Case Study on Avon
ABSTRACT
Avon is one of the diversified cosmetics company in USA and they have implemented several strategy in order to attract more customers for their products. They have the best strength i.e. channel of distribution, loyal customers and the marketing segment which contribute more on the success of sales. However, they have certain problems such as bad-debt, new trend for green products and their not so good homey image. Avon need to implement the strategic plan laid out in this study if they are going to remain relevant to their loyal customers and simultaneously keeping a good reputation and making their name synonymous with glamorous image and good quality products.
TABLE OF CONTENTS 1. Abstract 1 2. Background 3 3. Internal Operations 4 4. Cosmetics Industry Analysis 9 5. Competitors 9 6. SWOT Analysis 10 7. Strategic Plan 13 8. Conclusion 15 9. Bibliography 16
1. BACKGROUND
Avon Products Inc. founded by David H. McConnell in 1886 under the name of The California Perfume Company (CPC). Its first office located in New York. By 1906, CPC had 10,000 representatives and selling 117 articles in 600 styles and package sizes. Starting 1914, CPC expanded its business to outside USA i.e. Montreal, Canada. In 1937, David Jr. became the president of the company and he changed the name to Avon Products Inc. in 1938 after the British town, Stratford-upon-Avon. Among the earliest products offered under the brand name Avon were a toothbrush, talcum and a vanity set. Now, the company home office moved to Fifth Avenue, New York. Since then, after 1950s, the company had expanded its business to Puerto Rico, Venezuela and in 1970s, expanded to Japan. In 1979, Avon purchased the jeweler Tiffany’s to add varieties to its line of products. In 1990, Avon became the first manufacturer company to stop using animal testing in its products. Now, Andrea Jung has become
Avon is one of the diversified cosmetics company in USA and they have implemented several strategy in order to attract more customers for their products. They have the best strength i.e. channel of distribution, loyal customers and the marketing segment which contribute more on the success of sales. However, they have certain problems such as bad-debt, new trend for green products and their not so good homey image. Avon need to implement the strategic plan laid out in this study if they are going to remain relevant to their loyal customers and simultaneously keeping a good reputation and making their name synonymous with glamorous image and good quality products.
TABLE OF CONTENTS 1. Abstract 1 2. Background 3 3. Internal Operations 4 4. Cosmetics Industry Analysis 9 5. Competitors 9 6. SWOT Analysis 10 7. Strategic Plan 13 8. Conclusion 15 9. Bibliography 16
1. BACKGROUND
Avon Products Inc. founded by David H. McConnell in 1886 under the name of The California Perfume Company (CPC). Its first office located in New York. By 1906, CPC had 10,000 representatives and selling 117 articles in 600 styles and package sizes. Starting 1914, CPC expanded its business to outside USA i.e. Montreal, Canada. In 1937, David Jr. became the president of the company and he changed the name to Avon Products Inc. in 1938 after the British town, Stratford-upon-Avon. Among the earliest products offered under the brand name Avon were a toothbrush, talcum and a vanity set. Now, the company home office moved to Fifth Avenue, New York. Since then, after 1950s, the company had expanded its business to Puerto Rico, Venezuela and in 1970s, expanded to Japan. In 1979, Avon purchased the jeweler Tiffany’s to add varieties to its line of products. In 1990, Avon became the first manufacturer company to stop using animal testing in its products. Now, Andrea Jung has become