Avon Company

Read Ch. 4 of Basic Marketing. Read Ch. 9 of Basic Marketing. Read Ch. 10 of Basic Marketing. Read Ch. 17 of Basic

The cosmetics are now being sold in 143 different countries brining its profits up 41%. She gave Avon a revamp when she took over gaining trust, reliability, and gaining a competitive advantage over their

My thoughts are to have core values that will replace value statements. I believe five core values will be good, easy, and simple. One core value will be “We value people” this value should be respected by employees of the business. All people need to be value in order for the business to be held in high standards. The next core value will be

Companies across the world are determined to compete for the survival of their brands. The magnitude of success of the marketing and advertising strategies of a new or existing product is majorly depended upon the organization itself. As a matter of stated facts when an organization advertises its products in the market they first have to identify the relevant answers of some questions like what is the product aiming at? What benefits will the user seek by this product? How the organization plans to position itself within the market and what differential advantages will the product offer over the competitors. Because the bottom line of all marketing and advertising campaigns, is to provide the suitable collection of benefits to the end users of the product. Successful companies are usually recognized as iconic brands. Success of a

This step is aiming not only to clarify the goals of the organization but transferring those goals to numbers to be achieved in certain dates.

| |core values include the following: Excellent customer service, Taking care of our people, Giving back, Doing the "right" |

In addition, her strategy also makes Avon in a state of competition with other mass-market companies, but Avon did not have that capacity. For Jung, her high-end products line should be fit the situation, but in fact, in the specific implementation process, the strategy’s effect is discounted too much because they spend more money and time on the product and new marketing, but ignore their main customers-women.

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.

In addition to my mission statement, my core life values are the foundation of my mission statement, which allows me to uphold my promises and standards. These promises and standards will afford me the opportunity to improve the life of others and myself for the better. Therefore, there are four particular core values that I live by each and every day. The four values are commitment, compassion, dedication, and optimism. The first core value, commitment, embodies the theme of loyalty and honor. I work hard each day to live up to the promises that I make to finish tasks, help others, and meet the expectations that I place on myself or by others. The second core value that I live by is compassion because I wholeheartedly believe in being kind to everyone and helping those in need. The third value that I live by is dedication. Along with the previous two values, dedication is an important factor because being dedicated to someone or something allows a person to display that person’s character of being steadfast and passionate—even in the face of adversity. The fourth and final value that is a foundation for my personal mission is

Avon seems to be severely struggling with their overall corporate structure, but mainly in the financial department. A brief timeline explains how Avon went from the industry leading cosmetic supplier at $43 per share and great potential to now at $2.50 per share. The underlying reason for their downfall is difficulty weathering the currency exchanges since all of their revenue is from foreign nations. Other factors to be mentioned is their questionable corporate behavior, including bribery scandals, high debt management risk, low return on equity, lowering operating cash flow, and a continually disappointing historical stock performance. The strong indicator of the future of Avon can be found in a few of their key statistics: A beta of 2.57 is extreme risk and volatility along with a negative PEG ratio of -4.07 which is negative growth and lowering of value.

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

By 1928, the name "California Perfume Company" began to seem too local for the company leading trade in 48 states. New product line called Avon was introduced in 1929, and in 1939 the company name was officially changed to Avon Products Inc.

Under the direction of the new CEO, a new strategy was developed to reinvent Avon's image, improve customer satisfaction, and to increase profit margins and market share. Avon has gained an outstanding reputation as the best direct seller of beauty products. Through the continued efforts and achievements of its sales representatives, Avon is now known worldwide. Avon's core competence has mainly been its direct selling busniess model.

Additionally there is a huge growth in social media and online shopping which is very accommodating to the working class women. As the working class continues to expand more and more cosmetic companies are going to enter the affected communities and create further competition for Avon. These factors can drastically impact Avon and the way it does business.

Globally, Avon competes with large cosmetics majors like P&G, Revlon and Shiseido to sell its products. At the same time, it also competes with other major direct sellers like Amway, Mary Kay and Tupperware to attract its sales force. Avon has primarily grown by accessing new geographies and emerging economies such as Poland, Hungary, Yugoslavia and China where disposable incomes are rising and women seek an