COMPANY: Avon Products

TIME CONTEXT: 2017

1. BACKGROUND OF THE STUDY:

1A. COMPANY BACKGROUND:

Avon, the company for women, is a leading global beauty marketer they began
operations in 1886, when, door to door salesman, David McConnell took the decision to
sell. Their product lines are Beauty, Fashion and Home. Beauty conducted in color
cosmetics, fragrances, skin care and personal care. The names of the brands are: Avon
Color, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals, and Mark. The
products are not only for women but also expanding to men, displaying Avon’s ability to
notice the changing trends of recent times. Fashion brands are: fashion jewelry,
watches, apparel, footwear, accessories and children’s products. The home consists of
gift and decorative product, housewares entertainment and comfort products and
nutritional product.

1B. CASE BACKGROUND

The business environment is highly competitive and the success depends on a strong
business strategy and long range planning. Both entrepreneurs and their employees need to
make sure that the business is in the front line where quality of customer care is the main
focus and ensure customer satisfaction by offering a variety of products. Like any business
industries, the beauty industry is highly competitive. Avon, the world largest leading direct
seller confronts tight competition from various competitors such as Mary Kay, P&G, Arbonne
and L’Oréal.

Avon historically had enjoyed great success as a leading global beauty company. However,
this world largest beauty care products is now suffering from range of strategic and long
range planning issues. Strategic and long range planning issue is the fundamental challenge
faced by the company which required attention and careful decision to resolve in order to
achieve the business goals. However, identifying the strategic issue is one of the most
difficult steps to be taken in strategic and long range planning. The strategic issues
confronted by the company can be summarized as Avon is struggling to recover from poor
management strategies and lack of long range planning that led to the downfall of the sales
of Avon.

2. STATEMENT OF THE PROBLEM:

2.1 The entry of highly competitive company with advance usage of technology and
complex strategies poses a threat to the company’s sales that might lead to losing
major shares in the market

2.2 With a high threat of product substitute, how will Avon products compete in its
industry and stay as one of the leading beauty product line?
3. ALTERNATIVE COURSE OF ACTION

3.1a. Improve the strategies and long range plans that would make the company adapt and
compete to its current environment
3.1b. Develop marketing aspect while utilizing the use of modern day technology

3.2a. Improve brand image by adding new and unique features to its products
3.2b. Lowering prices of new products or even existing products can help launch new
product lines. Launch a new product at a lower price to be raised later can help
create a surge of initial sales
3.2c. Diversification and expansion to the other industry

Conclusion:

Recommendation:
Avon can continue its global expansion while still maintaining long and short term company
objectives and staying within core competencies. We believe Avon can and should expand
strategically while using the power of the technology and the Internet to increase business
through social networks.
Improved marketing is an excellent way to boost sales and promote the brand. Avon is already
the market leader and people are aware of the brand. However, through more aggressive
advertisement campaigns, sales promotions, mail-in discounts or coupons, increase internet
presence and bill boards. Avon will be able to further heighten brand awareness, build customer
loyalty and create appeal for our products by new and existing customers.