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Project by:Cociorvan Miriam

Motorga Alina
Truta Oana
About Avon

Avon Products, Inc, known as Avon, is an American international
manufacturer and direct selling company in beauty, household,
and personal care categories. As of 2012, Avon had annual sales of $10.0
billion worldwide in 2013.
It is the fifth-largest beauty company and second largest direct selling
enterprise in the world, with 6.4 million representatives. Avon Products
is a multi-level marketing company. The company's CEO is Sherilyn S.
McCoy, who was appointed to that position in April 2012. The former
CEO, Andrea Jung, became the executive chairman of the board.
Avon uses both door-to-door sales people ("Avon ladies" primarily, and a
growing number of men) and brochures to advertise its products. Avon
training centers help women who want to become Avon representatives
selling beauty products, jewelry, accessories and clothing. The Avon
training centers can have a small retail section with skin care products,
such as creams, serums, makeup, and washes. There are classroom areas
where the representatives learn about the products and sales techniques.
Each Avon representative is an independent sales representative running
their own business. Some of the brands include Avon, Avon Naturals,
Skin-So-Soft and Mark.
In 2012, Avon celebrated 20 years of the Avon Breast Cancer
Crusade. The company is the leading corporate supporter globally of the
breast cancer cause; through 2013, it will have donated more than $815
million to fund life-saving breast cancer research and access to quality
care.
The Avon Walk for Breast Cancer and the Avon Walk Around the World
for Breast Cancer have been critical fund-raisers. From 2003 to 2013,
Avon Walks in the United States raised more than $500 million through
the dedication of 192,000-plus participants. More than 2 million
people have taken part in the Avon Walk Around the World since the
international fund-raising Walks began in 2005.
Avon Values and Principles
Time and again, Avon's five values and guiding principles have served as
sources of strength for the company and still do today. They represent
the heart of Avon.
The Avon Values:
Trust .
Respect.
Belief.
Humility.
Integrity .

Avon's Vision
To be the company that best understands and satisfies the product,
service and self-fulfillment needs of womenglobally.

Avon's Mission

Avon's mission is focused on six core aspirations the company
continually strives to achieve:
Leader in global beauty
Build a unique portfolio of beauty and related brands, striving to
surpass competitors in quality, innovation, and value, and elevating
Avon's image to become the world's most trusted beauty company.
Women's choice for buying
Become the shopping destination for women, providing a personal,
high-touch experience that helps create lifelong customer
relationships.
Premier direct-selling company
Expand Avon's presence in direct selling, empowering women to
achieve economic independence by offering a superior earnings
opportunity as well as recognition, service and support, making it
easy and rewarding to be affiliated with Avon.

Most admired company
Deliver superior returns to shareholders by pursuing new growth
opportunities while maintaining a commitment to be a responsible,
ethical company and a global corporate citizen that is held as a model of
success.
Best place to work
Elevate the company's leadership, including its high standards, respect
for diversity, and commitment to helping Associates achieve their highest
potential in a positive work environment.
To have the largest foundation dedicated to women's causes
Be a committed global champion for the health and well-being of women
through philanthropic efforts, with a focus on breast cancer, domestic
violence and women's
Strategic Analysis of Avon

Global strategy

Avon is committed to providing a safe and healthy workplace for
Associates, contract employees and visitors. To underscore this
commitment, in 2006 the company developed and implemented the
Global Safety Strategy, which has six dimensions, outlined below.
Increase Management Involvement- Safety Leadership
Strengthening Basic Safety-safety and health programs
Setting goals and measuring performance-quarterly global safety
reports
Communications and Awareness
Increasing safety and health competence




Business unit strategy

Avon believes good governance serves as a foundation for corporate
responsibility and is committed to continually improving policies and
practices to ensure transparency and accountability of the company's
management. Avon takes a tailored and meaningful approach to
corporate governance matters. Avon strives to:
oConsider long-term strategic and business objectives
oSeek robust discussion, rather than a "one-size-fits-all" checklist
approach
oProactively monitor developments in corporate governance
oEngage in frequent communications with thought leaders and seek
advice from outside experts for timely guidance and broad perspectives
Sectorial Analysis

Opportunities

One of the main opportunities for Avon it is represented by the the fact
that as a company it is extremly involved in humanitarian causes and
this has gained them worldwide awarness and success among customers.
In order to remain strong on the market it should continue to do this and
through this they will reach out to more and more people, making them
to identify themselves with the the company.
Another opportunity for Avon is the fact they should reach out even
more, not only to women but, also to men, making them to get interested
in the brand and therefore, gaining even more credibility and success
among them.


Influence factors
1. Politic
No change in tax since 3 years.
Patents-the companies are protecting their products and manufacturing
mechanism by patent.

2. Economic
There is an increase in inflation in the U.S due to which profit margin
is decreasing because of increasing in operating cost.
There is also an increase in the GDP reflecting on the Personal Care
industry shows by growing in 2000 due to which sales of firms continue
to grow.
There are also some consumption patterns that need to be taken into
account, meaning that the company is based on the purchasing power of
the present and future customers. Their present customers represent
mainly the women, also being their core consumers.







3. Socio-cultural factors
Avon is focusing mainly on working women and offering them a wide
range of job opportunities.
Avon also realises the strong impact of health therefore, the company
is using natural ingredients in their products because of the strong beliefs
of people regarding the benefits of natural ingredients.
Because of the permanent change in lifestyle of their consumers,
Avon is adapting by using various distribution chanels to reach out to
them.

4. Technological factors
In this industry there is a very rapid change from all points of view
and they need to continuosly innovate their products.
Avon also has standards of packaging meaning that, they apply self
testing and specification of particular consumer needs(like skin color).


5.Industry trend
Nowadays the cosmetics industry trend is to reach out to customers of
all ages and adapting the products to all age cathegories.
Many cosmetics companies make placements in popular movies and
television shows.
Also, the promoting of other products like a nutrional product line
has proven to be popular in this industry.

Competition strategy
Avon is the best at understanding the other women because they
interact with them daily, on a personal level.