The success of personal selling system internationally as practiced by AVON, had convinced PT AVON INDONESIA that the system would also work as in Indonesia.

However, it has come to the attention of PT AVON INDONESIA management that their dealers activity level was not as high as management predicted. PT AVON INDONESIA management would like to improve the prevailing condition.



The purpose of this study is to help to explore the possible causes, identify the real causes that lead to low dealer's level of activity and recommending the proposed solution.



From the exploratory survey, we found that motivation, skill, environment and satisfaction as the possible factors that might relate to the dealer's activity.

Further survey indicate that dealer's skill and satisfaction have direct relationship with dealer's sales. Dealer's skill were developed through AVON's in-house training and guidance received from their FGCs. Guidance the most widely subject given by FGCs, whereas skincare knowledge is the least given. In fact, the dealers chose skincare as the first rank of training required, followed by how to built customer relationship and salesmanship.



FGCs, who are largely depends on their dealers sales performance, motivate and develop their dealers skill. In order to do that, they also require a training. FGCs rank how to built FD relationship as the first, followed by skincare and new product knowledge.



Therefore, in order to improve dealer's and FGC's performance, AVON has to conduct additional gradual training covering the subjects mentioned above according to their ranking.



Dealer's satisfaction factors that have relationship with sales performance is branch's service, which covers order processing time and product availability. Order processing time should be reduced in order to reduce order waiting time, because order waiting time comes out to be a large percentage of total time they spent.



Product availability should be improved by improving forecasting system. Historical data and market survey results could be used to help forecast the demand and the market trend.



Research location: PT Avon Indonesia

Supervisor: James L. Agee III

Accepted: August 1991