Avon Opportunity Presentation 02/22/12 05:04 Welcome to the Avon opportunity presentation. Introduce yourself and provide a little information – role at Avon, time with the company… .
Avon Opportunity Presentation 02/22/12 05:04 What would you do if money were no object? If you had unlimited funds, where would you and your family be six months from now? In two years? In five years, with unlimited money, how would your life be different? I said this evening would be all about you, and this is the first step…. It’s so important to let yourself dream… What could you do and who would you be if money were no object….
Avon Opportunity Presentation 02/22/12 05:04 Would you buy a new home or pay down your current mortgage? Take an exotic vacation? Who would you take with you? Secure your retirement, by adding to your savings account? Save for or pay for your kids’ or your own college education? These are all great things to do for yourself and your family. We may come from different backgrounds but we all have so much in common. We each have hopes, dreams, and aspirations of building a better tomorrow for ourselves and our families…
Avon Opportunity Presentation 02/22/12 05:04 Simply, you can have the formula for true financial freedom.
Avon Cosmetics Inc.
A V O N A Case Presentation with Analysis
Introduction Problem Statement Analysis Recommendation Conclusion
<ul><li>QUALITY </li></ul>Superior Customer Service Product Diversification Innovative Brand Recognition
The Avon vision is to be the company that best understands and satisfies the product, service and self-fulfillment needs of women globally. . Trust Respect Belief Humility Integrity
O B S O L E S C E N C E ob s o·les c ence n. Being in the process of passing out of use or usefulness; becoming obsolete. Opportunity Loss Cost Recovery Stock-out
O B S O L E S C E N C E A L E S P R D U C T I O N I V E N T O R Y T R N D S
Direct Selling Single level Direct Selling Multi-level Marketing Narrow Sense Broad Sense <ul><li>Direct Seller is also the consumer </li></ul><ul><li>Also called Network Marketing </li></ul>
Alternative 1 <ul><li>Avon should have an inventory control system that specifically provides control over the slow-moving products. </li></ul>
Advantages Relatively easy tracking of inventory levels. Use as an indicator whether to produce or not. Could also be used to prevent stock outs. Indicator to replenish the stocks in its stores .
Disadvantages The more diverse the transactions involved the more expensive it will be. Persons using it must be well trained in order for it to be useful, this provides for an added cost. Possibility that the system may not be used promptly because of the installation period. The cost is very significant that there must be proper planning and that the authority still vest with the general manager .
Alternative 2 <ul><li>Focusing efforts on the products that are giving Avon a higher return and cutting off production of products that are fast becoming obsolete. </li></ul>
Advantages Give proper emphasis to products that are indicative of quality and standards set forth by Avon. Minimal effort on the part of Avon, it only needs to focus on its best-selling products. It eliminates waste costs and rejected products resulting to decreased obsolescence. Increased customer satisfaction because of the improved process and quality of its best-selling products.
The obsolete products could either be sold at a high discounted price or given as promos in order to at least recover the cost in making it. Obsolete products could also be given as incentives to its consumers either through gifts or awards through prizes. Avon could still produce other new products on the premise that customer demands changes from time to time and that these new products are only produced on a limited amount.
It can no longer recover what past losses it had incurred due to obsolete products. There must be more effort on the part of the employees integrating it. There is also a chance that the Avon personnel may not know whether the product is becoming obsolete or not, so in effect to this Avon must be very sensitive to the changing tastes of its customers.
Alternative 3 <ul><li>Remodeling or recreating the products. </li></ul>
Concentrates on the idea that the obsolete products could still be given a chance by proper inspection and check-up of the quality and advertising campaign. Incorporating past experiences with the present information at hand could help in evaluating what should be done to the obsolete products.
The fact that there is an added cost in recreating the products. The seasonality and the changing trends of the customers are also to be taken into consideration. There is also the chance that customers don’t want to buy. It could only be done to products which are still sold to the customers and that Avon must quickly address the issue before it’s too late.
The alternative that is deemed to be effective when implemented is when Avon focuses more on products that are giving it a higher return in terms of profit. Recommendation
Comparing the three alternatives only alternative 2 has the realistic approach in solving the problem of obsolescence. Regarding its obsolescence, Avon could only recover its cost through the incentives to its Sales Representatives and customers by way of discounts and regular promos. Quality products should be given importance because it is where Avon generates its main profit.
Conclusion Avon’s quality products are its lifeblood and therefore it must be carefully taken care of. Therefore I conclude that if the recommendation given is implemented combined with proper supervision, monitoring, and evaluation the problem could be solved.