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A project by: HD Consulting
Stephanie Hammond and Denise DiLissio
This is the company that knows the value
of a perfect lip, but still opens its mouth
and Speaks Out against Domestic
Violence.
http://youtu.be/WYRd4jgvu6I
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*
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.
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.
1886
Mrs. P.F.E. Albee a
50 year old
housewife becomes
the first sales
representative
1928
1902
California
Perfume
Company has
10,000
representatives
1886
Avon is
founded as the
California
Perfume
Company by
David H.
McConnell
1895
CPC opens
manufacturing
headquarters in
Suffern, New
York
CPC uses
AVON
name on
everyday
products
1939
California
Perfume
Company is
renamed AVON
1920
1932
Sales top
$1 million
for the
first time
Company
moves from a
monthly
campaign to a
three-week
selling cycle
and reduces
prices on
specific
products for
each campaign.
1914
Company
expands
internationally
1953
Avon’s first
television
advertising
is launched
1948
Sales surpass
$21 million
1955
2001
2006
Avon starts
the Avon
Foundation in
the U.S.
Avon launches its
beComing line in
J.C. Penney Stores;
the venture ends in
2003
Avon wins first direct
selling license in China
1996
1972
Sales reach
$1 billion
2003
Avon is the
world’s first
beauty company
to launch an ecommerce site
1954
1957
1978
The “Ding
Dong, Avon
Calling”
campaign
launches and
runs through
1967
The number of
Avon
Representatives
grows to
100,000, with
the company
breaking the
$100-million
sales mark
The number of
Representatives
reaches one
million and sales
top $2 billion
Avon launches mark., its
brand for young women
1999
Avon names
its first female
CEO: Andrea
Jung
2005
Avon announces
first restructuring
2008
Avon says a
whistleblower
alleges violations
in China of the
Foreign Corrupt
Practices Act
2009
2012
Avon has more than 6
million Representatives;
Management says it will
restructure again
Avon names new CEO: Sheri McCoy
2012
Initiates cost
savings plan to
stabilize the
company
2011
AVON CELEBRATES 125 YEARS
OF EMPOWERING WOMEN
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
2012
Avon receives an
unsolicited takeover
bid from fragrance
company Coty
Through the eyes of the consumer
5 P’s of Marketing
Brand Strategies
Social Media Marketing
Perceptual Map
Brand Prism
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
Potential
Reps
Product
Price
Place
Promotion
•Makeup
•Skincare
•Bath & Body
•Fragrance
•Hair Care
•Jewelry
•Fashion
•Home
•Children
•Men
•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
•Individual direct selling
•Catalog distribution
•Samples
•Direct selling from Avon representatives
•Online option from Avon
•Online directly from representative*
•Brick and mortar stores
•Avon’s greatest asset
•Word of mouth
•Immediate sign up on website
3 Pillars of Avon
•
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
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
1.1 million likes
on main page
Multiple pages for
different countries
Vibrant & engaging
equaling many
picture shares
Showcases wide
range of products
Over 51 thousand
followers
Posts daily
Vibrant & engaging
Moderate amount
of retweets
Over 76 thousand
followers
Over 35,000
employees linked
A plethora of
information
Only five
recommendations
Over seven
thousand followers
Over 931 thousand
video views
Beauty tips and
behind the scenes
Avon seller videos
as well
What
For Whom
*Color cosmetics, skincare,
fragrance, fashion and
home products
*Direct Selling
*Sherry McCoy
*Empowering Women
*Sustainability
*Philanthropy
*“The Avon Lady”
Women 16 & up
Low Middle and Middle Class Incomes
Recession Conscious women
Relationship/Consultation Seeker
Entrepreneurial Go-Getters
Stay-at-home Moms
Feminists
Activists
When
Everyday Use
Seasonal Purchases
Planned Purchases
Against Whom
Animal Testers
Mary Kay
Masculine Men
Domestic Violence Offenders
Mercenaries
Fashion,
18%
Home, 10%
Beauty, 72%
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.
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.
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)
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
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
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
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.
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
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
http://youtu.be/45IwGho9xc4
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
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.
Globally,
4 Avon lipsticks
90%
Avon has
brand recognition in
most major markets
around the world
2
and Avon mascaras are
sold every second.
Avon is the largest corporate
supporter focused solely on
women’s issues across the
globe.
200+ scientists and
technicians work on every
breakthrough
Avon is one of only a
handful of companies
to have been on the
Fortune 500
list every year since the
list’s inception
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http://usatoday30.usatoday.com/money/business/story/2012/09/14/sec-ends-one-avon-investigation-bribery-probe-continues/57781852/1
http://www.avoncompany.com/
http://investor.avoncompany.com/phoenix.zhtml?c=90402&p=irol-reportsannual
http://investor.avoncompany.com/phoenix.zhtml?c=90402&p=irol-reportsAnnualArchive
http://www.bloomberg.com/news/2012-05-10/coty-raises-offer-to-acquire-avon-products-to-24-75-a-share.html
http://books.google.com/books?id=bZUPceXxVP4C&pg=PT22&dq=Gertrude+Recordon+facial+treatment&hl=en&sa=X&ei=jjR5UaOiNMeY0QGK8IH
AAQ&ved=0CDwQ6AEwAA#
http://www.forbes.com/sites/jennagoudreau/2013/02/27/new-avon-ceo-vows-to-restore-126-year-old-beauty-company-to-former-glory/
http://www.happi.com/issues/2013-03/view_breaking-news/a-challenging-year-for-avon/
http://www.theglobeandmail.com/globe-investor/shares-soar-as-struggling-avon-reverses-sales-decline/article8501182/
http://www.wharton.universia.net/index.cfm?fa=viewfeature&id=2230&language=english
http://seekingalpha.com/article/1174971-avon-products-management-discusses-q4-2012-results-earnings-call-transcript?page=3
http://usatoday30.usatoday.com/money/business/story/2012/09/14/sec-ends-one-avon-investigation-bribery-probe-continues/57781852/1
http://www.pbs.org/wnet/moneyshow/cover/090701.html
http://www.myquitamlawsuit.com/index.aspx?id=news_avonfcpaviolations
http://www.fcpa-worldcompliance.com/pdf/avon-article.pdf
http://dealbook.nytimes.com/2012/04/02/behind-cotys-bid-for-avon-a-complicated-story/
http://www.interbrand.com/en/BestRetailBrands/2013/Best-Retail-Brands.aspx
http://www.avonfoundation.org/foundation/financials/
http://www.prtm.com/uploadedfiles/books/avon_gets_its_supply_chain_makeover.pdf
http://wiki.answers.com/Q/Why_not_lay_off_Avon_lady_and_buy_the_products_by_internet
http://voices.yahoo.com/surprising-things-consider-becoming-215669.html
http://www.greatbeautybuys.com/about/12-facts-about-avon/
http://www.reuters.com/article/2012/03/16/us-avon-idUSBRE82F0VN20120316
http://www.thebeautycompany.co/downloads/Beyer_BeautyNumbers.pdf
http://www.sephora.com
http://www.aloette.com
http://www.marykay.com
http://www.loreal.com
http://www.clinique.com
http://www.maccosmetics.com
http://arbonne.com
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http://ladyloveavoncosmetics.wordpress.com/
http://ladyloveavoncosmetics.wordpress.com/
http://www.guardian.co.uk/business/2012/may/11/avon-ding-dong-battle-coty
http://www.ca.avon.com/PRSuite/supercurlacious_mascara.page
http://www.luvavon.co.uk/FAQ.html
http://www.bloomberg.com/news/2012-05-10/coty-raises-offer-to-acquire-avon-products-to-24-75-a-share.html
http://www.theadmag.co/avon/avon-skin-care
http://sweetiesfreebies.com/free-avon-anew-1-piece-skin-care-kit-first-15000
http://www.bargainmoose.ca/tag/avon/page/2/
https://www.facebook.com/AvonbyCindyTorres?group_id=0
http://www.theperfumegirl.com/perfumes/fragrances/avon/fergie-outspoken-intense/
http://eseagren.avonrepresentative.com/blog/index.html?blog_postid=1372543
http://madamedeals.com/wp-content/uploads/2012/06/Avon.jpg
http://bigwebpages.com/members/wordsmith/becoming.jpg
http://business-ethics.com/wp-content/uploads/2010/03/Bribe_IS-150x150.jpg
http://www.bing.com/images/search?q=avon+wins+direct+selling+license+in+China&qs=n&form=QBIR&pq=avon+wins+direct+selling+license+in+china&sc=032&sp=-1&sk=#view=detail&id=B8D38690D9C362B4D0E344C2D244F6F07249CD6C&selectedIndex=5
http://celebbabylaundry.com/wp-content/uploads/2013/04/gwyneth-paltrow-most-beautiful-women.jpg
http://www.avonfoundation.org/
http://therobinreport.com/tags/beauty/
http://avonsgdealer.blogspot.com/
http://www.pinktruth.com/2011/10/i-didn%E2%80%99t-do-it-the-%E2%80%9Cright-way%E2%80%9D-in-mary-kay/
http://www.rspo.org/en/member/707
http://wildmorrealty.com/avon-distribution-center-up-for-grabs/
http://blog.pointroll.com/trend_watch/trend-watch-twitter-turns-seven-facebooks-lookalike-audiences-youtube-has-one-billion-monthly-u/
http://www.prconversations.com/index.php/2011/08/using-twitter-for-pr-events/
http://blog.neosusa.com/2011/10/72-6-of-internet-users-will-shop-online-this-year-how-do-you-prefer-to-shop/christmas-shopping-online-l/
http://9to5google.com/category/youtube/
http://cindysavonboutique.com/buy-Avon.html
http://janeymay79.hubpages.com/hub/Hi-I-am-the-Avon-Mark-lady-ask-me-for-a-brochure
http://www.stylebistro.com/lookbook/Taylor+Swift/qJh_sqdmUme/Beauty
http://www.fanpop.com/clubs/selena-gomez/images/32789074/title/adidas-photo