Avon More Info

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PROJECT REPORT

ON

CONSUMER PREFERENCE FOR AVONSKINCARE AND BEAUTY PRODUCTS

Submitted To:

PANJAB UNIVERSITY, CHANDIGARH

In partial fulfillment of requirement for degree of

BACHELOR OF BUSINESS ADMINISTRATION

(BBA)Submitted by:Arshpreet kaur14310000422

KHALSA COLLEGE FOR WOMEN

LUDHIANASession (2012-2013)


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CERTIFICATE

I certify that the project report CONSUMER PREFERENCE FOR AVON SKIN

CARE AND BEAUTY PRODUCTS has been undertaken by me for the partial

fulfillment of the requirement of degree of Bachelor of Business Administration and is an

original piece of work done by me and that no part of this project has been submitted for

any other degree, diploma, fellowship or similar title in university or in any other

university.

I express my sincere gratitude to my advisor Mrs. Pawanpreet Sooch for her valuable

guidance support and cooperation extended for completion of this project.

ARSHPREET KAUR14310000422


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CERTIFICATE

This is to certify project report entitled CONSUMER PREFERENCE FOR AVON

SKIN CARE AND BEAUTY PRODUCTS submitted for the degree of BBA does

carry out a bonafide research work under my guidance, and no part of this project has

submitted for any other degree.

Project advisorMrs. Pawanpreet Sooch


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ACKNOWLEDGEMENT

This work is essentially the result of final year, which is mandatory to be taken on the

partial fulfillment of the course BBA. The project entitled CONSUMER

PREFERENCE FOR AVON SKIN CARE AND BEAUTY PRODUCTS.

So I here wish to express my gratitude to those who generously helped me to colour the

mosaic of this research work with the tiles of their knowledge and experience.

I also take this opportunity to express my deep sense of gratitude and indebtness to my

teacher, MRS. PAWANPREET SOOCH who supervised my work for their able

guidance, suggestions and constructive criticism.


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TABLE OF CONTENTS

SERIAL NO. PARTICULARS PAGE NO.

1 INTRODUCTION OF THE STUDY

2 OBJECTIVES OF THE STUDY

3 3.1 RESEARCH METHODOLOGY

4 DATA ANALYSIS AND ITS

INTERPRETATION

5 FINDING OF THE STUDY

6 CONCLUSION

7 BIBLIOGRAPHY

8 QUESTIONNAIRE


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INTRODUCTION


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INTRODUCTION:

Avon Products, Inc. is the worlds largest direct selling organization and

merchandiser of beauty and beauty related products. From corporate offices in New York

City, Avon marketed product lines to women in 112 countries through 1.6 millionindependent sales representatives who sold primarily on a door-to-door basis. Total

sales in 1992 were $3.8 billion. The company work force of 29,900 employees staffed

divisions of product management, manufacturing, and sales and service, worldwide.

Avon entered the international marketplace in the 1950s. In 1954, Avon opened

sales offices in Venezuela and Puerto Rico to cultivate the Latin American market. Avon

expanded into the European market in 1957 through its United Kingdom subsidiary,

Avon Cosmetics, Ltd. The company entered the Asian market in 1969, by way of Japan.

In 1990, it became the first major cosmetics company to manufacture and sell products in

China. That same year, Avon became the first American beauty company to enter East

Germany. Sales of Avon International, in 1992, were $2.25 billion, compared to Avon

U.S. sales of $1.41 billion. More than three-fifths of the firms direct selling sales and

earnings came from outside the United States and the proportion was growing.

Internationally, the companys product line was marketed primarily at moderate

price points. The marketing strategy emphasized department store quality at discount

store prices.

Avon divided the world into four geographical divisions: The United States,

Europe, The Pacific, and The Americas. In most of international markets, the primary

operating arrangement in each of these divisions was direct ownership by Avon of the

foreign country subsidiary. Joint ventures with foreign firms were used when the culture

and the ways of doing business were significantly unfamiliar to Avon management.


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By 1991, Avon management felt that it was time to re-evaluate and map out the

long-term future of the firms beauty businesses on a global level. Senior management

knew that the traditional Avon system of door-to-door house calls worked wonderfully

in developing nations.

Avon then tried to develop its own global perspective. In developing the market

globally, Avon Management identifies three avenues of growth which are geographic

growth, leveraging distribution channels in emerging and developing markets, and

marketing in developed industrial areas.

The first area was geographic growth. Enormous growth opportunities existed in

countries with huge populations such as China, Indonesia and India. In Eastern Europe,

management was excited about the potential in Poland, Czechoslovakia, and Hungary. In

the Pacific Rim area, countries like Vietnam, Cambodia, and Laos were targeted as

market opportunities.

The second area of growth was to continue to emphasize direct selling in the

emerging and developing markets of Latin America, the Pacific Rim, and other areas. In

those markets, the retail infrastructure was undeveloped, especially in the interiors of

those countries. The Avon representative provided consumers with an opportunity to buy

a wide range of quality products at acceptable prices. In some developing markets, where

access to quality goods was particularly prized, Avons direct selling method opened up

unprecedented prospects for women.The third area of international growth was marketing in the United States and

other developed industrial areas like Canada, Western Europe, and Australia. New

programs were designed to complement the existing network of sales representatives and

image-enhancing advertising and promotion programs worldwide to make customers

aware of Avon products and the purchase options available such as on the website and

retail outlets.

Avons strong presence in the market globally intends to satisfy their customer

demand around the world and shows that Avon has step into the market in a global

perspective and vary from country to country and market to market internationally. This

helps Avon in developing its own image in a global perspective and in achieving their

mission of being the Global Beauty Leader.


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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 spacescarcely 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 skincare and beauty product 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 companys laboratory at Suffern, NewYork, which Mr. McConnell thought resembled the countryside of William

Shakespeares 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.


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About Avon:

Avon has been committed to beingthe 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 valuestrust, respect, belief, humility and integrityguide 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 todays 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 skincare, personal care and

related products, people at Avon continue to strengthen their commitment to such critical

areas as economic empowerment, environmental and product responsibility as they work

to create a brighter tomorrow.

Avon Products, Inc. (Avon) is based in New York. The firm engages in the manufacture

and marketing of beauty and complimentary products primarily in North America, Latin

America, Europe, and Asia Pacifics. Avons 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 jewellry,

watches, and accessories; and Beyond Beauty comprises home products, gift and

decorative products, candles. The company sells and markets its products through a

combination of direct selling, marketing by independent Avon representatives and via its

consumer Web site, avon.com.
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Avon and its approximately 42,000 associates now serve valued customers in more than

100 countries worldwide

Avon success lies within it channel of distribution, it is the worlds largest direct

seller with 5.4 million Avon representatives in over 100 countries. Additionally, it is the

largest micro lender to women and it is among the world top global brands. The company

increased its investment in 2007 by over $120 million which aided in the development of

new sales leadership opportunity, improved training, technology tools and changes in

commission structure.

Avons largest manufacturing plants, Brazil, China and Poland received the ISO

14001 certifications in 2008. Various awards were granted during this period such as the

Clean Industry Certificate to the manufacturing plant in Mexico. During the same period

Avons revenues increased 7.5 percent and net income increased by 65 percent.

Avon Products Inc. closest competitors are Revlon, Inc and Mary Kay Inc. Mary

Kay Inc uses the same approach as Avon which is direct marketing approach which

Revlon sells its products through cosmetics counters in department stores are pharmacies.

Avon revenues far exceed that of its competitors in 2008 Avons revenue was $10.37

billion compared to Mary Kay $2.40 billion and Revlon $1.35 billion.

Avon implemented reconstructing programs in 2009 which included closing two

manufacturing facilities. In addition, there is heavy investment in online search engines

and internet carrier sites to help increase Avons revenue. Andrea Jung is the ChiefExecutive Office who is leading the management team of thirteen to achieve its goal.

Vision Statement (Actual):

To be the company that best understands and satisfies the product, service, and self-

fulfillment needs of women globally.

Mission Statement (Actual): The Global Beauty LeaderAvon has build a unique portfolio of Beauty and related

brands, striving to surpass their competitors in quality, innovation and value, and

elevating the image to become the Beauty company, most women turn to worldwide.


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The Womens Choice for BuyingAvon has became the destination store for women,

offering the convenience of multiple brands and channels, and providing a personal high

touch shopping experience that helps create lifelong customer relationships.

The Premier Direct SellerAvon has expanded the presence in direct selling and lead

the reinvention of the channel, offering an entrepreneurial opportunity that delivers

superior earnings, recognition, service and support, making it easy and rewarding to be

affiliated with Avon and elevating the image of beauty industry.

The Best Place to Work - Avon is known for leadership edge, through the passion for

high standards, respect for diversity and commitment to create exceptional opportunities

for professional growth so that associates can fulfill their highest potential.

The Largest Womens Foundation - Avon has committed a global champion for the

health and well-being of women through philanthropic efforts that eliminate breast cancer

from the face of the earth, and that empower women to achieve economic independence.

The Most Admired CompanyAvon has delivered superior returns to their shareholders

by tirelessly pursuing new growth opportunities while continually improving their

profitability, a socially responsible, ethical company that is watched and emulated as a

model of success.

The five values of Avon are: Trust, respect, belief, humility, and integrity.

Slogan (Actual):Avon is the company for women

Proposed Vision Statement:

To be the leading provider of home, fashion and beauty products that will satisfy

customers while preserving the environment.

Proposed Mission Statement:

Avon is committed to being the leading global provider of home, fashion and beauty

products that will enhance the lives of customers. Avon will utilize latest technology and

will pursue new growth opportunities that will bring about wealth for all stakeholders. At

Avon they firmly believe in respect: respect for people and respect for the environment.


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Proposed Slogan:

Avon: the company for everyone committed to the enrichment of lives.

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.

The Avon Values

Trust means they want to live and work in an environment where communications are

openwhere 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 thingand help them to understand

underlying reasoning and philosophyand they wont 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.

Beliefis the cornerstone of empowering associates to assume responsibilities and be the

very best they can be. Believe in someoneand show itand that person will move

mountains to prove youre right.

Humility simply means they are not always rightthey dont have all the answersand

they know it. They are no less human than the people who work for them, and they are

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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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.


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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.

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 finesGovernance 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 SupplierCode of Conduct, by December of 2009. Increase spends with

diverse suppliers year after year.

Workplace

Safety and

Health

Achieve a total recordable case (TRC) rate of 1.0 across all Avon

facilities

Introduce a comprehensive safety audit program in 2009


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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 JewelryGifts and DecorativeProducts

Skincare Watches

Toiletries ApparelAccessories


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Major Markets and Operations:

Headquartered in New York City, Avon markets its products to women throughout six

regionsAsia Pacific; Central and Eastern Europe; China; Latin America; NorthAmerica; 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.

RegionRevenues (millions)

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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AVON PRODUCTS:

Following is a simple diagram showing Avons product mix:
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Avon Color is Avons flagship global color cosmetics brand which offers a variety of

color cosmetics products, including foundations, powders, lip, eye and nail products.

Avon Colors palettes contain shades that suit the skin tones of women of all ethnicities.

Avon Colorprovides 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 inBlack, Plum, Navy andDark Brown.
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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 to increase cell-to-cell cohesion to help strengthen the

skins 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 designedto recontour, repair and rebuild skins 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

revitalizedthe 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 skins 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, Avons


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patented extract to make hard-to-treat creases (or expression lines) look more

relaxed.

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 Softis one of Avons best-loved brands offering a line of bath and body products

for all skin types. Since the launch of the brands 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 skinsmoothing and skin caring benefits.

Skin So Softhas alsoexpanded beyond bath and body care with the launch of products

that help protect against insects. This led to the development of the Skin So SoftBug

Guard PLUSline 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 FusionsDual Softening Body Wash, thefirst body wash that fuses an exfoliating formula with an ultra-conditioning cleanser.

Recent Skin So Softproducts include:

Avon Skin So Soft Fusions Dual Softening Body Moisturizer is dually

formulated to help skin maintain optimal hydration from above and deep within


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skins surface. One formula softens and smoothes the surface of the skin while the

other works to fortify deep within skins surface to create a special hydrating

cushion. Available in Soft & Sensual, Soft & Nourish, and Soft & Replenish.

Skin So Soft Bug Guard IR 3535 Expedition andSkin So SoftBug 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.

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.
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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 Wellnessembraces 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 Avons 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-

branded fitness apparel, accessories and comfortable footwear that support a physically

active lifestyle and healthy eating.


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Being the 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 GoldandImari have been legendary among

their customers.

In 2004, Avon launched its first prestige fragrance trilogy Today ,Tomorrow, Always,

supported by Avon spokeswoman Salma Hayek. Avons 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 fragrances smoky drydown.

U by Ungaro for HerandU 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
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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,Avons first prestige fragrance trilogy promoted by Avonspokesperson

Competitors & Market trend:

Avon has many established companies as its competitors. There are many skincare and

beauty product companies all over the world, winning millions of womens hearts. Yet all

of them are unique and always striving to be the best. If they do not point out theirdifferences ten soon other rivals will bash them. Now, why Avon is a threat to other

skincare and beauty product 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
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continues then a large portion of market share will go to Avons pocket each year. Also,

they are effectively holding their market position and market share.

skincare 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

Competitors:


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Avon Major Competitors:

Mary Kay and Revlon are considered two major competitors of Avon Products

Inc. in the cosmetics industry. Avon Product Inc. is seven and half times larger than

Revlon and approximately eight times larger than Mary Kay. Although the majority of

Avon's competitors distribute their products to resellers such as department stores,

drugstores, or cosmetic stores, Avon sells its products solely through its direct-selling

channel of independently-contracted Active Sales Representatives and through its online

website. In contrast to Revlons marketing strategy of selling through cosmetic counters

in department stores and pharmacies, Mary Kay rivals with Avon Inc. as they both use

direct marketing approach.

In 1983 Mary Kay Cosmetics was founded in Dallas, Texas, by Mary Kay (now

Mary Kay Ash). This company is known for providing women with exceptional

opportunities for professional achievement and economic success and rewarding women

for their success. In 2009 sales of Mary Kay products reached $2.6 billion in wholesale

worldwide. There are more than 37,000 women across the world who has become

Independent Sales Directors. Mary Kay spends millions of dollars and conducts more

than 300,000 tests to ensure that Mary Kay products meet the highest standards of

quality, safety and performance.

Mary Kay products are expensive versus Avon which is comparable to store

products. Mary Kay seems to be targeting older women while Avon is branching out to

attract women of all ages with quality affordable makeup, jewellery, purses and

childrens items. Mary Kay has stayed in touch with the internet age; each independent

beauty consultant can buy his or her own website to sell clients over the internet. In fact

90% of the companys revenue is now generated through online orders.

Avons revenues far exceed both major competitors. Their revenue is almost four

and half times that of Mary Kays and seven and half times Revlons. Avons revenue

exceeds Ten Billion Dollars (B$10).

Revlon was founded in 1932, by Charles Revson and his brother Joseph, along

with a chemist, Charles Lachman, who contributed the "L" in the Revlon name. In the

1990's, Revlon revitalized its cosmetics business and strengthened its industry leadership


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INDUSTRYREVAVP

32.20M131.01M6.85BMarket Cap:

16405,60042,000Employees:

8.90%-10.50%-8.70%Rev. Grow th

121.46M1.35B10.69BRevenue

56.62%63.55%64.80%Gross Margin

INDUSTRYREVAVP

32.20M131.01M6.85BMarket Cap:

16405,60042,000Employees:

8.90%-10.50%-8.70%Rev. Grow th

121.46M1.35B10.69BRevenue

56.62%63.55%64.80%Gross Margin

role. Revlon Sales to Wal-Mart accounts for 23% of the company's total sales. The

company earned $1.3 billion in sales and $950K in net income in 2009. Net sales fell

3.7% to $1.29 billion. Sales in the US fell 4.4% while sales international fell by 2.9%.

The company attributes the loss to the weak global economy. The net sales in 2009 were

approximately $1.3 billion, a decrease of approximately $51 million or 3.8% versus 2008.

Revlon has a more focused product offering than some companies and when one

considers only color cosmetics sales they are much more comparable. Revlon is the

second largest color cosmetics company in the United States. Competitors Estee Lauder

and Avon get the majority of their revenue outside the United States.

Competitors Analysis:


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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. Thats 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.

Avons 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 competitors 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.


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MARKET OPERATIONS:

Avon Products, Inc. markets its products to women in over 100 countries through over 5

million independent Avon Sales Representatives. This is one of their strategies in

developing Avon in a global perspective. The map below shows the six geographic

regions where Avon products are marketed and sold.

Albania Armenia Belarus Bulgaria Czech Republic Estonia Finland Georgia Hungary Kazakhstan

Kyrgyzstan Latvia Lithuania Macedonia Moldova Montenegro

United States Canada Puerto Rico Dominican Republic Aruba Antigua & Bahamas Barbados Bermuda Curacao Dominica

Grand Cayman Island GrenadaGuyana Jamaica

Argentina Bolivia Brazil Chile Colombia Costa Rica Ecuador El Salvador Guatemala Honduras Mexico Nicaragua Panama Paraguay Peru Uruguay Venezuela


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Australia Hong Kong India Japan Malaysia New Zealand

Philippines South Korea Taiwan Thailand Vietnam

Botswana Cyprus Dubai Egypt France Germany

Greece Iceland Israel Italy Jordan Kuwait Lebanon Lesotho Luxembourg Malta Mauritius Mozambique Morocco Namibia Netherlands North Cyprus Norway Oman Portugal Reunion Island

DISRIBUTION PROCESS:

Avon is innovating the direct-selling industry, enabling Representatives to run their businesses

and maximize their earnings as never before. The company leverages the most advanced digital

tools on the Internet, social media and mobile technology - so a Representative's business

integrates seamlessly with the way people today connect, share and shop. This enhances both the

selling and shopping experiences.

What is Direct Selling?

Direct selling is a type of sales channel where products are marketed directly to customers,

eliminating the need for middlemenwholesalers, advertisers and retailers. Direct selling can be

conducted one-on-one, in a group or party format, or online. At Avon, the "direct" part of direct

selling also refers to the personal component of this sales channel; its about building

relationships with people and offering them a high level of service and personal attention.


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Benefits of Direct Selling

What makes direct selling such an attractive career option is the flexibility it

offers. Those who engage in direct selling are independent contractors who

determine how much time and energy they want to invest in their

businesses. They set their own hours, and define and control their work-

family life balance. An Independent Sales Representative is her own boss.

Direct selling is also a way to own a business with a minimal capital

investment.

Direct Selling the World Over

According to the World Federation of Direct Selling Associations (WFDSA), 87 million people,

roughly the population of Vietnam, are part of the global, direct-selling sales force. Direct sellers

around the world have $132 billion in sales annually.

Avons direct-selling innovations include:

Customized social media environments for Representatives to reach customers and other

Representatives.

A personalized E-Brochure widget to ensure that customers are never more than a few

clicks away from ordering, sharing the E-Brochure with friends and creating a viral

sensation.

Online training and sales tools.

A new application for Sales Leadership Representatives to more effectively monitor their

Representatives orders.

Intelligent ordering, which makes it easier for Representatives to place their orders with

Avon and ensures that they receive special product offers that are relevant to them.

A widget which lets Representatives embed the latest Avon TV advertisements and videos

into their own social media platforms.


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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

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

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 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
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around the world. In all, Avons suppliers currently number approximately 16,000 and

hail from 50 countries.

Their cosmetics, fragrances, and toiletries productsalso known as beauty productsare

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.

All of their non-beauty products are sourced through third-party manufacturers in 25

countries across five continents.

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.

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, environmentalperformance 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.
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Supplier Diversity:

More than 30 years ago, Avon instituted a supplier diversity initiative to reinforce the

companys 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 Americas memberships in the

Womens 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

diverse suppliers, which was approximately 5.6 percent of their total U.S. spend. Avonsdesire 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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Sales Process :

Avons 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

Knowing detailed information aboutthe customers

Building Rapport and excellent personalrelationship

Demonstration of samples and allowing freesample trial

Let customers try out the products beforethey buy it and then see if objections arise


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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

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!

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.
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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

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.

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


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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.

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.

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


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business. Through this arrangement, they 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
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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 their long-

term growth strategy.

Design of Territorial Structure:

Avon Products, Inc. markets its products to women in well over 100 countries throughover 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


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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 manyand 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.
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BenefitsFlexible packages that let associates select coverage that meets their

individual needs and those of their families.

Professional developmentA wide range of on-the-job development programs

to help associates reach their full potential.

Workplace environmentAt 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 Avons 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,
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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

relationships with the Representatives to ensure that the business remains profitable and

the customers remain satisfied.

SWOT analysis:

STRENGTHS WEAKNESS

Design to meet the unique demand

and culture of each geographic

region

Poor marketing and advertising

strategies

Strong financial position on the

international market

Compelling market problem is the

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,

Vietnam, Cambodia, Czech

Republic and Hungary where there

is high potential for growth in the

near future

Government implemented exchange

control and fixed exchange rate

Other Domestic Distribution

Channels

Rapidly increasing interest rates

More Distribution Partnerships with

companies like Mattel

World Inflation is causing a great

threat for operating in the worldwide

market


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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.

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


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2. International Marketing Strategy : Stick with selling to Retailers in different countries as like the environment. Such

as China because its 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

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.

The Avon Foundations first grant, more than half a century ago, was a single scholarship

of $400. The Foundations main efforts are today focused on the critical issu es 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.


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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 womens

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.

Speak Out Against Domestic Violence and Women's EmpowermentFund

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.
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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.

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.

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 individualscommitted to empowering women or girls. Originally created as a one-year program to

mark International Womens 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


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impact their lives, families and communities in meaningful wayswomen can change

their world. It is in this spirit that we created theHello Tomorrow Fund.

From April 2007 through April 2009, the U.S. Hello Tomorrow Fundwill 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. individualswomen and menhave 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 womens

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 everyones help to

plant millions more...for today and for the generations ahead
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Avon products are good or bad?

Best Answer -

They can be good because the price is better than Mary Kay. It all depends how certain

people react to the products.

Beauty for over 120 years

Avon is the Number 1 Beauty Direct Seller in the World, a Beauty Icon and as one of

the worlds largest micro-lenders Avon, extends credit to numerous Sales Representatives

on its first order across the globe.

With More than 60 lakh Representatives in over a 100 countries, Avon has

understood that successful selling is about people connecting with people. Thats our

spirit. In every country where we do businessin every community, Avon is committed

to making a difference.

Avon is a Top 100 global brand, with over Rs. 48,000 crores in annual revenue

globally. It is also ranked as one ofAmericas most admired companies for more than a

decade.

As a philanthropy Leader, Avon Foundation has raised and awarded more than Rs.

3200 crores worldwide towards vital issues- breast cancer, domestic violence and

emergency reliefaffecting lives of women and their families worldwide.


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Being a socially responsible company, Avons record of innovation goes back to its

beginnings. And Avon understands its responsibilities to the world as well as to its

customers. Avon was the first beauty company to announce a permanent end to animal

testing.

Avon is empowering women since 1886. It has been building bonds with women,

offering them a dynamic earnings opportunity to achieve economic independence,

accomplish their financial goals and transform their lives.


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OBJECTIVES


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OBJECTIVES OF THE STUDY

In this project the study of buying behaviour by the consumers regarding various skin

care and beauty products offered by Avon has been conducted. The objective of the

study is to find out that how much preference the consumers give to AVON PRODUCTS

INC. and how much to other brands for skin care and beauty products.

Objectives:

1. To study the consumer awareness regarding the skin care and beauty products

offered by AVON PRODUCTS INC.

2. To study the level of satisfaction for avon products existing among the population

of Ludhiana city.3. To study the factors which tend to the sale of Avon Products inc.

4. To study the effect of various promotional and discount offers increasing the sales

of Avon.


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NEED OF THE STUDY

The available researchers do not provide the proper information about the behaviour of

customers towards branded Avon products. So this study is aimed to know the awareness

of skin care and beauty products among the peoples, why Avon products are preferable ascompare to other skin care and beauty products to study the psychology of consumers

behind the purchase of skin care and beauty product of Avon.


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RESEARCH

METHODOLOGY


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RESEARCH METHODOLOGY:

This chapter describes the research methodology adopted for the study. It includes

methodology, scope and limitation of the study.

(A) RESEARCH DESIGNResearch design is purely and simply the framework or plan for a study

that guides the collection and analysis of data. It is a blue print that is followed in

completing a study.

Survey method has been followed:

(B) DATA COLLECTION

(1) Primary data

(2) Secondary data

(1) PRIMARY DATA

Primary data is defined as the data which is collected from the source

itself. It is new in nature. It is generated when a research investigates a particular item.

For this report following method was used:-

QUESTIONNAIRE: For collection of data in various studies, questionnaire method is

most popular. For this report also, this method was used. The respondents without any

interference filled the questionnaire.

(2) SECONDARY DATA

In this study information from some websites have been used. It also

includes going through various research available on the net.

(3) SAMPLING PLAN

Sampling unit : It consists of investors

Sampling size : 100 people were selected for the study.

Contact method : The respondents were personally

interviewed.


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ANALYSIS ANDINTERPRETATION


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ANALYSIS AND INTERPRETATION

Q.1 Do you use any skincare and beauty products?

Particulars No. of Respondents

Yes 100

No 0

Total 100

Interpretation:

From the above data we get to know that all the 100% respondent from the sample study,

uses skin various care and beauty products.

100%

0%

Yes

No


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Q.2 Which skin care and beauty products you generally prefer to use?

Particulars No. of RespondentsAvon 60

Revlon 6

Lakme 5

Oriflame 8

Loreal 7

Maybelline 5

Olay 4

Others Ponds Garnier Lotus

5

Total 100

Interpretation: The above data reveals that out of 100 sample respondents, 60 uses

Avon, 6 use Revlon, 5 use Lakme, 8 use Oriflame, 7 use Loreal, 5 use Maybelline, 4 use

Olay and 5 use other brands for skin care and beauty products.

0

10

20

30

40

50

60

60

6 58 7

5 4 5


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Q.3 Are you satisfied with your current skin care and beauty products which you areusing?


Satisfied 60

Highly satisfied 20

Dissatisfied 6

Highly dissatisfied 3

Neutral 11

Total 100

Interpretation: The above data shows that out of 100 respondent who use various skin

care and beauty products, 60 are satisfied, 20 are highly satisfied, 6 are dissatisfied, 3 are

highly dissatisfied and 11 derive neutral satisfaction from various skin care products theyuse.

0

10

20

30

40

50

60

Satisfied Highly

satisfied

Dissatisfied Highly

dissatisfied

Neutral

60

20

63

11


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Q.4 How much money do you spend on purchase of these products monthly?


Less than Rs.500 10

Rs.500-Rs.1000 50

Rs.1000-Rs.1500 10Rs.1500-Rs.2000 20

Above Rs.2000 10

None 0

Total 100

Interpretation: Out of 100 respondents we get to know that 10 spend less than Rs.500 of

their monthly income on various skin care and beauty products, 50 spend Rs.500 -

Rs.1000 of their monthly income, 20 spend Rs.1500-Rs.2000 and 10 spend more than

Rs.2000 of their monthly income on various skin care and beauty products.

0

5

10

15

20

25

30

35

40

45

50

10

50

10

20

10

0


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Q.5 Are you satisfied with the price of you current skin care and beauty products

which you are using?


Yes 40

No 20

Neutral 40

Total 100

Interpretation: The above data depicts that out of 100 people who use various and skin

care and beauty products, 40 are fully satisfied with the price of their current beauty

product, 40 derived neutral satisfaction and 20 are not satisfied with the price of their

current skin care and beauty product.

40%

20%

40%

Yes

No

Neutral


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Q.6 Do you use various range of Avon skin care and beauty products?


Yes 60

No 40

Total 100

Interpretation: From this question we get to know that out of 100 respondents, who usesvarious skin care and beauty products, 60% use Avon products and 40% uses other skin

care and beauty products as also revealed in Q.No.2.

As out of 100 respondents 60 use Avon Skin Care and beauty Products and 40 use

Other Skin care and beauty products. So further all the data is based on these 60

respondents, who use Avon products.

60%

40%

Yes

No


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Q.7 If yes, how often you use these products?


Occasionally 20

Weekly 15Daily 25

Total 60

Intrepretation: The bar diagram depicts that out of 60 respondents who consume Avon

products, 20 use these product occassionally, 15 use weekly and 25 use it daily.

0

5

10

15

20

25

Occasionally Weekly Daily

20

15

25


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Q.8 Are you satisfied with the quality provided by various range of Avon products?


Satisfied 22

Highly satisfied 23

Dissatisfied 4

Highly dissatisfied 2

Neutral 9

Total 60

Interpretation: The above data depicts that out of 60 user of Avon Skin Care and Beauty

products, 22 are satisfied, 23 are highly satisfied, 4 are dissatisfied, 2 are highly

dissatisifed and 9 derive neutral satisfaction for the various range of Avon products.

0

5

10

15

20

25

Satisfied Highly

satisfied

Dissatisfied Highly

dissatisfied

Neutral

2223

4

2

9


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Q.9 Do you think the price of Avon products is satisfactory?


Yes 30

No 5

Neutral 25

Total 60

Interpretation: The above data reveals that for the prevailing price of Avon products,

out of 60 respondents, 30 are fully satisfied, 5 are not satisfied and 25 have neutral level

of satisfaction.

0

5

10

15

20

25

30

Yes No Neutral

30

5

25


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Q.10 From the following range of products provided by Avon, which products you

prefer to buy?

Skin Care

Lip colours

Foundations

Eyeshadow

Nail paint

Lip balms

Concealers

Mascara

Eyes liners

Body lotion

Fashion &

Jewellery

Earings

Necklines

Watch

Handbags

Bracelets

Rings

Sunglasses

Toiletries

Soaps

Tooth Brush

Shampoos

Conditioner

Face wash

Foot cares

Perfume

Deodorant

Healthcare

Weight

Loosing

Creams

Facial

Capsules

Skin care

creams

Anti aging

product

Interpretation: The survey shows that from the above various range of skin care and

beauty products by Avon, people highly recommend

Skin careLip colours, eyeliners, Kajal, Mascara, Lip Balms

Fashion and JewelleryHandbags, Sunglasses, Necklines, Earings

ToiletriesFoot cares, face wash, deodorant, shampoos and conditioners

Health careskin care creams and anti-age products.


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Q.11 Is any of these above Avon products you always carry in your handbag?


Yes

Body spray

Lip colour

Kajal

Lotion

Nail paint

45

No 15

Total 60

Interpretation: From the above pie chart we analyze that out of 60 respondents who use

Avon Skin care and Beauty products, 45 carries these product in their handbags and 15

do not carries it with them always.

Yes, 45

No, 15


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Q.12 Are you attracted by the various promotional schemes provided by the Avon on

their products?


Yes 40

No 8

Neutral 12

Total 60

Interpretation: For the various promotional schemes, as the above data reveals, out of

60 respondents, 40 are attracted to these promotional schemes adopted by Avon and 8

are not attracted towards it and 12 are attracted at neutral level towards these various

promotional schemes on avon products.

0

5

10

15

20

25

30

35

40

Yes No Neutral

40

8

12


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Q.13 If yes, which promotional schemes attract you the most?


Discount offers 14

Buy one get one free 12

Free membership 8

Free gifts 18

None 8

Total 60

Interpretation: The above data reveals that for the various promotional scheme adopted

by Avon, the discount offers are favoured by 14 respondents, by one get one free are

favoured by 12 respondents, free membership by 8 respondents, freed gifts by 18

respondents and 8 respondents are not attracted by any of these promotional schemes.

0

2

4

6

8

10

12

14

16

18

Discount

offers

Buy one get

one free

Free

membership

Free gifts None

14

12

8

18

8


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Q.14 Which medium of promoting Avon products you feel the best?


Member Networking 37

E-commerce 10

Word of mouth 13

Total 60

Interpretation: The above bar diagram depicts that from the various medium adopted by

the Avon for its promotion, member networking is prefered by maximum respondents out

of 60 i.e. 37 respondents, e-commerce prefered by 10 respondents and word of mouth by

13 respondents.

0

5

10

15

20

25

30

35

40

Member Networking E-commerce Word of mouth

37

10

13


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Q.15 Give suggestions about the futuristic plans that the Avon should adopt to increase

their sales and to satisfy the maximum customers.

Documents

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