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 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.

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 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
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 Avon products

 Make up
 Skincare
 Bath & body
 Hair care
 Jewelry
 fashion

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Avon’s Global Ambassador
Reese Witherspoon
Avon’s Global Ambassador and Honorary Chairperson
of the Avon Foundation for Women

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Avon as a Distribution Channel:
The Power of Direct Selling

 6.5 million representatives

 300 million customers

 1 billion brochures annually

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$1 Billion a Day

Avon is the
largest
micro-lender
in the world

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 Sales force
 Over $10 billion in sales
 World’s largest direct seller
 Fortune 300 company
 Represented in over 100 countries North CEE

America $1.6B

 90+% brand awareness in most major

China
$2.2B 15%
$.2B
20%

markets WEMEA
2%
Asia Pacific

$1.5B $.8B

 Listed among the top 100 brands in Latin America

14% 7%

$4.6B

BusinessWeek for almost a decade 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.

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 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.

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 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.

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 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.

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 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.

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 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
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 Award Winning Products…

Cosmopolitan 2010 Fragrance Allure Editors Choice Self Healthy Edison Innovation
Beauty Award of the Year: Award 2010: Beauty Award 2010: Award Winner 2011:
Award Winner 2010: • Patrick Dempsey 2 • ANEW Clinical Advanced • Smooth Minerals • Advance Techniques
• Advance Techniques Retexturizing Peel Lipstick Frizz Control Lotus Shield
Frizz Control Lotus Shield

Redbook SELF 2011 New Celebrity Self Healthy 2011 Fragrance of the
Award Winner 2011: Award Winner 2011: Fragrance of the Year Beauty Award 2011: Year Men’s Broad Appeal
• ANEW Platinum Cleanser • Healthy Makeup Award Winner: • Healthy Makeup Liquid and Best Packaging Men’s
Liquid Foundation • Outspoken by Fergie Foundation Broad Appeal:
• Herve Leger Homme

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 …Consistently Featured in the Press
Global Impressions from 2010 for Four Avon Products

1.4 billion impressions globally and counting…

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 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

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 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.

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THANK YOU

B. Saiprakash
18
MBA[IM]