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Essay / Research Paper Abstract
This 8 page paper is made up of a PowerPoint presentation and notes to accompany the slides. The presentation examines the way in which Avon use network marketing, the advantages of this type of operations and challenges that the company faces to the networking strategy. The bibliography cites 6 sources.
Page Count:
8 pages (~225 words per page)
File: TS14_TEavonnet.rtf
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Unformatted sample text from the term paper:
The business model of Avon is one which is based on networking, the employment of a large number of independent distributors which sell and distribute the goods which Avon develop
and manufacture. The agents start out by selling to family and friends and then extend their network by making contacts from those they meet and using them as a center
of influence. This is a well development model of direct sales which is both cost effective as the agents are not employees
so many of the overheads and liabilities associated with a large sales force are reduced. This is also a model that can be used globally as it is able
to overcome issues that may be present in the infrastructure of down line supply chains and can help overcome cultural issues in the way that the goods are sold. It
is also a system which is not limited by the usual business constraints, traditional companies will expand by increasing levels of investment, Avon can expand with the agents themselves making
the investment of time and resources due to the way the hierarchy operates and how team leaders can gain income from the sales that their team makes. Avon encourages the
agents to see the development of sales as the development of their own business. In total Avon has 3.9 million representative located across 145 countries (Cohen, and Roussel, 2004). The
system is well established and is made up of a hierarchy, where there are agents, and then there are team leaders that will be in place to train and support
sales representatives that will sell the goods though networking (Avon, 2008). There are promotion opportunities as there will be the opportunity for growth and for sales managers to train and
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