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Avon Product Inc
Presented By:
Ammar Qureshi
Raja Dilawar Ayub
Awais
Introduction
• 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.
MISSION
• The Global Beauty Leader:We will build a unique portfolio of Beauty and related
brands, striving to surpass our competitors in quality, innovation and value, and
elevating our image to become the Beauty company most women turn to worldwide.
• The Women’s Choice for Buying
• The Premier Direct Seller
• The Best Place to Work
• The Largest Women’s Foundation
• The Most Admired Company
Proposed Vision Statement
• To be the company that best understands
and satisfies the product, service and self-
fulfillment needs of women
Avon products
• Make up
• Skincare
• Bath & body
• Hair care
• Jewelry
• fashion
Continue
Channel of Distribution
• Avon use direct selling.
• The company is the world’s largest direct seller with 5.4 million Avon representatives
in over 100 countries.
• In 2007, the company increased its investment in representatives by over $120
million.
Competitors
Mary Kay, Inc
Cont....
Revlon, Inc
Cont.....
• Avon is nearly eight times larger than Revlon.
• In terms of channel of distribution, Mary Kay, Inc. most closely resembles Avon
because both use a direct marketing approach.
• Avon has 42,000 employees worldwide, and Mary Kay has 5,000 and Revlon has
5,600.
• The revenues of Avon also far exceed those of its closest competitors, with Mary Kay
selling $2.40 billion and Revlon selling $1.35 billion in 2008 as compared to Avon’s
$10.37 billion.
Input Stage
IFE Matrix
EFE Matrix
CPM
Matching Stage
Internal External Matrix
Grand Strategy
Space Matrix
Con.....
Financials
Income Statement
Blance Sheet
Company Valuation
Projected Income Statement
Projected Balance Sheet
Historical Ratios
Projected Ratios
Decision Stage
QSPM
Cont....
Cont....
Cont...
Recomendation
• they need to establish intermediary foe sale like retailer or
distributor.
• and secondly they need sell thier product through internet because
they have already good brand image and customer realationship.
• this wii help to increas revenue.
Strategy
• They use two strategy in 2009.
• 1st Market Penetration
• 2nd is Product Development
Implementation
• Avon is implementing a 2009 restructuring program that includes
closure of two manufacturing facilities.
• The company continues to invest heavily in online search engines
and Internet carrier sites.
Conclusion
• On May 5, 2009, Avon Products Inc. reported first quarter 2009 total
revenue of $2.2 billion, which was 13 percent lower than that of
2008’s first quarter.
• For the second quarter of 2009, Avon’s revenues increased 5
percent in local currency, after the 3 percent increase in the first
quarter.
• For that second quarter, Avon’s revenues were up13 percent in Latin
America, 4 percent in North America, 8 percent in Western Europe,
6 percent in Central and Eastern Europe, 10 percent in Asia Pacific
and 52 percent in China.
Avon

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Avon

  • 1. Avon Product Inc Presented By: Ammar Qureshi Raja Dilawar Ayub Awais
  • 2. Introduction • 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.
  • 3. MISSION • The Global Beauty Leader:We will build a unique portfolio of Beauty and related brands, striving to surpass our competitors in quality, innovation and value, and elevating our image to become the Beauty company most women turn to worldwide. • The Women’s Choice for Buying • The Premier Direct Seller • The Best Place to Work • The Largest Women’s Foundation • The Most Admired Company
  • 4. Proposed Vision Statement • To be the company that best understands and satisfies the product, service and self- fulfillment needs of women
  • 5. Avon products • Make up • Skincare • Bath & body • Hair care • Jewelry • fashion
  • 7. Channel of Distribution • Avon use direct selling. • The company is the world’s largest direct seller with 5.4 million Avon representatives in over 100 countries. • In 2007, the company increased its investment in representatives by over $120 million.
  • 10. Cont..... • Avon is nearly eight times larger than Revlon. • In terms of channel of distribution, Mary Kay, Inc. most closely resembles Avon because both use a direct marketing approach. • Avon has 42,000 employees worldwide, and Mary Kay has 5,000 and Revlon has 5,600. • The revenues of Avon also far exceed those of its closest competitors, with Mary Kay selling $2.40 billion and Revlon selling $1.35 billion in 2008 as compared to Avon’s $10.37 billion.
  • 14. CPM
  • 29. QSPM
  • 33. Recomendation • they need to establish intermediary foe sale like retailer or distributor. • and secondly they need sell thier product through internet because they have already good brand image and customer realationship. • this wii help to increas revenue.
  • 34. Strategy • They use two strategy in 2009. • 1st Market Penetration • 2nd is Product Development
  • 35. Implementation • Avon is implementing a 2009 restructuring program that includes closure of two manufacturing facilities. • The company continues to invest heavily in online search engines and Internet carrier sites.
  • 36. Conclusion • On May 5, 2009, Avon Products Inc. reported first quarter 2009 total revenue of $2.2 billion, which was 13 percent lower than that of 2008’s first quarter. • For the second quarter of 2009, Avon’s revenues increased 5 percent in local currency, after the 3 percent increase in the first quarter. • For that second quarter, Avon’s revenues were up13 percent in Latin America, 4 percent in North America, 8 percent in Western Europe, 6 percent in Central and Eastern Europe, 10 percent in Asia Pacific and 52 percent in China.