The company's founders and senior managers however feared this would make the company less agile and able to respond to market requirements (Grammenou, 2009).
Demographic Analysis
There have been many socioeconomic and demographic changes that have affected Avon's business model in the last two decades. The greatest socioeconomic force affecting them today is the need for many women to work full-time jobs to contribute to their household's income. This has drastically changed the company's distribution model as there are fewer women to work as part of their sales force. The shift in socioeconomic status is also one that has made competition with stores even more focused and aggressive, as retailers have the advantage of being more of a product aggregator than product developer. Their distribution model is shifting significantly as a result.
Increasing the urgency of the decision was the fact that demographic markets were changing rapidly, as were the preferences and wants of women for beauty care products. This pace of demographic change was occurring at varying levels within the nations Avon operates in, yet all of them combined sent a clear message that Gen X and baby Boomer product needs could far outpace any other category for the foreseeable future (Tarquinio,...
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