Avon Case Analysis Essay -- Avon Cosmetics Make Up Essays

AvonAs of November 1999, Avon was experiencing economic troubles. Avons growth valuate of annual sales was less than 1.5 percent during the greatest economic miraculous food in history. This prompted a transfer in leadership which appointed Andrea Jung as CEO. Since that time, Avon has experienced remarkable growth.Under the placeion of the immature CEO, a new st commitgy was developed to reinvent Avons image, improve customer satisfaction, and to join on profit margins and market share. Avon has gained an outstanding reputation as the best direct seller of beauty products. Through the actd efforts and achievements of its sales representatives, Avon is now cognise worldwide. Avons core competence has mainly been its direct selling busniess model. This light-emitting diode Jung and the way team to implement a Sales Leadership architectural plan that provided incentives to acquire, train, motivate, and retain the publication of active sales representatives it needs to susta in crucial growth. Avon in addition has a representative development program that counseles 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 scattering such as the Internet and in the department store sales by having a timely and correct pose delivery, one on one information exchange and personalized professional advice.Forces of Competition ambition 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 perception and technology. Rivalry is stronger when customers costs to switch brands are low. displacement costs in the CFT industry are very low, due to the striking amount of different brands of similar products. This cost is due to the higher number of competitors in the CFT indu stry 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 organic law 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 through with(predicate) retail outlets, Avon should provided 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 recognise success factors, product innovation, 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 fluid income of $85, Avon should continue with innovative teen marketing such as the present-day(prenominal) mark brand but also work on products for puzzle teen skin. Being ahead of the industry in introducing new products unite 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.