Shameel Irshad

17u00022
Section E

Avon Case
Question 1: You are Jawaria Jee. What would you do? Would you accept the challenge? Justify
your decision?

Answer: Having read the Avon Case I was able to reach the following conclusion. Since Avon is
a luxury beauty brand and having established itself in the international market following points
can be used to make the decision. Pakistan is currently plagued by the globally recognized
pandemic, Covid-19. It has basically affected people from all segments of the society with
people having to face budgetary restriction, due to the fact that every household wants to secure
food security. Avon intends to target the Middle Upper-Class Families, however the probability
of establishing itself without having to put up a fight is very minimal in present circumstances.
Pondering on other facts if we notice that although certain incentives are being provided
by Avon, inclusive of travelling vehicles. However, Jawaria JEE would have to afford the
expense of hiring female reps on her pocket. Secondly being an international luxury brand Avons
main competitors would be Sephora and Ulta beauty, both of these being already well
established in the Pakistani Market. As per the 3000 attractive goody bags being provided by
Avon to potential customers, let say even if the potential customers from middle class families
make purchases, they’ll likely go for the Cat C Pink Box costing 10k per unit. Considering that
those people who are provided with the Goody bags make the purchase, we are seeing around
46.15% ((3000*10,000)/65Million) of the total target of sale (65 Million) being recovered by
Avon. This would also probably induce word of mouth in the target market. However,
considering the fact that certain proportion of Avon target customers would buy the products in
category A and B, we can assume that the total units sold might amount to 65%-70% of the
original total target of sale.
Coupled with that another concrete factor is that Pakistani Government imposed a duty of
50% on all cosmetic items. Secondly as if Jawaria Jee accepts this challenge she will be at loss as
the government might be considering lock downs again as Covid-19 second wave approaches.
Not having enough social gathering might make the targeted customers to postpone their plans of
purchase as of now, thinking its better to wait for some time and then buy it. However, Jawaria
Jee would be at loss because of the fact that she has only 180 days from now onwards to meet the
target of sales. Another factor can be off the increasing prices of commodities in Pakistan. As
I’ve stated earlier that food security would be the utmost concern of people, coupled with
increasing prices, middle class families would likely refrain from buying luxury items at such
troubling and uncertain times.
 Hence keeping all these factors in mind. Jawria Jee as of now should not go into a
partnership with Avon.