May 20, · Employee Relations - Case Study Analysis. This essay will explore three case studies: Outsourcing in electricity generation, The non-unionised company and Cost Aug 25, · Essay type Case Study Avon, the world’s leading direct selling cosmetics company, has begun to intensify its online ventures in an effort to develop new markets and improve communication with its sales manpower blogger.comted Reading Time: 11 mins Words: Length: 4 Pages Topic: Business Paper #: AVON Product Case Study Analysis Avon Products Case Study Analysis Avon Products was founded in by David H. McConnell, a door-to-door book salesman who had a knack for making perfume
AVON Case Analysis Essay - Words | Bartleby
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.
The Beauty category consists of cosmetics, fragrances, avon case study analysis essay, skin care, and toiletries; Beauty Plus includes fashion jewelry, avon case study analysis essay, apparel, avon case study analysis essay, and accessories; and Beyond Beauty comprises home products, gift and decorative products, candles, and toys.
Order custom essay Avon Case Study with free plagiarism report. 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.
However, by the s, the company had lost its luster and performance began to falter. A failed diversification strategy made it the target of several takeover attempts. Turnaround efforts were initiated in the s under then CEO James Preston and continued by his successor Charles Perrin, however, they failed to make a significant impact. Performance began to improve only after Andrea Jung became the CEO of the company in Andrea Avon case study analysis essay became president and CEO of Avon case study analysis essay in and has totally revamped the company.
Under her leadershipthe company has updated its product line, launched new advertising, and created a new image, avon case study analysis essay.
This vision is shared by all employees and representatives of Avon priming the company for continued success. 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. As mentioned in the Avon case studythe e-representative initiative also has helped Avon cut costs.
The direct sellers are asked to fill in the order online. During the s, the company began to diversify by investing in retirement properties and healthcare products, and launching catalogs for men and children. During the initial stages of this strategy, Avon started to remove itself from its core market of selling to women. The results were downward revenue trends and slow growth throughout the 's which resulted in several takeover bids.
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.
Over the years, Avon has experienced several problems leveraging its brand in many of its product lines. As a result, positive net sales and earnings growth for the past five years have been in single digits and steadily declining year after year.
Specific problem areas are stagnated sales, slow earnings growth, limited distribution capabilities and shift in personal care preferences and spending habits. The proposed plan will indeed create an additional distribution outlet and cater to this market segment. However, the question to examine is at what expense or cost will Avon endure making this decision?
Avon has faced tremendous pitfalls marketing its product lines to effectively increase brand loyalty and recognition. Examples of this include the hair care product line. Avon did not effectively develop products for ethnic hair types, avon case study analysis essay.
Additionally, Avon did not have a hair coloring product line. As a result, Avon suffered in building brand awareness and loyalty with the younger generation as well as the older generation that also demanded this product, avon case study analysis essay. Avon has lost loyalty and brand recognition as a result of its decision to diversify into different industries and different product lines. This has resulted in a loss of market share drastically affecting annual profit margins. To examine the previous question of what cost will Avon endure deciding to move into the retail markets?
It is clear and evident; the cost will be a further extension of the existing internal problems that Avon faces. Another factor for the underperformance of Avon in the late s is its failure to develop the online business. For the fear of alienating its labor force, Avon downplayed the importance of developing the e-business. A company cannot ignore the environment and expect to be successful in the long run.
The focus should be on existing internal structures to build, create and advance current product lines. To accomplish this, strategy should focus on expanding kiosks globally and domestically.
The expansion will leverage Avon by appealing to the market segment requesting additional distribution channels, avon case study analysis essay. This strategy will allow for trained beauty consultants to offer advice, education and samples thus increasing brand awareness and loyalty. Kiosks will have minimal start up cost and lower overheads.
Focusing on product lines and catering to the needs and wants of each demographic group will prevent the previous pitfalls of lack of integration and decreased brand awareness and loyalty. Focusing on technology improvements and online sales, Avon will have an opportunity to emerge as a leader in this area, thus adding additional channels of distribution and appealing to the overwhelming need.
Some of these challenges were addressed successfully and others were not. In the early part ofthe management team had the daunting task of choosing an appropriate strategy for the immediate and long-term future for the company. By refocusing on the core competency, improving efficiencies, and avon case study analysis essay to the environment with new initiatives, Avon could overcome the hurdles of the past and turn the company in the new direction.
What has she done well? What overall grade would you give Andrea Jung for the job she has done as CEO? Her first task was to hit the streets of her neighborhood, ringing doorbells, to better understand the desires of customers and needs of sales agents. She pushed for the addition of attractive new products to Avon and its sales representatives. Andrea listened to the customers and grew global beauty category sales by new product development, sampling and more up-to-date advertising.
The company was in serious trouble with annual sale growth of less than 1. Andrea Jung has clearly directed the successful transformation of Avon Products Inc. by defining its vision as the company for women. The strategic plan in place has its merits and the grand strategy is properly focused and directed.
Avon markets to women around the world through 4. The argument that the grand strategies were not optimal and needed to be refocused was weak due to the overall improvement of company performance and increase in shareholder wealth. She developed great strategy for Avon that helped to increase in sales. Andrea Jung outlined new vision and strategic plan for Avon that call for highly innovative new products, build new line of business, critical link as internet in direct selling model and update its direct sales model to better fit 21st century.
Why was it time for Avon to fundamentally change direction? I think their new strategic direction made sense. She knew products had to be made to fill the needs of different age group and races.
It was time for Avon to become more modern and up-to-date. She was in customer convenient strategy in beauty and financial services. She insisted that supporting women touches not only beauty, but healthfitness, self empowerment and most important financial independence.
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, avon case study analysis essay. When Perrin resigned because of his lack in direct sales limitation, Andrea Jung need a fundamental change in direction.
Jung understood the desires of customers and needs of sales agents. She heard the customer grips over product colors, mishandled orders, unattractive packaging, lack of innovative products and confusing promotions.
Ultimately she discovered the structural obstacles to achieve in success. Policies for placing orders made difficult for sales agents to increase sales volume and commissions. When Andrea Jung stepped in as CEO of Avon, she brought with her many new, fresh ideas that helped make Avon what it is today, avon case study analysis essay. Do they contain too much stretch?
Too little stretch? Several things happened once Andrea Jung was named CEO of Avon. First, she decided to reverse the current trend of losing sales. She did this by creating a strategy that would turn the company around.
It would introduce a new, upscale product line, thus increasing profits, sales and nationwide exposure to the baby boomer segment. Retail selling increased with in-store customer traffic and expected growth of spending power to 16 percent within five years. Face-to-face avon case study analysis essay comprised The marketing budget would be increased to target customer traffic at Sears and JC Penney.
Jung suggested promoting certified Beauty Advisors in department stores and increased incentives for sales representatives. In addition, having department stores sell via the Internet would increase the channels of distribution, thus increasing consumer loyalty. Reduce inventory level while improving service to representatives which increase the forecasting avon case study analysis essay and order fill rate in supply chain management.
Strategy provides opportunity for sales representatives to increase their income and greater career opportunities through sales leadership. Develop E- commerce opportunity for Avon and sales representatives, improving operating margins basis points though business process redesign, avon case study analysis essay.
Another strategy is growing global beauty category sales through in new product development, advertising and sampling, avon case study analysis essay. Jung had created a strategic plan that met the vision of Avon; she had created goals that were measurable and geared toward future company growth.
The goals seemed to be obtainable in the current business market. This ideal would be synergistic and build upon their present success. It is too little stretch because the objectives were not set boldly and aggressively high. These goals were not impossible targets. What new and different strategy elements have been initiated by Andrea Jung? Avon catered to mostly upper middle income females and focused almost exclusively on US cosmetic market.
Andrea Jung initiated expansion into markets outside US making Avon products available online, and began selling Avon products through retail channels. She also instituted a more upscale packaging to match the look of prestige cosmetic brands. Her approach is sensible in light of what competitors are doing and the position they hold in the market place. Avon is highly backward integrated, self-manufacturing many of the items that they sell.
Avon Case Study
, time: 1:11Avon Case Study Analysis Essays and Term Papers 1 - 25
Words10 Pages. Avon Case Study Analysis. During the s, Avon began to lose its appeal to the public. The number of new company sales representatives had begun to stall; and by , the U.S. sales representatives had dropped 1% from the previous year (Pearce and Robinson, , pg). It was at this critical time that Andrea Jung, an Avon saleslady May 20, · Employee Relations - Case Study Analysis. This essay will explore three case studies: Outsourcing in electricity generation, The non-unionised company and Cost Avon Case Study Analysis Essay, Explain The Importance Of Critical Thinking In Research, Rhetorical Analysis Essay How To Annoate, History Of The Trombone Essay It seems disappointing when learners fail to achieve desired marks and require resetting the module/10()
No comments:
Post a Comment