+ All Categories
Home > Documents > Competitive Strategic Management - Developing Avon In A Global Perspective

Competitive Strategic Management - Developing Avon In A Global Perspective

Date post: 26-Mar-2015
Category:
Upload: rin-naz
View: 12,536 times
Download: 2 times
Share this document with a friend
65
QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE AVON PRODUCTS INC. - DEVELOPING IN A GLOBAL PERSPECTIVE Avon Products, Inc. is the world’s 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 million independent 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 firm’s direct selling sales and earnings came from outside the United States and the proportion was growing. Internationally, the company’s product line was marketed primarily at moderate price points. The marketing strategy emphasized department store quality at discount store prices. NOR NAZERANAH OMAR DIN KLCP101003 Page 1
Transcript
Page 1: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

AVON PRODUCTS INC. - DEVELOPING IN A GLOBAL PERSPECTIVE

Avon Products, Inc. is the world’s 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 million independent 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 firm’s direct selling sales and earnings came from outside the United States and the

proportion was growing.

Internationally, the company’s 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.

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

term future of the firm’s 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.

NOR NAZERANAH OMAR DINKLCP101003 Page 1

Page 2: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

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, Avon’s 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.

Avon’s 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.

NOR NAZERANAH OMAR DINKLCP101003 Page 2

Page 3: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

AVON PRODUCTS INC.

Introduction

David H. McConnell founded “The California Perfume Company (CPC) in 1886 with the

first office located in New York. In 1906 the San Francisco earthquake destroyed CPC’s

California office however, before long the company reopened. CPC’s first office outside United

State was opened in 1914 in Montreal, Canada. In the 1920’s CPC sales doubled to $2 million

during this time there were more than 25,000 representatives in the United States. The

Company’s name was change to Avon Products Inc. after the British town Stratford-upon-Avon

in 1938. Avon’s sales increased to about $16 million and in 1946 the company was announced

publicly with advertising campaign such as “Avon Calling”. Avon expanded overseas to

countries such as Puerto Rico, Cuba and Venezuela. In the 1970’s U.S sales top $750 millions

and the first Avon Asian business was opened in Japan. Avon also acquired the Jeweler Tiffany’s

during this period of growth. It was the first major U.S. cosmetics manufacturer to permanently

end animal testing.

Avon adopted five core values which are Trust, Respect, Belief, Humility and Integrity

which are evident in the mission statement to be a Global Beauty Leader, women’s choice of

buying, premier direct seller, the best place to work, largest women foundation and the most

admired company.

Avon success lies within it channel of distribution, it is the world’s largest direct seller

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

lender to women and it among the world top global brands. The company increased it’s

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.

There are three product categories which Avon distributes, they are beauty, fashion and

home. In 2008, Avon changed its marketing approach of concentrating mostly on a homey image

and is now including celebrities as a part of their promotions. The company advertising cost

increased from $136 million in 2005 to $249 million in 2006 and $368 million in 2007. Reese

Witherspoon is the Avon Foundation first global ambassador and honorary chairwoman who

NOR NAZERANAH OMAR DINKLCP101003 Page 3

Page 4: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

appear in advertisement for Avon make up, skin care products and fragrances. “Spotlight” the

new fragrance was launched in 2009 with celebrity Courtenay Cox as the face of the brand.

Avon’s 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 Avon’s 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 Avon’s 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 Avon’s revenue. Andrea Jung is the Chief Executive 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 Leader - Avon 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.

• The Women’s Choice for Buying - Avon become 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 Seller - Avon expand the presence in direct selling and lead the reinvention

of the channel, offering an entrepreneurial opportunity that delivers superior earnings,

NOR NAZERANAH OMAR DINKLCP101003 Page 4

Page 5: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

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 Women’s Foundation - Avon 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 Company – Avon deliver 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.

Proposed Slogan

“Avon: the company for everyone – committed to the enrichment of lives”

NOR NAZERANAH OMAR DINKLCP101003 Page 5

Page 6: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Analysis:

The vision statement was improved to include “customers” instead of women, since the

company is now offering products for women, men and children. Additionally, in light of the

fact that the world is going green, it was prudent to include the environment to emphasize the

responsibility to society as we all work towards a sustainable future.

The proposed mission statement incorporates all nine components that are essential to a

good mission statement. The essential elements are customers, products and service, markets,

technology, concern for survival, growth and profitability, philosophy, self-concept, concern for

public image, and concern for employees. The ‘proposed mission statement also speaks to the

company’s core values of trust, respect, belief, humility, and integrity.

The old slogan for Avon states “the company for women” we have decided to change this

slogan to “Avon: the company for everyone – committed to the enrichment of lives

INTERNAL ASSESSMENT

Financial Ratios Analysis

Ratio 2008 2009 2010

Current Ratio 0.75 1.15 1.22

Quick Ratio 1.1 0.93 0.88

Operating Profit Margin 0.09 0.09 1.25

Net Profit Margin 0.05 0.05 0.08

Return on Stockholders Equity 0.60 0.75 1.29

Total Asset Turnover 1.67 1.73 1.76

Debt / Equity Ratio 5.62% 7.03% 7.99%

Earnings Per Share 2.60 2.87 4.72

Avon Product Inc. Current ratios have increased from 2008 to 20010 which states that they may

not face complications in liquidating its assets, if needed in the short – term. Profitability ratios

have seen an increase which is a clear indication that Avon Products Inc. is much more well in

terms of profitability in 2010 than in previous years. Additionally, more operating income means

NOR NAZERANAH OMAR DINKLCP101003 Page 6

Page 7: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

that more projects can be undertaken which is in synchronization with strategic management

processes. Total Asset Turnover ratio has steadily increased over the period which shows that the

business is generating sufficient volume for the size of its asset investment. Debt/equity ratio has

increased from in 2010 compared to 2008 and 2009 which indicates that Avon Products Inc

holds much more financial leverage in terms of debt and equity financing.

Marketing Positioning Map and Analysis

Customer Service (High)

Quality (Low) Quality (High)

Customer Service (Low)

Analysis:

The top-to-bottom approach was used to narrow down two important variables, customer service

and quality of products. The key feature of a market positioning map is that only key or

immediate competitors should be plotted. The competitors of Avon, Revlon and Mary Kay are

well-established firms with Revlon plotted with higher quality products (Cosmetics). Avon was

strategically plotted to show that they lead in customer service. However, when compared to

cosmetics quality Revlon and Mary Kay are leading far away from Avon.

Superior customer service compared to rivals

Avon has gained an outstanding reputation as the best direct seller of beauty products. Through

the continued efforts and achievements of its Sales Representatives Avon is now known

NOR NAZERANAH OMAR DINKLCP101003 Page 7

Avon

Revlon

Mary Kay

Page 8: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

worldwide. Avon's core competence has mainly been through direct selling, knowing this Jung

and the management team implemented a Sales Leadership program in its ten largest markets

and provided these markets with incentives to acquire, train, motivate, and retain the number of

active Sales Representatives it needs to sustain significant growth.

Analysis of Marketing Strategies

Superior Customer Service

Avon has gained an outstanding reputation as the best direct seller of beauty products. Through

the continued efforts and achievements of its Sales Representatives Avon is now known

worldwide. Avon also has a Representative development program that focuses on the

professional training of Representatives, which enables them to provide valuable information on

Avon brand products. Avon also keeps its superior customer service in other ways of distribution

such as the Internet and in the department store sales by having a timely and correct order

delivery, one on one information exchange and sincere professional advice and service in

department sales.

Wider Geographic Coverage

Avon's management team decided to achieve growth in revenue by expanding its customer base

into international markets, while continuing to compete based on their reputation as the leading

direct seller of beauty products. Avon brand products are now recognized all over the world due

to the success of their international campaign. The company is in great position to take

advantage on growth in new global markets because of the demand for quality products. Avon

now has operations in 50 different countries outside of the United States, and continues to reach

new markets.

Quicker Design-to-Market Times

The ability to develop and release new products more quickly than rivals will give Avon the first

mover advantage and further associate the name with quality and innovation and hopefully

increase the company's market share in the CFT industry. Product innovation will continue to be

a key factor of sales growth in the future. New product lines such as "Avon Wellness" and

NOR NAZERANAH OMAR DINKLCP101003 Page 8

Page 9: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

"Becoming" and the most recent "Anew" will attract new consumers, which will also help to

increase revenue growth.

More Attractive Product Line

Avon's history as a beauty product distribution only enhances their credibility as a company and

quality beauty product distributor. With Avon's ability in research and development they will be

able to develop more new products and introduce them to the Avon product line more quickly

than rivals. New products with the symbol of Avon quality and state-of-the-art technology will

only increase brand image and hopefully sales while acquiring a more loyal customer base by

establishing and providing a more attractive product line.

Improved E-Commerce and Internet Sales Capabilities

Avon's executives realized the company needed a more efficient method to communicate with its

independent sales force, because current newsletters and brochures were not keeping up with the

demands of the sales force. The Internet brings instant global reach, with thousands of products

and prices that can be updated constantly at any time.

Stronger Brand Name than Rivals

Again Avon's history is a big player here because it gives the company credibility and name

recognition. Avon continues to strengthen its image of core beauty products and international

brand product line. In the past few years the company has made several upgrades in imaging and

formulations, packaging, and customer service and the accuracy and speed of order delivery have

also been improved. Avon's development of quality global brands gave them a chance to deliver

a consistent beauty image around the world, as well as improve relationships with suppliers and

become familiar with the most efficient way to get foreign sales.

Stronger Global Distribution and Sales Capabilities

Avon's ability to produce and distribute products in multiple countries enables them to have a

significant amount of international sales. Avon continues to drive their products into new

markets and have always been looking for ways in which they can improve their distribution

channels.

NOR NAZERANAH OMAR DINKLCP101003 Page 9

Page 10: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Map Locating Avon Operations in Worldwide

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.

NOR NAZERANAH OMAR DINKLCP101003 Page 10

Page 11: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

NOR NAZERANAH OMAR DINKLCP101003 Page 11

• United States • Canada

• Puerto Rico • Dominican Republic

• Aruba • Antigua & Bahamas

• Barbados • Bermuda

• Curacao • Dominica

• Grand Cayman Island •Grenada

•Guyana •Jamaica

• Albania • Armenia

• Belarus • Bulgaria

• Czech Republic • Estonia

• Finland • Georgia

• Hungary • Kazakhstan

• Kyrgyzstan • Latvia

• Lithuania • Macedonia

• Moldova • Montenegro

• Poland • Romania

• Argentina • Bolivia

• Brazil • Chile

• Colombia • Costa Rica

• Ecuador • El Salvador

• Guatemala • Honduras

• Mexico • Nicaragua

• Panama • Paraguay

• Peru • Uruguay

• Venezuela

• Australia • Hong Kong

• India • Japan

• Malaysia • New Zealand

• Philippines • South Korea

• Taiwan • Thailand

• Vietnam

Page 12: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Internal

Assessment: Avon Strengths

1. Avon is a Global Market Leader

2. Committed and dedicated workforce - 5.4 million Avon representatives in over 100

countries making Avon the largest sales force.

NOR NAZERANAH OMAR DINKLCP101003 Page 12

• 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

Page 13: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

3. World’s Largest Micro lender for women - extending some $1 billion in product and

credit each year to help women start their own entrepreneurial businesses

4. Channel of distribution – world’s largest direct seller

5. Manufacturing operations match ISO 14001 standards

6. Avon owns its major manufacturing and distribution centers

7. Increased in revenue in most geographic area, improve e –commerce and sales

capabilities.(Revenues increased 7.5% from year 2008 to 2009)

8. Avon is one of the world’s top global brands. Avon has major brand names such as

Anew, skin-so-soft, Avon Color etc with 90% recognition worldwide.

9. First cosmetic to permanently end to animal testing

Internal Assessment: Avon Weaknesses

1. Decrease in North American Sales Revenue by 129.4 million

2. Weak Brand Image

3. High advertising costs – Companies advertising spending went from $136 millions in

2005 to $249 million in 2008 to $368 million in 2009 and 14% higher in 2010

4. Poor brand loyalty and Does not target urban trendsetters

6. Beauty Sales in the first quarter 2009 were 12% lower compared to sales revenue in

previous year 2010

7. Avon lagged behind seven of their cosmetic companies in customer loyalty

Internal Factor Evaluation (IFE) Matrix

Key Internal Factors Weights Rating Weighted Score

Strengths

1. Global Market Leaders0.09 4 0.36

2. Committed and dedicated workforce - 5.4 million Avon 0.08 3 0.24

NOR NAZERANAH OMAR DINKLCP101003 Page 13

Page 14: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

representative in over 100 countries3. Revenues increased 7.5% from year 2008 to 2009

0.06 4 0.244. Channel of distribution – world’s largest direct seller 0.05 4 0.2

5. Award winning company worldwide0.05 3 0.15

6. World’s Largest Micro lender for women 0.06 3 0.187. World’s top global brands – 90% recognition worldwide

0.06 3 0.188. Excellent promotional strategies

0.08 4 0.329. Manufacturing operations match ISO 14001 standards

0.08 3 0.2410. Announced permanent ending to animal testing 0.07 4 0.28

Weaknesses

1. Brand Image 0.06 1 0.062. High advertising costs 0.05 2 0.13. Misleads representatives 0.03 2 0.064. Avon seems like a commodity 0.05 2 0.15. Avon lagged behind seven of their cosmetic companies in customer loyalty 0.09 2 0.186. Revenue decreased in North America by 129.4 million 0.04 2 0.08Total 1.00 2.97Ratings: 1- major weakness, 2-minor weakness, 3-minor strength, 4-major strength

Analysis:

The overall weighted score of Avon Products Internal factor Analysis (IFE) is 2.97 which

indicated that the internal functions and roles are strong at Avon Products Inc.

EXTERNAL ASSESMENTS

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

NOR NAZERANAH OMAR DINKLCP101003 Page 14

Page 15: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

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 Revlon’s 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, jewelry, shoes, purses and children’s 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 company’s revenue is now

generated through online orders.

Avon’s revenues far exceed both major competitors. Their revenue is almost four and

half times that of Mary Kay’s and seven and half times Revlon’s. Avon’s 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 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

NOR NAZERANAH OMAR DINKLCP101003 Page 15

Page 16: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

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.

Major Competitors Pie Chart

Avon; Sales; 10.382; 73%

Mary Kay; Sales; 2.6; 18%

Sales, Revlon, 1.295, 9%

Analysis:

From the pie chat above, it shows the overall sales for Avon and its major competitors in 2009.

Avon gains $10.83 billion, follow by Mary Kay $ 2.6 billion and Revlon $1.3billion.

PEST Analysis

Political Factors Economic Factors

• Tax policies

• Employment laws

• Trade restrictions and tariffs

• Economic growth

• Interest rates

• Exchange rates

NOR NAZERANAH OMAR DINKLCP101003 Page 16

Page 17: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

• Political stability • Fluctuation in oil and gas prices

Social Factors Technology Factors

• Emphasis on safety

• No animal testing

• Green Environment

• Philanthropic Issues

• Automation

• Technology incentives

• Rate of technological change

• Technologies Adaption

Analysis:

Based on the PEST analysis of Avon Products, the company looks into the specific issues that

relates and drives them in penetration in the international market and grows globally.

External Assessment: Avon Opportunities

1. A growing trend in the cosmetics industry is the introduction of “green” products. More

than sixteen percent of beauty products launched in 2008 were certified organic, ethical,

or all natural.

2. Eye makeup market

3. The cosmetics industry tends to be countercyclical. This means that those are industries

for which the demand is either not correlated with the business cycle. The demand for

their products is not much affected by availability of current income, but by other

personal, social or economic factors. The recession also contributes to the industry being

counter-cyclical. There is an upsurge in people joining the industry in the past six or eight

months and there's absolutely no doubt that this is because of the recession and the effect

on employment.

4. Aveda cosmetics found that sixty eight percent of consumers will remain loyal to a

company that has a social and environmental commitment.

5. Urban Trendsetters markets

NOR NAZERANAH OMAR DINKLCP101003 Page 17

Page 18: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

6. Geographic growth – enormous growth opportunities existed in countries with huge

populations such as China, Indonesia and India.

7. Demand for cosmetic products normally remains constant and unaffected by economic

distress

8. The baby boomers are aging and they are more conscious on their appearance, beauty and

also improving their looks.

9. Emphasize direct selling in emerging and developing markets

External Assessment: Avon Threats

1. Competition such as Mary Kay and Revlon

2. Rejection of internet selling by sales representative

3. Global economic climate stifled new product development, innovation and sustainability

programs in 2009.

4. In terms of color cosmetics, environmental International Inc. predicted that many of these

markets will see slowdown in volume demand.

5. Inflation rate and Rising cost of commodities

7. Direct-selling becoming more popular - Amid the financial crisis Aussie mums are

increasingly turning to direct selling and at-home product parties to supplement their

household income.

8. They are a multilevel based company that sells inferior quality with a higher price tag

than what it is worth.

9. Avon products outpaced by “jazzier” products to women who favored more exciting

product lines

10. Decreased earning opportunities

External Factor Evaluation (EFE) Matrix

NOR NAZERANAH OMAR DINKLCP101003 Page 18

Page 19: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Critical Success Factors Weights Rating Weighted Score

Key External Factors

Opportunities

1. Organic (Green) Products 0.09 4 0.36

2. Eye makeup market 0.07 3 0.21

3. Increase Internet Presence 0.08 4 0.32

 4. Urban trendsetters market 0.09 4 0.39

 5. Cosmetic industry tends to countercyclical 0.07 3 0.21

6. Geographic growth 0.09 4 0.36

7. Demand for cosmetic products normally remains constant and unaffected by economic distress

0.05 3 0.15

Threats

1.Competitors 0.08 2 0.16

2. Rejection of Internet Selling by sales representative 0.07 3 0.21

3.Economic Downtown 0.09 2 0.18

4. Market Slowdown 0.08 3 0.24

5. Inflation Rate 0.07 3 0.21

6. Rising cost of commodities 0.07 2 0.14

Totals 1 3.14

Ratings: 1= the response is poor, 2= the response is average, 3= the response is superior, 4=

response is superior

Analysis:

The table of external factors evaluation shows the opportunities that are available and factors that

threaten the success of Avon in driving the business globally.

Competitive Profile Matrix (CPM)

Avon Revlon Mary KayCritical Success Factors Weight Rating

Weighted Score Rating

Weighted Score Rating

Weighted Score

Price competitiveness 0.10 3 0.30 4 0.40 2 0.20

NOR NAZERANAH OMAR DINKLCP101003 Page 19

Page 20: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Global Expansion 0.09 3 0.27 4 0.36 2 0.18Organizational Structure 0.04 2 0.08 4 0.16 3 0.12

Employee Morale 0.07 2 0.14 4 0.28 1 0.07

Technology 0.10 4 0.40 2 0.20 3 0.30

Product Safety 0.10 4 0.40 3 0.30 2 0.20

Customer Loyalty 0.10 2 0.20 4 0.40 3 0.30

Market Share 0.07 2 0.14 4 0.28 3 0.21

Advertising 0.10 2 0.20 4 0.40 1 0.10

Product Quality 0.10 2 0.20 3 0.30 1 0.10

Product Image 0.05 3 0.15 4 0.20 2 0.10

Financial Position 0.08 4 0.32 3 0.24 2 0.16

Total 1.00 2.80 3.52 2.04Ratings: 1 – Poor, 2 – Average, 3 - Above Average, 4 – Superior

Analysis:

The table above shows the Competitive Profile Matrix of various areas of the major

competitors of Avon which is Revlon and Mary Kay. The table shows the competitive edge in

the cosmetic industry. Leading by Revlon with a total of 3.52, followed by Avon in the second

position with 2.80 and Mary Kay with 2.04. Avon has to improvise in certain factors such as

employee morale and product image to take them further in the international markets to be a

global player in the cosmetic industry. This can be achieved as Avon is financially strong and

working on the Global Expansion Organization Structure with adaption of new technologies.

SWOT Matrix

SWOT MATRIX STRENGTHS WEAKNESSES

NOR NAZERANAH OMAR DINKLCP101003 Page 20

Page 21: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

1. Global market leader2. Largest sales force3. World’s largest micro lender

to women4. World’s largest direct seller5. ISO 14001 certification for

largest manufacturing plants.6. Avon owns its major

manufacturing and distribution centers.

7. Increase in revenue in most geographic area due to increase in internet presence.

8. First cosmetic manufacturer to end animal testing.

1. Decrease in North American Sales Revenue.

2. Weak brand image3. High advertising/budget

costs4. Poor brand loyalty5. Does not target urban

trendsetters.6. Beauty sales in the first

quarter 2009 were 12% lower compared to sales revenue in previous year 2008.

OPPORTUNITIES SO STRATEGIES WO STRATEGIES

1. Organic (Green) products2. Eye makeup market3. Increase internet presence4. Urban trendsetters market5. The cosmetic industry tends

to countercyclical.6. Demand for cosmetic

products normally remains constant and unaffected by economic distress

1. Increase sales by increasing internet presence. (S7, O3)

2. Maximize on revenues in the makeup market through advertising and the sales force. (S2, O2)

3. Manufacture and distribute more products that are eco-friendly.(S6,S4,S2,O1)

1. Increase awareness of efforts to protect the environment. (W2, O1)

2. Increase market share by positioning products to attract urban trendsetters (W5,O4)

THREATS ST STRATEGIES WT STRATEGIES

1. Competitors such as Mary Kay and Revlon

2. Rejection of internet selling by sales representatives

3. Economic downturn4. Rising cost of commodities

1. Educate employees on the benefits of increasing internet presence.

2. Improve marketing strategies to new and existing customers by repositioning the brand, coupons, billboards, new packaging. (S4,S6,S7, T1, T3)

1. Discount products that are not earning substantial revenue and then faze them off the market in a timely manner. (W6,T3)

Analysis:

NOR NAZERANAH OMAR DINKLCP101003 Page 21

Page 22: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Based on the SWOT matrix table above, Avon have to improvise and realize that brand

repositioning in the form of packaging is necessary, in order for Avon to create a stronger brand

image and improve customer loyalty in international markets. Through an aggressive market

penetration Avon will be able to increase revenue, further their strength and gain more

competitive edge and increase profitability mostly in the North American region.

Strategic Position and Action Evaluation (SPACE) Matrix

FS Y6

Conservative 5 Aggressive

4

3

2

1CA IS

-6 -5 -4 -3 -2 -1 1 2 3 4 5 6X

-2

-3

-4

-5Defensive Competitive

-6

ES

Strategic - aggressive(0.8)-y(1.20)x

Internal Strategic Position External Strategic Position

NOR NAZERANAH OMAR DINKLCP101003 Page 22

Page 23: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Financial Strength (FS) Environmental Stability(ES)

Return on Investment 3

Leverage 2

Liquidity 5

Working Capital 5

Cash Flow 5

Competitive Pressure -4

Unemployment -4

Technological Changes -3

Barrier to Entry -4

Price elasticity of Demand -1

FS Average 4 ES Average -3.20

Competitive Advantage (CA) Industry Strength (IS)

Market Share -3

Product Quality -3

Customer Loyalty -2

Control over Suppliers and Distributors -3

Technological Know-How -3

Growth Potential 5

Profit Potential 4

Financial Stability 4

Productive Capacity Utilization 3

Resource Utilization 2

CA Average -2.80 IS Average 3.60

Financial Strength + Competitive Advantage

Y axis=FS (4) +ES (-3.2) = .08

X axis=CA (-2.8) +IS (3.6) =1.2

FS & IS +1(worst) to +6 (best)

ES & CA -1(best) to -6(worst)

Analysis:

NOR NAZERANAH OMAR DINKLCP101003 Page 23

Page 24: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

According to the diagram above Avon has a strong competitive position in the market

with rapid growth. Avon is using their internal strengths to:

(1) Maximize on external opportunities

(2) Minimize internal weaknesses

(3) Avoid external threats

Avon should improvise on their strategies of market penetration, improve research and

development to develop a full line of “green” products, reposition the brand in terms of

packaging and forward integration. These are all attainable strategies that Avon have to proceed

with in to the near future to be a global player in the cosmetic industry.

Both the SPACE and SWOT matrix revealed possible strategies to implement in order to

further grow our customer base create brand loyalty and further extends its competitive

advantage and market leadership status. It also acts as a guide to the areas where more emphasis,

financing and allocation of valuable resources is necessary. Allocation of resources and

commitment by all stakeholders to the outlined objectives are pivotal keys to the success of

Avon to be in the international market.

While the SWOT and SPACE matrix identifies numerous strategies that Avon can

implement in order to increase brand loyalty, product development and increase internet

presence. To become a global player in the cosmetic industry, Avon should work on issues that

relate to brand loyalty.

The Quantitative Strategic Planning Matrix (QSPM)

NOR NAZERANAH OMAR DINKLCP101003 Page 24

Page 25: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Quantitative Strategic Planning Matrix (QSPM) for Avon IncSTRATEGIC ALTERNATIVES

1 2 3Improved marketing strategies (packaging, coupons, online bill boards, discounts

Improve R&D to introduce more “green” product

Improve employee empowerment through regional training and development

Key External Factors Weight AS TAS AS TAS AS TASOpportunities

1. Organic (Green) products 0.16 1 0.16 4 .64 2 .32

2. Growth in eye makeup market 0.09 4 .36 3 .27 3 .27

3. Increase internet presence 0.1 3 0.3 1 0.1 2 .20

4. Urban trendsetters market 0.05 3 0.15 3 0.15 2 0.1

5. The cosmetic industry tends to countercyclical 0.1 3 0.3 3 0.3 3 0.36. Demand for cosmetic products normally remains constant and unaffected by economic distress 0.11 3 0.33 2 0.22 1 0.1

Threats

1. Competitors 0.1 3 0.3 3 0.3 1 0.1

2. Economic downturn 0.1 2 .20 1 0.1 1 .1

3. Rising cost of commodities 0.09 ― ― ― ― ― ―4. Rejection of internet selling by sales

representatives 0.1 2 0.20 1 0.10 3 0.20

SubTotal 1 2.30 2.18 1.69

NOR NAZERANAH OMAR DINKLCP101003 Page 25

Page 26: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

NOR NAZERANAH OMAR DINKLCP101003 Page 26

Page 27: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Analysis:

NOR NAZERANAH OMAR DINKLCP101003 Page 27

The Quantitative Strategic Planning Matrix (QSPM) for Avon IncSTRATEGIC ALTERNATIVES

1 2 3Improved marketing strategies (packaging, coupons, online bill boards, discounts

Improve R&D to introduce more “green” product

Improve employee empowerment through regional training and development

Key Internal Factors

Strengths

1. Global market leader 0.12 3 0.36 3 0.36 3 0.36

2. Largest sales force 0.11 4 0.44 3 0.33 4 0.44

3. World’s largest micro lender to women 0.1 4 0.4 4 0.4 4 0.4

4. World’s largest direct seller 0.15 4 0.6 4 0.6 4 0.6

5. ISO 14001 certification for all manufacturing plants. 0.05 3 0.15 3 0.15 3 0.15

6. Avon owns its major manufacturing and distribution centers 0.06 4 0.24 4 0.24 3 0.18

7. Increased in revenue in most geographic area. Due to increase in internet presence. 0.05 4 0.2 3 0.15 4 0.2

8. First cosmetic manufacturer to end animal testing. 0.05 4 0.2 3 0.15 3 0.15

Weaknesses

1. Decrease in North American Revenue. 0.05 3 0.15 3 0.15 3 0.15

2. Weak brand image 0.08 2 0.16 2 0.16 4 0.32

3. High advertising budget/ costs 0.05 ― ― ―

4. Does not target urban trendsetters. 0.05 ― ― ―

5. Poor brand loyalty 0.05 4 0.2 3 0.15 4 0.2

6. Beauty sales in the first quarter 2009 were 12% lower versus the prior year period. 0.03 ― ― ―

Grand Total 1 5.40 4.87 4.69

Page 28: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Based on the analysis of the QSPM matrix it reveals that improved marketing strategies is

the most attractive strategy along with improvement in research and development to introduce

“green” products for Avon to reach the international markets in a global perspective. Avon has

implemented some new strategies to overcome the existing strategies to boost up their level in

the international markets to be the global player in the cosmetic industry.

New Strategies

1) To increase revenue total revenue by 10% all market segments- This will be achieved

through improved marketing strategies (product placement, mail in discounts, coupons,

online and bill boards ) to benefit both new and existing customers.

2) To increase and further develop the “green” product line by 10% - this will be done

through investment research and development in order to develop such products.

3) To improve brand image and brand loyalty- Through repositioning the Avon brand in

terms of product packaging to differentiate the product from being just being another

commodity.

Existing Strategies

1) Direct Selling/ Network Marketing

2) Increase internet presence

3) Employee Empowerment

Proposed Strategic Alternatives in the Quantitative Strategic Planning Matrix (QSPM)

An improved market strategy (market penetration)

This is an excellent way to boost sales and promote the brand. Avon is already the market leader

and people are aware of the brand. However, to be a global player in the cosmetic industry, Avon

has to go through more aggressive advertisement campaigns, sales promotions, mail-in

discounts/coupons, increase internet presence and bill boards. Avon will be able to further

NOR NAZERANAH OMAR DINKLCP101003 Page 28

Page 29: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

heighten brand awareness, build customer loyalty and create appeal for their products by new

and existing customers. This is an important strategy for Avon to be in the international market

to reach the global perspective. Avon looks to achieve this over the first two years with an

estimated amount of 10 million dollars. With 5 million dedicated to further increase internet

presence and the remaining 5 million to cover the other activities.

Improve research and development to introduce more “green” products.

This will be achieved through investment in research and development; to develop these eco-

friendly products through means which are more environmentally friendly. The demand for

“green” products appears to be a very viable market as consumers and distributors are becoming

more conscious about protecting the environment. Thus creating a demand for these products,

this also presents the opportunity to increase brand loyalty. This will be done over the next three

years at an estimated cost of 10 million dollars.

To improve brand image and brand loyalty

Being that Avon lagged behind its major competitors in terms of brand loyalty; and the assertion

by CEO of Brand Key Robert Passikoff that Avon is not associated with anything and Avon

seems to be more like a commodity. Avon has decided to reposition the brand in terms of

packaging and labeling of Avon products. Avon seeks to make the Avon logo more pronounced

on the products. It is believed that consumers will support and be loyal to brands that they can be

identified with. Avon will actively pursue this over the next three years at an estimated cost of 10

million dollars.

To implement the proposed alternative strategies of Avon to be a global player in the

cosmetics industry a total cost of $ 30 million is estimated. The three new alternatives of

quantitative strategic planning matrix that has been proposed for Avon will develop a brand new

image for Avon from the existing major competitors to compete through a competitive edge and

strengthen their base to be a leader in the cosmetic industry in developing Avon in reaching the

global perspective.

FINANCING OPTIONS

NOR NAZERANAH OMAR DINKLCP101003 Page 29

Page 30: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Based on the proposed alternatives given in the quantitative strategic planning matrix, the

recommendations can be implanted on a phase basis over the next three years for Avon. The

financing options that will be recommended for Avon for the next three years will be as below:

EPS/EBIT Analysis for Avon Product Inc.

Amount needed: $30 million

Stock Price: $31.90

Tax Rate: 35%

Interest rate: 5%

# of shares outstanding: $427.5 million

Common Stock Financing

Recession Normal Boom

EBIT 773.83 1018.2 1287.8

Interest 0 0 0

EBT 773.83 1018.2 1287.8

Taxes 249.17 327.86 414.67

EAT 524.66 690.30 873.13

# Shares 428.4 428.4 428.4

EPS 1.22 1.61 2.04

Debt Financing

NOR NAZERANAH OMAR DINKLCP101003 Page 30

Page 31: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Recession Normal Boom

EBIT 773.83 1018.20 1287.8

Interest 1.5 1.5 1.5

EBT 772.33 1016.7 1286.3

Taxes 248.69 327.4 414.2

EAT 523.64 689.3 872.1

# Shares 427.5 427.5 427.5

EPS 1.22 1.61 2.04

Combination Financing (Debt 30%/Stock 70%)

Recession Normal Boom

EBIT 773.83 1018.2 1287.8

Interest .45 .45 .45

EBT 773.4 1017.8 1287.4

Taxes 249.03 327.73 414.5

EAT 524.4 690 872.9

# Shares 428.1 428.1 428.1

EPS 1.22 1.61 2.04

Combination Financing (Debt 70%/Stock 30%)

NOR NAZERANAH OMAR DINKLCP101003 Page 31

Page 32: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Recession Normal Boom

EBIT 773.83 1018.2 1287.8

Interest 1.05 1.05 1.05

EBT 772.78 1017.1 1286.75

Taxes 248.84 327.5 414.3

EAT 523.9 689.6 872.5

# Shares 427.8 427.8 427.8

EPS 1.22 1.61 2.04

Analysis:

Based on the four tables above, the common stock financing, debt financing, combination

financing of debt and stock shows that Avon has chosen Equity for financing the business. This

is because if recession continues and Avon does not make any profit they are not obligated to

pay any dividends. With equity there is the existence of capital gains for Avon.

Avon Projected Financial Statement

Below are the tables of Projected Financial Statement which is income statement and

balance sheet statement made for Avon based on the financial options and recommendation of

the strategic analysis that has been proposed for Avon through the quantitative strategic planning

matrix for the next three years.

AVON'S PROJECTED INCOME STATEMENT FOR 2010-2012 IN MILLIONS

2009 2010 2011 2012

NOR NAZERANAH OMAR DINKLCP101003 Page 32

Page 33: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Revenue 10,284.7

0 11,313.1

7 12,444.4

9 13,688.94

Other revenue Total 98.1

0 113.17 124.45 136.90

Total Revenue 10,382.8

0 11,426.2

7 12568.94 13,825.84

Cost of Revenue total 3,888.3

0 4,227.7

2 4,650.5

1 5,115.56

Gross Profit 6,396.4

0 7,198.5

5 7,918.4

3 8,710.28

Cost and Expenses

Selling/General/Administration/advertising 5,389.8

0 5,347.5

0 5,907.4

0 6,433.80

Research and Development 66.7

0 71.7

0 74.7

0 76.70Depreciation/Amortization - - - -Interest Expense (Income) - - - -

Unusual Expense (Income) 561.0

0 21.7

1 23.9

0 26.27Other Operating Expenses, Total - - - -

Operating Income 1018.2 1,757.6

4 1,912.4

3 2,173.51

Interest Income (Expense), Net Non Operating - - - -Gain (Loss) on Sale of assets - - - -

Other Net (7.1

0) (9.0

0) (8.0

0) (7.40)

Income before Tax 926.5

0 1,058.8

0 1,131.2

0 1,244.30

Income tax total 298.3

0 297.0

0 260.4

0 170.40

Income after tax 628.9

0 761.8

0 870.8

0 1,073.90

Minority Interest (2.4

0) (2.0

0) (2.0

0) (1.60)Equity Interest 0 0 - -US GAAP Adjustment $0.00 $0.00 $0.00 -

Net Income before Extra. Items 625.8 759.8 868.8

0 1,072.30

Total extraordinary items 0 0 - -

Net Income 625.8 759.8 868.8

0 1,072.30

AVON'S PROJECTED BALANCE SHEET FOR 2010-2012 IN MILLIONS

2009 2010 2011 2012ASSETS

NOR NAZERANAH OMAR DINKLCP101003 Page 33

Page 34: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Cash and short term investment 1338.4 1356.4 1364.44 1368.4Total Receivables net 1219.9 1119.9 1169.9 1219.9Total Inventory 1067.5 1174.25 1291.68 1420.85Prepaid Expense 122.8 120.5 110.7 122.8Other Current Asset 440.7 443 390.7 440.7Total Current Asset 4189.3 4214.05 4228.38 4572.65

Property/Plant/Equipment total net 1529.6 1529.6 1529.6 1529.6Goodwill, net 224.8 231.8 233.8 234.8Intangible, Net 125.8 131.8 134.8 135.8Long term investment' 49.8 49.8 49.8 49.8Note Receivables-Long term 0 0 0 0Other Long Term Assets, total 713.4 713.4 713.4 713.4other Assets total 0 0 0 0Total Assets 6832.7 6870.45 6889.78 7236.05

LIABILITIES AND SHAREHOLDERS EQUITYAccounts Payable 754.7 754.7 754.7 754.7Payable Accrued 0 0 0 0accrued Expenses 1247.3 1247.3 1247.3 1247.3Notes Payable/short term debt 0 0 0 0Capital Leases 138.1 138.1 138.1 138.1Other current liabilities total 134.7 241.9 358.88 488.05Total current liabilities 2274.8 2382 2498.98 2628.15

Total long term debt 2307.8 2357.8 2360.8 2360.8Deferred Income Tax 173.8 173.8 173.8 173.8Minority interest 40 40 40 40Other liabilities, total 763.7 713.7 710.7 710.7Total Liabilities 5560.1 5667.3 5784.28 5913.45

Redeemable Preferred stock 0 0 0 0Preferred stock - non redeemable, net 0 0 0 0Common Sock 186.1 204.1 212.1 216.1Additional Paid in capital 1941 1941 1941 1941Retained Earnings (Accumulated Deficit) 4383.9 4383.9 4383.9 4383.9

Treasury - Common -4545.8-

4587.45 -4733 -4525.8Other Equity -692.6 -738.4 -698.5 -692.6Total Equity 1272.6 1203.15 1105.5 1322.6

Total liabilities & Shareholders’ Equity 6832.7 6870.45 6889.78 7236.05

Project Financial Ratios

NOR NAZERANAH OMAR DINKLCP101003 Page 34

Ratios 2010 2011 2012

Current Ratio 1.84 1.8 1.7

Quick Ratio 1.3 1.2 1.2

Operating Profit Margin 0.15 0.15 0.16

Net Profit Margin 0.07 0.07 0.07

Return on Stockholders’ Equity 0.63 0.79 0.81

Total Asset Turnover 1.66 1.82 1.91

Debt/Equity Ratio 4.7% 5.2% 4.5

Earnings Per Share 3.7 4.1 5

Page 35: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Analysis:

• The current ratio and quick ratios show that Avon is in a good position to meet its short

term obligations even without relying upon the sales of its inventories

• The operating profit margin shows that Avon is improving in its efficiency which will

result in greater profit productivity

• The net profit margin shows that profitability will improve thus shareholders can expect

greater return

• The ROE shows that the return on equity is improving

• The total asset turnover shows that the return on the asset investment is good

• The Debt/Equity ratio shows that Avon is using more equity to finance operations

• EPS shows that Avon is becoming more attractive to investors

EVALUATION – BALANCE SCORE CARD

Balance Score Card

NOR NAZERANAH OMAR DINKLCP101003 Page 35

Page 36: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Balance Scorecard is the strategic planning and management system that provides a

frame work for measuring performance and assisting managers identify what it is needs to be

measured and completed, while enabling executives in the execution of these strategies

constitutes the makeup of the balance scorecard for the business.

There are four fundamental perspectives from which organizations using this system can

implement their vision and strategies include:

1) Financial Performance Perspective

This element is showing how viable a business appears to shareholders in order to

achieve financial success.

2) Customer knowledge Perspective

Highlights the importance of satisfying customers while focusing on the achievement of

the organization’s vision.

3) Internal Business Processes Perspective

Refers to the internal aspects of the business, wherein managers can analyze the overall

operations of the business to see how well the provision of its goods and services and its

ultimate impact on achieving total customer satisfaction.

4) Learning and Growth Perspective

Includes the training and continuous upgrading of employees knowledge, skills and

abilities that necessitates the advancement of being technologically savvy.

Avon Products Inc. uses the Balance Score Card system to implement the essential link

between business-planning strategies and people plans for greater productivity. This is to ensure

that Avon can achieve increase growth in revenue, increase market share, ensuring the delivery

of quality and timely services, providing the appropriate training and development of employees,

delivering improved services by linking business strategies to people plans. Forecasting

customers need by anticipating changes and adopting various technologies is high demand on the

priority list of the Avon to develop them as a cosmetic leader changing towards a global player

in the cosmetics industry.

AVON BALANCE SCORE CARD EVALUATION

NOR NAZERANAH OMAR DINKLCP101003 Page 36

Page 37: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Objectives Measure/TargetTime Expectation

Primary Responsibility

FinancialChief Financial

OfficerTo succeed financially,

Lower customer acquisition costs.

Shareholders valueContinuous

how we appear toDouble digit sales growth

Growth in revenue

our shareholdersIncrease market share for on-line products

Increase profitability

Target 10% return on investment.

Market share

 Achieve at least 10% on net profit in 1st year of new product Net profit on percentage sales

Customers Operations

How to achieve ourEnsure on-time delivery always

Percentage of on- time delivery. Continuous

vision, the importance of Increase customer

retention

Number of customers, email addresses, time duration between purchases

satisfying our customers

Reward customer loyalty

Percentage on returnConversion rate

Internal Business OperationsTo analyze operations and see how products and services achieve

Supply chain excellence in order confirmation

Quick turnaround on the delivery of orders Continuous

total shareholder and customer satisfaction,

Adoption of some social services

Incorporating and engaging quality, talented skills

What business process must we excel at?  Generating revenue

 Operations - measures of quality, products and costs

Learning & Growth Human ResourceTo achieve continuous training and upgrading

Ensure managers are exposed to

People - employee retention, training and skills Continuous

of employees skills and abilities. market changes

Successful penetration of new markets

Always keeping abreast of new technology

 Online service innovation

Continuous improvement in CRM

 Advancing change and self-improvement

 Implement a succession plan

Increase value in Knowledge management system

Analysis:

NOR NAZERANAH OMAR DINKLCP101003 Page 37

Page 38: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

The main aim to evaluate Avon based on Balance Score Card is to enables Avon to meet

their strategic objectives by identifying the various means of improving workforce productivity.

This is an effective tool in maximizing Avon resources and building capacity in a structured and

planned way. It helps Avon to improvise based on the performance measurement and key

indicators which has been stated. The department officers are responsible in meeting the targets

which leads to Avon’s objectives. A continuous time expectation is needed to ensure that the

structured and planned targets to be achieved. These plans not only look at the strategic and

operational components for Avon to succeed, but also consider the people factor in developing

and delivering Avon business in the international markets to be the global player in the cosmetics

industry.

AVON IN GLOBAL PERSPECTIVE

Avon Being Global

From a global perspective, three avenues of growth were identified by Avon management which

are as below;

1. Geographic Growth

2. Leveraging distribution channels in emerging and developing markets

3. Marketing in developed industrial areas.

The Global Product Management Group

The new multinational Global Product Management Group was an essential factor in the new

organization. The group would support the entire company with “Centers of Excellence” to

increase Avon’s competitive advantage in the marketplace. With a global scope and

multinational staffs, the centers would be located around the world, wherever the appropriate

expertise existed. The Global Product Management group would be responsible for product

management, global brands, global sourcing (raw materials) and logistics, worldwide

manufacturing, product research and development and certain global aspects of sales and

customer service support.

NOR NAZERANAH OMAR DINKLCP101003 Page 38

Page 39: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

The Global Planning And Development

In addition to the above, the responsibilities of the Global Planning and Development group were

expanded to include new business development. The group would manage Avon’s emerging

market ventures in China, Eastern Europe, Russia, and other parts of the former Soviet Union, as

well as other new market ventures.

Advantages Of A Global Organization

The new slimmed-down global organization will make Avon more responsive to local markets

while providing economies in such areas as global manufacturing, purchasing and research and

development. Avon will also be able to better exchange best practices, growth initiatives and

competitive information more rapidly from market to market and become the embodiment of the

phrase, “Think global, act local.”

The new market-oriented organization was expected to speed decision-making, eliminate

unnecessary levels of management, allow sharing of successful business practices by previously

autonomous divisions, and reduce overhead by centralizing such functions as purchasing and

manufacturing. It would concentrate on discovering what buyers wanted in each individual

market and provide consumers with products in a way that would enable Avon to achieve its

long run growth objectives.

Avon Global Direction

Avon forces to engage the entire company in becoming more customer-oriented and more

market driven. The task forces established the following targets to guide management in

objective setting and strategy development:

1. Improve consumer attitudes toward the attractiveness and accessibility of Avon and its

products, and begin to develop a global image for the company;

2. Improve the quality of the product line, in bringing new products to market and in

weeding out weaker or inappropriate items;

3. Introduce global product planning and the extension of global sourcing (finding the most

appropriate source of raw materials);

NOR NAZERANAH OMAR DINKLCP101003 Page 39

Page 40: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

4. Improve customer database management and market segmentation; and

5. Establish new ways for customers to shop Avon, and improve in the speed at which

customers and sales representatives could order and receive products.

Having implemented a regimen of operating strategies, financial controls, organizational

changes, innovative leadership, and market-based targets over the past four years, Avon now

favorably positioned to enjoy a period of growth. In a worldwide corporate climate of abrupt

changes and discontinuities, of newly emerging forces and dangers, and of unforeseen influences

at home and abroad, Avon’s leadership could well ask the unanswered question, “Will the

internal organizational and other changes that have been made reposition Avon so that it can

compete successfully in the global marketplace.

AVON STRATEGIC PROBLEMS, TRENDS & FORCES

What to do about new product lines

It would be a good idea for Avon to research into launching new products in different lines than

they are currently in but keep them similar in the industry. In order to continue growing and

obtain bigger cash flows and profits you have to spend before you get a payoff. With Avon's

new research and development plant they should be able to quickly design and market new

product lines without many problems. Having new product lines will help maintain growth and

internal expansion.

How to maintain growth

Avon has been growing globally for decades to continue to do this Avon needs to be aware of

what it will entail. They have taken care of research and development with their new facility but

there are many other factors that could inhibit them. Reluctances to expand internally will hold

them down as well as finances. Avon may have to look into selling totally new products, which

is consistent with what was before mentioned.

How to continue cutting costs

NOR NAZERANAH OMAR DINKLCP101003 Page 40

Page 41: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Throughout Avon's business transformation they have done an incredible job cutting costs

mostly thanks to Kropf. How to continue to cut costs may rise a problem because they have

launched new cosmetics that are selling well, put millions into research and development, and do

not want to upset loyal customers by retiring old products that have a loyal customer base. Some

customers may be hooked on a classic product such as Skin-so-Soft and just happen to by other

products every once in a while when they reorder their Skin-so-Soft. Cutting this product out of

the line will not only result in a loss of sales due to the product but all other little buys that each

customer may order in the process. Avon's business transformation may have to look elsewhere

at every part of its value chain to try and cut out expensive virtually unneeded parts to try and

cuts costs.

Internal Expansion

Some may say that there is no room for internal expansion because Avon has done such a good

job in international markets and that it is not needed. I believe that the CFT market is so big that

internal expansion within the company should be a must. I think Avon should continue to grow

within and outside the United States, create more jobs and look into developing more new

product lines in the men's shaving and baby care areas. Avon's strategy wants to diversify and

penetrate new markets and what better way to do it than with new products. Developing alliances

with department stores and more Internets selling will also help with internal expansion.

Direct-Selling Model Dependent on Earnings from Active Sales Representatives

In both domestic and global markets, Avon's sales largely come from direct selling through its

Active Sales Representatives. The 6.2 million Representatives that Avon employs are

independent contractors that receive a percentage commission for their sales but do not enjoy

employee benefits. The idea behind the direct-selling model is that if Avon can eliminate the

middle-man (department and cosmetic stores) and get its products directly to consumers, they

will be able to cut costs and increase profits. One of the goals of the 2005 Turn-around Plan to

increase the number of Representatives paid off in 2007 when the company had a 13% increase

in net sales as a result of the increase in the number of Representatives. Due to its reliance on

direct-selling through representatives, Avon not only competes for the end consumer but also for

representatives that are knowledgeable about the industry and about beauty products. Avon's

NOR NAZERANAH OMAR DINKLCP101003 Page 41

Page 42: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

dependence on the productivity and profitability of the representative direct-selling model

exposes it to cost and litigation risks. In 2004, four Avon representatives filed a class action

lawsuit against the company for alleged "channel stuffing," where Avon supposedly shipped

products representatives without an order and held representatives responsible for payment for

the unordered shipments. It is likely that AVP will incur future costs through litigation and

resolution of the lawsuit, which may include terms that would increase costs and decrease profits

for Avon.

Multi-year Cost Restructuring Initiative May be Unable to Reduce Costs and Support

Increased Advertising

In late 2005, Avon launched a Turn-around plan that included several strategic initiatives to

realign costs, improve products, and increase market share through brand competitiveness. Avon

expects annualized savings of more than $430 million when the plan is fully implemented in

2011-2012. However, with the global economic downturn and slowing demand for non-essential

personal care products, Avon may not be able to achieve its savings target. For example, Avon

has dropped its prices so far that at the end of Q2 2009, 70% of its products were prices less than

$5. Falling short of its savings targets would be detrimental to Avon's profitability as it would no

longer be able to support its increased advertising spending. In 2009, Avon decreased advertising

costs by 10% which was in contrast to the 48% increase in 2007 and 83% increase in 2006 - a

sign that the company was cutting back due to the economic downturn to support new product

launches and improve brand recognition as part of the turn-around plan. Although Avon does not

want to reduce advertising spending, which means success of the turn-around plan is vital to

supporting Avon's increased advertising costs as well as costs incurred by the company's entry

and expansion in new global markets, the economic downturn has forced the company to cut

back on advertising. At the end of 2009, the company revised its turn-around plan and now hopes

to save $200 by 2011-2012.

Direct-Selling Business Model Exposed to Regulations in the Global Market

Avon has become synonymous with the direct-selling business model - the process by which the

company hires independent contractors, called Active Sales Representatives, and pays them

percentage of commission to sell Avon products directly to customers. By removing the need for

NOR NAZERANAH OMAR DINKLCP101003 Page 42

Page 43: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

a middle distributor, such as a department or cosmetic store, Avon hopes to eliminate costs and

increase profits. In 1998, the Chinese government banned direct-selling in response to abuses

perpetrated by some corporations. The company's business in the region was crippled in the

short-term and strongly disadvantaged in the long-term as the company was forced to abandon its

direct-selling strategy and had to open its own retail stores in order to sell products. Not until

2006 did China re-licensed Avon for direct-selling, which allowed Avon's revenues from China

to increase rapidly from 2006 to 2008. Total revenue from China rose from $212 million in 2006

to $353 million in 2009. Similar situations may arise in Avon's other emerging market segments,

which would negatively impact Avon's revenue growth globally.

Large Presence in Global Market Exposes Avon Products to Currency Fluctuation Risks

80% of Avon's sales revenues come from markets outside of the United States, making the

company very sensitive to currency fluctuations and the strength of the dollar. A weakening of

the dollar against foreign currencies would allow Avon products to become more competitively

priced in global markets, thus positively affecting sales revenue from foreign markets; however,

a weak dollar would also mean higher costs for products manufactured overseas.

AVON KEY SUCCESS

Key success factors concern the product attributes, competencies, competitive

capabilities and market achievements with the greatest bearing on company profitability. These

are the things that the company does well and helps them obtain profits.

Ability to get new products out of R&D and into the market

With all the money and time Avon has put into the Research and Development part of the

company it has paid off. In 2002 Avon spent $100 million on a new state-of-the-art research and

development facility. This provides researchers with the materials they need in an easy work

environment, which in turn improves efficiency in every aspect of the process. Having this

facility enables Avon to have their new products out in the market very quickly compared to

other rivals such as Revlon and Estee Lauder. This skill gives Avon an image of superior

technology and quality and provides them with the first mover advantage in many cases as well.

Internet Capability

NOR NAZERANAH OMAR DINKLCP101003 Page 43

Page 44: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

It was only in the past decade that Avon became familiar with the Internet. When Jung took over

she saw that e-commerce was on a fast rise and that Avon was not capitalizing on this sales

opportunity. It was only a matter of time before Avon had their own website that now has all

kinds of e-commerce activities. Avon's website enables customers to order products, read on the

most recent developments by Avon, informs them of sales and clearances as well as free gift

giveaways and the top ten selling items. Customers can shop by product or category and check

on their account status, review the most frequently asked questions or get assistance all at the

click of a mouse. By making their web site easy to navigate and perform multiple tasks, Avon

has helped reduce ordering costs and increase sales.

Managerial Experience

Andrea Jung, Avon's Chief Executive Officer, has been with Avon since 1994. Before working

for Avon, she graduated from Princeton and joined Bloomingdales where she rose to second in

command before the age of thirty. When she joined Avon she entered as the President of United

States product marketing and continued to impress her upper management. Her bold decisions

made her stand out and she was named CEO in 2001 at the age of forty. Susan Kropf who has

been with Avon since the early 90's moved and Executive Lieutenant, to Executive Vice

President and President of North American operations. Kropf has worked alongside Jung and

was key in the Business Process Reengineering efforts that achieved great success in 2001, with

savings of more than $150 million. The experience and success of Avon managers is un-

teachable, irreplaceable and are definitely a huge factor on why Avon is where it is today.

Accurate Filling of Orders

Only six years ago you would hear customers complain about the inaccuracy of Avon's mail

orders. This is a rare complaint today. New training programs and the implementation of the

Avon website has enable the company to fill orders fast and accurately. The days of human error

with direct selling have almost become obsolete with the new initiatives taken place to eliminate

such error. Incentives implemented by the sales leadership program have also made Avon give

consistent quality service.

CONCLUSION

NOR NAZERANAH OMAR DINKLCP101003 Page 44

Page 45: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

Avon management has re-evaluated and map out the long-term future of the firm’s business to

develop them in the international market and be a player in cosmetic industry on a global level.

By Customizing Marketing Internationally based on geographical areas, Avon tries to satisfying

the subtleties and intricacies of customer demand around the world meant that the firm’s

business would vary from country to country and market to market. To reach a wider target in

the geographical area over the globe, Avon developed Avon Select, a direct marketing program,

to enable customers to buy Avon products in various settings. Customers could order products

via any one of four methods: through their Avon representative, by mail though special Select

catalogs, by the 1-800-FOR-AVON telephone, or by FAX which were offered worldwide. This

indicates that Avon is playing a major role as a cosmetic leader in a global perspective.

Other than that, new programs were designed to complement the existing network of Avon sales

representatives to reach a wider coverage in developing global direction. Avon spent 2 to 3

percent of annual sales on image-enhancing advertising and promotion programs worldwide to

make customers aware of Avon products and the purchase options available. Even retail stores

were not ruled out by management as a viable alternative for the distribution of Avon products.

It was not easy for Avon in the process to develop a global organization. It affected the firm in a

number of different ways. The product line was rationalized by strengthening and developing a

certain number of global brands that were important and sold on a worldwide basis. Sourcing of

raw materials and the logistics system took advantage of Avon’s strong presence in many

markets in terms of efficiencies in the supply chain. A changing environment which encouraged

lower duty rates suggested that it was no longer necessary to manufacture products in the

countries where they were sold. Underutilized manufacturing plants, from a capacity of view,

could now be consolidated with others plants were also an affecting issue for Avon in being

global.

By implementing a regimen of operating strategies, financial controls, organizational changes,

innovative leadership, and market-based targets has favorably positioned Avon to enjoy a period

of growth in worldwide. The internal organizational and changes that have been made reposition

Avon so that it can compete successfully as the “Cosmetic Leader in Global Marketplace”

REFERENCES

NOR NAZERANAH OMAR DINKLCP101003 Page 45

Page 46: Competitive Strategic Management - Developing Avon In A Global Perspective

QGM6163- CSM- PROJECT PAPER - DEVELOPING AVON PRODUCTS INC. IN A GLOBAL PERSPECTIVE

1. David, Fred, R “Strategic Management Concepts and Cases” 12ed. Prentice Hall 2009

2. Retrieved December 3, 2010 www.avon.com

3. Retrieved December 3, 2010 www.wikinvest.com

4. “Avon Calling – For Help” Business Month April, 2010.

5. “Avon Calls – At 50 Times Earnings,” Business Month November, 2006 -2009.

6. Avon Products, Inc., Annual Report, New York, N.Y., 2010

7. Avon Products, Inc., Annual Report, New York, N.Y., 2009

8. “How Avon Rings Their Chimes,” Sales and Marketing Management, November, 2009

9. Avon Products, Inc.: DEVELOPING A GLOBAL PERSPECTIVE

10. Retrieved December 2010 www.yahoo.com/images

NOR NAZERANAH OMAR DINKLCP101003 Page 46


Recommended