Avon BCG [PDF]

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AVON CASE STUDY



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Business Model 1. Customer Segmentation: Female 2. Value Proposition: Direct Sales, Door to Door Marketing Women Representatives. 3. Channels:



Brand Endorsement by Celebrities, Online Promotions, Brochures.



4. Customer Relation: 5. Revenue Stream: 6. Key Resources:



Online, Internet Based. Beauty Products Category.



Employees, Brands, R&D team, Various Departments working for Organizational Success e.g. Finance.



Business Model 7. Key Activities: Marketing, Product Improvement, T& D of 8. Key Partnerships:



Representatives.



Suppliers, Advertising Agencies.



9. Cost Structure: Advertising & Brand Ambassadors, Admin Exp, R&D Expense.



ISSUES with AVON.



• Focus only on Female Beauty Products. • Selection of Wrong Brand Ambassadors. • Aggressive Advertising on TV lacks attraction. • Lack of ERP implementation. • Devaluation of currency in Venezuela. • High Competition from L'Oreal.



Solutions • Introduce Beauty Parlors and Clinics having Beauty Experts. • Promote Heavy Advertising but with Celebrities. • Introduce Beauty products for men. • Invest more on R&D team and seek proper results. • Need to Change Mission and Vision Statement. • Open 1 stop shops for Customer complaints and Product Return and Exchange.



THANK YOU