Avon case 1 Strategic Management
Perin & Jung - Global Development Center (focused on younger consumers & techniques) - Women of Earth Fragrance 1998 - Avon Center in Trump Towers - Website improved Web-based ordering - Phone/fax/computer voice ordering/speedy delivery - Convenience – Avon beauty centers in malls - Leadership Opportunity Program Commissions, bonuses based on sales recruits & trainees Jung’s moves as CEO: Vision focused on: product, service, self-fulfillment needs of women globally Health, fitness, self-empowerment, financial independence 1999 NEW - line of business - Products – global brands, cut 40% of catalog items - Packaging - distribution – avoid retail sales - supply chain mngmt - sales models - image – cut ad agency Improvements made: - Sales Reps got PC’s - Let’s Talk ad campaign w/ Williams sisters - Offered Kiosk’s as franchises (good compromise w/ sales reps) - Increased # of sales reps - Redesigned Catalog launched late 2001 had celebrities - Process Reengineering freed cash for R&D and Internet sales Results: 1999 - Sales increased - Sales force increased - Operating margins increased - Process Reengineering saved 400 mil in costs first 3yrs 2001 - Little Black Dress was Avon’s #2 fragrance - Becoming met sales - U.