Avon Case Study

They are women with incomes of $25,000 or more a year that care about their appearance and spend money on beauty products. They tend to have curly or frizzy hair. They are women that tend to use beauty salons and keep up with fashion and fashion trends.

Avon Corporation In order to begin to understand the industry in which Avon functions as well as the specifics around the introduction of the new EAS drive, I used the 5Cs analysis to outline the company’s current situation. Situation Analysis via the 5Cs:

Bath & Body Works (BBW) enjoyed a successful decade after its inception in 1990. However, over time their limited offering of products was sending their customer base to other retail chains - either trading up to better brands or trading down to cheaper prices. As demand for their product seemed to dwindle, they needed a way to increase their customer base. An increase in

Growth and earnings slowed in the 1990s as the company’s costs increased, value-added services and solutions were not offered, new products were slow to market, and the products were not

Burt's Bees has the benefit of using every single natural product yet can offer a wide range of things that are sound and stylish. Further, Ocean Cosmetics’s conveyance and marketing are frail. Its products are sold in just a couple of outlets in one US area, the Northwest. Another worry identifies with Carol's capacities to grow her business. In the event that she chooses to accentuate development as an objective, the business could do well. In any case, then again, she has no past encounters (and maybe no instructive foundation) with overseeing development. These weaknesses are frequently connected with little, new ventures like Ocean Cosmetics. Another weakness is that Carol does not presently have a patent on her cream. At last, despite the fact that Carol's relationship with Sage Shipping can be consider a quality, it can likewise be a weakness if, for instance, Sage were to close and leave Ocean Cosmetics without a supplier for a significant number of its ingredients and compartments. Given different sellers exist for makers of skin care products, Ocean Cosmetics would have the capacity to distinguish different suppliers yet it would be a tedious

The industry we have chosen is the department store-retail industry. Within this industry, we have chosen the department stores of JCPenney and Macy’s. We find this industry, as well as these two companies, interesting from a strategic perspective. JCPenney has recently undergone a massive strategic restructuring in regards to its pricing, brand offerings, and store layout, pushing it away from the typical department store strategy of discounts and coupons. Its new strategy has become much closer to Wal-Mart’s strategy of every day low prices. Macy’s, on the other hand, has restructured with a push from the economic

This beauty retail store SWOT Analysis includes several strengths and weakness that it has currently developed in its structure. However, there are a few opportunities that this company should take advantage to seize the moment and there are a few threats in which they should find new ways to overcome

Before ULTA entered the beauty market in 1990, a woman would have to go to multiple stores to find cosmetic, fragrance, and salon products. ULTA has become a woman’s one-stop-beauty department store, they house everything from brands such as Revlon to Estée Lauder, products such as nail polish to specialty shampoos, and they even offer makeup and hair services. In this industry of beauty there are many competitors and companies must stay ahead of their competition, ULTA has done this and more. At the same time they have to foresee any future problems while they continue to grow and find ways to overcome the barriers. Being a lover of cosmetics investing in a company such as ULTA would seem a

Canada Goose has experienced steady organic growth as a niche brand, selling their product through independently owned stores. By June 2008 it was selling product in 28 different countries across North America and Europe plus two authorized online retailers. Now it has a significant opportunity to further cement itself as a market leader by placing its product with a national chain. Initially, Canada Goose considered offers from two national chain retailers. One offer came from a Canadian chain called Asmuns Place. Another offer came from Levene’s Menswear. Table 1 provides a high level overview and compares these two offers.

Mary Kay, Inc. was founded in 1963 by Mary Kay Ash as Beauty by Mary Kay. Mary Kay is a direct sale type of company, with “independent beauty consultants” that sell and market Mary Kay products (2012 Corporate Fact Sheet). Mary Kay Ash operated with the mindset of “God First, Family Second, and Career Third,” and always adhered to the golden rule, do to others as you’d want them to do to you (Kerin, Et. Al). Mary Kay, Inc. first entered the global market in 1971 with its expansion into Australia. Today, Mary Kay is represented in over 35 global markets (2012 Corporate Fact Sheet). Mary Kay is challenged to ensure brand consistency across the world, despite differences in cultures from market to market. As such, Mary Kay would be considered a transnational firm. They tie the similarities between each market together while celebrating the differences in each market. This strategy allows them to offer Mary Kay’s core product lines globally where they’re most desired. In China, one of their most successful markets, Mary Kay applied their existing corporate message of women empowerment to attract Chinese women that otherwise wouldn’t be able to start their own business. Where China differs from the United States market is in product need. Chinese women don’t typically wear a lot of makeup, so

Estée Lauder’s distribution network consists of salons, specialty stores and high-end department stores. This is potentially limiting its reach to customers. A limited distribution strategy tends to increase dependency on specific channels which could be disastrous. For instance, Macy’s is Estée Lauder’s biggest client, accounting for nine percent of total sales and nearly forty percent of sales in the United States (Terlep, 2016). Macy’s is also aggressively closing stores.

The sales revenue decreased from 9 million to 6 million in 12 years and also they incurred operating losses.

The Clorox Company’s acquisition of Burt’s Bees in 2007 allowed the company to expand into a natural product business platform which fit into their Centennial Strategy. This product line though was marketed as a stand-alone product and was not associated with the Clorox brand name. Based on Exhibit 9 of the market study, the market share that Burt’s Bees held was 7.9% which was only 2.3% shares away from the market leader Aveda. Even though this product line was ranked #4 in the natural personal care brands, it only accounted for 4% of Clorox’s total sales. As pointed out with Brita, sales soften in this category during times of recession.

As stated in the case, the ban on door-to-door selling was lifted in 2005. Avon Products and Amway are taking advantage of this by using door-to-door selling as a method of marketing their products. The main advantage to using door-to-door selling in the sale of cosmetic products is that it is a cheap and cost effective method of getting products across to the customers. Companies do not incur the cost of setting up physical stores and hiring dedicated sales person when using door-to-door selling as the products are sold directly from the manufacturer to the customers via one level of sales representatives. Illustrating the success of this method of sales, Avon Products had already recruited 350,000 sales representatives by the end of 2006. We can assume that most of these sales representatives are being paid purely on a commission basis and Avon Products does not incur any other additional or fixed cost in employing these sales personnel thus making it a very cost effective method of selling products. This and the lack of intermediaries between the manufacturer and the customer mean that the

Many cosmetic brands are popping up recently, perhaps, due to the increasing consumers of products that beautify and enhance the physical appearance of a person. Even though the market is already full of the said cosmetic brands, the company L’Oreal Groups could still be considered as the leading supplier of cosmetics and hair-color. This study is a brief overview of the marketing concepts and strategy of the said company. The company profile will be presented to be able to give a clear view of the market to which the company belongs to. An internal and external (SWOT) analysis of the company will also be provided in this paper. Another area will be specifically devoted to