UNIVERSITY OF BOHOL

City of Tagbilaran
COLLEGE OF BUSINESS AND ACCOUNTANCY

Name: JULLIE CARMELLE CHATTO Year & Course: BSA-II MANAGEMENT 4N –

PERFORMANCE TASK 1

Title of the Case: Avon Product, Inc.

Time Context: February 2021

Perspective: Chief Finance and Strategy Officer

Central Issue:

Avon Products, Inc., is a global manufacturer and marketer of beauty and related
products, including cosmetics, toiletries, fragrances, jewelry, gifts, home furnishings, and
health and wellness offerings. Although Avon is promoted as the “company for women”
by providing business opportunities for women worldwide and supporting women’s
charities., it is still not on the border with its high-end competitors and other players in
the same industry as Avon in terms of product modernization. A fundamental challenge
for every company is to be able to adapt and blend in with the trends and diversification
of the generation to be able to continue its growth efforts on the international market.

Statement of Objectives:
1. To solve the adaptation issue of Avon products
2. To formulate a new technique that will enable Avon be on the edge in the industry
Areas of Consideration:
1. Adaptation issue: Avon products are mostly referred in some local communities as
“oldies’ products” or most of their products are known to adults.
2. Technique formulation: Avon should not overlook the areas helpful in modernizing
and diversifying products which is helpful for the company.

Alternative Courses of Action:

1. Vogue Innovation Strategy: Innovate products that are suitable for Generation Z and
Generation Alpha.
2. Formulate techniques that will determine ways in modernizing and diversifying
products.
 Decision Matrix:

Variables Alternative

Vogue Innovation Strategy Technique Formulation

Risks 4 2

Costs 4 3

Benefits 5 5

Ease of implementation 2 2

Total 15 (highest) 12

Conclusions:
Avon Product, Inc. has been in industry for over a century and has emerged as
one of the most successful beauty and cosmetic marketers in the world. Its main
problem is the adaptation issue, particularly in its product. A change in the company’s
signature product will bring a change in consumers opinion and preference about the
brand. Followed by the technique that the company will use which will help them with
the Vogue innovation strategy. Thus, this concern will require critical analysis and
decision to realize the business to continue its growth efforts on the international
market.

Recommendations:
Avon Product, Inc. should focus on innovating new product that will suit and fit to
the needs and wants of the new generation. In doing this, the firm can utilize the other
alternative course of action which is the formulation and implementation of strategies to
be able to come up with a new-fashioned product. This strategy can encourage
customers to choose and patronize the company over competitors who only offer a
generic version.

Action Plan: Vogue Innovation Strategy

Activities Objectives Division Persons C

Responsible
 Conduct research on the To study the Research and Market Est
preference of the preferences, trends, and Development Researchers P15
Generation Alpha fad of Gen Alpha Department
customers
Evaluate existing product Operation Product
to review and be amend To determine existing Department development
product to modify and leaders
specialize

Produce and innovate To innovate products Production Design council Est

products suited for the that fit customer Department P8
current generation preference and new Product manager
following the customer trends
preferences and the Production
present-day trends committee

Launch the Gen Alpha To launch newly Sales and Launch manager Est
fitting product to the innovated product Marketing P1
market. Department Sales and
Marketing Team

Gantt Chart Year 2021 - 2022