A failed diversification strategy made it the target of several takeover attempts. In addition to the financial success, Ms. 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.
The strategic plan in place has its merits and the grand strategy is properly focused and directed. The move of aligning with this companies and trying to sell higher end beauty products will only push Avon in the opposite direction that it should be heading, which is to move back towards tailoring to women domestically and globally.
Other strategies of Jung include cost cutting by reducing number of raw material suppliers, shifting production from smaller plants to larger ones, moving manufacturing from high cost nations like Great Britain to lower cost countries such as Poland.
The strategies initiated by Charles Perrin had resulted in some improvement in with modest sales growth, but in late Avon was in need of bold direction.
This ideal would be synergistic and build upon their present success. Avon catered to mostly upper middle income females and focused almost exclusively on US cosmetic market.
She pushed for the addition of attractive new products to Avon and its sales representatives. For promoting direct-sales through consumer and the business; one is to offer incentives to its customers and second is to motivate the business to promoting its products by advertisements, establishing sales competition for employees, participating in conventions, and by endorsing franchise of its products to retail stores.
The direct sellers are asked to fill in the order online. This strategy will allow for trained beauty consultants to offer advice, education and samples thus increasing brand awareness and loyalty. This market is competitively strong.
Rebates can be offered also to attract more buyers to buy the products. The expansion will leverage Avon by appealing to the market segment requesting additional distribution channels.
Avon markets to women around the world through 4. What risks do you see? Advertising is the key to attracting consumers and the outcome is high sales.
What problems or missteps do you see? However, the question to examine is at what expense or cost will Avon endure making this decision? One problem that Avon faces is the strong competition within fields they are trying to expand into.
Started in the late s by David McConnell, the company sold a wide variety of beauty-related products to homemakers through its direct sales agents. Some of these challenges were addressed successfully and others were not.
The company was in serious trouble with annual sale growth of less than 1.Access to case studies expires six months after purchase date. Publication Date: March 14, Avon Products announced both a change in its business focus and a reduction of its dividend in June.
Avon Products Inc. A strategic Management Case Study.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. CASE STUDY: AVON Cosmetics.
ANDREA JUNG’S MAKEOVER OF AVON PRODUCTS INC On Andrea Jung‟s commencement as CEO in she faced a number of strategic problems at Avon. 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, ).
As mentioned in the Avon case study, the e-representative initiative also has helped Avon cut costs. The direct. Avon Case study 1. INDIVIDUAL ASSIGNMENT 2 Goliath’1.
Surveys revealed that 95% of women who brought cosmetics at mall kiosks had never bought Avon products before and these women brought cosmetics only at retail stores since they could see and test the product before purchasing. ii. Secondly, the target consumers at the retail. Avon Case Study 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.Download