Sunday, March 17, 2019
Avon Case Analysis Essay -- Avon Cosmetics Make Up Essays
AvonAs of November 1999, Avon was experiencing economic troubles. Avons growth site of annual gross revenue was less than 1.5 percent during the greatest economic boom out in history. This prompted a transfer in leadership which appointed Andrea Jung as CEO. Since that time, Avon has experienced remarkable growth.Under the indicateion of the refreshing CEO, a new st ordinategy was developed to reinvent Avons image, improve customer satisfaction, and to increase profit margins and market share. Avon has gained an outstanding reputation as the best direct seller of beauty products. Through the carry ond efforts and achievements of its gross sales representatives, Avon is now cognise worldwide. Avons core competence has mainly been its direct selling busniess model. This conduct Jung and the direction team to implement a Sales Leadership political platform that provided incentives to acquire, train, motivate, and retain the human activity of active sales representatives it n eeds to sustain evidential growth. Avon as well has a representative development program that focalisationes on the sea captain training of representatives. This enables the representatives to provide valuable information on Avon brand products. Avon also keeps its superior customer service in other ways of statistical distribution such as the Internet and in the department store sales by having a timely and correct lodge delivery, one on one information exchange and personalized professional advice.Forces of Competition contestation among competing sellers in the CFT industry is strong. The creation of innovative products is crucial to success. This industry focuses on continually developing cutting edge products using the latest cognition and technology. Rivalry is stronger when customers costs to switch brands are low. substitution costs in the CFT industry are very low, due to the crowing amount of different brands of similar products. This cost is due to the higher numb er of competitors in the CFT industry and their tendency to copy new products in order to stay competitive.Another Avon objective that aims to alleviate pressures coming from competing sellers includes consists of reinventing their antiquated image. The transcription had been a major player in the CFT industry for decades. However, Avons management took a reactive approach and failed to evolve with the changing times. Because the CFT industry centers on mage conscious consumers, Jung d... ...na. Also, because the only sales in China are generated by means of retail outlets, Avon should go on develop their Beauty Advisors training. Europe should also be a continued focus for Avon. Industry leader, LOreals attributes 50% of their total sales to the European market. Avon has had a successful growth rate in Europe but only 23% of the total 2003 sales came from Europe. There is still room to expand in this market. Based on one of the industrys make out success factors, product innov ation, Avon should focus even more resources on R&D especially in the areas of anti-aging products and teen products. Because 23 million teenagers have an average weekly disposable income of $85, Avon should continue with innovative teen marketing such as the genuine mark brand but also work on products for line teen skin. Being ahead of the industry in introducing new products combine with the companys already strong market position could further improve Avons brand equity and therefore revenues. In particular, Avon should continue to integrate sales representative into all aspects of sales. This is Avons own key success factor and what sets them apart from their competitors.