Group Members: Anum Sheikh Bushra Javed Mahnoor Malik Mohsin Azhar Saba Asher

Avon's Mission
The Global Beauty Leader We will build a unique portfolio of Beauty and related brands, striving to surpass our competitors in quality, innovation and value, and elevating our image to become the Beauty company most women turn to worldwide.

The Women's Choice for Buying We will 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 We will expand our 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 our industry. The Best Place to Work We will be known for our leadership edge, through our passion for high standards, our respect for diversity and our commitment to create exceptional opportunities for professional growth so that associates can fulfill their highest potential.

The Largest Women's Foundation

We will be a committed 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

We will deliver superior returns to our shareholders by tirelessly pursuing new growth opportunities while continually improving our profitability, a socially responsible, ethical company that is watched and emulated as a model of success.

 It weighs in at 249 words that cover everything from surpassing competitors to increasing shareholder value to fighting breast cancer.
It's great to do many important things all at once, but the mission statement should provide employees, customers and the world at large with one or two key goals that define success in business & universe. Ideally, mission statement should mention what your company actually does.

Key Values
Trust, Respect, Belief, Humility, and Integrity

Vision
To be the company that best understands and satisfies the product, service and selffulfillment needs of womenglobally. To be the company that best understands the needs and wants of the public as a whole, to provide best quality beauty products and services globally.

STRENGTHS
Global brand
Has a Successful channel of distribution Worlds largest Direct Seller Largest micro lender to women Far ahead of its competitors(Mary Kay and Revlon)in terms of revenue and number of employees
Rated as 100 best corporate citizens by Business Ethics Magazine. Largest manufacturing plants have been certified with ISO 14001

Dedicated workforce of 5.4 million in over 100 countries

Socially responsible; Received the Clean Industry Certificate from the federal Environment Protection Agency in 2008

Weaknesses
Weak brand image Greatest challenge is of generating buzz High advertising costs Poor customer loyalty as the products cant be associated with anything in particular Their Goodwill of $244 million and long term debt of $1.4 billion is not good

PEST ANALYSIS
Political analysis
Trade restrictions and tariffs are different for ever country hence lead to high/low variable costs. Political stability is an important factor when thinking for diversify. Tax Expense was increasing (223244 in 2006 to 362700 in 2008)
Employment laws

Avon Business Model exhibits that representatives buy products from Avon on credit and pay them back after getting sales revenues from customers.

ECONOMIC ANALYSIS
In cosmetics Industry the products tend to be countercyclical. Demand for such products normally remains constant and unaffected by economic distress. (pg 217) But due to 2008 economic downturn Avon Began:
Cutting costs, Closing unprofitable operations, Simplifying its product line Moving work to countries with low labor cost.

In the first two quarters of 2009 negative impact of currency exchange has been noticed due to foreign exchange pressure. (pg. 218)

SOCIAL ANALYSIS
Emphasis on safety
Largest manufacturing plants are ISO 14001 certified and 60% production takes place in these plants refers AVON focuses on environmental management practices (pg 215) Manufacturing plant in Mexico received the Clean Industry Certification from the federal Environment Protection Agency in 2008 (pg 215) Focusing on reduction of GHG emissions in the companys logistics and operations. Avon Foundation for women: working for the betterment and well being of Womens health and empowering them to achieve economic independence.

Technological Factors
Research and development (R&D) is essential in order to improve refines and to launch new products. A growing trend in the cosmetic industry is the introduction of Green products Technological advancements to attract more customers through use of high-tech media and innovative marketing campaigns and celebrity endorsers: Reece Witherspoon MTV star Lauren Conrad

EFE Matrix

Avon
Opportunities
Increasing demand for beauty products Menswear Market (entering new business line) Re-brand certain items to drive consumer demand Potential Emerging Markets

WEIGHTS

SCORE WTD. (1-4) SCORE

0.20 0.20 0.10 0.10

4 3 3 3

0.80 0.60 0.30 0.30

Threats
Increasing/strong competition
Recession/ Inflation Suppliers shifting to competitors

TOTAL

0.20 0.1 0.10 1.00

4 3 2

0.80 0.30 0.20 3.45

Revlon
Opportunities
Increasing demand for beauty products

WEIGHTS

SCORE

WTD. SCORE

0.20 0.15

4 3

0.80 0.45

Brazil and China key growth markets for color cosmetics

Rise in demand for organic and natural cosmetics

Introduce a new product line

0.15
0.10

3
3

0.45
0.30

Threats
Changing preferences of customers Recession/ Inflation Lots of competitors

0.20
0.05 0.15 1.00

3
1 4

0.60
0.05 0.60 3.25

TOTAL

Mary Kay
Opportunities
Increasing demand for beauty products Potential emerging markets Introduce a new product line Rise in demand for organic cosmetics

WEIGHTS

SCORE

WTD. SCORE

0.20 0.15 0.15 0.10

4 3 3 3

0.80 0.45 0.45 0.3

Threats
Increasing/strong competition Recession/ Inflation Changing consumer preferences Hazards of chemical based products

Total

0.20 0.05 0.10 0.05 1.00

4 1 2 1

0.80 0.05 0.30 0.10 3.25

Competitive Profile Matrix - CPM

Thank You