Avon's mission declaration is to be the organization that finest understands and satisfies the product service and self-fulfillment demands of women globally. They state on their web site that their very own dedication to supporting females touches not only beauty-but overall health, fitness, self-empowerment and financial independence. This is an excellent mission declaration for a business selling beauty products to girls all over the world.
Avon started selling beauty items door to door in 1886. To get generations ladies have been getting Avon goods from little catalogues by using a representative asking consumers within their homes. During the days once most women were at home instead of building their own careers this technique of immediate selling was appropriate. In 1979 Avon acquired Tiffany & Co Company as well as a substance maker and health-product company. By the season 1988 Avon was getting rid of themselves through the health care market. Their debt had come to $1. two billion and stock prices had bottomed out. During 1989 Avon was the concentrate on of two take over tries. The company was successful in warding off both bids. Avon launched their particular new internet site in 97. This was a turning point for the company as they were providing products directly to the customers thus cutting out the advantages of the representatives that they acquired spent decades relying on. Avon estimated that they can had five-hundred, 000 product sales representatives in the usa alone. The sales comes from this Website have not made the gain the company had hoped for. In 1998 Avon set up shopping mall kiosks surrounding the United States. This is their first attempt at working retail stores. It was a major leaving in the way the business has done organization in the past. The intention of the kiosks was to aim product sales at young consumers not really already mindful of the Avon brand. To assist the relationships between Avon and its sales representatives these kiosks are now franchised to the representatives. Andrea Jung was named CEO of Avon in 1999. In the past year 2000 Avon relaunched the web site putting an emphasis on the availability of Avon representatives on line to assist potential customers with the needs. At the same time Avon a new new product line to be transported by main retailers and sold just in stores.
Avon's sales have increased but for a price of just 5% per year during the past ten years while revenue have improved by just 4% annually. On line product sales of health and beauty products had reached a staggering $756 million in the first six months of 2001. Promoting techniques found in the traditional sales methods are generally not viable intended for the online part. Research has identified that on-line customers have higher earnings and are even more educated. Competition is this market is fierce. When the web site was launched they will offered only a small portion of their products. The company was extremely timid in those days of impressive the sales representative. Administration could not agree with the technique to be used for their Internet sales and consequentially came on the web later than many of their very own competitors.
Avon's product line has become further as the decades have got passed. That they at one time had been selling only a limited brand of make up and fragrances. Avon added earrings, some apparel items, and children's books, among additional offerings. At the time the case was printed two thirds of Avon's sales were generated abroad. The case cites examples of the sales in Taiwan. Five years prior to the printing of the case sales were growing for a price of below 5% per year in that nation. Then Avon's management released multilevel marketing and opened retail stores selling Avon products to customers directly. The company has become enjoying twenty percent per year progress in Taiwan. Stock prices are increasing from the stressed times mentioned earlier from this report nevertheless they along with the sales have not rebounded as much as Avon would like.
The fundamental trouble that Avon is currently facing is that even though profits happen to be slowly elevating, they are certainly not...