Avon Case Analysis
Andrea Jung?s Makeover of Avon
When first reading this article, one thinks that there is nothing wrong with Avon, and that Andrea Jung has completely turned this company around. However, through careful analysis, one can see that there are still problems within Avon that must be corrected if they intend to compete in the hectic and chaotic world of the cosmetic, fragrance, and toiletry (CFT) industry.
One problem that Avon faces is the strong competition within fields they are trying to expand into. Avon is marketing a nutritional product line called Wellness, which includes vitamins, supplements, bars, etc. This market is competitively strong, with such nation-wide retailers as GNC, Vitamin World, Walgreens, and countless other drug stores and grocers that carry substitute items, which may be less expensive.
The best recommendation I can give is to strongly suggest doing market research before engaging in branching off into other forms of product lines. Avon should stick to what it knows (cosmetics), and when they are at the top, then branch off into other ventures.
Avon also faces a poor brand image. Most women view Avon as ?my grandmother?s brand? or ?not for me?. One of the fastest growing demographic
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