industry analysis
...f Jung's strategies for new Avon are reengineering its distribution channel, expanding its market and making innovative new product line. Jung started a makeover by adding a store-within-a-store strategy at a major mass retail such as Wal-Mart Stores Inc. or Kmart Corp. to company's old door-to-door traditional retail. Jung created a separate line of products for these stores attracting younger customers who had never before bought an Avon product. Since Avon is in a mature industry, restructuring distribution channel is a good strategy which fit its industry features. Store-within-a-store strategy builds more flexible capability delivering Avon experience to new consumers, based on its existing competencies of door-to-door retail. This new capability makes Avon's competitors harder to imitate and makes Avon itself more adaptable to changing consumer requirements. Second key element of Jung's strategies is market expansion. Avon goes for international markets to Latin America, Europe and Asia. Also, Jung earmarked $60 million to build a Web site that allows "eRepresentative" to sell more products online and earn commissions. This investment on Web will help the company expand its market internationally. As domestic market matures, seeking to enter foreign markets is a great strategic move for Avon because there is still an attractive growth potential in emerging-country markets. In addition, Avon's skills and reputation are advantages to be a multinational company. Third, Jung focused on innovation of products. This is related to building a new image of Avon as glamorous and innovative products, when Avon considered being commodity-like at that time. Jung d...