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Copy of AVON case study analysis

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by

Priscilla Slack

on 16 July 2013

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Transcript of Copy of AVON case study analysis

Creativity and openness to ideas are essential
Content
-Introduction
-Situation analysis
-Problem identification
-Theoretical survey
-Evaluation of the alternatives
-Suggested solution
-Conclusion
EVALUATION OF THE ALTERNATIVES
1.Keep personal selling as the main distribution channel and create a Web strategy only for marketing purposes
ADVANTAGES
-Corporate identity

-Strong customer relationships

-Current representatives
employed
DISADVANTAGES
-Inconvenience for customers

-High commission fees

-Loss of AVON‘s
competitiveness
2. Reduce number of representatives and rely on online sales
ADVANTAGES
-Reduced costs

-Technological
development

-New market segment
DISADVANTAGES
-Loss of competitive advantage

-Downsizing

-High impelementation costs

-Lack of experience in
e-commerce
3. Create business strategy which would combine both: e-commerce and personal selling
ADVANTAGES
-Corporate identity

-Strong customer relationships

-Current representatives employed

-Keeping up with the technology

-New market segment
DISADVANTAGES
-Not unified business approach

-High implementation of e-commerce costs

-Lack of experience in e-commerce
SUGGESTED SOLUTION
1. Who is your representative?
2. Would you like to buy online or schedule a meeting with your representative?
WAYS TO OVERCOME NEGATIVE CONSEQUENCES
Position it as competitive advantage
Investment in e-commerce will pay-off in the long-run
Hire e-commerce consultants
What we learnt:
Advantages and disadvantages must be taken into account
No exact and obvious solution
• Established 1886
• Based on direct selling
• Close customer approach
• Strong company identity
Relationship Marketing
The company
Sincerely,

Arthur Vialou,
Emilien Demaziou,
Ieva Zigmantaite,
Liepa Olsauskaite,
Ruta Ganusauskaite
What's in it for RM?
SWOT
SWOT
SWOT
SWOT
• Personal selling
• Customer loyalty
• Flexibility for employees
• High employee turnover
• Performance monitoring
• Bureaucracy
• High commission fees
• New market channel
• Technological development
• Increased rivalry
• Consumer preferences change
Problem identification
• Brand loyalty
• Consumer perceived value
• Customer relationship
management

1. How AVON can keep its corporate identity through emergence of e-commerce?
2. How a new Web Strategy can be distinguished from the first unsuccessful launch of Avon.com?
Theoretical survey
3. How to leverage sales representatives in building Avon.com?
Main Problem
How to keep direct relationship with customers while enhancing online sales?
Full transcript