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  1. 1. 1
  2. 2.  Formed by David McConnell in 1886 as the California Perfume Company.  Name changed to Avon in 1939.  100 products including perfumes, low-cost home and beauty products and personal care items like toothbrushes.  World’s largest seller of beauty products.  5th largest beauty company overall with annual sales of $5 billion.  2.8 million sales reps worldwide and .5 million in US. 2
  3. 3. Vision & MISSION Vision To be the company that best understands and satisfies the product, service and self-fulfillment needs of women - GLOBALLY MISSION The Global Beauty Leader The Women's Choice for Buying The Premier Direct Seller The Largest Women's Foundation 3
  4. 4. Avon products       Make up Skincare Bath & body Hair care Jewelry fashion 4
  5. 5. Avon’s Global Ambassador Reese Witherspoon Avon’s Global Ambassador and Honorary Chairperson of the Avon Foundation for Women 5
  6. 6. Avon as a Distribution Channel: The Power of Direct Selling  6.5 million representatives  300 million customers  1 billion brochures annually 6
  7. 7. $1 Billion a Day Avon is the largest micro-lender in the world 7
  8. 8. Sales force  Over $10 billion in sales  World’s largest direct seller  Fortune 300 company  Represented in over 100 countries  90+% brand awareness in most major markets North CEE America $1.6B $2.2B 15% 20% WEMEA China $.2B 2% Asia Pacific $1.5B  Listed among the top 100 brands in BusinessWeek for almost a decade Latin America $.8B 14% 7% $4.6B 42%  Sells four lipsticks every second  World leader in high-tech anti-aging skin care.  More products carry the Avon name than any other brand in the world. 8
  9. 9. Selling Process  Direct selling by women sales representative.  The leadership program allowed a rep to earn additional money by encouraging other women to become Avon Sales representative.  The Beauty Advisor Program  Avon ran 26 two week selling campaigns  Full color brochure featuring the products available for sale.  On an avg. each customer on a representative’s list ordered $20 worth of products per campaign  Avon provided 100% satisfaction guarantee. 9
  10. 10. Marketing Strategies  Mission of the company was to provide exciting and lucrative career opportunities for women  Avon Worldwide Fund for Women’s health  Annual Avon Breast Cancer 3-Day Walk  Spent very little on traditional advertising  According to a survey, 70% consumers buy Avon through a representative. 10
  11. 11. Other Strategies  Product innovation : Rapid, due to intense competition and product innovation  Differentiated Products: Products are differentiated through features, which tailored to specific needs.  Internet ( Online selling):  One of the most important drivers of change is the use of internet therefore the companies are focusing online selling in order to success in the personal care industry.  They are offering online samples and trials, tips, advisories for beauty.  Customer Preference:  The consumer buying habit is changing due to which the companies have to analyze the market constantly and develop new products according to the culture and the needs of specific customers. 11
  12. 12. Avon’s Research and Development Avon is the leader in the newest and most effective products through our commitment to research and development.  Here, the science of beauty is combined with social conscience:  Avon’s dedication to the safety and effectiveness of our products is legendary. Our $100 Million Global Research and Development Center in Suffern, NY introduces cutting-edge products.  With 300 scientists and technicians, it utilizes the highest technology of any research facility in the industry. In late 2011, a second R&D facility will open in Avon Shanghai. 12
  13. 13. Key Success Factors  Quality  Price  Distribution Channels ( Relations , various type)  Brand Image and loyalty  Product Innovation (R&D)  Marketing Strategies ( Target Segments)  Products Lines  Services 13
  14. 14. Award Winning Products… Cosmopolitan Beauty Award Award Winner 2010: • Advance Techniques Frizz Control Lotus Shield 2010 Fragrance of the Year: • Patrick Dempsey 2 Allure Editors Choice Award 2010: • ANEW Clinical Advanced Retexturizing Peel Self Healthy Beauty Award 2010: • Smooth Minerals Lipstick Edison Innovation Award Winner 2011: • Advance Techniques Frizz Control Lotus Shield Redbook Award Winner 2011: • ANEW Platinum Cleanser SELF Award Winner 2011: • Healthy Makeup Liquid Foundation 2011 New Celebrity Fragrance of the Year Award Winner: • Outspoken by Fergie Self Healthy Beauty Award 2011: • Healthy Makeup Liquid Foundation 2011 Fragrance of the Year Men’s Broad Appeal and Best Packaging Men’s Broad Appeal: • Herve Leger Homme 14
  15. 15. …Consistently Featured in the Press Global Impressions from 2010 for Four Avon Products 1.4 billion impressions globally and counting… 15
  16. 16. Improving the lives of Women Globally The Avon Foundation for Women, the world’s largest corporate-affiliated philanthropy focused on issues that matter most to women, was founded in 1955 to improve the lives of women. Through 2010, Avon global philanthropy has raised and awarded more than $800 million in more than 50 countries for causes most important to women. Today, Avon philanthropy focuses its funding on:  The Avon Breast Cancer Crusade  Reducing domestic and gender violence through the Speak Out Against Domestic Violence program  Providing support for relief and recovery efforts in times of major natural disasters and emergencies Boston Moscow Brazil San Francisco San Salvador Beijing 16
  17. 17. Avon Hello Green Tomorrow Avon Hello Green Tomorrow has two core missions:  to be internally authentic with our environmental stewardship across the business, and to engage our global network to drive green mobilization and behavior. The Hello Green Tomorrow fundraising and mobilization program launched in 2010, with over 50 countries joining the effort to help end deforestation.  Nearly $3 million has been generated to date to help restore the critically endangered Atlantic Rain Forest in South America and tropical forests of Indonesia. There are two recent policies that address key areas of the Hello Green Tomorrow mission: • As a significant user of paper, Avon is in a position to influence the supply and demand. The Avon Paper Promise set Avon policies and goals in 2010 to protect forests and reduce demands. Avon’s goals include the commitment to purchase 100% of its paper from certified and or post-consumer recycled content sources within ten years. Currently, 74% of Avon’s brochure paper meets these commitments. • The Avon Green Building Promise codifies Avon's commitment to green buildings. Under the formalized policy, all significant new or retrofitted Avon buildings will be constructed to green standards, targeting at least a LEED "Green" certification. To date, Avon green buildings include headquarters in the UK and US (New York), distribution centers in Brazil, Colombia and Ohio, and the new R&D Center in Shanghai, China. 17
  18. 18. THANK YOU B. Saiprakash MBA[IM] 18