally recognized brand name and image To defend her strategy: There are various routes that Avon can take and even the outside consultants had offered several suggestions.

Since Avon seeks to go WHERE they are not already represented, then these two particular department stores would be a great choice. Namely, this avenue represented an opportunity for Avon to "help" these two retailers build cosmetic consumers especially with Avon case analysis "Beauty Advisors.

Avon case analysis

Also, there would be less competition at these two outlets. As for aiming at Baby Boomers, this group is desirable because of their potential spending power expected to increase over the next five years.

They traditionally "outspend" all the other customer group categories, so they would be a great target group for Avon. Again, the key to success would be to aim at Baby Boomers and what they want is high quality and high value products.

Jung's vision of developing an upscale line to suit them would be in line with their needs. Furthermore, this group liked having various distribution channels and by offering Sears and JC Penney, this would be another way to capture more shoppers from this group.

Comment about the outside consultant's strategy: Cost too much and had too many focuses. Jung also addressed the problems brought up about her strategic plans and came up with good remedies to those problems. She saw an area where Avon could grow internal expansion and wants to go after it.

She can go after the other opportunities, such as the Internet, but right nowshe is focused on this one! Argument stating her grand strategy was not properly focused or directed: In her attempt to expand the market and improve profits for Avon Products, Inc.

Change Management at Avon

One area of concern with this strategy is that it is lacking support from the Avon board of directors. There are stated concerns from the board related to J.

Penny's and Sear's position in the retail market. According to the latest retail strategy, which was highlighted during the recent Oscar's, J. Penny's executives are specifically targeting the "middle" class market. Penny research their customer focus is on the "missing middle customer which is: One word that seems to fit with "middle" is "average".

This doesn't seem to fit with many of the newer product lines that Avon has spent so much time and financial resources to develop such as their spa products. Their goal in development of these products was centered more around a more "superior" approach not an "average" approach.

This would seem like a direct conflict with the objectives in developing these products. Another concern with Ms Jung's strategy is her decision not to heed the advice of the consultants that she brought in. One of their primary recommendations was to distribute the Avon spa products in specialty stores, which seems to be fully in line with current trends in "health".

It would appear that the consultant's recommendations are more in line with the current Avon external and internal environment than Ms Jung's.

Date of Submission: 02/10/2010

Lastly, when expanding any business product line, current successful processes must be considered and preserved. By aggressively jumping into the retail market Ms Jung is sure to jeopardize the current relationships with the Avon sales representatives that currently support the Avon Company.

If sales representatives become frustrated and leave the organization due to this strategy, which is very likely, then Avon's "core" current business is at serious risk. This places extreme pressure on the ability for the new expansion into the retail market to succeed.

Avon case analysis

It would appear that Andrea Jung has made a hasty strategic decision that could harm the reputation and profitability of the Avon Company, which has been in existence since It would seem reasonable for Ms Jung to reconsider her strategy taking into account recommendations made from the board of directors and the consultants that were brought in.

Refocusing is in order.Founded in , Avon is one of the world’s largest manufacturers and marketers of beauty-related products. This case describes Avon’s push into foreign markets via a combination of nationally responsive and globally standardized marketing strategies.

Annals of the University of Petroşani, Economics, 11(4), , ANALYSIS OF MARKETING MIX ON COSMETICS PRODUCTS CASE STUDY: AVON COMPANY ALEXANDRA PALADE * ABSTRACT: This paper contains an analysis of the marketing mix followed by a Swot analysis of company Avon.

Apr 17,  · Executive Summary: Avon Products, Inc. (Avon) is based in New York. The firm engages in the manufacture and marketing of beauty and complimentary products primarily in North America, Latin America, Europe, and Asia Pacific.

Avon's products are classified into three product categories: Beauty, Beauty Plus, and Beyond .

Avon Case Study Analysis Free Essay, Term Paper and Book Report Introduction Avon is a leading global beauty company, with $10 billion in annual revenue. As the world's largest direct seller, Avon markets to women in more than countries through million independent Avon . Avon Products (B) Case Solution, Presents the results of the decision made in the (A) case. Describes the following challenges faced Avon Products worldwide to promote their globalization. AVON CASE ANALYSIS Nikhil Muralidharan, Section-A, Roll No: The case talks about the expansion plans of Avon, the world‟s largest direct seller of beauty products and fifth-largest beauty company, into other non-retailing options other than direct- selling.

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Avon Case Study. Avon Calls on Foreign Markets Case Study Introduction Avon is a year old beauty product manufacturer, who has for over a century left a mark on millions of people throughout hundreds of countries.

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