...STRATEGIC ANALYSIS OF AVON PRODUCT INC Name: Institution: Tutor: Course: Date: Table of Contents Strategic Analysis of Avon Product Inc 2 Executive Summary 2 Introduction 3 1.1 Background of the Company 3 2.0 Market Segmentation strategy 4 2.1 Value addition for new products and services 4 2.2 Strategic economic evaluation and implementation processes 4 2.3 Development in sales and cost effectiveness 5 2.4 Good market studying strategies 5 2.5 Proper search of the new market and opportunities 6 3.0 Targeting strategy 6 3.1 Proper market survey 6 3.2 Diversification through acquisition 7 3.3 Waste reduction and Environmental sustainability 7 3.4 Production of healthy and high quality products 8 4.0 Positioning strategy 9 4.1 Techno-economic paradigm 9 4.2 Proper market decision 9 4.3 Primary and secondary data collection 10 Recommendation 10 References 11 Strategic Analysis of Avon ProductInc Executive Summary Avon Company is the leading world beauty company that operates as a manufacturer, retailor, and marketer of cosmetics and other beauty related products. It started its operations in 1880s as a small segment through a door-to-door sale of perfume products. It later diversified into health-related products in 1980s, a period during which it recorded negative profit margin due to poor management, production and market plans. Despite the challenges, Avon Company has grown to be the number one global producer and marketer of the beauty products with women...
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...Avon was formerly known as the California Perfume Company was founded in 1886 by David McConnell. The name Avon came in 1939 with an increased product line. Avon is an American international manufacturer and direct selling company. Avon sells and makes items in beauty, household, and personal care categories. Avon is a multi level marketing company that is the second largest direct selling company in the world. It is also the fifth largest beauty company in the world. Their organizational structure begins with the CEO and chairperson of the company, Andrea Jung. Under the CEO the company is divided into 6 subgroups: president and chief officer, SVP retail, EVP finance, SVP global IT, SVP Human resources, and SVP corporate communications. Within these subgroups the president and chief officer has another 5 subgroups. The first four are SVP of the different regions that Avon sells and markets it's products and the last one is SVP of global marketing. The regions that Avon sells its products are: Latin America, North America, Asia pacific, Europe and east Asia. And finally the SVP of global communication has its subgroup of VP global marketing. Avons business model consists of using door to door sales and brochures to promote its sales. When working for Avon you are considered an independent sales representative or your own boss and make your own sales of products from the brochures. SWOT Analysis of the company: Strength 1. Differentiated business model to emerge...
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... | | | | | | | | | | | | | | | | | | | | | Preparing a Comprehensive Case Analysis Avon vs. Competitors | | | | Carrie Rose Business Policy, Professor Frost 4/20/2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Preparing a Comprehensive Case Analysis Avon vs. Competitors | | | | Carrie Rose Business Policy, Professor Frost 4/20/2012 | History Avon is a global manufacturer and marketer of beauty, fashion, and home products. The company operates worldwide using a direct selling model; Avon has approximately 6.5 million independent representatives that sell their products for them across the globe. They are divided into six geographic locations: Latin America, North America, Central, Eastern, and Western Europe, Middle East, Africa, Asia Pacific, and China. The company has numerous distribution centers, manufacturing facilities, and administrative offices in every one of these locations. They initiated global expansion in the in the 1950’s, went public and was listed on the NYSE (New York Stock Exchange) in 1964. (Datamonitor, 2011) Current News In recent years Avon has been undergoing some challenges, both internal and external. Andrea Jung who has been CEO (Chief Executive Officer)...
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...GLOBAL ANALYSIS- AVON MGT 795: Section G11 Professor: Patrick Saparito Jennifer Callaghan J.R. Longino Rasa Navickaite Meghan Quinn Lia Torre Table of Contents EXECUTIVE SUMMARY/ABSTRACT 4 OVERVIEW 5 History and Background 5 Mission Statement 5 Social/Corporate Responsibility 6 BUSINESS ANALYSIS 8 Core Competencies 8 Management Structure 9 Current Objectives 9 Current Short Term Objectives 9 Current Long Term Objectives 10 Current Strategy 10 Advertising and Representative Value Proposition (“RVP”) 10 Product Line Simplification(PLS) 10 Strategic Sourcing Initiative 10 Enterprise Resource Planning System 11 Zero-Overhead-Growth 11 Restructuring Initiatives 11 SWOT Analysis 13 Strengths 13 Weaknesses 15 Opportunities 17 Threats 22 FINANCIAL INFORMATION 23 SUMMARY OF RECOMMENDATIONS 25 Technology and Social Media 25 Focusing on International Growth- the BRIC Countries 27 Brazil 28 Recommendations for Brazil 33 Russia 34 Recommandations for Russia 40 India 41 Recommendations for India 46 China 47 Recommendations for China 53 Conclusion ………….…………………………………………………………………………………….54 REFERENCES 55 AVON- A GLOBAL COMPANY FOR WOMEN EXECUTIVE SUMMARY/ABSTRACT Avon is a powerhouse in the beauty industry with over $10 Billion...
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...EXECUTIVE SUMMARY Purposes of the Report The purpose of this report is to (1) analyze the policies and strategies of five competing companies that may have contributed to their honorable reputation as one of the best corporate citizens in 2009, and (2) inform the managers of Johnson & Johnson about possible policies and practices that can help their company become a better corporate citizen. By implementing these new strategies, the goal is to enable Johnson & Johnson to be included on the Forbes list of 100 Best Corporate Citizens for 2011. In order to discover the methods in how these competing companies have earned their placement on the Forbes list, research was conducted into their policies in several key categories. First, the competitors’ environmental and employee relations policies were evaluated. These two categories are the most weighted when being considered for inclusion on the Forbes list. Additionally, research was also conducted on the competitors’ policies in the remaining categories that are considered in the process for inclusion on the Forbes list: climate change, human rights, philanthropy, finance, and governance. The following is a report of the findings on the most relevant policies used by these various competing companies that have earned recognition on the Forbes list. Policies of Good Corporate Citizens All the competing companies included in this report have utilized several policies that have garnered them the distinction of being...
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...Avon Calls on Foreign Markets Case Study Introduction Avon is a 125 year old beauty product manufacturer, who has for over a century left a mark on millions of people throughout hundreds of countries. Avon is most popular for their direct selling technique in which the company sells products directly to distributors or final consumers rather than to trading companies or other intermediaries in order to achieve greater control over the marketing function and to earn higher profits. While this method has proven to be successful for Avon and has certainly contributed to their longevity in the market, there are still crucial factors imposing on the company’s global presence throughout the world. The case study “Avon Calls on Foreign Markets” shed light on issues related to branding, pricing, promotion, as well as distribution. Throughout this analysis, I have identified the shortcomings of Avon over the decades and have also provided recommendations for moving forward. Global Branding Avon is known for their standardized branding, which allows the company to create a uniform global quality image while saving costs by using uniform ingredients and packaging. While this method may be helpful in increasing sales in Thailand as consumers prefer to buy beauty products made by foreign companies, this may not necessarily always work out to Avon’s advantage. For instance, Daniels et al (2011) reveals several barriers to uniform branding that Avon should most certainly be aware...
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...Social/Corporate Responsibility 6 BUSINESS ANALYSIS 8 Core Competencies 8 Management Structure 9 Current Objectives 9 Current Short Term Objectives 9 Current Long Term Objectives 10 Current Strategy 10 Advertising and Representative Value Proposition (“RVP”) 10 Product Line Simplification(PLS) 10 Strategic Sourcing Initiative 10 Enterprise Resource Planning System 11 Zero-Overhead-Growth 11 Restructuring Initiatives 11 SWOT Analysis 13 Strengths 13 Weaknesses 15 Opportunities 17 Threats 22 FINANCIAL INFORMATION 23 SUMMARY OF RECOMMENDATIONS 25 Technology and Social Media 25 Focusing on International Growth- the BRIC Countries 27 Brazil 28 Recommendations for Brazil 33 Russia 34 Recommandations for Russia 40 India 41 Recommendations for India 46 China 47 Recommendations for China 53 Conclusion ………….…………………………………………………………………………………….54 REFERENCES 55 AVON- A GLOBAL COMPANY FOR WOMEN EXECUTIVE SUMMARY/ABSTRACT Avon is a powerhouse in the beauty industry with over $10 Billion in sales and claims its stake as being the largest direct seller in the world. After performing extensive research on the company using multiple online tools, journals, articles and texts, we have collected enough evidence to make recommendations as to how Avon can continue its global expansion while still maintaining...
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...Case #1 Avon Products Inc. is the world’s leading direct seller of beauty and related products. which operatingIt operates in over 100 countries and but primarily operating in North America, Latin America, Europe, and Asia Pacific. Avon was very successful from 1920 to 2008, by selling and marketing its products through a direct selling approach that catered to stay-at-home moms and women who remained at home while their husbands worked. However, as women gained upwards mobility in terms of job opportunity in the modern age, this the direct sales approach began to produce inadequate results. As a result, the strategic management at Avon made a number of far-reaching decisions based off the rapidly shifting global market. Some of tThese decisions would inevitably doom the company into a decline in sales that it would never recover from. In this analysis, we will go overdiscuss the reasons these strategic mistakes were made, and talk about the consequences that followed. As mentioned previously, Avon’s primary customer base were women who stayed at home. As a result, much of their sales policy involvedfrom 1920-2008, Avon’s door-to-door salesmen who were immensely popular at the time and enjoyed great success. However, as socio-economic factors and the driving force that was the modern society gave more andchanged, more women took the chance to work outside their homes., Avon was forced to employ new methods to both sell their products and distribute their brand....
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...Company Background Avon Products, Inc. is a US cosmetics, perfume and toy seller with markets in over 140 countries across the world and sales of $9.9 billion worldwide as of 2007. Avon Product is a multi-level marketing company. The company's chairman and CEO is Andrea Jung, who was promoted to the position in 1999. She has completed a decade as CEO and is the longest tenured female CEO among Fortune 500 companies Avon uses both door-to-door sales people ("Avon ladies," primarily and a growing number of men) and brochures to advertise its products. B. Research Design and Methodology This paper is primarily to formulate and recommend general strategies for the Avon Company in terms of competition in cosmetic and beauty industry. This will determine the company’s situation in the market. II. External Analysis A. Economic Forces Avon is the world's largest direct seller. Being an Avon Representative means you’re selling an iconic global brand while running your own local business. With Avon, you are in business for yourself but not by yourself. Avon's field management, as well as your fellow Representatives, provide mentoring, training and support every step of the way. Powerful Brand Avon Representatives around the world sell four lipsticks every second. Avon has 90% brand recognition in most major markets. In fact, two out of five women worldwide purchased an Avon product in the last year. And more beauty products carry the Avon name than any...
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...CASE STUDY ANALYSIS AVON PRODUCTS, INC. Time Frame: 1999-2000 Submitted by; Koseki, Shota C. PROBLEM: • The main problem faced is the lack of experience and expertise by the CEO Andrea Jung where by company significantly lack of innovative strategy to attract customers and achieve organizational goal. Vision • "To be the company that best understands and satisfies the product, service and self-fulfillment needs of women - globally." Mission • The Global Beauty Leader we will build a unique portfolio of Beauty and related brands, striving to surpass our competitors in quality, innovation and value, and elevating our image to become the Beauty Company most women turn to worldwide. The Women's Choice for Buying We will become the destination store for women, offering the convenience of multiple brands and channels, and providing a personal high touch shopping experience that helps create lifelong customer relationships. The Most Admired Company we will deliver superior returns to our shareholders by tirelessly pursuing new growth opportunities while continually improving our profitability, a socially responsible, ethical company that is watched and emulated as a model of success. OBJECTIVE: • To serve families throughout the world with products of the highest quality backed by a guarantee of satisfaction • To render a service to customers that is outstanding in its helpfulness...
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...Avon Products, Inc. – 2013 A. Case Abstract Headquartered in New York City, New York, Avon Products, Inc. competes as one of the world’s largest direct-seller firm, and is the largest direct-seller of cosmetics and beauty-related items. Most of Avon’s sales come from its 6.4 million independent sales representatives (considered independent contractors) that serve in 110 countries. Avon employs 39,100 people and only 4,800 of them are employed in the USA. Avon generates 85% of their revenue from outside of the USA. Avon earned a net income of $517.8 million in 2011, but reported a loss of $38.2 million in 2012. The company has recently slipped in revenue due to currency rates and North American sales with a 13% drop in active sales representative. B. Vision Statement Actual: To be the company that best understands and satisfies the product, service and self-fulfillment needs of women – globally. Proposed: To be the company that provides the best foundation for women by offering a wide variety of products that appeal to any women’s needs and tastes. C. Mission Statement Actual (in summary due to length): 1) Leader in global beauty 2) women’s choice for buying 3) premier direct-selling company 4) most-admired company 5) best place to work and 6) to have the largest foundation dedicated to women’s causes. Proposed: Our mission as a company is to provide a unique portfolio of beauty, fashion and home brands to satisfy women globally. We encourage utilizations...
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...America 2.5 2.0 1.5 1.0 0.5 00 01 02 03 04 500 400 300 200 100 00 01 02 03 04 Number of Active Representatives Worldwide IN MILLIONS Capital Expenditures $ IN MILLIONS Year-end Market Capitalization $ IN BILLIONS 5.0 4.0 3.0 2.0 1.0 00 01 02 03 04 250 200 150 100 50 00 01 02 03 04 20 16 12 8 4 00 01 02 03 04 Global Beauty 23 25 Management’s Discussion and Analysis of Financial Condition and Results of Operations 25 Cautionary Statement 25 Overview 27 Critical Accounting Estimates 30 Results of Operations – Consolidated 35 Segment Review 42 Liquidity and Capital Resources 44 Risk Management Strategies and Market Rate Sensitive Instruments 46 Contingencies 48 Accounting Changes 49 Market For Avon’s Common Stock 50 Consolidated Statements of Income 51 Consolidated Balance Sheets 52 Consolidated Statements of Cash Flows 53 Consolidated Statements of Changes in Shareholders’ Equity 54 Notes to Consolidated Financial Statements 88 Management’s Report of Internal Control Over Financial Reporting 89 Report of Independent Registered Public Accounting Firm Contents 90 Eleven-Year Review Management’s Discussion and Analysis of Financial Condition and Results of Operations Dollars in millions, except per share...
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...RUNNING HEAD: Avon Products Inc. Case Analysis Taking Sides Avon Case Analysis MGT/578 - Strategy Formulation and Implementation December 18, 2006 Introduction – In the spring of 2000, Andrea Jung, president and CEO since November 1999 at Avon Products, Inc., faced the strategic decision of developing a growth strategy for a 115-year-old company (Pearce & Robinson, 2004). Not only was Avon experiencing a shrinking growth rate, but its earnings over the past few years had only risen in the low-single digits. Jung realized that not only had stagnant sales contributed to this but other factors as well to include changes in consumer spending habits, and limited distribution capabilities. Jung envisioned a grand strategy to get Avon moving in the right direction again. Her objective was to partner with JC Penney and Sears department stores to introduce new products in conjunction with direct selling. She presented her grand strategy to the Avon Operating Council and a bimonthly meeting. As a team, we will debate on whether Jung’s grand strategy is properly focused and directed or not optimal and needs to be refocused along with our unanimous decision. Side 1: Jung’s grand strategy is properly focused and directed (along with evidence to substantiate the arguments) Corina Andrea Jung President and CEO of Avon Products, Inc. has put together a grand strategy that is focused on improved product innovation...
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...and activation of strategies to achieve the objectives of an organization.” (Pearce II & Robinson, Jr., 2011, p. 1). Strategic management requires a strategic plan and a strategic plan requires research into the organizations vision, mission and value statements as well as an internal and external analysis of the company. The organization chosen for the strategic plan is Avon Products Inc. Avon was founded in1886 and is a well know company that sells beauty and beauty related products and has branched out into other aspects of the fashion industry. It has a presence in over 100 countries and had revenue of over $11 billion in 2012. Avon has received awards and recognition from different countries and organizations throughout the years in the key areas of empowerment, philanthropy, and sustainability ("Www.avoncompany.com", n.d.). According to”Www.avoncompany.com" (n.d.), " Avon's vision is to be the company that best understands and satisfies the product, service and self-fulfillment needs of women—globally” (para. 2). Avon’s mission statement focuses on six core aspirations they are continually striving to achieve. The six core aspirations are: to be a leader in global beauty, women’s choice for buying by being the top shopping destination, premier direct selling company, most admired company, best place to work, and to have the largest foundation dedicated to women’s causes ("Www.avoncompany.com", n.d.). Vision and mission statements are statements that clearly define...
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...AVON PRODUCTS, INC.: DEVELOPING A GLOBAL PERSPECTIVE INTRODUCTION “When the history of this organization is written,” noted James E. Preston, chairman and chief executive officer of Avon Products, Inc., in February, 1993, “a meeting last June in Florida of 60 managers from around the world may turn out to have been a watershed event. Our four days of brainstorming, debate and discussion brought to an end two years of research and examination of our basic businesses, and launched us on a new way of thinking about and managing those businesses.” Preston was excited about the new direction taking shape at Avon. The past several years had been difficult for the organization. Hostile takeover attempts plagued the firm during the 1980s. Avon sales volume in the United States and international markets showed little or no growth. Profit margins on many products declined due to price discounting by competitors. Turnover rates of sales representatives had increased. The corporate debt was referred to as “staggering” at $1.13 billion or 82.5% of total capital in 1988 (See Appendices A, B, and C). Preston was confident, however, that 1993 would be a year of improvement for the company, both in financial performance and in the progress made “repositioning ourselves as the woman’s company for the Nineties and beyond.” Avon’s research department informed management that corporate problems centered around image and market access. That shaped the agenda of the June, 1992, meeting in Florida: How...
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