Strategic management case study. Sylvia LaBrie, Ashley Cleary , Andrea Baril, and Marie-Michele Lachance. Overview. Company Overview: History Sustainability Growth 2009 events and issues Avon m arket locations Existing Vision & Mission Statement New Vision & Mission Statement
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Sylvia LaBrie, Ashley Cleary, Andrea Baril, and Marie-Michele Lachance
He chose female sales representatives because:
• Eachpersonthatyourecruit, youearn $20
• If youwant to make money fromyour sales team's volume, you have to reach the position of whatiscalled a Unit Leader. The qualifyingfactors for Unit Leader are $250 in personal sales, and at least 5 recruits, whose sales total is $1200.00. You earn 3-7% on the orders made by yourrecruits, and also, 0.5 to 1% on the ordersfrom the people theyrecruit.
1. Flexible home based business
3. Lowcost to start a business.
Already CPC had 10,000 representatives and Depot Managers in 117 different articles in 600 styles
In October of that year, the company produced its first color brochure
CPC opened its first office outside the country, in Montreal, Canada.
When World War I broke out across Atlantic, 5 million units a year of CPC’s product were sold in North America.
By this time, 25,000 representatives in the United States.
The company’s office moves to Fifth Avenue in New York City
The first product was offered under the name of Avon
The Business Ethics Magazine has rated Avon for 6 consecutive years as one of the “100 Best Corporate Citizens”
External ‘’Green’’ Mobilization
Avon Foundation for Women
Wewillbuild a unique portfolio of Beauty and related brands, striving to surpassourcompetitors in quality, innovation and value, and elevatingour image to become the Beauty companymostwomenturn to worldwide.
The Women'sChoice for Buying
Wewillbecome the destination store for women, offering the convenience of multiple brands and channels, and providing a personalhightouch shopping experiencethathelpscreatelifelongcustomerrelationships.
The Premier Direct Seller
Wewillexpandourpresence in direct selling and lead the reinvention of the channel, offering an entrepreneurial opportunitythatdeliverssuperiorearnings, recognition, service and support, makingiteasy and rewarding to beaffiliatedwith Avon and elevating the image of ourindustry.
Wewillbeknown for our leadership edge, throughour passion for high standards, our respect for diversity and ourcommitment to createexceptionalopportunities for professionalgrowthsothatassociatescanfulfilltheirhighestpotential.
Wewillbe a committed global champion for the health and well-being of womenthroughphilanthropic efforts thateliminatebreast cancer from the face of the earth, and thatempowerwomen to achieveeconomicindependence.
The Most AdmiredCompany
Wewilldeliversuperiorreturns to ourshareholders by tirelesslypursuing new growthopportunitieswhilecontinuallyimprovingourprofitability, a sociallyresponsible, ethicalcompanythatiswatched and emulated as a model of success.
Avon strive to be the best foundation for women by offeringa widevariety of productsthatappealsto anywomen’sneedand taste.
Our mission as a companyis to provide a unique portfolio of beauty, fashion, and home brands to satisfywomenworldwide. We encourage the personalrelationshipbetweenemployees and clients by providing a door-to-doorexperience. Weexpectouremployees to beprofessional, and in return weofferthem a flexible workschedule. We are constantlylooking to increaseour sales throughourrepresentatives as well as throughour online market, whichwould help maintainourgrowth and profitability to ourstockholders. As an expandingcompany, ourpurposeis not only to sellourproducts, but also to remainsociallyresponsible by contributing toour causes related to women.
1. Home segment experiencing loss
2. No physical location
3. Avon has a poor brand loyalty
4. Advertising cost overly expensive
5. Expensive products reputation
6. Lack of control over representatives
7. Complicated process through representatives to have products
8. Representatives on credit (the representative do not pay the company until they get paid by their customers)
1. Strong brand
2. Avon is the market leader in its industry
3. Unique portfolio
4. The largest women’s foundation
5. Innovating brand
6. Socially responsible and ethical with strong values (trust, respect, belief, humility, and integrity)
7. World’s largest direct seller
8. Avon has a great adaptation to diverse culture
9. Strong and steady growth revenue
1.Buy out other smaller companies
2.Online markets becoming increasingly popular
3.Diversification of products
4.Offers employment opportunities
5.Intensify brand development overseas
6.Emphasize direct selling in emerging markets
7.Promoting the company by utilizing inexpensive outsourced marketing (social media, word of mouth, etc.)
4.Reputation smeared by investigations
6.Large market to compete in
Avon: 10 billion
Mary Kay: 2.6 billion
Revlon: 1.3 billion
Mary Kay: 5%
- To increase their customers range, Avon should start a new product line that would be less expensive.