Avon Case Study

944 Words2 Pages

1.

Andrea Jung was very strong as chief strategist of Avon Products. She never feared the need to make drastic changes that would help drive Avon back to the top of the Cosmetics, Fragrance and Toiletry Industry. She knew that serious issues were present and the company needed to address them. These issues included product appeal, marketing strategy, pricing, process reengineering, and product innovation/employee motivation. Her strategic plan was to fix these problems by fixing the entire company structure, which included changing the product packaging for better appeal to changing the distribution channel which was a major asset to Avon.

After reading the case study, I felt that Andrea Jung performed well in her duties to help Avon move back to the top of the cosmetics chain. She knew what needed to be done and did it, which is a must to be an excellent CEO. I would grade Andrea Jung's performance with an A because she developed an excellent strategy that helped push sales from 1.5 percent in 1999 to 6 percent in 2001. That's a major jump in just a two year span, especially considering she had never been a CEO of such a large corporation before. Her remarkable strategy also helped boost sales in foreign markets, mostly in Europe and Asia. The strategies she envisioned and implemented helped push Avon for a poor company on the downfall, to an important company with excellent growth potential.

2.

Jung knew that her strategic vision was vital to the success of Avon Products in the future. She envisioned Avon as the "ultimate relationship marketer of products and services for women." (Thompson, C-37) Her view was an Avon that went beyond selling just cosmetics, but also becoming a trusted retailer of almost any type of good or service that the consumer wanted or needed. Her new company would allow women (chief consumer) to purchase beauty products as well as financial services.

After reading Jung's strategic vision, I feel that her ideas and beliefs for Avon are strong and well presented. This should ultimately lead to the growth she knows the company can achieve. Under the former CEO, Avon had never exactly changed in course as a company, which was why it was starting to diminish. Jung knew this and when she took over changed the company completely. It was time to change because the consumers which Avon relied on were unhappy with the company's image with the same old products and unattractive catalog, as well as its distribution problems it had been facing the last few years.

More about Avon Case Study

Open Document