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SWOT Analysis. Avon - Case Study Example

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In its operations during the early 2000s, the company witnessed many such factors which strongly influenced its strategic outlook. Few of the major strengths, weaknesses, opportunities, and threats existing in the then market will be analyzed below…
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"SWOT Analysis. Avon"

Download file to see previous pages Strength
• The company had a wide range of products to be marketed, from skin care to fragrances for both men and women
• It had a market coverage in 137 countries and marketed its products with the assistance of over 3 million sales representatives
• Most of the marketing strategies were directed towards the young
generation which was termed as the most potential market segment in the personal care industry
• The company focused on direct selling, retail selling through kiosks and online selling as its marketing strategy which helped it to be focused and also simplified the organizational operations
• Avon’s financial structure was remarkably weakening with stagnant sales revenue and lower growth rate
• The brand image of the company got fragmented due to over diversification of the product line
• Lack of aggressive purchase of Avon products by targeted customers, i.e. the Generation Y
• Increasing competition in online selling
• Loyalty in brand segments were unequal due to inadequate distribution channels
• Growth in all the sectors were not adequate, i.e. in the women section the company had a significant growth comprising of elderly females while in the men’s section the company was quite weak
in the women section the company had a significant growth comprising of elderly females while in the men’s section the company was quite weak Inefficiency in the recruitment and retaining of quality employees Increasing competition in online marketing along with major disputes between the company’s strategies and the interests of sales representatives Markets were weakening in the developed economies including the European region Opportunities The Personal-Care industry was growing, although it at a slower pace Reliable growth in the hair-care section in the market segment based on ethnic backgrounds of the customers Rapid growth was witnessed in the personal hygiene, men’s fragrances and makeup/color cosmetics sections Spa services were gaining consistent attention among the customers and marketers as a medium to generate higher customer loyalty Personal care products were highly favored by the Generation X customers Kiosks were receiving more and more attention in the industry supply chain North and South America were termed as the most potential markets for personal care products Online selling is most likely to gain a rapid growth in the near future The regulatory framework supported the operations of self-inspections, good manufacturing and maintenance of good relation with the regulatory bodies It had only two major competitors, i.e. Mary Kay Inc. and L’Oreal Mary Kay had no growth with weak existence in the women section Threats Mary Kay had only 8 categories of products with 200 different product lines primarily focused on the men’s section with limited women customers Mary Kay also segmented its market only in ...Download file to see next pagesRead More
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