Avon operates through 3 million representatives in 131 countries and seeks to convert offline representatives into eRepresentatives. Key challenges include integrating new technology vendors and platforms while communicating across business units. Avon launched personal websites for over 10,000 representatives in the first month, and estimates the new online model will reduce annual operating costs by $10 million by 2002. The approach takes a "channel inclusive" strategy of integrating online and offline sales while controlling the brand.

1. Avon Background Markets through 3 million representatives in 131 countries 500,000 representatives in US One of the most recognized consumer brands Competitive pressure to conduct business online Changing demographics, consumer shift to Internet

2. Avon Goals and Objectives Convert offline representatives into eRepresentatives while growing revenue and reducing costs Help representatives manage their business and increase productivity Build and extend consumer access Integrate new and existing sales channels with core business Provide a reliable and scalable technology platform Maintain control of the Avon brand

3. Representative Concerns and Needs Technology must be easy to use Websites must be cost effective Improve access by allowing their customers to order online Give their customers more choice Hardware and Internet access

4. Key Challenges Aggressive timeline Integration with third party platform Multiple technology vendors: Interface Design Systems Consulting Consumer Hardware Internet Service Provider Customer Care Communicating across Avon business and IT organizations

5. Avon Sites avon.com Main Corporate Site Support for finding eReps youravon.com eRep Sites Leadership Rep Sites Localization and Personalization

6. Avon’s Solution Representative web sites Shared control Seamless customer experience Back office integration Scalability Bundled hardware, Internet access, and portal service

7. Application Value Centralized Management Avon Corporate controls branding, product, and content choices … With local control Representative selects choices provided by Avon Content scanning Application hosting Publishing Customer support

8. Select Featured Products

9. Select Topics for Advice

10. Communicate and Recognize

11. Summary of Avon Approach “ Channel inclusive” strategy Integrates online with offline infrastructure Product and service delivery Supply and demand Customer touch points While controlling the brand Enables online and offline human relationships Control brand and content while providing the representative personalization capabilities

12. Summary of Results and Activities to Date Unveiling of eRepresentative program at Las Vegas convention: “Connect with Success” Direct mail and collateral distribution Seminars and Workshops on e-Representative program September launch of personal websites Over 10,000 representatives have created sites in the past month Estimated $10 million reduction in annual operating costs by 2002* *Source: The Wall Street Journal, September 28, 2000