Avon Case Study

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Avon Case Study km Talent Management/HRM 532 February 1, 2015 Avon’s Case Study Avon is a company that stands for beauty, innovation, and optimism, and above all for women. Avon products inc. is based in New York. The company appoints the manufacture and marketing of beauty and complimentary products primarily in North America, Latin America, Europe, and Asia Pacific. Avon’s products are classified into three product categories: Beauty, Beauty Plus, and Beyond Beauty. The Beauty category consists of cosmetics, fragrances, skin care, and toiletries; Beauty Plus includes fashion jewelry, watches, apparel, and accessories; and Beyond Beauty comprises home products, gift and decorative products, candles, and toys. Andrea Jung became president and CEO of Avon in 1999. Provide a brief description of the status of the company that led to its determination that a change was necessary. Avon has experienced several problems moving its brand in many of its product lines. It showed positive net sales and earnings growth for the past five years and have since been in single digits and steadily declining year after year. Specific problem areas with Avon are stagnated sales, slow earnings growth, limited distribution capabilities and shift in personal care preferences and spending habits. It is clear that Avon did not have a transparent strategic vision. Without a vision for the company, employees had no sense of organizational purpose and no motivation and as a result Avon’s image failed. Many customers responded that Avon’s products were boring and not for them. Parallel to this, was criticism regarding poor product packaging, distribution and advertising campaigns. All of these were symptoms of a lack of strategic vision and straight forward objectives. A problem that was obvious for Avon was the inability of the company to adapt
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