SWOT Analysis
Assignment # 2 –SWOT Analysis / FINAL DRAFT
Task: You must perform a SWOT analysis of the specific Case Study that you have been assigned. Use your Analyzing a Case Study document and SWOT Checklist to help guide you through the process. Remember: Some of the information you will need to perform your SWOT may not be present in the case study. You must rely on your research on your particular company or organization to complete the SWOT analysis.
- Introduction:
Avon is a company established in 1886 by David McConnel. He hired his housewife to start selling perfumes from house to house in Winchester. Avon used a similar marketing strategy for the next century to hire women who need flexible working hours to generate extra revenue. The approach adopted created success because the women were accustomed to their neighborhood. With this strategy, the women were able to generate sales because they made friends who became customers. After a period, the company over three million sales representatives globally, and annual revenue was close to six billion dollars. As a result, it is essential to provide a SWOT analysis of the company.
- Identify Internal Strengths & Weaknesses
The company has a clear targeted segment- The description above uses local women as sales representatives to target women who may need perfume. As such, they create friendship, which is essential in luring them to buy Avon’s products. The preferences have been given to the women, which is a way of ensuring empowerment.
Excellent relationships with stakeholders- The organization understands that its primary way of making sales is through direct marketing, where it works to ensure that they remain satisfied. As such, the sales representatives as expected to have a personal relationship with local women to lure them into buying products. It understands that women have more disposable income to purchase beauty products; however, they have less time. As such, it has been able to update its image in the United States, enabling it to reach a high number of customers who were not aware of the company’s products. An excellent relationship with customers may ensure increased satisfaction (Nizam et al., 2020).
The creation of new channels is also another strength. As such, it has been able to provide its products without the need for a sales representative. For instance, it adopted direct mails, fax, and telephones to get directly to customers. Besides, it has involved the use of online sales effective for the management of the business. Because of these efforts, there was an increase in the number of users to three hundred thousand. The customers were also able to request if they can visit the sales reps of the organization. Over the period, the organization has established an excellent track record of developing new products.
The organization has experienced some weakness. For instance, it had an agreement with the upscale cosmetic line beComing even though it was never successful. There has been an increased expectation from the customers; however, the sale of nail polish, lipsticks, and perfumes have not met the expectations (Howell et al., 2015).
- Identify External Opportunities & Threats
The threat facing the company is that there has been a notion that its products are for mothers/grandmothers. Because of this perception, the company has seen an opportunity to use young people as sales representatives to overcome this perception and enable young women/girls to start buying the products. Besides, there has been a new product line for the teens, which has Mark Label. Also, there is the development of new methods, which can be essential in enabling the company sales representatives to reach the traditional market of ladies who are age between twenty-five and fifty years. The female teenagers are also a target for the company. Another opportunity is making sales through online portals, which is used plus the direct deals made by women. As such, it will be an opportunity to increase sales and improve cost-effectiveness. The provision of www.avon.com enables customers to look for new products on the site and make orders for promoted products. Besides, customers using the online platform can get information about the products and sales reps. The website has created an opportunity for the company to involve sales reps on its website. They have been providing information to customers about promotions and new offerings of products. Another threat that the organization is facing is that its competitors are committed to using the internet or the web’s power. As such, the company has been working hard to ensure an increase in the platform’s use. It launched its website in 1997, in a low-key manner. There was fear that the sales rep would diminish because of the increased use of the internet. As a result, the cautious approach became a threat to the business, as it has not taken the lead in online platforms. As such, its competitors that adopted the use of e-commerce have not faced similar constraints. They have captured the bulk of the online market, which is more than one billion per year.
- SWOT Analysis and Evaluation
The primary strength of the business is to understand its customers. As a result, the company has used direct sales by employing women from local communities to create a personal relationship and lure them into buying Avon’s products. It is one of the best marketing strategies that were essential for the business’s growth and success. However, the use of sales reps started diminishing with the introduction of online platforms, creating the organization’s need to capitalize on the web’s power. However, the organization was affected since it was cautious about using the internet, affecting its sales reps. Its competitors were not involved. The company has been forced to deal with the negative perception that its products are for mothers and grandmothers. In turn, it has created an opportunity for the company to start using young females as sales reps.
- Recommendations
The organization should increase its sales through online platforms plus the use of sales reps. It has been successful for competitors. For the organization to compete against traditional/online retailers, it must ensure high-quality products.
References
Howell, A. L., Novack, C. D., Stagg, A. M., Patel, S., & Rubinson, E. H. (2015). U.S. Patent Application No. 14/282,311.
NIZAM, R. F. B. R. S., RIDZUAN, N. I. B. M., ZAMZURI, A. N. B., & SANDIMON, I. A. B. (2020). DETERMINANTS OF BRAND LOYALTY TOWARDS AVON PRODUCT.