Makeover of Avon: Sheri McCoy's Challenges
Case Code: BSTR453 Case Length: 17 Pages Period: - Pub Date: 2014 Teaching Note: Not Available |
Price: Rs.500 Organization: Avon Industry: Cosmetics Countries: USA, Global Themes: Direct Selling, Restructuring Initiatives, Turnaround |
Abstract Case Intro 1 Case Intro 2 Excerpts
About Avon
The history of Avon can be traced back to 1885, the year in which it was founded by David H.McConnell (McConnell), a traveling book salesman. In 1886, while going from house to house with his books, McConnell found that his customers, especially women, were more interested in the free perfume samples he offered than the books he was selling. He also recognized that many women had the potential to become good salespeople. He took up the perfume business more seriously and became a perfume entrepreneur. He incorporated California Perfume Company (CPC) and P.F.E Albee (Albee) was the first representative of the company. She travelled by horse, buggy, or even train to sell perfumes door-to-door. She also appointed other women as representatives. This method of selling directly to the customers went on to become the hallmark of Avon's business model. Albee was called the ‘Mother of the California Perfume Company'. McConnell developed corporate principles which became the guidelines for Avon.
The number of sales representatives increased to 5,000 in just 13 years. The representatives were offered an earning opportunity which did not come in the way of their daily routine. By 1914, in order to extend help to the representatives, sales offices were set up in various places across the
country, such as San Francisco, California, Davenport, Texas, Pennsylvania, and Luzerne. In 1915, CPC received the prestigious Gold Medal Award at the Panama-Pacific Exposition in San Francisco for its products and packaging. In 1932, when the country was in the grip of the Great Depression, CPC's sales figure jumped 70 percent....
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