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Marketing Term Paper

Topic: Sales Strategy of AVON


Course: Sales Management (MKT 401)

Prepared for:
Mujahid Mohiuudin
Department of Business Administration
East West University, Dhaka

Prepared by:
Name ID

Afrida Tasnim Shagoti 2008-1-10-112

Khondokar Kamran Bin Khaled 2008-1-10-152

Dinuka Sinhabahu 2008-3-10-071

Syaba Tarannum Quader 2008-1-10-063

Shohan Akon Sunny 2008-2-13-011

Date of submission:
28th July, 2010

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Table of Contents
Topic Page No.

Executive Summary 5

1.0 Welcome 6

1.1 History 6

1.2 About Avon 7

1.3 Major Brands and Product Lines 7

1.4 Major Market and Operations 8

1.5.1 Mission Statement 9

1.5.2 Vision Statement 9

1.6 Values and Principles 9

1.6.1 The Avon Values 9

1.6.2 The Principles 10

2.1 Components of Marketing Mix 10

2.1.1 Product Mix 10

2.1.2 Pricing Strategy 11

2.1.3 Other Marketing Tools 11

3.1 Goals and Objectives 11

3.2 Target Market and Market Demand 12

3.3 Avon’s Product Mix 13

3.4 Competitor and Market Trends 18

3.4.1 Competitors 19

3.4.2 List of other Competitors 19

3.4.3 Competitor Analysis 20


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3.4.4 Handling Competitors 20

3.5 Distribution Process 21

3.5.1 Other Routes to Market 22

3.6 Supply Chain 22

3.6.1 Goals of Supply Chain 23

3.6.2 Supplier Codes of Conduct 24

3.6.3 Supplier Diversity 24

3.7 Sales Process 25

3.8 Sales Skill and capability 26

3.9 Development Plan 26

3.10 Design of Sales Department 27

3.10.1 Sales Managers 27

3.10.2 Sales Representatives 27

3.11 Design of Territorial Structure 28

3.12 Sales Force Management 30


3.12.1 Motivation 30
4.1 SWOT Analysis 32
4.2 Changing Marketing Strategy 32
5.1 Corporate Social Responsibility 33
5.1.1 Economical Empowerment 34
5.1.2 Avon’s Walk for Breast Cancer 34
5.1.3 Speak out against Domestic Violence 35
5.1.4 Emergency and Disaster Relief 35
5.1.5 Hello Tomorrow Fund 36
Conclusion 37

Executive Summary
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Avon has been committed to being the company for women since 1886, and for over 120
years they have taken very seriously their responsibility to improve the lives of women.
Their core values—trust, respect, belief, humility and integrity—guide the company
every day and are fundamental to how they conduct their business and meet the evolving
needs of women and all of their stakeholders.

This report concerns the sales strategies adapted by Avon. In this report firstly the history
of Avon and its company profile is presented. Then we have explained how sales strategy
can be used to help in the development of other marketing mixes. Here we have showed
how sales strategy can be used in the development of product mix and how it can
recommend pricing theories. This is because sales representatives of Avon stay close to
the customers and so are aware of these factors and can help in the development of such
factors. We have also shown how sales strategy works well in promotional campaigns.

Next, the main sales strategy steps are explained. First to this comes goals and object set
up. We have shown how Avon does not have a single goal like most other companies but
has unique specified, measurable, realistic and quantifiable goals and objects for each of
its five sectors. Then we have shown how Avon targets the women population mainly
and what they consider in doing so. Furthermore, third to this sales strategy is the
competitors analysis where we have put out best effort in proving what tools Avon uses
against its competitors. Fourthly, Avon’s distribution channels are explained in details.
Avon mainly uses direct marketing, online websites and few department stores and
kiosks to make their products available. Moreover, the fifth stage of sales strategy is
supply chain and Avon’s supply chain goals, codes of ethics, supply chain diversity are
thoroughly revised and presented. Sixth of this elaborative process is sales process
development and we have showed how the existing sales process of Avon works well
from prospecting to implementation stage. Next, we have presented in the report the sales
people’s skills like Diversity, Leadership, and Excellent communications skill, Hard
Working, Dynamic and Teamwork etc are important. Then subsequently these skill
development processes are explained in details. In the ninth step we showed how the
sales department of Avon is segments and into how many layers and the significant facts
around designing it in such way. In addition, in the tenth stage we have shown the
territorial structure of Avon using a world map to show where it reaches. Finally, the last
and eleventh stage of sales strategy development is management of sales force which is
explain in details and special emphasis is given on motivational strategies.

Apart from the 11 sales strategy development stages, we have also given CSR activities,
changes in marketing strategies, detailed product mix, SWOT analysis to help understand
Avon in a better way!

1.0 Welcome
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Avon has been committed to being the company for women since 1886, and for over 120
years they have taken very seriously their responsibility to improve the lives of women.
Their core values—trust, respect, belief, humility and integrity—guide the company
every day and are fundamental to how they conduct their business and meet the evolving
needs of women and all of their stakeholders.

In today’s increasingly complex, globalized world, an unwavering commitment to


corporate responsibility is more important than ever and represents the hallmark of
success in any industry. As a leading global provider of cosmetics, personal care and
related products, people at Avon continue to strengthen their commitment to such critical
areas as economic empowerment, environmental stewardship and product responsibility
as thee work to create a brighter tomorrow.

1.1 History
 In the late 1800s, David McConnell, a door-to-door book salesman, had an idea
he believed would encourage women to buy his books. Following a common
trade practice of the period, he gave prospective customers a gift of perfume to
arouse their interest. Before long, he discovered that the perfume was more
popular than the books. He formed a new firm, which he called the California
Perfume Company. “I started in a space scarcely larger than an ordinary kitchen
pantry,” David McConnell noted in 1900. “My ambition was to manufacture a
line of goods superior to any other and take those goods through canvassing
agents directly from the laboratory to the consumer.” McConnell based his
business upon: 1) consumable products sold directly to the consumer, 2) an image
of the company that captured the beauty and excitement of the state of California,
and 3) a national network of sales agents he had organized during his years as a
bookseller.
 AVP is a US cosmetics, perfume and toy seller
 founded in 1886 as the California Perfume Company
 founded by then 28-year-old David H. McConnell
 markets in over 140 countries across the world

As the firm grew, so did the product line. In 1920, the company introduced a line of
products called Avon that consisted of a toothbrush, cleanser, and vanity set. The
Avon name was inspired by the area about the company’s laboratory at Suffern, New
York, which Mr. McConnell thought resembled the countryside of William
Shakespeare’s home, Stratford-on-Avon, England. The name of the line became so
popular that in 1929, the company officially became Avon. By 1929, the company
was selling low-cost home care and beauty products, door-to-door and through
catalogues in all 48 states.

1.2 About Avon

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Avon and its approximately 42,000 associates now serve valued customers in more than
100 countries worldwide

Founded in 1886, Avon Products, Inc. (Avon) is the world’s 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. Their 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 them to reach millions of customers around the
world and handle upwards of one billion transactions annually. Avon is a publicly traded
global company listed on the New York Stock Exchange (symbol: AVP).

1.3 Major Brands and Product Lines


Their support of women encompasses all aspects of personal care, including beauty,
wellness, health and fitness, as well as economic empowerment and financial
independence. To remain at the forefront of the highly competitive beauty industry, they
constantly develop quality, effective and affordable breakthrough products that cater to
the needs of our customers. Their current product offerings fall into three categories:

Beauty Fashion Home


Cosmetics Fashion Home Products
Fragrances Jewelry Gifts and Decorative Products
Skincare Watches
Toiletries Apparel
Accessories

Avon’s Beauty category includes leading brand names like: Avon Color™, Anew™,
Skin-So-Soft™, Advance Techniques™, Avon Naturals™ and mark™.

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1.4 Major Markets and Operations
Headquartered in New York City, Avon markets its products to women throughout six
regions—Asia Pacific; Central and Eastern Europe; China; Latin America; North
America; and Western Europe, Middle East and Africa. They have maintained direct
sales operations in 65 countries since 2004, and now have four additional new operations
in Finland, Albania, Macedonia and Egypt.

In addition to these direct operations, Avon also does business through distributorships
and licensees to drive continuing growth throughout emerging and developed markets.
They distribute products in an additional 48 countries through these secondary sales
channels.

Revenues (millions)
Region
2007 2008
Asia Pacific $850.8 $891.2
Central and Eastern Europe $1,577.8 $1,719.5
China $280.5 $350.9
Latin America $3,298.9 $3,884.1
North America $2,622.1 $2,492.7
Western Europe, Middle East and Africa $1,308.6 $1,351.7
Total $9,938.7 $10,690.1

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1.5.1 Mission Statement
“We will build a unique portfolio of beauty and related brands to become the world’s
most trusted beauty company and also expand our presence in direct selling, empowering
women to achieve economic independence by offering them a superior earning
opportunities and deliver superior returns to our shareholder, providing them growth
opportunities while maintaining or commitment to be a socially responsible, ethical
company that is watched as a model.”

1.5.2 Vision Statement


“To be the company that best understands and satisfies the product, service and self-
fulfillment needs of women—globally”

1.6 Values and Principles


These five values, and their guiding principles, outlined below, have served as a
continuing source of strength within our organization. They remain at the heart of who
they are and who they strive to be.

1.6.1 The Avon Values


Trust means they want to live and work in an environment where communications are
open—where people feel free to take risks, to share their points of view and to speak the
truth as they see it. Trust people to do the right thing—and help them to understand our
underlying reasoning and philosophy—and they won’t disappoint.

Respect helps them to value differences, to appreciate each person for her or his unique
qualities. Through respect, they help bring out the full potential of each person.

Belief is the cornerstone of empowering associates to assume responsibilities and be the


very best they can be. Believe in someone—and show it—and that person will move
mountains to prove you’re right.

Humility simply means they’re not always right—they don’t have all the answers—and
they know it. They’re no less human than the people who work for them, and they’re not
afraid to ask for help.

Integrity should be the hallmark of every Avon associate. In setting and observing the
highest ethical standards and doing the right thing, they fulfill a duty of care, not only to
their representatives and customers in the communities they serve, but to their colleagues
and themselves.

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1.6.2 The Principles That Guide Avon
1. To provide individuals an opportunity to earn in support of their well-being and
happiness;
2. To serve families throughout the world with products of the highest quality backed
by a guarantee of satisfaction;
3. To render a service to customers that is outstanding in its helpfulness and courtesy;
4. To give full recognition to employees and Representatives, on whose contributions
Avon depends;
5. To share with others the rewards of growth and success;
6. To meet fully the obligations of corporate citizenship by contributing to the well-
being of society and the environment in which its functions; and
7. To maintain and cherish the friendly spirit of Avon.

2.1 Components of Marketing Mix


Sales strategies are fantastic tool at contributing for the development of different
marketing tactics. Following are three great aspects of marketing which is aided by sales
strategy:

2.1.1 Product Mix


Following is a simple diagram showing Avon’s product mix:

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The main point around this aspect is that because sales representatives maintain a close
relationship with the customers all the time; during sales process as well as after sales,
they know about the dormant needs of the customers, about the wants they are keeping
within themselves and about the problems they face. Thus it is very easy for these
representatives to go up to their superior and make product mix suggestions. They can
advice on what type of colors to put into their lipsticks and eye shadows or what type of
skincare products to develop.

2.1.2 Pricing Strategies


The same reason applies here, that is because the sales representatives stay close and
work with customers directly, they are well aware of the price customers are willing to
sacrifice for an Avon product. Thus they can recommend different prices for defferent
products which might result in more sales.
2.1.3 Other Marketing tools
Sales representatives of Avon are so prominent that they are even used as advertisement
concepts to boost sales. Such advertisements are smash hits. Not only this, but sales
representatives are also shown in movies. Some of such examples are given below:

3.1 Goals and Objectives


Selections of their existing goals are outlined in the table below. They are continuously
setting additional goals around key areas of risk and opportunity for our business.

Area Goal
Environment Reduce GHG emissions per unit produced by an additional 10
percent by 2012 from already reduced 2008 baseline levels.
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Reduce energy consumption per unit produced by 10 percent by 2012
from already reduced 2008 baseline levels.
Reduce water consumption per thousand units produced by 7 percent
by the end of 2012, from already reduced 2008 baseline levels.
Zero environmental noncompliance incidents and fines
Governance Report the recipients and portion of Avon payments used for political
contributions and expenditures by such trade associations that receive
in excess of $100,000 from Avon beginning in 2009 (for the calendar
year 2008)
Philanthropy Exceed $1 billion in funds distributed by 2012
Supply Chain Ensure consistent oversight of their entire global supply chain,
including monitoring of suppliers’ compliance with their Supplier
Code of Conduct, by December of 2009. Increase spends with
diverse suppliers year after year.
Workplace Safety Achieve a total recordable case (TRC) rate of 1.0 across all Avon
and Health facilities
Introduce a comprehensive safety audit program in 2009

3.2 Target Market & Market Demand


Avon’s tag line says “the company for women”, thus is it utterly crystal clear that they
mainly focus on the well being of women. They cut deep into the dormant and open
needs of women and initialize products to suit their needs and wants. Though Avon now
has range of products like watches and perfumes for men yet even today their positioning
remains strong towards the women.

Avon focuses on capturing the market younger women, college student, men with
disposable income in its effort to promote the sale of the sink-so-soft brand extension
products. Young women and college going students are dynamic and beauty conscious.
Thus targeting them is what Avon doing mainly. Then again, new generation of young
women between 16-35 years falls under Avon’s potential customer list.

As we know Avon headquarters in New York and USA is where it all started. Thus it is
rather important to specify the target market in USA that Avon aims at. 17 million young
women in US with aggregate spending capacity of $ 24 billion on cosmetics are attractive
market for this leading cosmetics company. For young women who wants to make their
mark in World and wants product that reflects the concepts of: Fun, fresh, modern and
affordable price, are utterly Avon’s target market.

3.3 AVON’S Product Mix

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Avon Color is Avon’s flagship global color cosmetics brand which offers a variety of
color cosmetics products, including foundations, powders, lip, eye and nail products.
Avon Color’s palettes contain shades that suit the skin tones of women of all ethnicities.

Avon Color provides superior innovation and high-technology in its products to deliver
beauty and treatment-related benefits that make women look and feel their best. Avon
Color has over the decades brought scientific advances to the beauty market with the
launch of hit products such as Glimmersticks eyeliners and lipliners, slim-line mechanical
color pencils that allow for a smoother application, and Glazewear Liquid Lip Color,
which contains patented Thixotropic Gellant System that moisturizes lips with Vitamins
A, C, and E.

Avon Color's product portfolio includes:

Mistake Proof Mascara is the first-ever mascara with a built-in “mistake” eraser. This
multi-benefit mascara provides volume, length and lift on one end and a gel “eraser” on
the other end to undo mascara mishaps.

Pro-To-Go Lipstick with its breakthrough design allows opening, applying and closing
the lipstick all with one hand. With one slide of a button, Pro-To-Go Lipstick gives
luscious color and hydrating lip care.

Jillian Dempsey for AVON Professional Collection, a new line of makeup that will
leave women looking like they go to a professional make-up artist. The collection
includes:

• Kohl Eyeliner with Smudger, a creamy eye pencil that can be used as a liner or
a shadow to create smoky eyes. Available in Black, Plum, Navy and Dark Brown.
• Eyeshadow Trio, a palette containing two powder shadows to add dimension to
the eyes and one cream formula to apply over the lids as a highlighter/base.
Available in Ice Shimmer, Lavender Mist, Antique Bronze and Pebble Wash.
• Lash Professional Mascara, dual-ended mascara featuring the Extreme Volume
formula and Perfect Wear waterproof formula. Available in Black, Brown, Brown
Black and Burgundy.

SuperSHOCK Mascara, Avon’s biggest-ever, flexible bristle brush gives the maximum
amount of mascara in just one dip. Each formula contains unique microfibers that expand
and plump lashes, creating bold, dramatic lashes. Avon SuperSHOCK Mascara is
currently available in Black, Brown Black, Brown and Navy.

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Anew is the world’s leading mass market anti-aging skin care brand offering
breakthrough products infused with innovative technology at affordable prices.

Avon revolutionized skin care in 1992, when it was the first company to launch an anti-
aging product containing Alpha Hydroxy Acids, which was Anew Perfecting Complex
for Face.

The Anew brand boasts an assortment of skin care products that fight all stages of the
aging process, whether their customer is preventing the early signs of aging in her 20s, or
restoring the youthful texture of her complexion in her 50s. Anew is also well-known for
pioneering products that serve as at-home alternatives to professional cosmetic
treatments.

Anew‘s product portfolio includes:

• ANEW Clinical Derma-Full X3 Facial Filling Serum, an ultra-concentrated,


lightweight serum with a unique helix formation that contains the injectable-grade
Hyaluronic Acid to provide visible volume restoration, and contouring and deep
wrinkle filling benefits.
• ANEW Rejuvenate 24 Hour Eye Cream is a dual eye system with SPF 25 to fight
aging throughout the day. Two creams, a day revitalizing cream and a night
restoration cream, are packaged in a dual-chamber jar and exclusively engineered
to continuously repair and protect skin against age damage in the delicate eye
area.
• ANEW Rejuvenate Night Revitalizing Cream is a lightweight gel-cream that
delivers the rejuvenating results of a professional anti-aging facial.
• ANEW Rejuvenate Flash Facial Revitalizing Concentrate is a concentrated
serum treatment with three times the level of the exclusive Revita Fresh
technology which helps increase cell-to-cell cohesion to help strengthen the skin’s
surface layers.
• ANEW Clinical Advanced Dermabrasion System utilizes aluminum oxide
crystals and special polishing beads that resurface and refresh skin to reveal a
radiant and more youthful appearance. Polyethylene polishing beads refine and
refinish, while advanced polymers conditions skin.
• ANEW Ultimate Contouring Eye System, a dual-formula eye treatment designed
to recontour, repair and rebuild skin’s cellular structure for dramatic, refining
results and younger-looking eyes.
• Anew Clinical ThermaFirm Face Lifting Cream, a treatment with Triple Sonic
Technology to firm, tightens and rejuvenates skin to look smoother and
revitalized—the at-home alternative to thermal facelifts.
• Anew Clinical Advanced Retexturizing Peel, a ready-to-use retexturing treatment
that peels away dullness and visible age damage to restore skin’s radiance and
youth.
• Anew Clinical Eye Lift, the first-ever dual eye treatment that “lifts” both the
lower and upper eye areas for dramatically younger-looking skin.
• Anew Clinical Deep Crease Concentrate with Bo-Hylurox™ a powerful serum
with a blend of natural, active ingredients. Formulated with portulaca, Avon’s
patented extract to make hard-to-treat creases (or ‘expression lines’) look more
relaxed.
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• Anew Clinical Line and Wrinkle Corrector, a skin care treatment that renews,
rebuilds and regenerates skin from within. Quadruple-Patented Technology
Derma-3X Technology™ stimulates production of the three key dimensions of
age-vulnerable skin.

Skin So Soft is one of Avon’s best-loved brands offering a line of bath and
body products for all skin types. Since the launch of the brand’s famous bath oil in 1961,
Skin So Soft has evolved over the years to an extended line of brands that include Daily
Moisture, Renew & Refresh, Soft & Glow, Fresh & Smooth and Soft & Firm that provide
skin smoothing and skin caring benefits.

Skin So Soft has also expanded beyond bath and body care with the launch of products
that help protect against insects. This led to the development of the Skin So Soft Bug
Guard PLUS line of products that use IR 3535 in 8 DEET-free formulations that are easy
to use for the whole family.

In February 2007, Avon launched Skin So Soft Fusions Dual Softening Body Wash, the
first body wash that fuses an exfoliating formula with an ultra-conditioning cleanser.

Recent Skin So Soft products include:

• Avon Skin So Soft Fusions Dual Softening Body Moisturizer is dually


formulated to help skin maintain optimal hydration from above and deep within
skin’s surface. One formula softens and smoothes the surface of the skin while the
other works to fortify deep within skin’s surface to create a special hydrating
cushion. Available in Soft & Sensual, Soft & Nourish, and Soft & Replenish.
• Skin So Soft Bug Guard IR 3535 Expedition and Skin So Soft Bug Guard Plus
Picaridin, deliver long-lasting insect repellency and are available as pump and
aerosol sprays.
• Skin So Soft Bug Guard Plus IR3535 Unscented SPF 15 Sunscreen Spray, an
EPA-registered DEET-free SPF 15 aerosol.
• Skin So Soft Satin Glow, a daily body moisturizer that gradually develops a
natural, healthy summer glow.
• Skin So Soft Fresh & Smooth, a line of hair removal products such as shaving
gel and waxing kits to effectively remove hair, leaving skin silky and smooth.

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Advance Techniques salon-quality products serve the needs of every hair type, age group
and ethnic background. As a recognized hair care brand among Avon customers,
Advance Techniques delivers a wide range of shampoos, conditioners and styling
products.

Advance Techniques launched in 2000, offering a broad selection of high performance


hair care products to accommodate a diverse consumer base. Since then, Advance
Techniques products have been reformulated to include Creatine, an essential skin care
ingredient that strengthens and repairs hair from root to tip. Creatine also protects hair
against damage caused by heat styling and chemical processes.

Advance Techniques offers shampoos, conditioners and styling products in the following
four hair care categories to meet the needs of every woman.

Volume and Texture, formulated with Creatine Plus Amino Peptides to plump fine,
lifeless hair.

Straight and Sleek, formulated with Creatine Plus Silicone Smoothers to tame and
illuminate out of control hair for a smooth polished look.

Color Protection, formulated with Creatine Plus an Anti-Oxidant & UV Filter Complex
to protect the brilliance and health of color-treated hair.

Daily Results, formulated with Creatine plus-Pro-Vitamin B5 to help improve the


condition and manageability of hair.

Intense Repair, formulated with Creatine plus Hyaluronic Moisture System to treat and
repair dry, damaged hair.

Avon Wellness provides rejuvenating health and fitness


products that promote a well-balanced lifestyle. Launched in 2000, Avon Wellness
embraces the philosophy of inner as well as outer beauty and the well-being of mind,
body and spirit. Avon Wellness products are available in all of Avon’s markets across the
world.

In 2005, Avon expanded its Wellness line when it partnered with the popular fitness
franchise Curves. Through the Avon brochure, customers will find a host of Curves-

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branded fitness apparel, accessories and comfortable footwear that support a physically
active lifestyle and healthy eating.

As the world’s largest manufacturer of mass market perfumes, Avon offers affordable
scents with upscale packaging so that all women can enjoy the Avon fragrance
experience.

Originally known as The California Perfume Company, Avon began its fragrance legacy
in 1886 when it introduced Little Dot Perfumes. Since then, blockbuster icons like Little
Black Dress, Far Away, Sweet Honesty, Rare Gold and Imari have been legendary among
their customers.

In 2004, Avon launched its first prestige fragrance trilogy Today,Tomorrow, Always,
supported by Avon spokeswoman Salma Hayek. Avon’s prestige fragrance collection is
well-suited for the customer who is willing to spend more on her fragrance.

Avon also manufactures fragrances for men. In 2006, Avon launched Derek Jeter Driven
its new fragrance by baseball star Derek Jeter. Other popular fragrances for men include
Blue Rush, Black Suede and Wild Country.

Several of Avon fragrances for both men and women extend to a line of ancillary
products such as body creams and lotions.

Avon fragrance portfolio includes:

• Christian LaCroix Absynthe, a new Oriental Green scent exclusively designed by


Christian Lacroix for Avon. Its top notes include absinthe extract, golden freesia
and green anise with midnotes of orchid, saffron, and narcissus nectar. Antique
wood, ebony musk, myrrh and amber create this fragrance’s smoky drydown.
• U by Ungaro for Her and U by Ungaro for Him was designed exclusively for
Avon by haute couture designer Emanuel Ungaro. U by Ungaro for Her carries an
alluring scent made up of fresh blossoming florals surrounded by sensual blonde
woods and is packaged in the shape of a soft pink hourglass. U by Ungaro for
Him blends an airy crispness that leads to a sophisticated blend of rich, textural
woods and is packaged in a sleek rectangular shape paired with translucent glass.
• Christian Lacroix Rouge was exclusively created for Avon by haute couture
designer Christian Lacroix is a bold floral chypre based on natural Patchouli
Heart, contrasted with an exhilarating introduction of Spanish carnation and
energizing white pepper.
• Derek Jeter Driven, the new fragrance for men
• Extraordinary which combines the richness of chocolate truffles and the
sparkling effervescence of champagne
• Today, Tomorrow, Always, Avon’s first prestige fragrance trilogy promoted by
Avon spokesperson Salma Hayek.

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3.4 Competitors & Market trend
Avon has many established companies as its competitors. There are wway many
cosmetics companies all over the world, winning millions of women’s hearts. Yet all of
them are unique and always striving to be the best. If they do not point out their
differences ten soon other rivals will bash them. Now, why Avon is a threat to other
cosmetics companies is interesting. They are a threat because they offered shares to the
public in 1946. Since then, their annual revenue has risen from less than $20 million to
over $8 billion and yet to increase more. This shows that if this continues then a large
portion of market share will go to Avon’s pocket each year. Also, they are effectively
holding their market position and market share.
Cosmetics and personal care brands are highly competitive and yet the overall market is
expanding geographically and strategically. Avon is always aiming at going anywhere
and everywhere around the world. Today it has its market touch corners of more than 100
countries yet they know there are so many untouched corners to explore. Avon also looks
at extending market growth to include countries like
 Poland
 Vietnam
 Cambodia

3.4.1Competitors

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3.4.2 List of Other Competitors
• LANCÔME
• CHANEL
• ESTÉE LAUDER
• MAX FACTOR
• BOURJOIS
• LANCASTER
• GIORGIO ARMANI
• THE BODY SHOP
• CLINIQUE
• L´OREAL
• RIMMEL
• MAYBELLINE
• LAKME

3.4.3 Competitor’s Analysis

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3.4.4 Handling Competitors
In this competitive world to handle competitors or to say to survive and capture market
share, companies must provide superior value to their customers. That’s absolutely what
Avon is doing. The following diagram is usually used to show levels of product but here
it is used to explain the competitive advantages Avon has over its competing brands.

Avon’s competitive advantages are: it has world class scientists and technicians who are
working hard at Avon global research and development center at New York to develop
new products now and then. In doing so they are offering customers solution for very
problems of their. This is preemptive and very hard for competitor’s to copy; giving
Avon absolute defense.

Then there is the 5.4 million sales representative all around the world working to delight
customers. This stunning number is absolutely hard to
copy and gives Avon again an absolute defense.

This is Avon Global Research and Development


Center.

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Avon global research and
development center full
of world class scientists
and technicians

Avon
color

Quality Avon
Avon cosmetics skincare
bath and personal
and care
body products
Avon
wellness
Avon
hair
care Avon
fragrance

5.4 million sales


representatives

3.5 Distribution Process


It is claimed that Avon has reached to the summit of success because of their
distinctive method of distribution. They don’t go for traditional distribution process
through the wholesaler & retailer rather they emphasize on direct sales to the
consumers. They create the environment such that customers get the product the
moment they think about it! They try to reach to each and every actual and potential
customer through perfectly managed and executed strategies for direct sales,
channels, and internet. Everyday over five million of their sales representatives will
provide innovative and appealing beauty products to millions of satisfied customers.
Avon proudly emphasizes more on direct sales strategies to generate billions of
customer transactions. Under direct sales strategies it is best that they adapt direct
home visit, field based sales or mail orders. AVON’S Weapon over Competitors is
their Direct Selling Magic! A simple phone call or meeting by their local sales
representatives can be the friendliest yet strong way to create an ambiance and
perfectly flourished personal relationship with customers. You may also benefit from
the special expertise of one of their qualified Beauty Advisors. They understand the
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importance of providing their Representatives with the entrepreneurial skills,
knowledge, and promotional support they need to make their businesses thrive. Best
of all they will give free, no-hassle delivery and the great, personalized service across
the world. Sometimes they even send highly qualified Beauty Advisors so that
customers can benefit from the special expertise.

3.5.1 Other route to market

• Buy Avon Online:

 With their new website YourAvon.com busy customers can enjoy free
delivery
 United States customers will be able buy direct from Avon's online store, at
www.avon.com
 A new customer can find an eRepresentative

• Buy Avon through channels:

 They will try to constantly develop new channels to deliver the best of Avon
products and services
 Customers will find Avon in kiosks, beauty centers and beauty boutiques, and in
outlets and department stores

3.6 Supply chain


As a leading global manufacturer and marketer of consumer products, Avon recognizes
that responsible supplier conduct is critical to their business. It impacts their ability to
attract and retain a loyal customer base, dedicated employees and enthusiastic Sales
Representatives, and helps them to maintain the reputation and trust that they have earned
for the past 123 years. As standards evolve and as monitoring becomes more effective
and efficient, Avon will continue to focus on its performance in this critical area.

For their beauty and beauty-related products, Avon utilizes both company-owned
manufacturing facilities and third-party suppliers to source its products for consumers
around the world. In all, Avon’s suppliers currently number approximately 16,000 and
hail from 50 countries.

Their cosmetics, fragrances, and toiletries products—also known as beauty products—are


the core of their business and comprise approximately 70 percent of our net sales. Eighty-
nine percent of their beauty products are manufactured in Avon-owned facilities. Third-
party manufacturers supply the remaining 11 percent of their beauty products.

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All of their non-beauty products are sourced through third-party manufacturers in 25
countries across five continents.

3.6.1 Goal of Supply Chain


Ensure consistent oversight of their entire global supply chain, including monitoring of
suppliers’ compliance with their Supplier Code of Conduct, by December of 2009.
Increase spending with diverse suppliers year after year.

3.6.2 Supplier Code of Conduct


Through their Supplier Code of Conduct, vendor audits and product compliance testing,
they seek to hold their suppliers accountable for compliance with all applicable local and
national laws and regulations regarding product safety and quality, environmental
performance and human rights. Through monitoring, ongoing engagement and, if
necessary, termination, they seek to ensure that all suppliers of Avon non-beauty products
sold in the United States comply with their Supplier Code of Conduct. They have
engaged several third-party auditing firms to monitor their suppliers’ compliance with the
Supplier Code of Conduct.

They are currently reviewing the effectiveness of their supplier monitoring program, in
particular as it applies to suppliers of products sold in countries outside the United States.
They know that they need to constantly improve the consistency of their oversight and
the overall effectiveness of their program; to that end, they have set a goal to ensure
consistent oversight of their entire global supply chain, including monitoring of suppliers’
compliance with their Supplier Code of Conduct, by December 2009.

3.6.3 Supplier Diversity:


More than 30 years ago, Avon instituted a supplier diversity initiative to reinforce the
company’s commitment to women and to support those who provide the goods and
services that make Avon products extraordinary.

They have made an effort in recent years to expand our relationships with women- and
minority-owned suppliers in North America. Avon North America’s memberships in the
Women’s Business Enterprise National Council (WBENC) and the National Minority
Supplier Development Council (NMSDC) have helped to facilitate this process. Avon
sourced products and services from more than 284 small and diverse businesses in North
America as of 2007, and in that year Avon U.S. awarded $39 million in contracts to

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diverse suppliers, which was approximately 5.6 percent of their total U.S. spend. Avon’s
desire is to increase spend with diverse suppliers year after year.

They embrace supplier diversity as a business objective, not only to ensure that they
recognize capable diverse suppliers but also to continue to drive savings by selecting the
most competitive partners. In 2007 and 2008, Avon attended several national trade
shows, business fairs and events, including those sponsored by the NMSDC, WBENC
and U.S. Pan Asian American Chamber of Commerce. In addition, members of their
Supplier Diversity Council continue to represent Avon locally at business expos and
outreach events in states as varied as California, Georgia, Illinois, New York, Ohio,
Pennsylvania and Washington, D.C.

As they continue to adopt a more centralized supply chain process, they will strengthen
their capability to accurately assess the services, commodities and regions in which
growth and opportunities may exist for more diverse suppliers. While Avon remains
committed to supplier diversity, challenges driven by the current global economic
environment have impacted supply chain processes around the world. Early in 2010,
Avon management will revisit the supplier diversity position in the context of their
overall supply chain and business goals, with the objective of addressing both business
and corporate citizenship responsibilities. Avon encourages potential suppliers to register
their company profiles in their supplier diversity database.

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3.7 Sales Process

Knowing detailed information about the


customers

Building Rapport and excellent personal relationship

Demonstration of samples and allowing free


sample trial

Let customers try out the products before they


buy it and then see if objections arise

Avon’s existing sales process is a blend of extreme professionalism and realistic


approaches. As their values and principals are described above, we can see that they learn
from their mistakes and take a modest approach at solving those. Even if their sales
process is earning them billions every year yet they believe there is always room for
improvement. Their sales process is effective because that carry out each steps properly:

During prospecting stage, the sales representatives do a massive target market search,
which is they seek out every potential prospect for the company. In the next stage
according to many demographic and other variables they cut off few prospects and list
down to whom they can approach. We call this qualifying the prospect stage. Obviously,
subsequently the need for garnering detailed information comes in the next stage that we
call preapproach. Sales representatives then in the next stage approach the customers with
warm hearts and good product details. They build wholehearted relationships with them.
Even if there is no intention of a purchase, yet they demonstrate the products in details
and try to put all the features and benefits to the customers, hoping they will buy in the

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effort. In handling objective stage they use their expertise and knowledge to solve the
queries. Finally, they make the deal and close off the sale in such a way that their
presence will remain in the hearts of the customers for many years to come!

3.8 Sales skill & capability


They recognize that every associate brings unique skills and experiences to their
organization, and they seek to leverage these differences in the most effective ways
possible. Just as they unite their associates through their similarities, they also recognize
and appreciate their differences and seek to create an environment conducive to
individual and collective excellence. They are committed to maintaining a work
environment that affords all associates opportunities for development and advancement.
Their vision is for all associates to feel comfortable enough to contribute their thoughts
and ideas for the mutual benefit of all associates and the organization. They are also
committed to maintaining a culture that supports associates as they balance their many
and sometimes competing, professional and personal responsibilities.

Because they seek to leverage the diversity of all of their associates, diversity and
inclusion are fully embedded in their corporate culture. Andrea Jung, now in her ninth
year as their chairman and CEO, is consistently recognized not only for the vision and
perspective she brings to the company, but also as one of the foremost executives and one
of the most powerful women in business. Her leadership and example are an inspiration
to all Avon employees as they strive for own personal excellence.

The basic characteristics AVON looks into the sales representatives before the
leverages & the training are Diversity, Leadership, and Excellent communications
skill, Hard Working, Dynamic and Teamwork.

3.9 Development Plan


World-class Training: The Avon universal training program provides consistent training
for all Representatives around the world. The program enables Representatives to
develop skills and pursue personal goals and encourages them to build their own
businesses. In addition, the Leadership Representatives can build their businesses by
prospecting, appointing, training and developing (PATD) other Representatives in their
community. The PATD program involves a series of thorough training modules that,
when combined with the support of up line Representatives and their District Sales
Managers, provide Leadership Representatives with the best opportunity to succeed in the
marketplace.

Leveraging Technology: More and more Representatives around the world are choosing
to operate their businesses online, including approximately 150,000 Representatives in
the United States. As part of their Representative Value Proposition (RVP), they offer
Representatives new web-enablement tools and other cutting-edge online training
opportunities to help them expand their businesses online. These features make Avon

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more accessible and allow customers to buy Avon products from the Representatives they
trust the most, regardless of their location.

Local Support: They have management associates on the ground in nearly every zip
code around the United States and around the world. Called District and Division
Managers in the United States, and Zone Managers elsewhere in the world, they
encourage and support our Representatives in any way they can. In addition, they
protect the Avon brand by ensuring that Representatives conduct themselves with the
utmost integrity, do not damage other Representatives or the company in general, and
comply with all company policies.

3.10 Design of the Sales Department


Avon knows no boundaries. Their associates worldwide support a global network of
nearly five million independent sales representatives. Wherever people work for Avon in
the world, they are assured of outstanding career opportunities and the chance to prove
them in a fast-paced and challenging working environment. Their colleagues – from
research scientists and IT specialists to marketing experts and field operations veterans –
will be among of the best professionals in their field. The sales department is mainly
includes the Sales Managers & the Sales representatives which are again subdivided into
different parts.

3.10.1 Sales manager


The sales managers are responsible for collaborating and controlling the acts of the sales
Representatives of their defined area or region. There are mainly 3 types of sales
managers:

1. District: Their responsibility is framed within the activities of the district they are
appointed. They look upon the activities of the sales representatives and monitor and also
help the representatives when they are in doubt or need.

2. Divisional: They are appointed at the divisional (State) level of every country. They
coordinate the activities of the district managers & also the sales representatives.

3. Zone: Zone managers are appointed for each continent to monitor and coordinate the
activities of the Sales representatives, district managers and the divisional mangers.

3.10.2 Sales Representative


Representatives are the heart of their business. They provide AVON with unparalleled
grassroots market penetration into the communities in which AVON operates. AVON
help their Representatives meet the demands they face by remaining flexible, accessible
and responsive. Their unique business model empowers each of their more than 5.5
million Representatives as an independent business. Through this arrangement, they

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provide training and access to local management to allow each Representative the
opportunity to grow and succeed.

Representatives can earn income in two ways: by selling Avon products as a traditional
Representative, or by selling and also recruiting others to do the same. Representatives
with a “downline” of others, called Leadership Representatives, must continue to
maintain their own customer base while managing, mentoring and training the
Representatives under their guidance.

1. Leadership Representatives

1. Comprise one third of all Avon Sales Representatives, as part of our Leadership
Opportunity Program
2. Earn by selling Avon products and recruiting and mentoring others in the
downline stream of Representatives
3. Can receive certification in the Avon PATD Program: Prospect, Appoint, Train
and Develop.
2. Career-Minded Representatives
• Comprise one third of Representatives
• Serve a large and loyal customer base who regularly purchase product
• Earn significant income from their Avon business
• Often work full-time as Representatives

3. Part-Time Representatives

• Comprise one third of Representatives


• Often seeking flexibility and supplementary income around holiday and family
schedules
• Contribute to the continued success of our business model and the realization of
their personal goals

The Avon Leadership Program is a multitiered compensation program that gives top-
selling Representatives, known as Leadership Representatives, an enhanced career path.
The program allows Representatives to obtain earnings from commissions based on sales
made by the Representatives that they have recruited and trained, as well as profits
derived from their own sales of Avon's products. The program limits the number of levels
on which commissions can be earned to three and continues to focus on individual
product sales and service to customers by Leadership Representatives. The development
of the Avon Leadership Program throughout the world is one component of thwir long-
term growth strategy.

3.11 Design of Territorial Structure

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Avon Products, Inc. markets its products to women in well over 100 countries through
over 5 million independent Avon Sales Representatives.

From research and development and manufacturing to sales management, marketing,


customer service and their many other operations, our 42,000 Avon associates worldwide
play an integral role in their success. They attract passionate and dedicated individuals
from every market, and they seek to help them to reach their highest potential as part of
their team.

They recognize that every associate brings unique skills and experiences to their
organization, and they seek to leverage these differences in the most effective ways
possible. Just as they unite their associates through their similarities, they also recognize
and appreciate their differences and seek to create an environment conducive to
individual and collective excellence. They are committed to maintaining a work
environment that affords all associates opportunities for development and advancement.
Their vision is for all associates to feel comfortable enough to contribute their thoughts
and ideas for the mutual benefit of all associates and the organization. They are also
committed to maintaining a culture that supports associates as they balance their many
and sometimes competing, professional and personal responsibilities.

Because they seek to leverage the diversity of all of their associates, diversity and
inclusion are fully embedded in their corporate culture. Andrea Jung, now in her ninth
year as their chairman and CEO, is consistently recognized not only for the vision and

29
perspective she brings to the company, but also as one of the foremost executives and one
of the most powerful women in business. Her leadership and example are an inspiration
to all Avon employees as they strive for own personal excellence.

3.12 Sales force management


It is utterly important to manage the sales force around which Avon’s entire business
depends. Sales representatives are the heart and soul of Avon and thus it is necessary
to make them understand their goals and targets, motivate them, review their
performance-all after choosing the right person through recruitment facilities:

• Setting targets : Individuals and teams are specifically given sales goals and
increasing the number of new accounts
• Measures : Sales managers measure performance standards of each sales
representatives by looking at whether she could sell the given set of each product
category
• Sales Reviews : Performance will be reviewed every twice a month by our
external auditing firm and with the compliance of respective regional sales
manager
• Recruitment: Their Best Customer Could Be Their Best Recruit! Or Career
council or Job Advertisement

3.12.1 Motivation

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The heart of Avon’s entire business is the sales representatives. They look for
customers, make the closing sale and put their hearts into the whole process. Thus
it is absolutely important that these people who represent AVON around the globe
be motivated to work and put their best and think out of the box. Here are some
ways how Avon motivates their employees:

1. Representatives can earn income in two ways: by selling Avon products as a


traditional Representative, or by selling and also recruiting others to do the same.
2. Avon's commitment to its employees is fourfold. They set themselves high
standards in:
 Compensation – Competitive programs that reward associates for individual
performance and their contribution to business objectives.
 Benefits – Flexible packages that let associates select coverage that meets their
individual needs and those of their families.
 Professional development – A wide range of on-the-job development programs
to help associates reach their full potential.
 Workplace environment – At the heart of Avon are management practices that
further our values of respect for the individual.
3. Sales Representative Success Stories

4. Retirement Plan:

Although Representatives are independent contractors, not employees of Avon


Products, Inc., a few years ago they made the decision to provide Representatives
with the opportunity to participate in a retirement savings plan, which is the first of its
kind in the direct sales industry. Participation in the Plan is completely voluntary and
is available to Representatives who are in good standing with Avon and meet certain
other criteria. In developing and managing the Savings Plan, Avon entered into an
arrangement with FN Benefits Service Corp., a subsidiary of First Niagara Financial
Group. The Savings Plan is designed to provide a convenient method for
Representatives to save for retirement and is intended to meet the Internal Revenue
Code requirements as a tax-qualified, profit-sharing plan.

5. Micro Enterprise:

Avon has been a driver in microenterprise for more than a century. Today, Avon
Representatives collectively earn approximately $6 billion each year and serve 300
million women in more than 100 countries.

For as little as $10 down, a new Representative receives information and materials to
begin a successful business selling Avon’s products, including the first shipment of
products on credit. Representatives do not pay Avon until they are paid by their
customers. To this end, they entrust over $1 billion in products and credit to
Representatives at any given time during the year. This process enables many women,
who otherwise might not have access to credit, to pursue their personal financial goals.
Their business model, built upon unwavering confidence in their Representatives, makes
Avon a leader in the direct selling market. They strive to foster strong, trusting

31
relationships with the Representatives to ensure that the business remains profitable and
the customers remain satisfied.

4.1 SWOT analysis

 STRENGTHS  WEAKNESS

 Design to meet the unique demand  Poor marketing and advertising


and culture of each geographic region strategies

 Strong financial position on the  Compelling market problem is the


international market erosion of their core customer

 Established customers and those in


developing market offer the greatest
potential for increasing their customer
base.

 Opportunities  Threats
 Target key market such as Poland,  Government implemented exchange
Vietnam, Cambodia, Czech Republic control and fixed exchange rate
and Hungary where there is high
potential for growth in the near future

 Other Domestic Distribution Channels  Rapidly increasing interest rates

 More Distribution Partnerships with  World Inflation is causing a great


companies like Mattel threat for operating in the worldwide
market

4.2 Changing Marketing Strategy


As AVON has been dealing with a worldwide market segments they have to be dynamic
and must have the ability to adapt and change their market strategies every now and then.
Some of the strategies they are trying to undertake are:

Change # 1:

 Refocus product lines to relate more with the core businesses activities.
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 Constant Price Cuts to the minimum level.
 “Leadership” bonuses for sales people based on the sales of people they
recruit.
Change #2:

Catalogue with toll-free number, designed for median age 38, held income > $45,000,
extensive advertising, and executive layoffs.

Change #3:

 Switched to distribution through retail stores, whereby their original


strength was to avoid retail stores giving more emphasis on the direct sales
 Cut product line by 30% those who are generating a threatening amount of
revenues.
 Creating both global brands and standardized brands.

Marketing Strategy

Marketing Strategies can be divided into two ways:

1. Domestic Marketing Strategy :

 Consistency in Marketing Strategy


 Better Positioning
 Distinctive Product Line
 Better Sales Force Incentives
 Better Coordination

2. International Marketing Strategy :

 Stick with selling to Retailers in different countries as like the environment. Such as
China because it’s less risky.
 Expect to sell smaller volumes to many customers due to
Economics of this country
Different Products to Appeal to this Market
Develop more Partnerships with companies like Mattel

5.1 Corporate Social Responsibilities


Avon has been committed to advancing women since the company was founded in 1886,
and philanthropy has always been a strong part of our heritage. In 1955 the company
formalized philanthropic efforts with the creation of the Avon Foundation, which
advances the mission to improve the lives of women and their families.

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The Avon Foundation’s first grant, more than half a century ago, was a single scholarship
of $400. The Foundation’s main efforts are today focused on the critical issues of breast
cancer and domestic violence, and Avon global philanthropy is advancing these causes in
more than 50 countries. As committed global citizens, Avon and the Avon Foundation
also support emergency and disaster relief, while a scholarship program for Avon
associates and Sales Representatives maintains the tradition of supporting education.

5.1.1 Economic Empowerment

At Avon, people are proud of the longstanding commitment to helping women achieve
financial independence. For 123 years, they have demonstrated their message of women’s
empowerment at every level and in every market that Avon serves. Beginning with Mrs.
P.F.E. Albee, who pioneered their now-famous direct-selling method in 1886, they have
given tens of millions of Avon Independent Sales Representatives (Representatives) the
opportunity to generate wealth, provide for their families and realize their personal
dreams.

5.1.2 Avon’s walk for Breast Cancer

Over two days people will journey 39 miles helping to forever alter the lives of thousands
affected by breast cancer worldwide. Together, they will unite with one purpose and one
goal - to end this deadly disease.

The money they raise will provide women and men the breast cancer screening, support
and treatment they need regardless of their ability to pay, and so that leading-edge
research teams across the country can be powered by the funds they need to fuel their
quest for a cure - all because of women!

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5.1.3 Speak Out Against Domestic Violence
and Women's Empowerment Fund

The Avon Foundation launched the Speak out against Domestic Violence program in
2004 to help end the cycle of domestic violence, and since that time the program has
expanded globally, helping change the landscape of the domestic violence issue around
the world. By 2009, Avon domestic violence and women's empowerment programs have
launched in 45 countries worldwide.

Through 2008, in the United States more than $11 million has been awarded to nearly
400 U.S. domestic violence organizations for awareness, education, direct services and
prevention programs, especially to assist children affected by domestic violence.

Domestic violence affects one in three women worldwide. Funds are raised through
special events as well as the sale of fundraising products, such as a candle and bracelet,
with all proceeds above cost of goods donated to the cause.

5.1.4 Emergency and Disaster Relief


The Avon Foundation and Avon Products, Inc. together respond to national and
international emergencies, and since 2001 have committed $17.5 million for women and
their families affected by events such as the attacks of September 11, 2001, the 2004
tsunami in Southeast Asia, Hurricanes Katrina and Rita in the United States and the 2008
Chinese earthquake. In addition, the Avon Yellow Ribbon Fund assists the families of
military service personnel lost or wounded in Iraq and other conflicts.

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5.1.5 Hello Tomorrow Fund

Taking the Avon commitment to economic empowerment in a new direction, the Hello
Tomorrow Fund was launched in early 2007 to provide cash awards to individuals
committed to empowering women or girls. Originally created as a one-year program to
mark International Women’s Day, the program in the United States was extended for a
second year, and Hello Tomorrow Fund programs have also flourished in more than a
dozen countries worldwide. At Avon, they believe that given the resources, women can
impact their lives, families and communities in meaningful ways…women can change
their world. It is in this spirit that we created the Hello Tomorrow Fund.

From April 2007 through April 2009, the U.S. Hello Tomorrow Fund will award $5,000
every week to an individual who has submitted a compelling application to help realize a
program, project or idea that empowers women and ultimately improves society. More
than 8,000 U.S. individuals—women and men—have applied for the 104 weekly awards.
Similar programs of varying award frequencies and amounts are empowering women
worldwide as well.

HELLO GREEN TOMMORROW:

Avon Products, Inc. launched Hello Green Tomorrow to empower a global women’s
environmental movement to nurture nature, leveraging our unique ability to educate,
engage and mobilize worldwide through our women-to-women network of over 6 million
Sales Representatives. Every dollar plants a tree. They started with a contribution of $1
million to plant 1 million trees in South America's Atlantic Rainforest. So far they are at
2 million trees and counting, which restores 5,000 acres. They need everyone’s help to
plant millions more...for today and for the generations ahead…

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Conclusion

Every great company in this world puts their wholehearted effort into developing the
eleven critical steps of their sales strategy because this is vital for the success of their
business. Keeping all these in mind Avon has put as much details as they could into their
sales strategy.

Avon has specific goals for its specific sectors. For example its philanthropy goal is
“Exceed $1 billion in funds distributed by 2012”. Such specific goals are measurable and
quantifiable. In this case “$1 Billion” shows that this is measurable because if this
amount is not achieved then Avon did not succeed in fulfilling its goals. Then again the
time frame of 2012 is specified showing exactly how long the effort will be put into and
whether if it’s fulfilled within this deadline.

Avon has mainly targeted the women just like its tag line says. They have target young
dynamic women who are beauty conscious and want to get the best out of everything.
And who are curious enough to try the samples at home before buying it because they are
not gullible.

Avon’s competitors are listed in this report and we have also shown how these
competitors are tackled with Avon’s point of differences and competitive advantages.

Avon has great route to market. It uses online, department stores. Kiosk etc to make their
products available to the customers. Not only this is they have a fantastic direct selling
strategy which is number one in the world.

Their supply chain is also recommendable. For some of their products they make it
themselves and for others they use third party suppliers as explained in the report.

Their sales process, sales department, territory are designed in such a way that easy for
sales representatives to cover customers, to serve them the best way they can.

Avon had been established in 1886 and today in the 21st century even only by putting its
maximum effort at direct marketing it is ruling the world with its amazing products and
its sales strategy was a pleasure to work to.

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