“Ding – Dong” The Avon Lady Is Gone – #47
It is obvious that Avon has to be misleading potential investors by releasing PR in the WSJ on the 23rd & 24th of March that reads as follows – AVON CONSIDERS GETTING ITSELF BACK TOGETHER. Three years ago the company split into two – one was focused on Avon’s International Business and the other half on the Domestic business which was suffering badly.
Naturo Cosmeticos SA is considering purchasing Avon and I challenge each subscriber to identify a reason for doing so. Avon saw the light three years ago that it wasn’t fast enough to race in the changing marketplace and split the company. The idea to put things together again will face a totally new market focus requiring new initiatives. Last year’s sales showed that Avon had no marketing plan at all, and that the mass market for cosmetics and brands sold in drugstores and discounters had shifted to smaller rival competitive brands, -on-line- only with pricier options.
How important is planning to Avon? Had they (sales & marketing, board of directors, management) not seen the decline in sales over the years, that reflected a distinct Gender Shift from the environment of the 80’s & 90’s – the direct sales effort through the home was done for!! Why? There’s nobody home – Millenials don’t own homes, cars, both adults work, and don’t have children until later in life if ever. Where would Avon be today, if the Sales & Marketing team had understood this phenomenon – let’s say 15 years ago.
The realization by the Avon Lady not finding a suburban growth environment represented by groups of stay-at-home Moms who didn’t have access to the convenience of on-line shopping would have demanded a major distribution shift
to meet future Customer demands? Instead we are a lost giant stomping through the swamp misleading their potential buyers and trading at $3.06 a share and headed downward to reflect declining Sales. To think what could have been done if the energy of Avon had been harnessed and properly directed?
Please have that future planning meeting at your firm and identify future products, distribution channels, markets, trends and gender shifts. Remember, at Avon – It Started and Will End With Management.
Please forward this Blog to as many interested friend as you can muster in the hopes that this small example can kindle a spark that will awaken employees, Customers, stakeholders and most importantly Management.