Andrea Jung's Makeover of Avon Products, Inc. Problems Avon faces the strong competition within fields they are trying to expand into which is a nutritional product line called Wellness. Any effort to sell products via the Internet and through retail channels has been rejected by the representatives. How can Avon maintain its number one direct seller of beauty and beauty-related products in the future with current industry trends? How can Avon enter the teen line cosmetics and make it profitable? Dependence on direct sales will hinder Avon in the future unless their products are so superior that women seek them out. Problem Statement Avon's strength lies in its ability to sell its products directly to its customers. They are the leading direct seller of personal care products in the world.
Avon's biggest strength has become one of its biggest obstacles. Any initiative or strategy set about by the company to expand beyond its direct sales model is met with fierce opposition by its sales representatives. Any effort to sell via the Internet and through retail channels has been rejected by the representatives. Alternatives Since many young women are wearing make-up these days, Avon should develop an inexpensive, teen line.
Sharing advertising / branding costs among all countries will lower the operating costs. Use Avon product placement in popular movies and television shows. Launch the men line products to cover the market need. Recruit the male representatives to generate more income. Enter to the new countries that have a potential to grow and earn enough profits e.
g. Vietnam Promote a nutritional product line by sponsoring the sport event. Educate the representatives to point out the need of introducing the new distribution channels. Expand the new distribution channels to facilitate the customers and prevent the dropping in direct sales in the future e. g. the airlines.
Create the innovative products to customer. For example, let the customers specify what they need and then tailor-made invidually.