AVON CASE STUDY

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Business Model
1. Customer Segmentation: Female
2. Value Proposition:
Direct Sales, Door to Door Marketing
Women Representatives.
3. Channels:

Brand Endorsement by Celebrities,

Online Promotions, Brochures.

4. Customer Relation:
5. Revenue Stream:
6. Key Resources:

Online, Internet Based.

Beauty Products Category.

Employees, Brands, R&D team,

Various Departments working for
Organizational Success e.g. Finance.

Business Model
7. Key Activities:
Marketing, Product
Improvement, T& D of
8. Key Partnerships:

Representatives.

Suppliers, Advertising Agencies.

9. Cost Structure:
Advertising & Brand
Ambassadors, Admin Exp,
R&D Expense.

ISSUES with AVON.

Focus only on Female Beauty Products.

Selection of Wrong Brand Ambassadors.
Aggressive Advertising on TV lacks attraction.
Lack of ERP implementation.
Devaluation of currency in Venezuela.
High Competition from L'Oreal.

Solutions
Introduce Beauty Parlors and Clinics having
Beauty Experts.
Promote Heavy Advertising but with Celebrities.
Introduce Beauty products for men.
Invest more on R&D team and seek proper
results.
Need to Change Mission and Vision Statement.
Open 1 stop shops for Customer complaints and
Product Return and Exchange.

THANK YOU