Given the question that: Should Avon continues to pursue its direct selling? My answer would simply be yes; Avon should still pursue its direct selling because it was through direct selling that the firm was established and globally renowned, benefited the company and its Sales Representatives as well. It should be noted that Sales Representatives truly benefits them especially for those who are relying their income only on selling Avon products.
Through continuous pursuance of direct selling, Avon may still boost up its sales given the recommendations that I have come up for its marketing promotions.
Focusing on television advertisement commercials may be an opportunity for Avon. Having TV advertisement will make people or viewers aware of Avon and the products that they offer in the market. Recently, Avon tied-up with Mc Donalds and Globe by giving free lipsticks to teenagers. Such strategy of Avon, means that they are now extending their target market. Expanding their target market to teenagers is an opportunity for the firm since the population of Philippines is mostly teenagers ranging from 18 to 20 years old. Given that Avon is known for its price affordability this group would perfectly fit that since teenagers rely on their parents by means of allowances.
Another thing is, since beauty is the foundation of Avon they should definitely emphasize its cosmetic line. Having so many products offered, it may be possible that the firm may lose its focus of what products should be prioritized. And it could be a cost for the firm if a certain product may not be sold. Such problem could affect the firm’s inventory turnover rate. It could be beneficial for the firm that their goods may be easily converted into cash but if a product takes a long time to be converted into cash then it is really unfavorable for the firm and it will be costly too.
It implies that the firm should focus on products that can be easily sold so as not to affect the inventory turnover of the firm.
With the emergence of e-commerce globally, and even the group was able to suggest to use internet to boost up its sales. However, in creating an internet-based in the Philippines for Avon may possibly incur a problem. Given the fact, that not all people have internet access at the same time the domineering part that consists of our population is the low income groups. Thus shows, that the strategy given by the group are feasible but in terms the economic situation in the Philippines the strategy may not be effective.
In evaluating the reporter’s SWOT Analysis, they were able to come up realistic or feasible analysis wherein the SWOT given can be found or supported through their internal and external analysis. Intense competition with other rival firms makes Avon to come about with innovative access to potential and new customers so as not to be dominated by other rivals. Innovative access can be seen through market visibility or availability, through their Sales Representatives worldwide, which is the very reason why Avon managed to compete and still is competing with other rival firms and sustaining its market position in the industry.
Under the IFE Matrix, the group gave an above average score which simply shows that the firm is excellent enough in overcoming the existing internal weakness and taking advantage of existing internal strengths. At the same time, under the EFE Matrix it also resulted in to an above average score too.
In the CPM Matrix, Avon received the highest competitiveness score. I agree to the weighted score of the group wherein they rated Marketing Efforts as the highest for Avon since it is through the Sales Representatives the firm relies on their sales and profits. Mary Kay ranked as the second and Revlon ranked third respectively.
In terms of the suggested alternatives given by the group, it should be noted that the use of advertisements should be taken also into consideration. Such strategy, the consumers or potential buyers may know the image that Avon wanted to project as wells for the consumers to know the existence of such brand in the market. Thus, creates customer familiarity.
However, I do not agree with the strategy implementation of the group wherein they suggested reducing expansion in Southeast Asia due to currency pressures in the region. The group should know that Avon employs a lot of employees and some rely the selling of Avon Products as their main income. If it then reduces expansion it will contradict the firms vision that is to understand and satisfies the product and needs of women GLOBALLY.
