Marketing Strategies / Strategic Marketing Case Study

Reinventing Avon

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Abstract:
Avon is a leading manufacturer and marketer of beauty and related products. Avon has a unique business model based on direct selling. In mid-2000s, Avon witnessed a sudden fall in its market share due to the customer’s perception of their brand being associated with quaint, middle-aged audiences. The case talks about Avon’s $500 million re-structuring exercise to reach new, wealthier customers. It discusses Avon’s efforts to re-invent itself in the market without alienating its traditional lower-middle-class target audience.

Pedagogical Objectives:

• To discuss the business model of Avon
• To understand the factors leading to the decline of company’ market share
• To discuss the re-structuring strategy to regain the lost market share.

Keywords : Loosing market share, beauty and related products, middle class target audience, changing trends, Marketing Strategies Case Study, sudden fall, andrew jung, avon lady, competitors, catalogues, new products, celebrity advertising, rejuvenating image, restructuring, organisation layer, new structure

Contents:

• Introduction
• Background
• Business Model
• New initiatives
• The Road Ahead