presentation on avons (by kam$)

8/7/2019 Presentation on AVons (By Kam$)

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PRESENTATION ON

Sales Strategy of AVON

SALES MANAGEMENT

PREPARED FOR:

Mujahid Mohiuddin

East West University

Department of Business Administration

PREPAPRED BY:

Afrida Tasnim

ShagotiID: 2008-1-10-112

Syaba Tarannum

Quader ID: 2009-1-10-063

Khondokar KamranBin Khaled

ID : 2008-1-10-152

DinukaSinhabahu

ID: 2007-3-10-071

Shohan AkonSunny

ID : 2007-2-13-011



COMPANY OVERVIEW

� Founded by 28 years old David H.

McConnell, a door-to-door book salesman,in 1886

� Founded as California Perfume Company

� In October 1939, the name was changed to Avon Products

� The first product produced was called theLittle Dot Perfume Set

� 600 million catalogues in 25 languagesoffering a range of 7,500 products.

� 6 million women see an Avon catalogue

every 3 weeks

� Markets in over 140 countries across theworld

� Avon sells more Products than any other manufacturer in the UK.



Components of Marketing Mix- Assisting in the enhancement of:

ProductRanges

Avonskincare

Avonhair care

Avoncosmetics

Avonfragrance

Avon bath &body

Avonwellness

� Recommending a suitable pricing strategy

� Utilization of Advertisements and other promotional tools

� Product Mix



Utilization of ADVERTISEMENTS and SALES PROMOTION



Promotion of Direct Selling Experts!

Customers can try our productsbefore buying!Phone call, telesales or meeting is the

easiest way!

AVON goes anywhere in the worldto make customer relation!



Sales Representatives of AVON in movies in the past!

In ³Edward Scissor hands´ movie in 1990, Dianne Wiest plays the part of an AVON local sales representative and here she is putting Avon's skin-care

products on Edward to hide his scars!



We are continuously addingadditional goals and

objectives around risk andopportunity for our business

Specific = We have precise and focused

attention on particular issue in each of our Environment, Governance etcsectors regarding women empowerment

Measurable= Success will be measuredon basis of EPS/ Share price and

revenue generated from worldwide Achievable= We focus on particular issue one by one so they areextremely feasible and pragmatic

Result Oriented= All of our sales efforthas generated the desired result andwill do so in future

Time= We have short, medium andlong term goals according to which

our operations are carried

Goals and Objectives



Environment

Reduce GHGemissions

Reduce energyconsumptions

Reduce water consumptions

Zero environmentalnon compliance

incidents and fines.

Avon foundation toimprove the lives of the women & their

families

Short Term (O to 12 months)Mid Term (12 to 24 months)

Long Term (24 to 60 months

� Profit Maximization

�Sales RepresentativeOptimization

� Extend fund to $1billion by 2012

� Ensuring secured and safety

workplace by 2015� Shareholder¶s wealth maximization



Target Market & market Demand



� Avon focuses on capturing the market younger women, college student,

men with disposable income in its effort to promote the sale of the sink-so-soft brand extension products

� New generation of young women between 16-35 years.

� 17 million young women in US with aggregate spending capacity of $

24 billion on cosmetics.

� For young women who wants to make their mark in World. Fun, fresh,modern and affordable price

� Avon also looks at extending market

growth to include countries like

Poland

Vietnam

Cambodia



AVON vs. Others

Market trend:

� We are a threat because we offered shares to the public in 1946. Since then, our annual revenue has risen from less than $20 million to over $8 billion and yet toincrease more.

� Cosmetics and personal care brands are highly competitive and yet the overallmarket is expanding geographically and strategically

� We are effectively holding our market position and market share



AVON

Revlon

Mary KAY

L¶Oreal

Giorgio Armani

La me

List of Other Competitors

�LANCÔME

� CHANEL�ESTÉE LAUDER

� MAX FACTOR

� BOURJOIS

� LANCASTER� GIORGIO ARMANI

� THE BODY SHOP

� CLINIQUE

� L´OREAL� RIMMEL

� MAYBELLINE

� LAKME

AVON vs. Others



COMPETITOR ANALYSIS

INDUSTRYREV AVP

32.20M131.01M6.85BMarket Cap:

16405,60042,000Employees:

8.90%-10.50%-8.70%Rev. Growth

121.46M1.35B10.69BRevenue

56.62%63.55%64.80%Gross Margin



INDUSTRYREV AVP

11.45M172.70M1.59BEBIT

8.23%10.89%13.10%Operating Margins

N/A 13.10M875.30MNet Income

0.151.1282.038EPS

9.242.267.88PE

COMPETITOR ANALYSIS



Handling Competitors via POD!

Qualitycosmetics

and personalcare

products

Avoncolor

Avonskinca

reAvonbathandbody

Avonhair care

Avonfragrance

Avonwellness

5.4 million salesrepresentatives

Avon global research anddevelopment center fullof world class scientistsand technicians

This level of product will show how we can make

AVON compete with other brands of its kind

Avon¶s new global research anddevelopment facility at Suffern, New

York and taking green marketing byheart



Route To MarketWe will create the environment such that customers get the product the moment

they think about it!

We will reach to each and every actual and potential customer through perfectlymanaged and executed strategies for direct sales, channels, and internet

Everyday over five million of our sales representatives will provide innovative andappealing beauty products to millions of satisfied customers

We will proudly emphasize more on direct sales strategies to generate billions of customer transactions

Under direct sales strategies it is best that we adapt direct home visit, field basedsales or mail orders



Consumers

Retailer

Wholesaler

AVON

DirectSelling



AVON·S Weapon Ov er Competitors- Direct Selling Magic!

� A simple phone call or meeting by our local sales representatives can be the

friendliest yet strong way to create an ambiance and perfectly flourished personalrelationship with customers

� You may also benefit from the special expertise of one of our qualified Beauty Advisors.

We understand the importance of providing our Representatives with theentrepreneurial skills, knowledge, and promotional support they need to make their businesses thrive.

Best of all we will give free, no-hassle delivery and the great, personalizedservice across the world.

Sometimes we will send highly qualified Beauty Advisors so that customers canbenefit from the special expertise



Other route to market

� Buy Avon Online:

With our new website YourAvon.com busycustomers can enjoy free delivery

United States customers will be able buydirect from Avon's online store, atwww.avon.com

A new customer can find aneRepresentative

� Buy Avon through channels:

We will try to constantly develop newchannels to deliver the best of Avonproducts and services

Customers will find Avon in kiosks, beautycenters and beauty boutiques, and in outletsand department stores



Supply chain� Goal of Supply Chain

� Supplier Code of Conduct

� Avon utilizes both company-owned manufacturing facilities and third-partysuppliers to source its products

� In all, Avon¶s suppliers currently number approximately 16,000 and hail from50 countries.

� Eighty-nine percent of our beauty products are manufactured in Avon-owned facilities.

� All of our non-beauty products are sourced through third-partymanufacturers in 25 countries across five continents.

� Supplier Diversity



SALES PROCESS

� Sales Representatives will search for allpotential customersProspecting

� Sales Representatives filters out non-profitablecustomers

Qualifying TheProspects

Pre approach

Approach

Sales presentations

Handling the objectives

� THE FINAL DEAL Closing up the Sales

Knowing Detailed information about thecustomers

Building Rapport and excellent personalrelationship

Demonstration of samples and allowingfree sample trial

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



Sales Skill & capability

� Diversity

� Leadership

� Excellentcommunicationsskill

� Hard Working� Dynamic

� Teamwork



Development plan� World class Training : The Avon universal training program provides

consistent training for all Representatives around the world.

� PATD : Prospecting + Appointing + Training + Developing .

� It includes :

1. Informational booklets complete with sales guidance

2. Goals & incentives program3. Personal Checklists

4. Inspiring testimonials of all the product¶s info

� Leverages :

� RVP

� Web enablement Tools

� Cutting edge online training opportunities

� Local Support : District managers, Division Managers and ZoneManagers.



Design of the Sales Department



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LEADERSHIPREPRESENTATIVES

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Sales force management

� Setting targets : Individuals and teams are specifically given sales goals and

increasing the number of new accounts

� Measures : Sales managers measure performance standards of each sales

representatives by looking at whether she could sell the given set of each

product category

� Sales Reviews : Performance will be reviewed every twice a month by our

external auditing firm and with the compliance of respective regional sales

manager

� Recruitment : Your Best Customer Could Be Your Best Recruit !

Career council

Job Fair

Advertisement



Great Motivational Schemes

� Representatives can earn income in two ways: by selling Avonproducts as a traditional Representative, or by selling and alsorecruiting others to do the same.

� Avon's employees benefits is fourfold. We set ourselves high

standards in:

� Sales Representative Success Stories

� Retirement Plan

� Micro Enterprise

Benefits Compensation

Workplaceenvironment

Professionaldevelopment

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