...RUNNING HEAD: Avon Products Inc. Case Analysis Taking Sides Avon Case Analysis MGT/578 - Strategy Formulation and Implementation December 18, 2006 Introduction – In the spring of 2000, Andrea Jung, president and CEO since November 1999 at Avon Products, Inc., faced the strategic decision of developing a growth strategy for a 115-year-old company (Pearce & Robinson, 2004). Not only was Avon experiencing a shrinking growth rate, but its earnings over the past few years had only risen in the low-single digits. Jung realized that not only had stagnant sales contributed to this but other factors as well to include changes in consumer spending habits, and limited distribution capabilities. Jung envisioned a grand strategy to get Avon moving in the right direction again. Her objective was to partner with JC Penney and Sears department stores to introduce new products in conjunction with direct selling. She presented her grand strategy to the Avon Operating Council and a bimonthly meeting. As a team, we will debate on whether Jung’s grand strategy is properly focused and directed or not optimal and needs to be refocused along with our unanimous decision. Side 1: Jung’s grand strategy is properly focused and directed (along with evidence to substantiate the arguments) Corina Andrea Jung President and CEO of Avon Products, Inc. has put together a grand strategy that is focused on improved product innovation...
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...INTRODUCTION: Avon is a world largest leading manufacturer of beauty and home products organization. The company was as established in 1886 under the name of California Perfume Company (CPC) and then was changed to Avon Product, Inc in 1939 by the same founder David H. McConnell and remained the same to current period. Avon is a globally famous and successful in its direct selling strategy if selling door to door, the company creates more than $10 billion in annual revenue. Avon Company has acquired a strong and attractive brand portfolio that attracts multiple of customers around the world. The company is selling in more than hundred countries operated with forty six thousand employees and has over six million representatives. Avon is a multi marketing company. The company chairman and CEO is Andrea Jung who was promoted to the position in the year 1999. She is so far in the position of CEO for twelve years as is considered to be the longest termed female CEO among five hundred companies. Avon was primarily directed for female customers; however the company expanded its products line and now offers varieties of products including male, toys and home products. The company is largely under control of women and serving under the goal of women empowerment and continues to help women by providing fund for education purposes and researches such as for breast cancer. 1) Evaluate Avon’s Strategic International Human Resources practices in global market regarding development...
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...Author: Morgan Whitaker February 22, 2016 8:10 PM Published How do you think utilizing other sales methods will impact the direct sales? Do you think there is a large chance of cannibalization? If so, how can CUTCO avoid that? Pampered Chef offered its products for sale at Target in the past, but since the independent sales people build their own businesses and their incomes from sales of the same products, most of them were extremely upset with Pampered Chef, because they were essentially taking money right out of their sales' people's pockets. Pampered Chef ended up pulling its products and reverting to direct sales. Do you think the risk of upsetting and/or cannibalizing the direct sales force is worth the increase in revenues that would be realized by selling through other channels? What are some of your ideas for an approach that would allow CUTCO to capture that untapped revenue without negatively impacting its direct sales? (Post is Unread) Thread: Post: Author: CUTCO analysis CUTCO analysis Posted Date: Status: February 22, 2016 8:05 PM Published Ivan Martinez 1. I personally cannot recall buying a product though a direct selling method. But one of my aunts sells Princess House cookware directly. She began selling soon after she attended a selling party she was invited to, and has been selling for a few years. I have gone to a few of her sales parties and the technique she uses the most is social and demonstration. She will gather friends and people interested in ...
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...českém trhu Exploring Marketing Strategy of the Cosmetic Company Operating in the Czech Market Bakalářská práce Autor: Barbora Vincenecová Brno, listopad 2006 Jméno a příjmení autora: Barbora Vincenecová Název bakalářské práce: Analýza marketingové strategie zahraniční kosmetické firmy působící na českém trhu Název v angličtině: Exploring Marketing Strategy of the Cosmetic Company Operating in the Czech Market Katedra: Katedra podnikového hospodářství Rok obhajoby: 2006 Anotace v češtině Obsahem této práce je analýza marketingové strategie kosmetické firmy Avon, operující na českém trhu. Konkrétně se snaží odpovědět na otázky: jaké metody reklamy Avon praktikuje, jaké nástroje sales promotion používá a jaké typy public relations firma volí k úspěšné komunikaci se zákazníkem. Sběr dat byl uskutečněn na základě rozhovoru s marketingovou ředitelkou společnosti Avon Česká republika. Anotace v angličtině This dissertation investigates the marketing strategy techniques within the cosmetic company operating in the Czech market. It tries to answer following questions: Which methods of advertising does the company use? What types of sales promotion does the organisation apply to attract customers? Which public relation practices does the association utilize to communicate with its stakeholders? The data was collected on the basis of interview with the marketing manager of Avon Czech Republic. Klíčová slova v češtině Marketingová...
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...(Duesterberg, 2007, pg 13).There are over 40,000 multinational corporations currently operating in the global economy, in addition to approximately 250,000 overseas affiliates running cross-continental businesses. (Eldridge, 1999, pg 1). A multinational organisation will allow for greater economies of scale, lower labour costs, reduced manufacturing and distribution costs and access to new technologies and methods. However with multinational corporations operating a largely as they are it is important to ensure that the management of such organisations is correct. Should this management be rigid and controlled in the way of UPS where each employee is given a set of rules, or more relaxed as in the case of SOL where each employee decides their own rules? Does being a multinational organisation make a difference to this decision? One thing that is for sure if that the management has to be strong whether it be strong and uniform across all countries, or whether it is strong and very different across all countries. This essay will analyse whether all parts of a business should operate in an integrated fashion or whether it is more successful to allow individuality amongst the subsidiaries. It will look at and compare the operations of existing companies and make a decision about the best practise. Organizations are always pulled by the two forces of uniformity and diversity. By nature they would prefer uniformity. That way lies predictability and efficiency. (Handy, 1976, pg 260)...
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...A BRAZILIAN MARKETING STRATEGY FOR SKINCARE PRODUCTS International Marketing 2010-2011 1 Content 1. Introduction........................................................................................................................ 4 1.1 1.2 1.3 2. International Marketing .............................................................................................. 4 Company description ................................................................................................... 5 Goal of the study ......................................................................................................... 5 General cultural concepts .................................................................................................. 7 2.1 2.2 2.3 History.......................................................................................................................... 7 Geography and environment ...................................................................................... 7 Demography ................................................................................................................ 8 Basic facts ............................................................................................................. 8 Population density.............................................................................................. 10 Brazilian ethnicity .................................................................................................
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...Leader: Jennifer Chang | Word Count: | 12/9/2010 | By Taslima Khanom, Sinem Sisman, Hamda Batah and Zhaneta | Table of Contents 1. Executive Summary 3 2. Terms of reference 3 3. Industry Information 3 4. Overview of adverts 4 5. Segmenting, Targeting and Positioning 5 6. Consumer Buying Behaviour 8 7. Promotion 12 8. Communication strategy 16 9. Price 17 10. Product 18 11. Place 20 12. Critique & Recommendations 22 13. Bibliography 23 14. Appendices 26 1. Executive Summary 2. Terms of reference 3. Industry Information The Cosmetic Toiletry and Perfumery Association annual report (CTPA), (2009) declares ‘Mass toiletries have performed less well with higher growth from units (4.3%) than value (2.5%)’, as seen by the sales figures in Table 1.1. In addition to this Mintel (2010) suggests ‘women spend an average £653.64 a year on beauty products’. Such products include toiletries like cosmetics, fragrances and personal care products as seen in table 1.1. The director of Research at Mintel, Joan Holleran (2009) states "Personal care companies need to focus on value, feel-good benefits and new product innovation to keep shoppers interested" in order to generate sales growth. The distribution channel of the companies within the industry include direct and multiple selling depending on the specific product categories, these include department stores, supermarkets, drugstores and speciality retailers. Further sales...
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...3 Vision of the Company 4 External Assessment 4 Technological trends 4 Demographic trends 4 Economic Trends 5 Political and legal constraints 5 Sociological factors 7 Global trends 8 Industry Analysis 8 Competitor analysis 9 External Factor Evaluation (EFE) Matrix 10 Internal Assessment 11 Company organizational structure 12 Personal policies and management 12 Operational production capacities and policies 13 Financial stability (common ratios and measures) 14 Ratio Analysis 15 Leadership and organizational behavior, corporate culture, etc 20 Marketing 21 Ethical/ legal issues 22 Management information systems and research and development 22 Patents, Trademarks and Proprietary Technology 22 The Internal Factor Evaluation (IFE) Matrix 23 Strategy Formulation 24 Strategic solutions 30 Timeline for Implementation 32 Consequences 33 References: 34 REVLON: CASE STUDY ANALYSIS INTRODUCTION Introduction Revlon is a global color cosmetics, hair color, beauty tools, fragrances, skincare, anti-persiparant/deodorants, and beauty care products company. Revlon case is a comprehensive strategic management case that includes 2006 and 2007 financial statements, competitor information, internal factors, future outlook and more of Revlon Company. It has posted losses for eight consecutive years and has struggled with debt since Ron Perelman purchased a majority stake in the company in 1985. And Revlon is a company in trouble. Net sales...
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...Industry Assessment - Part 1 Cosmetics Industry Riley Bell Alexandru Colita Nicholas Gonzalez Derek Morin Yuan (Amy) Zhang MGMT 390: Industry Analysis Projects Norine Webster University of British Columbia Okanagan February 14th, 2014 Table of Contents 1. Executive Summary……………………………………………………………………….2 2. Industry Description………………………………………....…………………………….3 3. Value Chain……………………………...………………………………………………..5 4. Relevant Features/Factors for the Industry ……………………………………………….7 5. Porter’s Five Forces ………………………………………………………………………9 6.1. Competitors and Level of Rivalry ……………………………………………………………………...9 6.2. Suppliers and Relative Power…………………………………………………………………………10 6.3. Buyers and Relative Power …………………………………………………………………………...10 6.4. Possible New Entrants, Barriers to Enter and Exit, Threat of Entry ………………………………….11 5.5 Substitute Products, Barriers to Switching, and Threat of Substitutes………………………………...12 6. Financial Ratios………………………………………………………………………….12 7. STEEP Analysis………………………………………………………………………….16 7.1. Social/Cultural Factors…………………………………………………………………………………16 7.2. Technological Factors…………………………………………………………………………………..18 7.3. Economic Factors………………………………………………………………………………………19 7.4. Environmental Factors………………………………………………………………………………….20 7.5. Political Factors………………………………………………………………………………………...20 8. Significant Drivers……………………………………………………………………….20 9. Key Success Factors……………………………………………………………………...
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...Financial Section 2004 Results By Geographic Region Source of Net Sales by Category Asia Pacific Asia Pacific North America 14% 34% Latin America 12% Latin America North America Beyond Beauty Beyond Beauty 27% Beauty Plus 17% 21% 62% Beauty Beauty Plus 13% 18% 69% Beauty 25% 27% Europe 31% 30% Europe Net Sales Business Unit Operating Profit 2000 2004 Net Sales by Geographic Region $ IN BILLIONS Operating Profit by Geographic Region $ IN MILLIONS Asia Pacific Europe Latin America North America Asia Pacific Europe Latin America North America 2.5 2.0 1.5 1.0 0.5 00 01 02 03 04 500 400 300 200 100 00 01 02 03 04 Number of Active Representatives Worldwide IN MILLIONS Capital Expenditures $ IN MILLIONS Year-end Market Capitalization $ IN BILLIONS 5.0 4.0 3.0 2.0 1.0 00 01 02 03 04 250 200 150 100 50 00 01 02 03 04 20 16 12 8 4 00 01 02 03 04 Global Beauty 23 25 Management’s Discussion and Analysis of Financial Condition and Results of Operations 25 Cautionary Statement 25 Overview 27 Critical Accounting Estimates 30 Results of Operations – Consolidated 35 Segment Review 42 Liquidity and Capital Resources 44 Risk Management Strategies and Market Rate Sensitive Instruments 46 Contingencies 48 Accounting Changes 49 Market For Avon’s Common Stock 50 Consolidated Statements of Income 51 Consolidated Balance Sheets 52 Consolidated Statements of Cash Flows 53 Consolidated...
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... Contents 1. Overview ............................................................................................................................................ 4 2.Micro Environmental .......................................................................................................................... 5 3.Macro Environment ............................................................................................................................ 7 4.Consumer behaviour ........................................................................................................................... 9 References ............................................................................................................................................ 11 Overview The Indian personal care industry is estimated at Rs 45000 crores. The industry is divided into personal care, fabric wash, hair care, oral cares, skin care, coloured cosmetics, toiletries and fragrances. The industry has a low entry barrier and competition is severe. Besides the large multinational players, there are some leading domestic players as well as the huge unorganized players. Though most of the market share is with the larger players, companies vie for the marginal market share. Cheaper imports and duplicate products are also affecting the major players. One of the major multinational companies dealing in this sector is Amway. Amway is an American multinational direct-selling company that uses...
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...CARE LINE PRODUCT ALINUR AYUNI ALI2012416538 MOHD HAFIZ ABD GHANI 2012456922 UMI NADIA MOHAMED 2012217058 GROUP BM7702PA – EVENING TRACK LECTURER DR. SITI ZALEHA SAHAK TABLE OF CONTENT 1. Strategic Issues And Problems 1 2. The Branded Beauty And Personal Care Market In India 2 3. Mary Kay, Inc. 4 1. Mary Kay Inc. Hair Care In India 4 2. Summary Of Facts – 4Ps 6 1. Product 6 2. Price 6 3. Promotion 7 4. Placement 7 4. Strategic Marketing Tools 8 1. BCG Model: Branded Beauty and Personal Care in India 10 2. BCG Model: Mary Kay Business Subunits in India 11 3. Limitations of BCG Model 12 4. Payoff Matrix: Alternatives for Mary Kay Inc. 12 5. Recommendation and Conclusion 15 1.0 STRATEGIC ISSUES AND PROBLEMS Sheryl Adkins-Green, the vice president of Brand Development at Mary Kay, Inc. received a request from a general manager for India to provide a hair care line for women. Being in attached with the company, her responsibilities to develop brand and being in charge around the world and global initiatives and products specially formulated for global markets. However, Mary Kay, Inc. had introduced a hair care line in other country such...
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...Nutrition for a better life.” (“Herbalife nutrition…”) This statement is short and relevant. It defines the company’s formula 1 shake objective and it describes the value of their product. Herbalife’s mission is to change people’s lives by providing the best business opportunity in direct selling and the best nutrition and weight-management products in the world. (www.herbalife.com) Issues that could hinder this statement are related to the costumer’s misuse of the product. If one uses formula 1 shake, yet continues to have bad eating habits and a bad lifestyle, then he or she will not fully benefit from formula 1’s shake nutrition. Marketing Strategy Recommendations: Positioning Strategy Herbalife offers exclusive, high-demand products that have helped millions of people in more than 76 countries. Herbalife is dedicated to developing formula 1 shake innovative, effective product under the guidance of their Scientific Leadership, including Nobel* Laureate in Medicine Dr. Lou Ignarro, and with groundbreaking research at the Mark Hughes Cellular and Molecular Nutrition Laboratory at UCLA†. (www.herbelife.com) Another positioning strategy is the wide flavor availability for different tastes and the option of purchasing the formula 1 not only in canisters, but also in individual “to go” packages. In addition to providing such nutritious shake mix, the company has a website where people can connect to others and be accountable for each other’s progress into a healthier life. This...
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...(Note to USER: please rename company if you use this; ALSO NOTE: instructor had us leave in his quideline questions; those need to be edited out.) Cosmic Cosmetics Marketing Plan Cosmic Cosmetics: Reaching for The Stars Analyses and forecast of the first year of sales for an independent cosmetics company aimed toward a collectible cosmetics niche market, and focusing on an astrology theme. | 1.0 Executive Summary ~ The Executive Summary appears at the beginning of the paper, but is written last. This introductory section is the hook to grab the reader's interest. This section should summarize your plan with enough information to convince the reader to keep reading. If you were showing this plan to an investor, this section may be the key to your success. …excellent, to the point summary…should have year 1 sales in here. People want to be beautiful on the inside and the outside. The quest for outer beauty has driven the cosmetics into a multi-billion dollar industry, and the number of product and manufacturers in this competitive field are numerous. What all the existing cosmetics companies lack is the ability to make consumers feel beautiful on the inside, too. Cosmic Cosmetics is a new line of color makeup products with a goal: to make consumers feel special and unique on the inside while they make themselves feel beautiful and unique on the outside through color and glitter. Since Astrology is the art of defining people’s unique personality traits...
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...CHAPTER 1 Learning Objectives The Management Process Today After studying this chapter, you should be able to: • Describe what management is, why management is important, what managers do, and how managers utilize organizational resources efficiently and effectively to achieve organizational goals. • Distinguish among planning, organizing, leading, and controlling (the four principal managerial functions), and explain how managers’ ability to handle each one can affect organizational performance. • Differentiate among three levels of management, and understand the responsibilities of managers at different levels in the organizational hierarchy. • Identify the roles managers perform, the skills they need to execute those roles effectively, and the way new information technology is affecting these roles and skills. • Discuss the principal challenges managers face in today’s increasingly competitive global environment. Management Snapshot Different Approaches to Management at The Home Depot and Lowe’s: What Is High-Performance Management? Home Depot shot to fame when its founders, Bernie Marcus and Arthur Blank, developed a new concept for a home improvement store. Their vision was to fill a warehouse-type store from floor to ceiling with a wide range of lowpriced products and to provide excellent customer service. Home Depot’s well-informed salespeople offered customers knowledgeable advice and they even conducted classes showing do-it-yourselfers how to install...
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