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Business Memo on AVON - Essay Example

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Summary
The company is currently in the business of offering CFT products, (Cosmetics, Fragrances and Toiletry), beauty products (jewelry, watches and apparel and beyond beauty products (Home products, gifts, decorative candles) for women in the global market, by means of an unique…
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Business Memo on AVON
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Business Memo on AVON

Download file to see previous pages... More and more women aspired to be more than just homemakers and part time sales women and more importantly fewer women purchased products door to door. New innovative ways of selling such products are being adopted by its competitors like specialty retail chains. Selling through internet was taking off in a big way. There were no doubt many other reasons also contributed for this; product positioning and price (Avon’s products had little appeal with teens and many lower-income women found Avon’s products too expensive), poor brand image (not glamorous), inadequate research and lack of new products, but these as has been seen could be quickly addressed with appropriate results.
While suggesting solutions to problems, it is being taken without questioning for the time being that the company does not want to change its core value of reaching customers predominantly through its direct representatives. Avon is the world’s largest direct seller of beauty products (Miller and associates, 107). Whether the company is deriving competitive edge through this strategy is not verifiable because of lack of data. Assuming it does, the solution to the problem will have to address the issue of how to better equip its sales representatives to deliver better. The solution in brief would see the entire marketing model is reengineered to see that the selling agents add substantial value as channel partners to the company, as well as create scope for themselves to earn much more and find self-fulfillment in their association with Avon. Such an exercise should also make it possible for the company to become flexible in deciding its channels of marketing.
Players in the CFT industry operate in an oligopolistic market (Oligopoly watch 19 March 2006). No company derives advantage from one sole unique competitive advantage. They follow several strategies ...Download file to see next pagesRead More
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