1. A project by: HD Consulting Stephanie Hammond and Denise DiLissio

2. This is the company that knows the value of a perfect lip, but still opens its mouth and Speaks Out against Domestic Violence.
BEAUTY

3. Perfume bottles became collectibles

4. Perfume bottles became collectibles

5. Perfume bottles became collectibles

6. Take Notes!

7. Video Quiz Avon Foundation for Women
What is the name of the foundation featured?
Avon Foundation for Women
What are the two causes spoken about?
Breast cancer and violence against women
*now includes global emergency relief*
What celebrities spoke about Avon?
Christy Turlington, Patrick Dempsey, Reese Witherspoon, Melissa Ethridge
How much had the foundation raised by the airing of this video?
800 million dollars
What was the foundation’s goal by 2012?
1 billion dollars *they raised 910 million*

8. Executive Summary
Avon is a global manufacturer and marketer of beauty and related products.
Avon was founded in 1886 by David McConnell.
Avon is headquartered in New York, NY.
Avon employs approximately
42,000 employees.
Avon has 6 million+ active independent
sales representatives.

9. Executive Summary Leader in global beauty Women's choice for buying
Avon's mission is focused on six core aspirations the company continually strives to
achieve:
Leader in global beauty
Women's choice for buying
Premier direct-selling company
Most admired company
Best place to work
To have the largest foundation dedicated to women's causes: Be a
committed global champion for the health and well-being of women
through philanthropic efforts, with a focus on breast cancer, domestic
violence and women's empowerment.

10. Timeline
1886
Mrs. P.F.E. Albee a 50 year old housewife becomes the first sales representative
1902
California Perfume Company has 10,000 representatives
1953
Avon’s first television advertising is launched
1928
CPC uses AVON name on everyday products
1939
California Perfume Company is renamed AVON
1920
Sales top $1 million for the first time
1932
Company moves from a monthly campaign to a three-week selling cycle and reduces prices on specific products for each campaign.
1886
Avon is founded as the California Perfume Company by David H. McConnell
1948
Sales surpass $21 million
1895
CPC opens manufacturing headquarters in Suffern, New York
1914
Company expands internationally
2006 – Avon wins direct selling licesnse in China
2007 – sales hit 2.62 billion. By 2008 sales hit 10 billion through acquisitions. Silpada jewelry and ……
2011 – Jung steps down as CEO but stays on as executive chairman citing her role in “motivating” the troops.

11. Timeline
1955
Avon starts the Avon Foundation in the U.S.
2001
Avon launches its beComing line in J.C. Penney Stores; the venture ends in 2003
2006
Avon wins first direct selling license in China
1996
Avon is the world’s first beauty company to launch an e-commerce site
2003
Avon launches mark., its brand for young women
1972
Sales reach $1 billion
1954
The “Ding Dong, Avon Calling” campaign launches and runs through 1967
1957
The number of Avon Representatives grows to 100,000, with the company breaking the $100-million sales mark
1978
The number of Representatives reaches one million and sales top $2 billion
1999
Avon names its first female CEO: Andrea Jung
2005
Avon announces first restructuring
2006 – Avon wins direct selling licesnse in China
2007 – sales hit 2.62 billion. By 2008 sales hit 10 billion through acquisitions. Silpada jewelry and ……
2011 – Jung steps down as CEO but stays on as executive chairman citing her role in “motivating” the troops.

12. Timeline
2008
Avon says a whistleblower alleges violations in China of the Foreign Corrupt Practices Act
2009
Avon has more than 6 million Representatives;
Management says it will restructure again
2011
AVON CELEBRATES 125 YEARS OF EMPOWERING WOMEN
2012
Avon names new CEO: Sheri McCoy
Initiates cost savings plan to stabilize the company
2012
2012
Avon receives an unsolicited takeover bid from fragrance company Coty
2008
Avon has more than $10 billion in sales
2011
Company says it is under investigation by the SEC for FCPA violations; announces the company is beginning search to replace Jung as CEO
2006 – Avon wins direct selling licesnse in China
2007 – sales hit 2.62 billion. By 2008 sales hit 10 billion through acquisitions. Silpada jewelry and ……
2011 – Jung steps down as CEO but stays on as executive chairman citing her role in “motivating” the troops.

13. Marketing Analysis Through the eyes of the consumer 5 P’s of Marketing
Brand Strategies
Social Media Marketing
Perceptual Map
Brand Prism

14. Survey/Focus Group - Conducted with 10 women ages 29-72
What do you think Avon’s biggest strength is?
A lot of products to offer
Well known brand
Been around long time
Buying online
Products/price
Quality and price of products
Customers are very loyal
What do you think Avon’s greatest downfall is?
Not enough reps in area
Not marketing towards the younger crowd
Old company – people think of Avon for older people
Too much novelty products
Probably most think its their mother’s products
Lack of advertising or not as much
Catalog sales only

15. 5 P’s of Marketing

16. Product Makeup Skincare Bath & Body Fragrance Hair Care Jewelry
Fashion
Home
Children
Men

17. Price Promotion Individual direct selling Catalog distribution Samples
From $0.99 to $60.00 for products
Average cost of catalogs = $20/month for representatives
Samples and door bags are an extra cost for representatives
Avon charges representatives $0.37 per customer that you have
Promotion
Individual direct selling
Catalog distribution
Samples

18. Potential Representatives
Place
Direct selling from Avon representatives
Online option from Avon
Online directly from representative*
Brick and mortar stores
Potential Representatives
Avon’s greatest asset
Word of mouth
Immediate sign up on website

19. Brand Strategy

20. 3 Pillars of Avon Global Brand
Women Empowerment, Sustainability, Philanthropy
Global Brand
Operates in over 100 countries with over 6 million active representatives
Latin America is top selling region followed by Europe, Middle East and Africa
North America comes in third

21. Red Ocean and Blue Ocean Strategy
Originally 100% Blue Ocean as they created new market space and were a game changer, but now has competition
If more than one representative are within close proximity of each other, it is red ocean strategy between them
Central Route to Persuasion
Initial purchases require more thought as you have to consciously find a representative (in person) to make a purchase
Multi-segment Strategy
Mass marketing – no differentiation in how products are offered
Offers many different types of products in a wide price range
Offers products to women, children and men
Relationship Marketing
Encourages lifelong relationships between representatives and their customers, and therefore, with Avon

22. Social Media Analysis

23. 1.1 million likes on main page Multiple pages for different countries
Vibrant & engaging equaling many picture shares
Showcases wide range of products

24. Over 51 thousand followers Posts daily
Moderate amount of retweets
Vibrant & engaging

25. Over 76 thousand followers Over 35,000 employees linked
A plethora of information
Only five recommendations

26. Over seven thousand followers Over 931 thousand video views
Beauty tips and behind the scenes
Avon seller videos as well

27. Conservative
Luxury
Affordable
Sexy

28. Brand Prism

29. What For Whom Against Whom When Animal Testers Everyday Use Mary Kay
*Color cosmetics, skincare,
fragrance, fashion and
home products
*Direct Selling
*Sherry McCoy
*Empowering Women
*Sustainability
*Philanthropy
*“The Avon Lady”
For Whom
Women 16 & up
Low Middle and Middle Class Incomes
Recession Conscious women
Relationship/Consultation Seeker
Entrepreneurial Go-Getters
Stay-at-home Moms
Feminists
Activists
Against Whom
Animal Testers
Mary Kay
Masculine Men
Domestic Violence Offenders
Mercenaries
When
Everyday Use
Seasonal Purchases
Planned Purchases

30. Financials 2006 – Avon wins direct selling licesnse in China
2007 – sales hit 2.62 billion. By 2008 sales hit 10 billion through acquisitions. Silpada jewelry and ……
2011 – Jung steps down as CEO but stays on as executive chairman citing her role in “motivating” the troops.
In August, the company said its second-quarter net income fell 70%, hurt by the stronger dollar and lower global demand.

31. Financials 2006 – Avon wins direct selling licesnse in China
2007 – sales hit 2.62 billion. By 2008 sales hit 10 billion through acquisitions. Silpada jewelry and ……
2011 – Jung steps down as CEO but stays on as executive chairman citing her role in “motivating” the troops.
In August, the company said its second-quarter net income fell 70%, hurt by the stronger dollar and lower global demand.

32. Financials Billions 2006 – Avon wins direct selling licesnse in China
2007 – sales hit 2.62 billion. By 2008 sales hit 10 billion through acquisitions. Silpada jewelry and ……
2011 – Jung steps down as CEO but stays on as executive chairman citing her role in “motivating” the troops.
In August, the company said its second-quarter net income fell 70%, hurt by the stronger dollar and lower global demand.

33. Financials Millions 2006 – Avon wins direct selling licesnse in China
2007 – sales hit 2.62 billion. By 2008 sales hit 10 billion through acquisitions. Silpada jewelry and ……
2011 – Jung steps down as CEO but stays on as executive chairman citing her role in “motivating” the troops.

34. Brand Difficulties

35. Avon has lost it’s magic throughout the years because of technology.
They were the first beauty company to launch an e-commerce site (1996).
Online selling takes away from its heart. “Ding dong, Avon calling.”
Inconsistent social media strategies.
Signs of brand confusion.

36. Avon’s global ambassador and Honorary Chair for the Foundation for Women, Reese Witherspoon, has had some recent bad press.
She is the face of the Avon breast cancer walks in North America.
Avon needs a celebrity that embodies natural beauty that is enhanced by Avon products, and is wholesome in the eyes of the consumer.

37. Avon’s reputation has been tarnished and leadership is unproven
Avon is being investigated to determine if they paid bribes in China and other countries
Avon predicts they will incur a loss (pay substantial fines)

38. Avon shareholders sued Avon for not acting in their best interest
Coty offered to acquire Avon for $10.7 billion, or $24.75 a share
At the time of the offer, Avon shares were $20.96 a share, giving the company a market value of about $9 billion

39. Significant decline in sales force of representatives
Number of active representatives declined 8% to about 420,000
Too much pressure on current representatives to find new ones.
Nickel and diming representatives.
Survey results to “Why do you no longer purchase from Avon?”
Friend stopped dealing
No reps in area
Out of sight out of mind
Don’t have seller close by
Not easily accessible

40. Recommendations

41. Enhance Reputation, Ethics Programs and Training
Externally - Rebuild image through advertising that builds on the image of AVON that is well-known for empowering women
Internally - Avon enhance their ethics and compliance program and expand their compliance-related training to ensure employees understand the program and the importance of compliance take out
Convince Shareholders the Decision Not to Sell was Considered
Build trust with their own shareholders through their performance that helps to grow the business

42. Leadership needs to prove itself
Stop trying to be what they are not and focus on their roots. They were successful when they sold door to door. These face to face relationships touched peoples hearts.

43. Survey results to “How can Avon boost its visibility or gain you as a customer?”
More samples, advertise more, have home parties
New campaign to bring younger generations in
Sell in stores
Somehow market to younger
Online directly
More marketing online
Make it easier to purchase, walk out with same day purchase
Target younger generation, available in retail stores

44. Increase overall Brand Presence
This would be a strategic re-launch of the why Avon began
Market to those that want a personal experience with shopping that technology has strayed away from
Launch a commercial campaign to gain more representatives
This increases brand awareness for the Avon name
Use You Tube, Vimeo and other video sites to post tips for reps
Publicize the good that the Avon Foundation for Women does
Have a more consistent and persistent social media strategy
Have representatives be the “eyes and ears” of the company
Avoid brand image confusion, by continuing to emphasize what Avon is known for

45. Invite, Inspire, Inform Revamp rules for the representatives
Require a number/name of representative when ordering online
Stop nickel and diming
Incentivize representatives who continually increase sales or have a higher than average rate by giving them catalogs and samples
Do not charge the customer fee when that customer consistently orders from that representative over the span of two years
Encourage blue ocean marketing strategy by seeking out areas (zip codes) where representatives do not exist
Design a program for zip codes that currently have multiple representatives so that the competitiveness does not overshadow the Avon name
Invite, Inspire, Inform

46. Celebrity pair with Taylor Swift.
Taylor Swift is a hub for followers.
Gain more North American exposure.
Gain more younger buyers.
Partner with current Avon spokeswoman, Salma Hayek.

47. Factoids 200+ scientists and breakthrough
Globally, 4 Avon lipsticks and 2 Avon mascaras are sold every second.
Avon has 90% brand recognition in most major markets around the world
Avon is the largest corporate supporter focused solely on women’s issues across the globe.
Factoids
Avon is one of only a handful of companies to have been on the Fortune 500 list every year since the list’s inception
200+ scientists and
technicians work on every
breakthrough

48. Questions/Comments

49. Research Citations

50. Image and Video Citations