There is still room to expand in this market. For the fear of alienating its labor force, Avon downplayed the importance of developing the e-business. The proposed plan will indeed create an additional distribution outlet and cater to this market segment. The company ran the risk of possible further reduction of its brand name.
Also her approach is flawed.
Susan Kropf reconfigured the value chain thereby cutting costs of non-value adding areas. Due to the direct selling business model, there is an extremely large number of buyers.
This represents a vast market of which Avon has only begun to cover. An attempt she acknowledges was not one of her more successful endeavors. Kiosks were admittedly a risk. These stores also lack cosmetic customers. Some of these challenges were addressed successfully and others were not.
She was in customer convenient strategy in beauty and financial services. Examples of this include the hair care product line. Why was it time for Avon to fundamentally change direction? Avon has lost loyalty and brand recognition as a result of its decision to diversify into different industries and different product lines.
It achieved record sales for Avon and led to the development of other successful lines of business. Kiosks will have minimal start up cost and lower overheads. It is too little stretch because the objectives were not set boldly and aggressively high.
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. This vision is shared by all employees and representatives of Avon priming the company for continued success.
Her approach is sensible in light of what competitors are doing and the position they hold in the market place. Jung understood the desires of customers and needs of sales agents. It is clear and evident; the cost will be a further extension of the existing internal problems that Avon faces.
This ideal would be synergistic and build upon their present success. When Perrin resigned because of his lack in direct sales limitation, Andrea Jung need a fundamental change in direction.
Avon markets to women around the world through 4. Jung suggested promoting certified Beauty Advisors in department stores and increased incentives for sales representatives. Customers do not pose a threat of integrating backwards, because it would not be easy for women to develop their own make-up, perfume or skin care products.
The focus should be on existing internal structures to build, create and advance current product lines. 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.
What has she done well? 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.
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.
During the initial stages of this strategy, Avon started to remove itself from its core market of selling to women. Andrea Jung has clearly directed the successful transformation of Avon Products Inc. Andrea Jung represents a great strength to Avon Products Inc. 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.
The company sells and markets its products through a combination of direct selling, marketing by independent Avon representatives, and via its consumer Web site, avon.
Strategy provides opportunity for sales representatives to increase their income and greater career opportunities through sales leadership.
Andrea listened to the customers and grew global beauty category sales by new product development, sampling and more up-to-date advertising.My assessment of Andrea Jung’s performance as chief strategists at Avon products is that she has done excellent job.
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.
Andrea Jung, president and Chief Executive Officer at Avon Products, Inc. since Novemberis faced with the strategic decision of developing a growth strategy for a year-old company in the spring of (Pearce and Robinson,p. ). View Andrea Jung’s profile on LinkedIn, the world's largest professional community.
the former Chairman and Chief Executive Officer of Avon Products, Inc. and longtime champion of women’s Title: Microfinance and Poverty Alleviation. Apr 17, · Answer: My assessment of Andrea Jung’s performance as chief strategists at Avon products is that she has done excellent job.
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. chief lieutenants, Andrea Jung and Susan Kropf.
• Under Perrin, the company’s business process reengineering efforts freed more than $ million, this money was used develop new products, increase advertising, increase dividends and buy back outstanding shares. • Perrin and Jung established Avon’s Global Development Center.
My assessment of Andrea Jung's performance as chief strategist at Avon Products is that she has done an excellent job. Her first task as CEO was to hit the streets of her neighborhood, ringing doorbells, to better understand the desires of customers and needs of sales agents.Download