...A REPORT ON AVON PRODUCTS Submitted to: Submitted by: Mr. Vikas Anand Neha Sharma Faculty, LPU RR1002B37 11009270 COMPANY PROFILE Avon Products, Inc. (NYSE: AVP) is a US cosmetics, perfume and toy seller with markets in over 140 countries across the world and sales of $9.9 billion worldwide as of 2007. AVON PRODUCTS was founded in 1886, Inc. (Avon) is the largest direct seller of beauty and beauty- related products. With $10.7 billion in annual revenues in 2008(up 8% from 2007), Avon and its approximately 42,000 associates now serve valued customers in more than 100 countries worldwide. Our primary distribution channel is direct selling by our more than 5.8 million Avon sales representatives. Together, these ”Avon ladies” as they are affectionately known, help us to reach millions of customers around the world and handle upwards of one billion transactions annually. Company style Avon Products is a multi-level marketing company. The company's chairman and CEO is Andrea Jung, who was promoted to the position in 1999. She has completed a decade as CEO and is the longest tenured female CEO among Fortune 500 companies. Avon uses both door-to-door sales people ("Avon ladies," primarily and a growing number of men) and brochures to advertise its products. In the United States, products may be found through Representatives...
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...AVON PRODUCTS, INC.: DEVELOPING A GLOBAL PERSPECTIVE INTRODUCTION “When the history of this organization is written,” noted James E. Preston, chairman and chief executive officer of Avon Products, Inc., in February, 1993, “a meeting last June in Florida of 60 managers from around the world may turn out to have been a watershed event. Our four days of brainstorming, debate and discussion brought to an end two years of research and examination of our basic businesses, and launched us on a new way of thinking about and managing those businesses.” Preston was excited about the new direction taking shape at Avon. The past several years had been difficult for the organization. Hostile takeover attempts plagued the firm during the 1980s. Avon sales volume in the United States and international markets showed little or no growth. Profit margins on many products declined due to price discounting by competitors. Turnover rates of sales representatives had increased. The corporate debt was referred to as “staggering” at $1.13 billion or 82.5% of total capital in 1988 (See Appendices A, B, and C). Preston was confident, however, that 1993 would be a year of improvement for the company, both in financial performance and in the progress made “repositioning ourselves as the woman’s company for the Nineties and beyond.” Avon’s research department informed management that corporate problems centered around image and market access. That shaped the agenda of the June, 1992, meeting in Florida:...
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...I. BACKGROUND OF THE COMPANY Avon was founded in year 1886 by a New York book salesman named David H. McConnel and it was originally known as California Perfume Company. McConnell immediately began to build a door-to-door sales force for his new company and hired Mrs. P.F.E albee as its first sales agent. Its first office located in New York. By 1906, CPC had 10,000 representatives and selling 117 articles in 600 styles and package sizes. Montreal, Canada. In 1937, David Jr. became the president of the company and he changed the name to Avon Products Inc. in 1938 after the British town, Stratford-upon-Avon. Among the earliest products offered under the brand name Avon were a toothbrush, talcum and a vanity set. Now, the company home office moved to Fifth Avenue, New York. Since then, after 1950s, the company had expanded its business to Puerto Rico, Venezuela and in 1970s, expanded to Japan. In 1979, Avon purchased the jeweler Tiffany’s to add varieties to its line of products. In 1990, Avon became the first manufacturer company to stop using animal testing in its products. Now, Andrea Jung has become the first woman to be Chairman in 2001 and CEO of Avon since 1999. Avon Products Inc. is a cosmetics, accessories, and home products manufacturer and marketer. It has a greatly expanded product line that includes jewelry, wearing apparel, and home decor items. It now operates in North America, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and the People's...
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...Company Background Avon Products, Inc. is a US cosmetics, perfume and toy seller with markets in over 140 countries across the world and sales of $9.9 billion worldwide as of 2007. Avon Product is a multi-level marketing company. The company's chairman and CEO is Andrea Jung, who was promoted to the position in 1999. She has completed a decade as CEO and is the longest tenured female CEO among Fortune 500 companies Avon uses both door-to-door sales people ("Avon ladies," primarily and a growing number of men) and brochures to advertise its products. B. Research Design and Methodology This paper is primarily to formulate and recommend general strategies for the Avon Company in terms of competition in cosmetic and beauty industry. This will determine the company’s situation in the market. II. External Analysis A. Economic Forces Avon is the world's largest direct seller. Being an Avon Representative means you’re selling an iconic global brand while running your own local business. With Avon, you are in business for yourself but not by yourself. Avon's field management, as well as your fellow Representatives, provide mentoring, training and support every step of the way. Powerful Brand Avon Representatives around the world sell four lipsticks every second. Avon has 90% brand recognition in most major markets. In fact, two out of five women worldwide purchased an Avon product in the last year. And more beauty products carry the Avon name than any...
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...The Corporation STRATEGIES AVON CALLING -LOTS OF NEW REPS I t has been a cold spiing on the East Coasit, and une afternoon in late Aj)nl. the température drops and the wind picks up. But that doesn't koe|i Luz Stella Bongiovi from buttoning up her black wool coat and walking three blocks from her office to Knickerbocker Avenue in Bushwick, a workingciass section of Brooklyn. Standing in front of a jeans store on this bustling commercial strip, Bongiovi smiles warmly, offering passersby Avon catalogs in Spanish and English. The glossy pamphlets are crammed with cosmetics, but this ritual has become less about racking up sales of lipstick and face cream and more about a hunt for people, Hijeciiically futui*e Avon sales representatives. Bongiovi has a system that starts with the catalogs, someone takes one, she offers a free makeover, jots down her name and number, and soon schedules the beauty session. It's there that she has the time to pitch the benefits of selling Avon. Bongiovi has also run an ad in el diario/La Prensa, a New York Spanish-language newspapei'. It generated 7:i solid leads in six weeks. But no matter how she goes about (hiimming A sales-force makeover helps the company's U. S. turnaround up interest, she saves the best for last. Bongiovi shows fiotential recruits photocopies of her own biweekly checks for recruiting and managing other rejîs. Each one is for about S2,0(K). A]id that's before the $5,000 she averages for her own yales. That usually clinches...
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...MERT CAN ODABAŞ Avon Company Overview The first Avon lady book salesman was David McConell. He launched Avon Calling in 1886 as offering women cosmetics in the comfort of their own homes, however, perfumes and hand cream were not McConnell’s products. When he was sixteen, he started selling books door to door. In his travels as a book salesman, McConnell made two important discoveries. Firstly, he noticed that his female customers were more interested in the free perfume samples he offered than they were in his books. He made these fragrances himself to serve as door openers when he traveled from home to home. Secondly, McConnell saw women struggling to make ends meet and recognized in many of them natural salespeople who would easily relate to other women and passionately market the products his new company would first sell perfumes. Then, the choices of customers affected McConnell and he established the California Perfume Company in the NY. Today Avon, the company for women, is a leading global beauty company, with over $10 billion in annual revenue. As the world's largest direct seller, Avon markets to women in more than 100 countries through approximately 6.5 million active independent Avon Sales Representatives. Avon's product line includes beauty products, as well as fashion and home products, and features such well-recognized brand names as Avon Color, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals, and mark. Each representative distributes a product catalog...
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...from the Japanese market. Avon has withdrawn from the Japanese market in order to focus on the Chinese market. This is should be supported. Avon regarded China as a potential gold mine and China has enormous customers. If can build a successful strong market in China, then gains will in a rising trend. Although Avon in Japan is profitable but compared with China it is too small. Avon's global board of directors passed an agreement of layoffs and closes some manufacturing. This is also involved in the decision to withdraw from the Japanese market in order to focus on China in 2010. In the same year, Avon invested in Shanghai in its R&D facilities, develop new products to better meet the needs of consumers in Asia.（Janice Teal, 2010）Avon is confident in the Chinese market; it believes that only re-select full direct selling model then will turn deficits to profit on sale performance in China. Why Avon is failing in China? As the first of the five largest direct selling companies in the world, Avon was the inventor of the global direct sales model and entered China in 1990. It is the first large-scale foreign direct selling companies there. In order to adapted and opened Chinese Market. From 1998, it had to change the market model under the legal restriction in China. They begin to take the traditional retail model. Avon is selling its products in stores until 2006 when it got a license for direct sales from the government. Since 2006, Avon switch sales model from retail...
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...Avon Case Study Brief information about the domain of the company Avon is New York based 125 year old beauty product manufacturer that appoints the manufacture and marketing of beauty and fashion products, which has for over a century left a mark on millions of people throughout hundreds of countries The Company covers primarily North America, Latin America, Europe, and Asia Pacific. Avon’s products are classified into three categories: Beauty, Beauty Plus, and Beyond Beauty. The “Beauty” category consists of cosmetics, fragrances, skin care, and toiletries; “Beauty Plus” includes fashion jewelry, watches, apparel, and accessories; and “Beyond Beauty” comprises home products, gift and decorative products, candles, and toys. Avon earned a great reputation with its direct selling technique. This technique consists of selling the products directly to distributors or final consumers rather than trading companies or other intermediaries in order to accomplish greater control over the marketing function and to earn higher profits. The status of the company that led to its Determination that a change was necessary Several decades ago, Avon brought a perfect sagacity on many wives stayed at home, and some overprotective husbands didn't want them out shopping. Avon jumped up to the marketing arena with its growing fleet of representatives offering...
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...Le’Shundia K.Porter August 1, 2012 HRM 532 Assignment 2 Avon Products Dr. Sue Lowe Abstract Avon is the company that stands for beauty, innovation, and optimism, and above all for women. Avon Products, Inc. Avon is based in New York. The company appoints the manufacture and marketing of beauty and complimentary products primarily in North America, Latin America, Europe, and Asia Pacific. Avon’s products are classified into three product categories: Beauty, Beauty Plus, and Beyond Beauty. The Beauty category consists of cosmetics, fragrances, skin care, and toiletries; Beauty Plus includes fashion jewelry, watches, apparel, and accessories; and Beyond Beauty comprises home products, gift and decorative products, candles, and toys. Andrea Jung became president and CEO of Avon in 1999 and has totally makeover the company. Under her leadership, the company has updated its product line, launched new advertising, and created a new image. Avon’s sales have increased by 30 %, profits 40%, and the stock price has dramatically improved. Jung’s has been able to align the firm’s core capabilities with its strategic targets which has lead to outstanding results. It appears that Jung has been able to establish a clear vision for the firm that has been incorporated in every aspect of the firm’s operating system. This vision is shared by all employees and representatives of Avon motivate the company for continued success. Provide a brief description...
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...more products than they could carry in their sample cases. 1945 - The company launched one of the most memorable advertising campaigns of all time with the “Ding Dong Avon Calling” commercials. 1946 - With sales of $17.2 million and profit rising to more than $1 million, Avon became a publicly-traded company. 1959 - Avon launched operations in Western Europe, in the United Kingdom and Western Germany. 1969 - Avon entered Japan, expanding its operations to the Asia Pacific market. 2005 - Avon invested $100 million to build a new cutting-edge Global Research and Development Center in Suffern, NY, furthering the company’s commitment to stay at the forefront of the beauty marketplace, bringing leading-edge, technology-based products to women around the world. 2007 - Avon launched the Hello Tomorrow Campaign, a global marketing campaign that encompasses product and representative recruitment advertising; and the Hello Tomorrow Fund, which empowers women and improves society by providing individuals with cash awards that will allow them to pursue a project or initiative to better the lives of women of all ages. 2009 – Avon grew to 6.2 million Active Representative, as women worldwide recognized Avon could be the answer to a challenging global economic environment. BACKGROUND OF THE COMPANY Avon Cosmetics is one of the largest and well known companies producing cosmetics in the world and operating in direct sales system. Besides the importance of the supply structure...
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...GLOBAL ANALYSIS- AVON MGT 795: Section G11 Professor: Patrick Saparito Jennifer Callaghan J.R. Longino Rasa Navickaite Meghan Quinn Lia Torre Table of Contents EXECUTIVE SUMMARY/ABSTRACT 4 OVERVIEW 5 History and Background 5 Mission Statement 5 Social/Corporate Responsibility 6 BUSINESS ANALYSIS 8 Core Competencies 8 Management Structure 9 Current Objectives 9 Current Short Term Objectives 9 Current Long Term Objectives 10 Current Strategy 10 Advertising and Representative Value Proposition (“RVP”) 10 Product Line Simplification(PLS) 10 Strategic Sourcing Initiative 10 Enterprise Resource Planning System 11 Zero-Overhead-Growth 11 Restructuring Initiatives 11 SWOT Analysis 13 Strengths 13 Weaknesses 15 Opportunities 17 Threats 22 FINANCIAL INFORMATION 23 SUMMARY OF RECOMMENDATIONS 25 Technology and Social Media 25 Focusing on International Growth- the BRIC Countries 27 Brazil 28 Recommendations for Brazil 33 Russia 34 Recommandations for Russia 40 India 41 Recommendations for India 46 China 47 Recommendations for China 53 Conclusion ………….…………………………………………………………………………………….54 REFERENCES 55 AVON- A GLOBAL COMPANY FOR WOMEN EXECUTIVE SUMMARY/ABSTRACT Avon is a powerhouse in the beauty industry with over $10 Billion...
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...[Type the company name] | AVON PRODUCTS CASE STUDY 1 | [Type the document subtitle] | | Pamela | [Pick the date] | Abstract Avon Products, Inc was a leading global cosmetics company, with over $8 billion in annual revenue in 2005. As the world’s largest direct seller, the company marketed to women in 143 countries via five (5) million independent Avon Sales Representatives. Avon product lines included numerous popular brand names, and an extensive line of costume jewelry and clothing. Although revenues increased in 2003, 2004 and 2005, Avon’s net income was $848 million in 2005. The company met with stiff competition in the US market from other cosmetic companies. In order to maintain its market share in the US while targeting other countries, especially China, the company drastically changed its global operating structure. This brought senior management closer to its key business geographies, strengthened global integration, accelerated information flow and positioned the company for sustainable growth. Avon expected to incur costs to implement these initiatives over the next several years, with a significant portion of the total costs to be incurred during 2006. Benefits from restructuring helped to fund a notable increase in consumer investment and improved the competitiveness of its direct selling opportunity. Additionally, the company increased investment in advertising, marketing intelligence, consumer research and product innovation. The cosmetics mogul...
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...Avon Products, Inc. – 2013 A. Case Abstract Headquartered in New York City, New York, Avon Products, Inc. competes as one of the world’s largest direct-seller firm, and is the largest direct-seller of cosmetics and beauty-related items. Most of Avon’s sales come from its 6.4 million independent sales representatives (considered independent contractors) that serve in 110 countries. Avon employs 39,100 people and only 4,800 of them are employed in the USA. Avon generates 85% of their revenue from outside of the USA. Avon earned a net income of $517.8 million in 2011, but reported a loss of $38.2 million in 2012. The company has recently slipped in revenue due to currency rates and North American sales with a 13% drop in active sales representative. B. Vision Statement Actual: To be the company that best understands and satisfies the product, service and self-fulfillment needs of women – globally. Proposed: To be the company that provides the best foundation for women by offering a wide variety of products that appeal to any women’s needs and tastes. C. Mission Statement Actual (in summary due to length): 1) Leader in global beauty 2) women’s choice for buying 3) premier direct-selling company 4) most-admired company 5) best place to work and 6) to have the largest foundation dedicated to women’s causes. Proposed: Our mission as a company is to provide a unique portfolio of beauty, fashion and home brands to satisfy women globally. We encourage utilizations...
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...Abstract This paper was created to provide a brief description of the status of the Avon products Inc. that led to its determination that a change was necessary. After, it identifies the model for change theory typified in the case study. Then illustrates the types of evaluation information that were collected and how they are used to benefit the company. And last, it speculates about success of the changes within the next five (5) years and how adjustments could be made if the results become less than ideal. In 2006, Avon Products success story turned ugly. After five straights years of ten percent plus growth and twenty-five percent operating profit growth under CEO Andrea Jung, the company suddenly began losing profits. One of the main reasons of this lost was the fast growth of Avon that couldn’t be supported by its employees. As with many growing organizations the structure, people and processes that were right for a $5 billion company were not necessarily a good fit for a ten billion dollar company (Goldsmith & Carter, 2010, p.2). There were weaknesses that hurt the effectiveness of the employees at the talent management practices. Decisions on talent movement, promotions, and other key talent activities were often influenced as much by individual knowledge and emotion as by objective facts. Neither managers nor Associates have any idea about how the talent practices work. Even the HR department wasn’t sufficient to answer basic questions that might be asked...
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...relationships with approximately 6.4 million active independent Representatives worldwide, and working with the new CEO in supporting the company’s strategic direction and brand positioning. On a personal note, it has been a true privilege leading Avon as CEO since 1999, as we have grown the company from a decentralized group of local operating entities to a globally managed business with global brands and a global operating model. During this time, revenues more than doubled to $11.3 billion, the number of Representatives also doubled and we expanded our reach to women in more than 100 markets around the world. Looking to the future, a new CEO will provide a fresh lens and additional operational capabilities to manage a company of Avon’s increasing size and scale. With the Beauty and Direct Selling industries growing, coupled with our broad geographic footprint, Avon continues to have significant growth opportunities. To capitalize on these opportunities, however, we will need to address the near-term challenges which have slowed the company’s recent revenue growth. In 2011, revenues were up 4% or 1% in constant dollars,* compared with the mid-single digit constant-dollar growth we have seen on average over the past five years. At the same time, Avon posted approximately $1.2 billion adjusted operating profit* and generated over $650 million in cash from operating activities. In line with this, we declared a $0.92 dividend in 2011 and stated our commitment to maintain this dividend in 2012...
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