AVON

LETICIA GARCIA
PROJECT 3.2
ENTREPRENEUR 81
MAY 7, 2014
CUSTOMERS PAIN
One of the most problems that customers have when it comes to beauty
products is finding the right product for their skin type.
Finding the right beauty product for you can be challenging and quite a
feat but if youre patient enough then the reward is in the end.

SOLUTION TO THE CUSTOMERS PAIN
When selecting skin and beauty products, its best to pick quality over
quantity.
Keep your skin type, age, coloring and preferences in mind can help you
choose the best skincare and beauty products for you.
When choosing cosmetics its best to try different samples or testers , which
Avon provides samples.
WHAT IS AVON?
Avon is the company for
women, its a leading global
beauty company with $10
billion in annual revenue. Its
one of the worlds largest
direct sellers.
Avon has 6.4 million
representatives and its a
multi-level marketing
company.
Avons product line includes
color cosmetics, skincare,
fragrance, fashion, and
home products featuring
such well recognized brand
names as Avon color, ANEW,
Skin-So-Soft, Advance
Techniques and MARK.
AVONS
PRODUCTS
The chart shows on a
category basis, revenue
growth rates of each
product.
% point
change
U.S. $ Constant $
Beauty (7)% (2)%
Beauty
Category:
Fragrance (4) 2
Color (6) (1)
Skincare (12) (8)
Personal care (7) (3)
Fashion&
Home
(4) 1
Fashion &
Home
Category:
Fashion (7) (4)
Home (3) 9
BUSINESS MODEL
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.
EARNING OPPORTUNITY
Representatives could earn money, not just by selling, but also recruiting
and training others.
This new earnings avenue could exponentially increase the amount of
money her Avon business generated.
Its the reason some Representatives today are running multimillion-dollar
Avon businesses.


PERFORMANCE OF THE PRODUCT
71%
16%
10%
2%
Sales
Beauty
Fashion
Home
Other
ACCESSIBILTY OF PRODUCT
With Avon on the scene, many women no longer had to travel miles on
foot to the closest department store or drugstore to purchase beauty
products.
A visit from the Avon Lady meant the store would come to them.
A customer could shop, chat with her Representative and receive free
beauty advice addressing her specific concerns.
COMPETITVE ANALYSIS
Mary Kay has a huge start up fee ($500) vs. Avon is $10

~Mary Kay products are expensive vs. Avon comparable to store products

~You can set up an Avon website that people long distance can order
from & Avon will deliver it to them as well.