A recent poll of the wharton women in business club asked members to list their dream speakers for this year's 25th anniversary of the annual wwib conference the person topping the list was andrea. Andrea jung, president and chief executive officer at avon products, inc since november 1999, is faced with the strategic decision of developing a growth strategy for a 115-year-old company in the spring of 2000 (pearce and robinson, 2005, p 28-1. In 1993 avon ceo jim preston brought ms jung in as a strategy consultant to help bring avon's products into department stores her recommendation was for avon to abandon the plan to enter the over crowded department store shelves and instead focus on updating its image and sticking with the direct sale strategy. Amidst poor financial results and allegations of bribery, cosmetics company avon is deferring strategic decisions, focusing on the short term and planning job cuts as it enters a transition period, according to outgoing ceo andrea jung.
This case details jung's game plan for turning around avon and explores the various steps she took towards this end including, changing the company's product strategy, reviving its sales representatives, exploring new channels of sales, aggressive global expansion, cost-cutting initiatives and an image makeover. Former avon ceo andrea jung was a marketing genius with a strong vision for the beauty products seller, nevertheless, her lack of attention to detail eventually caused her to fail, says deborah. Avon went global in a big and bold way at the beginning of the 21st century, recognizing that its future was dependent on creating a more integrated strategy in markets as diverse as south america, china, russia and elsewhere.
She did not say when she would announce a new strategic plan in april, avon said jung would be its executive chairman for two years instead, she will assume the senior advisor role on jan 1. Whether avon chooses a woman or man to replace jung, the new ceo should be given “leeway to define the way forward for culture and operational change at avon,” hrebiniak says. Jung's no 1 role continues to be communicating the company's new strategy in the weeks leading up to and just after the february analysts' gathering, jung visited bangkok, hong kong, london. Marlene d jung, cpa, llc is a full service tax, accounting, and business consulting firm located in avon, ct. Just last year, andrea jung was one of the most powerful women in the world as the ceo and chairman of avon products inc (nyse: avp), the giant direct-sales beauty company with over $11 billion.
Avon is a powerhouse in the beauty industry with over $10 billion in sales and claims its stake as being the largest direct seller in the world. Venturing in to retail and internet selling – jung realized that selling avon’s products through either of these channels would undermine the importance and affect the business of the direct sales representatives and could jeopardize the company’s longstanding relationship with them. Avon's cost cutting measures could eliminate up to $250m in annual expenses avon has outlined plans to improve rep counts & performance but has yet to execute. Avon through partnerships with educational, social, and civic organizations, fostering a strong sense of community and civic engagement 2 the board directed the strategic planning committee to develop a five-year plan, to be reviewed and updated annually each july. Andrea jung has done an exceptional job of identifying the problems of avon products, inc, developing a strategic vision, and outlining a plan to clearly communicate and meet the goals and objectives of the vision.
Direct marketing strategies of avon gaurav singh 2 direct marketing• direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen, wholesalers, advertisers and retailers. Jung shared anecdotes from her career, described her strategy for expanding the reach of avon products, and offered advice on how to become a great leader who ensures the future success of women at the top of corporate america. A strategic plan has been unveiled by avon central school district officials with the vision goal that “all students will compete globally” a summary of the strategic plan can be found on the district website, wwwavoncsdorg. Jung's strategic plan for avon avon is the world's leading direct seller of beauty products, with over $6 billion in annual revenues in november of 1999, avon announced the appointment of andrea jung as president and chief executive officer of the firm.
From avon's (nyse:avp) q3 2006 earnings call late last week: andrea jung - chairman and chief executive officer finally, turning to china, direct selling is clearly taking hold if you exclude. Avon products inc will close the book on the andrea jung era at the end of the year, clearing the way for new chief executive sheri mccoy to try to fix the iconic but struggling beauty products. Her strategic plan was to fix these problems by fixing the entire company structure, which included changing the product packaging for better appeal to changing the distribution channel which was a major asset to avon. Avon’s three-year transformation plan requires $500 million cumulative investments over the next three years avon expects to spend $150 million for media and social selling implementation, $200 million for it and service model evolution, and $150 million for implementation of operating model and supply chain improvements.
The first recommended solution would be that avon adapts the current plan set out by jung with regards to the implementation of the online business this plan includes the concept of creating an erepresentative title to all sales representatives who are willing to pay $15 per month to be eligible to earn online commissions. The strategic plan vision provides a dynamic overview describing the way of life in avon, the values the community holds and serves as a comprehensive statement regarding the focus and directed outcomes of the town’s work. Transcript of avon strategic plan historical analysis of avon david h mcconnell direct selling business model andrea jung sherilyn s mccoy historical analysis of industry history of the industry fragmented, secretive and often family owned companies avon and cosmetic industry strategic plan television commercials television commercials then.