Avon

Avon

Problems

  1. Avon does not have its outstanding core products compared with many of its competitors.
  2. Avon does not have strong criteria of recruiting sales representatives.
  3. What should Avon do to deal with the conflict between sales representatives and Andrea Jung’s plan to sell products through retail stores?
  4. An average age of total sales representatives is 48 which will affect Andrea’s strategies to enhance Avon’s brand image.
  5. How can Avon differentiate its online-based sales from the close competitor like Mary Kay?  
  6. Avon’s sales representatives are not efficient enough since 80% of its revenues accounts for 20% of total sales representatives.
  7. Since Avon’s products have been perceived as “My grandma brand” or “Not for me brand”, it might not be able to attract more target markets especially in teen markets.  
  8. Relying heavily on direct sales, high turnover rate of sales representatives who has difficulty reaching adequate sales level will significantly impact its sales force.
  9. The sales representatives might be frustrated with Andrea Jung’s strategy of increasing sales distribution by venturing with J.C. Penny, and they will be likely to leave the company which Avon will be at serious risk.
  10. It will be somehow problematic for Avon to continue cutting costs while maintaining to develop new, innovative products.
  11. The company financial status is highly leveraged.

Alternatives

  * Develop outstanding core products to make customers at least recognize what one Avon’s most outstanding product is.  
  * Expand Avon’s product line such as men’s shaving and baby care area under new brands in order to create new image.
  * Educate sales representatives to point out the need of introducing the new distribution channels.
  * Look elsewhere at every part of the value chain to try cutting out unneeded parts.
  * Develop affordable teen’s line of products.
  * Create the sisterhood...