It relied upon its independent sales representatives, the famous "Avon ladies" to sell its products. In fact 98% of the company sales is generated via direct sales. This sales approach had also been successful in the Latin America and Asia market. However, the same could not been said for the American market. Based on the statistics provided by the industry tracker, Kline & Co indicate that direct sales model is no longer an effective model for the American market. The situation worsened further as three-quarters of American women work outside the home. Therefore, Avon's traditional "ding-dong, Avon calling" direct sales model need to be revitalised to tap on the working American women market.
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.
ORGANISATIONAL CULTURE.
Understanding and accessing the organisation culture can mean the difference between success and failure in today's fast changing business environment because organisations are bound by its culture. The culture of an organisation speaks of the values, beliefs and attitudes that are shared by the members (employers and employees) of the organisation. It shapes the behaviour and expectations of each member of the organisation. Schein (1992), one of the most prominent theorists of organisational culture, defines organisational culture as "A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to new considered valid and therefore, to be taught to new mambas as the correct was to perceive, think, and feel in relation to those problems".