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Avon Case Study Although Avon Products Inc is the worlds largest direct-selling organization and beauty product merchandiser the company must strategize to maintain its number one position in the future With operations in 143 countries divided into 53 markets and 4 regions North America Latin America the Pacific and Europe Avon is a global company that needs to develop a long-term global strategy However since sales performance demographics and culture are so different in their regions Avon should also have a regional strategy that is in line with its global one Avons direct selling method is extremely successful in most developing countries ironically Avon is declining in the region where it first experienced success - North America The reality is that the external environment namely culture and demographics of North America has changed so much that direct selling door-to-door is not an optimal distribution channel Avons target consumers women are increasingly working outside the home therefore many times when salespersons rings the doorbell nobody will answer Also the US population is increasing mobile meaning that both customers and salespersons are moving more frequently which makes it difficult to establish a loyal stable customer base Avon should benchmark the competition in North America analyze the best practices and restrategize to follow suit In addition Avon should import concepts that are working in developed economies such as Japan and Europe to North America My recommendation for Avon in North America is that Avon should strengthen its retail shop division based on the positive financial data given from 1999-2001 which shows that net sales in North American retail stores has increased from 34 to 85 and then to 139 million I applaud Avons alliance with JC Penny and suggest that Avon consider other marketing intermediaries because marketing intermediaries specialize in promoting selling and distributing products Even though capital expenditures for US retail is expensive as witnessed by an immense 73 million increase from
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