CASE STUDY

Avon Case Study

Avon Case Study

Foreign operations Vs Home operations

They are more dependent on the International exposure of their product lines. Global Strategy for Avon Products is(Berglind ,Nakaa,2005):

Growing global sales in beauty through the investment held in: Development ,

Advertising and sampling of new product. Development of exit plans for products with low profitability.

Provide more opportunities for sales representatives, through leadership in sales, improved incentives and training in sales skills and internet.

Reduced levels of inventory and improved service to the representatives. Operations outsourcing "non-core"

Launch of the "AVON WELFARE"

Environmental Factor affect on Avon

The new president of And Avon CEO Andrea Jung also said the company hopes to profit Wall Street projected $ .56 per share for the fourth quarter, and reaffirmed its adolescent target market for growth in 2000. Avon said it will spend $ 80-90 million next year in its new campaign advertising. This represents almost a 50% increase from what was spent in 1999. Be spent approximately $ 40 million in America, or more than double the budget of this year. The campaign, called "Let's Talk", will focus on the unique relationship of Avon With women around the world and their latest product innovations beauty. The television and print campaign aims to launch in the United States and five markets international for the first quarter and will cover a total of approximately 25 markets during the year, to pursue market opportunities in China and Europe Oriental. "One of our strategic priorities in our business is to reposition the Avon brand through a larger investment in consumer promotion, "said Jung(Barone et.al,2007).

Global Recession and Avon Competitive Advantage

In my point of view, direct selling turns out to be one of the biggest competitive advantages for them during the global recession. Based on the successful direct sales approach designed by Persis Foster Eames ...