Avon
As of November 1999, Avon was experiencing economic troubles. Avon’s growth rate of annual sales was less than 1.5 percent during the greatest economic boom in history. This prompted a transfer in leadership which appointed Andrea Jung as CEO. Since that time, Avon has experienced remarkable growth.
Under the direction of the new CEO, a new strategy was developed to reinvent Avon’s image, improve customer satisfaction, and to increase profit margins and market share. Avon has gained an outstanding reputation as the best direct seller of beauty products. Through the continued efforts and achievements of its sales representatives, Avon is now known worldwide. Avon’s core competence has mainly been its direct selling busniess model. This led Jung and the management team to implement a Sales Leadership program that provided incentives to acquire, train, motivate, and retain the number of active sales representatives it needs to sustain significant growth. Avon also has a representative development program that focuses on the professional training of representatives. This enables the representatives to provide valuable information on Avon brand products. Avon also keeps its superior customer service in other ways of distribution such as the Internet and in the department store sales by having a timely and correct order delivery, one on one information exchange and personalized professional advice.
Forces of Competition
Rivalry among competing sellers in the CFT industry is strong. The creation of innovative products is crucial to success. This industry focuses on continually developing cutting edge products using the latest science and technology. Rivalry is stronger when customer’s costs to switch brands are low. Switching costs in the CFT industry are very low, due to the large amount of different brands of similar products. This cost is due to the higher number of competitors in the CFT industry and their tendency to copy new products in order to stay competitive.
Another Avon objective that aims to alleviate pressures coming from competing sellers includes consists of reinventing their antiquated image. The organization had been a major player in the CFT industry for decades. However, Avon’s management took a reactive approach and failed to evolve with the changing times. Because the CFT industry centers on mage conscious consumers, Jung d...
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...na. Also, because the only sales in China are generated through retail outlets, Avon should further develop their Beauty Advisors training.
Europe should also be a continued focus for Avon. Industry leader, L’Oreal’s attributes 50% of their total sales to the European market. Avon has had a successful growth rate in Europe but only 23% of the total 2003 sales came from Europe. There is still room to expand in this market.
Based on one of the industry’s key success factors, product innovation, Avon should focus even more resources on R&D especially in the areas of anti-aging products and teen products. Because 23 million teenagers have an average weekly disposable income of $85, Avon should continue with innovative teen marketing such as the current “mark” brand but also work on products for problem teen skin.
Being ahead of the industry in introducing new products combined with the company’s already strong market position could further improve Avon’s brand equity and therefore revenues. In particular, Avon should continue to integrate sales representative into all aspects of sales. This is Avon’s own key success factor and what sets them apart from their competitors.
Yeomans, M. (2012, November 7). Global beauty market to reach $265 billion in 2017 due to an increase in GDP. CosmeticsDesign.com USA. Retrieved July 1, 2014, from http://www.cosmeticsdesign.com/Market-Trends/Global-beauty-market-to-reach-265-billion-in-2017-due-to-an-increase-in-GDP
Rivalry among established firms is fierce. There are several factors that illustrate this: established market players (6.1). The product is highly standardized and the switching costs of the customers are low. Players are aggressive (6.2)
Footlocker’s marketing plan entails selecting the target market, integrating the best marketing tactic to reach as many customers as possible, and customer retention initiatives. Essentially, this customer-driven marketing blueprint is classified as the marketing concept, which does not rely heavily on promotions to procure sales. Instead, the company learns to pinpoint what the customer wants before he or she does, to accommodate existing and future needs. Moreover, within the past five years, a new store entitled House of Hoops has made its debut in the same mall as Footlocker, which has caused the veteran shoe store to experience a decline in sales. This suggests that Footlocker may need to modify its sales strategy to help the company attract more customers to the store. “House of Hoops has a variety of shoes, and a large store front,” stated the interviewee, “customers are drawn to the store because it is new and possesses a
She taught at universities both in Australia and the United States. Connell highly disagreed that the ideas about what established masculinity are ethically definite. In other words, masculinity is important to whom is referred to. For example, “if women are seen as weak, passive and emotional, then men are supposed to be strong, aggressive, and rational” (Seidman, 221). Additionally, masculinity is based on how people interact with each other in which correlates with their race, class, and sexuality. With this said, Connell said, “to recognize diversity in masculinity: relations of alliance, dominance and subordination… This is a gender politics within masculinity” (Seidman, 223). To point out Connell’s theorizing masculinity, she believes that diversity defines masculinity has its own relationships with authorities. In our text, Seidman gave a brief example of how the roles carry out to the social authority such as President, Senator, CEO, General, media executive, or surgeon. It is stated that while there are many senators, executives, or CEOs who are women, it is definite identify as masculinity because people think those high authorities is only for a male role. In our text, Connell has mentioned that “every society has a dominant or a “hegemonic” type of masculinity” (223). This means that she believes men has the power or control type of their masculinity in the
Based on the information provided in the L’Oreal case, Yue Sai struggled to grow and capture additional sales in the high-end Chinese cosmetics sector. In the past, L’Oreal attempted to position Yue Sai in several different ways which can be viewed as detrimental to the company image, showing uncertainty as the company struggles to see which positioning strategy will stick. The most recent positioning presented in the case, which desires to “deliver Yue Sai’s longstanding brand promise that ‘Nobody knows Chinese skin better than Yue Sai’”, allows the highest probability of success for the company capitalizing on countless fresh trends in Chinese cosmetics (6). The positioning statement would reflect this new strategy: “For the modern Chinese woman Yue Sai offers a line of high-end cosmetics. Unlike other high-end cosmetics Yue Sai combines traditional Chinese medicine and sophisticated technology adapted to the unique skin type of Chinese women.” Yue Sai saw reasonable success and hope in the new Vital Essential line which utilized traditional Chinese medicine and, therefore, resulted in above average repeat purchases. Continuing to focus the strategy around traditional Chinese medicine should benefit Yue Sai considerably. Another suggested strategy would be to wholly reposition Yue Sai, however this is ill advised. As stated in the case, Yue Sai tried numerous different positioning strategies, which ultimately provided no clear path strategy. Repositioning would show uncertainty in the company, lowering brand value in the eyes of the consumer.
L’Oreal is the largest beauty company in the world and in the past 100 years that it has expanded, it has supplied to 130 countries with offices in 58 different countries. This global company is the number one premium cosmetic product in the world today and has taken the core and beauty of people’s everyday lives since 1907, the beginning of L’Oreal. The superior leadership of a guy named Eugene Schueller started this strategic company with basic products such as hair care and also the first man-made hair color product. Five years later you could find these products in Austria, Italy, and the Netherlands. In 1934 Eugene invented the first mass market of soap less shampoo and this led the success of L’Oreal in the country of Europe which soon recognized them as the leader in body care and hair coloring products. Finally soon after World War II L’Oreal moved into the United States and the company seemed to change. When L’Oreal expanded the competition was more involved and more growth was needed in order for the company to be more successful. With problems like this, the strategy and planning that has been applied in L’Oreal has been huge for the success of the company. L’Oreal realized they needed to expand in other fields of the beauty market and target markets in order to stay alive and successful. This would mean that L’Oreal would need to acquire other companies as part of their expansion and through this they have kept the constancy of the leading company with acquisitions of many small companies. Finally in the 1980s they started their globalization into new markets all around the globe by acquiring new companies that would form the cosmetics that we know today. Although the role of acquisitions has never been the main focus of the company, internal growth and strategy was the number one reason for L’Oreal becoming such a big name. The main strategy was to adopt new companies and expand it from within believing that the brand could be taken globally and benefit their overall brand portfolio. The main role of acquisitions was to increase and lengthen the internal growth rate. L’Oreal started acquiring companies from the beginning of their name. They started with the basics of their own brands such as L’Oreal Professional, L’Oreal Paris, Kerastase, and Club des Createurs de Beaute.
Under Andrea Jung's direction, Avon is focusing on developing nations especially China. Many developing countries are more receptive to direct selling by women since jobs with Avon are opportunities for women who want to be independent in the male dominated cultures. Avon has also recognized that the demographics has changed and recruiting younger women to sell to the younger customer base.
Clarissa Dalloway, the central character in Virginia Woolf's Mrs. Dalloway, is a complex figure whose relations with other women reveal as much about her personality as do her own musings. By focusing at length on several characters, all of whom are in some way connected to Clarissa, Woolf expertly portrays the ways females interact: sometimes drawing upon one another for things which they cannot get from men; other times, turning on each other out of jealousy and insecurity.
We live in a world where society has defined masculine and famine characteristics and features that have influenced our culture. Men are seen as:
More than just a sale promotion strategy Lisa and her team have built lasting relationships
After studying the cosmetic market we can identify a series of needs in this market:
I think due to Avon’s extensive history that they unquestionably have the capabilities to become a top seller, however I think only focusing on direct selling is hurting the organization. I think direct selling should still be Avon’s strong point, however Avon needs to seek different business opportunities. I also feel that Avon is managing their resources ineffectively. “The company manufactures and packages almost all of its beauty products.” (Coulter, 2013, p. 92) The issue is Avon purchases their raw materials
Motivate the Avon business to reach its goals of promoting its products and gaining sales through advertisements, sales competition, participating in conventions and endorsing franchise. Advertising is the key to attracting consumers and the outcome is high sales. Such advertisement is done through media (television), mail, or the internet. The more awareness from the public of the company the more likely to attract more buyers and the outcome is high sales.
On the following report, customers’ needs analysis, five forces analysis and complementors, companies’ performances as well as the potential impacts on expected changes in the cosmetics retail industry will be discussed in detail.
Sex and gender are attributes to our identity. Sex describes the physical and biological factors we are born with, for example male or female genitalia, as quoted from blackadder “A boy without a winkle is a girl” (Elton and Curtis 1998). Whether we have oestrogen or testosterone hormones also tells us if we are man or woman. Gender however is in relation to stereotypes of masculinity and femininity, and expectations of what characteristics men or women should portray. Anyone given the opportunity to describe men, they would say words like dominant, non emotional, macho, aggressive, and to be the provider and protector of his family. This essay sets out to examine if masculinity is socially constructed and to do this the theories of gender, media, historical societies and even sexuality will be analysed throughout.