Avon Case Analysis Organizational Mission
Direct selling is an integral part of their business. They have around 5. 4 million Avon representatives in over 100 countries. 2-Avon has enabled a very large number of independent representatives to earn commission by selling Van’s products. 3- Previously Avon has a homey image of their brand focusing house wives but afterwards they have agglomerated their image by casting top actresses in their advertisement.
Minor Objectives I-Avon is highly focused towards health and wellbeing of women. 2-their competitive edge depends upon their quality, innovation and value. They have 3 product categories I. E. Beauty, fashion and home.
4-Received IS014001 certifications and clean industry certificate 5-Revenue has increased to 7. 5% from last years 6-Started Focusing towards short term investment in 2008 7-Avon is nearly eight times larger than Revolt which is its competitor. 8-Avon is Investing heavily in online sale of their products. 9-Len 1990 Avon announced a permanent end to animal testing for cosmetic product Major issues I-NO physical location 2-Representatives on credit (Representatives do not pay the company until they get moment from customers. 3-Expensive advertising cost Minor Issues I-Avon has 224 million in goodwill which is not good and 1.
4 billion in long term debt. 2-Avon has Lack of control over representatives Pros and cons of Major Objective I-Avon use the direct selling method of sale which is sometimes not feasible as these days competition is fierce and customers prefer to buy from branded retail outlet. So Avon needs to establish physical stores. 2-lit is difficult to keep control of large number of representatives around the world.
Representatives earn commission by selling Van’s product which enables them to feed their families.
3-Clamoring their brand image is a good move but spending a huge amount on advertising is not feasible. 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 (Yahoo Finance, 2005). Van’s products are classified into three product categories: Beauty, Beauty Plus, and Beyond Beauty. The
Beauty category consists of cosmetics, fragrances, skin care, and toiletries; Beauty Plus includes fashion Jewelry, watches, apparel, and accessories; and Beyond Beauty comprises home products, gift and decorative products, candles, and toys (Ibid).
The company sells and markets its products through a combination of direct selling, marketing by independent Avon representatives, and via its consumer Web site, Avon. Com. This paper will explore how the company is fairing under the leadership of its current CEO, Andrea Jung. There are two opposing views regarding the Meany’s current and future success.
One group feels that the firm has a promising future with Jung at the helm while the other group does not.
Recommendation I-Avon should start a new product line which is less expensive but of good quality to cater all marketing segments of society. 2-Establish physical brand outlets for their products so the customers can easily access to their products which will generate greater revenue. 3-Avon should decrease the expenditure on home segment and increase expenditure on cosmetic products. 4-Give training to their representatives to enhance growth.
