Avon Case Study

AvonÐ'--Con (Against argument)

Andrea Jung's grand strategy to create a partnership with J.C. Penney and Sears is not optimal. In recent years both retailers have struggled financially to stay afloat in the competitive retail market. Although both retailers have garnered tenure customer perception of them is extremely low. Creating a retail presence within the stores would not significantly increase revenue for Avon. Jung's strategy should have been geared more toward towards personalization. Because a large percentage of women are now working outside the home it would behoove Avon to capitalize on this opportunity just as their competitor (Mary Kay) has. Consumers as a whole love personal touches and the fact that they are treated special. Selling/marketing products in the comfort of one's home has worked well for Mary Kay and there is plenty of room for others to mimic their approach.

In addition to personalization Avon needs to capitalize on its strong brand recognition within certain ethnicities, i.e., African Americans and Asians. Continued research and development of products geared toward individuals who favor the brand can go a long way in terms of revenue. Partnerships and alliances within the aforementioned communities could substantially increase revenues. The case study suggested that statistically speaking "African Americans constitute the largest ethnic group in the U.S." (Pearce & Robinson, pg. 17). The growth rate for these individuals was expected to grow by 45 million in 2020. The Asian American population spent an estimated $38 billion on consumer goods. Both groups were extremely loyal to retailers who appreciated their business.

Jung's approach is therefore not viable and she should strongly consider strengthening the company's relationships among consumers that show the most promise as well as adopting an aggressive launch providing personalized in-home service. Following are some target areas to consider:

Ð'* Capitalizing on high growth areas: shower products, eye makeup, post-shave products, salon hair care, body care, solid deodorants, talcum powder, premium unisex fragrances, cleansers and shampoo.

Ð'* Baby sun care, hair colorants, lip products, self-tanning products, cream deodorants and facial moisturizers.

Ð'* Targeting