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Avon: Study Case

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This presentation describe Avon's study case
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  Avon Products Inc. - 2009 Arya Vidya Utama Fredric Marpaung Irin T. M. Nicky Has  Case Fact  Business Model: B2C  Distribution Channel: Direct Selling, Sales leadership, Limited retail store sales, e-sales  Avon plays in 3 product categories: beauty, fashion, and home  Beauty products dominate Avon’s sales    Problem Identification  External  US economy crisis  Competitor: Revlon, Mary Kay  North America sales dropped  Predicted by Euromonitor International Inc. that cosmetic markets will see a slow down in volume demand  Internal  Avon’s brand lagged behind seven of their cosmetic companies in customer loyalty  Revenue growth down 12.90% in the first quarter of 2009  High advertising cost  Customers seek for green image, not homey image  Revenue Comparison 2008 2007 % Rev % Ret on Sales Rev Profit Ref Profit 2008 2007 Latin america 3,884 690 3,298 483 118% 18% 15% North america 2,492 213 2,622 213 95% 9% 8% Center & east europe 1,719 346 1,577 296 109% 20% 19% W eur., M.E. & Africa 1,351 121 1,308 33 103% 9% 3% Asia Pasific 891 102 850 64 105% 11% 8% China 350 17 280 2 125% 5% 1%
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