Avon Products, Inc. This paper aims to present the two sides of the grand strategy by Avon in increasing its sales through the expansion of its distribution and capturing a large market in the industry. Avon Products, Inc. is a manufacturer and marketer of personal care products, including skin-care, hair care, color cosmetics, fragrances, personal hygiene, and a limited line of non-personal care products such as jewelry, apparel, decorative and home entertainment products and a provider of spa services. The company distributed its products primarily through the direct selling channel. It was considered the world 's largest direct seller of affordable quality beauty products. In Support of the Grand Strategy Selection by Avon In …show more content…
Many of the products offered by Avon satisfied these needs. Therefore the grand strategy to introduce its products to retail department stores where baby boomers shopped appeared to be a successful solution for the growth of the companies ' revenue. By diversifying its distribution channel, Avon would prevail against its competitors like Mary Kaye and L 'Oreal in increasing its customer base. Non-Support of the Grand Strategy Selection by Avon There is a different view of the grand strategy selection by Avon. Though the expansion strategy of Avon to retail stores is a great one, the stores targeted to distribute their products are not necessarily the best choices. In fact, the clientele for Sears and JC Penny are much older than the X & Y Generations. Expansion through those stores is not in alignment with the new target market segment. Since Avon would like to sell more upscale products, stores like Bloomingdales and Macy 's would be a better match. These stores segregate cosmetics specifically by brand and this will allow customers to view Avon 's products independently of competition. Internet success has also been a shortfall for the company. Late implementation gave an opportunity for other companies to take possession of a large share of this important market. This was a
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
(b) diversified its product portfolio; extend target customers and meet the variable needs of customers.
Being tasked with creating an evaluation of Dillard’s strengths, weaknesses, opportunities, and threats allowed for the development of a proposal that could help Dillard’s as a company. Unbeknownst to our group this information would be helpful in developing a proposal and portions would lead directly to our proposal. It will be discussed in the proposal analysis how our proposal is associated with the strengths, weaknesses, opportunities, and threats of Dillard’s and shed some light on how these areas of research led to the proposal of Dillard’s implementing beauty salons in their existing stores across the United States.
The following marketing mixes were created for “LUSH”®, to create a better opportunity for the brand to gain dominance and recognition in the market. Marketing Mix No.1 was designed for physical shops and stores, while Marketing Mix No.2 is directed for the research’s brand online shop. Both marketing mixes will allow employees end e-tailers to have a better approach to the market and provide favorable conditions and characteristics for the costumers.
Technology and Information Systems- the Company will continue to expand its e-commerce business in the future. Its e-commerce sales today gross over one billion. Its plan is to focus on continued profitability with online sales. Part of the plan included a full assessment of the online business to analyze the main areas of functionality and online improvements. It will also continue its Omni channel capabilities, which includes shipping to store and in-store pickup exclusively during the holidays. Due to the rapid growth of mobility, over 50% of its e-commerce sales
Avon: Innovations in Management is an astounding research paper that explores six published articles that report on results from research conducted online (Internet) and their relationship to management within the Avon Company. It also explores the methods and techniques used to create a highly successful business and methods used to demonstrate how to run a successful business. All actions have been defined and characterized within this research and have been accredited accordingly.
In 2005, Macy’s attempted to reposition its strategy to attract a new market according to product
The following pages focus on providing a strategic analysis of Sears Holding Corporation. The introduction reveals the issues that the paper addresses. The Company Presentation section reveals important facts in Sears' evolution. The Strategy Debates Section discusses theoretical issues applied to the situation of Sears. This is followed by the Strategic Decisions section that provides a series of recommendations that can help Sears improve its situation. The Implementation Challenges section provides important issues that can be considered challenges of strategic implementation.
The company has subsidized on market trends through interactive entertainment, internet of things, digital media, cloud services, and fostering effective partnerships and alliances. (10K) Their efforts have proven to be successful as the company ranks highest in speed, data, reliability, and overall network performance in the U.S.
The first Target store was opened in 1962 in Roseville Minnesota (Target through the Years, 2016). Since the first store, the company has grown into a major national retailer. Target offers low prices and visually appealing store layouts which not only keep their existing customers but also attract new ones. Target, like many companies, must remain competitive and relevant in comparison to competitors. One of Target’s main competitors is Walmart because they have low prices and a similar store layout. Target’s management team has identified a dilemma as Target does not offer similar services such as a salon, like Walmart. Target management sees an opportunity to gain more customers by adding salon services to their stores that includes hair, manicures/pedicures, facials and makeup application. The purpose of this research is to examine if adding a salon within Target stores will generate revenue and boost beauty department sales. The research will hopefully show that with the addition of these services Target will be able to increase its customer base while generating sales as the salons will also utilize products sold in stores to promote its beauty department. This will increase sales within the beauty department while also generating new customers.
The population in this area largely consists of seasonal agricultural people with o fixed income, and the availability of 2 million Avon representatives in Brazil brings the competitive edge in promoting and marketing the products. The use of beauty products is declining in this area because it’s of no use to the agricultural population. The rules they established in this area are based on local values than global values to overcome the
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.
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
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.