Avon Tangeria Perfume Company Case Study

Introduction

In 1886, David H. McConnell who used to be a door/to/door book salesman founded the California Perfume Company (CPC). CPC issued its first brochure in 1896, and in 1914 it began operations in Montreal, Canada, marking the company’s first international expansion. In 1939 company was renamed to Avon. Avon went public in 1946 and in 1954 begun operations in Venezuela marking its first overseas expansion. In 1978 The number of Representatives reached one million, with sales totaling more than $2 billion. In 2005 Avon opened its 225,000-square-foot, state-of-the-art R&D facility in Suffern, New York (Our History, n.d.).

Today Avon has over 6 million representatives all over the world, out of which 60 % are women. Globally, 4 Avon

Re-branding strategy to drive up customer demands (Avon SWOT, n.d.)

There are many opportunities for re-branding that Avon could use to its advantage.

In the past, Avon has tried to establish themselves as an upscale brand, but their efforts failed because marketers discounted products in order to sell them, and luxury products and discounting, as we already know, do not go well together (Avon: The rise and fall, n.d.). Even though this particular strategy has failed, there are many new opportunities for Avon to rebrand in order to increase demand, especially regarding rebranding as an upscale brand.

Threats

Strong competition Avon faces a strong competition from brands such as Oriflame, Revlon, Mary Kay, Loreal and many other drugstore and local brands who are in the same

Dependence on third party supliers

Avon depends on third party suppliers of raw materials, which means that negative trends regarding the supliers will negatively affect Avon as well.

STEP 3: FORMULATE A NEW DIRECTION

Vision statement

When it comes to vision statement, a vision statement that is appropriate for Avon would be „Empowering beauty“. This vision means that Avon creates not only beauty products, but also empowerment for women, both through creating self-confidence with their products, and through allowing women to become strong and independent. Since Avon gives a lot of attention to rights of women, this vision contains Avon's core belief that women can be beautiful and strong and independent at the same time.

Mission statement

The mission of Avon can be „to provide best quality beauty products that will allow every women out there to express her best self, as well as to surpass our competitiors through innovation and quality“.