A V O Nthe company for women Final Presentation December 6, 2010 Jen Callaghan J.R. Longino Rasa Navickaite Meghan Quinn Lia Torre
Avonis 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 6.2 million 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.
Corporate Overview • Current Long Term Objectives • Retain their representatives and increase their productivity • Leverage technology and the viral power of the Internet • Broaden shopping opportunities with new product categories • Restore Sustainable Growth • Committing to brand competitiveness
Corporate Overview • Current Short Term Objectives - Committing to brand competitiveness • Winning with commercial edge • Improving the attractiveness of Representative earnings opportunity as needed; - Elevating organizational effectiveness - Transforming the cost structure
Corporate Overview • Core Competencies • Branding • 90% awareness globally • Advertising invetsment with Celebs • Channel • #1 Direct Selling Company • Cost management • $1B in savings by 2013 • Organization • Matrix of global and commercial business units. • 71% employee engagement
SWOT • Opportunities • Restructuring Initiatives • Social Media & Technology • Rebranding Strategy • Emerging Markets • Threats • Competition in Industry • Revenue tied to Reps • Currency Fluctuation • Strengths • Diverse Market Presence • Direct-Selling Model • Brand Equity • Weaknesses • Chinese Operations • Strategy in non-beauty • Declining Margins
Recommendations • Opportunities • Restructuring Initiatives • Social Media & Technology • Rebranding Strategy • Emerging Markets
Technology and Social Media Advertising on Social Media 25% of advertising budget to Social Networks Create social selling applications - all Avon brands Upgrade Online Marketplace Through sales reps promote online sales Take advantage of early mover advantage Empower Sales Reps with Technology Sales Applications for Mobile Devices Video chats for representative meetings
Russia Why Russia
CHINA Economic situation: Avg. GDP growth 10.3% Demographics: Growing population Urbanization Aging population & longer life expectancy Importance of beauty within the culture
China Recommendation Focus and target the “fashion-conscious” urban beauty consumers Focus on anti-aging product line Emphasize the competitive price Emphasize opportunities of entrepreneurship
BRAZIL Politics – growing middle class World’s third largest beauty market Hygiene as part of culture
Brazil Recommendation Focus on Product line simplification -Lip -Hair care Continue to spend advertising money in Brazil to gain new representatives Take advantage of Brazils natural resources
Conclusions • ??? • ??