Avon Products Inc. was founded in 1886 as the California Perfume Company by David H. McConnell. It started by offering women the opportunity to sell beauty products directly to customers. Over time, Avon grew and expanded internationally. Some key events include opening the first international office in Canada in 1914, changing its name to Avon Products Inc. in 1939, and having its first television advertising in 1953. Today, Avon has a global presence and aims to be the beauty company most women turn to worldwide through its direct sales model. However, Avon has faced challenges in recent years including declining revenue, an aging customer base in North America, and increased competition.

1. AVON PRODUCTS
INC.
Blaise Rice, Jeffery Yoklic, Kylie Butler, Lauren Payne, and Whitney Williams

2. How Avon Got Their Start..
• Founder David H. McConnell
• Avon started in the late 1800’s but was
originally called the California Perfume
Company.
• McConnel was the first to offer women the
opportunity to sell his products.
• He wanted to give women the opportunity to
be their own boss.

3. Timeline
1886 California Perfume Company founded in New
York City
First Avon sales representative- now known as the
direct-selling method
First product produced called the Little Dot Perfume
Set included five fragrances
1896 First Catalog issued
1897 First laboratory built- Suffern, NY
1905 First print ads published in Good
Housekeeping Magazine
First color catalog
1914 First international office opened in Montreal,
Canada.
1937 David H. McConnell died and David H.
McConnell, Jr was named head of chairman
1939 Name changed to Avon Products, Inc
1944 W. Van Alan Clark became the new company chairman
1953 First television advertising launched
1964 Avon listed on New York Stock Exchange
1967 W. Hicklin became the company chairman
1971 Profitable Jewelry line started
1972 First time sales top $ 1 billion
1979 Purchased Tiffany & Company
1984Sold Tiffany & Company
1986 Avon celebrates its centennial
1989 First major cosmetics manufacturer to announce end to animal
testing
1991 Avon becomes the first beauty company to bring the alpha
hydroxy technology
1992 Avon U.K. launches the company’s first women’s health care
initiative to raise funds and
Awareness for breast cancer.

4. Timeline Cont.
1993 Avon launches its first women’s health care initiative program in the U.S. with the “Breast Cancer Awareness Crusade”
1999 First ever global advertising campaign themed ‘Let’s talk’
1999 Andrea Jung becomes the first female CEO of Avon
2000 Avon signs tennis greats, Venus and Serena Williams, to be the company’s first global celebrity spokespersons to promote Avon
2004 Avon launches its first-ever Men’s Catalog, called M
Avon foundation launches new domestic violence program, Speak Out Against domestic Violence with celebrity spokesperson Salma Hayek
2005 Avon is the first company to be selected by the Chinese government to test direct selling
The first fragrance in the newly-launched Today. Tomorrow. Always trilogy wins a FiFi Award
2006 Avon forms creative partnership with celebrity makeup artist Jillian Dempsey
2008 Sales hit the $10 billion milestone
2012 Avon reported the number of North American reps fell 8%
2014 Avon announced that they are eliminating the hazardous and toxic chemical triclosan

5. Mission and Vision Statement
◦ Mission Statement: “We will build a unique portfolio of Beauty and
related brands, striving to surpass our competitors in quality,
innovation, and value, and evaluation our image to become the Beauty
Company most women turn to worldwide”
◦ Vision Statement: “To be the company that best understands and
satisfies the product, service, and self-fulfillment needs of women-
globally”

6. Strategy
◦ Avon has values and principles that they follow as a company
◦ Values: “B-I-R-T-H”
◦ Principles: provide, serve, render, give, share, meet, and
maintain
◦ Avon is also strategic within their operations

7. Operating
◦ Avon has company owned facilities and their party manufacturers
◦ Avon commits the same universal standard of quality and safety to all of their
products regardless of where they are manufactured or marketed, ensuring that
customers worldwide are receiving the same product quality, efficacy, and safety
◦ Supplier Code of Conduct
◦ Green Buildings, water conservation, distribution, emissions reduction, and energy
conservation
◦ No animal testing
◦ “Avon Paper Promise” and “Avon Palm Oil Promise”
◦ Packaging, recycling, and waste reduction

8. 4 P’s
◦PRODUCT
◦PRICE
◦PLACE
◦PROMOTION

9. Financials

10. Period Ending Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Total Revenue 6,160,500 7,648,000 8,496,800
Cost of Revenue 2,445,400 3,006,900 3,172,800
Gross Profit 3,715,100 4,641,100 5,324,000
Operating Expenses
Research Development - - -
Selling General and Administrative 3,543,200 4,206,800 4,742,100
Non Recurring 6,900 - 42,100
Others - - -
Total Operating Expenses - - -
Operating Income or Loss 165,000 434,300 539,800
Income from Continuing Operations
Total Other Income/Expenses Net (21,800) (124,700) (144,000)
Earnings Before Interest And Taxes 143,200 309,600 395,800
Interest Expense 120,500 108,800 117,900
Income Before Tax 22,700 200,800 277,900
Income Tax Expense 819,200 545,300 210,400
Minority Interest (3,300) (3,700) (4,500)
Net Income From Continuing Ops (796,500) (344,500) 67,500
Non-recurring Events
Discontinued Operations (349,100) (40,400) (119,400)
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income (1,148,900) (388,600) (56,400)
Preferred Stock And Other Adjustments - - -
Net Income Applicable To Common Shares (1,148,900) (388,600) (56,400)
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11. Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Assets
Current Assets
Cash And Cash Equivalents 686,900 1,107,900 1,107,900
Short Term Investments - - -
Net Receivables 443,000 515,600 676,300
Inventory 624,000 707,700 967,700
Other Current Assets 587,200 904,800 689,300
Total Current Assets 2,341,100 3,064,500 3,441,200
Long Term Investments - - -
Property Plant and Equipment 766,900 1,036,800 1,393,300
Goodwill 92,300 249,300 282,500
Intangible Assets - - -
Accumulated Amortization - - -
Other Assets 679,200 1,246,200 1,375,300
Deferred Long Term Asset
Charges
- - -
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12. Liabilities
Current Liabilities
Accounts Payable 1,550,200 1,717,900 2,052,500
Short/Current Long
Term Debt
55,200 121,700 188,000
Other Current Liabilities 589,700 307,600 -
Total Current Liabilities 2,195,100 2,147,200 2,240,500
Long Term Debt 2,159,600 2,428,700 2,532,700
Other Liabilities 581,200 715,600 591,600
Deferred Long Term
Liability Charges
- - -
Minority Interest 13,900 15,500 17,400
Negative Goodwill - - -
Total Liabilities 4,949,800 5,307,000 5,382,200
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13. Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 187,900 187,600 189,400
Retained Earnings 2,448,100 3,702,900 4,196,700
Treasury Stock 4,594,100 (4,591,000) (4,581,200)
Capital Surplus 2,254,000 2,207,900 2,175,600
Other Stockholder Equity 1,366,200 (1,217,600) (870,400)
Total Stockholder Equity (1,070,300) 289,800 1,110,100
Net Tangible Assets (1,162,600) 40,500 827,600
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14. Comparison

15. ECON GEO …

16. Key Competitors
◦Mary Kay
◦Revlon
◦L’Oreal

17. 5 Forces Model

18. SWOT Analysis
Strengths
 Strong Brand Image
 Leading Position Gives Power to
Attract New Customers
 Popular Online Market
 Large Employment Base
 Pro-Environment
 No Animal Testing
 Multiple Retail Channels
Weaknesses
 Decreasing Revenue Growth
 Lack of Retail Stores
 Declining Operating Margins
 Advertising Cost
 Declining North American
Operations
 Low Market Share Compared to
Bigger Brands
 Outdated Technology
 Poor Marketing
 Customer Service Issues
Opportunities
 Identify Brand Development
Overseas
 Increase Upon Social Media
 Increase E-Commerce
 Going Green
 Geographic Growth
 Socially Conscious
Threats
 Easily Substituted
 Currency Fluctuation
 Competition
 Dependence on Third Party
Supplier
 Government Regulations
 Dependent on Others Needs

19. IFE
Strength Weights Rating Weighted Score
Strong Brand Image 0.12 4 .48
Leading position gives power to
attract new customers.
0.04 3 .12
Popular online market 0.06 3 .18
Large employment base 0.1 4 .4
Pro- environment 0.04 3 .12
No animal testing 0.04 3 .12
Multiple retail channels 0.06 3 .18
Weaknesses
Decreasing Revenue Growth .08 2 .16
Lack of Retail Stores .06 1 .06
Declining operating margins 0.04 1 .04
Advertising cost 0.06 2 .12
Declining North American
operations
0.06 2 .12
Low market share compared to
bigger brands
0.06 1 .06
Outdated Technology 0.06 1 .06
Poor Marketing 0.08 1 .08
Customer Service Issues 0.06 2 .12
Total
1 2.40

20. EFE
Opportunities Weights Rating Weighted
Score
Identify brand development
overseas
0.1 4 .4
Increase upon social media 0.12 3 .36
Increase E- Commerce 0.06 3 .18
Going green 0.06 4 .24
Geographic growth 0.12 2 .24
Socially conscious 0.08 3 .24
Threats
Easily substituted .1 2 .2
Currency fluctuation 0.06 1 .06
Competition .1 2 .2
Dependence on third party
supplier
0.08 2 .16
Government Regulations 0.08 3 .24
Dependent on others needs 0.04 2 .08
Total 1 2.60

21. TOWS
Matrix
Strengths:
1. Strong Brand Image
2. Leading Position Gives Power to Attract New
Customers
3. Popular Online Market
4. Large Employment Base
5. Pro-Environment
6. No Animal Testing
7. Multiple Retail Channels
Weaknesses:
1. Decreasing Revenue Growth
2. Lack of Retail Stores
3. Declining Operating Margins
4. Advertising Cost
5. Declining North American Operations
6. Low Market Share Compared to Bigger Brands
7. Outdated Technology
8. Poor Marketing
9. Customer Service Issues
Opportunities:
1. Identify Brand Development Overseas
2. Increase Upon Social Media
3. Increase E-Commerce
4. Going Green
5. Geographic Growth
6. Socially Conscious
1. Maintain and enhance environmental
awareness. (S5,O5)
2. Maintain and develop internet application to
increase sales (S3,O2,O3)
3. Have a new marketing program to increase
the number of people around the world that
are ecofriendly (S5, O1,O4,O5)
4. Improve traffic to social media through links
found on company website (S3,O2)
5. Portray and advertise more about their
“green buildings” (S5,O4)
1. Increase awareness in the effort to protect
the environment (W3, W8, O4)
2. Keep up to date with the latest social media
and technology to get your products seen
(W7, W8, O2)
3. Reduce advertising costs by using free social
media outlets (W4, O3)
4. Create multiple social media accounts to
advance marketing (W3, W8)
Threats:
1. Easily Substituted
2. Currency Fluctuation
3. Competition
4. Dependence on Third Party Supplier
5. Government Regulations
6. Dependent on Others Needs
1. Have incentives for employees to increase
sales (S4, T1, T3)
2. Advertise the ease and convenience of online
shopping (S3, T1)
3. Promote discounts/offers when customers
shop online( S3,T1)
1. Create new technology that will allow further
advantage over competitors technology
(W7,T3)
2. Create a program for auto-refill for customer
orders. (W7,T6)

22. SPACE Matrix

23. IE

24. Conclusion

25. Recommendations