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Avon's Strategic Road Map And Andrea Jung's Strategy Discussion

804 words - 3 pages

For over 120 years, Avon has enjoyed worldwide success as a top global brand and world leader in the personal care industry. Recently, single digit growth demonstrated the need to make substantial changes in their operating structure. In the spring of 2000, Andrea Jung President and CEO since November 1999, introduced new strategies to promote growth for the company. Our team has divided into two groups to determine if Andrea Jung's new plans for strategic growth is properly focused and directed.Two of Avon's new strategic plans were used to focus on our analysis. Andrea Jung emphasized a need to expand Avon's brand name in the United States by partnering with department stores such as JC Penney and Sears in an effort to create a store-within-a-store where new product lines can established. "In implementing both strategies, Avon would benefit from increased profits, sales, and nationwide exposure" (Pearce, pg 41). Team members thought that this was a good idea because the plan allows Avon to experience possibly an increase in sales. Customers can see the Avon label in the store and have the opportunity to purchase Avon products in stores instead of using the direct selling method.Avon has an extremely low amount of male customers since their brand image is seen as a woman's beauty and personal care company. The male consumer increasing purchasing personal care products and sales of men's fragrances rose close to a billion dollars in 1999 while women's fragrances see a decrease in sales. Avon could use the store-within-a-store concept to focus on men's personal care market by selling fragrances, shaving creams, after shave balms, deodorants and anti-aging creams.The team members who thought against Avon partnering with department stores such as JC Penney and Sears had a few concerns. In partnering up with two of the weakest department stores, JC Penney and Sears, Avon runs the risk of wasting what little money they are spending in this merger. If JC Penney and Sears are two weak stores, team members wondered how is that going to help Avon sell if they place the products in stores that have trouble selling their own products. There may not be enough traffic that will generate Avon sales dollars. Besides low traffic, will the stores have sales staff in place that will be able to sell the Avon product?The method of having a kiosk in place works better than placing the Avon product line in low impact stores such as...

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