Leadership style of Andre Jung

In an effort to reposition Avon’s flagging image, the Avon board of directors in November 1999 appointed Andrea Jung (a Chinese American) as its new CEO. With little experience, she has the daunting task of piloting one of America’s toughest consumer turnarounds. In her challenge to reposition the company, she also has to stabilise and motivate 3 million independent sales representatives in 137 countries across the world. Jung’s dilemma was: How could Avon develop new sales channel without alienating its famous sales representatives, the Avon ladies and undermining its existing sources of revenue?

In this highly dynamic business world, corporations need to be watchful of the elements of change from the external environment. Corporations’ survival is dependent on its

The biggest threat to her transformation plan is from the independent sales representatives. The important aspect of them is they are not employees of Avon. Their actions cannot be controlled, but Avon cannot ignore them because they are the backbone of its business. Jung with her oratory skills put forward Avon’s new vision and in the process gains their trust and support. She outlined a best-of-both-worlds strategy designed to grow Avon’s customer base without disenfranchising its sales representatives. In the new business model, she mentioned that Avon products would be distributed through five channels: its’ three million Avon ladies in 137 countries; major mass retailers, such as Wal-Mart Stores and Kmart Corporation; mall kiosks franchised to local Avon representatives; Avon centres and through company web site, Avon.com.

With that in mind, Jung unveiled the vision for Avon; the “ultimate relationship marketer of products and services for women” in September 2000. She planned to transform Avon into anything and everything for women. Jung knew that in order for her vision to succeed, she would need the support of the 3 million sales representatives. Her real test would be in developing new sales channels without alienating its famous sales representatives, the Avon ladies, and undermining its existing sources of revenue.

What Jung has created is not necessarily a perfect or lasting solution, but it is a bold and intelligent solution to the new realities of the business environment, one that adapts to the forces of the new economy and allows Avon to reposition itself into the 21st century.

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