Case Study on Avon

Topics: Avon Products, Edward Scissorhands, David H. McConnell Pages: 11 (2845 words) Published: June 16, 2013
Avon is one of the diversified cosmetics company in USA and they have implemented several strategy in order to attract more customers for their products. They have the best strength i.e. channel of distribution, loyal customers and the marketing segment which contribute more on the success of sales. However, they have certain problems such as bad-debt, new trend for green products and their not so good homey image. Avon need to implement the strategic plan laid out in this study if they are going to remain relevant to their loyal customers and simultaneously keeping a good reputation and making their name synonymous with glamorous image and good quality products.

1. Abstract 1
2. Background 3
3. Internal Operations 4
4. Cosmetics Industry Analysis 9
5. Competitors 9
6. SWOT Analysis 10
7. Strategic Plan 13
8. Conclusion15
9. Bibliography 16

Avon Products Inc. founded by David H. McConnell in 1886 under the name of The California Perfume Company (CPC). Its first office located in New York. By 1906, CPC had 10,000 representatives and selling 117 articles in 600 styles and package sizes. Starting 1914, CPC expanded its business to outside USA i.e. Montreal, Canada. In 1937, David Jr. became the president of the company and he changed the name to Avon Products Inc. in 1938 after the British town, Stratford-upon-Avon. Among the earliest products offered under the brand name Avon were a toothbrush, talcum and a vanity set. Now, the company home office moved to Fifth Avenue, New York. Since then, after 1950s, the company had expanded its business to Puerto Rico, Venezuela and in 1970s, expanded to Japan. In 1979, Avon purchased the jeweler Tiffany’s to add varieties to its line of products. In 1990, Avon became the first manufacturer company to stop using animal testing in its products. Now, Andrea Jung has become the first woman to be Chairman in 2001 and CEO of Avon since 1999.

Avon Products Inc. is a cosmetics, accessories, and home products manufacturer and marketer. It has a greatly expanded product line that includes jewelry, wearing apparel, and home decor items. It now operates in North America, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and the People's Republic of China. It has sales operations in approximately 100 countries and distributes products in approximately 44 countries. Avon Products Inc. is traded on the New York Stock Exchange under ticker symbol AVP.

In addition to its corporate pursuits, the Avon Corporation is involved in philanthropic causes. The Avon Foundation for Women, an accredited public charity, is the largest corporate-affiliated philanthropy for women in the world. Avon is committed to helping women achieve their highest potential of economic opportunity and self-fulfillment by empowering them through scholarships and support of other forms such as educational and occupational training and advancement. Women's empowerment continued to be the focus through the early 1990s when Avon began to increase its philanthropy with a new emphasis on breast cancer; the Avon Foundation still awards scholarships for Avon Sales Representatives and their families, as well as for the children of Avon associates. The Avon Foundation is currently focused on two key causes: breast cancer and domestic violence. The five values of Avon are: Trust, Respect, Belief, Humility, and Integrity.

2.1.Vision Statement
To be the company that best understands and satisfies the product, service and self-fulfillment needs of women globally.

Proposed: To be the solution to our customers all around the world who are searching for ultimate beauty, health and self confidence.

2.2.Mission Statement
1. The Global Beauty Leader - We will build a unique portfolio of Beauty and related brands, striving to...
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